c & l

G O O DS TR ANSPO RTAT I ON G OE S FOR ‘U B E R I F I CAT I ON’ Volume IV n No 4-5

C A R G O

JUNE-JULY 2015 I `60

L O G I S T I C S

INDIA-UK JOIN HANDS FOR PORT OPERATIONS To boost traffic between India and UK and to share expertise on port operations, Peel Ports and Jawaharlal Nehru Port Trust (JNPT) sign historic MoU

AIR CARGO ON A HIGH

While TIACA’s new Chairman Sanjiv Edward is keen to present India as an emerging leader in global logistics, moves by stakeholders to boost air cargo are on

MANAGING EDITOR’s NOTE

WANTED: A STRONG, HELPING HAND

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onflicting reports, some good, others bad keep coming. I meant the reports are all, of course, about cargo and logistics. First, the good. After a long, long period of time, the country has got a chance to be recognised for its expertise in management of cargo – specifically air cargo. Yes, we are talking about Sanjiv Edward, Cargo Head of the Delhi International Airport taking over as Chairman of The International Air Cargo Association. Add to that the fact that air cargo is getting a leg up with low-cost carriers like IndiGo boosting its share and Bengaluru-based Quikjet receiving an infusion of funds to start operations with an Airbus freighter. Perhaps, the fact that the venerable Airports Authority of India (AAI) has decided to be a bit like private sector units by offering discounts to international freighters landing at any of its airports, has raised hopes. The day, we are sure, is not far off when the country will be able to boast of a proper international cargo hub.

There is, however, bad news too. Jet Airways, for example, was all set to start long-haul freighter operations and take advantage of the fallout from the Prime Minister’s ‘Make in India’ campaign but gave it up.

Amidst all this heartening news came from the Paris Air Show where Boeing got a big order for 747-8 cargo jumbo jets. The US-based plane maker signed an agreement with Volga-Dnepr Group to boost its fleet with up to 20 new 7478 freighters. According to Boeing, the deal could be worth as much as $7.4 billion at list prices. Earlier in the show, Boeing had received orders from Taiwan’s EVA Airways for five twin-engine 777 freighters and from Qatar Airways for four cargo planes.

The order brings to the fore two important points: One, air cargo which has been going through a bad patch since the financial crisis and global recession is all set to make a comeback. The International Air Transport Association recently pointed out that “there was a strengthening of the cargo business in 2014 that continued into this year”. A record 54.2 million metric tons of cargo would be shipped by air, it said. IATA was also quick to mention that there would be pricing pressure

and possibly slower growth in global trade that could hamper demand for cargo aircraft.

European Airbus too was not left behind. It said it would work with ST Aerospace to develop a passenger-to-freighter conversion of its A320 and A321 single aisle jets. The programme will take single-aisle jets no longer used for passenger service and convert them into freight planes. In fact, Airbus has forecast a market for 600 such aircraft. The first A321 turned into a freighter is due in 2018, the planemaker said at the Paris Air Show.

While all this, hopefully, signals a boost for the air cargo sector, on ground zero we see a sudden awakening among the regulators for quality and safety. Processed food manufacturers are in the cross hairs of regulators like the Food Safety Standards Authority of India (FSSAI). While the moves are certainly welcome, isn’t it time that the infrastructure is developed to enable not only those in the manufacturing sector but also those in logistics to transport foods, pharma and perishable stuff without a worry.

A recent story in business daily Mint (Global brands stretched by India’s food safety record), could not be more direct: “The country’s tained water, patchy cold storage network and a retail sector made up of tine local grocers present a major risk for international food brands, whose reputation can suffer globally from one local slip.” The story went on to mention Nestle’s Maggi problems and highlighted our poor infrastructure: “Its (Nestle’s) woes have laid bare the risks of operating in a country where it is difficult to build a watertight supply chain, and where state food safety infrastructure is minimal, at best.”

How can we see success with such poverty of infrastructure?

How can we compete with other developed nations?

If air cargo is raising its head in such an environment, it deserves more than just applause. It would do us a world of good to help the sector.

tghosh@newsline.in

Cargo & Logistics I June-July 2015

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

CONTENTS

C&L

VOLUME IV n NO 4-5

Editor-in-Chief

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

COVER STORY

p16

The air cargo sector in India has been showing signs of rapid growth in the past few months. To begin with, TIACA has appointed Sanjiv Edward, Head of Cargo at Delhi Airport as its new Chairman. On the other hand, AAI is planning to hand out incentives to international freighters that land at AAI airports.

FOCUS

p14

To bring back growth to the air cargo sector, airline stakeholders and regulators met at the Annual General Meeting organised by International Air Transport Association (IATA) in Miami. IATA’s Director General and CEO highlighted the fact that air freight growth has lost momentum

SPOTLIGHT

p22

JNPT signed a Letter of Intent (LoI) with Peel Ports to share information and expertise on port operations, port management and hinterland connections. The two ports will also develop a series of modules in education and training of port operators, IT systems, traffic and increase trade between Liverpool and Mumbai.

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ENVIRONMENT

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

Decommissioned massive oil tankers are a sign of worry for many countries.

Scrapping of such ships is a dangerous job. To avoid all this, a group of Dutch designers has proposed a way to reuse them as infrastructure. The project is called Black Gold.

Vice President (Business Development) VINOD KAUL

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For advertising and sales enquiries, please contact:

NEWS IN BRIEF

AISATS gets ISAGO Registration for adhering to safety standards at Bengaluru and Thiruvananthapuram. In the land section, India, Nepal, Bhutan and Bangladesh recently signed a landmark Motor Vehicles Agreement (MVA) for the regulation of Passenger, Personnel and Cargo Vehicular Traffic.

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

A photo of Port of Liverpool which is managed

by Peel Ports.

Photo credit: Peel Ports Cover Design: Nagender Dubey

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June-July 2015 I Cargo & Logistics

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JUST IN TIME

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he International Air Transport Association (IATA) released data for global air freight markets showing a 3.3 per cent increase in cargo volumes (Freight Tonne Kilometres or FTKs) in April 2015 compared to April previous year. While there is growth compared to the same month in 2014, there has been no actual growth in aggregated global cargo volumes since late last year.

At a regional level, only the Asia-Pacific and Middle Eastern airlines reported growth in April. North American carriers reported essentially flat demand, while Europe, Latin America and Africa all reported declines when compared to 2014. April data also revealed a slowdown from the growth for the first quarter of 2015, which averaged 5.3 per cent, in line with a recent weakening in world trade growth. Despite a cyclical pick-up in the global economy, acceleration in trade and air freight demand is unlikely in the near term as business confidence and export orders are flat or declining.

“After a volatile start to 2015, the market is settling down, and it is clear that momentum in air freight growth is being lost.

First there is the structural challenge of world trade no longer expanding at a faster rate than domestic production. Layered on top of that trend we now see a weakening of economic indicators in the crucial air cargo markets of Asia-Pacific and Europe,” said Tony Tyler, IATA’s Director General and CEO. “These factors point toward a need to kick-start trade by reversing protectionist trade measures. Implementing the Bali Trade Facilitation Agreement would be a good start, as well as commitments to help facilitate trade in emerging markets,” said Tyler. WorldACD too, issued its trend report for the air freight market for the month

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PANALPINA

AIR FREIGHT MOMENTUM SLOWS SLOW GROWTH: Recent traffic figures showed no actual growth in air freight market

of April showing an increase in volumes.

Worldwide April figures reinforced the trends seen earlier in the year. Worldwide volume increased by 3.3 per cent Yearover-Year (YoY), slightly lower than the growth in Q1, with the origin Europe (4.1 per cent) and the destination North America (12.6 per cent) as the best performing areas.

“Yields continued to drop: measured in USD, they have now lost almost 11 per cent of their early 2014-values. If we exclude surcharges, however, yields in USD increased by 1.4 per cent YoY during the first four months of 2015,” said the report.

“In line with regular seasonal patterns, worldwide volumes in April were almost 6 per cent lower than in March. The notable exception was the origin Asia Pacific, where volumes remained the same Monthover-Month (MoM). This can be partly explained by the fact that volumes and yields across the Pacific did not yet return to normalcy, as YoY-figures continued to be far better than the worldwide averages. Yields measured in USD fell by 4 per cent worldwide compared to March, but held their own in the origin North America,” said WorldACD in its report.

According to the trend report, the first four months of the year saw a YoY volume growth of almost 4 per cent worldwide. European carriers as a group lost ground in all origin areas except Asia Pacific, where they grew modestly. The representatives from North America did better than average everywhere but in their home market, whilst Asia Pacific carriers (+7 per cent) and their Middle Eastern counterparts (+9 per cent)

continued to outpace their competitors from other parts of the world. The origin Latin America was the only one contracting in volume (-3 per cent). North American carriers showed impressive growth in pharma (+26 per cent), whilst carriers from Africa and the Middle East recorded remarkable growth in perishables (+13 per cent).

“Lastly, one other development in the first four months merits attention. General Sales Agents (GSA) as a group further strengthened their position in air cargo: more than 20 per cent of worldwide revenues were generated through sales under GSA agreements. GSAs showed a higher than average volume growth coupled with less yield loss. In volume growth, GSA-generated sales outperformed other sales in all areas except Africa and Latin America, with the best relative performance seen in Asia Pacific, followed by North America and Middle East & South Asia. The top GSAs in Europe and North America improved by a higher percentage than their competitors,” report said.

Preliminary traffic figures for the month of April released by the Association of Asia Pacific Airlines (AAPA) showed encouraging growth in air cargo markets.

Air cargo markets continued to grow, in spite of April being a seasonally subdued month. In freight tonne kilometre (FTK) terms, demand was 3.7 per cent higher than the same month last year. Offered freight capacity expanded by 4.7 per cent, leading to a slight 0.6 percentage point decline in the average international freight load factor to 63.5 per cent in April.

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JUST IN TIME

New airports for increased air traffic Unisys Corporation, a global information technology company, announced that air cargo industry experts participating in the Unisys Cargo User Group (UCUG) community reported that disruptive innovations driven by cloud computing collaboration, sensor technology, and digital business were radically transforming the way air cargo organisations worked and integrated in the supply-chain. This was creating a fast-growing gap between leaders and laggards. Christopher Shawdon, Vice President, Logistics Solutions for Unisys identified three key trends based on discussions at the recent 61st meeting of the Unisys Cargo User Group held in April: 1) Sensors and integration drive insights and help businesses manage by exception: Sensors embedded throughout logistics supply chains feed data into rules-based analytics engines that provide insights and early warning of issues. Data from sensors on containers carrying sensitive air cargo can automatically send key metrics of environmental conditions throughout the transport lifecycle to a logistics management system so that a full audit trail is available on demand.

2) Cloud-based models speed technology change and enhancements: Cloud-based technology services deliver speed and savings compared to traditional software and Software-as-aService models (SaaS). They offer the benefit of quick implementation and with much lower capital cost.

3) Electronic-supply chains enable more dynamic and optimised business: Dynamic pricing is helping leading carriers maximise use of available capacity. Their systems interface with the systems of their customers and partners as part of a fully integrated supply chain using XML, peer-to-peer apps and web services to reduce cost and better understand their markets.

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NANDU MANJESHWAR

TREND

DEVELOPMENTS: A panoramic view of Chennai International Airport

T

he Indian government has granted, in principle, approval for setting up of 15 Greenfield airports in the country, namely: Mopa in Goa, Navi Mumbai, Shirdi and Sindhudurg in Maharashtra, Bijapur, Gulbarga, Hasan and Shimoga in Karnataka, Kannur and Aranmula in Kerala, Durgapur in West Bengal, Dabra in Madhya Pradesh, Pakyong in Sikkim, Karaikal in Pudducherry and Kushinagar in Uttar Pradesh. Further, Government has also laid down Route Dispersal Guidelines (RDG) with a

view to achieve better regulation of air transport services taking into account the need for air transport services of different regions of the country.

It is, however, up to the airlines to provide air services to specific places depending upon the traffic demand and commercial viability. As such, the airlines are free to operate anywhere in the country subject to compliance of RDG issued by the government.

Presently, airlines are operating to/ from 76 airports in the country including major cities.

24 airports identified for domestic cargo terminals

I

n April, the government said that 24 airports at Tier-II/III (non-metro) cities have been identified where Common User Domestic Cargo Terminal (CUDCT) is proposed to be established by carrying out cargo feasibility study and minor modifications in the old/redundant passenger terminal buildings.

Keeping in view the requirements, time to time cargo feasi-

bility is conducted based on which basic infrastructure is provided.

Moreover, Airports Authority of India (AAI) has decided to utilise old/redundant passenger buildings with minor modifications such as civil/electrical works or by creating a new facility for International cargo operations. AAI has already established Common User Domestic Air Cargo Terminals at Coimbatore, Jaipur and Lucknow airports.

NUMBERS

`64.99

19

LAKH SMUGGLED CIGARETTES SEIZED

`64.99 lakh smuggled cigarettes were seized at Sardar Vallabhbhai Patel International Airport, Ahmedabad by the Directorate of Revenue Intelligence (DRI). Three persons linked to a city-based courier company were also booked in the smuggling case. This was one of the biggest seizures of smuggled cigarettes at the courier terminal of the city airport in the recent past, said a statement issued by DRI adding that the cigarette stocks had arrived from Dubai.

“Based on a specific intelligence roport regarding cigarette smuggling taking place at the air cargo complex at Ahmedabad (airport), the officers of DRI intercepted and detained certain imported consignments

PER CENT RISE IN PROFIT FOR CONCOR

received in the name of ‘Rainbow Courier and Cargo Pvt Ltd’,” the statement said adding that a total of 50 consignments containing 9,99,940 cigarette sticks of foreign origin imported from Dubai and attempted to be smuggled through the courier terminal were seized under provisions of the Customs Act. The money for purchase of such smuggled cigarettes had been sent to Dubai through hawala (illegally transmitted payments) channel, the statement said.

`1 LAKH CR PLAN FOR PORTS Ministry of Shipping is planning to raise `1 lakh crore to develop ports, build ships and improve inland waterways. The amount would be raised in dollar equivalent at an interest of three per cent.

Nitin Gadkari, Minister of Shipping, said, “The loan will be raised by state-run Shipping Corporation of India, Mumbai Port Trust and Jawaharlal Nehru Port Trust (which has annual revenue of `5,000 crore in dollar equivalent). If the loan was raised in India, the interest rate would be 12-13 per

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RAILWAY PROJECTS IN TAMIL NADU

June-July 2015 I Cargo & Logistics

cent.” Also, State-run Ports and Shipping companies can raise loans in dollar up to `1-lakh crore, without hedging them. Gadkari also said his Ministry was planning to set up the Ports Infrastructure Development Finance Corporation to fund ports and shipping infrastructure in dollars. The Ministry has already taken decisions to develop six ports, including `12,000 crore deep-water Sagar port in West Bengal, Colachel in Tamil Nadu, `6,000 crore Wadhavan port in Maharashtra, and `1,200 crore Haldia dock 2.

To improve rail connectivity in Tamil Nadu, Southern Railways has recommended four new projects to the Tamil Nadu government. The projects will cost `6,770 crore in Public Private Partnership (PPP) mode. The projects are aimed at improving rail connectivity in the suburbs of Chennai with new lines and enhancing carrying capacity in South Tamil Nadu. The Railway authorities have suggested two new lines in Chennai’s suburbs – a 180 kilometer (km) link between Chennai and Cuddalore via

The fourth quarter ended with smiles for Container Corporation of India (CONCOR) as the company registered almost 19 per cent growth in its net profit against the same period last fiscal, touching `292.71 crore. This is despite a sharp increase in depreciation during the quarter to `81.02 crore, against `49.95 crore.

“We controlled our expenses and also managed running of trains to lower empty running of trains,” said Anil Kumar Gupta, CMD, CONCOR.

`3,311

CR FOR ROADS IN KERALA Kerala’s road will soon be repaired as the Public Works Department (PWD) has announced a road-and-bridge building project at an estimated cost of `3,311 crore in the next two years. The work includes repairing of state’s public roads, including interior ones. The PWD had earlier launched a ‘100 bridges within 400 days’ project in which 17 were commissioned. PWD Minister V K Ebrahim Kunju said that the work under the new schemes, including two flyovers in Kochi, would begin in six months.

Mahabalipuram and Pondicherry at an estimated cost of `1,950 crore; and a 60-km link between Guduvancheri, Sriperumbudur and Avadi at an estimated cost of `720 crore.

They have also suggested that the Madurai-Kanyakumari link could be doubled at a cost of `2,600 crore for the 256km stretch. Another project envisages a new line linking Madurai, Aruppukottai and Tuticorin which will be 140 km line with an estimated cost of `1,500 crore.

NUMBERS

64 PER CENT STAKE OF GMR IN DIAL GMR Infrastructure Ltd, through its subsidiary, GMR Airport Ltd (GAL), has acquired an additional 10 per cent stake in Delhi International Airport Pvt Ltd (DIAL) from Malaysia Airports Holdings Berhad (MAHB) for $79 million. As per the agreement, GAL will acquire 245 million shares representing 10 per cent stake in DIAL. With this, its holding will increase to 64 per cent stake in the company. Malaysia Airports Holdings Berhad had invested $40 million between 2006 and 2008 to buy 10 per cent stake in DIAL. DIAL is a special purpose vehicle formed to carry out development, operation and management of Indira Gandhi International Airport, Delhi. GMR Group has three assets under its aviation business: DIAL, GMR Hyderabad International Airport Ltd (GHIAL) and GMR Mactan Cebu International Airport (MCIA).

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LARGE CONTAINER VESSELS ORDERED

BY MAERSK LINE

Maersk Line recently signed a new building contract with Daewoo Shipbuilding & Marine Engineering (DSME) for 11 second generation Triple-E container vessels with a capacity of 19,630 TEU (twenty-foot equivalent) each. The vessels will have a length of approximately 400 meters (m), width of 58.6m, and a 16.5m draft. The contract has a value of USD 1.8 billion. This is the second new-building order in Maersk Line’s investment programme, following the seven 3,600 TEU feeder vessels announced earlier this year. Over the coming five years, Maersk Line is planning to invest USD 15 billion in new-buildings, retrofitting, containers and other equipment. Maersk Line will thus be able to maintain the necessary capacity to grow with global demand as well as replace less efficient tonnage. The new vessels will be the largest in Maersk Line’s fleet and are intended for the Asia - Europe service.

€57

MILLION INVESTED BY DB SCHENKER Opening the “terminal of the future” near Helsinki, Finland DB Schenker has made one of its largest investments worth €57 million. The facility will be home to 650 employees, in the Viinikkala logistics area where almost all the major transport companies in Finland are operating.

“Combining four locations and operations such as land transport, air, and sea freight in one building will improve our efficiency and productivity and streamline our cargo flows between the different transport modes,” said Dr Karl-Friedrich Rausch, CEO and Chairman of the Board of Management, Schenker AG. The new premises will house 650 employees in the Viinikkala logistics area within 51,000 square meters. The ware-

house will offer 31,940 square meters of storage, including 28,630 square meters of heated buildings and an unheated hall of 3,310 square meters. The terminal also has one of DB Schenker’s biggest sorters - 35,000 to 40,000 deliveries will be processed per day. Part of the DB Group’s 2020 strategy, Environmental Protection was central to the planning of the new facility. The terminals were built according to Transported Asset Protection Association (TAPA) requirements and they follow the standards of BREEAM (Building Research Establishment Environmental Assessment Method) at both Good and Very Good levels.

$3.5 MILLION FUNDING FOR JAL MARG VIKAS World Bank has funded USD 3.5 million for the Jal Marg Vikas (National Waterway-1) project, which envisages developing a 1,620 kilometer (km) fairway between Allahabad and Haldia.

“The Jal Marg Vikas Project on River Ganga has now taken off with the World Bank extending a project preparation fund (PPF) of $3.5 million... as advance, which is part of its financial assistance for the

project,” Inland Waterways Authority of India (IWAI) has said. Finance Minister Arun Jaitley in the budget had announced a project on Ganga called ‘Jal Marg Vikas’ (National Waterway-1) to be developed between Allahabad and Haldia covering a distance of 1,620 kms at an estimated cost of `4,200 crore, to be completed in six years.

The project would enable commercial navigation of 2,000 tonne vessels.

Cargo & Logistics I June-July 2015

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EVENT

India Warehousing Show 2015

CLOSE COOPERATION: Participants from the transport and logistics industry during the inauguration of India Warehousing Show 2014

Opening windows for the logistics sector

The fifth edition of the prestigious show promises to

T

he India Warehousing Show that will take place in the beginning of July 2015, is the fifth edition of what has been promoted as the international meeting place for warehousing, logistics and supply chain. A well-established exhibition for professionals from the logistics and supply chain sector, the show is an ideal destination for businesses targeting the growing markets of India and south Asia.

Annually, IWS welcomes more than 200 exhibitors from 25+ countries representing the supply chain holistically. Reed Manch Exhibitions run VIP Buyer and Business Matchmaking programmes to ensure maximum exposure and value to international participants. Since 2011 when it first started, the India Warehousing Show has grown to become South Asia’s leading trade fair where 93 per cent of exhibitors have expressed satisfaction with the event and 88 per cent of visitors have agreed that the ‘India Warehousing Show is a must attend event’.

The organiser of the show, Reed Manch Exhibitions, India is a joint venture between Manch Communications, India and Reed Exhibitions, UK. Reed Manch is currently one of the most prominent organisers in the country and is responsible for bringing Reed events to the booming Indian market in addition to launching shows on new subjects.

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June-July 2015 I Cargo & Logistics

The Reed Exhibitions Transport & Logistics portfolio consists of 19 trade events taking place in some of the most important and dynamic logistics markets in the world: Brazil, France, Indonesia, India and USA. Working closely with professional bodies, trade associations and government departments, Reed Exhibitions Transport & Logistics portfolio ensures that each event is targeted and relevant to the transport and logistics industry’s needs. As a result many of Reed Exhibitions transport and logistics events are leaders in their markets.

The fourth India Warehousing Show highlighted the logistics industry by bringing complete supply chain solutions on one platform in New Delhi. The exhibition featured 210 exhibitors, 380 live technologies from 25 countries and was attended by 7,818 trade visitors representing 220 cities globally. The show was appreciated for the opportunities it provided for business matchmaking as well as a learning platform for the industry.

Displaying the complete range of solutions including warehousing infrastructure, material handling equipment, automation solutions, storage solutions, logistics and supply chain, IWS 2014 gave its attendees the benefit of choosing, exploring and experiencing products live and functional. Also, it allowed them to interact face to face with the manufacturers, suppliers and dealers.

The show also featured the US pavilion,

IWS

not only showcase the best available in the world of logistics and supply chain but also provide the opportunity to bring together logistics and the user industry to discuss challenges of the future

Supply Chain Zone, Automation4Logistics, Packaging4Logistics and international pavilion. A free-to-attend Social Media Workshop was also conducted for the very first time at the Spiritz Café, hosted by Indo Arya Logistics, the VIP partner of the event.

Brands from across globe chose IWS 2014 to showcase their latest innovations and manufacturing solutions. With visitors thronging the venue even after closing hours, the show established itself as a destination to access the latest cost-optimising solutions. Commenting about the last show, Anuj Mathur, Managing Director of Reed Manch Exhibitions said, “The show had been designed in such a manner that it helped one in procurement of complete intralogistics solutions for the warehouse, manufacturing unit or the distribution centre”.

Inaugurating the show, Dinesh Rai, Chairman of Warehousing Development and Regulatory Authority said that the India Warehousing Show was an important

EVENT

event for the logistics industry and has been crucial in bringing industry together. Such events play the role of growth catalysts, he mentioned. Among the dignitaries who were at the inaugural ceremony were B B Patnaik, Managing Director of Central Warehousing Corporation; K U Thankachen, Managing Director of Central Rail Warehousing Corporation; George Prest, CEO of MHI Association, USA; Rajesh Goyal, Senior Vice President of Federation of Cold Storage Association of India (FCAOI); Tyrena Holley, Commercial Officer of US Commercial Services and Ramesh Agarwal, Vice President of All India Transporters Welfare Association.

The key sponsors and supporters included Foundation Partner – IndoSpace Logistics & Industrial Parks; Platinum Partner – Bridge Solutions Group; VIP Partner – Indo Arya Logistics; Gold Partner – Central Rail Warehousing Corporation; Silver Partners – Gandhi Automations and

Siddhartha Logistics; Official Supply Chain Partner – Safexpress; Delegate Kit Partners – Fresh Food Technology and VQM Packaging; Knowledge Partner – Knight Frank.

The show was certified by US Commercial Service and garnered the support of National Small Industries Corporation (NSIC) along with United Kingdom Warehousing Association (UKWA); Crane Owners Associations of India; Indian Private Ports & Terminals Association; Supply Chain Logistics Group (UAE); International Supply Chain Education Alliance and Supply Chain Asia.

One of the important facets of the show was the matchmaking and learning platform for the industry. Offering attendees a complete knowledge-cum-technology experience was the concurrent India Warehousing Conference which brought together end-users of logistics services and solutions from all walks of life. The conference was based on the theme ‘Logisticate your business: Better planning is a key to prof-

itability’ and provided business matchmaking and learning opportunities. Convened

by Girish V S, Executive Director, Institute of Supply Chain Management (ISCM), Mumbai, the conference included topics on the growing e-commerce business in the country and its impact on supply chain industry, discovering the value of reverse logistics, packaging solutions for logistics to mitigate inventory damage and enable safe movement, procurement and strategic sourcing in the supply chain, exploring the new ‘cyber’ tools to reach out to the target customer base, automating the handling facility, international trade and development of Free Trade Warehousing Zones (FTWz) in India and sustainable engineered warehousing and more. Attended by 241 decision makers from distinguished industries, the learning and networking conference saw an emphasis on establishing businesses which are adaptable and flexible to meet changing market needs.

Cargo & Logistics I June-July 2015

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SOPTLIGHT

Kick-start trade: IATA

BIDDING GOOD-BYE: Outgoing Board of Governors of IATA posing for the shutterbugs at the recently concluded IATA AGM at Miami, US. Also seen in the picture:

D

ata from the International Air Transport Association (IATA) for global air freight markets noted a 3.3 per cent increase in cargo volumes (freight tonne kilometres or FTKs) for April 2015 compared to the corresponding period last year. IATA also pointed out that there had been no actual growth in aggregated global cargo volumes since late last year. In addition, there was capacity increase of 5.5 per cent in April, driving the load factor down to its lowest for the past 12 months. Though there has been a movement in the global economy, the growth in trade and air freight demand seems unlikely in the near term as business confidence and export orders have been flat or declining. It is no wonder that Tony Tyler, IATA’s Director General and CEO, said: “After a volatile start to 2015, the market is settling down, and it is clear that momentum in air freight growth is being lost.”

He went on to mention that there was “the structural challenge of world trade no longer expanding at a faster rate than domestic production. Layered on top of that trend we now see a weakening of economic indicators in the crucial air cargo markets of Asia-Pacific and Europe… These factors point toward a need to kick-start trade

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June-July 2015 I Cargo & Logistics

by reversing protectionist trade measures.

Implementing the Bali Trade Facilitation Agreement would be a good start, as well as commitments to help facilitate trade in emerging markets.”

Tyler also said that “after a brief optimistic period, the global outlook for cargo shows that once again the business is stagnating. But the good news is that with digital processes, new standards for pharmaceutical handling, and a focus on reducing end-to-end shipment times the air cargo industry is well-placed to stage a recovery”.

At the recent IATA Annual General Meeting curtain raiser press conference, Tyler highlighted the fact that aviation was important for the world’s economy. He said that IATA represented “some 260 airlines from around the world. Together they carry about 83 per cent of global air traffic. Our Association was formed in April 1945 by a group of 57 airlines that met in Havana, Cuba. Their vision was to strengthen the foundations of post-War commercial aviation”.

The goals of IATA were clear, he emphasized: “IATA was to benefit the peoples of the world and foster commerce by promoting safe, efficient and economical air transport. To this end, IATA would be a

forum for collaboration, a vehicle for partnership, and a global standards-setter.” He then went on to point out that the “fragility of the industry’s profitability might come as a surprise. In December (2014) we forecast that airlines would make a $25 billion profit this year on revenues well-exceeding $700 billion. With returns at that level we are not covering our cost of capital”.

“Air transport is very closely linked to world developments. If currencies fluctuate we are impacted. The strengthening of the US dollar is a good example. Security or public jitters can easily cause changes in travel patterns. Weak economies can impact trade flows and passenger numbers —both business and leisure travelers. Even the weather has an impact,” he said and pointed out that IATA kept track of these developments “in order to give our stakeholders a clear picture of how the industry is doing.

And particularly with governments, we try to show them the impact of their decisions on how the industry is performing. Protectionist measures can slow trade. Higher taxes can dampen demand. Decisions on infrastructure can either facilitate or limit growth”.

All of this, he underlined, was important because “air transport has a huge impact

SPOTLIGHT

The recent Annual General Meeting of the International Air Transport Association at Miami saw airline stakeholders and regulators discussing cargo strategies to bring back growth to the sector. Taking the lead was Tony Tyler, IATA’s Director General and CEO. He made an impassioned plea to governments to reverse protectionist trade measures. (seated) fourth from left Jet Airways’ Chairman Naresh Goyal and sixth from left, IATA’s DG and CEO, Tony Tyler

on the economy — employing millions of people and generating hundreds of billions of dollars in economic activity. On a global scale the industry directly employs 2.3 million with a further 56 million in the value chain. And there are many more jobs created in the development and manufacture of the $6 trillion of goods delivered by air cargo”.

Pointing to the air cargo sector, Tyler said that “cargo showed growth slowing to 3.3 per cent in April over the previous year.

Cargo has been in the doldrums for some time. We were optimistic that it might be at the start of a more robust growth trend.

But in recent months there has been little growth. A key element behind that performance is slower growth in China. And the broad implication is that trade growth is slowing. That should be sending some warning bells to governments who are pursuing protectionist policies”.

He went on to highlight that IATA was an “association of competitors — with different business models and diverse ownership structures — in an industry in which it is tough to turn a profit”. Delivering the Director General’s Report on IATA, Tyler went on to say, “Outside of IATA, you compete vigorously to please your customers

with great products and prices; to employ winning teams that can manage the business and deliver quality service; and to keep the confidence of investors by generating adequate returns”.

IATA, he said was “the common ground on which the airline industry gathers together to move forward in areas where there is mutual interest. Formally, the mission of IATA is to represent, lead and serve the airline industry. Practically, that means IATA’s job is to help you to be successful businesses. Global standards and best practices are at the core of what we do together”.

Speaking to the IATA members, Tyler said that at the global level, “we are the representative body of the airline industry.

We must continue to earn your confidence by constantly enhancing the value of IATA membership and promoting that value to potential members”.

He said that IATA was “happy to lead the charge on industry challenges…That is our role. Just as important to the success of many of our initiatives, is the time, effort and work that you, the members of IATA, dedicate… Whether it is achieving the 35 per cent Fast Travel target that you have set or meeting your expectation of 45 per cent e-air waybill coverage by the end of the

year, IATA is working hard to deliver the results you need by doing whatever it takes — developing standards, aligning partners, lobbying governments and so on. But there is no substitute for the heavy lifting from our members when driving important industry programmes. Our goal is to make it as easy as possible for you. He went on to illustrate the concept in two areas where IATA was enhancing its capabilities. “The first is the area of cyber security. As an industry we face a rapidly evolving threat.

At this moment, it is difficult to foresee a durable solution other than the constant vigilance of all industry partners working in cooperation with governments. For the industry at large, the Operations Committee through the Security Group has provided the support needed to launch a Cyber Security toolkit which is helping to spread best practices across the industry…”

The second, he said, concerned IATA’s advocacy efforts. “Whether it is educating governments on the benefits of aviation, encouraging better infrastructure development or campaigning for smarter regulation, the voice of your Association stands a better chance of being heard if it is amplified and repeated through your own channels as well,” he said.

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COVER STORY

Over the last few months, air cargo in the country has provided the much-needed glimmer of hope that the sector desperately needs. On the international front, the country received an opportunity to present itself as an emerging leader in the global logistics arena, when The International Air Cargo Association (TIACA) chose air cargo veteran and Delhi International Airport’s Cargo Head Sanjiv Edward as its Chairman. On the ground, Airports Authority of India (AAI) has chalked out detailed plans to boost its revenues by offering incentives to international freighters bringing in cargo, domestic carrier IndiGo’s cargo division has decided to increase its share in cargo. Are the good times coming…?

‘My desire is to present India as an emerging leader in the global logistics arena’ Sanjiv Edward, the new Chairman of TIACA, believes the time has come for India to shine in the air cargo sector.

In a one-on-one with TIRTHANKAR GHOSH, soon after assuming office, Edward outlined his plans for the association

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anjiv Edward, Head of Cargo Business, Delhi International Airport, is one of those executives who give the impression of being calm – all the time. When this correspondent met him at the Import Cargo Complex at Delhi Airport, there were people rushing out from their chambers on the first floor. Delhi had just felt the tremors of an earthquake – this was one of the aftershocks of the big one in Nepal – and there was an atmosphere of panic. But there was a cool and collected Sanjiv Edward coming out of a meeting.

Yes, he had felt the tremors and what was the point of hanging around in the corridors. Let’s start talking and if the need arises, we will run out of the building, he said.

The cool Sanjiv Edward is a bundle of energy. His initiatives at Delhi airport has seen cargo volumes going up over the years. His pro-active approach will come in handy at TIACA. Welcome Sanjiv Edward, Chairman, TIACA…

H C TIWARI

GIVEN YOUR EXISTING COMMITMENTS AT DIAL, WHAT ENCOURAGED YOU TO TAKE ON THE WORKLOAD IN THE ASSOCIATION? I am delighted to take up this position since it provides me the opportunity to work with an excellent Board and a very committed TIACA team, to serve the industry. TIACA is a global organisation,

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COVER STORY

with a membership base that truly reflects the entire air cargo supply chain. I was driven by my passion for this industry and (I want to) see it taking its rightful position as the fastest mode of commercial transport. TIACA provides an excellent platform for all stakeholders to work together in synchronising the operations and removing the inefficiencies. The air cargo community globally needs to be more engaged to be able to drive the change and pass on the benefit to customers. Another driving force behind this decision has also been the desire to present India as an emerging leader in the global logistics arena.

WHAT DO YOU HOPE TO BRING TO TIACA IN YOUR ROLE AS CHAIRMAN? In my role as TIACA Chairman, I want to build a strong and engaged membership base. We need to be actively practicing and promoting our three pillars of Networking, Knowledge and Advocacy. We have excellent industry events, namely the Annual Executive Summit and the biennial Air Cargo Forum — the next Air Cargo Forum in October 2016 in Paris will provide a huge platform for industry to converge and transact business and I will be focusing on a successful delivery of the same. We have recently launched the very successful course “Air Cargo Professional Development Programme” for Cargo Professionals which has been well accepted by industry and I would like to further strengthen our education programme. On Advocacy, we will continue to take up issues of global significance as well as issues of significant impact in major regional markets.

WHAT DO YOU SEE AS THE BIGGEST CHALLENGES FACING THE INDUSTRY TODAY? The biggest challenges are lack of standardisation of procedures across stakeholders and countries. Secondly, the resistance to change…we need to be embracing technology and related initiatives with open arms, to maintain the competitive edge of air freight. IT can play a major part as an enabler for efficient Air

Cargo Transportation and reduction in the processing time on ground. We need to utilize the available technology and initiatives e.g. E-AWB, E-Freight etc. to our advantage. Thirdly, ensuring safe and secure transportation is also an area that requires due focus and importance and we need to be playing our part.

HOW CAN OTHER MEMBERS SUPPORT THE ACTIVITIES OF TIACA? TIACA has three pillars: Networking, Knowledge and Advocacy. The members can definitely support by promoting each of these and proactively engaging by contributing ideas, efforts and resources.

We have a very active way of engaging and ensuring members’ participation by working through specific subject-related committees and members are welcome to join committees like Industry Affairs, Event & Business Development, Education & Research, etc. We would request members to highlight issues that can bring improvements in industry that impact areas of simplification of procedures, safety and security, usage of technology and market access, etc.

HOW DO YOU BELIEVE INDUSTRY REGULATORS VIEW TIACA AND ARE THEY NOW MORE WILLING TO CONSULT WITH THE ASSOCIATION OR LISTEN TO ITS VIEWS? We have always enjoyed a close working relationship with the regulators by becoming a bridge for the industry and actively engaging in providing inputs for policy design and execution. In our ACF last year at Seoul we had senior representation from WCO, ICAO and TSA in DO YOU BELIEVE INDUSTRY LEADERS addition to many others, engaging with HAVE A RESPONSIBILITY TO PUT industry through TIACA. We are SOMETHING BACK INTO THE very appreciative of their INDUSTRY, USING THEIR recognition of TIACA My priorities KNOWLEDGE, EXPERas an unique industry will be to increase TISE AND CONTACTS? association representthe global reach of Industry leaders have ing the voice of the TIACA, to ensure we a responsibility for entire cargo supply have a strong and ensuring the health chain. engaged memberand growth of the inship, while taking dustry. This can only WHAT DOES DIAL up issues that bring be achieved when they AND INDIA GET FROM value to the are willing to contribute YOUR POSITION IN industry their knowledge, experience TIACA? and strength of the strong netDIAL has always been a leader works. We owe our success to the industry in its field and has recently been awarded and we need to play our part in ensuring as the No 1 Airport in the world by ACI growth and sustainability of the industry. in its category. DIAL has also taken the One of the key areas we need to focus is lead in promoting the air cargo industry on developing the next line of leadership. in India by investing in state-of-the-art Developing and retaining talent should be infrastructure, benchmarking perfora major area of focus for industry leaders. mance to global standards and becoming the first airport in India to be certified by WHAT ARE YOUR AIMS FOR TIACA OVER IATA as e-freight compliant. My appointTHE NEXT COUPLE OF YEARS? ment to this prestigious position has once My priorities will be to increase the globagain reaffirmed DIAL’s commitment to al reach of TIACA, to ensure we have a contribute to the industry by taking leadstrong and engaged membership, while ership roles. taking up issues that bring value to the India will definitely benefit from acindustry and the membership. We should cess to global knowledge, sharing of best become a strong voice for advocacy, repractices and providing an opportunity flecting the true nature of the memberfor local industry to network with their ship base. global counterparts.

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COVER STORY

The tonnage wars

In its efforts to boost its revenues, Airports Authority of India (AAI) has joined the battle for more cargo. AAI-operated airports have started offering incentives to international freighters bringing in cargo, reports Tirthankar Ghosh

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reparations are on for a battle royale and this time it is for air cargo. The warring sides have readied their strategies and it won’t be long before skirmishes break out.

Holding the fort on one side is the privately-held Bengaluru International Airport (BIAL), now known as the Kempegowda International Airport, Bengaluru while on the other is the government-controlled Airports Authority of India (AAI) that operates the Chennai International Airport.

It all started when it was reported that BIAL had decided to reduce landing charges to freighters. The move was apparently aimed to woo international freighter operators to start operations to the airport in southern India. The move, obviously, affected Chennai airport: in fact, a number of forwarders have stopped using the airport and diverted shipments to Bengaluru.

This correspondent talked to BIAL to find out about the rebates offered to cargo

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carriers by the airport. Were such rebates offered to all cargo carriers or only those planning to start services — therefore new entrants to Bengaluru?

The BIAL spokesperson pointed out that there were “no special rebates offered to cargo carriers operating at the Kempegowda International Airport, Bengaluru (KIAB)”. The spokesperson also said that “with the introduction of the innovative AERA (Airports Economic Regulatory Authority, an independent regulator that determines tariffs charged by all major airports in the country) approved Variable Tariff Plan (VTP) from July last year, any scheduled international cargo airline that operates a ‘new route’ is eligible for lower tariffs”. The airport management has implemented this “with an intent to create a mechanism that was transparent and one that would be both attractive and benefit any potential new cargo carrier”.

For the record, Bengaluru handles

around 86 freighter ATMs (air traffic movement) per week and the cargo volumes show that. Cargo tonnage handled for FY 2014-15 at the airport totaled: 279532 MT. Of this 73213 MT was for imports while 92253 MT was for exports. Domestic tonnages were: Inbound 58345 MT and Outbound 55721 MT. In fact, fiscal year 2014-15 witnessed 15.9 per cent growth in cargo: there was 25.3 per cent growth in domestic and 10 per cent growth in international cargo.

Though no figures were available on how much cargo meant for Chennai had been diverted to Bengaluru, it is apparent that a considerable volume does. In fact, this correspondent, a couple of years ago, had been informed that Bengaluru airport was keen to get cargo from Chennai and the surrounding areas by road. The initiative is still on. As the BIAL spokesperson mentioned: “This is an ongoing priority and objective for KIAB. While work in this area has already begun, the cargo business fun-

COVER STORY

damentally works to ensure every effort is made to ship consignments by road or otherwise on the shortest possible route in an expeditious manner. This is a business process and will take some time to establish.

To that extent, KIAB along with its cargo concessionaires and the entire cargo value chain locally, in Chennai and the hinter-

er flights by an airline, the larger the percentage of discounts. The icing on the cake from AAI is that the discounts were being offered with retrospective effect from January this year. So, a freighter operator could ask for refunds.

The move by AAI would help to enhance its non-core revenue. AAI Chairman

the airport’s robust plan and strategic intent to grow the cargo business. To make it happen, the airport has invested in developing a world-class cargo infrastructure with stateof-the-art cargo terminals. In 2013, the airside Air Cargo capacity was enhanced with the opening of seven wide-body dedicated freighter aircraft bays with seamless access

R K Srivastava recently said that many initiatives were in the pipeline “to increase our revenue: our target is to increase our non-aero revenue”. Cargo, for example, brings AAI around $32 mn per year. Once the graded discount scheme is implemented, the figure is expected to rise with more freighter carriers landing at Chennai and Kolkata. However, the kind of facilities offered by KIAB could tilt the scales in its favour. The Greenfield Bengaluru airport is in the seventh year of operations and “cargo has become a critical component in the regional supply chain”, the spokesperson said, “across pharmaceuticals, perishables, electronics, machinery, automotive, textiles”. To top it all, another developing business trend that has been critical to cargo growth from the region is the e-commerce business (Amazon headquarters are in Bengaluru), leather and pharma shipments in particular. KIAB has seen growth in cargo. Underlying this growth is

to the cargo terminal.

Most recently, in a pioneering initiative to improve efficiency and accuracy, reduce turnaround times and paper usage, KIAB became the first airport in the country to successfully achieve the IATA e-freight “Proof of concept” and to operationalize at the cargo terminals completely.

KIAB’s cargo partners Menzies Aviation Bobba Bangalore and AISATS move together to make the airport a pharmaceutical, biotechnology and perishable hub of the region. Last year, for example, Menzies Aviation Bobba Bangalore, inaugurated a world-class pharma cold zone, allowing efficient movement of temperature-sensitive goods. Additionally, AISATS will soon open its Perishable Handling Centre that is being built for the efficient handling of perishable products by creating sufficient storage capacity, minimising wastage and reducing operational costs through innovative solutions.

FUTURISTIC: An artistic impression of forthcoming Air India SATS perishable center at Bengaluru airport

“Many initiatives were in the pipeline to increase our AAI's revenue: our target is to increase our non-aero revenue.”

R K Srivastava Chairman, AAI land areas continue to explore ways of how to move cargo consignments to Bengaluru where and whenever possible”.

Unfazed by the challenge from the GVK-controlled KIAB, AAI has woken up and has plans to hit back by offering incentives in landing charges to freighters at two of the major international airports it controls, Chennai and Kolkata. To counter the reduction in charges offered by KIAB, AAI has decided to have a graded structure of discounts: higher the number of freight-

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COVER STORY

CarGo on a high VASUKI PRASAD

IndiGo recently took a novel decision to reduce the weight of its A320s by around 700 kg that would be used for cargo. A report

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he Rahul Bhatia-led IndiGo is often compared to the tortoise that won the race. IndiGo is steadfast in its approach and does not make a song and dance about it.

As of February 2015, in addition to being India’s largest low fare carrier, it is the fastest growing low cost carrier in the world.

With a market share of 37.1 per cent of the Indian skies, IndiGo is also the country’s largest airline. Offering 623 daily flights connecting 38 destinations, the carrier has a fleet of 94 Airbus A320s (it ordered 250 A320s at a list price of $25bn in October last year). Though stakeholders have been aware of IndiGo’s air cargo prowess, the carrier has not made waves about it. So strong is desire to keep cargo hidden — IndiGo wants to be known and recognised only as a LCC — that Sanjay Kumar, the carrier’s Chief Commercial Officer when asked why IndiGo’s cargo services had been so low-key, answered like a veteran politician, “No comments”.

Kumar and his boss — IndiGo President Aditya Ghosh — are well aware of how important cargo is. In a novel move, the carrier decided some time ago to reduce the weight of its seats on its A320s: 70 of the 100 planes — the 100th plane will join the IndiGo fleet at the end of this year — were fitted out with the Sicma Dragonfly from the French Zodiac Aerospace.

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These seats weigh 7.5 Sanjay Kumar kg and are four kg lighter than the Weber 5600 seats. In this single innovative move, the carrier lessened the operating empty weight (OEW) of the aircraft by 700 kg. As a result, while it will be bringing down fuel costs by around $6.50 mn, it will utilise the 700 kg for its CarGo division.

The carrier’s cargo division has been in existence since March 2007. It could have started cargo services earlier but as the then President and CEO Bruce Ashby (now CEO of the oneworld alliance) had mentioned to this correspondent towards the end of 2006 that accommodating cargo needed some sorting out some turnaround issues. Since passengers were the airline’s first priority, they could not be delayed by cargo which required loading and unloading — factors that could play havoc with the on-time performance (that initial aim of sticking to schedules has given IndiGo the reputation of being one of the best in the country: the carrier’s Technical Dispatch Reliability is 99.91 per cent making it the airline with the least number of cancellations) and as Sanjay Kumar pointed out, “Our cargo business has been consistently growing in line with our fleet and network growth.” He also mentioned that the carrier offered cargo services in most of its domestic and international destinations”.

The cargo services are available at 28 domestic and five international destinations on its network. Though Kumar did not give out any figures, industry pundits say that around 12,000 tons are moved around as belly cargo per month by the carrier.

Said Sanjay Kumar: “We do carry e-commerce shipments of companies like Amazon, Jabong, Delhivery.com, Flipkart and Snapdeal...” And he was quick to add that “tonnages from this sector are constantly rising”. More important for IndiGo is the fact that it can help in taking shipments to the virtual “last mile”, thanks largely to its extended network.

Other than e-commerce, CarGo has a whole list of special cargo products, as Sanjay Kumar pointed out. The 6E Priority, for example, offers late cut-off timings for acceptance and early deliveries along with confirmed upliftment. There are others, too: • Bonded Cargo: Offline selling for International sectors.

• Interline Cargo: Other airlines’ cargo carried under Customs supervision.

• Heavy Cargo (HEA): Catering to industrial shipments, etc.; and • Dry Ice shipment: Temperature-sensitive shipments.

With IndiGo’s air cargo business growing, the carrier is keen to tap in to emerging opportunities. “We continuously monitor and look for the opportunities that may exist for increased business,” commented Kumar. However, it has no plans to start dedicated freighter services: an arena that continues to remain open. There were a number of start-ups including an ambitious one by the country’s low-cost pioneer, Capt G R Gopinath, but all failed.

The prospects notwithstanding, Kumar said, “We currently have no plans for domestic freighter services.”

The situation could change when IndiGo goes for an initial public offer (IPO) of at least $400 million in a couple of months from now. In fact, InterGlobe Aviation, the company that manages IndiGo has started restructuring its shareholding to enable Rakesh Gangwal, one of InterGlobe’s promoters to change his status to that of a non-resident Indian shareholder, according to reports. Once that happens, the company can get foreign direct investment.

SPOTLIGHT

Historic India-UK port partnership

PEEL PORT

HISTORIC PARTNERSHIP: (From L to R) Neeraj Bansal, Chairman, JNPT with Mark Whitworth, Chief Executive Officer, Peel Ports, at the signing of the Letter of Intent (LoI) between JNPT and The Peel Ports Group

To boost traffic between India and UK and to share expertise on port operations, Peel Ports and Jawaharlal Nehru Port Trust (JNPT) have joined hands

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t an event presided by Nitin Gadkari, Union Minister of Road Transport, Highways and Shipping in the presence of Anil Desai, Member of Rajya Sabha in Mumbai, Jawaharlal Nehru Port Trust (JNPT) signed a Letter of Intent (LoI) with major UK ports operator, Peel Ports, also the owner of the Port of Liverpool. The LoI, the first such association between ports in the two countries, was signed by Neeraj

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Bansal, Chairman, JNPT with Mark Whitworth, Chief Executive, Peel Ports.

Under the LoI, JNPT and Peel Ports have agreed to foster the exchange of information and expertise on port operations, port management and hinterland connections. They will also develop a series of modules in education and training of port operators, IT systems, traffic and trade between Liverpool and Mumbai.

Union Minister for Shipping, Nitin Gad-

kari said, “We recognise the importance of the historical bilateral interchange between our two countries as major industrial and commercial partners. There is immense strategic and economic value in our mutual collaboration to propel economic growth in each of our countries. This strategic alliance between these two major ports will drive more efficient movement of goods and will build on our common objective of establishing optimal port performance.�

SPOTLIGHT

JNPT to build satellite port at Wadhwan

T

PIB

o boost the development in the port and shipping Industry, Union Minister Nitin Gadkari confirmed that Jawaharlal Nehru Port Trust (JNPT), which handles more than half of India’s shipping cargo, has decided to build a satellite port at Wadhwan near Dahanu in Thane district, bordering Gujarat. JNPT and Maharashtra Maritime Board (MMB) recently signed a MoU for the construction of the Greenfield port. The new port, which is close to Mumbai, will cost around `10,000 crore and will ease congestion at JNPT. The foundation stone will be laid in December and the port development is expected to be completed in two years. The port will have a capacity of over 60 million tonnes per annum.

Gadkari, who was accompanied by Devendra Fadnavis, Chief Minister of Maharashtra, said that JNPT will have 74 per cent equity while the balance 26 per cent will be picked up by MMB. “The location has advantage that it is clear of fishing activities with deep water depth contour of more than 20 metre which is only 4.5 nautical miles from the coast and 2.5 nautical miles from the rocky patches. The port can be used for the transportation of high quality coal in the Nashik and Bhusawal power generation plants run by the MahaGenco,’’ Gadkari said.

AN EFFECTIVE PROPOSAL: Nitin Gadkari, Union Minister for Road Transport and Highways and Shipping and Devendra Fadnavis, Chief Minister of Maharashtra, witnessing the exchanging of signed MoU between the Neeraj Bansal, Chairman, JNPT and Ashish Sharma, CEO, MMB

Neeraj Bansal, Chairman JNPT said, “JNPT being the premier container port of India, carries additional responsibility to bring in more efficiency and economy to the exim trade. This new initiative of entering into mutual collaboration with international ports is a path breaking initiative of Ministry of Shipping to create more synergy with the international port community.”

Mark Whitworth, the Chief Executive of Peel Ports, said: “The UK and India are natural partners to collaborate and learn from one another. We are facing many similar challenges in supply chain distri-

bution and connectivity. At Peel Ports, we are realising our own ambitious plans in the creation of Liverpool2, a £300m container terminal that will allow some of the world’s largest vessels to call closer to the heart of the UK marketplace. We look forward to working in partnership with JNPT to assist exporters and importers to get their goods closer to market, while reducing costs, carbon and congestion.”

John Whitaker, Chairman Peel Group, was in attendance to witness the signing of the letter, which formalises a partnership between the two ports to work together to advance bilateral maritime trade between the UK and India.

Measured by Foreign Direct Investment (FDI), the UK is already the biggest

G20 ‘maker’ in India. Last year the UK invested $3.2 billion in India accounting for almost 10 per cent of all FDI flows into India, more than the second and third largest G20 investors into India combined.

Likewise, Indian companies are amongst the biggest investors in the UK. The innovations developed through these collaborations have hugely benefited both countries.

In 2014, 1.8 million tonnes of goods worth £3.9 billion were exported from the UK to India, with imports of 6.5 million tonnes to a value of £3.3 billion. Container shipping plays a major and increasing role in this trade, especially with initiatives such as ‘Make in India’ introduced by the Government of India, to encourage in-country manufacturing.

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ENVIRONMENT

BLACK GOLD A number of unused massive oil tankers are being scrapped nowadays. This is a practice that the shipping industry—and governments—are trying to stop.

However, they face a major problem: what to do with decommissioned tankers?

A group of Dutch designers has proposed a way to reuse them as infrastructure

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n a future world without oil, we would end up with thousands of unusable massive oil tankers. Oil tankers are those skyscraper-sized vessels that power the global economy, so it’s not often that we imagine a future without them.

Right now, decommissioned oil tankers are scrapped, often in ship graveyards in developing countries where workers take on the dangerous job of tearing apart the ships by hand, dealing with toxic chemicals and remaining oil, all in order to sell the scrap metal off for a small profit.

A group of Dutch designers, Chris Collaris, Ruben Esser, Sander Bakker and Patrick van der Gronde, have a plan to use these oil tankers as infrastructure. The project, ‘Black Gold’, explores a new sustainable potential of a discarded mega oil tanker. The mega oil tanker ship can be seen as the perfect icon representing the geographic, economic and cultural history of the Arabic oil states. “Wealth, power and cultural enlightenment has come to this region because of its oil history,” said Chris Collaris, one of the designers who created the conceptual design for Black Gold. “But that oil history — or current status — can only be seen on big seas and big harbours.

Why not really embed it visible in your built culture and society? It’s so powerful and breathtaking to have this mega structure at a long beach working as a real functional building.”

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ENVIRONMENT

After carving out the internal structure of a megatanker, the designers proposed to turn it into an airy public space for events, a museum, shops, and even housing, with a park-like area on the top deck. In over 1,300 feet long, some tankers could easily accommodate an entire neighbourhood.

It wouldn’t be an easy conversion to make — cleaning toxic waste off tankers can cost as much as $1 million in current recycling processes, depending on the size of the ship. “The dismantling and cleaning of parts which will not be used in the ship anymore would be the biggest part during construction,” said Collaris.

Collaris proposed removing the internal structure of the tanker and replace it with conventional floor plates. Since these tankers have massive beds, it would be fairly easy to install ad hoc structure inside the steel shell. A wide open rectangle cut through the ship’s sides would create air flow and an airplane hangar-style interior, where sunshine and wind pass freely. A winding pedestrian walkway would connect the entrance to the coastline. Inside, you might find a commercial plaza or maybe a sculpture garden.

While, the top of the ship could be used for farming or recreation.

The clear structure of storage tanks within the oil tanker ship volume creates possibilities for adaptation of new inside functional uses. The double steel walls are able to facilitate a sustainable climate buffer facade of the vessel, which makes the inside climate convenient for ship visits and short stay. The enormous base floor area accommodates a highly flexible potential of big event-based uses. The inside height makes it possible to stack multiple open floor areas or closed building volumes within the body of the ship. But also big open spaces for museum and cultural exhibition are within the ships’ enormous interior volume potential.

Places for longer stay or exceptional acoustic demands can easily be accommodated in extra box structures within the vessels’ body. The enormous body of the ship can accommodate a serious village area. The renovated deck accommodates a swimming pool with glass bottom on top of the ships’ main entrance and a pedestrian scenic night route is accommodated on top of the former deck piping.

Photos: Chris Collaris, Sander Bakker and Patrick van der Gronde.

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COLUMN

Oh, Lala (move)!

Uber’s method of attracting customers by developing, marketing and operating the mobile-app-based transportation network has prompted the goods transportation sector to emulate the Uber business model. “Uberification” is the in-thing, comments Ramesh Kumar

UBER

Ramesh Kumar

TECHNICAL MOVE: A Uber Cargo van used for transporting

A

A mechanical engineer by profession, this lad from Ludhiana with transport-cum-warehouse in his veins, is bitten by the ‘Uber Cargo’ bug. Through a mutual friend, he managed to reach me and landed up at the coffee shop near the 1193 AD built 73 metre, five storeyed minar for a rendezvous 26

s I walked into the brand new Coffee Café Day near Qutub Minar/ Delhi, the lanky blue T-shirted Navdeep Singh stood up to greet me. It was the usual first row of three-seaters near the exit that has become my regular perch over the past month or so at this joint. Yes, a lot of things happen over a cup of coffee!

A mechanical engineer by profession, this lad from Ludhiana with transport-cum-warehouse in his veins, is bitten by the ‘Uber Cargo’ bug. Through a mutual friend, he managed to reach me and landed up at the coffee shop near the 1193 AD built 73 metre, five storeyed minar for a rendezvous. Purpose: To pick my grey cells on the trucking segment. Even before he could thumb through his thick half-exhausted 2015 diary to spell out his master plan, I knew what he had in mind. Why? Because I had entertained two such requests at the same outlet and the same three-seater over the past 10 days.

One thing was common: They are passionate and see a huge upside to be tapped in the

June-July 2015 I Cargo & Logistics

trucking arena through IT support. “Create an app and you’re through” is the mindset. Another commonality is that they sincerely believe that they are ‘pigmies’ and hence cannot dream about a national rollout and hence ready to settle for a ‘pilot’. Pragmatic, indeed. And…Their pilot site is the National Capital Region (NCR) – the Delhi, Faridabad, Gurgaon arc.

“Sure you’ve heard of Uber Cargo?” is how the conversations began. I would be a nincompoop if I were to respond negatively. Who does not, particularly if you are part of the transport ecosystem? As a keen observer of the Indian trucking scenario from the long-haul driver welfare perspective, I was certainly ‘aware’ of Uber Cargo. Also about ‘Lalamove’, GoGoVan, etc.

Yes, these are some of the prominent cargo carriers within the cities mostly. Founded in October 2013 in Hong Kong by entrepreneur Chow Shing-yuk under the original name EasyVan, Lalamove was rebranded last November. It was launched in Thailand on a beta trial in November 2014 as a delivery-matching mobile application. Santit Jirawongkraisorn, Co-Founder and

GOGO

COLUMN

NAVDEEP SINGH

Managing Director of Lalamove Thailand, was quoted saying that the model would enable increased efficiency and transparent pricing in the country’s highly fragmented logistics market.

The target: individuals as well as businesses but Ludhiana’s Singh, like every other wannabe entrepreneur who I had met, are focusing currently on small businesses that do not have their own fleets, lack delivery capacity to match their demand, or have logistics challenges. The business model is different from that of traditional logistics companies. Using technology, these platforms or marketplaces in cyberspace connects users and drivers directly. Are they technology companies or logistics service providers? That is a moot question. It is again a zero asset model with companies owning no vehicles, but belongs to those partnering with their own motorcycles, vans, Multi-Purpose Vehicles (MPVs) and pickup trucks.

The company continually adds drivers to its network. They are located throughout Bangkok, so users do not have to wait long for them to arrive. This eliminates the delivery pick-up fees that logistics companies charge which no logistics provider can match. The fee structure is based on a fixed base fare plus distance charge.

The booming e-commerce sector with last mile

delivery challenges will be potential partners.

GoGoVan is another Lalamove type outfit which is a free, van-hailing app available on Apple’s iOS and Google’s Android devices. It was set up in July 2013 in Hong Kong by five co-founders including Steven Lam, a graduate of the University of California, Berkeley, who wanted to solve a logistical problem in big cities like Hong Kong. It aims to be the Uber of sorts for moving furniture, packages and other big items. GoGoVan’s Chairman Gabriel Fong was quoted saying that the startup planned to expand the app to Seoul, Melbourne and Sydney in the fourth quarter and to Japan, India, China and Southeast Asia soon.

The competition, then, is hotting up. Chennai-based Fast Track, already into passenger cab service with a fleet strength of 4,000 (not owned, but aggregated), has begun enlisting commercial vehicles for cargo transport.

It is a big boon for the hugely unorganised commercial vehicles in cities that hang around industrial hubs or markets for load. With the penetration of the smartphone in a big way, apps are a rage and easy to emulate. Drivers too, are gradually getting hooked to the apps bus.

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

EASY CONNECTION: A GOGO Van in a market for the delivery

The company continually adds drivers to its network. They are located throughout Bangkok, so users do not have to wait long for them to arrive. This eliminates the delivery pick-up fees that logistics companies charge which no logistics provider can match

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INNOVATION

Smart letterbox L

ife has become too busy to organise and wait for deliveries. With 15-50 per cent of packages failing first-time delivery, express parcel delivery firms, DHL, GLS and DPD are jointly trialing a new smart letterbox, which can accommodate 95 per cent of all parcel deliveries.

Parcelhome, which is being developed and produced by Irish-based start-up p can be easily fitted at the customer’s home with wall mounted or free standing installations. The trial programme will run at 100 different households in July in the city of Mechelen, Belgium, near Brussels and is soon to be followed by national launches in Belgium, the Netherlands, France, Germany and the UK. Carriers simply need to have the parcelhome.com app downloaded to a mobile device which allows access to the box using encrypted security codes which are comparable to those used in online banking.

It is also easy to send and return parcels as the letterbox calculates the delivery fee and franks the package. A carrier then comes to collect it. As soon as someone delivers or picks-up a package, the user will receive an e-mail or a text message. ParcelHome makes use of an integrated solar panel and no wiring is required. Moreover technicians come and install it for user, and maintain it if needed. According to Luc van Bosstraeten, Pilot Manager and General Manager, parcelhome.

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com, Benelux, the Parcelhome box is as simple to use as the normal letterbox, but it contains breakthrough technology. “You can use the system to allow package carriers and even local shops to deliver their products at home,” he added. Jan Van Roey, CEO of DHL Parcel Belgium, said, “Customer convenience is central to this project. We see the parcelhome.com concept as an ideal supple-

Qatar’s new track and trace app

Q

atar airways cargo has improved its technology for the track and trace of the shipment. The carrier has launched its new-look website showcasing a track and trace application that will offer customers real-time information regarding their shipments, which can be traced online and via Android and Apple phones and tablets. Visitors to the website will experience streamlined menus and simple navigation that will create easy access to the information they require about Qatar Airways Cargo products and services. Ulrich Ogiermann, Qatar Airways Chief Officer Cargo said: “Qatar Airways Cargo is proud to announce the launch of our newly developed website. It has been designed with our customers in

ment to our extensive Parcelshop network in Belgium. Both initiatives provide maximum accessibility and efficiency for customers, suppliers and parcel services.”

If the trial in Belgium is successful, parcelhome.com will expand rapidly. “We want to cover Benelux by the end of this year, then move into France and the UK,” commented Greg Mackin, CEO for parcelhome.com.

mind and reflects their day to day requirements using technology to improve the integration of the website with mobile devices to deliver a website that is truly user friendly. We will continually be expanding our online content to provide customers with relevant information about Qatar Airways Cargo’s products and services, and we plan to further enhance the website by adding interactive route maps and other tools.”

The website builds upon Quick Response Code technology to improve the user-experience on mobile devices by integrating with phone and navigation applications.

With the new website visitors can access information about Qatar Airways Cargo’s range of products including QR Premium Platinum, QR Premium Gold, QR Pharma, QR Fresh and QR Charter.

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Tel: +91 11 26225028, 26225029, 26225049 Fax: +91 11 26424815 Mob: +91 9811042347 E-mail: anoop@sumanair.com

Branch Offices: Mumbai and Ludhiana www.sumanair.com

NEWS IN BRIEF

AIR  AISATS RECEIVES ISAGO REGISTRATION Air India SATS Airport Services Pvt. Ltd (AISATS) has been honoured with the IATA Safety Audit for Ground Operations (ISAGO) registration for adhering to safety standards at Kempegowda International Airport (BLR) and Trivandrum International Airport (TRV). AISATS becomes the first ground service provider in Trivandrum to be ISAGO registered.

This registration is an extension to the ISAGO registration obtained earlier this year at the Rajiv Gandhi International Airport, Hyderabad (HYD) and their headquarters in Mumbai.

ISAGO registration recognises ground service providers who meet IATA’s industry-proven quality audit principles and is structured to ensure a standardised audit with consistent results across ground handlers. The ISAGO process ensures safer ground operations, fewer accidents and injuries, uniform audit processes, and effectively improves quality standards and enhances the understanding of high risk areas within ground operations.

BOOST FOR AIR CARGO FACILITY IN AHMEDABAD Ahmedabad has emerged as an important economic and industrial hub in India. It is also the second largest producer of cotton in India. Imports and exports through/from Ahmedabad via aerial route is set to rise as the city will get more capacity. Qatar Airways and Emirates Airline plan to add more freighters to and from

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FTA reinforces importance of UK global hub

T

he Freight Transport Association (FTA) told UK Prime Minister David Cameron that the importance of air freight should not be overlooked when considering the options for creating new airport capacity in south east England and outlined the importance of a UK global hub airport.

In a letter to the Prime Minister, FTA’s Chief Executive, David Wells, outlined the essential work of air freight which represents over 40 per cent of UK imports and exports by value, and plays a crucial role in the supply chains of many UK businesses.

Wells said: “FTA is concerned that the importance of air freight is being overlooked. It is a common misconception that air cargo is a minor traffic used only for very high value or urgent items. In actual fact, 80 per cent of freight is carried in the holds of scheduled passenger aircraft using Heathrow airport.”

“On behalf of FTA’s members I have written to the Prime Minister telling him that the decline of Heathrow as a

David Wells

viable global cargo hub will increase the costs of freight and logistics across the UK. Gatwick does not possess the infrastructure to handle the volumes of cargo required,” he added.

Kale helps European carriers in EDI

K

ale Logistics Solutions recently announced that with its fast growing community platform solutions, UPLIFT (Cargo Community System) and GMAX (Airport Cargo Community System), two of the leading European carriers have attained 100 per cent Electronic Data Interchange (EDI) for air waybills in May 2015, for their flights from the Mumbai International Airport.

UPLIFT and GMAX are both first of their kind community platforms in India incorporating features for the benefit of each and every stakeholder involved in the movement of air cargo. The two online platforms enable digital information transmission between carrier, exporter/importer (forwarder), Airport cargo ground handler, customs, chambers of

commerce, transporters and government authorities.

“We have been working very closely with these airlines and their agents so as to understand the challenges in attaining the 100 per cent EDI goal. It has been our endeavor to make technology accessible to all stakeholders such that it can unify the entire logistics supply chain on a common unified platform. And to attain this goal, we are happy to have industry and stakeholder support, which alone can make this model a global success.

We have now proven that 100 per cent e-AWB is a possibility and world class infrastructure for paperless movement of cargo is no longer a distant dream but is a reality,”said Amar More, SVP- Kale Logistics Solutions.

NEWS IN BRIEF

AIR  Ahmedabad. While Qatar Airways added one more freighter to its existing two, Emirates will start its first freighter soon. Etihad Airways is also in talks with the Airports Authority of India (AAI) to start a cargo plane operation from Ahmedabad airport.

AURANGABAD AIRPORT TO MOVE CARGO

Lufthansa and ANA forms JV

L

ufthansa Cargo and ANA Cargo are expanding their joint venture for freight consignments to routes from Europe to Japan. This will benefit European customers by more and faster connections, more capacity, flexibility and time saving. This means that European customers also have access to the shared network of the two airlines made up of over 90 weekly direct flights between Europe and Japan.

First customers in Germany, France, United Kingdom and Austria will participate in the partnership. All other European countries will follow step by step. Lufthansa Cargo and ANA Cargo flights currently connect Frankfurt, Munich, Düsseldorf, London Heathrow, Paris Charles-de-Gaulle and Vienna with Tokyo Narita, Tokyo Haneda, Nagoya and Osaka.

Lufthansa Cargo and ANA Cargo started the first freight joint venture of its kind last December and initially focused on flights from Japan to Europe. Both partners are offering their flights in a shared network on the cooperation routes. Freight is also handled at numerous stations in shared warehouses both in Japan and Europe.

Children at Cathay’s office

Etihad partners with WCA

A

E

s part of the Cathay Pacific Airways’ ‘Enriching Lives’ project, the team in Mumbai invited over 40 children from Urban Community Development Centre (UCDC) in Bandra, Mumbai to spend a day at their office. This was the first activity of its kind for these children.

The Cathay Pacific Airways Enriching Lives project is one where the airline works towards the welfare of under-privileged children all over India. With a vision to provide basic necessities to these children across the country, the airline works with various organisations in different cities. In recent years, under this project, Cathay Pacific Airways along with sister airline Dragonair has worked with Habitat for Humanity at different locations in India.

tihad Cargo has launched a new service in conjunction with the World Cargo Alliance (WCA), the world’s largest network of independent freight forwarders, and Worldwide Information Network (WIN), the IT provider. The platform, which is the first of its kind in the cargo industry, has been launched to provide special rates for selected origins and destinations on the Etihad Cargo network. It applies to WCA members who are also members of Etihad Cargo’s loyalty programme, CargoConnect, and use the WIN e-platform, for all booking and airway bill transactions. In one location, the platform will offer instant pricing for all online Etihad origins and destinations, e-booking, e-airway bill plus track and trace.

Domestic and international cargo movement from Aurangabad airport is expected soon as the Aurangabad Airport Authority (AAA) has decided to develop the old terminal building at the airport as a cargo hub. It was decided at the recently held review meet of all stakeholders at the airport to evaluate the status of the Chikalthana airport after it was accorded international status. To start the international air cargo services from Aurangabad, General Manager (Cargo) and Director Security from Airports Authority of India (AAI), New Delhi,

was on a three-day tour to Aurangabad.

The stakeholders urged the AAI to facilitate operation of international flights as well as domestic flights and improve air connectivity of the airport. The other issues that were discussed during the meet were to assess the international air cargo potential in tonnage (collection of authentic data) pertaining to general cargo, pharmaceutical and agricultural products, to develop required infrastructures for international air cargo such as operation and management of air cargo terminal, exporters and importers roles and responsibility, role and responsibility of custom house agents, freight forwarders and their role and the freight charges.

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NEWS IN BRIEF

ADANI TO CONSTRUCT VIZHINJAM PORT Adani Ports and Special Economic Zone Limited will be constructing Vizhinjam container transshipment port on PPP model as it has received the approval from the Kerala cabinet. Adani Group was the lone bidder for the project, which had no takers in the previous rounds of tendering. The first phase of the project would cost `7,525 crore. Of this, Adani Group would invest `2,454 crore and has sought a grant of `1635 crore from state and central governments.

The decision to grant the project to Adani Group was taken disregarding the objection from the Communist Party of India (Marxist)-led opposition. The CPI(M) had alleged that the government was handing over land worth `6000 crore to Adani Group. Meanwhile, Union Shipping Minister Nitin Gadkari had stated that the project might be moved to Colachel in Tamil Nadu if the political differences in the state over awarding the project to the Adani group was not resolved fast. The Union Minister’s stand also prompted the Kerala Government not to delay the final decision.

SMILE FOR TWO PORTS Shipping Corporation of India (SCI) has added Kattupalli port in Tamil Nadu and Visakhapatnam port in Andhra Pradesh to its SMILE service. The SMILE service is a dedicated service offered by SCI having 3 x 1,600-TEU Indian flag vessels, catering to the coastal trade on the west coast of India as well as the Gulf markets.

The service has an established coastal market from Mundra and Pipavav to Cochin/Tuticorin on the west coast of the country. In an attempt to facilitate shipping solutions on the east coast, SCI has now upgraded the coastal ports of call on the SMILE service to include Kattupalli and Visakhapatnam on the east coast. In addition to the coastal trade, the service would also cater to the trade from Kattupalli and Visakhapatnam to Gulf and vice-versa and also Far East and

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India and Bangladesh sign agreement

T

he Union Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to the agreement on coastal shipping between India and Bangladesh. According to a release, the agreement will facilitate the coastal movement of goods between the two countries.

“Exim trade between India and Bangladesh would be benefited by way of reduction in freight charges. It will also improve the utilisation of port capacities of Indian ports and open up new opportunity for Indian coastal vessels. It will also help in decongestion of roads especially at the Land custom stations/integrated check posts at the Indo-Bangladesh boarder,” the release added.

“The Indian ports serving as transshipment ports for Bangladesh cargo will derive benefits by way of enhanced throughput as a result of Indo-Bangladesh coastal trade. The commencement of coastal shipping between the India and

PIB

SHIPPING AND PORTS 

NEW FRIENDSHIP: The Prime Minister, Narendra Modi with the President of Bangladesh, Abdul Hamid and the Prime Minister of Bangladesh, Sheikh Hasina, at Bangabhaban, in Dhaka, Bangladesh

Bangladesh will increase bilateral trade between the two countries and lower down the cost of transportation of Exim cargo,” release highlighted.

VPT to operate green channel berth

T

o increase the movement of coastal cargo, the Visakhapatnam Port Trust (VPT) is moving ahead with plans to operationalise an exclusive green channel berth. The green channel berth will be able to handle around 1.5 million tonnes of cargo once it is fully operational and will take around nine months to be completed as the required infrastructure is being set up at the berth. VPT will be investing around `45 crore in the first phase with an equivalent amount in the second phase as well with the central government providing 30 per cent budgetary support to the major port, according to the sources. Confirming the development, VPT Chairman MT Krishna Babu said, “Once work on the green channel berth is completed, it will be denotified from customs, after which coastal vessels can come and go without notifiying customs. With this the movement of coastal cargo will become easy.”

NEWS IN BRIEF

ACTL’s export train service to Pipavav

SHIPPING AND PORTS  Europe via transshipment.

NO PRIVATISATION OF PORTS

H C TIWARI

The central government is not planning to privatise India’s ports and is instead seeking to find alternatives to corporatization, Minister of Shipping, Nitin Gadkari said. In an event at Mumbai Port Trust, Gadkari said that his ministry was looking at other alternatives beyond the Companies Act to modernise and develop the ports.

“The basic concept is development and modernisation, Gadkari added.

“We don’t want to privatise, nor do we want to give any equity to the private people. We want to modernise, protect the interest of labour, protect the interest of ports and at the same time improve the services of the ports to improve business and do good profits,” minister said.

He added that the shipping ministry was in discussions and seeking guidance from the finance ministry on possible alternatives.

A

ssociated Container Terminals Limited (ACTL) (ICD-Faridabad) has commenced a dedicated, weekly export train service to/from Pipavav Port. This is in addition to its train services to/from Nhava Sheva and Mundra, according to a release. The ICD had recently received AEO certification from Customs and is also CTPAT-compliant for US-bound cargo. ACTL is also the only pri-

vate ICD in north India authorised to handle the import of new automobiles.

ACTL is a totally self-sufficient ICD, with Customs staff and bank branch within premises, dedicated rail siding with 24x7 operations and rake examination facilities as well as deputed railway personnel, container repair facility, in-house workshop, and a highly motivated and trained pool of manpower.

L&T Kattupalli Port starts RoRo service

L

&T Ports, Kattupalli, has started the Roll-on Roll-off (RoRo) service as the port received the first maiden Pure Car Carrier on June 8, 2015 of Mitsui O S K Lines M V Gardenia Ace. Daimler India Commercial Vehicles Pvt Ltd and Kobelco cranes exported their trucks and machinery through this maiden call. To commemorate the occasion a grand ceremony was held at Kattupalli Port.

With this, L&T Kattupalli Port became the third port in Chennai to handle vessels for shipping cars, trucks, tractors and earth movers. The other two ports — Chennai Port Trust and Kamarajar Port Ltd. — are already handling truck and car shipments. During 2014-15, Chennai Port and Kamarajar Port together exported more than four lakh vehicles to various destinations.

K Venkatesh, Director, L&T Shipbuilding Ltd., said: “Though Ford, Toyota, Ashok Leyland, Nissan and Daimler are using our port for the container business, they are weighing options for commencing export and import of completely built units (CBUs), as it offers a clean environment, hassle-free entry, and unlimited storage, among others. We have reserved a huge yard for automobile parking.”

NEW SERVICE CONNECTING NHAVA SHEVA China United Lines Limited (CULines) has announced the launch of a service connecting Nhava Sheva with China.

The weekly service connects Nhava Sheva (JNPCT), Port Klang, Singapore, Xingang and Qingdao. According to the company, the service offers the advantage of direct calls to two key ports in China, besides Singapore and Port Klang, in addition to fast transit times.

The service is expected to provide a further fillip to bilateral trade between the world’s two leading and fastest-growing economies. Established in 2005 by Unitrans Group company Limited, CULines is involved in international container liner service, cross Taiwan Strait liner service, domestic liner service, Yangtze River feeder service, dry bulk shipping and chartering.

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NEWS IN BRIEF

LAND  ALIBABA MYPACCO

TIES

UP

WITH

Chinese e-commerce firm Alibaba has joined hands with Mypacco, Mumbai-based logistics solutions provider, as part of its Trade Facilitation Centre initiative. The Trade Facilitation Centre provides small and medium enterprises (SMEs) with a platform to trade globally by providing a one-stop solution in terms of finance, credit and logistics. It will also help Indian SMEs conduct cross-border trade. As part of the initiative, Mypacco will offer freight forwarding, customs clearance, documentation, warehousing and transportation to Indian SMEs through the Trade Facilitation Centre.

“With the Trade Facilitation Centre, Alibaba.com will be able to offer Indian SMEs convenient access to financing, credit and logistics services provided by collaborative partners like Mypacco,” said Bhushan Patil, Channel Director (India) at Alibaba.com.

DHL EXPANDING IN CHINA DHL Global Forwarding is further expanding its pioneering multi-

SNZ for rough imports to begin soon

I

ndia’s gems and jewelry industry has finally received the government’s approval to establish a Special Notified Zone (SNZ) at the Bharat Diamond Bourse (BDB) in Mumbai for rough diamond imports, re-exporting and trading. Industry experts believe that this move will go a long way to strengthen India’s position as a leader in manufacturing of polished diamonds.

On this move an industry veteran said, “The SNZ definitely comes as a big relief to the diamond manufacturers and the diamond industry, which faced a lot of regulation over rough imports and re-exporting unused or unsold consignments. As such, it is good news for the manufacturers.”

Reiterating this view, Sanjay Shah, the Director of Gold Star Diamond Pvt. Ltd. added, “This is a positive move. It will help India to be a rough trading center, especially when we have more direct imports coming from various mines.”

A circular published by the government of India stated that it will permit

the trading of rough diamonds from leading diamond mining companies at the SNZ. To facilitate this, the department of Commerce and the Gem & Jewellery Export Promotion Council (GJEPC) sought a regulatory framework under the Customs Act. After consultations with other regulators, which included Directorate General of Foreign Trade (DGFT), Reserve Bank of India (RBI) and with industry groups such as the BDB and GJEPC, necessary provisions were created to allow and facilitate viewing, auctions and sales of rough diamonds at the BDB beginning July 1.

Amazon’s Fulfillment Centre in Punjab modal services in China with a new twice-weekly service between Zhengzhou and Hamburg via Poland. The new 17-day service will offer customers the flexibility of DHL Rail connect, the less-than-container load (LCL) service, as well as a full-container option, DHL Rail line.

DHL now offers three regular multimodal rail services between China and Europe from Zhengzhou , Suzhou and Chengdu which span across central, eastern and western China . The three strategic Chinese

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A

mazon India has announced the opening of its Fulfillment Centre (FC) in Doraha on the outskirts of Ludhiana, Punjab. The centre is spread over 50,000 sq ft and is the first in the state of Punjab. Amazon. in now has 12 fulfillment centres operational across nine states in the country covering a total of over one million sq ft space, according to a statement by the company.

According to the company, over 150 sellers from across the state have already registered at the facility and many of them have started inbounding their products at the facility. The company has invested

substantially in creating logistics infrastructure in the country to help build a ‘transformative customer experience’ for both buyers and sellers, it said.

Amazon has now launched its Global Selling Programme in India, opening doors for Indian businesses to export to e-commerce markets of the world, it added.

The company is extending two of its pioneering products — Selling on Amazon (SOA) and Fulfilment By Amazon (FBA) — to businesses of all sizes and scale from across the country to go global and showcase their ‘Made in India’ creations.

NEWS IN BRIEF

Om Group inaugurates new warehouse

O

m Logistics recently inaugurated its new state-of-the-art warehouse in Narsapura, Bengaluru.

Equipped with all modern facilities and connected with major hubs of Om Logistics across India, this 32,000 sq ft warehouse will ensure the timely deliveries to all parts of the nation. With ample parking space, dedicated professionals and fleets, the warehouse fulfills all the compliances of industry standards. It is located just three km far from the major production

hub of newly developed Narsapura (Kolar Dist, 60 km Away from Bengaluru) Industrial Area.

“Improving service to our customers is a top priority,” said CMD Ajay Singhal, Om Logistics. “The convenient location of our new state-of-the-art warehouse will allow us to do that by reducing delivery time for our clients. It will also allow us to ensure that a cost-efficient logistics structure is in place to handle the anticipated increase in product volume in near future,” he added.

India, Nepal, Bhutan and Bangladesh sign landmark agreement

I

ndia, Nepal, Bhutan and Bangladesh recently signed a landmark Motor Vehicles Agreement (MVA) for the regulation of Passenger, Personnel and Cargo Vehicular Traffic among the four South Asian neighbours. The MVA agreement between sub-grouping of four SAARC nations — Bangladesh, Bhutan, India and Nepal (BBIN) — will pave the way for a seamless movement across their borders for the benefit and integration of the region and its economic development. The BBIN MVA Agreement was signed by the Union Minister of Road Transport and Highways and Shipping Nitin Gadkari on behalf of India. The BBIN MVA will not only reduce transport costs but also foster development of multi-modal transport

and transit facilities.

As per the agreement, the four countries will carry out a six-month work plan from July for the implementation of the BBIN MVA in accordance with the preparation of bilateral, perhaps trilateral or quadrilateral agreements and protocols, installation of the prerequisites for implementing the approved agreements, among others.

Earlier, addressing the BBIN Transport Ministers conference, Nitin Gadkari said, “This indeed is a momentous achievement for all the four neighbours. This historic agreement will further promote our cooperation in trade and commerce apart from further cementing our age old cultural ties.”

LAND  cities rank within China’s top 10 provinces in GDP last year, amounting to CNY 12.9 million (EUR 1.85 million).

“With China’s ‘One Belt, One Road’ strategy focusing on enhancing connections between Asia and Europe and promoting international trade, DHL is extending its lead in the China-Europe rail freight market by developing additional routes,” said Kelvin Leung , CEO, DHL Global Forwarding Asia Pacific. “Our multimodal network covers a wide geographical area between Asia and Europe, offering seamless connections with solutions that ensure complete supply chain visibility and a faster-to-market option for our customers.”

VALIRAM GROUP AND CEVA JOIN HANDS CEVA Logistics has announced its partnership with Valiram Group, a retailer of luxury and lifestyle brands in Southeast Asia, to manage their warehousing and distribution in Indonesia and Thailand. CEVA started supporting Valiram Group last year with warehousing and distribution services for their two brands, Victoria’s Secret and Bath & Body Works in Thailand, and Bath & Body Works in Indonesia. The relationship has since expanded to include the two brands in both countries.

Under the terms of the new contract, CEVA will handle the warehouse management, value added services such as care label, price tagging and bundling, reverse logistics and time specific delivery to their retail stores in the cities for the two brands’ beauty, accessories and lingerie products.

Sharan Valiram, Executive Director of Valiram Group, commented: “Our expertise in creating world class retail concepts has enabled us to bring to the region iconic brands in luxury and lifestyle merchandise from around the world. We are pleased therefore to have a strong logistics partner like CEVA to support our go to market strategy with their solutions in distribution and warehouse management.”

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NEWS IN BRIEF

INFRA  COASTAL ROAD GETS NOD Environment ministry has given its clearance to the long awaited Mumbai Coastal Road — a 35-km long proposed coastal road between Nariman Point and Kandivali in north in Mumbai.

Addressing a press conference detailing the project, Environment Minister Prakash Javadekar said that the clearance for the project is expected to considerably de-congest the city and has come with conditions that will ensure coastal and marine life are not hit by it. Among the conditions proposed are that there will be minimum reclamation of coastal land, no commercial activity to be permitted on reclaimed land and the project should stay clear of the high tide line and Maharashtra government had agreed to the conditions, said Javadekar.

RAILWAYS AND STATES TO JOIN HANDS FOR INFRA BOOST To facilitate public with better movements and upgrade the infrastructure, Railways will sign MoU with state governments to ensure their participation in its efforts.

“Talks are in progress with various state governments seeking their participation in railway projects. Participatory model with state governments is being finalised by the railway ministry,” said A K Puthia, General Manager, Northern Railway. Puthia has already visited several states and Union territories to discuss the issue with them. Northern railway covers many states including Uttar Pradesh, Himachal Pradesh, Jammu & Kashmir, Uttarakhand, Haryana, and Union territories of Delhi and Chandigarh.

36

June-July 2015 I Cargo & Logistics

Punj Lloyd bags another NHAI contract

P

unj Lloyd has secured a 41 km long, `541.84 crores road project from National Highways Authority of India in Bihar. The scope of work for the project includes four-laning from 360.915 km to 402.000 km of the Gorakhpur-Gopalganj section of NH-28 in Bihar.

Part of the highway connecting Lucknow and Muzaffarpur, the stretch starts from Gorakhpur in Uttar Pradesh and will pass through the Kuchaikot, Sasamusa, Gopalganj, Koini and Dewapur areas of Bihar. The project is scheduled to be completed in 24 months from the date of award. The highway aims at reducing travel time between Gorakhpur-Gopalganj and Gorakhpur-Patna by reducing congestion and improving geometric deficiencies at various intersections. It will also improve the connectivity of Valmiki

Wildlife sanctuary (situated at the Nepal border) with Patna.

Managing Director and Group CEO, Punj Lloyd Group, J P Chalasani said, “Punj Lloyd has executed several prestigious projects for NHAI in the past including portions of the Golden Quadrilateral and North-South and East-West Corridor. We are proud to have played a role in creating infrastructure that connects the rural interiors of the country.

NHAI’s aggressive plans to continuously upgrade and strengthen National Highways have resulted in opening up of opportunities for local employment and also in the upliftment of the rural economy. Our knowledge and experience in the highway sector has helped us deliver challenging projects in India in the past.”

Draught at all Major Ports to be increased

I

n order to maximise the revenue at the Major Ports, Ministry of Shipping has proposed to increase the draught at all Major Ports up to 18-20 meters. An increase in draught by just 2 metres could result in a per tonne revenue difference of up to USD 30. For one, larger vessels can be berthed at a Port having better draught, thereby enabling it to handle more volumes. It also facilitates improved economies of scale for the lines. Draught has been a major bane at the Major Ports, generally averaging 11-12 meters.

The Union Minister of Shipping, Road Transport and Highways, Nitin Gadkari said that the ports earmark a sizeable capital expenditure every year for maintenance dredging. This could all change if the Minister’s plans come to fruition, with capital dredging projects being taken up, through Public Private Partnership (PPP) as an important option, to enhance the draught. The Ministry, too, would be funding the projects. A PPP project to increase draught has been initiated at Mormugao Port, Gadkari pointed out.

NEWS IN BRIEF

INFRA 

ACCD holds its AGM T

he thirty eighth Annual General Meeting (AGM) of the Air Cargo Club of Delhi (ACCD) was held on May 27, 2015 in New Delhi. The event was attended by members of the club who elected the new Managing Committee for the Year 201516. The new committee was elected unopposed. Yashpal Sharma was elected as the President of the ACCD. Yashpal Sharma addressed the members after taking over the position and promised to carry on the good work of the past committees.

The new managing committee:

MANAGING COMMITTEE 2015-16

Yashpal Sharma President

Ravinder Katyal Vice President

Ashwini Sharma Executive Member

Prem Sawhney

Executive Member

Sajan Kallra Hon. Secretary

Shakti Yadav

Executive Member

Rajan Nijhawan Hon. Treasurer

Rahat Sachdeva Executive Member

Padma Handa

Executive Member

Sumit Mathur

Executive Member

Mahesh Trikha Vikramjit S. Ahluwalia

Executive Member

Executive Member

APPOINTMENTS

Cathay Pacific Simon Large has been appointed as Director Cargo, Cathay Pacific and will be responsible for all aspects of the group’s cargo business worldwide, including operations, marketing and sales. Large is currently the airline’s General Manager Marketing, Loyalty Programmes & CRM. He joined the Swire group in 1991 and has worked in a variety of management positions within Cathay Pacific, as well as postings at Hong Kong Air Cargo Terminals and tea grower/importer Finlays, part of the Swire group. Large takes over in the cargo role from James Woodrow.

Saudi Arabian Airlines Vandana Singh has taken over as Director Corporate Key Accounts (Indian Sub-Continent and Far East), Saudi Arabian Airlines. Singh has worked in air cargo sector for 18 years. Earlier, she worked with ECS Group as Regional Commercial Director, Asia Pacific Region.

DHL Global Forwarding Thomas Tieber has been appointed as CEO for ASEAN and South Asia, DHL Global Forwarding. Prior to this, Tieber was overseeing DHL Global Forwarding in South Asia. He managed Thailand and established operations in Bangladesh , India , Myanmar , Pakistan and Sri Lanka.

HIGHWAY PROJECTS IN MAHARASHTRA APPROVED The

Central

Government

has

ap-

proved `7,528.74-crore projects in Maharashtra for widening of stretches of NH-6 under its flagship road building programme National Highways Development Project (NHDP).

“The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has given its approval for development of the four laning of the Amravati-Chikhli, Chikhli-Fagne and Fagne-Gujarat/Maharashtra border sections of National Highway-6 in Maharashtra,” an official statement said.

The three projects approved are widening of 485 km under the NHDP phase IV in BOT (toll) mode on Design, Build, Finance, Operate and Transfer (BOT/DBFOT) basis. The projects include four-laning of 194 km stretch of Amravati-Chikhli at an estimated cost of `2,754 crore, the statement said, adding that 150 km of Chikhli-Fagne will be widened at a cost of `2,453 crore. The remaining 141 km of Fagne-Gujarat/Maharashtra border on NH-6 will be widened to four lanes at an estimated expense of `2,322 crore.

INFRA BOOST IN TELANGANA Telangana Government is planning to invest `20,000 crore to improve infrastructure in Hyderabad, Warangal and Nizamabad, confirmed E V Narasimha Reddy, Vice-Chairman and Managing Director, Telangana Industrial Infrastructure Corporation (TSIIC) adding that the state government had plans to improve connectivity with ports. He was addressing a conference organised by the Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI) and the Associated Chambers of Commerce & Industry of India (ASSOCHAM).

Cargo & Logistics I June-July 2015

37

PRODUCT

Fire Containment Cover gets TSO A mSafe Bridport was recently awarded the world’s first and only Technical Standard Order (TSO) by the Federal Aviation Administration (FAA) for its Fire Containment Cover (FCC). On July 1, 2014, the FAA issued TSO-C203 to provide a minimum standard by which manufacturers can design, build and supply a fully certified FCC. AmSafe Bridport became the first and only manufacturer to be granted the TSO-C203 for their Fire Containment Cover. The system includes a fire cover, pallet net and a patented deployment kit. It follows ten years of development, testing and trials which has resulted in over 1,000 FCCs in operational use. This solution helps mitigate the risk of ‘on board’ fires ignited by undeclared dangerous goods being transported on palletised loads.

AmSafe Bridport’s Joe Ashton: “With the continued increase of high tech electronic equipment containing lithium batteries being shipped by online traders unaware of the dangerous goods regulations, the risk of the next major cargo fire is high. On average, the pilot and crew have just 17 minutes from the initial notification of an ‘on board’ fire, to safely land the aircraft. With our FCC protecting your load we can now extend the protection time, up to six hours, for those on board. At AmSafe Bridport we are committed to providing innovative, safety critical cargo restraints and by being the first with TSO-C203, we are pleased to reinforce this ethos.”

Record reaching mobile crane M antsinen Group Ltd has built a material handling machine (Mantsinen 200 ES HybriLift) which will considerably increase the cargo handling efficiency. Mantsinen 200 reaches further than any other hydraulic material handler with the HybriLift energy saving system. Mantsinen 200 gives more versatility than any other mobile harbour crane.

Besides bulk materials, Mantsinen 200 can handle full containers up to five wide and four high. The productivity of the hydraulic crane is one key benefit: Mantsinen 200 has a capacity exceeding 45 TEUs per hour.

The same machine, equipped with different attachments, can also handle general cargo, e.g. steel coils, and all the conventional bulk materials.

HybriLift energy saving system comes as standard, which saves energy consumption up to 35 per cent and therefore consid-

38

June-July 2015 I Cargo & Logistics

erably reduces the operational costs of the machine. Mantsinen 200 is available with electric or diesel motor. It can also move and operate some hydraulic functions even when electric powered material handler is without main power with the help of Mantsinen PowerPack.

Mantsinen 200 comes with an undercarriage and the product range includes Mantsinen 200 R on tracks, Mantsinen 200 M with wheels and Mantsinen 200 S on rails. Height

of pylon or gantry can be easily tailored to meet requirements. There is a choice of three fixed cabin positions or two different cabin elevators to ensure an optimal view for the operator.

Facts Weight 230 - 280 tonnes Reach Maximum 37 m Diesel engine 515 or 565 kW Electric motor 355 kW HybriLift Standard

STATS

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

(*) TENTATIVE

(IN ' 000 TONNES)

PORTS

APRIL TO MAY

% VARIATION

TRAFFIC

AGAINST PREV.

2015* 2

1 KOLKATA Kolkata Dock System

YEAR TRAFFIC 4

2014 3

2499

2063

21.13

Haldia Dock Complex

5811

4451

TOTAL: KOLKATA

8310

6514

30.55 27.57

11969

11728

2.05

VISAKHAPATNAM

8916

10395

-14.23

KAMARAJAR (ENNORE)

5680

4761

19.30

CHENNAI

9064

8815

2.82

V.O. CHIDAMBARANAR

6436

5031

27.93

COCHIN

3815

3716

2.66

NEW MANGALORE

5773

6413

-9.98

MORMUGAO

2985

2334

27.89

10720

9986

7.35

PARADIP

MUMBAI JNPT

11185

10868

2.92

KANDLA

16084

15310

5.06

100937

95871

5.28

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 TOMAY'2015* MAY’2015* VIS-A-VIS APRIL TO MAY’2014) (DURING APRIL TO VIS-A-VIS APRIL TO MAY'2014)

(*)

TENTATIVE

PORT

(IN '000 TONNES) TRAFFIC PERIOD

P.O.L.

IRON ORE

FERTILIZER FIN. RAW

COAL CONTAINER THERMAL COKING TONNAGE TEUs

OTHER CARGO

TOTAL

TRF APRIL-MAY'2015

107

-

-

11

-

36

1305

82

1040

2499

TRF APRIL-MAY'2014

100

39

6

-

-

-

1187

77

731

2063

TRF APRIL-MAY'2015

1209

156

50

52

358

1186

214

14

2586

5811

TRF APRIL-MAY'2014

1093

350

19

71

219

712

263

16

1724

4451

TRF APRIL-MAY'2015

1316

156

50

63

358

1222

1519

96

3626

8310

TRF APRIL-MAY'2014

1193

389

25

71

219

712

1450

93

2455

6514

TRF APRIL-MAY'2015

3152

120

-

404

4989

1690

24

1

1590

11969

TRF APRIL-MAY'2014

3034

537

51

719

4393

1229

14

1

1751

11728

TRF APRIL-MAY'2015

2979

612

183

123

554

985

723

42

2757

8916

TRF APRIL-MAY'2014

2548

2192

198

125

435

911

818

45

3168

10395

KAMARAJAR(ENNORE) TRF APRIL-MAY'2015

622

-

-

-

4631

-

-

-

427

5680

TRF APRIL-MAY'2014

400

-

-

-

3974

68

-

-

319

4761

TRF APRIL-MAY'2015

2397

-

27

56

-

-

5174

268

1410

9064

TRF APRIL-MAY'2014

2456

33

-

24

-

-

4848

251

1454

8815

V.O.CHIDAMBARANAR TRF APRIL-MAY'2015

74

71

75

197

1833

-

1946

98

2240

6436

TRF APRIL-MAY'2014

94

-

81

148

1452

-

1794

90

1462

5031

TRF APRIL-MAY'2015

2396

-

-

44

-

-

874

61

501

3815

TRF APRIL-MAY'2014

2345

-

22

60

48

-

891

58

350

3716

TRF APRIL-MAY'2015

4047

-

51

-

687

384

175

11

429

5773

TRF APRIL-MAY'2014

3606

433

147

28

556

-

155

9

1488

6413

TRF APRIL-MAY'2015

86

126

38

-

82

1629

46

4

978

2985

TRF APRIL-MAY'2014

87

125

32

-

120

1325

33

3

612

2334

TRF APRIL-MAY'2015

5262

-

22

40

1077

-

74

5

4245

10720

TRF APRIL-MAY'2014

5312

-

4

61

857

-

103

9

3649

9986

TRF APRIL-MAY'2015

996

-

-

-

-

-

9879

747

310

11185

TRF APRIL-MAY'2014

632

-

-

-

-

-

9754

719

482

10868

TRF APRIL-MAY'2015

8743

114

813

22

2675

-

-

-

3717

16084

TRF APRIL-MAY'2014

9454

101

444

136

848

-

-

-

4327

15310

TRF APRIL-MAY'2015

32070

1199

1259

949

16886

5910

20434

1333 22230

100937

TRF APRIL-MAY'2014

31161

3810

1004

1372

12902

4245

19860

1278 21517

95871

25.40 -30.83

30.88

39.22

2.89

% VAR.AGAINST 2014-15

KOLKATA Kolkata Dock System

Haldia Dock Complex TOTAL: KOLKATA

PARADIP

VISAKHAPATNAM

CHENNAI

COCHIN

NEW MANGALORE

MORMUGAO

MUMBAI

J.N.P.T.

KANDLA

ALL PORTS

% Variation from previous year

2.92 -68.53

4.34

3.31

21.13

30.55

27.57

2.05

-14.23

19.30

2.82

27.93

2.66

-9.98

27.89

7.35

2.92

5.06

5.28

5.28

Source:INDIAN PORTS ASSOCIATION

40

June-July 2015 I Cargo & Logistics

STATS

INTERNATIONAL FREIGHT ANNEXURE-IVA INTERNATIONAL FREIGHT

AIRPORT

SL. NO.

FREIGHT (IN TONNES) For the month APRIL APRIL % 2015 2014 Change

(A) 18 INTERNATIONAL AIRPORTS 1

CHENNAI

18095

18427

-1.8

2

KOLKATA

3525

3496

0.8

3

AHMEDABAD

1504

1443

4.2

4

GOA

96

123

-22.0 3.5

5

TRIVANDRUM

2157

2085

6

CALICUT

2386

1990

19.9

7

LUCKNOW

203

120

69.2

8

GUWAHATI

1

3

-66.7

9

JAIPUR

118

40

195.0

10

SRINAGAR

0

0

-

11

BHUBANESWAR

0

0

-

12

COIMBATORE

93

76

22.4

13

MANGALORE

75

25

200.0

14

TRICHY

628

420

49.5

15

AMRITSAR

33

15

120.0

16

VARANASI

2

0

-

17

PORTBLAIR

0

0

18

IMPHAL

0 28916

0 28263

2.3 20.9

TOTAL (B) 6 JV INTERNATIONAL AIRPORTS 19

DELHI (DIAL)

41852

34623

20

MUMBAI (MIAL)

42023

38571

8.9

21

BANGALORE (BIAL)

14300

12580

13.7 13.9

22

HYDERABAD (GHIAL)

5068

4449

23

COCHIN(CIAL)

4357

4425

-1.5

24

NAGPUR (MIPL)

43

29

48.3

107643

94677

13.7 -

TOTAL (C) 8 CUSTOM AIRPORTS 25

PUNE

0

0

26

CHANDIGARH

0

0 -

27

PATNA

0

0 0

-

28

-

VISAKHAPATNAM

0

29

BAGDOGRA

0

0

-

30

MADURAI

0

0

-

AURANGABAD

0

0

-

GAYA

0

0

-

TOTAL

0

0

#DIV/0!

(D) 45 DOMESTIC AIRPORTS

0

0

#DIV/0!

(E) OTHER AIRPORTS

0

0 -

31 32

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

136559

122940

11.1

Source: AIRPORTS AUTHORITY OF INDIA

Cargo & Logistics I June-July 2015

41

STATS

REGIONWISE TRENDS IN AIR TRAFFIC ANNEXURE-V APRIL 2015 VS APRIL 2014 REGIONWISE TRENDS IN AIR TRAFFIC

ANNEXURE-V

APRIL 2015 VS APRIL 2014

INTERNATIONAL REGIONS

APRIL 2015

DOMESTIC APRIL

% CHANGE

2014

TOTAL % CHANGE

2015 2014 AIRCRAFT MOVEMENTS(IN NUMBERS)

APRIL 2015

2014

% CHANGE

EASTERN

1728

1321

30.8

12273

11640

5.4

14001

12961

8.0

WESTERN

7558

7163

5.5

32630

29343

11.2

40188

36506

10.1

SOUTHERN

12360

11477

7.7

31797

29970

6.1

44157

41447

6.5

NORTHERN

7746

7685

0.8

28939

28041

3.2

36685

35726

2.7

46

34

35.3

4429

4300

3.0

4475

4334

3.3

29438

27680

6.4

110068

103294

6.6

139506

130974

6.5

NORTH EAST TOTAL

PASSENGERS (IN NUMBER) EASTERN

180742

138149

30.8

1403381

1156797

21.3

1584123

1294946

22.3

WESTERN

1102119

1033376

6.7

4013406

3148920

27.5

5115525

4182296

22.3

SOUTHERN

1835034

1627960

12.7

3562119

2739565

30.0

5397153

4367525

23.6

NORTHERN

1189025

1129513

5.3

3673672

3159370

16.3

4862697

4288883

13.4

2347

508

362.0

411206

353604

16.3

413553

354112

16.8

4309267

3929506

9.7

13063784

10558256

23.7 17373051 14487762

19.9

NORTH EAST TOTAL

FREIGHT (IN TONNES) EASTERN

3525

3496

0.8

8996

8672

3.7

12521

12168

2.9

WESTERN

43666

40166

8.7

24348

21572

12.9

68014

61738

10.2

SOUTHERN

47159

44477

6.0

21604

18582

16.3

68763

63059

9.0

NORTHERN

42208

34798

21.3

24856

21470

15.8

67064

56268

19.2

NORTH EAST TOTAL

1 136559

3 122940

-66.7 11.1

1954 81758

1538 71834

27.0 13.8

1955 218317

1541 194774

26.9 12.1

REGIONWISE SHARE IN AIR TRAFFIC

Source: AIRPORTS AUTHORITY OF INDIA

APRIL 2015 VS APRIL 2014

INTERNATIONAL June-July 2015 I Cargo & Logistics 42 REGIONS APRIL

2015

2014

DOMESTIC

TOTAL

APRIL

APRIL

2014 2015 AIRCRAFT MOVEMENTS (SHARE IN PER CENTAGE)

2015

2014

FREIGHT (IN TONNES) EASTERN

3525

3496

0.8

8996

8672

3.7

12521

12168

2.9

WESTERN STATS

43666

40166

8.7

24348

21572

12.9

68014

61738

10.2

SOUTHERN

47159

44477

6.0

21604

18582

16.3

68763

63059

9.0

NORTHERN

42208

34798

21.3

24856

21470

15.8

67064

56268

19.2

1541 194774

26.9 12.1

NORTH EAST TOTAL

1 3 -66.7 1954 1538 27.0 1955 REGIONWISE SHARE IN AIR TRAFFIC 136559 122940 11.1 81758 71834 13.8 218317 APRIL 2015 VS APRIL 2014

REGIONWISE SHARE IN AIR TRAFFIC

ANNEXURE-V

APRIL 2015 VS APRIL 2014

INTERNATIONAL

DOMESTIC

TOTAL

APRIL

APRIL

APRIL

REGIONS 2015

2014

2014 2015 AIRCRAFT MOVEMENTS (SHARE IN PER CENTAGE)

2015

2014

EASTERN

5.87

4.77

11.15

11.27

10.04

9.90

WESTERN

25.67

25.88

29.65

28.41

28.81

27.87

SOUTHERN

41.99

41.46

28.89

29.01

31.65

31.65

NORTHERN

26.31

27.76

26.29

27.15

26.30

27.28

NORTH EAST

0.16

0.12

4.02

4.16

3.21

3.31

100.00

100.00

100.00

100.00

100.00

100.00

TOTAL

PASSENGERS (SHARE IN PER CENTAGE) EASTERN

4.19

3.52

10.74

10.96

9.12

8.94

WESTERN

25.58

26.30

30.72

29.82

29.45

28.87

SOUTHERN

42.58

41.43

27.27

25.95

31.07

30.15

NORTHERN

27.59

28.74

28.12

29.92

27.99

29.60

NORTH EAST

0.05

0.01

3.15

3.35

2.38

2.44

100.00

100.00

100.00

100.00

100.00

100.00

TOTAL

FREIGHT (SHARE IN PER CENTAGE) EASTERN

2.58

2.84

11.00

12.07

5.74

6.25

WESTERN

31.98

32.67

29.78

30.03

31.15

31.70

SOUTHERN

34.53

36.18

26.42

25.87

31.50

32.38

NORTHERN

30.91

28.30

30.40

29.89

30.72

28.89

NORTH EAST TOTAL

0.00 100.00

0.00 100.00

2.39 100.00

2.14 100.00

0.90 100.00

0.79 100.00

Source: AIRPORTS AUTHORITY OF INDIA

44

June-July 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

“I feel very comfortable and powerful in this male-dominated industry” I have been in cargo industry for 11+ years and the journey has been extremely challenging and daunting. Yet my belief that hard work and aptitude are the two key qualities to survive, grow and succeed in any field has helped me to do well.

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

It’s a mix bag, though over the years I have seen a huge change in acceptance for women as leaders — which is very encouraging.

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

Focus on customer service and orientation with sharp business acumen has been my forte.

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

Even after so many years, the unexpected nature of this business, new possibilities and the opportunity to learn something new every day excites me.

After spending more than a decade in the cargo industry, Pooja Ahluwalia thinks of it as her home. This, despite the initial hiccups she had to overcome.

Today, as Business Manager, Red Express & Logistics, Ahluwalia finds that her male colleagues have grown to accept women in leadership positions.

C & L met Pooja Ahluwalia to find out what it means to be a woman in the cargo industry…

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

Cargo is perceived as a laborious and manual work job and thus not appropriate for women, on the contrary, more than half of our agricultural sector is dominated by women. This gender division is changing very quickly. Indian women

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are hard working, committed and capable of any job whether it asks for physical, intellectual or emotional strength. I feel very comfortable and powerful in this male-dominated industry.

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

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

The growing recognition for diversity in this industry calls for exciting times.

Integrating women into this industry would only help to utilize the great female talent to the advantage of companies and industry as a whole.

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

We could see several examples of women succeeding in sectors perceived to be exclusive to men, then why should this be any different? My advice to aspiring women to take this industry as a career option is to feel confident and powerful about herself and be outstanding.

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