Cargo and Logistics by Newsline

T O P C O N TA I N E R P O R T S O F T H E W O R L D I N 2 0 1 3 Volume III n No 9

C A R G O

NOVEMBER 2014 I `60

L O G I S T I C S

in I A A C A hai g n a h S

CLEAR SKIES With the announcement of the policy guidelines by the Ministry of Civil Aviation for Air Freight Stations, the air cargo sector can look forward to better times

JUST IN TIME

Smartphones and logistics requirements

QUOTE/UNQUOTE

“The problem at present is that many in the air cargo industry do not seem sufficiently aware of what the risks are, or what a huge opportunity this (perishables) is. This is a growing market and a huge opportunity. If the air freight sector wants to make the most of it, then greater collaboration between stakeholders is required, especially in the emerging markets where we predict that demand will increase a lot in the coming years.” ROGER CROOK CEO, Board of Management, DHL Global Forwarding

November 2014 I Cargo & Logistics

COSPHONES.COM

obile phones are used widely today providing us the freedom to communicate anywhere and at anytime. Studies indicate Asia Pacific is leading the world in smartphone usage and penetration. In fact, according to one of these studies, Singapore is the world’s top smartphone market per capita with 85 per cent penetration, up from 72 per cent in 2013, according to Transport Intelligence (TI), a provider of market research solutions to the global logistics industry. According to International Data Corporation (IDC), smartphone sales in Asia Pacific are projected to grow at 23.2 per cent from 2013-2017 outpacing all other geographies and will command a 58.5 per cent global market share by 2017. With this growth and changes in the mobile industry, come logistics opportunities, challenges and perhaps a rethink in managing the Asia Pacific supply chain. Increasing demand of phones has created competition in the Asian market. Smartphones providers are now eyeing South East Asia. As the companies expand into the South East Asian market, the ma-

jority of the smartphone manufacturing is still done in China. For logistics providers, much of the opportunity resides in transportation. Those providers that have built out their networks between China and South East Asia will, perhaps, benefit the most. However, as the regional market continues to develop, opportunities will expand to include advance distribution and value-added services such as repair, refurbishment and other reverse logistics services along with spare-parts solutions. The logistics sector needs to overcome the drawbacks and challenges like lack of infrastructure and the willingness to

outsource value-added services. Logistics providers will need to make a convincing case for these local and increasingly global companies to outsource their logistics requirements. And as demand for smartphones rise, the potential impact they will have on the daily Asia Pacific supply chain will be massive – managing inventory, order requests, track and trace – examples of various tasks that traditionally have been done via laptop, and prior to that the desktop, will migrate to mobile devices such as smartphones and tablets. That will set in motion a complete rethink in how to manage the Asia Pacific supply chain.

e-AWB adoption continues growth

he cargo industry has continued to build on the positive growth of the last few months. The most remarkable growth has been in the Americas, which has emerged as a major force for global e-AWB adoption growth. e-AWB penetration in the USA stands at 16 per cent, an almost 10 per cent increase since the beginning of the year, averaging 1 per cent increase every month. There is also positive news from other corners of the world. 13 airlines have now achieved over 50 per cent e-AWB penetration out of their home country. Ten of the top 25 Freight Forwarders (FF) have achieved 20 per cent e-AWB penetration, led by DHL Express, Schenker, Panalpina, Expeditors Group and United Parcel Service (UPS).

Fastest Growers Country e-AWB Penetration Growth Finland 14.6% 6.5% Kenya 16.7% 4.5% Sweden 6.3% 2.9% Airlines Singapore Airlines 36.8% China Airlines 25.1% Qatar Airways 17.4%

4.4% 3.9% 3.5%

Freight Forwarders CEVA Group 20.4% 1.9% Hellmann 33.6% 1.5% Kintetsu 16.7% 1.5%

RNI No. DELENG/2011/387546

GROUP

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SA Consultants & Forwarders Pvt. Ltd. SA Cargo Services Pvt. Ltd. SA Aviation Pvt. Ltd. SA Travcare Pvt. Ltd.

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Srinagar

MANAGING EDITOR’s NOTE

A kindling of hope

ver the last month or so, a number of moves on the infrastructure front have taken place. All of them have kindled hope. Two of the significant ones – the policy guidelines on Air Freight Stations (AFS) and the draft aviation policy – have made those in the cargo industry feel ‘wanted’. Cargo has always played second fiddle and has always had to lie low simply because ‘it has no voice’. But now all that – hopefully – is changing and the guidelines for AFSs has set the ball rolling. As far as AFSs are concerned, it is not that efforts were not made earlier. Time and again, air cargo stakeholders have taken it upon themselves to push, lobby for AFSs and even start a couple of them. However, every time someone or the other has put spokes in the wheel and put a dampener in the works frustrating everyone. This time, however, with the guidelines binding on all parties, the situation will be better. One of the major constraints that limit the workings of AFSs and international cargo terminals in the country is the Indian Customs’ EDI or the Electronic data interchange. ICEGATE (Indian Customs Electronic Commerce/Electronic Data interchange Gateway), as it is known, is a portal that 24000 of its registered users take help of to e-file. ICEGATE links trade partners with Customs EDI through message exchanges enabling faster Customs clearance. That, in turn, facilitates the EXIM Trade. Apparently, ICEGATE is often down causing problems to its user and delaying the whole process in the EXIM trade. Incidentally, the software and the technology used are outdated and little effort has been put to upgrade the system. One wonders why the technology is where it is. Are we not supposed to be world leaders in IT? Why then should ICEGATE lag behind? Perhaps, the Customs and Excise department would do well to take a look at what ails ICEGATE and often freezes it for good. While doing the story on the AFSs, we were informed

that the issues relating to EDI connectivity had almost been sorted out after continuous efforts in the last two years by a section of the stakeholders. Indeed, the selfless work put in by those affected in the EXIM trade to beef up EDI is commendable. One of the affected freight forwarders not only held meetings with the former Finance Minister and top officials in the ministry to smoothen things but also framed SOP (standard operating procedures) for air cargo handling. As he told C & L, his main aim was to reduce multi-handling, avoid damages and stop pilferages if any. That brings us to an important point. Companies around the world are coming around to the fact that running an efficient supply chain does not only mean getting their products into the hands of their customers. In fact, it is more than that and involves constant interaction with not only those involved in the supply chain but also others in the organisation and even outside it. Most of these ‘other’ organisations are involved in the planning, information sharing, and value-adding activities. If the freight forwarder that we mentioned earlier had not gone out of his way to boost the working of the EDI, the EXIM trade would have remained in a slow-growth mode while other countries around us would have made giant strides. It does not need a ‘pro-active’ Prime Minister to set the trend. The truth is that the freight forwarder moved ahead almost two years ago! All it requires is initiative to start the movement. Indeed, logistics providers are looking at the changing times as our stories in this issue indicate. There are moves by automobile manufacturing units to join hands and reduce costs. There are also efforts to start moving finished cars by railways. All this augurs well for cargo and logistics. We will keep you informed. Till then, happy reading! tghosh@newsline.in

Cargo & Logistics I November 2014

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

CONTENTS

C&L

VOLUME III n NO 9

Editor-in-Chief

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

COVER STORY

p14

India has a great potential to be a global hub for air cargo but lack of infrastructure is the biggest hurdle the country is facing. The aviation ministry has at last woken up to boost facilities. One of the first steps is the finalisation of the policy on Air Freight Stations (AFS).

SPOTLIGHT

p20

American Airlines and US Airways have announced the successful merger of their respective cargo handling operations which will now operate under the collective “American Airlines Cargo” banner.

Sr. Proof Reader RAJESH VAID Correspondents ANJANA TANWAR, NAVEED ANJUM, CHARCHIT SINGH Designers NAGENDER DUBEY, MOHIT KANSAL

COLUMN

Picture Editor PRADEEP CHANDRA Photo Editor HC TIWARI Staff Photographer HEMANT RAWAT Director (Admin & Corporate Affairs) RAJIV SINGH

Finished car transportation service to every corner of the country is expedited swiftly and safely. But it is still done with the help of road carriers. The day is not far when car manufacturers will opt for transporting it by railways.

FOCUS

p28

With the help of body builders, superlative quality car carrier are being manufacturing today. They are manufactured using optimum quality raw material and the latest production technologies in order to ensure safety. These vehicles are highly efficient as they carry heavy loads and deliver them safely to their desired places.

NEWS IN BRIEF

Kempegowda Airport in Bengaluru has been rated as an ‘e-freight compliant’ airport by IATA. In the land section, Container Corporation of India decided to invest `156 crore for 26 per cent stake in Angul-Sukinda Railway Ltd (ASRL), Plus: more news about shipping and infrastructure.

Vice President (Business Development) VINOD KAUL Subscription ALKA SHARMA, JUHI ROHILLA Distribution PANKAJ KUMAR, BHUSAN KUMAR Executive Director RENU MITTAL For advertising and sales enquiries, please contact:

+91-9810030533, 9810159332 Editorial & Marketing office: News Kingdom Media Pvt. Ltd., 20, Nizamuddin West Market, Nizamuddin West, 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 Nutech Photolithographers, B–240, Okhla Industrial Area, Phase–I, New Delhi–110020.

Cover Design: Nagender Dubey Cover Photos: INDEV Logistics

November 2014 I Cargo & Logistics

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STOP PRESS

ACAAI looks at a

changing world The annual convention of the Air Cargo Agents Association of India — this year at Shanghai — came at a very crucial juncture: On one hand, the green shoots of recovery in the global air cargo sector and on the other, a new and resurgent Indian government ready to tackle the challenges facing the aviation sector

hen the Air Cargo Agents Association of India (ACAAI) met in Shanghai in the middle of November for the annual convention, it was with a lot of optimism. After all, a lot of changes had taken place: a new pro-active government was at Delhi, the Chinese President had visited India and the Civil Aviation Ministry had taken a decisive step to boost infrastructure. The change was seen in the convention theme: “Indian air cargo — Changing Times”. Along with this changed atmosphere, India had emerged as the second-fastest growing air cargo market after the Middle East. To top it all, the country’s air cargo market was expected to grow at a compound annual rate of about seven per cent over the next five years, according to a recent IATA forecast. India would also be among the ten largest international freight markets by 2018 led by the United States supplying 10,054,000 tonnes and China with 5,639,000 tonnes, the International Air Transport Association’s (IATA) Industry Forecast 2014-2018 showed. S L Sharma, ACAAI President, remarked on the environment of change: the pace of transformation was “breathtaking — and in many ways and times — leaves us gasping”. He mentioned that all the facets of the cargo industry were turning global. The “connectivity of globalised markets has never been felt in a more pronounced manner as it is today”, he said in an interview to the association journal, just before

November 2014 I Cargo & Logistics

FROM OUR FILES: The 39th ACAAI convention held in Istanbul saw the presence of Turkish Airlines CEO Temel Kotil

he left for Shanghai. Sharma also pointed out that the new government was encouraging manufacturing hubs and that the EXIM policies were being eased. Foreseeing a steady revival of the air cargo industry, the ACAAI President said that the decision to hold the convention at Shanghai was taken after a lot of consideration simply because like Mumbai, Shanghai was China’s main commercial and financial centre and was well-known for its flourishing EXIM activities in the world. The theme of the convention was in tune with the present business sentiment and environment in the country. Sharma said that ever since the new government had assumed office in May this year, there had been numerous statements of intent about the course that it intended to pursue

to bring about major changes in various areas of governance in the country. “One of the key areas of focus of the new government was the logistics industry. The government was focusing in a major way on India’s manufacturing sector, which in turn, would be a boost to the logistics industry and generate additional employment,” said Sharma. Continuing with the environment of change, Sunil Arora, ACAAI’s Convention Chairman, said that the Indian forwarding industry was moving forward and the younger generation was joining the family businesses. These youngsters — all professional entrants — were adding value to the rapidly expanding space of Indian logistics. They were bringing in new perspectives, new technology and new initiatives to the

STOP PRESS

File photo shows former ACAAI President Bharat Thakkar (second from the left) with Turkish Airlines officials at the opening ceremony of ACAAI convention

business. He went on emphasise that the youth were “the changing face of our industry and will indeed change the face of the industry which now needs overhauling”. The ACAAI convention, while debating the changes, also confronted the challenges faced by Indian industry in trade and services from global competitors because of the infrastructure – or rather the lack of it – and its effect on logistics. To top it all, competition had become severe and the ripple effects of that was “ethics and professionalism had unfortunately taken a back seat”, according to Arora. The Association’s members have been grappling with high costs and a global economy that is still to come out of the woods. The common thread that seemed to bind the association was retention of markets, margins and manpower. And it is in that scenario that while Indian freight forwarders networked with their Chinese counterparts to work out new alliances,

on the convention front, the focus was on the emerging global economic order, global recession, and its impact on India’s international trade. In addition, the members also examined the huge opportunities from India’s domestic market. The deliberations were on the economic revival time for acceleration of trade facilitation; the e-commerce boom in India; the global trends influencing air cargo economics; air freight’s new directions, higher objectives and smarter solutions; the resurgence of air cargo in India; and, customizing import legislation and regulations for the expanding Indian market. The convention basically sought to examine the direction the freight forwarding industry was taking; assessing its problems; reconciling the often contradictory objectives of different stake-holders; and establishing steps that had to be taken and the cooperation needed to work in tandem to achieve solutions for an integrated, successful future.

President Sharma had commented that there was great enthusiasm among the association members to participate in the convention – and indeed there was. After the exchange of visits by the heads of the two countries, trade relation between India and China were being enhanced. Most of our members who were participating in the convention were keen to develop business relationship with freight forwarders of Shanghai. He had emphasized that “our members feel that they will definitely benefit from and will be conversant with the system, policies, import handling and infrastructure of that country. They will also be able to share their views on the common issues, the impediments which are causing hindrances in business and how to eradicate them in the process of business. They will get inspired, motivated and be more practical. This will also result in the expansion of the scope of freight movement between the two countries”.

Cargo & Logistics I November 2014

JUST IN TIME

INDIA FOLLOWS MID-EAST TO POST STRONG CARGO GROWTH

SWISS WORLDCARGO

ticularly positive sign given their 40 per cent market share. But the 1.6 per cent decline in demand for European airlines is a worrying trend that reflects the general uncertainty in the European economy amplified by sanctions resulting from the Ukraine-Russia conflict. Overall, improvements in global business confidence have stagnated — which could mean a bumpy road ahead for air cargo,” said Tony Tyler, IATA’s Director General and CEO.

TREND

eptember was a month for smiles for Middle East carriers as air cargo volumes in the region showed the strongest growth of any region in the world, according to recent data released by the International Air Transport Association (IATA). Middle Eastern carriers grew cargo volumes by 17 per cent, a particularly strong result when compared with their average growth in demand for the year-to-date of 10.1 per cent while capacity expanded 14.5 per cent. The region was well ahead of its geographic rivals with Africa showing the next best growth in September of 11.5 per cent. Earlier, IATA forecast said that India had emerged as the second fastest growing air cargo market after the Middle East and was expected to grow at a compound annual rate of about seven per cent over the next five years. India would also be among the ten largest international freight markets by 2018 led by the United States supplying 10,054,000 tonnes and China with 5,639,000 tonnes, IATA Industry Forecast 2014-2018 showed. India would experience a Compound Annual Growth Rate (CAGR) of 6.8 per cent to add 622,000 extra tonnes. Apart from the US and China, the remaining eight largest international freight markets would be the UAE (4,974,000

November 2014 I Cargo & Logistics

tonnes), Germany (4,763,000), Hong Kong (4,648,000), Republic of Korea (3,487,000), Japan (3,480,000), the United Kingdom (2,808,000), Chinese Taipei (2,350,000) and India (2,223,000). Forecast also showed that global freight volumes were expected to rise annually by 4.1 per cent over the next five years. The IATA data shows an acceleration of demand in September. Measured by freight tonne kilometers (FTKs), volumes rose 5.2 per cent compared to September last year, which is 0.8 percentage points ahead of the 4.4 per cent average growth in demand reported for the year-to-date. Capacity grew by 3.8 per cent. Although the overall growth rate continued the positive trend of recent months, regional variations were significant. Airlines in Asia-Pacific, North America, Middle East and Africa all posted strong growth figures (between 5 per cent and 17 per cent above previous year levels). European airlines, however, saw a decline of 1.6 per cent compared to September 2013 and Latin American airlines reported little difference from 2013 with just 0.3 per cent growth. “There were mixed messages in September’s freight performance. The solid 5.7 per cent growth for Asia Pacific airlines is a par-

Swiss WorldCargo recently launched a new app that enables customers worldwide to access its interactive services from their smartphone or tablet. Airlines said that this new app is a further milestone in Swiss WorldCargo’s ongoing endeavours to bring greater digitisation to the airfreight sector. Swiss WorldCargo App makes customers’ day-to-day business easier by offering them track and traces the cargo shipment status by the air waybill number. It also shows the details of all current connections. This app also offers full contact information for all Swiss WorldCargo offices worldwide including email, phone and fax numbers. This app also give details of Swiss WorldCargo’s various products and services. “The new Swiss WorldCargo App confirms our commitment to continuously investing in digital solutions,” said Alain Guerin, Head of Marketing at Swiss WorldCargo. “This includes trialling different ways of delivering our services on mobile platforms. And our first app marks a small but significant milestone in this direction,” he added.

Sindhu Educational Institutes (P) Ltd Sindhu Educational Institute is a brainchild of one of the reputed logistics company in India namely Sindhu Cargo Services Limited, Bangalore. The logistics sector has been facing the dearth of quality manpower and realizing the very need, Sindhu Cargo has started an educational training institute dedicated entirely to different aspects of logistics, shared through well structured training programs. The Institute is headed by Mr. J.S.A. Julius who is retired Deputy Commissioner of Customs and Central Excise. He carries the rich experience of imparting training to the officers of the department through National Academy for Customs, Excise & Narcotics.

FACILITIES Sprawling campus is equipped with the latest technology and infrastructure that proves to be a great advantage for the students. The facilities at the campus include library, canteen, transport. COURSES OFFERRED  Job Oriented Certificate Course on Logistics Management(6 months)  One Year weekend Certificate Course on Logistic Management for Working Professionals  Specialized Certificate Course on Logistic Management subjects (3 months)  Preparation for G-card / Custom Brokers Exam - weekend for 3 months  Fresh batch of Job oriented certificate course starts on 19th January 2015 (6 months)  G-Card preparations on Saturdays from 3pm to 6 pm in Nov 2014, Dec & Jan 2015 (Total: 30 hours)  F- Card (Rule-6 )preparation on Sundays from 10.30 am to 5.00pm in Nov , Dec & Jan 2015(Total: 30 hrs) More details will be available in our website, www.sindhuedu.com

INFRASTRUCTURE & FACILITIES

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www.sindhuedu.com

CAFETERIA

NUMBERS

`200

CR TO SUPPORT COASTAL SHIPPING

India is looking to make cargo movement greener and cheaper by getting cargo off trucks and trains, and have it transported by vessels plying along the coast instead. The Shipping Ministry has planned to set up a fund based on the Europe’s Marco Polo programme to offer incentives for sustainable freight transportation. The Shipping Ministry will introduce a subsidy of `200 cr that would be used over the next two years to encourage traders to use coastal shipping. While India’s coastline spans 7,517 km, less than 15 per cent of the domestic freight is moved along the coast, as against 43 per cent in the EU. A five per cent diversion of cargo towards coastal waterways can result in annual savings to the tune of `2,000 cr and a 6 per cent drop in the emission of harmful chemicals and pollutants, as per Shipping Ministry estimates.

10.59%

INCREASE IN RAILWAY FREIGHT EARNINGS

The Indian Railways generated `48062.07 crore of revenue earnings from commodity-wise freight traffic during April-September 2014 as compared to `43457.78 crore during the corresponding period last year, registering an increase of 10.59 per cent. During this period, the Railways carried 532.44 million tonnes of commodity-wise freight traffic, compared to 511

`180

CR PORT ORDER FOR IL&FS

`800

CR FOR VIZHINJAM SEAPORT

The Union government has cleared of `800 crore for the `6,595-crore Vizhinjam seaport. This will be the first port project that is in line for VGF (Viability Gap Fund). A maximum assistance of 40 per cent of the project cost will be allowed, of which the government will pump in 20 per cent of the amount invested by the company. According to the Fisheries, Ports and Excise Minister of Kerala, K Babu, this decision would help the tender procedure for the project. “Out of the five companies whose bids qualified, three are willing to go ahead with financial bids. Now, the bidding

million tonnes carried during the corresponding period last year, an increase of 4.20 per cent. During the month of September 2014, the Railways generated `7703.85 crore as compared to `6992.18 crore during the same period last year, registering an increase of 10.18 per cent. `3519.49 crore revenue came from the transportation of 42.45 million tonnes of coal.

IL&FS Engineering and Construction Company Limited recently received a Letter of Award (LOA) from IL&FS Maritime Infrastructure Company Limited (IMICL) on behalf of Dighi Port Limited for a total value of `179.84 crore for Engineering, Procurement, and Construction (EPC) contract. This includes development of multipurpose berth, backup yard development and utilities of multipurpose Terminal Berth 5 on the north of Dighi Port, Agardanda in Maharashtra. According to the company, the project completion period is 545 days from the date of notice to proceed (NTP) and the scope of work includes design and construction of multipurpose berth, reclamation of 50 acres of backup area, among others. IL&FS Engineering Services is also presently executing the EPC contract of Berth 4 of multipurpose cargo terminal works on the north of Dighi Port.

process can be expedited,” he said. The port development will be in sync with the landlord port model. Accordingly, Vizhinjam seaport will be responsible for the dredging, reclamation and basic external infrastructure works like construction of breakwater and quay wall.

Cargo & Logistics I November 2014

NUMBERS

24,000 ä8 TEU SHIPS SOON

Lloyd’s Register said that mega container ships capable of carrying 24,000 twenty-foot equivalent units (TEU) will soon be plying the world’s oceans. “Twelve years ago researchers were looking at Malaccamaxes, 18,000-TEU vessels named after the Malacca Strait. People thought that this was absolutely crazy. But things have developed since to the extent that we’ll soon see ships of 24,000 TEUs. The volumes are there, so it’s going to happen,” Lloyd’s Register container segment manager, David Tozer, said. Currently, the world’s largest container ships are China Shipping Container Lines Co., Ltd’s (CSCL) new 19,100 TEU ships, which will take the crown from Maersk Line’s 18,000 TEU Triple-E series.

144,498 TONNES MOVED BY ETIHAD IN Q3

Total cargo tonnage for Etihad Airways rose nine per cent, yearover-year, in the third quarter of this year, which helped the airlines to boost overall revenues by 29 per cent. Etihad Cargo shipped a total of 144,498 tonnes in Q3, bringing in revenue of USD284 million, a 16 per cent increase, year-over-year, with just one per cent capacity growth. The third quarter at Etihad Cargo also saw the launch of freighter services to Moscow and Hanoi, increased frequencies on its existing freighter service to Milan and the deployment of a new A330-200F. The carrier also began a specialist equine service for the air transport of horses and other similar species, which rolled out across 44 of Etihad Cargo’s freighter destinations.

November 2014 I Cargo & Logistics

PER CENT REVENUE DECLINE FOR IAG CARGO

IAG Cargo posted a year-on-year third quarter revenue decline of eight per cent in the third quarter as a reduction in British Airways freighter operations offset and improved performance at its Spanish partner Iberia. Revenue fell to 236 million euros ($297 million) in the three months

In April the long haul freighter leasing contract with London Stansted Airport’s Global Supply Systems (GSS) ended, and IAG Cargo cut freighter numbers significantly. Thus, volumes of 1.3 million cargo tonne kilometres (CTKs) for the quarter decreased 4.5 per cent compared to Q3

through September from 256 million euros in the same period in 2013 as tonnage flown dipped 3.5 per cent to 219,000 metric tons from 227,000 metric tons.

2013, while capacity decreased 6.5 per cent. Overall yield (commercial revenue per CTK) for this quarter was down 3.4 per cent.

350

ELECTRONIC TOLL PLAZAS BY 2014

The central government recently announced that it will bring all 350 toll plazas on the national highways under electronic toll collection (ETC) mechanism by the year-end and also scrap tolling in 45 small stretches — mostly structures such as bridges — next year. Road Transport and Highways Minister Nitin Gadkari said electronic toll collection (ETC) systems will be installed in at least one lane of 350 toll plazas across national highways, advancing the earlier target date by three months. Given the average waiting time of 10 minutes at toll plazas, there is scope to save `7,000 crore through fuel savings, Gadkari said, while inaugurating elec-

tronic tolling system on the Delhi-Mumbai corridor. Citing a Transport Corporation of India-IIM Kolkata study that said `27,000 crore was lost on account of various delays at checkposts, the Minister said electronic toll collection could save `34,000 crore. However, even with these estimates, the benefits would accrue only if all vehicles adopt the electronic toll collection mechanism and all toll plazas install the systems. ETC has already been installed at 55 toll plazas and their integration with the Central Clearing House (CCH) operators has almost been completed on the Delhi-Mumbai route via Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.

Branc

COVER STORY

Clear skies for AFS

S Sakthivadivel, Managing Director, Esquire Express India Pvt Ltd

November 2014 I Cargo & Logistics

Bharat Thakkar, Immediate Past President, Air Cargo Agents Association Of India (ACAAI)

G Raghu Sankar Former member of the Managing Committee of ACAAI

Sanjiv Edvard Cargo Head of the Delhi International Airport Limited (DIAL)

COVER STORY

The country’s air cargo sector finds itself in a peculiar situation: it has the potential to handle increased tonnages but the lack of infrastructure is the biggest hurdle. The aviation ministry has at last woken up to boost facilities. One of the first steps is the finalization of the policy on Air Freight Stations (AFS), writes TIRTHANKAR GHOSH

he office memorandum from India’s Ministry of Civil Aviation permitting the setting up of Air Freight Stations (AFS) has raised the spirits of the air cargo stakeholder community. Neglected for a long time, air cargo in the country has had to remain way behind the passengers. The memo on the policy guidelines on AFSs, however, has changed the situation – albeit marginally. The memo mentions that one of the recent initiatives undertaken by the Ministry of Civil Aviation pertained to strengthening of the air cargo logistics infrastructure in the country. In that context, the creation of off-airport common user facilities for handling international air cargo through AFSs was being pursued. The ministry note goes on to point out that the competent authority had finalized the ‘Policy Guidelines on Air Freight Station’ after extensive consultations with stakeholders and with the related Ministries and departments in government of India. It is not that AFSs will now be created for the first time in the country. Air cargo stakeholders have been crying themselves hoarse for enhanced cargo infrastructure. In fact, AFSs were launched quite a few years ago in Chennai and Mumbai but they died slow and painful deaths because there were hardly any takers for the facilities provided at these stations. As cargo industry veteran S Xavier Britto, Chairman, Indev Group, that controls Indev Logistics which co-ordinates all logistics services under one roof, put it, “The concept of Air Freight Stations will reduce congestion at the Gateway Airports and the carrier operators can choose the AFS as a final destination for delivery of cargo.” He went on to point out that AFS is based on the idea of “providing airlines nodes near industrial clusters and major warehousing stations. Normal activities

such as Customs documentation and examination, Cargo Acceptance Check, Security Checks, cargo palletization and warehousing are carried out at AFSs”. A word about the CFSs. These are common user facilities and offer services for handling and temporary storage of import/ export containers carried under Customs transit. All the activities related to clearance of goods like warehousing, temporary admissions, re-export, temporary storage for onward transit and outright export, transshipment, take place from such stations. These CFSs have, according to the freight forwarding community, been the key enablers for rapid maritime cargo growth in the country. The CFSs in Chennai are often cited as examples for the manner in which they have eased the processes of export and import. These off-port container facilities led to containerisation and standardisation of cargo. In turn, that has played a significant role in the smooth and seamless multi-modal connectivity of the seaport with other modes of transportation. The consolidation of cargo through containerisation has led to a reduction of transit time by more than two-thirds and brought down the cost of ocean freight by almost half. Container throughput at Chennai seaport is reported to have increased by five times to reach 15,00,000 containers in the last five years. The move to establish AFSs was prompted by the fact that the cargo sections of almost all airports in the country are severely congested. The major reason for the congestion is that traditionally almost all the activities related to the processing of air cargo (weighing, screening, Customs examination, ULD formation, etc.) have been done at cargo terminals in the airport area. The AFS – being off-site – were meant to reduce congestion at the airports, by carrying out the transfer of cargo to designated or Customs notified freight stations through

Cargo & Logistics I November 2014

COVER STORY

bonded trucking operations. This brings in greater throughput efficiency, reduces dwell time, and maximizes the utilisation of installed capacity. The ministry’s memo makes the duties of the AFS clear: “Air Freight Station (AFS) is an Off-airport Common User Facility equipped with fixed installations of minimum requirements and offering services for handling and temporary storage of import and export cargo etc. AFS is the counterpart of Inland Container Depot (ICD) for Maritime Cargo.” The powersthat-be in the ministry have mentioned that this “initiative of AFS will create an enabling environment for promoting international air cargo operations by reaching out to hinterland regions of the country besides de-congesting the congested air cargo terminals in some gateway international airports that face high dwell time”. S Sakthivadivel, Managing Director, Esquire Express India Pvt Ltd, who has over two decades of experience in cargo handling and freight forwarding services, agreed. “The success stories of ICD and CFS created for maritime cargo will be seen in air freight stations in the near future.” The MD of the Chennai-based logistics services company — Esquire also has branches in Bengaluru and New Delhi — went on to say that “we wish our Prime Minister’s vision of ‘Make in India’ will be fulfilled where AFSs will play “a major role to create new business opportunities for manufacturers and service providers in the country on par with the international standards of dwell time in handling shipments”. Highlighting the release of the policy guidelines, freight forwarder and former President of the Air Cargo Agents Association of India (ACAAI), Bharat Thakkar said, “Now, AFS is not only a legitimate right but the guidelines that have been released make it easy for setting up AFSs.” He also pointed out that ACAAI had been instrumental in conceiving this idea years ago and also for pursuing the cause. He emphasized, “This may change the landscape of air cargo in the country.” Thakkar was not the only one. The Federation of Freight Forwarders’ Associations in India (FFFAI), the apex body of 24 Custom Brokers’ Association and the sole representative of more than 5000 Custom Brokers and freight for-

November 2014 I Cargo & Logistics

Wanted: A ministry for logistics

India (NHAI is responsible for maven before the dust could settle jor highways in the country) and the on the policy guidelines for Air ports do not enter into pre-planning Freight Stations issued by the consultations. As any project proIndian government, a section of cargresses, access bottlenecks emerge go stakeholders have taken it upon and disrupt the progress. This lack of themselves to lobby for improved carco-ordination between NHAI go infrastructure involvand any state government ing the whole industry. road transport ministry has Leading the charge resulted in the lack of dediis a veteran freight forcated access road to airports warder J Krishnan. As at Delhi, Mumbai, Chennai, Chairman of the logistics Cochin, and a host of other committee of the Madras places. Chamber of Commerce J Krishnan Hence the suggestion to and Industry, he has been create a new ministry, said Krishnan. advocating the creation of a separate “A dedicated ministry can ensure a department of logistics headed by a world class infrastructure across all Minister from the government. Krishmodes,” he said, “and this will also nan presented his case to Nitin Gadbring in a seamless supply chain”. kari, Minister of Roadways, Highways As for the present problems that and Shipping recently. the air cargo in the country faced, C & L caught up with Krishnan, Krishnan said that the “Indian air carone of the oldest air cargo forwarders go industry has not matured to world in the country, to find out why there standards and cargo unitization hapwas a need for a Ministry of Logistics. pens only at airports”, he said. Only While in one way the need for a single loose cargo is shifted to airports. In ministry to handle all sectors would fact, Indian airports stand out in the simplify matters, it could also lead to a number of loose packages handled lot of bureaucratese and delays. As an when compared to the major cargo example, we pointed out that the avihubs in Asia and other parts of the ation ministry through all these years world. He went on to say that “air terhad done precious little for cargo. minal operators do not possess the Thinking about the future, Krishnan core competency to handle freight”. said that to “create a world class inIn such a situation, “airports must refrastructure a holistic approach needs main only as throughput areas if they to be adopted”. In the Indian context, are to function efficiently”. the ministries controlling infrastrucThe ideal solution for all this ture are Aviation, Road, Railways, would be Air Freight Stations where Shipping, Industry and different state loose cargo is processed, unitized governments. He pointed out that “inand delivered to airports for uplift ter-ministerial rivalries and the trust and in the reverse flow unitized imdeficit between the central governports are shifted to AFS, de-vanned ment at Delhi and the state (on acand delivered, said Krishnan. The recount of different political affiliations) cently-announced AFS policy has exhas remained a major roadblock for tended the concept of Dry Ports and commissioning and completing major permitted existing Inland Container infrastructure projects”. As an examDepots/Container Freight Stations to ple, he said that the railways focus handle air freight too for regulatory was on passenger movement while clearances. the National Highways Authority of

COVER STORY

Coming: Faster movement of cargo

the circular was issued 15 years ago, n India, around 2.2 Mn Tonnes due to various reasons, the facility of of cargo per annum is handled transshipment from gateway airports through airports, said S Xavier Britto AFSs have remained a non-starter. to, Chairman, Indev Group, and the After constant persuasion and variexisting infrastructure at airports is ous representations, the government inadequate to deal with the growing has developed a software cargo volumes. To meet model for transshipment of the requirements of the cargo from Air Cargo Comindustry, the government plexes to AFSs and Air Cargo has been working on faComplexes (ACCs) at othcilitation measures. To er Customs Stations under facilitate faster clearance the EDI system. This facility and delivery, the governwill be used by stakeholders ment notified dry ports S Xavier Britto and will ensure complete in the hinterland as Cusaccountability under the existing EDI toms Stations. These Inland Container system. The Transshipment Module Depots (ICD) are mainly connected to comprises: gateway seaport or airports. To meet • Declaration of destination of Inland the requirements of the industry, cerContainer Depot (ICD) and Air Cargo tain ICDs as AFSs were declared. Complex in Import General Manifest The AFS concept, Britto pointed (IGM); out, is based on the idea of providing • Filing of Cargo Transfer Manifest nodes for air carriers near industrial (CTM) at Service Centre; clusters and major warehousing sta• Cargo Transfer Manifest (CTM) aptions. Normal activities, such as Cusproval in ICES; tom Documentation and Examination, • Request for Cancellation of Cargo Cargo Acceptance Check, Security Transfer Manifest (CTM); Checks, palletization and warehous• Approval of Cargo Transfer Manifest ing are carried out at the AFS. The (CTM) cancellation request in Indian processes aim to reduce congestion Customs EDI System (ICES); at gateway airports and carriers can • Filing of Transshipment Permit (TP) choose the AFSs as final destinations request at the Service Centre; for delivery of cargo. • Transshipment Permit (TP) approval The major advantages would be in ICES; faster evacuation of cargo from gate• Request for cancellation of Transway airports. In addition, an integratshipment Permit (TP); ed supply chain would be created with • Approval of Transshipment Permit various stakeholders. While this would (TP) cancellation request in ICES; be transparent, accountable and re• Post-Transshipment Permit (PTP) sponsive, dedicated and customized cargo loading at gateway air site; and logistics solutions would come bring• Gate-in process at destination Air/ ing about minimized transaction in loICD site; gistics costs. The overall scenario in the near Way back in 1999, Britto pointfuture is that the Air Cargo Complexed out, the government of India ises will witness faster movement of sued Circular No.69/1999 (dated cargo. Such expeditious movement 06.10.1999) for movement of import and clearance of cargo will obviously cargo by containers/trucks from Airsatisfy the needs of the importers and ports/ACC to ICDs/CFS/Airports/Air exporters. Cargo Complexes (ACCs). Though

November 2014 I Cargo & Logistics

warders in the country, said in a note issued by Chairman Debashis Dutta, Honorary Secretary Amit Kamat and Convener-Airfreight Council Vipin Vohra that the AFS initiative — taken as part of the 100-day programme by the government — was “a timely step towards making the benefits of the anticipated boom in international trade available at the doorstep of the exporter and importer”. “This measure is expected to go a long way in improving the efficiency of cargo handling by decentralising the Customs and forwarding activities and moving them away from the airport terminals, such that the cargo would be brought to the cargo terminal in a ‘Ready for Carriage’ condition,” said the FFFAI note. Said Sakthivadivel, “The policy guidelines on airfreight stations by the ministry of civil aviation will definitely go a long way to strengthen the air cargo logistics infrastructure in the country. Additionally, the guidelines would be common and binding for all the stakeholders concerned in the supply chain of international air cargo operation such as airlines, air cargo terminal operations, airports, freight forwarders, Customs, exporters/importers and all regulatory organizations.” He went on to point out that AFSs would act as facilitators since these would provide additional infrastructure support to generate additional air cargo from the hinterland and manufacturing hubs by reducing the congestion in the airports cargo complexes. “The direct transfer from the AFS towards airside and vice versa with all the required facilities such as IT/EDI, Customs clearance under the AFS roof will reduce time,” said Sakthivadivel. One of the major reasons for the present cargo delays at airports, according to stakeholders, is EDI or the Electronic Data Interchange of the Indian Customs not functioning. Known as ICEGATE (Indian Customs Electronic Commerce/Electronic Data Interchange Gateway), it is a portal that provides e-filing services to the trade and cargo carriers and other clients of Customs Department (collectively called Trading Partner). At present, about 24000 users are registered with ICEGATE who are serving about 6.72 lacs importer/exporter. ICEGATE links about 15/broad types of partners with Customs EDI through mes-

COVER STORY

PHOTOS: INDEV LOGISTICS

WORK IN PROGRESS: (Anti-clockwise) View of ICD container yard, air cargo handling and latest equipment (side loader)

sage exchanges enabling faster Customs clearance and in turn facilitating the EXIM Trade. C & L was informed that the issues relating to EDI connectivity had almost been sorted after continuous efforts in the last two years by stakeholders and the final notification was expected any time. In this connection, Britto had a couple of personal meetings with the former Finance Minister to speed up the entire process. He gave the example of INDEV’s ICD at Irungattukottai that was fully equipped to handle all types of air cargo. “We have also made specialised vehicles to carry the ULD boxes directly from the airport. We have worked with Customs to frame the SOP (Standard Operating Procedures) for air cargo handling in the past. Our main aim,” said Britto, “is to reduce multi handling, avoid damages and stop pilferages if any. The AFSs will go a long way to enhance air cargo volumes and also allow airports to concentrate on their core activities,” he said. Sanjiv Edward, Cargo Head of the Delhi International Airport Limited (DIAL),

said that AFSs could reduce transaction costs and time. DIAL, for example, operates two AFSs: one at Kanpur and the other at Ludhiana in central India. In what was then the first of its kind, DIAL teamed up with CONCOR to set up the two AFSs. Bonded trucks are being used to shift shipments – the transit time from the industrial city of Kanpur to Delhi airport takes around 12 hours — and custom clearances take place at the facility itself. Airport hubs like Delhi, said Edward, “should be complemented by AFSs”. Only then would the country air cargo realize its potential. Way back in June 2012, the Association of Private Airport Operators (APAO) had recommended that AFSs be put up. “If this is implemented there will be increased requirement of resources of Customs, other regulators, agencies as well as other facilitatory agencies involved in the supply chain... for each airport, based on its current capacity and future development of cargo infrastructure, a comprehensive need analysis should be done to ascertain whether AFS is

needed or not. In case it is determined that AFS is needed, then it should function as an extended arm of the airport itself to make it viable for the key customers.” Earlier attempts to set up and operate AFS had largely been unsuccessful. One of the committed advocates of the AFS concept, G Raghu Sankar, (former member of the Managing Committee of ACAAI), after years of trying to convince authorities almost gave it up since he felt that the operations of off-airport freight stations had not been understood at all. He often pointed out the case of the AFS that was set up in 2007 in Chennai. The civil aviation ministry, along with custodians of the air cargo terminals (the Airports Authority of India or Air India), did not really show interest because they felt there would be a loss of revenue when that was not the case. However, now that the government note has made the policy guidelines governing Air Freight Station “common and binding on all stakeholders concerned in the supply chain of International Air Cargo operations such as Airlines, Air Cargo Terminal operators, Airport Operators, Freight Forwarders / Customs Brokers, Exporters / Importers and all regulatory organizations”, the FFFAI’s spokespersons commented that the “initiative will help to put India in the top league of exporters by paving the way for expeditious off-airport handling and clearing of the cargo, which will also result in savings in the transaction costs apart from substantial improvement in the cargo processing time”.

Cargo & Logistics I November 2014

SPOTLIGHT

AA steps up the game Barely a month ago, American Airlines Cargo went through a ‘really historic day’ when the merger between American Airlines and US Airways saw the transition to a single air waybill (001) for all new shipments. Today, the merged entity aims to create waves in the world of air cargo. A report

merican (the merged American Airlines and US Airways) wants to be ‘the greatest airline in the world’ and its cargo division is fully geared to join the initiative and counter all challenges. Barely a month ago, on October 20, 2014, “really a historic day for American Airlines Cargo”, AA Cargo finally presented one combined network between American Airlines and US Airways to its customers. That led American Airlines Cargo President “Big” Jim Butler to declare: “Ultimately our goal is to deliver a world class experience with each and every shipment.” In an e-mail interview with this correspondent, Butler pointed out that the next phase of his plan – the first was the merger

dent we offer an extremely competitive of the two carriers’ cargo divisions — was cargo operation without needing a separate “to expand our network and overall offerfreighter network.” ing, strategically invest in our facilities With total faith and deand position American Airlines pendence on AA Cargo’s Cargo as a leader in innoThough AA’s customers, the Presivative solutions and cusexpansion will see dent said that customtomer service”. more flights to China ers could expect that Though the exand Hong Kong, Butler has “we will continue to pansion will see more no plans to start freighter develop our product flights to China and flights to manufacturing and service offerings Hong Kong in Asia, destinations other than through technology Butler has no plans to China like and investments in our start freighter flights to resources”. Asian manufacturing desIndia Widely acknowledged tinations other than China like as one of the main players in the India. He said: “Having the world’s restoration of American as ‘the greatest largest passenger network with one of the airline in the world’, Butler was happy newest fleets in the industry, I am confiContinued on page 22

November 2014 I Cargo & Logistics

SPOTLIGHT

‘Aim: Deliver a world class experience’ Having successfully completed the merger of the cargo divisions of American Airlines with US Airways, Jim Butler, President, American Airlines Cargo, is on to the next phase of development that will position AA Cargo as a leader in innovative solutions and customer services, as he pointed out in this e-mail interview. Excerpts: Now that the integration between the two airlines is complete, what are the immediate tasks in hand and what are the long term plans? Our plan is to expand our network and overall offering, strategically invest in our facilities and position American Airlines Cargo as a leader in innovative solutions and customer services. Customers can also expect that we will continue to develop our product and service offerings through technology and investments in our resources. Ultimately our goal is to deliver a world class experience with each and every shipment.

How does forecast of 2014 compare to 2013 tonnage-wise — now that you have played your role to restore American as the greatest airline in the world? I’m pleased to say that our traffic numbers have been trending very well through 2014 and I would expect to finish out the year on a positive note. Additionally, now that we have combined American Airlines Cargo and US Airways Cargo under a single air waybill, we’re expecting to realize the benefits of our combined network as we move through the next year.

What is so special about your pharmaceutical facility in Philadelphia? The new 25,000 square-foot facility is designed to cater to a full range of temperature sensitive pharmaceutical and healthcare products. Included within the building will be 6,000 square feet for Controlled Room Temperature (CRT) for passive shipments at +15°C and +25°C, 3,000 square feet for shipments that need to be maintained in a +2°C to +8°C environment and a deep frozen area for shipments needing to be kept at 0°C to -20°C. There is also an Active Container Management area which includes charging stations with capacity for simultaneous re-charge of up to 30 RKNs. The facility is equipped with advanced technol-

ogy for monitoring products with proactive alarming and is validated to 0.25°C. There will also be full back up power generation to ensure product protection in the event of a power failure. In all, it will be a great example of our focus and investment in our ExpediteTC offering.

and JFK starting December 1st.

Do you see the Middle Eastern carriers as competition in the cargo sector? If so, how do you propose to tackle them and other competition?

Middle Eastern carriers are certainly competition in the cargo sector, particularly when What are the special products you are of- one looks at their growing fleet and expandfering today and do you plan some more in ing network, but we have strong competition in all of our markets, be it Asia, Europe or the future? Latin America. We’re simply focused on deWe have a wide range of specialty services livering the best service that we can to our designed to provide expert attention to the customers and concentrating sensitive commodities that on providing products that come across our docks. meet their evolving needs. Whether you are trying to In some cases, we work with ship sensitive healthcare other carriers on interline products, live animals, husolutions in order to extend man remains or other speour own network or provide cial items, we focus heavcustomers with additional ily on the care given from capacity to markets which the moment we receive the Jim Butler may be capacity constrained shipment until we complete delivery. Specialty products for American. However, we are extremely important with a prime examwill only offer an interline solution when we ple of that being our cold chain programme can work closely with the other carrier to enwhich has seen double digit growth over sure a seamless transition. the last few years, and will continue to be a focus area for us in 2015. What is your assessment of the current

What will be the new additions to the freighter fleet and how much more capacity would you get from the passenger aircraft — both narrow and widebodies? American does not operate a freighter fleet, but we are taking delivery of more cargo friendly aircraft with an order book of at least 68 new widebodies. We are especially excited about taking delivery of the first of 42 firm and 58 option 787 Dreamliner aircraft and will begin offering service in 2015. As we expand our fleet, it allows us to offer new service such as our recently introduced service to Hong Kong and our upcoming service to Viracopos International Airport (VCP) in Campinas, Brazil from both MIA

market — is there a sustained recovery in the works and do you foresee a more traditional peak season this year? 2014 has been a very encouraging year. Despite all of our work on integration with US Airways, we have been able to grow our total revenues in 2013, driven mainly by increased volumes and stabilized yields. Business out of Europe has been consistently strong throughout the year. In addition, our traffic from China has been quite robust even with our capacity growth (new HKG/PVGDFW flights) and we see encouraging signs for the remainder of this year as demand continues to increase. Overall we expect strong results for the remainder of the year and I am looking forward to next year.

Cargo & Logistics I November 2014

SPOTLIGHT

Continued from page 20

at the way cargo tonnages were moving up when other carriers were not doing so well. “Our traffic numbers,” he said, “have been trending very well through 2014 and I would expect to finish out the year on a positive note”. To top it all, now that there was a single air waybill (after the merger), the benefits of a combined network will become more apparent through the next year. “Overall we expect strong results for the remainder of the year and I am looking forward to next year,” said Jim Butler. For AA, 2014 has been “a very encouraging year”, said Butler. Even though the work on integration with US Airways was going on, cargo tonnages increased and so did revenues. This was “driven mainly by increased volumes and stabilized yields. Business out of Europe has been consistently strong throughout the year”, said Butler. In addition, the traffic from China has been quite robust even with “our capacity growth (new HKG/PVG-DFW flights) and we see encouraging signs for

November 2014 I Cargo & Logistics

the remainder of this year as demand continues to increase”. Despite the fact that American does not operate a freighter fleet, Butler’s optimism stems from the fact that the carrier will be taking delivery of more cargo-friendly aircraft with an order book of at least 68 new widebodies. In fact, the first of 42 firm and 58 option 787 Dreamliner aircraft will start services in 2015. As the fleet expands, it will allow AA to offer new services such as the recently introduced flights to Hong Kong and the upcoming service to Viracopos International Airport (VCP) in Campinas, Brazil from both MIA and JFK starting December 1, 2014. AA is keen to ramp up its pharma tonnages with its new pharmaceutical facility in Philadelphia. The new 25,000 squarefoot facility is designed to cater to a full range of temperature sensitive pharmaceutical and healthcare products. In addition to the pharma product, AA will be

offering a wide range of specialty services designed to provide expert attention to sensitive commodities. Butler pointed out that whether one is trying to ship sensitive healthcare products, live animals, human remains or other special items, AA will focus heavily on the care given from the moment it receives the shipment until the delivery is completed. “Specialty products,” said Butler, “are extremely important. Our cold chain programme has seen double digit growth over the last few years, and will continue to be a focus area for us in 2015.” AA is aware of the competition posed by the Middle Eastern carriers in the cargo sector. But, as Butler put it, it is not the M-E carriers alone, “we have strong competition in all of our markets, be it Asia, Europe or Latin America”. For AA, its customers would be delivered “the best service” while it concentrates “on providing products that meet their evolving needs”, said the President of AA Cargo.

RNI No. DELENG/2011/387546

PANORAMA

TOP PORTS AROUND THE

WORLD Asia is king among global container ports. The ports of Asia hold nine of the ten top rankings and fill 26 of the 50 slots in the 2013 rankings. India, however, only has one of its 12 major ports in this list: Jawaharlal Nehru Port was ranked 34—it handled 4.12 million Twenty-Foot Equivalent Unit (TEUs) in 2013 against 4.26 million TEUs and 4.32 Million TEUs in 2012 and 2011, respectively. The Middle East’s largest container port, Jebel Ali in Dubai, has been ranked ninth, handling 13.64 million TEUs in 2013. Jebel Ali is the flagship facility of parent DP World, a global terminal operator that handled 55 million TEUs in 2013 and 29.4 million TEUs in the first half of this year. Europe’s largest container port, Rotterdam is ranked 11th with 11.6 million TEUs in 2013. As the largest exporter of goods moving on container services, Shanghai, China ranks as number one in the top 50 global container ports with a volume of 33.62 Million TEUs. Further, Singapore still ranks as number two mainly because it is an important hub where containers from one liner service are transferred to another liner service for on-carriage to their final destination. The tiny country of Malta has risen to a major world port by developing a transshipment hub on the island.

Singapore

32.6 Mn TEUs (2013); 31.65 Mn TEUs (2012) and 29.94 Mn TEUs (2011)

Shanghai, China

2 33.62 Mn TEUs (2013); 32.53 Mn TEUs (2012) and 31.74 Mn TEUs (2011)

3 4

Shenzhen, China

Hong Kong, China

23.28 Mn TEUs (2013); 22.94 Mn TEUs (2012) and 22.57 Mn TEUs (2011)

17.33 Mn TEUs (2013); 16.83 Mn TEUs (2012) and 14.72 Mn TEUs (2011)

Others from Asia There were quite a few other ports on the list from Asia. What is important to note is that the Chinese ports have taken a lion's share of the listings other than the ones from 1 to 10. Among the top positions held by ports from Asian nations: Port Kelang, Malaysia with a ranking of 13; followed by Tanjung Priok, Jakarta, Indonesia at 22; Laem Chabang, Thailand at 23; Ho Chi Minh, Vietnam at 24; and, Colombo, Sri Lanka at 33.

15.52 Mn TEUs (2013); 14.50 Mn TEUs (2012) and 13.02 Mn TEUs (2011)

Guangzhou Harbor, China

15.31 Mn TEUs (2013); 14.74 Mn TEUs (2012) and 14.42 Mn TEUs (2011)

Tanjung Priok, Jakarta,

Laem Chabang, Thailand 6.59 Mn TEUs (2013); 6.46 Mn TEUs (2012) and 5.65 Mn TEUs (2011)

Busan, South Korea

17.69 Mn TEUs (2013); 17.04 Mn TEUs (2012) and 16.18 Mn TEUs (2011)

Jebel Ali, Dubai

13.64 Mn TEUs (2013); 13.30 Mn TEUs (2012) and 13.00 Mn TEUs (2011)

Tianjin, China

6.04 Mn TEUs (2013); 5.93 Mn TEUs (2012) and 5.73 Mn TEUs (2011)

Qingdao, China

13.01 Mn TEUs (2013); 12.30 Mn TEUs (2012) and 11.59 Mn TEUs (2011)

Port Kelang, Malaysia

10.35 Mn TEUs (2013); 10.00 Mn TEUs (2012) and 9.60 Mn TEUs (2011)

Jawaharlal Nehru Port ,India

4.12 Mn TEUs (2013); 4.26 Mn TEUs (2012) and 4.32 Mn TEUs (2011)

Source: The Journal of Commerce (JOC) annual top 50 World Container Ports, Lloyd's List annual Top 100 Ports, AAPA World Port Rankings and individual port websites.

TEXT: CHARCHIT SINGH /GRAPHIC: NAGENDER DUBEY

Ningbo-Zhoushan, China

22.35 Mn TEUs(2013); 23.12 Mn TEUs (2012) and 24.38 Mn TEUs (2011)

COLUMN

Coo... Chugh, chugh! Ramesh Kumar

At a time when there is a lot of muck-raking between car carrier fleet owners and auto OEMs over freight fixation, the APL Vascor rake movement comes as a relief to finished vehicle movement honchos like Hyundai’s Venkateswaran. The movement of finished automotive vehicles on rail is nothing new 26

Moving finished vehicles from the factory to the furthest corners of the country is presently being done by road carriers. However, now that trial runs on rail have proved to be largely successful, the time is not far off, writes Ramesh Kumar, when railways will be responsible for transporting cars.

yundai Motors’ Anand Venkateswaran has nothing but gushing words to describe his rail logistics experience. “Incredible” is the single word that pops out the moment I pose the question. All said and done, rail logistics in the automotive segment has begun to gain momentum. Recently, Hyundai dispatched a few hundred cars on APL Vascor-owned rake — for the first time — from Chennai to Gurgaon. The icing on the cake is that the rake carried not only Hyundai vehicles but also those from Ford and Nissan-Renault — operating out of Tamil Nadu in the vicinity of the South Korean giant. An apt example of collaborative logistics with the added dimension of American-French/Japanese-South Korean jugaal bandi! At a time when there is a lot of muck-raking between car carrier fleet owners and auto OEMs over freight fixation, the APL Vascor rake movement comes as a relief to finished vehicle movement honchos like Hyundai’s Venkateswaran. The movement of finished automotive vehicles (read passenger cars) on rail is nothing new. Hyundai is utilising this

November 2014 I Cargo & Logistics

route to push its wares to the North-east using the services of Indian Railway’s own rake and handled by TCI Supply Chain Solutions for long. Against the 13-14 days long road trip, rail cuts this to less than a week. A big boon, indeed. Similarly, the latest APL Vascor trial run completed the journey in less than four days as against six days by road. Maruti Suzuki, the country’s numero Uno passenger vehicle maker, has also inducted its own, but captive, rakes for movement of its wares from Gurgaon/Manesar plants to its Regional Stock Yard at Bengaluru early this year. The shift, however small in volume, is discernible. Not that road movement will be eliminated totally. That prospect is next to impossible given several infrastructural challenges on the rail side. After years of verbose, the much-talked about Automotive Freight Train Operator (AFTO) has gained traction with Maruti Suzuki and APL Vascor jumping into the fray by bagging a licence to begin operations. That’s for starters. Both run a rake each of late. APL Vascor is yet to announce official launch, though trial runs are on.

COLUMN

Achal Paliwal, a veteran logistician in the automotive segment, is credited with the view that railways is the best option because strategically today finished vehicle movement is 100 per cent dependent on road. Given the road conditions and environment impact of carbon emissions, a viabile alternative is needed. Across the globe, usage of rail for moving market ready cars is 40 per cent whereas in India, its share is in single digits: six per cent. By 2020 when the passenger car projection will touch five million, there is a thought process that at least 25 per cent of that production should move on rail. What about freight rates? As far as Maruti Suzuki is concerned, it is for captive consumption and also a strategic move to dent car carriers’ fleet availability to its rivals in the south. So, it is not unduly perturbed by the cost of operation. On the other hand, APL Vascor, trying to capture the market as much as possible by taking advantage of the first mover tag, is walking carefully on freight. Auto OEMs are unlikely to pay anything extra over and above what they have been dishing out to car carriers on road. Yes, it is a tough proposition for APL Vascor, given the huge operational cost and heavy investment in building rakes on Indian Railways track for a fee. There is a strong belief that eventually everything will be seen through the prism of supply chain management and not just transportation. Overall cost effectiveness will be the determining factor. While auto OEMs are hedging their risk (vis-a-vis road), economies of scale for rail rake operators will kick in sooner rather than later since the rail freight carrier capacity is at least

70 per cent higher than conventional carriers at present deployed. Higher carrying capacity is bound to result in lower per unit cost. Switching over from road to rail is not going to be a cakewalk because of quality concerns. Road movement entails loading and unloading where damage to market-ready vehicles might happen. However, in the rail movement this risk multiplies because of multiple handling: first and last mile. Nonetheless, rail movement reduces en route risks. Unlike the existing rail wagons — modified after being junked for passenger usage — the new ones to be made by Kolkata-based Texmaco (for APL Vascor) and Titagarh Wagons (for Maruti Suzuki) are modelled on a new design approved by Ministry of Railways’ own design unit that may be less prone to handling damages. Whatever quality concerns OEMs had in rail rake’s multiple handling seems to have evaporated. Venkateswaran once again is appreciative of terminal handlings at both ends. That should be sweet music for APL Vascor and for many auto OEMs too since their perceived fears are melting away fast. Will rail eat drastically into road movement? No way. Not for next 20 years. (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

Whatever quality concerns OEMs had in rail rake’s multiple handling seems to have evaporated. Venkateswaran once again is appreciative of terminal handlings at both ends. That should be sweet music for APL Vascor and for many auto OEMs too since their perceived fears are melting away fast.

Cargo & Logistics I November 2014

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Body buildersâ&#x20AC;&#x2122; Achilles Heel

To the uninitiated, dimensional challenges may present a uniquely different meaning but car carrier body fabricators and transporters in India have been finding this gradually becoming their Achilles Heel, over a few years now. With no law specifying vehicle dimensions, all involved, with OEMs probably as an exception, are crying their hearts out. Consulting Editor Ramesh Kumar and Sarada Vishnubhatla criss-crossed the country to take a deeper look at the vulnerable spot of the brawny industry to file this exclusive report

MAASARDACARGOPACKERS.IN

HEAVY LIFT: A car being loaded onto a car carrier vehicle.

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TOUGH BODY: Building the body of a car carrier requires expertise

en do not cry. Especially, those who are tough body builders! But then these are body builders of a different genre. They build car carrier vehicle bodies which haul brand new cars from their points of origin to the consumers across the length and breadth of the country. And these veteran businessmen are habituated to make ruthless decisions while on their toes when the situation demands. Though, ground reality presented a completely different picture at Tippers and Trailers Pvt. Ltd’s factory in Attibele, Hosur, Karnataka, a car carrier body builder. The salt-and-pepper haired Ashok Hissaria was unhappy if not downright depressed, “Why are the vehicles getting longer and longer, higher and higher? Who is benefitting? Is it the transporter or the car manufacturer? I am a fabricator and cost is a concern between transporter and car manufacturer. How am I involved in the freight structure? Nowhere. But transporters are not speaking. Competition is so tough, they are cutting each other. They are also working at a huge loss. The situation is more than depressing.” His lament clearly highlighted the reality of dwindling number of orders for making new car carrier bodies. This, coming from one of the only two top fabricators in India – both approved by major OEMs – is understandable. The oth-

er one, Seamless Autotech Pvt. Ltd’s owner, Gurpreet Ahluwalia, is just about holding on with the skin of his teeth, and it shows, “In the last three months only the scenario has become just a little better. We have increased our workforce a little recently. But margins are small. It is becoming very difficult. We can only hope that soon the OEMs will expand their market so that the situation becomes a little better.” Both Hissaria and Ahluwalia desperately wish for an upward curve to kick in sooner rather than later. Naturally, all eyes are trained on the OEMs for helping the industry and the Union Surface Transport Ministry to decide and specify vehicle dimensions in the near future. Anand Venkateshwaran, Senior General Manager (Logistics), Hyundai Motor India explains, “Dimensions are not being made clear. Car carriers per se have not been defined in any of the laws. And this kind of animated suspension on the dimension has prevented the industry in building adequate number of car carriers over the last few years. This has also been aggravated because the industry was going through a slowdown in the last two years where the volume was not jumping beyond 2.5 million and has remained the same for passenger vehicles. So, that is another reason where logistics service providers were also confused whether to add capacity and if they added capacity whether the idling times would increase at the OEMs

and so on.” Amit Kundanmal of Jaipur-headquartered KM Trans Logistics Pvt. Ltd. reiterates the lack of a rule specifying vehicle dimensions besides adding another crucial issue — that of freight structure. “While there is no clear law with regards to size of the trailer till now, the freight structure is not according to the current cost as in industry freight for any station is decided as per the nearest loading station located but we are unable to get the same load from there and most of the trailers have to do empty run for new loadings.” The unresolved question, giving sleepless nights to the fabricators, though remains – should the vehicle be 18.75 meters or 22.75 metres? Rajender Singh, Chairman of Chennai-based Janata Roadways, raised a pertinent issue, “When the dimension of the car sizes increased, instead of correcting the freight, our people started extending the size of the vehicle. As a big brother, OEMs’ duty was to cut short that practice — they should not have allowed it. I can share with you an example of a company that was following the 18-meter vehicle rule and they had a good fleet. But when the cost increased, they came to a suicidal point and they were not left with any option. There was no buyer for small vehicle, and there was no OEM listening to one or two people. Moreover, when one finds out that his standardized vehicle, without extra length or extra load, has to pay

Cargo & Logistics I November 2014

the same charges as the one with the overload at the check post, where will that man go. This will go on unless the government starts implementing the rules, it will be very difficult to bring back the improvement and growth in the industry.” More than this, however, what is bothering the car carrier body fabricators is the age of the car carriers that are plying and shifting cargo. Hissaria confided, “Who cares? Toyota — they were very firm on 18 meters. Earlier, they wanted only 22.5. Even, Maruti was very firm about 18.75 but they are again on 22.5 meters and they are inducting old vehicles also now. Transporters — they are one step ahead, they get old vehicles registered from Nagaland with new numbers. Besides this we are paying excise, we have definitely `1 lakh VAT addition. We will be always higher than the local manufacturer who does not have any registration. One fine day what will happen to quality? It will take a hit. When I started, in 1999, the car carrier business, the side sheet was of 1.2 mm thickness, now it is 1 mm. So, overall weight of the vehicle was 13 tonnes and now it is 10.5 tonnes. The trailer part that time I was selling at `8 lakhs, now also I am selling at `8 lakhs. Steel prices have gone up from `25-26 to `50. Earlier margins were there but today we are at loss.” Safety, quality, maintenance and taking responsibility are the key issues for a healthy body building exercise in this industry but of late all these are being compromised. Roadside fabricators charge less but they do not fulfill quality, safety and measurement standards that are pivotal for the safety of the vehicle and the expensive cargo. Hissaria sounded angry, “The transporter does not ask us to compromise the quality standards, but we will have to do it. So, first and foremost what gets hit is the axle for which low quality material is used. It is already like that in the industry.” He continued, “Once the vehicle leaves our premises, the transporter does not give it another coat of paint till the vehicle is ready to be scrapped. If they were to paint the vehicles every two years, their spending will be merely `20, 000 but the vehicle will have better longevity and it will be good to look at also on the road. It will serve you for at least 6 -7 years without giving you any trouble or get damaged.” Seamless’s Ahluwalia agreed, “They

November 2014 I Cargo & Logistics

AGARWAL PACKES & MOVERS

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want the weight of the vehicle to be reduced and it’s a fact that the prices are not viable for the transporters. So, if they opt for better steel, the weight of the vehicle may go down but the cost will go up, so that also is not a solution.” It is upto the OEMs to help out the logistics involved in this. Hyundai’s Venkateshwaran felt, “As a manufacturer certainly we don’t want to compromise on safety. Today the roads carry more than 95-96 per cent of the passenger vehicles that are transported in the country. So, if there is an added cost to it because of improvement in technology it would be definitely worthwhile. We would require vehicles which are certainly built by reputed bodies and instead of a closed design, an open or netted design is better, where something like a sieve or very light material is used instead of ‘loha’ with side curtains. A netted design on both sides and on the top also if required, makes the vehicle

much lighter and more fuel efficient because fuel cost contributes to about 50 per cent of the total owning and operating cost of the car carrier.” The Janata Roadways honcho offered the larger picture, “Everyone wants bigger business, larger number of cars but OEMs decide the rates themselves. In 1984 when the car carrier concept came into the car industry, they knew beforehand that it is going by their power. Maruti brought in the change in 1984 and in 1991 when they introduced trailers they followed specific recommendations from the Ministry and the authorities.” So, why not now again? Maruti Suzuki Limited inducted seven transporters and about 2800 new trailers in the market in 2006. And after this very few trailers came into the market. Technically, the expiry date of these trailers is March 2015, according to KM Translogistics. But for that to happen, the pre-requisite is, said Ahluwalia, “Length and width regulations

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need to be sorted out. If it happens then the model dimensions will be fixed and we can then make the bodies and keep them in stock as well which will in turn ease up deliveries.” OEMs feel the current body builders are not offering innovations and intelligent modifications that could bring the vehicles up to a respectable standard. Venkateshwaran said, “An area where the car carriers are defective as they have poor sideward — we have seen these vehicles tilting on their side and falling resulting in a total loss of all the cars that are transported and the reason is because the centre of gravity of these vehicles is very high and because of that the stability is very low and it is easily pushed to one of its sides.” Earlier the average life of a trailer was 10-12 years which has now decreased to 5-7 years. This coupled with reduced freight rates by OEMs have made it unviable for transporters and hence trailers are drastically being phased out. In a bid to cut down his losses in body building, Hissaria has decided to move slightly away from his core competency of body building to providing roofing solutions to warehouses and make heavy industrial components using his existing fabricating infrastructure. He sounds wistful when talking about his first love: body building, “Ultimately the small players will die and multinationals will take over; they will rule their price, car manufacturers will pay all the foreigners… some Japanese may come, some European companies may come… everybody will have to work under them.” As per market research, car manufacturing is all set to increase from 2 million to 4 million per year in the next 2-3 years. If transporters do not induct new trailers, then OEMs will have a tough time on their hands to transport their precious cargo. KM Translogistics compared the cost-freight ratio for the years 2004 and 2014 and found that freight had actually reduced drastically over time. Their reasoning is fair, “Why will anyone get into transportation business if there is no growth? Or, why will any transporter induct new trailers if the business is not profitable? It is exactly for this reason that many transporters have either shut their companies or merged with others.” The root of the freight problem lay in

Tie-up for car transportation T

hird party logistics (3PL) service provider Mahindra Logistics (MLL), a subsidiary of Mahindra & Mahindra has entered into a partnership agreement with Mumbai-based Indian Vehicle Carriers (IVC), and has named the new entity as 2X2 Logistics. The aim of this partnership is to offer original equipment manufacturers global standards of service and technology. Mahindra Logistics will have a majority stake in 2X2 Logistics, the new entity, which will initially invest in 100 specially designed car carriers to serve automobile and two-wheeler OEMs (Original Equipment Manufacturers). This partnership will allow MLL and IVC to further develop and expand their transportation networks, linking the North, West, South and East clusters of production and consumption of automobiles. “This is the first time we will be significantly assetising our business by investing in 100 car carriers to begin with, and then ramping up capacity. It will help strengthen our operating capabilities in automotive logistics, our largest target industry vertical, with a clear focus on technology, quality and corporate governance. Forming such partnerships with our business associates will be an important part of our growth and success,” said Pirojshaw Sarkari, Chief Executive Officer, Ma-

mismatched demand and supply among south, west, east and north clusters of OEMs with the major production happening in the North and the South. Hence, when catering to the other two extremities of the country, the transporters have been forced to run empty backhauls leading to major losses. Each OEM has a different freight based on the length of their product rather than the weight of the product. The only possible solution could be standardising per car tonne kilometer rate which will not be impacted by the size or the weight of the car. This will also allow the freight earning to the trans-

hindra Logistics. “As OEMs expand their product lines in India, we see a significant potential for car carriers which are specially designed to meet a variety of needs, both in terms of dimensions of the vehicles being carried as well as special handling requirements. We will have a very specific focus on design innovation in car carriers in 2x2 Logistics. We are already one of the largest automotive logistics service providers in India, and this joint venture will allow us to directly operate assets and serve our customers with a greater degree of predictability and control,” said Sushil Rathi, Senior Vice-President, Mahindra Logistics. Commenting on the deal, Indian Vehicle Carriers Founder and Owner KS Singhal said, “This new entity will have all the capabilities to become a one stop solution for outbound logistics. We hope to leverage each other’s strengths and offer the highest level of quality and service to our customers.” MLL is aggressively looking forward in expanding its business. In August this year the company acquired a majority stake in Lords Freight (India) soon after the private equity firm Kedaara Capital bought a significant minority stake for `200 crore in the logistics company.

porter to be decided in advance. Arriving at a solution will not be easy. The Surface Transport Ministry has its work cut out to bring some semblance of order so that all involved get to play and earn fairly. Ultimately, whether it is an OEM, a body builder or a transporter, none of them can go out on a limb and make a living because of their natural interdependency. The sooner all concerned come together to work out a solution, the better for the industry as a whole. This genre of body building, much like the sport of body building, cannot afford to be only brawns and no brains.

Cargo & Logistics I November 2014

NEWS IN BRIEF

AIR  Jet Airways bans shark fins as cargo Jet Airways has instituted a policy against the shipment of shark fins, join-

ing a growing number of major international carriers committed to protecting the declining shark population and marine ecosystems. Humane Society International/India, which along with animal welfare and conservation groups had petitioned Jet Airways to end its role in the international trade in shark fins, applauded the policy. By instituting this ban against the carriage of shark fins, Jet Airways has joined the growing league of environmentally conscious airlines such as Emirates, Philippines Airlines, Korean Airlines, Asiana Airlines, Qantas and Air New Zealand, all of whom have made a public commitment to stop carrying shark fins. In June 2014, Etihad Airways, which holds a 24 per cent minority stake in Jet Airways, had also announced its decision to ban shark as well as live primate shipment. In a statement responding to the appeal from HSI/India, Jet Airways said, “After concluding a comprehensive and careful review including concerns related to shark finning globally, Jet Airways Cargo implemented a ban on the carriage of shark fin. This policy was made effective.” Chemudupati Samyukta, wildlife campaign manager for HSI/India, said: “As top predators, sharks are important to the survival and maintenance of healthy marine ecosystems. We are thrilled that Jet Airways has taken this environmentally responsible decision. We are certain that it shall go a long way in the ongoing efforts around the globe to protect these keystone species.”

November 2014 I Cargo & Logistics

Kempegowda Airport is now e-freight compliant

angalore International Airport Limited (BIAL) which operates Kempegowda International Airport in Bengaluru said that the airport had been rated as an ‘e-freight compliant’ airport by the International Air Transport Association (IATA) for its cargo operations. By implementing e-freight, BIAL had brought down the use of paper documents in its cargo operations. With this, the airport has become the first in the country to be declared as IATA e-freight compliant with the operationalisation and implementation of the e-freight process. BIAL said that the project was an industry-wide initiative. It involved carriers, freight forwarders, ground handlers, shippers and Customs authorities

to effectively streamline processes, cut costs and improve speed and reliability. A few key benefits of the implementation of the e-freight project were: improved process efficiency, higher productivity, better quality and reliability, improved cost savings and environment-friendly. By implementing e-freight international standards, Kempegowda International Airport, Bengaluru will benefit the industry by eliminating the use of paper in the air cargo supply chain, it added. Earlier, Cathay Pacific Airways and Dragonair were the official participating carriers during the validation exercise carried out by IATA to certify Kempegowda International Airport as an e-freight compliant airport.

Emirates starts sevice to Budapest

mirates SkyCargo has strengthened its operations in central Europe with the recent launch of cargo services to Budapest. The capital of Hungary has one of the largest economies in Central and Eastern Europe and became the latest trade lane in Emirates SkyCargo’s extensive worldwide network of more than 140 destinations. Emirates’ daily flight to the city is operated with a widebody Airbus A330-200 and offers 168 tonnes of cargo capacity per week. On its first flight into the country, Emirates SkyCargo mainly carried consolidated cargo from the Far East and points in India, including a

shipment of pharmaceuticals from Hyderabad. “Budapest has an excellent geographic location and is a gateway to other central and eastern European logistics centres. The launch of a daily flight to Budapest will give us an expanded footprint in central Europe, and will complement our cargo services into Warsaw, Prague and Vienna. Trucking services can also feed offline markets in the region through Budapest, and onto our flight to Dubai, for further distribution across our network,” said Robert Siegel, Emirates Vice President, Cargo Commercial, Europe and Russia.

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FedEx expands ‘International First’ service

edEx Express is broadening the FedEx ‘International First’ early delivery service which allows a solution for global customers who need their critical deliveries to arrive as early as the start of the next business day. This expansion brings the total number of origin markets to 97, and means that customers can now use FedEx International First to ship packages to and from any of the existing International First destination markets. Depending on origin and destination, FedEx International First shipments arrive within one to three business days, often at the start of the business day. The service is

most often used for business documents, electronic and high tech equipment, medical devices, clinical trials and gear for the entertainment industry—shipments that require delivery on a tight deadline. “This latest ‘International First’ expansion highlights the FedEx commitment to serve our customers who need to ship critical, time-sensitive material. The expansion also aligns with our global growth strategy, and the need to stay ahead of customer demand,” said Raj Subramaniam, Executive Vice President, Global Strategy, Communications and Marketing, FedEx Services.

Cathay adds Phnom Penh

athay Pacific Airways has announced the launch of a new freighter service to Phnom Penh, the capital city of Cambodia, starting November 23, 2014. The scheduled service will operate twice a week on a Hong Kong-Singapore-Penang-Phnom Penh-Hong Kong routing and will further strengthen the airline’s presence within the Asia Pacific region, offering customers greater choice and flexibility when moving goods between Cambodia and other parts of the world. Cathay Pacific’s Director Cargo James

Woodrow said: “We are delighted to strengthen our already extensive network in Asia by operating scheduled freighter services to Cambodia for the first time. This new service to Phnom Penh will boost the flow of garments and other manufactured products out of Cambodia, taking advantage of our world-class facilities in Hong Kong to connect to our comprehensive cargo network.” Cathay Pacific currently operates cargo services to 45 freighter destinations around the world, including a new service to Calgary launched in October. Dragonair, the sister airline of Cathay Pacific, has been operating passenger services between Hong Kong and Phnom Penh since 1993.

AIR  CEVA TO OPERATE GULFSTREAM’S PARTS CENTRE Gulfstream Aerospace Corporation has appointed CEVA Logistics to operate a new European Parts Distribution Centre at London Heathrow Airport. The new facility will support Gulfstream customers in the UK, Ireland, mainland Europe and the Nordics with urgent high-usage items. It will also provide rapid-response support for technicians from Gulfstream’s service centre at London Luton Airport and Gulfstream Field and Airborne Support Team (FAST) members based throughout Europe. The facility replaces a previous operation at Madrid Airport. Its new location at London Heathrow provides access to the largest number of direct, non-stop flights available from any airport in Europe; this means Gulfstream will be able to quickly deliver parts and materials to customers. Since 2008, Gulfstream’s European fleet has almost doubled, from 109 aircraft to more than 200.

DHL EXPANDS IN ASIA DHL recently announced the launch of a new intra-Asia flight, connecting the economies of Thailand, Vietnam and Hong Kong, as the latest enhancement to its Asia air network. The flight commenced on November 3, connecting Bangkok, Hanoi and Hong Kong five times per week. Utilising a newly converted Boeing B737-400SF freighter featuring a gross payload of 21 tons, the route will be operated by K-Mile Air of Thailand, a partner of DHL. An industry first, the new route shortens the transit time for intra-Asia shipments to and from Hanoi to one day, allowing businesses and consumers to enjoy earliest arrival time and latest departure time to and out of the city, respectively. Its introduction also eases congestion faced by DHL’s bustling hub in Hong Kong. This new intra-Asia flight is DHL’s response to the increased trade opportunities within Asia and its commitment to support customers tapping on these opportunities, company said in a statement.

Cargo & Logistics I November 2014

NEWS IN BRIEF

SHIPPING AND PORTS  NEW SHIP-TO-SHORE CRANE FOR JN PORT

Jawaharlal Nehru Port (JN Port) is eyeing significant development and is all set to improve efficiency and productivity as it received first of three shipto-shore cranes from Pipavav (where it was assembled). The crane was moved by Super Freight. Two more similar cranes are set to arrive soon having a height about 115 metres and weighing around 1,500 tonnes. The movement of the crane from Pipavav to JN Port was carefully planned by Super Freight. Founded in January 2000, Super Freight is a privately owned international freight and project forwarder.

KPL PAYS `96 CR DIVIDEND Kamarajar Port Limited (KPL) has declared a dividend of `96 crore (32 per cent on paid-up equity) for the financial year ended March 31, 2014, as against `60 crore in 2012-13, an official statement informed. Of the total amount, the government received `64 crore, while rest of `32 crore was given to Chennai Port Trust (ChPT). Kamarajar Port is the only port in the country regularly paying dividend since 2008-09. This was the sixth such payment by the corporatised facility, the statement highlighted. KPL reported a pre-tax profit of `400.19 crore and post-tax profit of `316.31 crore during the period under review, as against `216.74 crore and `173.37 crore, respectively, in the previous fiscal.

ADANI PORTS PROFIT UP IN Q2 Adani Ports and Special Economic

November 2014 I Cargo & Logistics

Cargo traffic up 4.6 per cent at major ports

ompared with the previous year’s volume, 12 major ports handled 336.04 MT of cargo from April to October 2014 against 321.13 MT in the previous year, registering an increase of 4.64 per cent. Except New Mangalore Port Trust and Haldia Dock Complex, all the major seaports in the country registered a positive growth in traffic volume. Mormugao Port led the pack with 20.46 per cent growth, followed by Kamarajar Port (16.08 per cent). Kandla Port handled 54.70 MT of cargo, followed by Paradip (41.40 MT), JNPT (37.52 MT), Mumbai (35.28 MT) and Visakhapatnam (34.27 MT). New Mangalore and Haldia

Dock volumes came down due to a dip in Port of Loading (POL) and iron ore. Chennai Port handled huge volume of iron ore, fertilizers, break bulk and containers. But it fell short of last year’s volume in POL, thus leading to a marginal growth of 2.84 per cent over the corresponding period last year. The country as a whole recorded a 24 per cent dip in iron ore volume and 2.77 per cent in coking coal. There was no change in petroleum, oil and lubricant traffic at 109.85 million tonnes (MT). Major gainers were raw fertilizers and other cargoes.

Chabahar port expansion in 18 months

ndia plans to develop Iran’s Chabahar Port in about 18 months and use it for import commodities like urea. Road Transport and Shipping Minister Nitin Gadkari said, “We are setting up a port in Chabahar, Iran. We will complete the port in about one-and-a-half years.” India can import crude oil and urea using the port, thus saving on the transport cost. Gadkari said that “If we produce urea there then we can get urea at 50 per cent lesser cost and would not need to provide subsidy on it.” A formal agreement for the development of the port will be signed shortly

and India plans to lease two berths at Chabahar for 10 years. The port will be developed through a special purpose vehicle (SPV) which will invest $85.21 million a year to convert the berths into a container terminal and a multi-purpose cargo terminal. The port of Chabahar is situated in the south of Sistan and Baluchistan Province. Because of its establishments and ease of access to the ocean as well as Oman Sea and Persian Gulf, long ago it was the centre of business, trade and navigation.

NEWS IN BRIEF

MPT to expand cargo business

oa based Mormugao Port Trust (MPT) is now focusing on diversification of cargo as export of iron ore is becoming uncertain. MPT officials recently submitted an expansion plan to Union Road Transport and Highways Minister Nitin Gadkari during his visit to the port town. “We need to increase the capacity of the port. Almost 80 per cent of the cargo

movement from this port was dependent on iron ore export but it does not exist now,” Gadkari said after signing tri-party agreement over construction of a road linking the MPT to nearby Verna industrial estate. MPT has already given the expansion plan which would be referred to international consultants, before giving green signal to go ahead with the project, he added. The Union ministry has suggested that a draft of the port up to 20 meters be dredged so that ships up to 2 lakh tons weight can be anchored. This would cost `500 crore and will be a PPP project. Gadkari said that the proposal (for dredging work) has already been submitted to the Ministry of Environment and Forest for clearance.

NMPT starts coastal cargo operations to Lakshadweep

SHIPPING AND PORTS  Zone Limited (APSEZ), reported 68 per cent jump in consolidated net profit at `574 crore for the second quarter ended September 30, 2014 against `342 crore in the same period last year. Consolidated total income stood at `1,865 crore during the second quarter against `1,407 crore in the corresponding quarter previous year, the company informed in a statement. For the halfyear period, the company’s consolidated net profit increased 50 per cent to `1,142 crore from `759 crore in the corresponding period previous year. Total income for the period stood at `3,296 crore, up 11 per cent, against `2,975 crore in the corresponding quarter previous year, it added. The company handled 35.18 million tonnes of cargo during the second quarter, which is an increase of 25 per cent over the corresponding quarter last year.

KOLLAM PORT GOES HI-TECH The Kollam cargo port is all set to start operations from an Electronic Data Inter-

he New Mangalore Port Trust (NMPT) handled the first coastal cargo to Minicoy Island in Lakshadweep on October 30 following directions from the Ministry of Shipping to give priority to coastal shipping. M.V. PFS Prosperity left for Lakshadweep with a load of building material, including steel, sand and crushed stones. MK Shipping was the stevedore and C&F agent for the first shipment. The exporter of the entire consignment was Export Marine Services, Mangalore.

The Ministry of Shipping has issued new guidelines under which ports will have to give priority berthing to dry bulk and general cargo coastal vessels, irrespective of the origin and final destination of the cargo, with the aim of saving on fuel costs, decongesting road and rail, and promoting water transport. Accordingly, all 12 major ports have been directed to earmark exclusive berths and green channel for coastal cargo to promote the sector.

change (EDI) environment. Formalities for the same have been completed and the codes will be soon allocated. This will result in opening of a full-fledged office at the port by Customs Department. The EDI facility was one of the main demands of the cashew processors at Kollam for enabling direct import of raw cashew and export of kernels. Annually, about six lakh tonnes of raw cashew reach Kollam and about 70,000 tonnes of kernels are exported from here. With the EDI facility, both import and export can be done easily from the Kollam port.

Cargo & Logistics I November 2014

NEWS IN BRIEF

LAND  APOLLO FIEGE AND FERRARI FORM JV

Road Transport & Railway Ministries sign MoU

Apollo Fiege, a joint venture between Apollo LogiSolutions India and FIEGE Logistics, Germany, has formed a joint venture with the Ferrari Group for end

NO BARRIERS: The Union Minister for Railways, Suresh Prabhu and the Union Minister for Road Transport & Highways, Shipping, Nitin Gadkari at the MoU signing ceremony.. The Minister of State for Railways, Manoj Sinha, the Minister of State for Road Transport & Highways and Shipping, P. Radhakrishnan, the Chairman, Railway Board, Arunendra Kumar and other dignitaries are also seen

to end logistic solutions in the diamonds, gems and jewellery sector plus other luxury verticals. The joint venture partners have committed to invest $10 million over the next two years in this joint venture. On its part, AF Ferrari will offer integrated and one-stop-shop logistics solutions in the field of secure transportation, domestic and international multi modal transportation, exhibition support, bespoke and tailor made and consultations, warehousing and contract logistics and signature services like precious metals, diamonds and gems, high-technology components and luxury products including art. The joint venture company will operate across India through its offices across Delhi, Mumbai, Gurgaon, Jaipur, Surat, Hyderabad, Chennai, Bangalore and Kolkata.

CONCOR TO PICK UP STAKE IN ASRL Container Corporation of India (CONCOR) has decided to invest `156 crore to pick up 26 per cent stake in Angul-Sukinda Railway Ltd (ASRL), a special purpose vehicle (SPV) formed to implement the key rail link project in Odisha. The Angul-Sukinda new rail line, expected to be completed by June 2018, is being constructed under public-private partnership (PPP) model for providing

November 2014 I Cargo & Logistics

he Ministry of Road Transport and Highways has inked a memorandum of understanding (MoU) with the Ministry of Railways to facilitate speedy clearance of rail over and under bridges (ROB/RUB) along national highway corridors within a period of two months, vastly reducing the

time taken for the same. The MoU would enable single-window clearances with railways having developed a web-based platform for online submission of applications and drawings related to ROBs/RUBs. The Minister of Road Transport and Highways, Nitin Gadkari, said, “It is the result

Logistics park unaffected by Hudhud

yclone Hudhud roared across India’s eastern seaboard leaving widespread damage to the coastal states of Andhra Pradesh and Odisha. The busy port city of Visakhapatnam, known locally as Vizag, was hammered by the storm. The ongoing Multi Modal Logistics Park (MMLP), the first phase of which was inaugurated in May this year, suffered an estimated loss of about `10 lakh due to Hudhud, but by and large the work on the project has remained largely unaffected and it is progressing smoothly, said Gouri Sankar, General Manager, Container Corporation of India (Concor). “The MMLP, the first of its kind in Andhra Pradesh being estab-

NEWS IN BRIEF

of a collective spirit and integrated effort, paving the way for more inter-ministerial cooperation in future. This MoU will be a milestone in timely replacing of all level crossings on NH corridors by ROBs/ RUBs,” the Minister added. In his address, the Minister of Railways, Suresh Prabhu, said, “This MoU has been an excellent innovative idea which will go a long way in effectively resolving all the interface issues related to the construction of ROB/RUB on National Highway corridors.” Both the Ministries agreed that there would be coordination between the two and any charges for supervision, maintenance, departmental charges or land lease charges would not be levied from each other. It has also been decided in the MoU that the Ministry of Road Transport and Highways shall construct ROB/RUB (including railway bridge portion) on NH corridors on single entity basis at its own cost. Web-based programmes, developed by the Ministry of Railways, for speedy clearance of various projects of road over/ under bridges and track crossings were also launched on the occasion

lished by the Concor, is being built on a 100-acre site opposite the Visakhapatnam airport over a period of two years at an estimated cost of `370 crore. In the first phase, a 5,075 sq. m. warehouse and an administrative building have been constructed. The gales have damaged about 1,000 sq. m. of the 5,075 sq.m. Warehouse and this is minimal considering the 180-200 km/ph strong winds during the cyclone. As many as 40 of the 88 polycarborate sheets (which allow natural light into the main shed, and about 1,000 sq.m. of bare galvalume sheets have been damaged and need replacement,” he added. The Concor container freight station (CFS) at the port area has suffered a loss of `37 lakh due to Hudhud.

New train to carry automobiles

LAND 

an alternative rail link to the Angul-based steel plants with the Keonjhar-Bansapani iron ore belt and Talcher coalfields to Kalinga Nagar industrial belt. The other stakeholders in ASRL are Rail Vikas Nigam Ltd, the Odisha government, Odisha Mining Corporation, JSPL and IDCO. New export container train service: CONCOR has introduced export con-

train specially designed to carry automobiles, called AutoLinxSM was recently flagged off by the Former Union Railway Minister, D V Sadananda Gowda. The train, launched at Melpakkam near Chennai, has been developed by the Delhi-based APL Logistics Vascor Automotive, a joint venture between APL Logistics and Vascor. Its trial run had commenced in September and was completed in October. The trial run was focused on the service corridor between Chennai and New Delhi, and involved the handling, movement and delivery of more than 1,100 finished vehicles, according to a release. AutoLinxSM left Melpakkam with around 280 finished vehicles and reached CONCOR’s multimodal logistics park at Khatuwas near New Delhi.

Snowman Logistics net profit rises

nowman Logistics Ltd (SLL), temperature controlled logistics service provider, reported a net profit of `2.29 crore for the quarter ended September 30, 2014. During the quarter, sales increased to `48.27 crore. Its warehouse capacity reached 79,500 pallets as compared to 53,130 pallets (YOY) during the period. Higher capital investment has resulted in increased depreciation and interest cost compared to previous quarter and the added capacity would result in higher occupancy in the coming quarters and with the repayment of loans the interest cost will reduce. The company provides warehousing, distribution, transportation and value added services and it currently has a warehousing capacity of 79,500 pallets spread across 27 warehouses and 15 locations.

tainer train service from ICD-Tondiarpet (TNPM) to Chennai Port. The first train, laden with 50 export cargo containers from the Chennai area, left the ICD on November 3, 2014 and reached Chennai Port in a short time of 7 hours. The launch of this service will benefit the trade in the form of reduced transit time and safe transport of containers to Chennai Port. As many as 90 TEUs can be moved in one go on a single train, a release highlighted.

LEVIS IN DHL MULTI-CLIENT SITE AT BENGALURU Contract logistics provider DHL Supply Chain recently announced that Levi Strauss India, an apparel brand, has moved into its new, multi-client site spread across 136,000 sq. ft in Attibele, South Bengaluru. This facility has an expansion option and will be increased by a further 110,000 sq. ft in 2015, to meet the needs of a strong customer pipeline. at Levis is the first customers to take advantage of this modern facility. The new site, which went live in July 2014, is part of the euro 100 million that DHL Supply Chain had previously pledged to invest in India. This facility will meet the growing customer demands of various sectors from this region by driving value and providing a competitive advantage to them.

Cargo & Logistics I November 2014

NEWS IN BRIEF

INFRASTRUCTURE  AP TO DEVELOP 10 MORE PORTS Andhra Pradesh government is working on taking advantage of his state’s long coastline by making it a port hub and a gateway into India. The state government is planning to develop ten additional ports to augment the four existing ones, according to Chief Minister Chandrababu Naidu who was speaking at the India Economic Summit in New Delhi. According to the CM, public private partnership (PPP) method is being deployed to develop the infrastructure in his state. Naidu further said that he had a unique challenge of building a new state as well as a new state capital city. Naidu also said that he will be setting up five grids in the areas of water, roads, power, gas and fibre optic networks. “All of these missions and grids were designed to interconnect the state and bring the benefits of reforms to rural areas,” Naidu added.

34 HIGHWAY PROJECTS UP FOR REVIVAL Ministry of Highways’ latest presentation on infrastructure targets to the Prime Minister Narendra Modi contains a total of 34 projects worth more than `26,000 crore for the revival. The said projects, spanning over 4,084 km, are being restructured or converted from public-private partnership (PPP) to engineering, procurement and construction (EPC) mode to get them going. Five of these have been handed over to the concerned state governments while another 18 will be awarded in EPC mode. “The Ministry can sanction projects up to `1,000 crore in EPC mode without the Cabinet approval. The strategy now is to divide projects into smaller parcels wherever possible and speed up the execution,” said a senior official of the National Highways Authority of India (NHAI).

November 2014 I Cargo & Logistics

Gadkari urges states’ co-operation

nion Minister for Shipthe state government to ping Surface Transport come forward and solve and Highways Nitin Gadkari these problems affecting asked the Tamil Nadu Govmajor infrastructure projernment to cooperate more ects. If the state governwith central agencies to rement assures to cooperate solve problems of land acand solve land acquisition quisition and take up major and encroachment issues, Nitin Gdkari infrastructure projects in the then more projects could state. Referring to the stuck be executed,” said Gadkari Chennai Port to Maduravoyal elevated while attending a function organised by corridor project, Gadkari added that two the Madras Chamber of Commerce and major infrastructure projects were pendIndustry. ing before the Supreme Court. The corriPointing out that congestion on acdor was expected to play a major role in cess routes is a major issue, the Minister ensuring better connectivity for transsaid it was difficult to maintain a busy porting goods to the port until the state port in the middle of a city. He mooted objected to the project and took the matthe possibility of identifying adequate ter to court. land in areas with proper road and rail “I would like to publicly appeal to access to set up a dry port.

JBS Academy conducts training in Customs

BS Academy, logistics training provider with a focus on Shipping; Freight Forwarding; Customs; Air Cargo recently conducted a “One Day Comprehensive Programme on Customs Clearance at Inland Container Depot’s (ICD) and Ports” in Ahmedabad. The programme was attended by 60 persons from Exporters / Importers / Customs Brokers / Freight Forwarders / Shipping Companies / Transporters and Custodians. The full day interactive programme was conducted by Samir J Shah, Chief Mentor and Director of the

Academy. JBS Academy has its Certificate and Diploma Programmes certified by NCVT – National Council of Vocational Training and GCVT – Gujarat Council of Vocational Training. It has till date trained over 2500 persons in EXIM Logistics.

Sumeet Nadkar passes away Sumeet Nadkar, CEO & MD at Kale Logistics Solutions, passed away on November 2, 2014. An irreplaceable loss for the logistics industry, he always led his team forward and was their strength. A guiding light, Nadkar had taken proactive steps towards management of key strategic areas and provided the leadership for incubating and growing the business areas in Logistics. He had a strong systems orientation and he had conceptualized, led and executed the strategy to venture into the Logistics IT space during his stint as the SBU Head at Kale Consultants Limited. Under his leadership, Kale Logistics boasted of a rich portfolio of industry-wide IT solutions. A Chartered Accountant by profession, he also had experience spanning a wide range of activities related to the Capital Markets from IPOs, Investor Relations, etc. C & L joins everyone in the logistics industry to mourn the loss.

STATS

TRAFFIC PORTS TRAFFICHANDLED HANDLEDAT AT MAJOR MAJOR PORTS (DURING APRIL TO OCTOBER, 2014* VIS-A-VIS APRIL TO OCTOBER, 2013)

(*) TENTATIVE

(IN ' 000 TONNES)

PORTS

APRIL TO OCTOBER

% VARIATION

TRAFFIC

AGAINST PREV.

2014* 2

1 KOLKATA Kolkata Dock System

2013 3

YEAR TRAFFIC 4

7828

7205

8.65

Haldia Dock Complex

16477

16896

TOTAL: KOLKATA

24305

24101

-2.48 0.85

PARADIP

41404

38735

6.89

VISAKHAPATNAM

34263

33213

3.16

KAMARAJAR (ENNORE)

17170

14791

16.08

CHENNAI

31168

30307

2.84

V.O. CHIDAMBARANAR

18299

16673

9.75

COCHIN

12845

12641

1.61

NEW MANGALORE

21436

22246

-3.64

7660

6359

20.46

MUMBAI

35278

32975

6.98

JNPT

37518

35626

5.31

KANDLA

54695

53462

2.31

336041

321129

4.64

MORMUGAO

TOTAL:

Source:INDIAN PORTS ASSOCIATION

Cargo and Logistics

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STATS

INDIAN PORTS ASSOCIATION

TRAFFIC HANDLED AT MAJOR PORTS TRAFFIC HANDLED AT MAJOR PORTS

DURING APRIL VIS-A-VIS APRIL TO OCTOBER’2013 (DURING APRILTO TO OCTOBER’2014* OCTOBER'2014* VIS-A-VIS APRIL TO OCTOBER'2013) (*)

TENTATIVE

PORT

(IN '000 TONNES) TRAFFIC PERIOD

P.O.L.

IRON ORE

FERTILIZER FIN. RAW

COAL CONTAINER THERMAL COKING TONNAGE TEUs

OTHER CARGO

TOTAL

% VAR. AGAINST 2013-14

KOLKATA TRF APRIL-OCT.'2014

327

4631

301

2687

7828

TRF APRIL-OCT.'2013

372

207

4250

272

2275

7205

TRF APRIL-OCT.'2014

3288

1107

153

292

689

3021

1083

6844

16477

TRF APRIL-OCT.'2013

3438

1283

137

198

931

3110

1305

6494

16896

TRF APRIL-OCT.'2014

3615

1157

208

354

689

3037

5714

366

9531

24305

TRF APRIL-OCT.'2013

3810

1380

141

198

931

3317

5555

340

8769

24101

TRF APRIL-OCT.'2014

10388

1162

2573

16637

4668

5892

41404

TRF APRIL-OCT.'2013

10655

2887

2024

14621

3695

4738

38735

TRF APRIL-OCT.'2014

8601

5628

1089

455

1359

2889

2690

151 11552

34263

TRF APRIL-OCT.'2013

8147

7052

1257

459

1668

3959

2889

152

7782

33213

KAMARAJAR(ENNORE) TRF APRIL-OCT.'2014

1800

13693

212

1465

17170

TRF APRIL-OCT.'2013

1155

12047

240

1349

14791

TRF APRIL-OCT.'2014

7392

149

237

17791

922

5505

31168

TRF APRIL-OCT.'2013

7945

167

16984

880

5114

30307

V.O.CHIDAMBARANAR TRF APRIL-OCT.'2014

376

316

586

4720

6262

320

6039

18299

TRF APRIL-OCT.'2013

305

271

420

4116

5787

291

5774

16673

TRF APRIL-OCT.'2014

8345

229

3140

216

979

12845

TRF APRIL-OCT.'2013

8838

2875

210

795

12641

TRF APRIL-OCT.'2014

12970

1229

353

1493

3560

552

1242

21436

TRF APRIL-OCT.'2013

14110

1513

336

1715

3017

419

1086

22246

TRF APRIL-OCT.'2014

343

278

609

3731

142

2459

7660

TRF APRIL-OCT.'2013

317

4322

128

1523

6359

TRF APRIL-OCT.'2014

21008

110

182

2343

321

28 11314

35278

TRF APRIL-OCT.'2013

20452

2278

244

9858

32975

TRF APRIL-OCT.'2014

2323

33612

2601

1583

37518

TRF APRIL-OCT.'2013

2845

31257

2371

1524

35626

TRF APRIL-OCT.'2014

32691

549

2129

522

5593

132

- 13079

54695

TRF APRIL-OCT.'2013

31278

455

1910

568

4701

199

452

29 13899

53462

TRF APRIL-OCT.'2014 109852 10097

4557

5175

47234

18229

70257

4658 70640 336041

TRF APRIL-OCT.'2013 109857 13314

4236

4054

42077

18749

66631

4340 62211 321129

7.58

27.65

12.26

-2.77

5.44

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

0.00 -24.16

7.34

13.55

8.65

-2.48

0.85

6.89

3.16

16.08

2.84

9.75

1.61

-3.64

20.46

6.98

5.31

2.31

4.64

Source:INDIAN PORTS ASSOCIATION

November 2014 I Cargo & Logistics

STATS

INTERNATIONAL FREIGHT INTERNATIONAL PASSENGERS

ANNEXURE-IIIA

PASSENGERS (IN NOS.) For the period April - September % % 2014-15 2013-14 Change Change

For the month SL. NO. SEPTEMBER SEPTEMBER 2014 2013 (A) 18 INTERNATIONAL AIRPORTS AIRPORT

CHENNAI

359906

357851

0.6

2351200

2284434

KOLKATA

155911

136433

14.3

869372

819106

6.1

AHMEDABAD

87845

73020

20.3

541814

459272

18.0

GOA

16449

15377

7.0

154515

134025

15.3

TRIVANDRUM

165070

154864

6.6

1065509

988139

7.8

CALICUT

179081

168178

6.5

1128414

1118482

0.9

2.9

LUCKNOW

41227

43022

-4.2

218045

216347

0.8

GUWAHATI

4440

4576

-3.0

13588

13346

1.8

8683

-100.0

8683

-100.0

27160

22149

22.6

162261

123142

31.8

36925

38616

-4.4

240305

210599

14.1

SRINAGAR

JAIPUR

BHUBANESWAR

MANGALORE

COIMBATORE

8617

8216

4.9

61774

60556

2.0

AMRITSAR

26508

20838

27.2

166085

140564

18.2

TRICHY

82667

71071

16.3

529209

416645

27.0

8346

9190

-9.2

15544

34815

-55.4

0 1200152

0 1132084

0 7517635

0 7028155

VARANASI

PORTBLAIR

IMPHAL

TOTAL

6.0

7.0

(B) 6 JV INTERNATIONAL AIRPORTS 19

DELHI (DIAL)

MUMBAI (MIAL)

1077571

991307

8.7

6409196

5985932

7.1

851502

765531

11.2

5503311

5028576

9.4

BANGALORE (BIAL)

225239

197570

14.0

1418214

1304957

8.7

HYDERABAD (GHIAL)

221445

187088

18.4

1342943

1210708

10.9

COCHIN(CIAL)

301618

266916

13.0

1895462

1656785

14.4

NAGPUR (MIPL)

TOTAL

2683

2656

1.0

20529

19075

7.6

2680058

2411068

11.2

16589655

15206033

9.1

PUNE

9049

5619

61.0

59576

34570

72.3

VISAKHAPATNAM

3520

4711

-25.3

29487

39488

-25.3

PATNA

CHANDIGARH

BAGDOGRA

MADURAI

GAYA

TOTAL (D) 17 DOMESTIC AIRPORTS (E) OTHER AIRPORTS GRAND TOTAL (A+B+C+D+E)

5551

2587

114.6

22477

21650

3.8

17376

8843

96.5

91834

48308

90.1

7145

5434

31.5

9958

10534

-5.5

42641

27194

56.8

213332

154550

38.0

7009

8190

7009

8190

-100.0

-86.3

3929860

3578582

9.8

24327644

22397023

8.6

Source: AIRPORTS AUTHORITY OF INDIA

Cargo & Logistics I November 2014

STATS

DOMESTIC FREIGHT DOMESTIC PASSENGERS For the month SL. NO. SEPTEMBER SEPTEMBER 2014 2013 (A) 18 INTERNATIONAL AIRPORTS 1 CHENNAI 841070 668006 2 KOLKATA 749570 566515 3 AHMEDABAD 313978 251520 4 GOA 317752 233497 5 TRIVANDRUM 95293 80437 6 CALICUT 26212 25906 7 LUCKNOW 159816 129023 8 GUWAHATI 181766 146452 9 SRINAGAR* 216071 141433 10 JAIPUR 133617 126713 11 BHUBANESWAR 104032 95501 12 MANGALORE 71729 59972 13 COIMBATORE 115093 92902 14 AMRITSAR 63965 50099 15 TRICHY 8207 10444 16 VARANASI 71607 46280 17 PORTBLAIR 57484 47385 18 IMPHAL 51663 47863 TOTAL 3578925 2819948 (B) 6 JV INTERNATIONAL AIRPORTS 19 DELHI (DIAL) 2191205 1745344 20 MUMBAI (MIAL) 2030720 1656203 21 BANGALORE (BIAL) 1093279 756524 22 HYDERABAD (GHIAL) 657544 477732 23 COCHIN(CIAL) 246949 173191 24 NAGPUR (MIPL) 111115 87915 TOTAL 6330812 4896909 (C) 7 CUSTOM AIRPORTS 25 336625 272190 PUNE 26 91992 61844 VISAKHAPATNAM 27 91879 73190 PATNA 28 112833 83455 CHANDIGARH 29 78223 41499 BAGDOGRA 30 44456 39743 MADURAI 31 273 0 GAYA TOTAL 756281 571921 (D) 15 DOMESTIC AIRPORTS 32 114801 81275 INDORE 33 78106 54139 JAMMU 34 74342 61913 RAIPUR 35 71689 61385 AGARTALA 36 53150 48766 VADODARA 37 49319 37536 RANCHI 38 35972 33102 AURANGABAD 39 36764 31934 UDAIPUR 40 32383 32244 BHOPAL 41 38386 28259 LEH 42 29015 24133 DEHRADUN 43 26290 22454 RAJKOT 44 23669 20911 JODHPUR 45 18219 17197 TIRUPATHI 46 24241 17337 DIBRUGARH (D) 17 DOMESTIC AIRPORTS 706346 572585 (E) OTHER AIRPORTS 152837 156724 GRAND TOTAL (A+B+C+D+E) 11525201 9018087 *Estimated AIRPORT

November 2014 I Cargo & Logistics

ANNEXURE-IIIB

PASSENGERS (IN NOS.) For the period April - September % % 2014-15 2013-14 Change Change 25.9 32.3 24.8 36.1 18.5 1.2 23.9 24.1 52.8 5.4 8.9 19.6 23.9 27.7 -21.4 54.7 21.3 7.9 26.9

4691329 4281513 1759908 1703493 515660 152479 1013980 1070458 1416745 813277 641500 418857 637511 379954 41193 432480 352052 299610 20621999

4220512 4125769 1737501 1405780 497852 150369 918287 1075499 1127405 791429 687178 440591 583085 305408 58653 310203 333938 324146 19093605

11.2 3.8 1.3 21.2 3.6 1.4 10.4 -0.5 25.7 2.8 -6.6 -4.9 9.3 24.4 -29.8 39.4 5.4 -7.6 8.0

25.5 22.6 44.5 37.6 42.6 26.4 29.3

13408716 11780062 5867031 3630369 1229483 658464 36574125

11973563 10736774 5099315 3136613 1028490 635005 32609760

12.0 9.7 15.1 15.7 19.5 3.7 12.2

23.7 48.7 25.5 35.2 88.5 11.9 32.2

1943236 530573 593868 618276 517483 260395 3853 4467684

1773562 465112 512360 557130 313244 264654 294 3886356

9.6 14.1 15.9 11.0 65.2 -1.6 1210.5 15.0

41.3 44.3 20.1 16.8 9.0 31.4 8.7 15.1 0.4 35.8 20.2 17.1 13.2 5.9 39.8 23.4 -2.5 27.8

628658 456057 444928 426662 358811 281256 234085 206599 186637 266316 185947 149453 141073 111169 156886 4234537 982546 66880891

544287 418634 423837 409737 322475 240070 214257 180413 244418 207955 145684 141507 132320 133228 120578 3879400 999890 60469011

15.5 8.9 5.0 4.1 11.3 17.2 9.3 14.5 -23.6 28.1 27.6 5.6 6.6 -16.6 30.1 9.2 -1.7 10.6

Source: AIRPORTS AUTHORITY OF INDIA

STATS

INTERNATIONAL & DOMESTIC FREIGHT PASSENGERS (INT'L+DOM.) For the month SL. NO. SEPTEMBER SEPTEMBER 2014 2013 (A) 18 INTERNATIONAL AIRPORTS 1 CHENNAI 1200976 1025857 2 KOLKATA 905481 702948 3 AHMEDABAD 401823 324540 4 GOA 334201 248874 5 TRIVANDRUM 260363 235301 6 CALICUT 205293 194084 7 LUCKNOW 201043 172045 8 GUWAHATI 186206 151028 9 SRINAGAR 216071 150116 10 JAIPUR 160777 148862 11 BHUBANESWAR 104032 95501 12 MANGALORE 108654 98588 13 COIMBATORE 123710 101118 14 AMRITSAR 90473 70937 15 TRICHY 90874 81515 16 VARANASI 79953 55470 17 PORTBLAIR 57484 47385 18 IMPHAL 51663 47863 TOTAL 4779077 3952032 (B) 6 JV INTERNATIONAL AIRPORTS 19 DELHI (DIAL) 3268776 2736651 20 MUMBAI (MIAL) 2882222 2421734 21 BANGALORE (BIAL) 1318518 954094 22 HYDERABAD (GHIAL) 878989 664820 23 COCHIN(CIAL) 548567 440107 24 NAGPUR (MIPL) 113798 90571 TOTAL 9010870 7307977 (C) 7 CUSTOM AIRPORTS 25 PUNE 345674 277809 26 VISAKHAPATNAM 95512 66555 27 PATNA 91879 73190 28 CHANDIGARH 112833 83455 29 BAGDOGRA 83774 44086 30 MADURAI 61832 48586 31 GAYA 7418 5434 TOTAL 798922 599115 (D) 15 DOMESTIC AIRPORTS 32 INDORE 116665 81275 33 JAMMU 78106 54139 34 RAIPUR 74342 61913 35 AGARTALA 71689 61385 36 VADODARA 53150 48766 37 RANCHI 52133 40809 38 AURANGABAD 38303 36131 39 UDAIPUR 36764 31934 40 BHOPAL 32383 34132 41 LEH 38386 28259 42 DEHRADUN 29015 24133 43 RAJKOT 26290 22454 44 JODHPUR 23669 20911 45 TIRUPATHI 18219 17197 46 DIBRUGARH 24241 17337 (D) 17 DOMESTIC AIRPORTS 713355 580775 (E) OTHER AIRPORTS 152837 156770 GRAND TOTAL (A+B+C+D+E) 15455061 12596669 AIRPORT

NOTE:

ANNEXURE-IIIC

PASSENGERS (IN NOS.) For the period April - September % % 2014-15 2013-14 Change Change 17.1 28.8 23.8 34.3 10.7 5.8 16.9 23.3 43.9 8.0 8.9 10.2 22.3 27.5 11.5 44.1 21.3 7.9 20.9

7042529 5150885 2301722 1858008 1581169 1280893 1232025 1084046 1416745 975538 641500 659162 699285 546039 570402 448024 352052 299610 28139634

6504946 4944875 2196773 1539805 1485991 1268851 1134634 1088845 1136088 914571 687178 651190 643641 445972 475298 345018 333938 324146 26121760

8.3 4.2 4.8 20.7 6.4 0.9 8.6 -0.4 24.7 6.7 -6.6 1.2 8.6 22.4 20.0 29.9 5.4 -7.6 7.7

19.4 19.0 38.2 32.2 24.6 25.6 23.3

19817912 17283373 7285245 4973312 3124945 678993 53163780

17959495 15765350 6404272 4347321 2685275 654080 47815793

10.3 9.6 13.8 14.4 16.4 3.8 11.2

24.4 43.5 25.5 35.2 90.0 27.3 36.5 33.4

2002812 560060 593868 618276 539960 352229 13811 4681016

1808132 504600 512360 557130 334894 312962 10828 4040906

10.8 11.0 15.9 11.0 61.2 12.5 27.5 15.8

43.5 44.3 20.1 16.8 9.0 27.7 6.0 15.1 -5.1 35.8 20.2 17.1 13.2 5.9 39.8 22.8 -2.5 22.7

630522 456057 444928 426662 358811 284070 236416 206599 186637 266316 185947 149453 141073 111169 156886 4241546 982559 91208535

544287 418634 423837 409737 322475 243343 217286 180413 246306 207955 145684 141507 132320 133228 120578 3887590 999985 82866034

15.8 8.9 5.0 4.1 11.3 16.7 8.8 14.5 -24.2 28.1 27.6 5.6 6.6 -16.6 30.1 9.1 -1.7 10.1

Biju Patnaik Airport, Bhubaneswar, Odisha and Imphal Airport, Manipur airports declared as International airports vide Notification No.AV.20014/003/98-VB(AAI) dated 14th November, 2013 by Ministry of Civil Aviation, Government of India.

Source: AIRPORTS AUTHORITY OF INDIA

November 2014 I Cargo & Logistics

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WOMEN IN CARGO

‘Unpredictable…enough to keep the adrenalin pumping’ That’s Vandana Singh, Regional Commercial Director, Asia Pacific Region, ECS Group, for you. Her ambition was to become a jet fighter pilot and her father Brigadier S.L Kapur would have actually put her in the Indian Air Force but those were the Nineties and women were not allowed near fighter jets. That rejection sent her to cargo… Cargo is essentially a male-dominated industry. How did you find yourself in it? As Donovan Bailey once said, “Follow your passion, be prepared to work hard and sacrifice and above all, don’t let anyone limit your dreams”. Aviation and Cargo: They have always been my passion, and once a person decides to reach out for her passion, it never really is difficult to find your way in. Cargo is essentially a male dominated industry but these days the changing status in society is a subject with increasing importance and attention from one and all. Not just studies have shown but also reality has shown that women these days are able to achieve much superior financial growth in various industries particularly “Aviation and Hospitality”. As a woman, maybe somewhere along the road I did face troubles but as I said… when you work for what you love, you overcome all obstacles and, besides my male colleagues were very understanding and did support me to grow in this industry. How many years have you been with the cargo industry and how has the journey been this far? It’s been over 18+ years for me in this Industry. My journey so far has been explorative, challenging but fun. This industry has always managed to take out best in me and I have had the good fortune of working with incredibly smart people who have continued to motivate and support me through it all. Yes, with my background of 15 years with Lufthansa Cargo it’s been a disciplined run and a journey where on every turn, I have learnt something new and now with European Cargo Services which happens to be the largest Cargo GSA in the world with 140 airlines … an opportunity where I am actively networking and building on Relationship Management which is close to my heart.

November 2014 I Cargo & Logistics

How have your colleagues and those reporting to you reacted to you? Our whole life is about transfer of knowledge and working together. My colleagues and those who are reporting to me — since the day I have joined European Cargo Services and so to say throughout my path in this industry, have been very supportive and receptive. In essence, I have had the good fortune of receiving an exceedingly good response from everyone. I believe knowledge is a never-ending stream and unless you share and transfer you cannot receive, therefore lead as an example has always been my motto. Do you specialise in any section of the industry: e.g. handling of dangerous goods, etc.? My area of specialisation has been “Relationship Management” and Global Key Account Management successfully evolving into Business Partnership Programs. In my previous role, I became a pioneer of sorts with Consignee Sales Management and International Sales bringing about line optimisation and balance in Export-Import ratio on our flights… something which will live with me forever. What is so exciting about the cargo industry that keeps you attracted to it? Cargo is my passion so it will always be exciting for me. This passion has made me travel 90 per cent of the world. Learning never stops, the challenges never stop. In fact, they grow…more and more. Sometimes I feel as if I am working in a stock exchange… So unpredictable and enough to keep the excitement and adrenalin pumping. I feel as though the aircraft is my second home and when someone asks me, “Do you drive?” I say, “No… But, I can fly!” How confident are you about future growth on equal opportunity basis with male colleagues? Change is the essence of life and with this change comes the change of mindset. With changing times comes a fresh mindset that leads to awareness and openness leading to a better working environment. I feel that men these days are becoming more and more aware of a woman’s role in the working environment and are also consciously working at equal opportunity for all. As Susan Wojcicki remarked, “At the end of the day, both men and women who have become CEOs have showed tenacity and hard work to succeed in their careers. It takes not only skill but extreme dedication and commitment, and regardless of gender, CEOs are measured by the same criteria — the growth and success of business.”

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