Emagazine c&l sep oct 16

TIACA’S AIR CARGO FORUM TO FOCUS ON SIMPLIFYING AIR CARGO PROCESSES Volume V n No 6-7

C A R G O

SEPTEMBER-OCTOBER 2016 I `60

L O G I S T I C S

The Hanjin Aftermath The seventh-largest container shipping line, Hanjin Shipping’s collapse came as no surprise to NVOs but not to cargo owners

Rise in Japan-India traffic For JAL’s Toru Takeda, India has huge cargo potential

POP-up for cargo

Navdeep Singh Judge to cash in on Britain-India cargo traffic

MANAGING EDITOR’s NOTE

Shock tactics and lessons

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ow that we are in the midst of the Hanjin collapse aftershocks, it is time to take stock of the situation. The disruption of virtually an unknown number of global supply chains will not only raise prices but as an analyst pointed out that “the global implications from the bankruptcy are unknown: if, as expected, the company’s ships remain ‘frozen’ and inaccessible for weeks if not months, the impact on global supply chains will be devastating, potentially resulting in a cascading waterfall effect, whose impact on global economies could be severe as a result of the worldwide logistics chaos”. The analyst commented that now economists and corporations around the globe will once again find an excuse for the “unexpected” slowdown in both profits and economic growth in the third quarter.

Instead what happened was quite the opposite with retailers asking for a government bailout. Sandra Kennedy, President of the Retail Industry Leaders Association in the US, wrote in a letter to the Department of Commerce and the Federal Maritime Commission that while “the situation is still developing, the prospect of harm is significant and apparent”.

She also mentioned that Hanjin’s recent bankruptcy filing “presents an enormous challenge to US shippers” and “could have a substantial impact on consumers and the economy at large”.

While on one hand the retail body has rightly pointed out that the prospect of harm is significant and apparent with Hanjin containers clogging the supply chain, it is also true that the clogged ports and delays in delivery of containers would aggravate the problems for the likes of Wal Mart, Target, J.C. Penney and clothing retailers in the USA who are battling it out with the e-commerce segment. Worse hit will be the $25 billion US toy industry which makes half its annual sales in the coming holiday season.

Lars Jensen of Copenhagen-based SeaIntelligence Consulting has pointed out that in 2001, Cho Yang, a much small-

er Korean carrier, went down and “it took six months before a mere 200 containers, handled by a single freight forwarder, could be taken off to ports”. This time around the scale is way bigger and Jensen said he would not be surprised “if scores of boxes on stranded Hanjin vessels ever actually make it to their destination”.

So, what is the message? South Korea’s Hanjin Shipping Co was the world’s seventh largest container carrier and a unit of Hanjin Group, Korea’s 10th largest conglomerate that also controls Korean Air Lines. A government bailout, not only for Hanjin, but also for the second largest Korean carrier, Hyundai Merchant Marine (HMM), has been in the works for a long time. The belief in government circles was that a large carrier as big as Hanjin could not fail.

However, all that is changing. Today, the Korean government has taken a tough stand. When Hanjin filed for rehabilitation in Seoul after its creditors – the largest is the Korea Development Bank – could not let it bleed any more, the court has stepped in and asked Hanjin to ready a rehabilitation plan

by November 25. Industry watchers say that the time given was for liquidation and in fact, the Korean government has already asked HMM to buy Hanjin’s healthy assets. It knows who it wants to back.

Also important to note is that major carriers can also fail if they are subjected to long years of low rates and financial losses. From 2010 to the first-half of 2016, Hanjin’s operating losses amounted to approximately $580 million with most of the damage emanating from the container division. Since 2013, Drewry Financial Research Services had warned that Hanjin was dangerously leveraged and living on borrowed time. It is time the other carriers took note.

tghosh@newsline.in

Cargo & Logistics I September-October 2016

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

CONTENTS

C&L

VOLUME V n NO 6-7

Editor-in-Chief

K SRINIVASAN Managing Editor TIRTHANKAR GHOSH Consulting Editor RAMESH KUMAR

COVER STORY

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The world’s seventh largest container shipping company, South Korean Hanjin Shipping has gone bust sending the international shipping sector and global supply chains in a mess. As a result, sea freight rates have surged forcing exporters to pay more.

SPECIAL REPORT

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The International Air Cargo Association’s (TIACA) flagship biennial event at Paris in October will look at how the air cargo industry can aggressively work to advocate global standards for the growth of the air cargo industry.

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C&L SPECIAL

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With just seven flights a week out of Delhi directly to Narita, Japan Airlines has been able to fill 90 per cent of its belly capacity every month. This, given the fact that the air cargo business in the past 12 months has been an uphill climb with exports dwindling.

Correspondents NAVEED ANJUM, NAYANTARA SRINIVASAN Designer NAGENDER DUBEY Picture Editor PRADEEP CHANDRA Photo Editor HC TIWARI Staff Photographer HEMANT RAWAT

DHL Global Forwarding has been leveraging its infrastructure to build connectivity between China and regional countries as well as into Europe using road, rail and sea services as part of the Chinese trade initiative, ‘Belt and Road’, that will have a significant effect on a third of global GDP.

SPOTLIGHT

Sr. Proof Reader RAJESH VAID

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NEWS IN BRIEF

In Assam, the state government will construct a full-fledged cargo station near the LGBI airport even as the CCEA has approved three highway projects each in Maharashtra, Odisha and Punjab to be implemented at a cost of `5,965 crore.

Plus: The major ports in the country handled 107.52 Million Tonnes of cargo during April-May 2016.

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

+91-9810030533, 9810159332 Editorial & Marketing office: News Kingdom Media Pvt. Ltd., D-11, Nizamuddin East New Delhi –110 013, Tel: +91-11-41033381-82 All information in C&L is derived from sources we consider reliable. It is passed on to our readers without any responsibility on our part. Opinions/views expressed by third parties in abstract or in interviews are not necessarily shared by us. Material appearing in the magazine cannot be reproduced in whole or in part(s) without prior permission.

The publisher assumes no responsibility for material lost or damaged in transit. The publisher reserves the right to refuse, withdraw or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian Advertisements Code. The publisher will not be liable for any loss caused by any delay in publication, error or failure of advertisement to appear. Owned and published by K Srinivasan 4C Pocket- IV, Mayur Vihar Phase–I, Delhi–91 and printed by him at Archna Printers, 18, DSIDC Shed, Okhla Indl Area Ph-1, New Delhi -110020

Cover Design: Nagender Dubey

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September-October 2016 I Cargo & Logistics

JUST IN TIME

Low load factors but a slight rise in demand

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he International Air Transport Association (IATA) released data for global air freight markets in August 2016 showing that demand, measured in freight tonne kilometers (FTKs), rose 3.9 per cent yearon-year. Freight capacity measured in available freight tonne kilometers (AFTKs) increased by 4.1 per cent over the same period. Load factors remained historically low, keeping yields under pressure.

Industry conditions have improved since the particularly soft patch at the start of the year. Carriers in all regions except Latin America reported an increase in year-on-year demand in August. However, regional results varied considerably. For the third time in four months airlines based in Europe posted the highest collective annual growth of all regions, while airlines in the Middle East experienced their slowest growth in more than seven years.

“August numbers showed improvements in cargo demand. While this is good

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news, the underlying market conditions make it difficult to have long-term optimism. World trade volumes fell by 1.1 per cent in July with no improvement on the horizon. And the current global political rhetoric in much of the world is more focused on protectionism than trade promotion. Economies need to grow out of the current economic doldrums. Governments should be focused on promoting trade, not raising protectionist barriers,” said Alexandre de Juniac, IATA’s Director General and CEO. Asia-Pacific airlines reported a 2.8 per cent increase in demand for air cargo in August compared to last year. Capacity in the region expanded 1.2 per cent. International traffic within the region has been the strongest of the ‘big-four’ markets (Asia Pacific, Europe, North America, and Middle East) so far this year, with traffic up by 6.5 per cent year-on-year in July 2016.

North American carriers saw freight volumes expand 5.5 per cent in August

September-October 2016 I Cargo & Logistics

2016 year-on-year, and capacity increased by 3.7 per cent. International freight volumes grew by 4.6 per cent in August – the fastest pace since the US seaports disruption boosted demand earlier in 2015.

However, seasonally adjusted activity has barely altered from 2008 levels with the strength of the US dollar continuing to keep the US export market under pressure.

European airlines posted the largest increase in freight demand of all regions in August 2016 – 6.6 per cent year-on-year.

Capacity increased 4.7 per cent. The positive European performance corresponded with an increase in reported new export orders in Germany over the last few months.

European freight demand has now broken out of the corridor that it occupied between mid-2010 and the start of the year.

Middle Eastern carriers saw air freight demand slump to 1.8 per cent year-on-year in August 2016 – the slowest pace since July 2009. Capacity increased by 6.9 per cent. The strong upward trend seen in Mid-

JUST IN TIME

dle Eastern traffic over the past year or so has halted. In seasonally-adjusted terms, volumes in July 2016 were slightly below those seen in January 2016. The weakening performance is partly attributable to slower growth between the Middle East and Asia.

This suggests that Middle Eastern carriers are facing stiff competition from European airlines on the Europe-Asia route.

Latin American airlines saw demand contract in annual terms for the sixth consecutive month. FTKs in August 2016 fell by 3.3 per cent compared to the same period last year and capacity decreased by 0.2 per cent. The region continues to be blighted by weak economic and political conditions, particularly in the region’s largest economy, Brazil. African carriers saw demand rebound sharply in August to 3.7 per cent — the fastest growth rate in 12 months. Despite this, freight capacity continues to outstrip demand, due to rapid long-haul expansion. Capacity surged in August year-on-year by 29.2 per cent. The combination of rising capacity and modest growth has significantly affected the load factor of African airlines. In August 2016 it was almost six percentage points lower than a year ago and is around half the industry average.

Meanwhile, preliminary traffic figures for the month of August released by the Association of Asia Pacific Airlines (AAPA) showed a moderation in both international air cargo markets and air passenger demand.

Asia Pacific airlines saw international air cargo demand in August grow by 2.5 per cent in freight tonne kilometre (FTK) terms. The average international freight load factor edged marginally higher by 0.1 percentage points to 60.5 per cent in August, on a 2.3 per cent increase in offered freight capacity.

Commenting on the results, Andrew Herdman, AAPA Director General said global freight markets remained subdued, noting that “Asia Pacific airlines saw generally lacklustre international air cargo demand for the January-August period, registering a 0.7 per cent volume decline compared to the same period last year, although the shortfall has narrowed following a modest uptick in recent months.”

Looking ahead, Herdman concluded,

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“Asian economies are still growing, and lap? Could it be that longer-haul business demand for air travel has been boosted by had suddenly made relatively big strides? rising incomes and the widespread availWorldACD pointed out that it was ability of affordable airfares, but growth “intrigued”, so it took a closer look at the rates may moderate as oil prices have now subject. It said that reporting in kilograms stabilised, adding to competitive preswas the better indicator for knowing the sures. For the air cargo markets, the peramount of goods being transported by air, sistent weakness in global trade conditions on an aggregate level but also per indiremains a concern, with rates remaining vidual market (O&D). FTKs, on the other depressed despite the recent uptick in air hand, were the better indicator for knowing cargo activity.” the resultant of weight carried and distance Meanwhile, ACDWorld reported that flown. However, changes in FTKs were after a volume growth of 1.8 per cent yearin themselves a combination of two eleover-year (YoY) in July 2016, August saw ments: changes in volumes per O&D, but a slightly higher figure: +2.3 per cent. also changes in operational patterns. After While these figures still failed to impress, all, it makes a difference in FTKs whether they were certainly better than a carrier serves a market directly, those for the earlier months i.e. via the shortest possible of the year, according to route, or indirectly, e.g.

Industry WorldACD. via its hub. Thus, an inconditions have imIn another concrease in FTKs could proved since the particfirmation of recent be (partly) caused just ularly soft patch at the start trends, the worldwide by more indirect carof the year. Carriers in all USD-yield remained riers entering a given regions except Latin Ameristable; it was 0.5 per market. ca reported an increase in cent higher in AuIn other words, year-on-year demand gust than in July. Once neither FTKs nor kg-dain August. again, the origins Afrita, nor the combination of ca and Central and South the two, provide a clear anAmerica did not contribute to the swer to the question to what exoverall volume growth, but they managed tent an aggregated number of individual to keep their yields much closer to last markets may have experienced a shift from year’s levels than the other regions did. long(er) haul to short(er) haul. To find that The same was noticeable on some of the answer, WorldACD built an additional larger O&Ds (Origins and Destinations), measure, called DTKs (Direct Tonne Kiloin particular Japan to USA Midwest, Germeters). The DTK-measure combined kimany to the USA and Kenya to the Nethlograms with the shortest distance between erlands. Volume growth YoY was rather an O&D. Thus, it provided the informaevenly spread over the various product cattion being searched for, i.e. to what extent egories, the only exception being pharmamarkets were shifting from short haul to ceuticals which grew by about 10 per cent. long(er) haul or vice-versa Readers following the monthly reports In the July data from IATA and of both IATA and WorldACD, will have WorldACD, DTKs in July indeed showed wondered how the growth figures reported a much higher YoY growth (+3.4 per cent) for July, could have been so different from than the kilogram figures did (+1.8 per one another: 5 per cent vs 1.8 per cent. cent). These figures combined informed True, IATA reports in FTKs (Freight Tonne two things: they lent credibility to the fact Kilometers) and WorldACD in kilograms, that the July-data provided by IATA and but could that lead to such a big difference WorldACD were quite divergent. But they in growth, asked WorldACD. Could the also said that the exact size of the shift variation in outcome be caused by the fact towards long(er) distance markets: of the that WorldACD and IATA rely on differtotal DTK-growth of 3.4 per cent, only ent ‘carrier populations’ for the inputs into 1.8 per cent was due to weight growth, so their systems, even though a very large 1.6 per cent was caused by the change in part of the two populations actually overO&Ds reported.

September-October 2016 I Cargo & Logistics

nister

COVER STORY

1977: Hanjin Container Lines Ltd., (HJCL) founded by Chairman Choong Hoon Cho in Seoul, South Korea

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1986: Reefer Container Service launched

1988: HJCL merged with KSC and name changed to Hanjin Shipping Co., Ltd (HJS)

September-October 2016 I Cargo & Logistics

1990: Acquired “Hanjin Pittsburg” hot coil transporting dedicated vessel; Europe Regional HQ moved from London to Hamburg

1993: Awarded Lloyd’s Loading List’s Star Performer Award for reliability on Far East-Europe Trade

1995: Built global service network with opening of Transatlantic route Hanjin Group acquires Keoyang Shipping

COVER STORY

W The international shipping sector faces turbulence following the bankruptcy faced by the South Korean Hanjin Shipping, the world’s seventh largest container shipping company. Today, freight rates have surged forcing exporters to pay more.

Hanjin Shipping Head Office, Seoul, South Korea

1998: Formed United Alliance with DSR-Senator, Choyang Shipping and UASC

2003:Launched CKYH Alliance 2005: Hanjin Shipping listed on the Forbes List’s 400 Companies

2007: Built world’s largest vessel repair yard in Qushan Island, China

2014: Yang Ho Cho elected as a Chairman & CEO. Celebrated 37th anniversary and announced second leap of the pinnacle

hen the South Korean shipping line went bankrupt a month or so ago, it was unusual in the shipping industry. Analysis by Alphaliner indicates that the Hanjin collapse was the largest failure of a container shipping line: it is, in fact, six times the size of United States Lines – which operated a fleet of only 93,000 teu at its peak in comparison to Hanjin that was currently operating a total of 98 containerships at 609,500 teu — that went bankrupt in 1986.

First, the effects. As we go to press, there is turmoil all around the world’s ports. Even as some Hanjin vessels are being arrested or seized by the shipping line’s creditors, there are thousands of containers in transit. In fact, some Hanjin ships have anchored at sea and waiting till bankruptcy-protection measures are put in place in South Korea and other nations that would desist creditors from taking the ships over.

And, nearer home, Dubai’s Jebel Ali has not allowed Hanjin ships to berth at the port because the shipping line owes port dues amounting to millions of dollars. At some container terminals around the world, containers have been held up till cargo owners and freight forwarders paid up.

Meanwhile, moves have been taking place to ensure that the global supply chain

2016: Hanjin, Hapag-Lloyd, ‘K’ Line, Mitsui O.S.K. Lines, Nippon Yusen Kaisha and Yang Ming formed, “The Alliance”

2016: Hanjin filed for bankruptcy on August 31 at the Seoul Central District Court

Cargo & Logistics I September-October 2016

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COVER STORY

TOO LITTLE, TOO LATE: Suk Tai-Soo, President and Chief Executive Officer (right) of Hanjin Shipping Co, arriving at a court in Seoul, South Korea on August 31, 2016 to file for bankruptcy

was not broken due to the logjam created by the Hanjin containers. The European Shippers’ Council (ESC) made it clear that those terminals that had the Hanjin containers and were holding on to them because of the financial troubles would have to release them at the earliest “because the stationary containers now hinder the global flow of goods”, according to Lloyd’s Loading List.

The ESC also said it would work with the Global Shippers Alliance (GSA) to work out a solution.

Lloyd’s Loading List also quoted Fabien Becquelin, the ESC’s maritime policy manager, saying: “In our opinion, it is clear that the terminal operators must free as soon as possible the goods and allow delivery of all containers to avoid disruption in lo-

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gistic chain. Terminals that currently hold containers because of the financial troubles of container liner Hanjin Shipping, should release those containers immediately.

“We, along with GSA, call on terminals to do so because the stationary containers now hinder the global flow of goods.

The containers held by terminals worry businesses throughout the world, as they hamper trade flows between businesses and their global commercial partners. For example, businesses’ logistical planning will be complicated by unexpected delays, which will cause longer lead times.” Becquelin also mentioned that the GSA, which represented manufacturers, retailers and wholesalers from Asia, the European Union and the United States, had told terminals

September-October 2016 I Cargo & Logistics

holding Hanjin containers to release them quickly.

Chris Welsh, Secretary General of the Global Shippers Forum, was also quoted

by Lloyd’s Loading List as saying that “the precarious situation with Hanjin has been evident for some time. Our advice is that shippers that have cargo on Hanjin vessels or in their cargo take appropriate steps to recover their cargo. They should contact their insurers and in-house legal services or external specialist maritime lawyers to ensure they contact the receivers and to exercise their rights to recover the cargo and/ or make alternative on-ward shipment arrangements from the port where the cargo is discharged.” He also said that the shippers needed to contact their customers and consider alternative arrangements “to fulfill their commitments to their customers under their sales contacts”.

Perhaps, the worst hit will be US businesses and consumers who depend on a wide range of imported products ranging from furniture and clothing to fresh fruit and frozen meat. Many shipping lines have already announced a rise in container freight rates by as much as 50 per cent even as retailers prepared for the peak year-end holiday season.

In India, the first real concerns were expressed by seafood exporters who were genuinely worried about their cargo and in what state the shipments would reach customers. India exports `30,000 crore of marine products annually to the US, South East Asia and Europe. These shipments were supposed to reach stores in time for

COVER STORY

the Christmas-New Year shopping season.

Economic Times reported that shrimps sent out from Kochi for Vietnam were stuck at Port Klang in Malaysia. Now, the exporter would have to “destuff the cargo and stuff it in a fresh container”, all at his expense and send it to the destination. In addition to these problems, there is another looming on the horizon: the shortage of containers. The Hanjin crisis has occurred at a time when the seafood exporters in India have been struggling to meet demand with low volumes and recessionary trends.

While some shipping pundits have pointed out that the Hanjin collapse would not affect the international shipping industry, containership owner Seaspan Corporation’s Chief Executive Gerry Wang has said it was a “huge nuclear bomb” and it would have a far-reaching impact on the shipping industry. Speaking to Bloomberg’s Trending Business, Wang said Hanjin’s end was “like Lehman Bros” had been to the financial markets in 2008. He went on to say, “You are talking about $120bn worth of goods on ships that are stuck… there is a material impact to the supply chain and people are suffering from the consequences.”

At the time of going to press, Seaspan which has a fleet of around 100 ships on long-term charter to many of the world’s biggest ocean carriers, has three 10,000 teu ships on 10-year fixed rate charter parties to Hanjin, which at the end of last month was $18.6m in payment arrears. Hanjin Buddha is in the Mediterranean, unable to transit the Suez Canal, due to unpaid toll fees; Hanjin Namu, is off the coast of Japan, unable to

THE HANJIN EFFECT IN NUMBERS •

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• •

•

•

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$14 bn: Estimated value of cargo on as Hanjin ships idling around ports.

400,000: Approximate number of containers stranded on Hanjin ships.

8,300: Estimated number of cargo owners involved. $38 mn: Value of goods, mostly TVs and appliances, that Samsung Electronics alone has said it has aboard two Hanjin ships.

141: Number of ships Hanjin has (97 container ships, 44 bulk carriers). More than half are blocked from docking, and four have been seized as of September 11, 2016. $226 mn: Hanjin’s operating loss in April-June, on revenue of $1.3 bn. $5.5 bn: Hanjin’s debts as of end-June. $293 mn: Hanjin’s market value — down by around a third in the last few weeks before going to press.

7.8 per cent: The trans-Pacific trade volume for the US market carried by Hanjin.

(Source: Hanjin Shipping, Korea Shipowners’ Association, Thomson Reuters Eikon data)

discharge its cargo; and Hanjin Tabul is off Jeddah, also unable to enter port. Wang also said that South Korea would recover from the Hanjin collapse and since the Korean economy was heavily dependent on exports, the government would try its best to come up with a national carrier status.

The Hanjin collapse has not yet seen a major shift by forwarders to air freight although it is early days but it must be remembered that August to November are peak months for exporters from Asia to the West. The first signs of the shift, however, have been reported. According to reports, there has been a small rise in volumes in air freight from Korea to the US. Also, according to AirBridgeCargo Airlines, there have been enquiries for full charter enquiries.

Top forwarders like DB Schenker and Panalpina were of the view that it was too early to say whether shipments would be sent out by air. Lufthansa Cargo went on record to point out that the Hanjin crisis had yet to see a boost to air freight.

Whatever the outcome, it is now generally believed that cargo owners were largely responsible for the Hanjin debacle.

According to SeaIntel, cargo owners would have to take the responsibility for forcing low rates that in turn has sent carriers into losses. SeaIntel, in fact, has worked on a report on the Hanjin crisis and come to the conclusion that shippers with cargo in the Hanjin-linked supply chains should question themselves about the situation they are facing today. According to the analyst quoted by SeaIntel, “If we are being objective about this, the shippers are not without their part in creating this situation..It is of course impossible to see a situation where you can both have a stable supply chain and at the same time ensure that the providers of said supply chain are loss making. We are aware this might be a controversial point of view seen from shipper side, and we are not ‘blaming’ them alone – it takes two to tango.”

The analyst went on to say that it was often that carriers resorted to price wars, and it is these carriers that offered lower rates.

But a situation could not exist where one side was gaining because of the low prices and the other was losing heavily. Such a situation could not be viable in the long term.

Cargo & Logistics I September-October 2016

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SPECIAL REPORT

Close look at simplifying the air cargo processes The International Air Cargo Association’s (TIACA) flagship biennial event at Paris in October will look at how the air cargo industry can aggressively work on advocating global standards for the growth of the air cargo industry. up.

At ACF 2016, TIACA would focus on how to simplify the security processes by making sure that whatever information is being used is accurate and goes on time. Second, TIACA is looking at standardisation of security equipment to bring manufacturing and utilisation costs down. “eFreight is another important thing wherein we want to emphasise more on embracing technology to achieve speed. TIACA is driving in terms of Innovation, Process simplifi-

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he 2016 edition of Air Cargo Forum (ACF), The International Air Cargo Association’s (TIACA) flagship biennial event to be held from October 26 to 28 in Paris, will see more than 3,000 decision makers from across the globe, according to Sanjiv Edward, TIACA Chairman. The event will also have 150 exhibitors. Significantly, at this event Global Shippers’ Forum (GSF) will host a pavilion to benefit its members from access to TIACA’s one-to-one meeting scheduler, CargoLinX, to make the most of their time at the show. In addition, GSF will hold series of practical workshops as shippers from across the globe to take centrestage for the ACF speaker line

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September-October 2016 I Cargo & Logistics

cation and Technological enhancements,” Edward informed. In addition, the association is currently aggressively working on advocating global standards for the growth of the air cargo industry. One of the issues, for example, being Pre-Loading Advance Cargo Information (PLACI) on which TIACA is advocating global standards for both the Customs (data submission and processing) and Civil Aviation (shipment screening and mitigation) aspects.

Commenting on their activities in

SPECIAL REPORT

Doug Brittin to retire

oug Brittin, Secretary General since 2013, has advised the Board of Directors that he will retire at the end of this year. A selection committee, under the direction of Sebastiaan Scholte of Jan de Rijk Logistics has been estab-

lished and has commenced the process to review and recruit candidates.

Brittin will stay with TIACA in an advisory capacity once the new Secretary General has been appointed to ensure a smooth transition and to continue to support the TIACA Board. “TIACA is the only association representing the entire air cargo community and the role of Secretary General is a vital one,” said Brittin.

“I continue to be dedicated to attaining our goals on behalf of all segments of our industry, and am looking forward to a great ACF in Paris in October.”

TIACA Chairman Sanjiv Edward expressed his appreciation for the fine work Brittin has accomplished, and voiced his pleasure that he would be staying on in an advisory role to support the new Secretary General. “It is business as usual in the meantime and we are looking forward at the moment to an exciting ACF in October,” he said.

ACF, Chris Welsh, Secretary General, GSF said, “The GSF represents the inter-

ests of shippers globally and campaigns on the issues that most affect them. He also

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maintained that the GSF has taken the lead in air cargo industry cooperation and was a founder member of the Global Air Cargo Advisory Group (GACAG), established to enhance the air cargo product and to jointly campaign on key issues with regulators and key international organisations such as ICAO and WCO.” He went on to add that GSF greatly valued its cooperation with TIACA and the ACF was an ideal opportunity for its members to network with suppliers and peers, and take part in practical workshops which would help them run more efficient supply chains.

The three-day forum will also include discussions on e-business, multimodal challenges, and the cargo hub of the future, as well as practical workshops on the new EU Customs rules and the latest security regulations. “This year’s seminar and workshop series will tackle trends affecting our industry and give up-to-date information on regulations affecting us all,” said Doug Brittin, Secretary General, TIACA. He underlined that TIACA represented all sections of the air cargo supply chain and the ACF was a unique opportunity for logistics decision makers to find ways of moving cargo more efficiently, meet new suppliers, and network.

In this edition of ACF, TIACA would also introduce LEADS Summit: Leaders, Executive and Design Summit, which will be eventually institutionalised. It would be an opportunity to meet up with the TIACA Board, which is represented by Global Airports, Airlines, Freight Forwarders, Logistic Players, Industry Bodies such as Seoul-Incheon International Airport, Delhi International Airport, Panalpina, Agility, Fedex, DHL, World Cargo Association, Emirates, Chapman Freeborn, Jan de Rijk Logistics and Volga-Dnepr Airlines.

The next Air Cargo Forum – October 17-19, 2018 at the Metro Toronto Convention Center – will take place in Toronto, Canada, according to outgoing Secretary General Doug Brittin. “We are excited to be bringing the event back to North America for 2018,” he said. Toronto Pearson airport is rated in the top 30 hubs worldwide for cargo activity with 1.2m sq ft of on airport warehouse space and with an estimated 150 mn potential customers within a day’s truck drive.

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COLUMN

Leveraging Technology for Skill Development in Logistics Anand Trivedi

The role of technology in skilling in logistics has multi-dimensional value to the sector. It would be apt to look at the potential value it holds in broadly three aspects of skilling in the sector: pedagogical, outreach and exposure-related and, finally, administrative. The role of technology is critical to the extent of being irreplaceable

S

While skill development at large is observing technologies like haptics, simulators, etc. to improve the lab work experience while cutting down on material usage costs.

Pedagogically as well, smart classes and other innovative tools like K-Yan (Knowledge Yan) are adding that extra bit to the classroom experience by enabling better visualisation 16

killing in the sector of logistics mainly entails the understanding of the operational aspects of the sector combined with the procedural/compliance aspects and the getting a grasp of the larger implications of the services or the lack of it on the business outcomes of its customers. Fundamentally, it requires the macro as well as micro understanding and operational skill of managing three flows: material, finance and information. So, typically, unlike the core manufacturing skills where the breakup of classroom to lab time spend for a typical course is likely to be 70:30, in the sector of logistics, it would be about 55:45. Having said that, the port/ICD, etc. visits more than compensates for this by giving a real feel of the situation.

While skill development at large is observing technologies like haptics, simulators, etc. to improve the lab work experience while cutting down on material usage costs.

Pedagogically as well, smart classes and other innovative tools like K-Yan (Knowledge Yan) are adding that extra bit to the classroom experience by enabling better visualization – a key to quicker and clearer understanding. Administratively as well, use of institute-wide systems are reducing the overhead of managing an institute. At a macro level, the advent of LMIS (Labour Market Information System) with real time updates on skill demand, supply side aspirations as well as individual applicant-level tracking by connecting the employment exchanges, the industries as well as the training provid-

September-October 2016 I Cargo & Logistics

ers are bridging the information gaps between critical stakeholders in the skilling domain.

In this context, the role of technology in skilling in logistics has multi-dimensional value to the sector. It would be apt to look at the potential value it holds in broadly three aspects of skilling in the sector: pedagogical, outreach and exposure-related and, finally, administrative.

Consider the case of courses to do with training executives for CHAs (Custom House Agents)/freight forwarders/courier companies. Here, the roles for which training is provided can broadly be classified under two types: field-based and desk-based. So, in case of desk-based roles like import/export documentation executives, understanding of the letter of the law and its implementation through hands-on documentation are the two major components of their training. In such a scenario, IT, using interactive content delivery can really simplify the process of understanding the law. Having said that, animation-based IT enables case studies with students being asked to run through them individually on personal machines with individual level error scenario and training based on that can immensely speed up the process of building domain expertise. For field/floor-based roles like fork lift operators, etc. which require the use of tools, simulators would be the best way to enhance the training experience whereas for profiles like courier delivery executives, etc. tech-enabled role plays can go a long way in improving the soft skills to enhance customer experience. Soft skills across the sector is one

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thing which can be significantly enhanced by using audio-visual cases and role plays.

With respect to the Outreach and Exposure aspect, for example, 3D visualisations of a typical port followed by real port visit and thereafter videos of major ports and their operations across the world can simply expand the horizon of the student and sensitize her/him to the best practices of operations. And this can be done across the components enabling outreach and exposure. An institute-level interactive platform for industries to review incoming student profiles while providing inputs on TLM practices in the institute can go a long way to bridge the academia-industry divide.

Technology in general and IT in particular can best be leveraged to simplify the administrative challenges. We all know how ERP (Enterprise Resource Planning) equivalent web enabled institute wide IT platforms can optimize the tangible and intangible resources within the institute. However, now these systems are being broadened to include external stakeholders like industry experts, alumni, placement coordinators as well as recruiters to build integrated

and transparent mechanisms while transferring the growth ownership from one to many and thereby enabling a rapid scale up of the institutes in the skill development sector.

Putting all of these together, we can see how seamless the entire trainee-trainer-recruiter experience can become.

Hence, in the process of creating next generation skilled manpower for the logistics sector, the role of technology is critical to the extent of being irreplaceable. We might soon see a situation where a training provider in Mundra is training a port operations executive aspirant sitting in Ahmedabad with collaborative trainings being organised by trainers from Antwerp in Belgium and Dubai, UAE with latest technology enabled tools. Have we woken up to this possibility yet or do we choose to be forced by technology into it – is a matter of our choice!

(The writer is Advisor - JBS Academy Knowledge Centre)

With respect to the Outreach and Exposure aspect, for example, 3D visualisations of a typical port followed by real port visit and thereafter videos of major ports and their operations across the world can simply expand the horizon of the student and sensitize her/him to the best practices of operations. And this can be done across the components enabling outreach and exposure.

Cargo & Logistics I September-October 2016

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SPECIAL REPORT

A boost for the

‘Belt and Road’ initiative

DHL Global Forwarding has been leveraging its infrastructure to build connectivity between China and regional countries as well as into Europe using road, rail and sea services as part of the Chinese trade initiative, Belt and Road, that will have a significant effect on a third of global GDP. A report.

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HL Global Forwarding, International provider of air, sea and road freight services, continues to enhance its services which leverage infrastructure developed as part of “Belt and Road”, the Chinese trade initiative that could influence up to a third of global GDP once completed.

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“Global trade enables greater prosperity and a sustainable future with logistics as its backbone. Nowhere more than in Asia have we seen the tremendous transformation of the economies due to the growing middle class and their rising standards of living which fuels increased consumption and trade,” said Frank Appel, CEO, Deutsche

September-October 2016 I Cargo & Logistics

Post DHL Group. Appel was speaking in conjunction with DHL’s Delphi Dialog forum on the implications of “Belt and Road” for international trade. The forum, with renowned experts from the government, business and academia, is the latest in a series which examines trends and developments that shape our world and the logistics industry.

SPECIAL REPORT

Auckland facility to handle global trade growth D

HL Express recently opened an expanded Auckland Gateway at the airport to better support businesses operating in and out of New Zealand following significant growth in international trade. The new NZ$15.3 million (EUR9.9 mn) facility is part of the company’s global investments to bolster network connectivity and employs approximately 130 people, including 20 new jobs.

As the company’s major international hub in New Zealand, the expansion follows double digit volume and shipment growth. The new Auckland Gateway facility measures approximately 5,000 sq mt and doubles the processing capability of the previous facility. This provides access to a network of more than 220 countries and territories globally, allowing Kiwi importers and exporters to trade in the global marketplace more efficiently than ever before. Ken Lee, CEO, DHL Express Asia Pacific, commented: “International trade via imports and ex-

ports now comprises approximately 60 per cent of New Zealand’s overall economic activity and is growing. DHL Express is proud to facilitate trade for local businesses via our international network that connects New Zealand with over 220 countries and territories globally. The most popular trading partners for goods moving in and out of this Auckland-based facility include Australia, China, Hong Kong, Singapore, the UK and USA — with all trade lanes showing solid performance in recent months.”

Commenting on the investment, Mark Foy, Country Manager, DHL Express New Zealand said: “A key driver for this expanded gateway has been the growth in New Zealand SMEs shipping products internationally via DHL Express. This expansion will assist with volume increases from all areas of the country, as innovative Kiwi businesses continue to tap into the global marketplace and reach international customers like never before.”

China’s investment in Belt and Road infrastructure — more than US$75bn (Euro 67.5bn) in the 18 months to June 2016 — bolsters regional cooperation and promotes trade. Since 2010 and in line with the vision for “Belt and Road”, DHL has been developing scheduled connections offering rail services across multiple cities in China, and linking it to road solutions throughout South East Asia and ferry services from North Asian cities in Japan and Taiwan.

From South East Asia and other parts of North Asia, the road and ferry connections feed into China’s rail system which connects into Europe, with final distribution by road across the continent. This intricate connection of rail, road and sea services offers customers an additional logistics route, foster-

ing trade between economic powerhouses of Europe and Asia.

“We have been focused on building connectivity between China and regional countries, and connections into Europe via all combinations of road, rail and sea services,” said Steve Huang, CEO, DHL Global Forwarding China. “A multimodal solution — combining all modes of transport — enables customers to better manage their supply chains — offering flexibility, cost savings and potentially a reduced carbon footprint.” “The new service provides greater flexibility and speed for Japan’s exporters, including sectors like automotive and electronics production which already enjoy market dominance in Europe,” said Mark Slade , President and Representative

Director, DHL Global Forwarding Japan.

“With Less-than-Container Load services to Europe, Japanese businesses can improve the efficiency of fulfilment and inventory management at cost-effective rates, helping them maintain their competitive edge as world-class manufacturers.”

Broadly, combinations of multimodal services can reduce transport costs by up to six times and up to 90 per cent reduction in carbon footprint as compared with air freight, making it an increasingly attractive option for SME and MNC customers alike.

DHL recently launched a further three new multimodal services: 1. Sea and Rail service: A Less-than-Container Load (LCL) service between Japan and Germany which allows businesses to export low-volume shipments for as little as half the cost of standard air freight.

With a transit time of about 22 days, shipments are moved from Kobe to Taicang via sea, and by rail to Hamburg through hubs like Duisburg, Lodz, Malaszewicze and Warsaw.

2. Road and Rail service: The Vietnam-Europe service takes Full Container Load (FCL) cargo from Hanoi to Chengdu via road, followed by rail to hubs like Lodz, Duisburg and Hamburg in Europe, arriving in 21 days. An LCL option for the Vietnam - Europe service will commence in Q4 2016.

3. Rail, Road and Sea: Further boosting our Southern rail corridor offering announced last year, the new Chengdu-Istanbul service traverses three Central Asian countries — Kazakhstan, Azerbaijan, and Georgia — as well as two sea transit segments before arriving at Istanbul in 14 days.

The three new services build on a series of major DHL investments in the last 12 months, including a multimodal service between Japan and Warsaw via Suzhou announced in November 2015; and an MOU signed in May 2016 with Chengdu’s Gateway Logistics Office to upgrade infrastructure and customs processes. DHL has been developing multimodal services along the Belt and Road since 2010, when it launched a suite of five services – International Rail, Rail-Air; Sea/River-Rail; Sea-Air and Cross-Border Road Freight.

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SPOTLIGHT

‘Japan-India traffic is on the rise’ India is a country with huge potential and Japan Airlines is keen to start flights to different cities

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ith just seven flights a week out of Delhi directly to Narita, Japan Airlines has been able to fill 90 per cent of its belly capacity every month. This, given the fact that the air cargo business in the past 12 months has been an uphill climb with exports dwindling. Said Toru Takeda, Country Manager India, JAL, “As exports were going down it was difficult to fill the belly load especially in the lean season, but we could fill 90 per cent of the available capacity – both in export and import. In terms of both export/import, we are handling around 600-700 tons of cargo in Delhi on a monthly basis”. He also pointed out that the increasing in belly capacity compelled carriers to reduce tariff that in turn reduced the overall yield/profit.

With his prime responsibility of the passenger market, Takeda also mentioned that “last year business was good from India and was showing a rising trend. Due to the strong and good relationship between India and Japan, traffic between the countries has been increasing”, he emphasised.

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JAL’s cargo business from Delhi has remained steady because of what Takeda described as “our unparalleled services to our customers beyond their expectations specially for mainland Japan”. He said that the Japan Airlines’ domestic network in Japan “is always helping us to serve the customer

September-October 2016 I Cargo & Logistics

beyond Narita according to their requirements”. Added to that is the personalised monitoring of export/import cargo handling that leads to “cases of irregularity going down to the zero level. The airlines provided fingertip information and have adopted a paperless process that has transformed the cargo business.

The difficult conditions notwithstanding – and Takeda lists the increasing capacity as one reason – he is cautiously optimistic about the future. He said that “initiatives like the ‘Make in India’, ‘Start-up India’, etc. could be beneficial but it was too early to comment”, since these were still in their early stages. But he mentioned that with the number of e-commerce players coming in, he could see a “great challenge for air cargo in the coming years”.

He went on to say that India was “an emerging country with huge potential. With the growing Japanese investment in India, we expect an increase in travel. Also the diplomatic relationship between the two countries is helping the aviation business immensely”. JAL is, in fact, “studying the potential of different markets in India and planning to start flight from different cities”, said Takeda.

Though JAL stopped its freighter services quite a few years ago, the Regional Manager said “still we are operating several non-scheduled freighter services (including Delhi) with OAL aircraft if there was a demand in the market”.

Unlike other carriers that view the competition from the Middle East seriously, JAL’s Takeda brushed them aside saying that they operated in “a totally different market”. However, he also made it a point to mention that the Middle Eastern carriers had “a lot of capital to invest in their aviation industry and have shown the world a high class of service. We have a lot to learn from them”, he said.

SPOTLIGHT

POP-up for cargo

Crowdfunded People Over Profit airline wants to cash in on the Britain-India cargo traffic, pos-Brexit with a new service starting sometime in the near future

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he on-again, off-again Britain to Amritsar flight route was in the news recently when a crowdfunded new airline, POP (an acronym for People Over Profit) sent out a message that it planned to be the first airline to operate non-stop flights between the UK and the cities of Amritsar and Ahmedabad in the states of Punjab and Gujarat.

While the news was welcomed by the Indian diaspora in Britain, it was hailed by air cargo stakeholders in Amritsar. With no regular direct international air connectivity exporters were finding it tough to send out fresh vegetables and fruits and industrial products. As a result, other than perishables, most consignments were being sent to Delhi by road for onward transportation.

The lack of air services has also turned the 80-tonne capacity cold rooms idle. POP believes that its flights would not only help the under-served ‘visiting friends and relatives’ market but also boost business and tourism.

The carrier hopes to open new trading links between Britain and India and has already started reaching out to air cargo operators.

Said Navdip Singh Judge (Nino), Chairman and founding partner of POP: “The vision behind POP is one of making a genuine and positive difference to the communities we plan to serve. We aim to do that by opening up new routes between the UK and India and by providing new opportunities for growing businesses in Punjab and Gujarat to engage in worldwide trade in a way that has previously been impossible for them.”

In an email to ACNFT, Judge said that he had positioned cargo in his business plan “to make as much profit as possible to enhance our profitability and hence donate to good causes” because there was a “huge trade potential between India and UK and offering cargo will facilitate this trade”. He said that he was optimistic about the talks between the UK and Indian governments

about a possible preferential or free trade agreement following the Brexit decision.

This, he said, “makes us even more confident about the cargo opportunities that POP can look forward to”.

Other reasons for the POP Chairman’s optimism stem from Prime Minister Modi’s “Make in India” campaign to boost manufacturing within the country and the new civil aviation policy that has enunciated the government’s aim of providing an ecosystem for the harmonised growth of aviation subsectors including cargo. It is in such an environment that POP will offer opportunities to manufacturers and producers in northern India who will be able to take advantage of the direct 8-hour flights to the UK to send out a whole range of goods, textiles and traditional Indian clothing and fresh produce like fruits and vegetables. Said Judge: “We have already had very good interest from vendors who want to take advantage of the shorter flight times to cargo perishables like fruits”. Looking at the future, POP has plans to tie-up for bonded trucking services to the airport and even link with other carriers. However, that will come in “year two when we hope to fly to Kolkata and Goa three times a week and hopefully other cities once we have researched the demand”, said Judge. From Ahmedabad, POP hopes to take fabrics, jewellery and gemstones,

chemicals, cars and pharma. From Europe, POP’s cargo services will help manufacturers wanting to export to India. The airline’s flights will enable these manufacturers to satisfy the growing demand for products like electronic devices for the growing Indian middle class. Undeterred by the infrastructure problems, Judge said that cargo facilities will “develop if there are flights.

It is a chicken-and-egg situation”. He also mentioned that if the infrastructure was not there, it could be an opportunity for POP to create it.

Cargo exporters from Amritsar have often sent out appeals to the government in Delhi and the ministry of civil aviation for the resumption of international flights. Over the last ten years, a number of flights by international carriers were started only to be discontinued after a few months. Way back in 2004, Singapore Airlines had an Amritsar-Singapore thrice a week service but that stopped in 2009. In 2010, one of Air India’s popular flights – in fact, the Amritsar-Birmingham-Toronto flights were the most successful in the national carrier’s history registering on an average 90 per cent occupancy — was withdrawn. Two years later, British Midland International discontinued its Amritsar-Almaty-London flight. Even Jet Airways had an Amritsar-London flight for some time.

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NEWS IN BRIEF

AIR  CHIAL SIGNS MOU WITH AAI Chandigarh International Airports Limited signed a Memorandum of Understanding (MoU) with Airports Authority of India (AAI) for the financial year 2016-17.

The MoU was signed by Guruprasad Mohapatra, IAS, Chairman, AAI with S Raheja, Chairman, CHIAL. The memorandum spelt the targets to be achieved by AAI on key performance areas during 2016-17.

ASSAM TO CONSTRUCT CARGO STATION In a bid to boost trade in Assam, the state government would construct a full-fledged cargo station near the Lokapriya Gopinath Bordoloi International (LGBI) airport. The Airports Authority of India (AAI) would also construct a new runway in the airport to make it of an international standard.

Assam’s Transport Minister Chandra Mohan Patowary said that the Assam Industrial Development Corporation (AIDC) would implement the construction of a full-fledged cargo station near the airport. He added that the AAI had allotted a plot of land for the construction of the cargo station. He also said that the Assam government was of the view that international flights to all South Asian countries should be started from the LGBI airport which would also help the government to implement its Act East Policy.

HELSINKI TO GET NEW CARGO TERMINAL

IAG Cargo flies to Tehran; Constant Climate on upward growth

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n a bid to boost business with flexibility between European and Middle Eastern markets, IAG Cargo has become the first and only cargo carrier to start a London to Tehran service. The cargo carrier provides six flights in week to and from Iran, using British Airways B777-20s.

The new route was launched following the easing of EU sanctions against Iran. With the country’s economy in 2016 and 2017 expected to grow by 4.8 per cent and 5.4 per cent, respectively, the service would enhance trading opportunities.

“With the second largest economy in the Middle East and North Africa (MENA) region, Iran offers a huge opportunity for global trade. The country’s predicted economic growth over the coming years means that connecting Iran via our London hub to the rest of the world will be of real benefit to our customers. IAG Cargo is committed to delivering against market demand to meet the needs of global businesses and with one of the world’s largest cargo networks and a wide range of high-quality premium products we’re confident that this new service will be well received,” said David Shepherd, Head of Commer-

CAL Cargo back to India

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Finnair Cargo will open its new, state-ofthe-art, 37, 000 sq mt Cool Nordic Cargo hub at Helsinki Airport in May 2017, and will work with Hub Logistics to ensure a smooth transition and optimised usage of the new automated terminal.

For the next eight months, Finnair Cargo would work in close cooperation with Hub logistics to maximise the

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cial, IAG Cargo.

Meanwhile, Constant Climate, one of the flagship premium products of IAG cargo recently celebrated 10 years.

The carrier has also seen consistent growth of double-digit volume year-onyear. The carrier transported more than 35,000 shipments annually. The volume growth has followed the increase of global pharmaceutical sales, which passed the $1 trillion mark for the first time at the end of 2014 and anticipated to reach $1.3 trillion by 2018.

Constant Climate provides customers with precision temperature control for pharmaceuticals and life sciences, most commonly transporting critical vaccines, oncology drugs and insulin around the world. Alan Dorling, Global Head of Pharmaceuticals and Life Sciences at IAG Cargo, said, “Since opening our first Constant Climate centre in 2006, we’ve worked closely with our freight forwarding and pharmaceutical shippers to continually develop the quality of our product service. We’ve transported critical vaccines at times of pandemic and we are continually entrusted with high value temperature-sensitive medicines such as insulin and oncology drugs.”

eading international carrier from Taiwan, China Airlines (CAL) Cargo has resumed freighter services to Luxembourg from Delhi, effective August 28, using Boeing 747-400 aircraft.

The resumption of CAL’s cargo services in India comes after a break of four years and is in partnership with India-based Ascent Air. In the initial phase, the two partners would operate one round-trip flight a week, carrying

September-October 2016 I Cargo & Logistics

cargo from East Asia to India and then to Europe, and in turn, deliver cargo from Europe to India and then back to Taipei, CAL said.

CAL’s Cargo Manager, Lin HsiaoFeng said that CAL was upbeat about the economic outlook of India so the carrier was seeking more partnerships in the Indian market in a bid to expand the number of cargo flights in the second half of this year and serve more customers.

NEWS IN BRIEF

Cathay Pacific Cargo workshop for shippers

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athay Pacific Cargo conducted a workshop for freight forwarders in Chennai, Hyderabad and Kolkata. The workshop was conducted after the success of a workshop – the first of its kind — conducted by Cathay Pacific Cargo, earlier this year. The workshop was held to apprise the trade about the latest Cathay Pacific Cargo product and services. The event relayed key products for each market and latest updates on digital initiatives like EAWB and CX Cargo Mobile app along with interactive games and quizzes. The event saw the participation of 47 freight forwarders in Chennai, 29 in Kolkata and 33 in Hyderabad.

Anand Yedery, Regional Cargo Manager-South Asia, Middle East and Africa said, “Post the success of the Mumbai workshop, we decided to roll it out for our trade partners in Chennai, Hyderabad and Kolkata and the response has been overwhelming. This is yet another step to engage with our partners and also help them stay abreast of the key happenings with Cathay Pacific Cargo.

We look forward to extend these events to all our ports in India. ” Traffic figures show rise in cargo: Cathay Pacific Airways recently released combined Cathay Pacific and Dragonair traffic figures for June 2016 that shows an increase of cargo and mail uplifted compared to the same month last year.

Cathay Pacific and Dragonair carried 151,130 tonnes of cargo and mail in June, an increase of 7.1 per cent compared to the same month last year. The cargo and mail load factor rose by 1.6 percentage points to 64.3 per cent. Capacity, measured in available cargo/mail tonne

kilometres, rose by 2.1 per cent while cargo and mail revenue tonne kilometres (RTKs) increased by 4.8 per cent.

In the first six months of 2016, the tonnage carried fell by 0.3 per cent against a 0.6 per cent increase in capacity and a 2.3 per cent drop in RTKs. Cathay Pacific General Manager Cargo Sales & Marketing Mark Sutch said, “Helped by the half-year end rush, the overall tonnage for June was healthy, thanks to growing feed from Asia. The Americas saw a surge in the export of seasonal produce into Asia, particularly from the West Coast. Our new Madrid service was well-received by the cargo community and we filled the westbound leg with consumer goods and carried fresh produce on the return leg.

However, overall yield remains challenging, as market supply continues to outstrip demand. We will continue to diversify and develop special products, some of which have shown encouraging results.”

Freighter service to Portland: Cathay Pacific Airways announced an expansion of its freighter services in the Americas with the addition of a twice-weekly scheduled service to Portland effective November 3, 2016, subject to government approval. Portland would be Cathay Pacific’s 18th cargo station in the Americas.

The new Portland service would operate on a Hong Kong-Anchorage-Los Angeles-Portland-Anchorage-Hong Kong routing every Thursday and Saturday, using Cathay Pacific’s newest and biggest freighter, the Boeing 747-8F.

AIR  use of the new terminal from the start of operations. The transition from the current terminal operator, Suomen Transval Oy, would be carried out as a transfer of business, which means that the Transval employees working in the Finnair Cargo terminal at Helsinki Airport will transfer to Hub Logistics. Janne Tarvainen, Managing Director, Finnair Cargo said, “Cargo is an integral part of Finnair’s growth strategy and we intend to make the most of the warehouse automation and process optimisation capabilities of our new terminal.” He also added that the move was an important step and a great opportunity to significantly increase the volumes of cargo at the Helsinki hub.

AIR CHINA CARGO’S YIELDS DECLINE

The slowdown in the global economy and sluggish trades volumes have seen Air China Cargo’s yields declining by 10.2 per cent year-on-year in the first half of the year. However, according to Air China, it had taken measures to try and improve the situation.

“The company has strengthened the combined passenger and cargo services, established a passenger and cargo coordination network hub, promoted the sales of its cargo transition business and actively improved revenue increases in bellyhold space services. The company has also strengthened marketing management, focused on marketing upgraded products, and officially launched its line of new products,” the airline added.

The airline further said, “At the same time, the company has accelerated the integration of logistics resources and the cargo terminal business to further advance the optimisation of its cargo business model.”

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NEWS IN BRIEF

SHIPPING AND PORTS  MAJOR PORTS HANDLED 107.52 MT CARGO TRAFFIC The major ports in the country handled 107.52 MT (Million Tonnes) of cargo during April-May 2016 and showed a positive growth of 6.3 per cent as compared to 5.7 per cent growth in the same period. Of the 107.52 MT of cargo handled during April-May, 55.1 MT was handled in the month of May alone showing a growth of 3.3 per cent. Mormugao Port Trust showed the highest growth in traffic (105.6 per cent), followed

by Paradip Port Trust (15.3 per cent), Vishakhapatnam Port Trust (13.5 per cent), New Mangalore Port Trust (2.8 per cent) and Kandla Port Trust (2.1 per cent).

These improvements were the results of measures taken by Ministry of Shipping, which include mechanisation of terminals, improving the TAT (turn-around time), quick evacuation of cargo, expansion of infrastructure and skill development of employees.

CENTRE APPROVES `1,145 CR PROJECT AT MORMUGAO In a bid to develop berths in the public private partnership (PPP) mode, the government recently gave its nod to a `1,145 crore project at Mormugao Port, Goa. The Ministry of Shipping said in a statement, “The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has given its approval for ‘Redevelopment of Berths 8, 9 and barge berths at the Port of Mormugao, Goa, on PPP mode at an estimated cost of Rs 1,145.36 crore.”

The project would be completed within 36 months from the date of award of concession. According to the statement, “The project envisages reconstruction of three old berths and replacement of 38-year-old equipment by creating facilities for handling a variety of cargo like iron ore, bauxite, gypsum, limestone, fertilisers, steel coils and other general cargo at Mormugao Port catering to ships up to 1,85,000 Deadweight tonnage (DWT).”

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Jawaharlal Nehru Port is No. 1

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awaharlal Nehru Port Trust (JNPT) became the country’s first port to implement logistics data tagging of container. First of its kind, this facility would help importers and exporters track their goods in transit through logistics data bank service.

A Radio Frequency Identification Tag (RFID) would be attached to each container which would be tracked through RFID readers installed at different locations.

This would provide the visibility and transparency of the exim container movement through rail or road till the Inland Container Depot (ICD) and Container Freight Station (CFS). This service would integrate the information available with various agencies across the supply chain to provide detailed real time information within a single window. This would help to reduce the overall lead time of the container movement across the western corridor and lower the transaction costs incurred by shippers and consignees.

This has been one of the important initiatives in the ease of doing business programme implemented at Jawaharlal Nehru Port focused towards document, time and cost reduction for the benefit of the trade.

JNPT to add three more scanners: To

get rid of truck turnaround time at JNPT, the Union Shipping Ministry has decided to install three more scanners in the next six months in the port premises. The Custom department mandated with screening has just one scanner at present, leading to long queue of trucks carrying goods and commodities. “Apart from the helping meet the security issues, additional scanners will also improve the turnaround time of trucks leading to faster movement of goods and commodities,” said Neeraj Bansal, Deputy Chairman, JNPT. He also said that the additional scanners would be very helpful in reducing the time and costs for faster and economical operations. The average dwell time at JNPT has reduced to 1.5 days, near the accepted international benchmark of 1.2 days. Similarly, the average export dwell time has come down to 65 hours from the earlier 88 hours, he further said.

KoPT starts commercial transloading

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olkata Port Trust (KoPT) has started commercial transloading at the Sandheads from September. “We are going to start commercial transloading from September with SAIL. We have been able to become at par in terms of cost with Dhamra port by reducing charges by `200 per tonne for users,” Kolkata Port Trust Chairman M T Krishna Babu said.

“Transaloders were ready by the partner Jindal ITF, but our cost was higher by `200 per tonne for users. Now, we have reduced our wharfage charges by `50, while Jindals have reduced `100 and another benefit of `40 is available as the

September-October 2016 I Cargo & Logistics

cargo is treated for coastal movement.

Now, we are competitive with Dhamra port,” he said. The Chairman said the government was focusing on coastal cargo movement and a lot of infrastructure had been developed to pave the way for coastal smooth cargo movement.

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Key to logistics efficiency is automation Vineet Baid points out how automation can change the face of logistics in the country

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ogistics sector is poised for rapid growth in India. The ecommerce logistics segment alone is slated to become a $2 billion industry in the next three years. Currently, India spends 14 per cent of its GDP on logistics and transportation as compared to around 8 per cent spent by developed nations. While a part of it can be attributed to poor infrastructure availability and difficult regulatory procedures, but there is also a huge difference in embracing and adoption of technology and automation between these types of economies.

How is automation key to logistics efficiency?

Let us take warehousing as an example.

Perhaps, the simplest way to achieve warehouse efficiency is process automation. We are working with the intention to eliminate or limit to a greater extent, the use of human labour and inputs. One small change

technology to optimize the storage space are available in the market. The same SKU volume can be used for intelligent packaging recommendation at the time of order processing. SKU weight based tolerance checks at the time of outbound can help prevent wrong shipping. In essence, simple automation helped save space and manpower costs, reduce errors, improve customer satisfaction.

Robots or robotics is a more fancy term, probably a bit intimidating. Let’s just say that smart software deployed on capable hardware can help drastically reduce the manpower required for performing repetitive tasks like sorting, weighing, dimensioning, barcoding, counting, placing, picking, packing and more. For the purpose of understanding, while a trained human can probably sort at a maximum speed of 600 pieces an hour to 16 sort points, a sorter can sort at 7000 pieces an hour to as many sort points as desired.

in the direction of automation, holds the potential of reducing costs, dependence on labor and also, making the shipping process quick and accurate, regardless of the volume of shipments being processed.

For instance, consider space utilisation in a warehouse and possibilities with weight and volume visibility of Stock Keeping Unit (SKUs). One can optimise the space utilisation in the warehouse by mapping the SKU volumes and storage unit volumes in the system. Both, hardware technology to capture weight and dimension at a fast pace and software

Further value is offered by the introduction of Internet of Things (IoT) and wearable tech in the economy today.

For instance, utilising the commercial telematics in trucking fleets to boost efficiency is one example. Furthermore, warehouse managers can have greater visibility with the latest IoT devices, along with radio-frequency identification and sensors. Wearable tech makes it easier for the workers to move out and about and carry out important tasks, without having to stay chained to their workstations.

Lids, the renowned athletic sportswear

company, offers impressive insights in the domain. Following the deployment of IoT enabled robotic carts taking care of picking, placing and delivering products between specific stops of the process chain, Lids has been able to make the processes efficient and optimally utilize the available capital and human resources. The trend however, was initiated by the global ecommerce giant, Amazon, deploying robots in the beginning, to move shelves. The company today has over 30,000 Kiva Robots, only testifying the success of automation in making the warehouses efficient and successful.

Approaching automation and cost considerations There is no denying the cost attached to automation. Hence, warehouse owners and managers need to perform extensive feasibility studies, in order to be sure if making the move is worth it. Going by the book, the cost of human labour for two years should be double the cost of automating the warehouse today. If somehow, the cost of two years of manual labor turns out to be less expensive than the current automation, the warehouse is in no dire need of automation.

However, as against the popular belief, automation needn’t necessarily cost a bomb to the warehouses. Earlier there were only international players offering solutions in this area, now there are some companies based out of India who are providing reliable solutions at very competitive pricing.

Much to gain The general consensus amongst the companies that have deployed automation and latest technology has been of increased accuracy in shipments and significant reduction in labour costs. They have further been able to provide greater visibility to customers, letting them track the orders on demand, further solidifying the relationship.

(The author is Chief Executive Officer, Falcon Autotech)

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25

NEWS IN BRIEF

SHIPPING AND PORTS EVTL HANDLES 2.19 MT IRON ORE

Tamil Nadu to get a major port at Enayam

C Essar Vizag Terminals Ltd (EVTL) has registered seven-fold growth in Q1 of the current financial year. The terminal handled 2.19 million tonnes (MT) iron ore cargo, aided by improved performance in steel sector.

EVTL, a wholly-owned subsidiary of Essar Ports Ltd (EPL), had handled 0.31 MT iron ore in the year-ago period. “During Q1 2016-17, EVTL handled 2.19 MT (29 vessels) of cargo as against 0.31 MT (6 vessels) in Q1 2015-16 in the backdrop of improving Indian steel sector performance and project upgradation works,” EPL said in a statement.

“Essar Ports expects enhanced capacity utilisation during 2016-17 and cargo handling to increase from 59 MT in 2015-16 to 85 MT in 2016-17, thereby registering a growth of over 40 per cent year-on-year with third party cargo business to increase to more than 14 per cent in 2016-17,” the firm said.

haired by the Prime Minister Narendra Modi, the Union Cabinet has given its in-principle approval to set up a major port at Enayam near Colachel in Tamil Nadu. For the development of this port, a Special Purpose Vehicle (SPV) would be formed with initial equity investment from three major ports in Tamil Nadu: V O Chidambaranar Port Trust, Chennai Port Trust, and Kamarajar Port Limited.

The port infrastructure including dredging and reclamation, construction of

breakwater, ensuring connectivity links, etc. would be developed by SPV. Establishing this port at Enayam will not only act as a major gateway container port for Indian cargo that is presently transshipped outside the country, but also become a trans-shipment hub for the global East-West trade route.

Enayam would also reduce the logistics cost for exporters and importers in South India who currently depend on trans-shipment in Colombo or other ports thus incurring additional port handling charges.

Chennai port registers 0.6 per cent growth

C

hennai Port handled 21.91 million tonnes (mt) of traffic during April to August 2016; registering a growth of 0.6 per cent. While, during the same period last year the port handled 21.79 mt. The Port handled 4.50 mt in August 2016 as against 3.97 mt in August 2015 registering an increase of 13.3 per cent according to a Port’s official press release. With the full fledged operation of Krishnapatnam and Katupalli Ports there were apprehensions that the traffic from and to Chennai Port would suffer. But the port has weathered the storm at least for the time being.

ICTT GROWTH OF 20 % IN CARGO HANDLING DP World-run International Container Transshipment Terminal (ICTT), Vallarpadam, handled 43,700 TEUs of cargo in August 2016, marking a growth of 20 per cent improvement compared to same month last year.

“The figures indicate a remarkable growth in the terminal’s performance in line with the growth in trade from South India,” said DP World Subcontinent Senior Vice-President and Managing Director Anil Singh. “The terminal recorded the best truck turnaround time in the country -- 25 minutes along with 30-plus crane moves per hour -- making it the most efficient terminal in South India,” he added. “ICTT is the nation’s best,

26

PHO starts functioning at NMPT

T

o give clearance to all foreign going vessels smoothly, Primary Health Organisation (PHO) has started to function at New Mangalore Port Trust (NMPT), effective August 8, 2016, as a part of ‘ease of doing business’.

The Ministry of Health and Family Wel-

September-October 2016 I Cargo & Logistics

fare has sanctioned an office inside the port.

The Port Health Officer and supporting staff has been provided by the PHO, Cochin which was established to ensure prevention of entry of quarantinable diseases into the country under

NEWS IN BRIEF

SHIPPING AND PORTS 

Zim to adopt Inttra eVGM service

O

ne of the world’s leading container shipping carriers, Zim Integrated Shipping Services and Inttra, the world’s ocean shipping electronic marketplace, announced that Zim would adopt Inttra’s eVGM Service. This service would facilitate compliance by Zim and its customers with the International Maritime Organisation’s Safety of Life at Sea (SOLAS) Verified Gross Mass (VGM) amendment.

As adopted, the amendment requires all containers to have a VGM or certified weight, in order to be loaded onto a ship.

The Inttra eVGM service provides the operational capabilities for digital submission, receipt, processing and auditing

of SOLAS-compliant VGMs for shippers and carriers. Zim customers using Inttra e-commerce solutions would be able to submit VGM information through a variety of channels, including EDI, XML, the web, mobile devices and e-mail.

Dudi Avni, Zim Vice President Customer Service, said: “The eVGM solution now made available to our customers is part of our ongoing efforts to provide first-rate customer service, as part of our strategy and vision.”

“We are pleased to extend our growing e-commerce partnership with Zim,” said Inttra’s President and Chief Operating Officer Inna Kuznetsova.

EBTPL registered 40 per cent growth

and compares well with some of the best ports in the world,” he further added.

Improvement in productivity, new services, and a high rate of vessel handling, along with immense customer confidence, add to the trust of the EXIM (export-import) community in the terminal

KRISHNAPATNAM PORT SERVICE TO CHINA

TO

LAUNCH

Krishnapatnam Port Company Limited and Maersk have launched a weekly mainline service to China. The new service, to be operated by Maersk Line in partnership with Hanjin Shipping of Korea, would provide fast and competitive service to the exporters and importers of Andhra Pradesh, Telangana, Karnataka and northern Tamil Nadu to and from the

E

ssar Bulk Terminal Paradeep Limited (EBTPL) has recorded 40 per cent growth in its cargo throughput in April-July, riding on record production of pellets at Essar Steel’s Paradeep facility. EBTPL handled close to one million tonnes (mt) cargo in the period under review as against 0.7 mt in the year-ago period.

In the current financial year, EBTPL successfully berthed bigger ships and has accommodated a 106,000 dwt (dead weight tonnage) vessel, the largest in the history of our terminal has not the port. “This year, gest vessel for loading, only berthed the bigbut also recorded the highest ever loading rate at Paradip Port.

We will continue to focus on delivering operational excelsaid lence and setting new benchmarks,” Rajiv Agarwal, Managing Director, Essar Ports.

EBTPL’s improved operational performance comes on the back of enhanced production delivered by Essar Steel, its anchor client that recorded its highest-ever pellet production in July 2016. With Essar Steel’s production expected to increase further in financial year 2017, total cargo handling at Paradeep is also likely to grow significantly, with port traffic expanding by more than 100 per cent.

Indian Port Health Rules 1955. PHO has been designated for issue of ‘Ship Sanitation Control Exemption Certificate, Ship Sanitation Control Certificate and Ship Sanitation Extension Certificate to Ships’.

ports of China, Far East Asia and South East Asia. The current transit time for bulk cargo like furniture, office and hotel interiors, which take 40-45 days to reach the consignee, would be halved with the launch of the new service through Krishnapatnam Port Container Terminal.

FFFAI HAILS GST INITIATIVES Praising the government and opposition parties for passing the Constitutional Amendment Bill, the Federation of Freight Forwarders’ Associations in India (FFFAI) was happy with the introduction of Goods and Services Tax (GST) from the financial year 2017-18. Commenting on the impact of the impending uniform tax regime (GST), Samir Shah, Chairman, FFFAI, said that the revolutionary tax structure would immensely impact the manufacturing and logistics industry, that have hitherto been facing serious issues owing to huge cost burden on them, primarily because of exorbitant transaction costs and multiple taxes.

Cargo & Logistics I September-October 2016

27

NEWS IN BRIEF

LAND  RAILWAYS FREIGHT REVENUE DECREASES

Railways saw a fall of 7.74 per cent in freight earnings in July compared with the same period a year ago. According to data released by Ministry of Railways, and reviewed by InfraCircle, the carrier’s freight revenue for July stood at `7,747.92 crore compared with `8,398.24 crore in the same period last year.

Railways also saw a 1.88 per cent drop in freight traffic to 89.34 million tonne (MT) compared with 91.05 MT in July 2015. The main reason for the downfall was coal, said experts. Freight had gone down in April and May and the basic reason was that coal was depleting but the fundamental reason was the same; the railways’ commodity basket remains the same.

`30,836 CR FOR ROADS AND RAIL LINES In a bid to boost the country’s transportation sector, the Cabinet Committee on Economic Affairs has approved plans to build 1,120 km of national highways and around 1,937 km of rail lines across the nation at an investment of `30, 836 crore.

To construct national highways in Karnataka, Odisha, Bihar, Rajasthan and West Bengal, `6,461 crore has sanctioned. While the cost of rail lines that would be laid across the 11 states through nine projects is `24,375 crore.

A K Mittal, Railway Board Chairman said, “This will be a game changer for our capacity augmentation. Our projection for (freight) traffic requirement by 2020 will be around 1,500 million tonne (MT) and it won’t be possible without capacity augmentation.”

28

Govt approves `5,965 cr road projects

T

he Cabinet Committee on Economic Affairs (CCEA) has approved three highway projects each in Maharashtra, Odisha and Punjab to be implemented at a cost of `5,965 crore.

Ministry of Road Transport and Highways said in a statement, “The Cabinet Committee on Economic Affairs (CCEA) has approved the development of four laning of Aurangabad-Telwadi Section of NH-211 in Maharashtra. The cost is estimated to be `2028.91 crore including cost of land acquisition, resettlement and rehabilitation.”

The total length of the road is nearly 87 kms that would be developed. Under the National Highways Development Project (NHDP) Phase-IV on design, build, finance, operate and transfer (BOT/

DBFOT) basis in BOT toll mode.

The cost of Odisha project is nearly `2491.53 crore, including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities. The total length of the road to be developed is approximately 151 kms. The work would be done under NHDP Phase-IV on Engineering, Procurement and Construction (EPC) basis. In Punjab, the four-laning of the section would be done at an estimated cost of `1,444.42 crore. The length of road would be developed nearly 80.820 kms, under the National Highways (Others) on Hybrid Annuity Mode, according to the statement. All the three projects would help expedite the improvement of infrastructure in the respective states besides reducing time and traffic.

NHAI awards `895 cr road project

T

he National Highways Authority of India (NHAI) has awarded `895 crore project in Rajasthan to Larsen & Toubro. “The NHAI has issued Letter of Award (LOA) for development of four-laning of Bar-Bilara-Jodhpur section in Rajasthan under Phase IV of National Highways Development Projects (NHDP) to Larsen & Toubro,” said NHAI in a statement.

The 111 km section connects the

September-October 2016 I Cargo & Logistics

western Rajasthan and border area (Jodhpur-Jaisalmer-Barmer) to eastern part of the state - Ajmer and Jaipur. The statement also said, “This is a major strategic route connecting Jodhpur as an important feeder route during war time.

Four-laning of the section will permit smooth flow of military traffic as well as heavy commercial and domestic traffic. It will also facilitate transportation of mining and agriculture product.”

NEWS IN BRIEF

Railways to connect Bhutan, Nepal, Bangladesh

LAND 

R

ailways has planned to resume its move to provide a railway link to Bhutan, said Minister of State for Railways Rajen Gohain. “The construction organisation of Northeast Frontier Railway has already undertaken survey work for providing rail connectivity to countries such as Nepal, Bhutan and Bangladesh,” Gohain added.

The railway links between India and Bhutan, for which studies were carried out

by RITES in 2008, include Kokrajhar-Gelephu, Rangiya-Samdrupjonkhar, Banarhat-Samtse and Pathsala-Nanglam. Gohain said Indian Railways’ priority was to try and double the existing railway link in Assam over the next three years.

`7,000 CRORE FOR NORTHEAST

About the railway link to Bangladesh, Gohain said, “Once completed, the Agartala-Akhaura international rail link project will boost socio-economic development of not only Tripura but the entire Northeastern region. This line will be a part of the Trans-Asian Railway network and will provide a much shorter connectivity from Tripura to Kolkata through Bangladesh.”

Railways seeks land at Leh

I

n a bid to expedite the survey work of the 498-km long Bilaspur-Manali-Leh new railway line, railways has sought land from Ladakh Autonomous Hill Development Council (LAHDC) to set up camp office at Leh. The cost of construction of the 498 kilometer (km) railway line has been estimated at `22,831 crore.

Recently, the Northern Railway General Manager AK Puthia visited Leh along with a team of senior officers and discussed the issue of railway connectivity to Ladakh region with the local elected representatives and district administration. The Chairman LAHDC was advised to submit a formal application in this regard and further assured that the same would be allotted at top priority and hence land will not be a problem, said a senior Northern Railway official. Bilaspur-Manali-Leh rail line would pass through Bilaspur, Mandi, Kullu and Lahaul-Spiti districts of Himachal Pradesh to reach Leh.

Celebi’s CSR for street women

I

n a move to provide skill training to underprivileged and street women, Celebi Delhi Cargo Terminal Management India Pvt Ltd has joined hands with Niv Art and Cultural Society, a Delhi-based NGO and Putul Arts, for a vocational training programme. Women will be trained to make dolls from scrap and waste material. At the end of the training, participants would also be provided a Cer-

tificate of Training by Celebi and Niv. As part of its corporate social responsibility (CSR) practice, the programme is aimed to offer training to 20 trainees for six months so that they become self-dependant.

Till now, Celebi has supported many environmental protection and educational activities and has taken up active roles in related projects.

To increase its network in the seven North Eastern states in the current financial year, railways have planned to invest `7000 crore, according to Railway Minister Suresh Prabhu. “In 2014-15, the railway ministry invested `2,702 crore for (this purpose). In the current financial year, the investment will be more than `7,000 crore,” said Prabhu. “Increase of inter-state connectivity and connectivity between the region and the rest of the country are being given the highest priority. Available connectivity will boost the region’s economy.”

GOVT TO SET UP 15 LOGISTICS PARK To make transport of cargo faster, reduce cost and improve the supply chain, the government has outlined a road map to set up 15 multi-modal logistics park around major cities – which have a share of about 40 per cent of country’s freight movement by road. The estimated cost of the project is `30,000 crore.

Delhi-NCR, Mumbai, north and south Gujarat, Hyderabad, north and south Punjab, Vijayawada, Kochi and Chennai are the major cities identified by the Road Transport Ministry for the first phase of development.

GAYATRI BAGS `306 CR ROAD PROJECT Ministry of Road Transport and Highway has awarded `306 crore to Gayatri Project for the four-laning of highway construction from Andhra Pradesh to Tamil Nadu border. Gayatri Projects said in a BSE filing, “Gayatri Projects has secured a `306 crore contract for the four-laning of a highway on the Andhra Pradesh-Tamil Nadu border from the Ministry of Road Transport and Highways.”

According to the company the project is for rehabilitation and up gradation of NH-4 from 133.36 km to 179.59 km (Andhra Pradesh-Tamil Nadu border to Nalagampalli Village) to four-lane with paved shoulder in the state of Andhra Pradesh on engineering, procurement and construction (EPC) basis.

Cargo & Logistics I September-October 2016

29

NEWS IN BRIEF

Enabling logistics support for e-commerce A ccording to a Morgan Stanley report, India’s e-commerce market is expected to grow to $119 bn and the Indian e-tail business will grow to $159 bn by 2020. This is an indication of the potential that the e-commerce sector holds in the growth of the Indian economy. As per various industry experts, the main factors which will drive the growth of e-commerce-led logistics in India will be GST and ‘Smart Cities’.

Logistics is one of the most important factors that will determine the success of the e-commerce story. Again, even though the brick-andmortar store format is predominant in the Indian retail sector, the e-retail format is expected to grow to 8-10 per cent in five to seven years from now. The e-tailing format is being adopted not only by global brands but smaller retailers as well. While brands want to have their own e-tailing business to maintain their brand identity and to compete with the larger commerce players, even smaller retailers are taking to the e-commerce market for wider customer outreach.

It is in this scenario that quality B2B e-commerce solutions companies step in.

These provide reliable, high quality endto-end solutions for large companies since they possess competence that spans from

technology to supply chain management.

In addition, these e-commerce solution providers need to have the expertise to reach out to 85 per cent of the population in Tier-II and III markets, not covered by various e-commerce companies. These third party solution providers also ensure systematic management of inventory at all levels for large brand retailers.

One such third party solution provider is Apollo Lycos NetCommerce. Its product, ‘APLY’, is the result of the joint venture between Apollo International Limited (of the Apollo Tyres group) and LYCOS, the wide-

ly known global internet brand. LYCOS brings its global expertise in digital media, technology and marketing in setting up an online presence for large brands globally while Apollo contributes its expertise in logistics, inventory management and reverse logistics.

APLY is a unique and globally scalable solution for global brands to design, develop and fulfil e-commerce for any cross-border or India businesses. The solution aims to bring a differentiated, innovative and exciting service offering to brands online. It offers a comprehensive package right from setup, promotion of brands online, digital marketing of their products and services, driving engagement and sign-ups, fulfilling orders, ensuring data security and privacy, inventory tracking and management, order delivery and reverse logistics.

What does APLY do as a brand? It provides three main services in addition to support services to any brand looking to integrate its offline business with the online commerce space. These three services are technology, marketing and logistics services. Support services being provided are towards two important stakeholders: the customer and the associate channel partners.

AWARDS 

DB Schenker wins award DB Schenker-- part of global logistics service provider-- received the Freight Forwarder of the Year award for its solid network strength and innovative ocean freight solutions. The Maritime Gateway Award was presented recently to DB Schenker to honour the achievements in the field of ocean freight forwarding category in India.

The award consolidates DB Schenker’s leading position in India, in the ocean freight forwarding business. DB Schenker was recognized for its innovative solutions for customers, enabling them to connect with any global location for their FCL, LCL and break-bulk cargo with ease and cost effectiveness.

Oliver Bohm, CEO Schenker India said, “Winning the pres-

30

September-October 2016 I Cargo & Logistics

tigious Award for Freight Forwarder of the Year endorses our commitment and customised service levels to the customers in India, to facilitate their supply chains in the global market. Our aim is to provide end-to-end transport solutions to our customers in India, which is why we are at their doorsteps in India with more than 44 offices today.”

STATS

TRAFFIC PORTS TRAFFICHANDLED HANDLEDAT AT MAJOR MAJOR PORTS

(DURING APRIL TO SEPTEMBER, 2016* VIS-A-VIS APRIL TO SEPTEMBER, 2015)

(*) TENTATIVE

(IN ' 000 TONNES) APRIL TO SEPTEMBER

% VARIATION

TRAFFIC

AGAINST PREV.

2016* 2

1 KOLKATA Kolkata Dock System

2015 3

YEAR TRAFFIC 4

7692

8487

-9.37

Haldia Dock Complex

16242

17199

TOTAL: KOLKATA

23934

25686

-5.56 -6.82

PARADIP

42668

36068

18.30

VISAKHAPATNAM

30670

27637

10.97

KAMARAJAR (ENNORE)

14891

15979

-6.81

CHENNAI

25892

25811

0.31

V.O. CHIDAMBARANAR

19321

18668

3.50

COCHIN

11924

11331

5.23

NEW MANGALORE

17499

16927

3.38

MORMUGAO

13070

8117

61.02

MUMBAI

30813

31117

-0.98

JNPT

30783

32230

-4.49

KANDLA

53963

50383

7.11

315428

299954

5.16

TOTAL:

Source:INDIAN PORTS ASSOCIATION

PORTS

STATS

INDIAN PORTS ASSOCIATION

TRAFFICTRAFFIC HANDLED AT MAJOR PORTS HANDLED AT MAJOR PORTS SEPTEMBER, 2016* VIS-A-VIS APRIL TO SEPTEMBER, 2015) (DURING(DURING APRILAPRIL TO TO SEPTEMBER, 2016* VIS-A-VIS APRIL TO SEPTEMBER, 2015) (*)

TENTATIVE

PORT

(IN '000 TONNES) TRAFFIC PERIOD

P.O.L. (Crude, Prod., LPG/LNG)

Other Liquids

Iron Ore Incl.

Pellets

Fertilizers FIN. RAW

Coal Containers Thermal & Coking Tonnage TEUs Steam & Others

Other Misc.

Cargo

TOTAL

% VAR. AGAINST 2015-16

KOLKATA 304

362

-

40

5

-

449

5073

331

1459

7692

TRF APRIL-SEPT.'2015

314

486

6

53

48

-

1237

4548

282

1795

8487

TRF APRIL-SEPT.'2016

3200

2194

190

75

105

730

5955

718

49

3075

16242

TRF APRIL-SEPT.'2015

3651

2307

858

153

175

803

6546

652

43

2054

17199

TRF APRIL-SEPT.'2016

3504

2556

190

115

110

730

6404

5791

380

4534

23934

TRF APRIL-SEPT.'2015

3965

2793

864

206

223

803

7783

5200

325

3849

25686

TRF APRIL-SEPT.'2016

12636

977

4000

21

2123

13921

5072

29

1

3889

42668

TRF APRIL-SEPT.'2015

9516

942

502

-

2032

14833

4282

66

3

3895

36068

TRF APRIL-SEPT.'2016

7984

976

5218

1141

466

4515

2351

3274

188

4745

30670

TRF APRIL-SEPT.'2015

8494

956

2242

1052

485

5491

2859

2299

134

3759

27637

KAMARAJAR(ENNORE) TRF APRIL-SEPT.'2016

2034

56

-

-

-

11433

79

1

-

1288

14891

TRF APRIL-SEPT.'2015

1983

52

-

-

-

12619

-

1

-

1324

15979

TRF APRIL-SEPT.'2016

6469

628

-

12

101

-

-

14444

748

4238

25892

TRF APRIL-SEPT.'2015

6272

678

-

28

148

-

-

15517

804

3168

25811

V.O.CHIDAMBARANAR TRF APRIL-SEPT.'2016

364

469

-

364

537

5510

1867

6586

325

3624

19321

TRF APRIL-SEPT.'2015

356

372

86

244

546

5776

1848

6121

310

3319

18668

TRF APRIL-SEPT.'2016

7609

259

-

-

144

44

-

3370

242

498

11924

TRF APRIL-SEPT.'2015

7168

511

-

22

162

-

44

2778

201

646

11331

TRF APRIL-SEPT.'2016

11534

883

385

199

33

1609

1784

646

44

426

17499

TRF APRIL-SEPT.'2015

11560

482

174

405

49

1508

1392

565

39

792

16927

TRF APRIL-SEPT.'2016

300

194

4119

68

-

1390

4194

187

14

2618

13070

TRF APRIL-SEPT.'2015

241

256

260

130

-

865

4024

144

12

2197

8117

TRF APRIL-SEPT.'2016

18530

1077

3466

115

-

1361

2538

287

23

3439

30813

TRF APRIL-SEPT.'2015

18157

1302

2588

76

91

2171

2040

243

21

4449

31117

TRF APRIL-SEPT.'2016

2269

947

-

-

-

-

-

27188

2261

379

30783

TRF APRIL-SEPT.'2015

2214

1185

-

-

-

-

-

28497

2244

334

32230

TRF APRIL-SEPT.'2016

30496

4171

199

2171

165

8688

170

82

4

7821

53963

TRF APRIL-SEPT.'2015

27284

3731

536

3029

83

7539

43

14

1

8124

50383

TRF APRIL-SEPT.'2016 103729

13193

17577

4206

3679

49201

24459

61885

4230 37499 315428

TRF APRIL-SEPT.'2015

13260

7252

5192

3819

51605

24315

61445

4094 35856 299954

-0.51 142.37 -18.99

-3.67

-4.66

0.59

0.72

Haldia Dock Complex

TOTAL: KOLKATA

PARADIP

VISAKHAPATNAM

CHENNAI

COCHIN

NEW MANGALORE

MORMUGAO

MUMBAI

J.N.P.T.

KANDLA

ALL PORTS

% Variation from previous year

32

97210 6.71

September-October 2016 I Cargo & Logistics

3.32

4.58

5.16

-9.37

-5.56

-6.82

18.30

10.97

-6.81

0.31

3.50

5.23

3.38

61.02

-0.98

-4.49

7.11

5.16

Source:INDIAN PORTS ASSOCIATION

TRF APRIL-SEPT.'2016 Kolkata Dock System

STATS

INTERNATIONAL FREIGHT INTERNATIONAL FREIGHT SL. NO.

AIRPORT

FREIGHT (IN MT) For the month AUGUST AUGUST % 2016 2015 Change

ANNEXURE-IVA

FREIGHT (IN MT) For the period April to Aug 2016-17

2015-16

% Change

(A) 18 INTERNATIONAL AIRPORTS 1

CHENNAI

22946

19746

16.2

112287

96765

2

KOLKATA

5123

4485

14.2

22552

20660

9.2

3

AHMEDABAD

2064

1884

9.6

11816

9410

25.6

4

GOA

5

TRIVANDRUM

6 7 8

GUWAHATI

9

SRINAGAR

10

CALICUT

1099

11

BHUBANESWAR

0

0

-

0

0

-

12

COIMBATORE

91

85

7.1

491

461

6.5

13

MANGALORE

74

52

42.3

299

320

-6.6

14

VARANASI

0

0

-

0

2

-100.0

15

TRICHY

583

623

-6.4

2818

2950

-4.5

16

AMRITSAR

71

90

-21.1

384

267

43.8

17

PORTBLAIR

0

0

0

IMPHAL

0 34613

0 31433

-

0

18

10.1

0 170341

0 153482

11.0 9.2

16.0

130

132

-1.5

512

490

4.5

2013

2903

-30.7

11657

14058

-17.1

LUCKNOW

216

208

3.8

1251

1109

12.8

JAIPUR

203

79

157.0

1088

406

168.0

0

1

-100.0

2

3

-33.3

0

0

-

0

0

-

1145

-4.0

5184

6581

-21.2

TOTAL (B) 6 JV INTERNATIONAL AIRPORTS 19

DELHI (DIAL)

44859

41731

7.5

228576

209314

20

MUMBAI (MIAL)

42297

40397

4.7

212820

207041

2.8

21

BANGALORE (BIAL)

16869

14680

14.9

83214

72779

14.3

22

HYDERABAD (GHIAL)

5333

5174

3.1

26702

25160

6.1

23

COCHIN(CIAL)

6064

5883

3.1

29602

27494

7.7

24

NAGPUR (MIPL)

28

35

-20.0

132

176

-25.0

115450

107900

7.0

581046

541964

7.2 -

TOTAL

Source: AIRPORTS AUTHORITY OF INDIA

(C) 8 CUSTOM AIRPORTS 25

CHANDIGARH

0

0

-

0

0

26

PUNE

0

0

-

0

0

-

27

VISAKHAPATNAM

0

1

-100.0

0

15

-100.0

28

PATNA

0

0

-

0

0

-

29

BAGDOGRA

0

0

-

0

0

-

30

MADURAI

0

7

-100.0

0

14

-100.0

AURANGABAD

0

0

-

0

0

-

GAYA

0

0

-

0

0

-

0

8

-100.0

0

29

-100.0

31 32 TOTAL

(D) 45 DOMESTIC AIRPORTS 33

INDORE

0

0

-

0

0

-

34

RAIPUR

0

0

-

0

0

-

35

JAMMU

0

0

-

0

0

-

36

VADODARA

0

0

-

0

37

AGARTALA

0

0

-

0

0 Continued on page 34 0 -

38

RANCHI

71

0

100.0

71

0

100.0

39

UDAIPUR

0

0

-

0

0

-

40

BHOPAL

0

0

-

0

0

-

DEHRADUN

0

0

-

0

0

-

41

Cargo & Logistics I September-October 2016

33

(C) 8 CUSTOM AIRPORTS 59 KHAJURAHO 25 CHANDIGARH 60 ALLAHABAD 26 PUNE 61 JORHAT 27 62 VISAKHAPATNAM BHAVNAGAR STATS2863 PATNA HUBLI 29 64 BAGDOGRA AGATTI 30 65 MADURAI BHUNTAR 31 66 AURANGABAD PORBANDAR 32 67 GAYA BARAPANI (SHILLONG) TOTAL from page 33 Continued 68 GORKHPUR (D) 45 DOMESTIC AIRPORTS 69 AGRA 33 INDORE 70 GWALIOR 34 RAIPUR 71 PANTNAGAR 35 JAMMU 72 LAKHIMPUR (LILABARI) 36 VADODARA 73 PONDICHERRY 37 AGARTALA 74 TEZPUR 38 RANCHI 75 CUDDAPAH 39 UDAIPUR 76 MYSORE 40 BHOPAL 77 KANPUR(Chakeri) 41 DEHRADUN (D)42 45 DOMESTIC AIRPORTS RAJKOT (E)43 ST.GOVT. / PVT AIRPORTS LEH 78 LENGPUI(AIZWAL) 44 VIJAYAWADA 79 DIU 45 TIRUPATI 80 DURGAPUR 46 DIBRUGARH 81 NANDED 47 JODHPUR 82 MUNDRA 48 RAJAHMUNDRY (E)49 ST.GOVT. / PVT AIRPORTS SILCHAR (F)50 OTHER AIRPORTS JUHU GRAND TOTAL (A+B+C+D+E+F) 51 JABALPUR

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 1 0 0 0 0 0 7 0 0 0 0 0 8 0

0 0 0 0 0 0 0 0 0 0 710

0 0 0 0 0 0 0 0 0 0 00

00 71 0

00 00

-100.0 -100.0 -

-

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 15 0 0 0 0 0 14 0 0 0 0 0 29 0

0 0 0 0 0 0 0 0 0 0 710

0 0 0 0 0 0 0 0 0 0 00

00 71 0

00 00

INTERNATIONAL FREIGHT

52

00 00

0 00

0 00

00 00

00 00

00 00

00 00

00 00

00 00

150134 0

139341 0

0

BHUJ

00 00

0

-100.0

-

-

-

-

100.0 --

---

100.0 -------7.7 -

00 00

0 00

0 00

00 00

00 00

00 00

00 00

00 00

00 00

751458 0

695475 0

0

Source: AIRPORTS AUTHORITY OF INDIA

SL. NO.

34

FREIGHT (IN MT) For the month AUGUST AUGUST 2016 2015

(A) 18 INTERNATIONAL AIRPORTS 1 CHENNAI 2 KOLKATA 3 AHMEDABAD 4 GOA 5 TRIVANDRUM 6 LUCKNOW 7 JAIPUR 8 GUWAHATI 9 SRINAGAR 10 CALICUT 11 BHUBANESWAR 12 COIMBATORE 13 MANGALORE 14 VARANASI 15 TRICHY 16 AMRITSAR 17 PORTBLAIR 18 IMPHAL TOTAL (B) 6 JV INTERNATIONAL AIRPORTS 19 DELHI (DIAL) 20 MUMBAI (MIAL) 21 BANGALORE (BIAL) 22 HYDERABAD (GHIAL) 23 COCHIN(CIAL) 24 NAGPUR (MIPL) TOTAL (C) 8 CUSTOM AIRPORTS

% Change

-100.0 -100.0 -100.0 -

-

100.0 --

---

100.0 -------8.0 -

0

-

ANNEXURE-IVB

DOMESTIC FREIGHT DOMESTIC FREIGHT AIRPORT

00 00

-

FREIGHT (IN MT) For the period April to Aug % 2016-17 2015-16 Change

7353 8169 3875 254 108 169 1435 1662 221 30 647 759 45 85 1 19 376 334 25542

6822 7688 3732 345 79 235 424 1356 338 48 543 579 34 65 0 18 274 254 22834

7.8 6.3 3.8 -26.4 36.7 -28.1 238.4 22.6 -34.6 -37.5 19.2 31.1 32.4 30.8 100.0 5.6 37.2 31.5 11.9

36853 40991 18321 1224 732 913 5676 6640 2189 167 3182 3162 178 492 7 94 1844 1764 124429

35545 38253 19180 1516 335 1115 1719 6279 2085 191 2737 2799 124 305 0 77 1409 1681 115350

3.7 7.2 -4.5 -19.3 118.5 -18.1 230.2 5.7 5.0 -12.6 16.3 13.0 43.5 61.3 100.0 22.1 30.9 4.9 7.9

24762 18841 10837 4547 1496 544 61027

24486 17487 9840 4359 1117 471 57760

1.1 7.7 10.1 4.3 33.9 15.5 5.7

119910 93350 51055 21051 5986 2742 294094

120613 86659 48255 20978 5001 2674 284180

-0.6 7.7 5.8 0.3 19.7 2.5 3.5

Continued on page 36

September-October 2016 I Cargo & Logistics

STATS

DOMESTIC FREIGHT

Continued from page 34 25 CHANDIGARH 26 PUNE 27 VISAKHAPATNAM 28 PATNA 29 BAGDOGRA 30 MADURAI 31 AURANGABAD 32 GAYA TOTAL (D) 45 DOMESTIC AIRPORTS 33 INDORE 34 RAIPUR 35 JAMMU 36 VADODARA 37 AGARTALA 38 RANCHI 39 UDAIPUR 40 BHOPAL 41 DEHRADUN 42 RAJKOT 43 LEH 44 VIJAYAWADA 45 TIRUPATI 46 DIBRUGARH 47 JODHPUR 48 RAJAHMUNDRY 49 SILCHAR 50 JUHU 51 JABALPUR 52 BHUJ 53 BELGAUM 54 DIMAPUR 55 SURAT 56 TUTICORIN 57 JAMNAGAR 58 GUGGAL(KANGRA) 59 KHAJURAHO 60 ALLAHABAD 61 JORHAT 62 BHAVNAGAR 63 HUBLI 64 AGATTI 65 BHUNTAR 66 PORBANDAR 67 BARAPANI (SHILLONG) 68 GORKHPUR 69 AGRA 70 GWALIOR 71 PANTNAGAR 72 LAKHIMPUR (LILABARI) 73 PONDICHERRY 74 TEZPUR 75 CUDDAPAH 76 MYSORE 77 KANPUR(Chakeri) TOTAL (E) ST.GOVT. / PVT AIRPORTS 78 LENGPUI(AIZWAL) 79 DIU 80 DURGAPUR 81 NANDED 82 MUNDRA TOTAL (F) OTHER AIRPORTS GRAND TOTAL (A+B+C+D+E+F)

441 2778 406 651 320 64 119 0 4779

365 2690 92 258 262 64 122 0 3853

20.8 3.3 341.3 152.3 22.1 0.0 -2.5 24.0

2792 14025 2052 2378 1638 301 682 0 23868

2106 12094 498 1961 1247 349 528 0 18783

32.6 16.0 312.0 21.3 31.4 -13.8 29.2 27.1

656 360 194 295 415 364 2 61 50 23 96 0 0 47 1 0 26 33 3 1 0 30 0 3 3 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2666

591 397 66 95 409 327 3 106 13 13 65 0 0 18 2 0 48 31 0 2 0 6 0 7 2 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 2202

11.0 -9.3 193.9 210.5 1.5 11.3 -33.3 -42.5 284.6 76.9 47.7 161.1 -50.0 -45.8 6.5 100.0 -50.0 400.0 -57.1 50.0 100.0 -100.0 21.1

3308 1796 870 1271 2451 1721 6 387 104 98 751 0 0 234 4 0 112 172 3 12 0 77 0 14 14 0 0 0 34 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13439

2715 1823 717 854 2231 1606 20 494 52 69 586 0 0 147 7 1 145 155 0 10 0 119 0 19 19 0 0 0 3 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 11794

21.8 -1.5 21.3 48.8 9.9 7.2 -70.0 -21.7 100.0 42.0 28.2 59.2 -42.9 -100.0 -22.8 11.0 100.0 20.0 -35.3 -26.3 -26.3 1033.3 -100.0 -100.0 13.9

87 0 0 0 0 87 0 94101

17 0 0 0 0 17 0 86666

411.8 411.8 8.6

294 0 0 0 0 294 0 456124

111 164.9 0 0 0 0 111 164.9 0 430218 6.0 ANNEXURE-IVC

FREIGHT (INT'L+DOM.) FREIGHT (IN MT.) FREIGHT (IN MT.) For the period April to Aug For the month AUGUST AUGUST % % 2016-17 2015-16 September-October 2016 I Cargo & Logistics 2016 2015 Change Change (A) 18 INTERNATIONAL AIRPORTS 1 14.0 12.7 CHENNAI 30299 26568 149140 132310 2 9.2 7.9 KOLKATA 13292 12173 63543 58913 3 5.8 5.4 AHMEDABAD 5939 5616 30137 28590 SL. NO.

36

AIRPORT

We Deliver On Time...Anywhere

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

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

Our Mission • To establish lifelong associations, retain clients and increase the number of customers trading every week.

• Improve the percentage of deliveries made on time.

• Decrease the number of outstanding invoice queries at the end of each week.

• Increase the frequency of contacts with existing and prospective customers.

• High-integrity workplace atmosphere.

• Empowerment of employees.

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

www.speedmanlogistics.com

WOMEN IN CARGO

‘Cargo business is never dull’ Shalini Rego, Manager Sub-Region Air Pricing (Indian Sub-Continent) with DSV Air & Sea Pvt Ltd, moved into the hustle bustle of air cargo from a purely administrative position – and fell in love with it. Today, with a firm understanding of the business, she believes that the air cargo industry is like no other. Excerpts from a conversation:

How did you become part of the air cargo industry? What motivated you to join the business?

I started my career as Executive Secretary.

My growth from administration to the Tender Desk was a gradual one. Over the years, the Logistics Industry, by virtue of the versatile experiences and opportunities, has spurred my growth in a rather comprehensive manner. It’s a great industry and people are always very helpful. They show respect and treat each other like family.

How long have you been working in the air cargo industry? Are you specialized to handle goods like perishables or dangerous goods?

It’s been over a decade. Yes, we have our colleagues who are specialized and have expertise in handling DG Cargo.

What are some of the challenges you’ve faced working in this industry?

We should never confuse altitude with attitude. Having a composed attitude is constructive to growth. Today’s logistics

38

customers demand flexibility and visibility.

Keeping the client apprised with relevant information is a simple yet undeniable strength of the Logistics Industry.

What do you like most about working in this industry?

The strength of our global system and the professionalism of our people.

How has the air freight industry changed since you joined?

The cargo business challenges you beyond expectation and is never dull. It is highly competitive. We are the service industry and it’s all about client value.

What are some of the developments we can expect in the near future?

Infrastructure is becoming a major determinant for growth.

• Multi-channel sourcing: Endconsumers increasingly source via multiple channels, ranging from brick and mortar shops to e-commerce. The logistics industry needs to support multi-channel strategies of their

August-September 2016 I Cargo & Logistics

•

customers.

Continuity: To be able to secure speed to market and to reduce risk of delays, alternative transport modes and routes are required to support the continuing trend of outsourcing of logistics services.

More and more regulations and standards in an already complex business.

Will the freight industry be able to keep up?

The industry would have to align with the global consumer demand on timelines and commitment. Regulations and standards are imperative for the risks of carriers and people, to balance the same, infrastructure has to improve at all air cargo complexes and the vehicle entry and exists accesses.

What advice would you give any women looking to build a career in air cargo?

The air cargo industry is a dynamic and competitive. One needs to be geared up and updated at all times. Logistics is demanding but never dull. Finally, it all comes down to customer value.

Highest standard of excellence ensured at each level of operation.

CELEBI DELHI CARGO TERMINAL MANAGEMENT INDIA PVT. LTD. Cargo Terminal, Indira Gandhi International Airport, New Delhi-110037. Phone: +91 11 2560 1310, Fax; +91 11 2560 1320

• •

• • • • • •

•

Automation / Mechanization of cargo handling activities at AAI managed airports.

Augmentation of Infrastructure at Chennai & Kolkata airports with state-of-the-art facilities like Elevated Transfer Vehicle (ETV) for Export Unitized Cargo and Automated Storage & Retrieval System (AS&RS) for Import Cargo.

Appointment of Ground Handling Agency to improve service levels at airports.

Implementation of EDI under Customs ICES 1.5 version at Chennai & Kolkata Air Cargo Terminals.

AAI is in the process of establishing pharma zone at Chennai and Aurangabad Airports.

AAI has empowered its GHA in obtaining Regulated Agent (RA) Status at Chennai airport and RA3 status for Chennai and Kolkata Airports is also being expedited.

Provision of e-warehouse for e-commerce entities and express cargo handling counters are in the pipeline at various airports.

Commissioned International Air Cargo handling facility at Trichy, Mangalore Airports and proposed at Madurai and Vizag Airports.

Steps initiated towards e-Banking / e-payment facility.

• •

• • • • •

Benchmarking parameters for Cargo operation vide Citizen Charter of AAI. AAI is also exploring the possibility of creating Free Trade Zone (FTZ) at its airports.

Commissioned Common User Domestic Air Cargo Terminal (CUDCT) facilities at Port Blair, Coimbatore, Jaipur, Lucknow (outbound), Vizag, Mangalore, Amritsar (interim), Madurai and Chennai Airports up to 2015-16.

During the FY 2016-17, Ahmedabad, Raipur, Aurangabad, Bhubneswar, Ranchi, Goa, Guwahati, Vijayawada, Varanasi and Trivandrum Airports are being commissioned.

AAI is planning to commission the CUDCT facilities at Pune, Amritsar, Surat and Srinagar Airports, during the FY 201718.

Plan to introduce Air Cargo Community System (ACS) in co-ordination with MoCA. Plan to commission International Courier handling facilities at Trivandrum and Trichy airports apart from existing facilities at Chennai and Kolkata Airports.

Frequency based incentive for Cargo Freighters introduced w.e.f. 01.01.2015 at Chennai & Kolkata Airports apart from the existing 20% discount in export TSP charges for lean hour transaction by exporters.

MAKE IN INDIA