infraLOG Magazine Sep-Nov 2014 by Shiv (infraLOG)

SEPT-NOV, 2014

AN ASIA AVIATION ASSOCIATES PUBLICATION

VOL-I ISSUE-III | PAGE 52 | RUPEES 100

www.asiaaviationassociates.com

Asia Aviation Associates and Gujarat Chamber of Commerce & Industry is

Organising a Seminar on

Cargo & Logistics Industry December 20, 2014 in Ahmedabad, Gujarat (India) On

For Registration, Sponsorship & Promotion please Contact: Ratan Kr Paul; E-mail: paulratan@gmail.com; Mobile: 09910228289 Manish Kumar; E-mail: manishskycon@gmail.com; Mobile: 09810742646

EDITORIAL

SEPT-NOV, 2014

AN ASIA AVIATION ASSOCIATES PUBLICATION

VOL-I ISSUE-III | PAGE 52 | RUPEES 100

Business Partner for Infrastructure and Logistics

Wooing investors to build capacity The Prime Minister of India, Narendra Modi, took some more pragmatic initiatives by extending his friendships to world's three significant forces viz USA, China and Japan. The primary objective of the charismatic leader in the world now is to woo foreign as well as Non-Resident Indian investors for infrastructure and capacity building to champion his vision: Make in India, thereby making India a preferred manufacturing hub in the world. At the Home front, the PM has launched his government's ambitious project to make India a manufacturing hub, with a promise of effective and easy governance to help achieve high growth and creation of jobs. He stressed that to achieve the goal, the logistics and systems to address in a timely manner queries of potential investors. Commendably, the government has unveiled a portal and brochures on 25 identified growth sectors before Who's Who of the corporate world from India and abroad at the Vigyan Bhavan conference complex in New Delhi. Laying out the red carpet before investors, the prime minister said: "After what we have done and what I hear from you, I don't think I need to assure you any further on â&#x20AC;&#x2DC;Make in India'." He hoped industry across the globe will take his invite seriously. â&#x20AC;&#x153;People have lost faith in Indian manufacturing and themselves. We do not want any industrialist being forced to leave India. A trust was broken. The biggest issue is trust. Why don't we trust each other? I want to change that." The prime minister said for him the term FDI for the domestic industry did not expand to "foreign direct investment" but "first develop India". "We have to create opportunities of employment. If the poor get jobs the purchasing power of families will increase." To achieve his goal, what needs to be done is to establishing a suitable working atmosphere in the country. In this regard the government's decision to change the labour laws is welcome. In the meanwhile, the industry applauded the initiatives. For instance, FICCI stated that the ongoing 'Inspector Raj' and procedural complexities had stifled the potential of Small and Micro Enterprises (MSME). The reforms, riding on technology, therefore, constitute a significant milestone. However, improving Apprenticeship system would require facilitating enterprises through incentives to encourage them to enroll more and more apprentices. It is really a matter of concern that while the number of enterprises in the country exceeds forty millions, there are only 2.81 lakh apprentices trained every year. In addition, the Bills to amend the Factories Act, Apprentices Act and Labour Laws (Exemption from Furnishing Returns & Maintaining Registers by Certain Establishments) Act, 1988 already placed in the Parliament had signaled a positive message to the industry on the intent of the Government. Industry believes Make in India is not a slogan but a mission to be accomplished with a single-minded commitment, and huge corrections at the policy level and in the mindset of the executors.

Managing Director: Prof. Dinesh Kumar E-mail: dineshk.aviation@gmail.com Mobile: +91-9818696033 Editor: Ratan Kumar Paul E-mail: paulratan@gmail.com Mobile: +91-9910228289 Publisher: Manish Kumar E-mail: manishskycon@gmail.com Mobile: +91-9810742646 Marketing and Corporate Communications: Jyotsna E-mail: Jyotsna.kumar21@gmail.com Mobile: +91-9818559139 US Correspondent: Pallavi Katari E-mail: Kumarpallavi8@gmail.com Mobile: +91-3098686806 Chennai Correspondent: Vikas Singh E-mail: Viki280@gmail.com Mobile: +91-9840255178 Design: Krishnendu Chatterjee E-mail: krish.rantim@gmail.com Corporate Address: D-7, Suncity, Sector 54, Golf Course Road, Gurgaon-122001. www.asiaaviationassociates.com

All information in InfraLOG is derived from sources we consider reliable. However, it is passed on to our readers without any responsibility on our part. Opinion/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 Advertisement Code. The publisher will not be liable for any loss caused by any delay in publication, error or failure of an advertisement to appear. InfraLog is published and printed by Manish Kumar from D-7, Suncity, Sector 54, Golf Course Road, Gurgaon-122001 and printed at : Ideal Impressions Pvt Ltd, 9983, New Rohtak Road, Sarai Rohilla, New Delhi-5. Phone: 28717788, 28716080. Mobile: 9811017290.

Contents National News

The success story of GSECL 28

Turkish Cargo starts services from Hyderabad Airport 6

Domestic Air Cargo

Engineering exports to Turkey to grow Safeducate and Tata Institute tie up to supply skilled manpower 7

International News Emirates SkyCargo strengthens road feeder services 8

Cover Story AAA and CII Seminar on AFS & Logistics in Ludhiana: Streamlining the cargo traffic from manufacturing hub 10

Interviews Delex explores opportunity in Ludhiana to start freighter services 12 Start import facility at Ludhiana AFS 13

Develop and make operative Ludhiana Airport Common technology platform should be the goal Focus should be on both inbound and outbound air cargo movement 14 DIESL plans big for Punjab 15 Regular bonded trucking can make AFS successful 16 Fast systematic Logistics solutions need to be in place 17 Sindhu Cargo to expand operations in Ludhiana Glimpses of AFS & Logistics Seminar in Ludhiana 18

AAI Invites TIL to build Common User Domestic Cargo Terminal 30

Trade Opportunities PM's Make in India Initiatives with Japan, China and USA 36

Chambers' Initiatives FICCI Infrastructure Summit urges for rational tolling policy 42

Facts & Figures Airlines wise exim cargo performance at Delhi and Mumbai Airports in September 2014 44 Domestic air cargo performance at Indian Airports during April-August 2014 45 International air cargo performance at Indian Airports during April-August 2014 46 International cargo performance at leading airports in the world in June 2014 Major Port Capacity and Port Performance 47 Country wise export figure 48

Trade Associations ACAAI Convention in Shanghai to expedite bilateral trade 50

Event Report Madhya Pradesh to fuel logistics growth 22

Government Policy Foreign Trade Policy 2014-19: Recommendations from Exporters 24

Emerging Companies Ahmedabad Air Cargo Complex:

38 Sept-Nov2014 |

National News

Turkish Cargo starts services from Hyderabad Airport

ajiv Gandhi International Airport (RGIA), operated by GMR Hyderabad International Airport Limited (GHIAL), recently added another freighter operator with Turkish Cargo launching its operations from this airport. Turkish Cargo is operating Airbus A330-200F freighters increasing the frequency to twice from September 2014, connecting Hyderabad and its catchment area to 260 destinations in Europe, North & Latin Americas, Africa & CIS (Commonwealth of Independent States) countries through its Global Super-Hub located in Istanbul. Hyderabad is strategically located for India and South Asia region, and evolved into a surging economic centre housing India's first airport-based Free Trade Zone and a growing Aerotropolis. The dedicated wide-body cargo aircraft connectivity is expected to provide a boost to the airport's position cargo hub. ”The launch of the freighter operations by Turkish Cargo comes as a significant achievement for RGIA that has already seen an increase in freighter operations in the recent past. This new connection marks the

Engineering Exports to Turkey to grow

growing importance of Hyderabad in general and RGIA in particular, on the global cargo map,” said SGK Kishore, CEO – GMR Hyderabad International Airport Limited (GHIAL). According to the RGIA sources, Hyderabad Airport is all-weather worldclass airport with Code-F (A380 compatible) runway and apron and integrated cargo terminal with a capacity of 150,000 metric tonne annually scalable to one million metric tonne. It houses India's first Pharma Zone that offers temperature-controlled Truck-Dock to airside environment. With the State-of-the-art facilities like Envirotainer base (temperature-controlled ULDs), AFS (Air Freight Station) connecting Nagpur region and RFS (Road Feeder Service) network providing multimodal transport connectivity, RGIA is well on its way to achieve its vision of becoming the logistics hub for India and South Asia Region. The airport sources also informed that while air cargo volumes in India have grown at a compounded annual growth rate (CAGR) of 5.9 per cent since 2006-07, RGIA recorded over 10 per cent CAGR. RGIA currently manages over 1700 air traffic movements a week serving all the major GDP producing areas of the country, as well as the world.

Turkey was an impressive 81 per cent during this period. MAKTEK Eurasia is one of the most important exhibitions for the manufacturers of machine tools, the basic production of the machinery and manufacturing industry. India's capabilities in the high value added Machine Tool Sector and the fact that Turkey was selected as one of the focus countries by the relevant industry associations in IMTMA (Indian Machine Tool Manufacturers' Association).

n order to further penetrate into a fast growing Turkish market for Indian engineering and technology products and other countries in the neighbourhood, Engineering Export Promotion Council India, now known as EEPC India, decided to participate in the 'MAKTEK Euroasia' in Istanbul, billed as Turkey's flagship platform for global engineering firms, between October 14-19, 2014.

“The last few years have witnessed a complete turnaround in the way India is perceived by the global community. It has come to be known as the country which can produce high-tech engineering and technologically advanced products and has emerged as the supplier of preference to several top global manufacturing giants,” said Anupam Shah, Chairman, EEPC India.

Turkey is among the top 10 destinations of the Indian engineering exports with shipments exceeding USD 750 million in the April-August period of the fiscal 2014-15. The annualised growth of engineering exports to

During the fiscal 2013-14, India exported about USD 62.22 billion worth of engineering goods, 9.51 per cent higher than USD 56.81 billion in 2012-13.

Sept-Nov2014 |

National News

Safeducate and Tata Institute tie up to supply

skilled manpower Safeducate is a firm specialising in supply chain & logistics training, was established in 2007, with an aim to meet the continuously evolving needs of the workforce of the supply chain & logistics industry of India.

MoU was signed by Divya Jain, CEO, Safeducate in the presence of TISS Director, Prof. S Parasuraman and Dy. Director, Prof. Neela Dabir. Elaborating on the MoU Jain said, “Safeducate has been in the field of training and skilling for over 7 years now. This partnership with one of India's foremost education center will help us get supply chain education to a coveted position, as well as create courses that are not just market driven but also aspirational for students.” Safeducate is a firm specialising in supply chain & logistics training, was established in 2007, with an aim to meet the continuously evolving needs of the workforce of the supply chain & logistics industry of India. Speaking on the occasion Parasuraman asserted that TISS is leading a skill development revolution through multiple types of interventions in the area of skilling of unemployed and school dropout youth in India. Apart from the regular skilling programmes like short-term certification programmes and skill enhancement programmes, TISS is also launching India's first undergraduate degree programme in skilling, called Bachelors in Vocational Education (B. Voc.).

“As a Vertical Anchor (VA) for supply chain & logistics industry, Safeducate will be responsible for an array of activities with respect to this programme. These include conducting skill gap mapping of logistics industry, collaborating with industry associations and players to study future skill demands & trends, as well as designing the course pedagogy, syllabus and course content for all the skill ndia's laeding supply chain & logistics skilling firm Safeducate, programmes,” added Jain. Safeducate will also be responsible which is a part of Safexpress Group, recently signed a for identification of training companies for facilitation of Memorandum of Understanding (MoU) with Tata institute of referred programmes pan-India, tie-ups with industry players Social Sciences (TISS). The company expects this significant tie will help create skilled workforce in the manpower intensive supply chain for on-job-practical training, and mentoring of training companies and skill development centers all across India. & logistics industry.

The company sources maintained that according to the MoU, Safeducate has now become the Skill Knowledge Partner (SKP) of TISS and will drive the supply chain skilling revolution in India. The

“This programme has a unique 'earn while you learn' model, under which the trainee could also earn a stipend during the on-the-job duration of the course,” she highlighted.

Mahindra Logistics partners with IVC to introduce

carriers to serve automobile and two-wheeler OEMs. Commenting on this development Sushil Rathi, Senior VP, Mahindra Logistics said, “As OEMs expand their product lines in India, we see a significant potential for car carriers which are Mahindra Logistics (MLL) recently announced a specially designed to meet a variety of needs, partnership with Indian Vehicle Carriers (IVC) to both in terms of dimensions of the vehicles being be branded as '2x2 Logistics', aimed at outbound carried as well as special handling automotive logistics. Mahindra Logistics will have requirements.” According to him, MLL will have a majority stake in '2x2 Logistics', which will a very specific focus on design innovation in car initially invest in 100 specially designed car carriers in 2x2 Logistics.

'2x2 Logistics

Sept-Nov2014 |

International News Emirates SkyCargo signed a five-year trucking contract with a Dubaibased land transportation service provider for its fleet of trucks which consists of: 12 reefer trailers designed to handle all temperature sensitive commodities; 33 dry boxes and two low bed trucks for handling outsized cargo.

Emirates SkyCargo strengthens

Road Feeder Services

fter moving its freighters to DWC, Emirates SkyCargo has strengthened the link between Dubai International and DWC, through its trucking operations, reinforcing the city's multi-model logistics capability as a growing and popular global cargo hub. Emirates SkyCargo launched its trucking operations on May 1, 2014 with the start of its freighter operating from DWC. Within four months' time its fleet of 47 trucks has facilitated the transhipment of over 108,000 tonne of various commodities from perishables to odd sized cargo between Dubai International Airport and Dubai World Central (DWC). Presently, Dubai ranks fifth globally measured by air cargo traffic, thanks to its strategic location between East and West within 8 hours flying time of two third of the world's population. The emirate is one of the fastest growing cargo hubs in the world. Its central position, coupled with the growth of Emirates airline, and increased popularity of air cargo transportation, saw cargo volumes reaching record levels in 2013 with 2,435,567 tonne of air freight passing through Dubai International, up 6.8 per cent compared to 2,279,624 tonne recorded during 2012. Over 125 airlines serve the two airports in Dubai, facilitating the movement of passengers and cargo to and from 260 destinations across six continents. Sept-Nov2014 |

â&#x20AC;&#x153;Our decision to move freighter operations to DWC was a strategic move that enables us to better tap and support Dubai's growth. We now have a dedicated facility for our freighters which allow us to grow our fleet size and meet our growth requirements,â&#x20AC;? added said Nabil Sultan, Emirates Divisional Senior Vice President, Cargo, Emirates. Emirates SkyCargo has introduced road feeder services to facilitate the movement of cargo between the two airports for smooth cargo operation. Emirates SkyCargo signed a five-year trucking contract with a Dubai-based land transportation service provider for its fleet of trucks which consists of: 12 reefer trailers designed to handle all temperature sensitive commodities such as perishables, flowers, and pharmaceuticals; 33 dry boxes for all general cargo; and two low bed trucks for handling outsized cargo including aircraft engines, cowlings, and machinery. Each of the reefer trailers and dry boxes has the capacity to accommodate up to 28 tons. Emirates SkyCargo DWC terminal is equipped to handle 700,000 tonnes per year, and features advanced technology, including a fully automated material handling system which is one of the world's first to have an automated Unit Load Device (ULD) that enables quick transfer of six ULDs simultaneously Presently, Emirates SkyCargo provides belly

hold cargo services to more than 140 destinations around the world using cargo hold capacity in Emirates' fleet of over 225 aircraft, in addition to over 50 scheduled freighter services. Emirates operates a fleet of 13 freighters, 11 Boeing 777 Fs and two Boeing 747-400 ERFs, with a further of two B777s on order, one of which will arrive in November 2014, and the other in August 2015.

Cover Story

AAA & CII Organise Seminar in Ludhiana

on Importance of AFS & Logistics Ratan Kr. Paul

sia Aviation Associates (AAA) and Confederation of Indian Industry (CII) organised a national level seminar on “Importance of Air Freight Stations & Logistics” with an objective to sensitise the industry in, Punjab on the potential and issues in developing Air Freight Station policy which is aimed at boosting exports especially from Tier II or Tier III cities. The event was addressed and attended by about 100 eminent personalities from the air cargo logistics industry from across the country. Welcoming the industry stake holders D L Sharma, Past Chairman, CII Punjab State Council & Director, Vardhman Textiles Limited highlighted the issues faced by the local Industry especially the Export oriented units in shipping their consignments on time as also receiving goods & machinery imported from other parts of the globe. He stressed on the need to create world class infrastructure and simplification of policies and rules /regulations related to consignments. M Kannan, Economic Advisor, Ministry of Civil Aviation, Government of India was present on this occasion to deliver keynote speech. In his address he outlined the broad policy contours whereby Government of India is planning to setup Air Freight Stations in Tier II & Tier III cities, which are important from the point of view of manufacturing and where commercially active airports cannot be developed. He emphasised that AFSs in locations like Ludhiana will act as facilitators where all the legal/ paper works, custom clearances etc related to export of goods will be done in a simplified manner. “In line with the Government of India's commitment to build infrastructure for efficient logistics operation the Ministry of Civil Aviation is taking all efforts to create strong infrastructure for both domestic and international cargo operations across the country, to bring down the logistics costs,” Kannan said. MoCA's capacity building initiatives include both upgradation of old infrastructure and creating new off-airport infrastructure. “We should take note from the success story of ICDs and CFSs created for maritime cargo. Connect the airports with manufacturing and consumption hubs and reach out interior Sept-Nov2014 |

parts of the country. And, AFS is being created to reach that goal.” He believes that the comprehensive AFS guidelines from the Government would help industry stakeholders to venture into this field with confidence. He also pondered on the government's policy on remote area connectivity and traffic disbursement from metro cities to non-metro cities and towns. “AFS can be anywhere in the country— it may be Brown Field or Green Field. The regulatory agents have to take care of the cargo operations to and from AFSs, who need to be registered with the Air Cargo Logistics Promotion Board, set by the Ministry of Civil Aviation,” Kannan clearified. Earlier while setting the context of the seminar, Prof Dinesh Kumar, Managing Director, Asia Aviation Associates remarked that as the Prime Minister of India has ambitiously launched the “Make in India” programme, whereby the focus is to give impetus to manufacturing in the country. Air freight and logistics is definitely going to play a major role and especially for hinterland, in the states such as Punjab. “Air Freight Stations hold the key to be integrated in the National Logistics Network, Dedicated Freight Corridors and Smart Cities as feeders to the major gateways of trade, to boost exports and providing National & International linkages to the local manufacturing Industry,” he said. He also reiterated Asia Aviation Associates' commitment to reach T-II and TIII cities, with an objective to create awareness about importance of promoting world standard aviation and logistics infrastructure. The Seminar was also addressed by industry stalwarts like Tushar Jani, Chairman, CSC India; Pradeep Panicker, CCO, Delhi International Airport Limited; Ajay Nair, Chairman, CII Ludhiana Zonal Council; Sumanpreet Singh, CII Punjab Head; Rajesh Verma, President, Ludhiana Customs House Agents Association; Vipin Vohra, National Committee Member, FFFAI; Sanjiv Edward, Cargo Head, DIAL; Parvinder Singh, MD, Hans Infomatic; Sujoy Kishore, Cargo Sales Manager-North Region, Air India; Srinivas Sattiraju, CEO, Delex Cargo Limited; Amit Thapar, President, Ganga Acrowools Limited; K Prabhakaran, Senior GM, CONCOR; Aditya

Gupta, Zonal Business Head-North, DIESL; Ramesh Dwivedi, MD, VR Logistics and Rajesh Davral, National Head, Ocean Services, ExpanLogistics. In his speech, Jani emphasised on the importance of creating off airport facilities like AFSs. He, however, maintained that the AFS Policy should also take care of the interests of the existing capacities available with the airports. “For smooth cargo and logistics operations across the country, we need to establish an integrated, multimodal and nationwide transport grid. It would reduce transit time and transaction costs drastically to make our products competitive in the world market. Also, it would create new business opportunities for manufacturers and service providers in the country,” stressed Jani. Welcoming the MoCA's initiatives for developing the air cargo infrastructure, Vohra appealed to take a holistic view on AFS. “There should not be any restriction against setting up of AFSs as far as its location/distance from airport is concerned,” he advocated. Panicker shared the world class infrastructure that has been created at the Delhi International Airport for cargo handling and facilitating hassle free and safe movement of consignments that transit through the Delhi International Airport. “Off airport facilities like AFS is not about decongestion of airports. It is for generating additional cargo from hinterlands and manufacturing hubs without any hassles. There is a tremendous need to create awareness among users and service providers to create right perception on AFS,” supplemented Edward. He also cautioned that the “Make in India” appeal is incomplete without an effective logistics infrastructure. Edward appealed for a pragmatic approach and strong collaboration between industry stakeholders to make the infrastructure initiatives from government and private players a success. Sept-Nov2014 |

Logistics services

Delex Explores Opportunity In Ludhiana To Start Freighter Services Change of approach in Customs assessment processes between the Ludhiana Port vs Delhi Port, which sometimes makes the manufacturers to choose Delhi over Ludhiana for end clearance, due to which the logistics focus shifts to Delhi, said Srinivas Sattiraju, CEO, Delex Cargo India Private Limited.

ith so much of manufacturing focus and flow of exports as well as imports, Ludhiana is already a must-have destination on every logistics company's India network plan. In addition, the Government's increased focus on promotion of “Make in India” more and more logistics companies would be attracted to come and setup a major base here in Ludhiana, observes Srinivas Sattiraju, CEO, Delex Cargo India Private Limited. In Ludhina, Sattiraju finds an opportunity for operating a Cargo Freighter Shuttle between Ludhiana Airport and Delhi Airport, through which the local industry is directly and seamlessly to the rest of India and the world. “Ludhiana, known to the world as the ”Manchester of the East” says it all about its manufacturing prowess,” he said. He also finds tremendous opportunity that might develop for large project logistics as many defense manufacturing units likely to come-up in Ludhiana under the current government's drive to bring-in defense manufacturing to India. On the flip side there are many bottlenecks when executing a logistics process, either by the exporter/importer or by the logistics companies. Some of the examples are: (a) absence of a sanctioned position in Ludhiana for the officer issuing fumigation certificate or quarantine certificate, delaying the export or import process as the freight forwarder or CHA agent has to travel 40 kms to get this done from a nearby location where the office is

Sept-Nov2014 |

available, (b) change of approach in Customs assessment processes between the Ludhiana Port Vs Delhi Port, which sometimes makes the manufacturers to choose Delhi over Ludhiana for end clearance, due to which the logistics focus shifts to Delhi. However, in his opinion, most of these are around various legal and statutory matters. Otherwise, there is not much of an infrastructure challenge in Ludhiana in terms of availability of warehouses, yards for containers etc. Even the road connectivity to Delhi is much improved over the years, reducing the travel time between Ludhiana and Delhi, as compared to what it was a few decades back. Benefits of AFS According to Sattiraju, AFS services at Ludhiana will surely play a pivotal role in ensuring seamless connectivity to the air, from Ludhiana itself. An AFS setup will also help airlines plan better as they will get to know about the cargo booked at AFS, even before it reaches them in Delhi airport. Early clearance at AFS Ludhiana and movement to Delhi Airport will facilitate exporters to move their shipments and connect to Cargo flights on time and adhere to their customer's delivery schedules. “Overall an AFSs, when implemented with clear policy framework and total support from all departments concerned, such as Customs, Environment, Foreign Trade etc., will be a definite boost to the trade as well as the logistics industry,” he maintained. He was of the view that the government, while issuing approvals for AFS players, should ensure that only serious players with adequate land or enough capital, coupled with established business experience in managing CFSs, ICDs, Bonded WHs etc., are given approvals so that the policy will get implemented in its true form and to the benefit of the industry for which an AFS policy is formulated.

Users & Technology Service Providers

Start import facility at Ludhiana AFS According to Amit Thapar, President, Ganga Acrowools Limited, Ludhiana has great manufacturing base of almost all kinds of industries like engineering, textiles, machine tools, supported by packaging and other industries – with good availability of electricity, labour helps . In his opinion, import is a big opportunity untapped yet and Charter cargo would be another area to explore. However, there are some areas of concerns that need to be addresses to harness the potential to a greater extent. There are absence of the trains from main port, present condition of the National Highway, and non functional airport. “Improve road and rail infrastructure, remove multiple taxation (introduce GST as soon as possible) and start import facility at AFS,” Thapar suggested. Amit Thapar

Develop and Make Operative Ludhiana Airport

Ajay Nayar, CEO, FMI Limited, said that despite Ludhiana is a major manufacturing hub, clearance of export cargo is not smooth and manufacturers and exporters/importers are facing lot of problems. As a result, they are completely depending on air cargo clearance at Delhi airport. Need is to depute more trained customs officials in Ludhiana. “Efficiency and adequate manpower are major issues here. The AFS in Ludhiana, which is operated by GMR team, should also put special emphasis on efficiency,” said Nayar. In addition, the AFS operators should also be very careful about costing. Nayar also urged for development of Ludhiana airport. “Business travel is hugely suffering in Ludhiana, resulting in less growth of export. Our buyers are facing logistics problem to reach this destination without hassles,” explained Nayar. Ajay Nayar

Common technology Platform should be The Goal Parvinder Singh, MD, Hans Infomatic, the leading technology service providers for air cargo and logistics, maintained that albeit Ludhiana is prime destination for manufacturing, it may face serious problem if infrastructure issues like required land for expansion of the hub is not made available and technology services for smooth transaction is not utilised. “It is pertinent to mention that now a proper utilisation of technology is making huge difference in the complete supply chain management system. Accordingly, the stakeholders in Ludhiana's manufacturing and logistics industry have to be well equipped with the required technology to operate and transport cargo on time,” said Parvinder Singh, MD, Hans Infomatic. He also maintained that there might be some other manufacturing hubs compete with Ludhiana thanks to the benefits provided by the respective State Governments. “Overall, the connectivity is good to transport cargo to and from Ludhiana region by Air (via Delhi), Rail and Road. And, of course, the AFS would further expedite the process,” believes Singh. Parvinder Singh Sept-Nov2014 |

Trade Associations

Focus Should Be On Both Inbound

And Outbound Air Cargo Movement

The Customs should have priority clearance procedure laid down for air shipments and ensure same day clearance. Operators should resort to time bound movements irrespective of cargo volumes.

udhiana is the industrial capital of Punjab and Government's attention is required to create certain infrastructure for facilitating it as manufacturing hub and bring it in line with PM's idea of “Make in India”. Rajesh Verma, President, Ludhiana Customs House Agents Association provides more insights. Ludhiana is primarily known for its manufacturing activities in the field of hosiery, yarn, shawls, bicycle parts, hand tools, auto parts and other light engineering goods. It is fast becoming center for agri and processed food industry. Close to Ludhiana is Jalandhar which is hub for sports goods, hand tools, Leather and other light engineering goods. According to Verma, there are tremendous opportunities for Air Freight Carriers and Logistics Companies. This can be seen as parallel to the growth in Container Freight Stations in Ludhiana. From one CFS/ICD in 1990 to five now operating CFSs with two are having railway sidings. Two more private CFSs are about to start in coming months. Almost all private rail operators are already operating besides CONCOR. With Ludhiana's growing manufacturing base, requirement for Air Freight are growing each day and specially with hosiery goods, sample shipments. “However, focus need to be on both inbound and outbound air cargo movement for having benefit both in terms of cost and speed,” said Verma. Commenting on the challenges Verma maintained that manufacturers are already feeling the heat and are having disadvantage of lack of electricity and expensive electricity, nonavailability of labour, higher land prices when they compare themselves with adjoining states like Himachal, Haryana, J&K. Sept-Nov2014 |

Poor Roads in industrial areas also add to logistics costs. He, however, commended that AFSs is very good way of providing safe, economic and faster cargo movement. “Ludhiana trade has always welcomed new ideas and as AFSs are still in infant stage and is going through initial hick ups but soon this will be a success when all stake holders like AFS operators, airlines, Customs Brokers, ICD operators and Customs jointly address the issues and facilitate air cargo movement from Ludhiana,” added. Verma believes that to make AFS real success in Ludhiana, definitely stakeholders need blessings of regulating agencies and policy makers and for this it is important to have presence of allied agencies like PPQ, Wild Life Officials, Animal Quarantine, Assistant Drug controller and certified labs etc. for early clearance of cargo. The Customs should have priority clearance procedure laid down for air shipments and ensure same day clearance. Operators should resort to time bound movements irrespective of cargo volumes. The Policy makers need to review the FTP w.r.t. port restrictions as Ludhiana is not designated port for kind of imports like seconds and defectives HR/CR sheets, Cosmetic goods etc. “We expect with the new Government new initiatives be taken to increase the facility of clearance of goods at the point of their use whereby controlling transactions costs. Customs Officials posted at ICD locations normally have Central Excise exposure, and they must go through short term training programme of 2/3 days at major ports like Nhavasheva/Chennai not only to know how to handle work faster but also for uniformity of customs practices at all Customs Stations,” Verma recommended.

Logistics Services

DIESL Plans Big For Punjab, Large Warehouses To Be Set Up Fy '15-16 Ludhiana has emerged as the leading manufacturing location in the upper North India. The manufacturing sector at Ludhiana has a large potential for domestic as well as international markets, observes Aditya Gupta, Zonal Business Head, North India, Drive India Enterprise Solutions Limited (DIESL).

upta pointed out that Ludhiana specialises in certain commodities like textiles, sports goods, engineering goods, cycle, farm commodities where they are best in the country. Further Ludhiana is in the middle of Punjab which is also a very large consumption market. “Punjab is the state of enterprising people. It has a large manufacturing sector as well as a large consumption market. Opportunities galore for all nature of logistics companies – be Air and Ocean Freight carriers with large exports and imports in and out of Punjab, transportation and warehousing companies to service large consumer market in Punjab,” Gupta underlined. In his opinion, the key challenge for Ludhiana, however, is its geographical location. It is more than 1600KM from nearest Seaport and almost 300KM from nearest International airport. Further it is geographically quite distant from Eastern and Southern part of India. Due to this, the cost of transportation, at times makes Punjab manufacturing companies uncompetitive. Further NH1 is a crowded highway and accounts for transportation delays. “AFS at Ludhiana can play a vital role on both sides. Imports of capital goods, raw material and trading goods can be brought to Ludhiana, custom cleared and delivered directly to manufacturers and traders,” Gupta said. He also highlighted that with its vibrant farming sector, Punjab has a great potential of exporting agri-

commodities. These commodities can travel from farm to AFS and be exported with minimal delays and hassles. Recommendations l Presence

of Customs at AFS and ICD. Preferably round the clock or in two shifts

l Possibility

of express transport between Ludhiana and Delhi

l Connectivity

of ICD Ludhiana by container trains to Mundra and Nhava Sheva ports

l · Availability

of empty containers of shipping lines

at ICD l · Availability

of ULD and Pallets of the Airlines at

AFS. l · Offices

of Shipping Lines and Airlines at Ludhiana.

l · Airlines

and Shipping Lines offering rates in line with Delhi location

l · Availability

of other agencies apart of Customs at AFS and ICD.

DIESL's Plans for Ludhiana “DIESL is mainly into business of warehousing and Secondary Transportation. Considering the large potential of the region, we are in process of building large warehousing facility near Ludhiana which will service the key markets of Ludhiana and Chandigarh and rest of Punjab. This facility should be up and running in early part of next Financial Year. Further we are in process of deploying dedicated fleet of vehicles to service entire Punjab on overnight basis,” unveiled Gupta.

Aditya Gupta Sept-Nov2014 |

Logistics services

Regular Bonded Trucking Can Make AFS Successful Ramesh Dwivedi

Local freight forwarders, CHAs need to come together and appoint an appropriate body where they try to find a solution to these and other issues efficiently.

udhiana's dry port (Dhandari Kalan) is the first/last Exim terminal of North India with rail connectivity to all major sea ports of India. In addition, Ludhiana geographically is just around 300 KMs by road to Delhi which is a major transit point for air cargo. This can be seen as an advantage to this manufacturing hub, feels Ramesh Dwivedi, MD, VR Logistics. Dwivedi observed that previously huge volumes of air cargo from this region was being moved to Delhi and exporters/importers here used to prefer those forwarders who were established in Delhi rather than giving a chance to the forwarders in this region. But with the opening of AFS in Ludhiana, local forwarders can use the fact that they are located in proximity to the manufactures also they have local knowledge in order to secure the cargo. Now cargo can be loaded directly to their flights in Delhi without any further steps. Thus if properly information is spread to exporters in these region people will definitely start moving their shipments from here only. “Of course all nascent industries obviously have their bottlenecks, and in this case, high costs, outdated custom procedures and poor infrastructure being some of them. Local freight forwarders, CHAs need to come together and appoint an appropriate body where they try to find a solution to these and other issues efficiently,” he maintained. According to Dwivedi, the main issue with the AFS

Sept-Nov2014 |

here is the air cargo is not moving out of Ludhiana for Delhi on a regular or fixed schedule. In case of air cargo delay by even an hour counts but due to these irregularly scheduled movement sometimes cargo gets delayed by days. And the movement of bonded vehicle is unscheduled because they move for Delhi when their cargo load becomes low. “These bonded vehicles should start filling the remaining load for reaching this threshold with LCL cargo. So this way I am sure the AFS will be able to move out at least a vehicle per day, thus reducing on the transit time,” Dwivedi pointed out. Apart from the regular bonded -trucking services, the 24X7 Custom clearance should also be implemented in Ludhiana like the other major air cargo hubs. So that the cargo even if it reaches in night can be cleared on the same night and moved out for loading as soon as possible. “In order to promote air cargo from this region we have had a discussion with people from AFS Ludhiana, and we have promised them that if they start clubbing LCL cargo in their bonded vehicle, we alone can start giving them 15-20 Tonne per day, which I believe will be enough for them to break even on the transportation costs of their vehicle,” he emphasized. In his opinion, this will help the AFS operators moving their vehicle on daily basis by improving the efficiency and quality of their services to promote the air cargo trade.

Sindhu Cargo

Airlines/ Freight Forwarders

to expand operations

in Ludhiana

Ludhiana is famous all over India for its woolen sweaters and cotton tshirts; and most of the top Indian woolen apparel brands are based in Ludhiana.

G Balaraju

Balaraju, MD, Sindhu Cargo Services highlighted the facts that Ludhiana is Asia's largest hub for bicycle manufacturing and produces more than 50 per cent of India's bicycle consumption of more than 10 million each year. Ludhiana produces 60 per cent of India's tractor parts and a large portion of auto and two-wheeler parts. Many parts used in German cars like BMW and Mercedes are exclusively produced in Ludhiana to satisfy the world requirement. It is one of the largest manufacturers of sewing machines. Hand tools and precision industrial equipment is another specialty. For the apparel industry

Fast systematic Logistics solutions need to be in place

“There are big opportunities for air freight carriers in Ludhiana in terms of setting up offices and issuing AWB stocks and they should offer competitive Air outbound and inbound rates into Ludhiana. Logistics companies in this region would be handling the entire exports out of Ludhiana region and would have more competitive rates instead of depending on Delhi as the main hub for freight,” he argued. Commenting on any bottleneck Balaraju observed that currently cargo has to be trucked down to Delhi or Amritsar for custom clearance and airfreight. The air freight rates are quite high from Amritsar and airline options are few. But with custom clearance done at AFS in Ludhiana itself and cargo being trucked down in bonded trucks and goods air freighted from Delhi at competitive rates would facilitate air cargo operations from Ludhiana. Shippers can also negotiate bank documents immediately after customs clearance at Ludhiana. “ There should be express service of transporting bonded cargo from Ludhiana to Delhi and the applicable Airfreight rates from Ludhiana should be at par with the Delhi Airfreight rates and not higher,” suggested Balaraju. Sindhu Cargo Services is planning to expand its operations in this region. The company wants to enhance its presence in both import and export logistics.

ne of the major manufacturing hubs Ludhiana is well connected to other cities of Punjab and with Delhi Airport by road. We believe that providing fast and systematic logistic solution would further boost the productivity in this belt which will definitely help in enhancing business for the entire logistics chain,” said Anand Yedrey, Regional Cargo Manager, South Asia, Middle East & Africa, Cathay Pacific Airways. According to him, due to unavailability of systematic logistics solutions, it makes them dependent on their Head Offices in Delhi or various other locations which delays the process and also leads to limited exposure. Since Ludhiana is very well connected to Delhi airport by road, Yedrey strongly feels that Air Freight Station will definitely help in providing systemised logistic solutions in this area. This is definitely the way forward to safe and faster ways of moving the goods. Commenting on the urgent steps need to be taken by the AFS operators, Yedrey recommend extensive product knowledge to the end user and freight forwarders, promotional rates to meet the competition, flexible rates like per kg, slab rates and full truck rates to make it more competitive. Anand Yedrey Sept-Nov2014 |

Event Album

& Logistics in Ludhiana Glimpses of the Seminar on AFS

Sept 30, Hotel Radisson Blu

Event Report

P has a distinct advantage to serve the vast domestic market in India and should look at developing into hub of all cargo movement within the country as the state takes big strides of economic development. By Vivek Sethi from Indore India it seems is re-writing its script to usher economic development. One of the most essential element, in a federal set-up like India, is the willingness of the state and central government to work in tandem. At the “Madhya Pradesh Global Investor Summit 2014 (MP-GIS 2014)” held at Indore from 9-11 October, both the state and central government presented such united vision, which augured well for the logistics industry as well. “I am confident that Madhya Pradesh will become the main driving force behind India's growth story” said Narendra Modi, Prime Minister, Government of India to a full house which rose in applause at the inaugural session. Acknowledging the state's focus on growth, the Prime Minister stated that the Centre and State must work hand-in-hand to synergise each other's strengths. “The Centre and the state must be supplementary to each other. This would boost our quest for growth. Mathematically, 1+1=2, but I visualize a model wherein the centre and the state work side-by-side. This means it isn't 2 entities working together but them coming together like the number 11, which is greater than 2,” he added. Showing way to grow its logistics industry Modi said, “Madhya Pradesh is a unique state in the central part of our vast country. Unlike other states in India, which are closed to the coastline and look at growing international cargo business. MP has a distinct advantage to serve the vast domestic market in India and should look at developing this opportunity in all possible manners. It should be the hub of all cargo movement within the country. ” The Madhya Pradesh- Global Investor Summit at Indore ended up as an historic turnaround event for the state. As per the official estimates, a cumulative worth of Rs 6,85,000 lakh crore (more than $100 billion) announced at the valedictory session of the MP-GIS on 10 October at the Brilliant Convention Hall. Chief Minister of Madhya Pradesh Shivraj Singh Chauhan addressing the valedictory session at the summit, said, “The MP-GIS 2014 had witnessed unprecedented success in terms of investor interest. The amount of interested investment being drawn to our state kept increasing and towards the valedictory session, it crossed whooping Rs 6,85,000 lakh crore mark. Our team will now touch base with all the interested stakeholders and take this crusade forward. The final report will be presented during the next MP-GIS 2016 at Indore from 19-21 October 2016.” Sept-Nov2014 |

Madhya Pradesh to fuel logistics growth The summit was also addressed by several cabinet ministers including Nirmala Sitharaman Minister of State (Independent Charge) for Ministry of Commerce & Industry, Finance and Corporate Affairs; Piyush Goyal, Minister of State with Independent Charge for Power, Coal and New & Renewable Energy; Thawar Chand Gehlot, Minister of Social Justice and Empowerment; Narendra Singh Tomar, Minister of Mines, Steel, and Labour& Employment; Ananth Kumar, Minister of Chemicals and Fertilizers and Prakash Javadekar, Minister of Environment & Forests and Information and Broadcasting. Assuring complete support from the Centre Government Sitharaman said, “Madhya Pradesh hosted the first ever global investor meet in line with the 'Make in India' initiative. Looking at the action plan prepared by the state, I hope all the planned investment will convert into actual investments. We are now looking at re-developing the existing industrial corridors in MP into modern industrial corridors for the nation.” Goyal shared that going forward NTPC's highest investments will be in the state of Madhya Pradesh. Gehlot, highlighted the governments focus on creating equal opportunities for all. In his address Tomar underlined the forthcoming investment lined up by

“

Madhya Pradesh is a unique state in the central part of our vast country. Unlike other states in India, which are closed to the coastline and look at growing international cargo business. MP has a distinct advantage to serve the vast domestic market in India and should look at developing this opportunity in all possible manners…. Prime Minister

“

The Madhya Pradesh- Global Investor Summit at Indore ended up as an historic turnaround event for the state. As per the official estimates, a cumulative worth of Rs 6,85,000 lakh crore (more than $100 billion) announced at the valedictory session of the MP-GIS on 10 October at the Brilliant Convention Hall.

The CII Business Confidence Index (CII-BCI) for July-Sept quarter FY15, for the second consecutive quarter, has shot up to 57.4, up from 53.7 in April-June quarter and 49.9 in Jan-March quarter this year. During the same quarter last fiscal, the index had touched the all-time low value of 45.7. The number 50 is the dividing line on the index between positive and weak business confidence.

“

NALCO, HCL and SAIL, while praising the Chief Minister of the State for having created an agro, industrial and power revolution in the state. Kumar also announced line up of worth Rs 1,00,000 crore in Madhya Pradesh.

Commenting on the upward march in the value of index, Chandrajit Banerjee, Director General, CII, said “The determination shown by the new government at the Center to provide an impetus to growth along with reviving the 'feel good' factor has sent the business confidence index soaring for the second quarter in a row.”

With the new government at helm, there has been a significant movement in policy reforms at the central level. However, there is a lag between the centre and the state in terms of policy. The financial capital of Madhya Pradesh, the magnificent city of Indore witnessed the historic rise in the business confidence, in the presence of the Prime Minister of India at the best ever edition of “MP-GIS 2014”.

The 88th Business Outlook Survey is based on responses from over 150 industry members. Majority of the respondents (44 per cent) belong to large-scale sector, while medium scale companies comprise another 12 per cent. Around 38 per cent and 6 per cent respectively are from the small-scale and micro firms. Further, 60 per cent of the respondents are from manufacturing and 36 per cent are from the services sector.

“Global sovereign ratings agencies are once again gearing up to upgrade India. This is a testimony of the fact that we are growing again,” he added to a huge applause by the audience. Indicating a sharp improvement in the business sentiment the survey by the national partner at “MP-GIS 2014”, CII observes that business confidence is moving up. The CII Business Confidence Index (CII-BCI) for July-Sept quarter FY15, for the second consecutive quarter, has shot up to 57.4, up from 53.7 in April-June quarter and 49.9 in Jan-March quarter this year. During the same quarter last fiscal, the index had touched the all-time low value of 45.7. The number 50 is the dividing line on the index between positive and weak business confidence.

Sept-Nov2014 |

Government Policy

Trade Policy 2014-19: Exporters urge for e-commerce benefits The Foreign Trade Policy (2014-19) to accelerate exports provokes lot of expectations among the exporters community in the country. FTP has specific focus on manufacturing sector to fulfill the the Prime Minister Narendra Modi's dreamâ&#x20AC;&#x201D; 'Make in India'. InfraLOG presents major recommendations of the umbrella organization the Federation of Indian Export E-commerce According to FIEO, E-commerce has emerged as an important marketing tool for micro and small exporters. E-commerce transactions have touched USD 1 trillion mark world over. India has crossed USD 2 billion in 2014. Such portals provide an extra marketing arm for MSMEs and the linked payment gateway ensures payment without any risk to exporters. Presently exporters exporting through e-commerce are not entitled for any export benefits as it is not recognized as exports. It is suggested that Shipping Bill for E-commerce transaction may be simplified so as to give boost to this sector and e-commerce shipments may be made entitled for all export benefits. Indian Branded Product Scheme A country is known by its brands. Branded Products always fetch better price than their unbranded counterparts. It is therefore imperative to promote the export of Branded Products. It is suggested to introduce Indian Branded Product Scheme under Chapter 3 of FTP whose objective will be to promote export of Indian branded products, manufactured in India, by way of offsetting the cost of brand building in international market. Export of branded products will enhance India's image in world market. Higher Budget Allocation under agri infrastructure Agri Infrastructure Incentive Scrip is available to Status Holders exporting agricultural products for import of capital goods/ equipments like Cold Storage Units; Pack Houses; Reefer Van; Containers etc. The present allocation of Rs. 100 crore only for all status holders is grossly insufficient. Further limited transferability has reduced the utilization of the scrip. Lack of cold storage facilities; pack houses etc leads to wasting of large proportion of agricultural products. Availability of such facilities will reduce the wastage which will result in enhanced exports of agricultural produce. It is therefore suggested to allocate higher fund (say minimum Rs. 1000 crores) under the Scheme. The scrip may also be made fully transferable for the wholesome objective of reducing the wastage of agricultural produce. Sept-Nov2014 |

Incentivisation of Air Transport Services

additional cost burden to the exporter.

Air transport plays a vital role in enhancing tourism in the country in addition to the supply of cargo, which in turn increases the flow of foreign exchange into the country.

It is suggested that DGFT should suggest to Customs for removing the verification process and allow direct utilisation of above script. This will help in reducing the transaction cost.

Passenger Transportation Services, Freight Transportation Services and Supporting Services for Air Transport were included in Appendix10, which were eligible for SFIS till 31.12.2010. Since 1.1.2011, services notified in Appendix-41 became eligible for SFIS, which did not include the above services. However, the same services in the case of Maritime Transport were included in Appendix-41 for SFIS benefit.

Cutting of Commission up to 12.5% in FOB value of exports

It is suggested that Passenger Transportation Services, Freight Transportation Services and Supporting Services for Air Transport are also included in Appendix-41 for SFIS benefit.

In the present international business environment, Agency Commission has become an integral part of the export orders. Therefore, it is suggested that Agency commission up to 12.5% should be permitted in all Schemes of the Policy. In simple terms, all benefits/entitlements should be eligible on commission amount.

Incentivisation of Project Cargo Project export promotes both Merchandise and Services exports. Iran, Iraq, Afghanistan, Africa and Middle East have great potential for Project Exports. Incentive to Project Exports would be a step in right direction. It is suggested to introduce a Scheme to incentivize the Project Exports. Such incentive to Project Exports may be given on Net Foreign Exchange earnings. Duty Free Domestic Procurement under EPCG Scheme Increasing import is a matter of concern which is widening the trade deficit. In order to boost the domestic manufacturing and develop new domestic manufacturing capabilities, simplified procedures are required to be put in place. It is suggested that domestic procurement against EPCG be encouraged by exempting payment of Excise Duty rather than first paying and then asking for rebate as is practiced at present. Export Obligation may also be calculated on Duty Foregone in place of Notional Customs Duty. Re-export of defective material Para 4.35 of HBPv1 prescribes the procedure for re-export of defective material imported under DFIA scheme but the similar provisions are not incorporated under Advance Authorisation Scheme. It is suggested that the provisions for re-export of defective goods imported against Advance Authorisation may also be incorporated in the new Foreign Trade Policy. Transaction Cost Issues Duty Credit Scrips are issued by DGFT and transferred to Customs. Now DGFT and Customs are connected electronically on EDI platform. All these scripts are transferred electronically from one Government department to another Government department but at the time of utilization physical verification of all the script is mandatory in Customs it is due to this, utilization is delayed & adds Sept-Nov2014 |

At present, the Foreign Agency Commission upto 12.5% is not allowed for Schemes like Advance Authorization, DFIA, etc. This provision is allowed only to the Schemes under Chapter 3 of Foreign Trade Policy.

Suo Moto facility for payment of Customs The facility of payment of Customs Duty plus Interest suo-moto may be available to exporters holding Advance /DFIA or EPCG authorisation ,where he feels default in export obligation rather than waiting for payment of duty and interest after calculation of the same by DGFT which, at times, takes more than 3 to 6 months adding to the interest burden of the exporters. Delay in Clearances of shipments due to nontransmission of data/details At times, clearances of shipments are delayed by Customs due to delay/pending transmission of data/details of the Authorisations. Exporters have not only to bear demurrage charges which increases the transaction cost, but the whole planning of execution of the export orders are disturbed leading to unpleasant relationship with the foreign buyer and sometime cancellation of the export orders. It is suggested that clearances of import-export shipment should be allowed pending transmission of any message from DGFT to Customs. Involvement of States in Promotion of exports All the export products are produced in states and it becomes very essential to rope in states in the promotion of exports. Since there is no revenue earning in exports, rather exemption on various taxes, the state government may not find it very important activity. The Ministry of Commerce needs to take a lead in bringing all states in the main stream by emphasizing the importance of exports by way of increasing employment generation which leads to increasing economic activity. The Scheme for States may also be formulated wherein states may be rewarded for their export promotional efforts by giving 1 per cent of total exports from the state.

Emerging Companies

Ahmedabad Air Cargo Complex:

The success story of GSECL GSEC Limited is a public limited company registered in 1965. The company was established as Gujarat State Export Corporation Limited by Government of Gujarat. In 2004, Government of Gujarat transferred its holding of 56.6 per cent in favour of Adani Group which subsequently sold this stake to Entities owned by the current Chairman & Managing Director Rakesh Shah. Rest of the equity is amongst general public/corporates. Subsequent to exit of Government, the company changed its name to GSEC Limited in October 2006.

hen the take-over was complete, the company had many challenges- including excess manpower after years of inefficient operations and diminishing activities, mounting losses (FY03 the losses were Rs 234 Lacs), huge dissatisfaction of customers at air cargo complex, flat cargo performance and very low morale of employees after uncertainty over privatisation.

dyes, intermediates, fruits and vegetables. It also carries out domestic trading in various products. Fruits and vegetables are primarily exported to UK and Middle East. As an organization, GSEC Limited has built up market intelligence and customer base for fruits and vegetables in countries like UK. This has been achieved by regular exports and deputing company officials to UK for business development.

The management could study the challenges with a perspective of an outsider with their past exposure to various management functions and undertook measures which were unconventional but which proved effective.

The company also is an authorised distributor of POL products of Essar Oil Ltd. Within a few months of beginning this business, it has become one of the top three distributors of Furnace Oil in the states of Gujarat and Rajasthan.

Trade bodies were consulted on their idea about a good air cargo base and their suggestions were taken up for implementation without any reservations/conditions. As a result new material handling equipment were bought, warehouses and office spaces were very meticulously spruced up, cold rooms were set up to handle perishable cargo, ISO certification was obtained after streamlining the processes, an on-line system was put in place replacing over 45 manual registers and office space for trade bodies were created for the first time.

Forthcoming Plans & Programmes

The trade responded very positively and the cargo growth followed despite tariff revisions. The success story continues After having successfully secured a growth path at Ahmedabad Air Cargo Complex, GSEC Limited has established an air cargo complex at Indore international airport after successfully winning a bid from Airports Authority of India Limited. This complex began its operations in January 2007. The company has been awarded Operations and Maintenance of air cargo complex at Vizag Airport for 15 years from Andhra Pradesh Trade Promotion Corporation (APTPC) â&#x20AC;&#x201C; a Govt. of Andhra Pradesh undertaking. The company aims to undertake more and more air cargo complex operations assignments in the year ahead. Other activities of GSEC Apart from its logistics operations, the company also exports Sept-Nov2014 |

GSEC Limited has chalked out plans to grow in areas of logistics and trading. In logistics it had undertaken a project to set up an Inland Container Depot at Ratlam in the State of Madhya Pradesh. This project involves a capital outlay of Rs 50 Crore . Land for this project has been acquired. The Company would continue to expand its operations at air cargo complexes wherever opportunities are available. The company also intends to participate in the forthcoming opportunities in the domestic cargo business. The company aims at becoming an important air cargo logistics provider and other allied activities in the aviation sector including ground handling, aviation academies , FBOs. Etc.

Domestic Air Cargo

AAI Invites Tenders To Build Common User Domestic Cargo Terminals AAI is venturing into the new era of domestic cargo operations with an objective to create the basic infrastructure at AAI airports having potential for air cargo growth by creating Common User Domestic-cum-Courier Terminals

enter into domestic cargo handling operations in a full-fledged manner which can be termed as forward integration at far flung areas/regions for the development of air cargo growth and facilitating the trade in the process.

According to AAI sources, with the opening up of Indian economy, there has been tremendous growth of air cargo of metro as well as non-metro airports with considerable scope for improvement in the basic infrastructure to tap the potential. The potential growth in air cargo movement across the country can be tapped if basic/normal cargo facilities are created at second tier cities in India which can also work on Hub & Spoke Theory essentially required for overall development of all regions in India. Airport development has a direct bearing on the accelerated development of the region and hinterland gets a boost in the process. Accordingly, AAI is proposing to

The sources also said that being the airport operator in the majority of the Indian airports, AAI is venturing into the new era of domestic cargo operations with an objective to create the basic infrastructure at AAI airports having potential for air cargo growth by creating Common User Domestic-cum-Courier Terminals so as to facilitate the cargo growth by creating the basic cargo infrastructure as done for the passenger terminals by AAI at second tier cities in India in the recent past. AAI already has vast capacity of human resources in cargo handling who have the requisite expertise and experience in handling cargo operations which can be gainfully utilised for the organisational benefits. AAI would also be in a position to optimally

n a bid to privatise its domestic cargo operations across the country, the Airports Authority of India (AAI) is inviting tenders from private companies. Meanwhile the TIL (Tender Inviting Letters) have been issued for five airports viz Chennai, Kolkata, Vizag, Madurai and Mangalore. More to follow.

Sept-Nov2014 |

Where GHA has been appointed/going to be appointed Northern Region

Western Region

Southern Region

Eastern Region

Amritsar

Ahmedabad

Chennai

Kolkata

Lucknow

Surat

Coimbatore

Bhubaneshwar

Jaipur

Mangalore

Ranchi

Varanasi

Trichy

Gaya Trivandrum

NE Region Guwahati

Raipur

Calicut Madurai

In order to facilitate the trade/user community and to utilise the redundant passenger terminals where new terminal buildings have been commissioned, AAI would create Common User Domestic Cargo cum Courier Terminal

Vizag Srinagar

Pune Goa Civil Enclave Airports

utilise its old redundant /un-utilised domestic passenger terminals by converting them into a cargo facility after carrying out necessary modifications. AAI has awarded the comprehensive ground handling services at some of the major AAI managed airports in the year 2010. Further, AAI is required to explore new avenues for revenue generation to maintain its position as Mini-Ratna-Category-1 inter-alia intensifying the efforts for attaining Nav-Ratna status for the organisation. Domestic Cargo Handling-Operating Mechanism In order to facilitate the trade/user community and to utilise the redundant passenger terminals where new terminal buildings have been commissioned, AAI would create Common User Domestic Cargo cum Courier Terminal after carrying out minor modifications since these facilities have city-side and airside access. The domestic cargo movement presently at these airports has been managed from the separate warehouses allotted to individual airlines where multiple agencies operate which is a potential security hazard and a common user facility for cargo and courier handling would address this issue once and for all. The modus operandi is outlined as under: Where GHA has been appointed to undertake comprehensive Ground Handling functions, AAI would develop Common User Domestic Cargo Terminal by modifying the old Passenger Terminal to

bare minimum as per quantum of cargo for domestic cargo operations under the supervision of AAI cargo officers. Where there is no GHA appointed, being civil enclave airport, the facility may be run departmentally by AAI after minor modifications in the old redundant Domestic Passenger Terminals to handle domestic cargo under the supervision of AAI cargo officers for proper coordination and cargo operations. Wherever no structure for cargo terminal is available, the land may be allotted by inviting open tender to the interested parties through competitive bidding for construction and operation of domestic cargo terminal as per AAI Business Plan. The following airports have been initially identified for establishing Common User Domestic Cargo Terminals (Region-wise), subject to feasibility study.

Kudos to ISRO for its success in

Mars Orbiter Mission

On behalf of our readers congratulates the Scientists of the Indian Space Research Organisation (ISRO) for the success of the Mars Orbiter Mission (MOM), also called 'Mangalyaan'. India's Mars Orbiter

Mission traversed over 650 million km through deep space for over nine months to successfully reach the planet's orbit in September 24, 2014. The Mars Orbiter Mission was launched on November 5, 2013 by ISRO. Sept-Nov2014 |

Air Cargo Infrastructure

Aviation is vital for economy In 100 years, aviation has become an essential part of global infrastructure. It has also been a catalyst for social change and an economic driver. People are networking together in travel, tourism and global supply chains. It is a multiplier of opportunities as one can be anywhere in the globe in less than 24 hours. Similarly the goods can be reached to any destination. It is a creator of ancillary industry, services and employment. By Prof. Dinesh Kumar, MD, Asia Aviation Associates

hile in 2013 globally total world trade increased by 3 per cent and a total of $6.6 trillion worth merchandise was air lifted, over 1/3 of the value of goods traded internationally is moved by air. In terms of weight it amounted to a total of 96 million metric tons (ACI WATR 2014). In India in spite of being 3rd largest economy, a miniscule 1.4 million tons of international cargo, 0.8 million tons of domestic cargo, making a total of 2.2 million tons freight was handled. The target remains to be 7 million tons a year. While the international cargo facilitation has largely concentrated at major metro airports of Delhi, Mumbai, Chennai, Hyderabad, Bengaluru and Kolkata, other smaller emerging airports have a total lack of modern planned warehousing, processing and handling facilities. Emerging Growth Centres Next 15 years i.e. up to 2030, Tier II and Tier III cities and hitherto unconnected remote towns of India will fuel and drive India's international and domestic cargo growth. It is these domestic airports in smaller cities that are showing improvement in terms of increasing manufacturing and trading activities. When international trade increases both international and domestic air cargo grow. Therefore, the air cargo handling facilities need to be developed in these areas together with hinterland facilities to act as feeder grid for ports and airports.

Sept-Nov2014 |

Successful infrastructure models Already successful models of integrated logistics of cargo movement from hinterland to ports have been created. For example Nhava Sheva is served by 20 off-dock Container Freight Stations/ICDs and Chennai Port is served by about 30 Container Freight Stations/ICDs. Due to integration of the hinterland CFS/ICDs the volume of cargo at these major ports has increased multifold. Competition brings quality in service and reasonability in tariffs. Port and Airport terminals should serve as transit points for TEUs/ULDs loading on to ships and aircraft and not for handling/storage. Air Freight Stations Therefore, need is felt to create more Air Freight Stations, with all regulatory and facilitating organisations, similar to the ICD/CFSs, at off airport and in hinterland for international and domestic air cargo. This will generate more cargo from catchment areas. It will promote major gateway airports at Delhi, Mumbai, Chennai, Hyderabad, Bengaluru as Cargo and Transshipment Hubs. India handles only 2-three per cent of TP Cargo whereas at Hong Kong, Singapore, Dubai it is 40-50%. MoCA target is to achieve at least six per cent transshipment cargo by 2020 by providing better ground infrastructure. AFS can provide an integrated chain that offers efficient, economical warehousing and logistics solutions with accountability utilissing cheaper space

outside airports. It can deploy state of art equipment and cheaper manpower at various locations as per demand. It can speed up movement and de-stuffing time of Unit Load Device (ULDs) and becomes a new viable business model. Policy and Procedures for AFS Ministry of Civil Aviation announced the policy in consultation with concerned Ministries of Finance and Commerce, and the guidelines for Public Private Partnership in such a facility. Ludhiana example During the AFS & Logistics Seminar in Ludhiana on 30th September, certain difficulties were pointed out by industry users such as lack of regular transport links from AFS to Delhi, non-availability of regulatory organisations like Drug Controller, Plant Quarantine and inadequate customs functionaries. Some barriers to be removed are identified as Customs EDI system data inflow from-to AFS; Ramp transfers at airports; BCAS procedures on re-screening AFS cargo and approval of Regulated Agents (RAS) and reluctance of Carriers for ULD agreement with AFS. Other Airfreight Stations too, have these constraints and cannot fulfill its objective. A source points out that out of 191 ICD/CFS/AFS approximately 80 are non-functional. Domestic air Cargo A lot of development is taking place on the domestic air cargo scene. Express, courier and e-commerce shipments are growing by 20-30 per cent per annum besides other perishable, valuable and general cargo. A study by Asia Aviation Associates has projected growth of domestic air cargo in India at an average CAGR of 10 per cent until next 10-15 years. At present, the domestic air cargo is 0.83 mmt, 57.94 per cent of the international cargo (1.4 mmt). By the year 2022 it is likely to log 1.97 Sept-Nov2014 |

mmt or 74.75 per cent of international cargo. Potential of domestic sector With new airlines i.e. Air Asia India, TATA-SIA, Air Costa etc., new aircraft (recently Indigo placed a mega order for 250 Airbus 320 aircraft), connectivity of remote areas, substantial flight capacity will be available in the belly of aircraft for domestic air cargo transport. Therefore, better ground infrastructure for handling domestic cargo, new value added commodities taking to air mode will ensure domestic cargo growth more than international cargo. By 2030 it is estimated that the domestic cargo will surpass the international cargo at approx. 4 mmt. Therefore, planned ground infrastructure in the form of common handling facilities for growing volumes of domestic air cargo are needed to be created at domestic airports right earnest to exploit its great potential. Ludhiana airport is also required to be operationalised for movement of air cargo. Conclusion As AFS will promote generation of Cargo and promote major gateways as hubs, these will ultimately become logistics feeder centres to smart cities, Dedicated Freight Corridors and integrate in the National Logistics Network. Government should think of integrating Airfreight Stations with CFS, ICD, SEZ and Industrial Parks as centres of International and domestic Express, courier, cargo feeder Centres. A comprehensive new look at the ground infrastructure both for international and domestic cargo in order to meet the target of $700 billion exports by 2018 and to fulfil “Make in India” in reality is need of the hour. “If an efficient logistics supply chain system is made available, the throughput of cargo handling can be doubled and overall 30% capital can be released.”

IATA's Five-year Forecast

Study & Forecast

shows improvement for Air Cargo The International Air Transport Association (IATA) Airline Industry Forecast 2014-2018 shows that international freight volumes are expected to increase at a compound annual growth rate (CAGR) of 4.1 per cent over the next five years. Emerging economies, particularly in the Middle East and Africa, will be the fastestgrowing markets. According to IATA forecast, this year, more than $6.8 trillion worth of goods, equivalent to 35 per cent of total world trade by value, will be transported around the world by air. An average of more than 4 per cent growth for the next five years would be a marked improvement on the performance of recent years. Since 2011 growth in freight tonnes has averaged just 0.63 per cent per year.

The second fastest-growing market, India, will experience a CAGR of 6.8% to add 622,000 extra tonnes. Bangladesh (339,000 total freight tonnes), Ethiopia (319,000) and Nigeria (276,000) make up the remainder of the top five.

Tony Tyler, IATA's Director General and CEO, however, maintained that despite the positive picture, the overall risks to the economic outlook, and therefore to air freight, remain towards the downside. Trade protectionism is a constant danger. According to the World Trade Organization (WTO), between November 2013 and May 2014 alone, 112 new trade-restrictive measures were enacted by G20 governments. Geopolitical concerns, volatility of oil prices, and competition from rail and sea could also affect this forecast. The air cargo industry certainly cannot afford to be complacent,â&#x20AC;? said Tyler.

compared to today. The UAE will have replaced Germany as the third largest market. The fastest growing international routes will be between the Middle East and Asia, at 6.2% per year. Within Middle East (4.6%), North America to South America (3.9%), and Europe to Southern Africa (3.8%), will also grow strongly. Significant volume imbalances will continue. The imbalance in flows from Asia to North America is estimated to be 1.1 million tonnes in 2018, and from Asia to the Middle East the imbalance will be 0.6 million tonnes. International Freight Developments: The Middle East is forecast to be the fastest growing region over the forecast period with a CAGR of 4.7%. The second-fastest growing market, Africa, will have a CAGR of 4.4%. Asia-Pacific and Latin America, both with a CAGR of 3.8%, will be the joint third-fastest growing markets. The mature markets of Europe and North America will grow at 3.0% CAGR and 2.8% CAGR, respectively.

By 2018, the ten largest international freight markets will be the United States (10,054,000 tonnes), China (5,639,000), the UAE (4,974,000), Germany (4,763,000), Hong Kong (4,648,000), Republic of Korea (3,487,000), Japan (3,480,000), the United Kingdom IATA study observes that to enhance air cargo (2,808,000), Chinese Taipei (2,350,000) and competitiveness, the industry is aiming to cut average transit times by up to 48 hours by 2020. India (2,223,000). To achieve this, air freight is modernising its Iran is expected to be the fastest growing country processes, improving quality and reliability, and (of nations with more than 100,000 tonnes of widening the range of services offered. A key cargo per year) for air freight volumes over the component of modernised processes is the eforecasting horizon with a CAGR of 7.0% per Freight project, which will render air cargo annum. However, it is growing from a low base shipments paperless. As a first step, the industry so it will add just 44,000 tonnes of freight by is adopting the e-Air Waybill (e-AWB). In 2018 for a total of 156,000 tonnes. September 2014 global e-AWB penetration The second fastest-growing market, India, will reached 19.4 per cent, meaning the 2014 experience a CAGR of 6.8% to add 622,000 industry target of 22% is within reach. extra tonnes. Bangladesh (339,000 total freight Forecast Highlights: tonnes), Ethiopia (319,000) and Nigeria (276,000) make up the remainder of the top five. International freight volumes are expected to grow at a five-year CAGR of 4.1%. The United States, China and the United Arab Emirates (UAE) will each be adding more than 1 million additional tonnes of freight by 2018

Another notable growth country will be Qatar. With a CAGR of 5.7% it will be the sixth-fastest growing and it will see 361,000 additional tonnes to take its total freight tonnes to 1,484,000. Sept-Nov2014 |

Trade Opportunities

PM's

Make in India Initiatives

with Japan, China and USA The recent visit of the Prime Minister of India to Japan and USA and the visit of the President of China to India, stimulated the hope of increasing bilateral trade between India-Japan, India-Chana and India-USA in the days to come. InfraLOG presents some significant elements of the initiatives of the Prime Minister of India for the growth of the country's manufacturing and export economy, which in fact would bring in remarkable benefits for the cargo and logistics industry. Visit Japan In his recent visit to Japan the Prime Minister of India, Narendra Modi, urged the Japanese business community to resolve to "Make in India" and assured them that they will receive a conducive business environment in India. Delivering the keynote address at an event hosted by Nikkei Inc. and Japan External Trade Organisation, the Prime Minister said that if India can replicate in India the work culture, governance, efficiency and discipline that exists in Japan, Japanese business will feel comfortable in doing business in India. Stating that huge possibilities for cooperation existed between the two countries, the Prime Minister said India wants to give an environment to Japanese business to make in India, whatever they wished to supply to the world. He highlighted the possibilities of low-cost manufacturing, skilled manpower and ease of doing business that existed in India. Modi invited Japanese investments while hard-selling India as a conducive destination for business particularly for the manufacturing sector. He told the Japanese businessmen that India was awaiting the investments with a 'red carpet' and not 'red tape' as rules and procedures have been eased by his government. Giving some examples of the huge potential for business in India, the Prime Minister said 50 cities were in the queue for metro trains, and a huge demand existed for electronic goods. Nowhere else in the world will you find the combination of democracy, demographics and demand that exists in India. He also spoke of emerging possibilities due to the Digital India mission and a thrust on solar energy. "There has been talk about billions and millions. But there has never been talk of trillions," he said, referring to 3.5 trillion Yen (USD 35 billion or 2,10,000 crore) promised by Japan to India through public and private funding over the five years for various works, including building of smart cities and cleanup of the Ganga river. To respond to Modi's call, meanwhile, Japan promised to provide USD 35 billion to India over the next 5 years for developmental projects. India and Japan also decided to enhance cooperation in defence and other strategic areas

Sept-Nov2014 |

and also signed five pacts covering defence exchanges, cooperation in clean energy, roads and highways, healthcare and women issues with an objective to take their relationship to newer level. Japan also lifted ban on six Indian entities including Hindustan Aeronautics Limited (HAL) which had been imposed in the aftermath of 1998 nuclear tests. In Kyoto, a pact was signed under which Modi's Lok Sabha constituency Varanasi would be developed on the pattern of Kyoto 'smart city' with the help of Japan. The Prime Minister, Narendra Modi and the Prime Minister of Japan, Shinzo Abe at the Joint Press Remarks, at Akasaka Palace, in Tokyo, Japan

China Initiatives On the visit of the President of People 's Republic of China, Xi Zinping to India Modi said, “We are two ancient civilisations with a long history of engagement. China is our largest neighour, and India`s neighbourhood occupies a special place in my national development plans and foreign policy. Today, we are the world`s two most populous countries and its two largest emerging economies. We are both undergoing economic transformation on an unprecedented scale and speed. “

He believes that both the country can reinforce each other`s economic growth. “We can contribute to peace, stability and prosperity in our region. And, we can give new direction and energy to the global economy,” he added. Modi expressed concern at the slowdown in trade and the worsening trade imbalance. I sought China's partnership in improving market access and investment opportunities for Indian companies in China. He

also maintained that President Xi assured India of his commitment to take concrete steps to address both the countries' concerns. Modi invited Chinese investments in India`s infrastructure and manufacturing sectors and spoke about the Government of India's new policies and administrative steps in this area. “I am pleased with the agreements on two Chinese industrial parks in India and a commitment to realize about 20 billion U.S. dollars of Chinese investments in the next five years. This opens a new chapter in our economic relations. We have also agreed on specific steps to enhance cooperation in upgrading India`s railways sector,” he pointed out. Modi also discussed India`s concerns relating to China`s visa policy and Trans Border Rivers. “We discussed regional connectivity and the proposal for the Bangladesh, China, India and Myanmar Economic Corridor. Located at the crossroads of Asia, India believes that reconnecting Asia is important for its collective prosperity,” he said.

The Prime Minister, Narendra Modi shaking hands with the Chinese President, Xi Jinping, after the press briefing, in New Delhi on September 18, 2014.

Sept-Nov2014 |

Trade Opportunities

PM Modi and President Obama in USA

Strengthening the

Relationship with USA During the visit of the Prime Minister of India to USA, PM Narendra Modi and the President of the United States of America Barack Obama marked their first bilateral summit. The two leaders extolled the broad strategic and global partnership between the United States and India, which will continue to generate greater prosperity and security for their citizens and the world. They endorsed the first "Vision Statement for the Strategic Partnershipâ&#x20AC;? as a guide to strengthen and deepen cooperation in every sector for the benefit of global stability and people's livelihoods over the next ten years. Noting that two-way trade has increased fivefold since 2001 to nearly$100 billion, President Obama and Prime Minister Modi committed to facilitate the actions necessary to increase trade another five fold. President Obama and Prime Minister Modi recognized that U.S. and Indian businesses have a critical role to play in sustainable, inclusive, and job-led growth and development. In order to raise investment by institutional investors and corporate entities, the leaders pledged to establish an Indo-U.S. Investment Initiative led by the Ministry of Finance and the Department of Treasury, with special focus on capital market development and financing of infrastructure.

Sept-Nov2014 |

In this context, the U.S.government welcomes India's offer for U.S. industry to be the lead partner in developing smart cities in Ajmer (Rajasthan), Vishakhapatnam (Andhra Pradesh) and Allahabad (Uttar Pradesh).The Prime Minister will welcome two trade missions in 2015 focused on meeting India's infrastructure needs with U.S. technology and services. The leaders discussed their concerns about the current impasse in the World Trade Organization and its effect on the multilateral trading system, and directed their officials to consult urgentlyalong with other WTO members on the next steps. Theleaders committed to work through the Trade Policy Forum to promote a business environment attractive for companies to invest and manufacture in India and in the United States. The two leaders committed to hold public-private discussions in early 2015 under the Commercial Dialogue on new areas of cooperation, including innovation in advanced manufacturing. They also agreed to reinvigorate the India-U.S. CEO Forum, and welcomed India's offer to host the Forum for the second time in early 2015.

Chambers' Initiatives

FICCI Infrastructure Summit urges for rational tolling policy “The infrastructure situation in the country is dismal; the pace of investment is suboptimal and unless we come out of the subsidy regime and inject substantially more funds into capital expenditure for asset creation, the situation will not look up”- RP Singh, Chairman, NHAI

t is pertinent to mention that the Government of India announced setting up of an institution called “3PL India”, with a corpus of Rs 500 crores to provide support to PPP initiatives. It has been observed that though many of the PPP projects are doing well, a number of projects have achieved very nominal results. Recently FICCI hosted 'India Infrastructure Summit' to discuss the issues and strategies to be adopted for infrastructure development in the country. A Study Paper released by FICCI and EY at the summit unveiled that India's transport networks are severely constrained for capacity. Traffic at newly constructed National Highways find it difficult to pass smoothly through constrained State Highways and Railway has been consistently losing its modal share to roads due to lack of capacity augmentation. Ports do not always have infrastructure for evacuation of goods and rail networks do not link with road networks, for last mile delivery of goods. Tough airport sector is showing reasonable growth, long term traffic forecasts both for passenger and cargo necessitate second and in some cases third airports in the 20-30-year time frame. The Study Paper suggests that to avoid long delays relating to project related clearances, single window clearances for all the critical transport projects is required (subject to a project cost threshold). The theme of the summit was “Transport sector: Convergence & Connectivity “. Speaking at the summit R P Singh, Chairman, National Highways Authority of India (NHAI), however, attributed the perceived failure of PPP projects for developing infrastructure projects to the failure of the people who handle such projects rather than the concept. “The infrastructure situation in the country is dismal; the pace of investment is sub-optimal and unless we

come out of the subsidy regime and inject substantially more funds into capital expenditure for asset creation, the situation will not look up.” He also recommended the need for a rational tolling policy so that the user is not charged arbitrarily, especially where the charge is disproportionately higher in relation to the distance actually travelled. According to him, much of the problem on PPP projects was caused by aggressive bidding for projects, misguided as the developers are by professionals and there is tendency to pass on the risk to the government when the project become unviable. “A major problem, he said, was with interpretation of the Model Concession Agreement (MCA). The bureaucracy has the tendency to look for governmentcentric interpretation of the clauses in the MCA to the detriment of the private sector. It must be borne in mind that a contract if for 30 years and needs constant interpretation and stability,” Singh pointed out. “The biggest problem was the selection of project. No study has ever been done, not even by the Planning Commission, on the optimal road grid required. Basic decisions on these aspects are not taken with care and the tendency is to go on declaring roads as national highways,” he added. Also present on the occasion was Vishwapti Trivedi, Secretary, Ministry of Shiping. In his opinion, PPP by itself was not a bad concept. “If you have the money go for engineering, procurement and construction (EPC) contracts or else build roads through the PPP mode,” he said. K. Ramchand, Chairman, FICCI Infrastructure Committee & Managing Director, IL&FS Transportation Networks Ltd., and Adil Zaidi, Director, EY, also shared their perspectives on the subject.

Sept-Nov2014 |

Industry Events

ACCD sets the tone of the

Festival of Light

On October 17, the Air Cargo Club of Delhi presented a gracious evening to mark the beginning of Diwali— the Festival of Light. A huge number of club members along with their spouses exhibited enthusiasm in élan with traditional theme to add more glamour to this much awaited event, that kick started by the lighting the auspicious lamp by senior members, past Presidents and present President of the club, Yashpal Sharma. Major highlights of the event were melodious songs sung by some renowned singers, dances, spectacular fireworks and delicious dinner.

DIESL organises 'Plant a Sapling Program'

across the country Drive India Enterprise Solutions Limited (DIESL) recently organised a tree plantation drive across India. Some 65 warehouses located in various Tier I & Tier II cities participated in this programme. In two days, more than 392 saplings were planted by 806 employees of DIESL. According to the DIESL sources, this initiative called 'Plant a Sapling Program' (PASP) has been a part of company's annual CSR programme. The campaign was also linked to Tata Volunteering Week (TVW) II which is a group level volunteering programme organised every year by the Tata Sustainability Group (TSG).

Sept-Nov2014 |

The company also organised Blood Donation camps to support TVW II at Arpan Blood Bank (Mumbai, Bhiwandi and Pune), Lions Blood Bank (Delhi and Kolkata), Lhna Blood Bank (Lucknow), Unique Blood Bank (Bengaluru), Red Cross Society (Ahmedabad), etc. Commenting on the company's CSR initiatives Milind Shahane, Managing Director, DIESL said, “As a part of DIESL's corporate sustainability programme 'Prayaas', we have taken up various initiatives for the upliftment of our community and its surroundings including blood donation and tree plantation drives.”

Event Update

8th ELSC Conclave in Mumbai:

Strong platform for networking The 8th Express Logistics & Supply Chain Conclave, which was held on September 24 and 25 at Taj Lands End, Mumbai, witnessed huge gathering of SCM & Logistics industry stakeholders from across the country. Remarkably, nine parallel tracks were running to the main show. conceived & managed by Kamikaze B2B Media, The conclave had two CEO’s round table attended by industry majors.

At this event the much adored “ELSC Leadership Awards” were held on September 24. These awards were presented by Future Supply Chain Solutions. Blue Dart, Mahindra & Mahindra, DHL Express, Tata Motors, DelEx Cargo, Shoppers Stop, TCI Group, Indev Logistics, Tata Advanced Systems, Gati KWE, Deepak Fertilisers, APM Terminals, Tikona Digital, Allcargo Logistics, Legrand India, Cadila Healthcare, Maini Materials Movement, CHEP India; were among some of the award winners.

Sept-Nov2014 |

Transport Infrastructure

An overview of the Transport

Sector

by Planning Commission A High Level National Transport Development Policy Committee (NTDPC) was formed in 2010 under the chairmanship of Dr. Rakesh Mohan, former Deputy Governor, RBI. The Committee presented its Report to the then Prime Minister Dr. Manmohan Singh on March 1, 2014. The NTDPC was set up to assess the transport requirements of the economy for the next two decades in the context of the changes in economic, demographic and technological trends expected at local, national and global levels; and to recommend a comprehensive and sustainable policy for meeting such requirements. The mechanized modes of transport constituting the transport sector in the country comprise Railways, Highways, Coastal Shipping, Airways, Inland Waterways, Pipelines and, in a limited measure, the Ropeways. Their operation and management is characterized by a varying mix of institutional framework, there being no central monitoring authority/institution for regulating coordinated operations and integrated growth of different modes of transport. Even among the modes, only Railways is centrally administered under the Ministry of Railways, Government of India, which provides complete wherewithal for running its freight and passenger services. In the case of Highways, however, while infrastructure like the National Highways, State Highways and other roads are provided and maintained by various Central and State Governments agencies, operations of the vehicles i.e. trucks and buses are mostly privately owned, except for buses operated by State Road Transport Undertakings, mainly in the area of passenger transport. Same is the case with Coastal Shipping and Airways. While the port infrastructure is provided by the Central Government (Ministry of Shipping, Road Transport & Highways) for major ports and by respective State Governments in the case of non-major ports, Coastal vessels are owned and operated by private enterprises. Civil aviation, which was earlier the preserve of the Ministry of Civil Aviation, Government of India, has seen a growing number of private entrepreneurs entering the field of air transport in the wake of increasing pace of economicnliberalization in the country. Inland water transport, despite a long history of relevance as a popular mode of transport, had practically fallen to disuse over time. The Inland Waterways Authority of India (instituted by the Government of India vide IWAI ACT 1985 (82 of 1985) is actively involved with development and regulation of Inland Waterways of the country. Pipelines, mainly used for transport of liquid

Sept-Nov2014 |

fuels and gas apart from ore slurry, present an important expanding mode, operated & managed both by Government and private agencies. In the given situation, while the Planning Commission does weigh modal roles and needs for making investment allocations in the transport sector, different modes do seek to develop as isolated entities within the framework of their individual modal interests. Such a situation would have been in order, except for the implications of individual modal developments not being necessarily in sync with the national economic policy framework for the overall development of the transport sector. Data Availability Constraints: For modes which are managed and/or operated by Government Departments and agencies, operational and cost data can be had with some effort. However, in other cases, availability of data is a major constraint. For example, in the case of Highways, whereas road network information is available from related government agencies, operational data in relation to movement of goods and passengers are just not available and need to be generated through country wide field surveys. Similarly, in the case of Coastal Shipping, while the ports do maintain

data in relation to volumes transported, information in regard to commodity specific origin and destination of traffic flows and cost data are not readily available and field surveys become necessary for the purpose. Need for Fresh Look at Emerging Transport Demand-Supply Scenario: Major quantitative and qualitative changes have taken place in the sector during the past two decades. Driven by the forces of technological innovations and progressive globalization of its business profile, Indian economy has undergone a paradigm shift during the intervening period. Relevant to the transport sector, these changes, broadly, include infrastructure and technological developments with associated growth in performance levels of different modes of transport. Rail network has expanded from 61836 route kms in 1986 to 63327 kms in 2006-07. In the wake of project uni-gauge, major part of metre gauge lines have been converted to broad gauge and the process is continuing, leading to availability of parallel routes for improved operations management. With the phasing out of steam locomotives, diesel and electric traction are the main modes of traction. Electric traction has extended from 6919 route kms in 1986 to 17786 in 2006-07. Capacity of wagons and coaches has also improved owing to design improvements. With increasing demand, Railways' originating goods traffic has shown over three-fold increase, from 255.4 million tonnes in 1986-87 to 795.48 million tonnes in 2006-07.

substantial changes and are likely to change further owing to ongoing and anticipated developments in the transport sector. Formation of National Transport Development Policy Committee The Committee comprised of Secretaries of central ministries, private sector representatives, and eminent persons/experts from the transport sector. The Committee held consultations with State Governments in 2012-13 and also received technical assistance from the Asian Development Bank and the World Bank in its work. The Interim Report of the Committee was earlier submitted to the Government in April, 2012. The Report sets the conditions for a coherent system based transport strategy for the two decades beginning with the 12th Five Year Plan to the end of its 15th. The Report represents new thinking on how to look at different sectors in an integrated fashion and suggests mechanisms and measures for carrying this approach forward in a manner that reduces the resource costs involved.

Likewise, the number of originating passengers has gone up from 3594 million in 1986-87 to 6219 million in 2006-07. Length of roads has increased from 1.72 million kms (including 0.1 million kms of National and State Highways) in 1986 to 3.62 million kms (including roads under JRY Jawahar Rozgar Yojna and 0.2 million kms of National and State Highways) in 2004. Operating performance of Airways and, to a certain measure, Coastal Shipping has also improved. Increasing containerization of goods has given a further boost to traffic. In the emerging scenario, traditional demand-supply linkages, modal options as well as route specific volumes of traffic have undergone

Sept-Nov2014 |

Cargo Performance in September 2014 from Delhi and Mumbai Airport Export & Import cargo tonnage handled at CSIA for the month of August 2014 (Freight in Metric Tons)

Airlines wise exim cargo performance from Delhi International Airport for September 2014 Airlines

Export

Total

Without

Perishable

Export

Import

Total

Cargo

Of %

Airline

Export

Import

Total

Aerologic Air Arabia Air China Air France Bangkok Airways Blue Dart British Airways Cathay Pacific Delta/KLM/Martin Air EL-AL Airlines Emirates Ethopian Airlines Etihad Airways Federal Express Gulf Air Indigo Air Iran Air Jet Airways Kenya Airways Lufthansa Airlines Malaysia Airlines Oman Air Qatar Airways Royal Jordanian Saudi Arabian Airlines Singapore Airlines Spice Jet Srilankan Air Swiss Intl. Airlines Turkish Airlines United Airlines UPS Virgin Atlantic Air India Air Mauritius Egypt Air Korean Air Kuwait Airways Pakistan intl Airlines South African Airlines Thai Airways Yemenia Airways Others Total

0 150 16 517 79 19 967 1201 454 112 2844 806 1183 756 201 194 58 3025 342 1383 415 95 871 18 817 779 45 113 484 598 151 476 267 1045 178 9 85 441 13 314 203 35 108 21867

354 45 6 193 18 143 708 1633 387 75 1782 15 1401 114 115 56 2 2736 13 1407 398 92 794 0 385 865 17 110 400 341 149 560 270 797 13 1 77 318 1 8 327 0 168 17292

354 195 22 710 97 161 1675 2834 841 187 4626 821 2585 870 316 250 60 5762 355 2790 813 187 1665 19 1202 1644 62 222 884 939 300 1036 537 1842 191 9 162 759 14 322 530 35 276 39159

Perishable Cargo (Mts)

(Mts.)

Cathay Pacific

1108

1170

3168

4338 11.52

Emirates

1113

1118

2232

994

3225

8.56

Air India

1133

382

1515

1695

3210

8.52

Jet Airways

1127

112

1240

1548

2788

7.40

Etihad

968

152

1120

1468

2589

6.87

Qatar Airways

916

129

1044

574

1616

4.29

Lufthansa Cargo

671

761

604

1365

3.62

British Airways

744

827

470

1297

3.44

Uzbekistan

638

673

363

1036

2.75

FedEX

441

446

562

1008

2.68

Kalita Air

535

394

729

2.47

Malaysian Airline

440

483

441

924

2.45

Japan Airlines

201

208

498

706

1.87

All Nippon Airways

394

398

282

679

1.80

Virgin Atlantic

329

334

245

579

1.54

Turkish Airlines

301

307

272

519

1.38

Saudia

305

161

466

485

1.29

United Airlines

238

256

175

431

1.15

China Eastern

202

198

400

1.06

Atlas Air

362

0.96

Aeroflot Cargo

314

351

362

0 .96

Air China

166

137

302

0 .80

China Air

125

215

0.57

China Southern

109

192

0 .51

Kuwait Airlines

160

173

0.46

Air Arabia

143

158

160

0.42

Oman Air

129

140

0.37

Asiana Airlines

133

0.35

Mahan Air

115

0.31

Gulf Air

105

108

0.29

Air Mauritius

105

0.28

Sept-Nov2014 |

Domestic air cargo performance at Indian Airports during April-August 2014

SL. NO.

AIRPORTS

AUGUST 2014

For the month AUGUST 2013

AIRCRAFT MOVEMENTS(IN NOS.) For the period April - August % 2014-15 2013-14 Change

% Change

(A) 18 INTERNATIONAL AIRPORTS 1 CHENNAI 2 KOLKATA* 3 AHMEDABAD 4 GOA 5 TRIVANDRUM 6 CALICUT 7 LUCKNOW 8 GUWAHATI 9 SRINAGAR* 10 JAIPUR 11 BHUBANESWAR 12 MANGALORE 13 COIMBATORE 14 AMRITSAR 15 TRICHY 16 VARANASI 17 PORTBLAIR 18 IMPHAL TOTAL (B) 6 JV INTERNATIONAL AIRPORTS 19 DELHI (DIAL) 20 MUMBAI (MIAL) 21 BANGALORE (BIAL) 22 HYDERABAD (GHIAL) 23 COCHIN(CIAL) 24 NAGPUR (MIPL) TOTAL (C) 7 CUSTOM AIRPORTS 25 PUNE 26 VISAKHAPATNAM 27 PATNA 28 CHANDIGARH 29 BAGDOGRA 30 MADURAI 31 GAYA TOTAL (D) 15 DOMESTIC AIRPORTS 32 INDORE 33 JAMMU 34 RAIPUR 35 AGARTALA 36 VADODARA 37 RANCHI 38 AURANGABAD 39 UDAIPUR 40 BHOPAL 41 LEH 42 DEHRADUN 43 RAJKOT 44 JODHPUR 45 TIRUPATHI 46 DIBRUGARH (D) 17 DOMESTIC AIRPORTS (E) OTHER AIRPORTS GRAND TOTAL (A+B+C+D+E)

7040 7644 3582 274 113 14 230 683 830 64 404 37 697 36 0 33 145 346 22172

5884 7219 3118 191 195 10 269 591 244 594 343 30 535 5 0 40 170 406 19844

19.6 5.9 14.9 43.5 -42.1 40.0 -14.5 15.6 240.2 -89.2 17.8 23.3 30.3 620.0 -17.5 -14.7 -14.8 11.7

32845 38220 17333 1210 548 55 1202 3520 3082 515 1898 163 3171 132 0 290 1071 1863 107118

29464 34619 14794 897 697 72 1191 2721 1768 3029 1424 126 2504 62 0 158 956 1666 96148

11.5 10.4 17.2 34.9 -21.4 -23.6 0.9 29.4 74.3 -83.0 33.3 29.4 26.6 112.9 83.5 12.0 11.8 11.4

22725 18280 10017 3641 1047 433 56143

17493 15495 7912 3071 809 487 45267

29.9 18.0 26.6 18.6 29.4 -11.1 24.0

106012 87409 45641 17377 4694 2303 263436

79703 74904 37277 14691 3745 2044 212364

33.0 16.7 22.4 18.3 25.3 12.7 24.0

2312 111 428 669 252 82 0 3854

1719 149 372 311 90 80 0 2721

34.5 -25.5 15.1 115.1 180.0 2.5 41.6

10803 2252 2251 3065 1130 466 0 19967

7877 825 1913 1317 666 520 0 13118

37.1 173.0 17.7 132.7 69.7 -10.4 52.2

554 133 370 564 104 267 147 3 93 31 5 9 1 0 22 2303 119 84591

360 148 299 673 166 207 57 082 63 0 19 1 0 23 2098 143 70073

53.9 -10.1 23.7 -16.2 37.3 29.0 157.9 13.4 -50.8 -52.6 0.0 -4.3 9.8 -16.8 20.7

2705 687 1619 2778 841 1321 488 3 378 564 9 52 4 0 108 11557 567 402645

1937 672 1349 2821 767 939 288 0 361 458 0 78 6 0 123 9799 596 332025

39.6 2.2 20.0 -1.5 9.6 40.7 69.4 4.7 23.1 -33.3 -33.3 -12.2 17.9 -4.9 21.3

Sept-Nov2014 |

INTERNATIONAL FREIGHT FREIGHT (IN TONNES) SL. NO.

AIRPORTS

(A) 18 INTERNATIONAL AIRPORTS 1 Chennai 2 Kolkata* 3 Ahmedabad 4 Goa 5 Trivandrum 6 Calicut 7 Lucknow 8 Guwahati 9 Srinagar* 10 Jaipur 11 Bhubaneswar 12 Mangalore 13 Coimbatore 14 Amritsar 15 Trichy 16 Varanasi 17 Portblair 18 Imphal 0 0 - 0 0 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

AUGUST 2014

For the month AUGUST 2013

19473 3952 1528 131 2189 1831 85 10 0 50 0 23 82 54 428 0 0

18350 3883 1119 193 3088 1549 89 0 17 0 0 81 250 401 0 0

6.1 1.8 36.6 -32.1 -29.1 18.2 -4.5 8 194.1 1.2 -78.4 6.7 -

96046 19760 7256 454 12370 9262 596 8 0 208 0 103 389 190 1924 0 0

94161 18459 6904 788 12268 10368 475 0. 0 93 0 0 366 638 1966 0 0

29827

29020

2.8

148566

146494

1.4

35012 39158 14235 4389 5936 14 98744

31281 36302 12623 4035 3160 17 87418

11.9 7.9 12.8 8.8 87.8 -17.6 13.0

180710 199042 69583 22611 28354 132 500432

160090 194626 64404 20851 18351 143 458465

12.9 2.3 8.0 8.4 54.5 -7.7 9.2

For the period April - August % Change

2014-15

2013-14

% Change 2.0 7.0 5.1 -42.4 0.8 -10.7 25.5 0 123.7 6.3 -70.2 -2.1 -

Cargo Performance at Major Airports in The World 12-MONTHS ENDING JUN 2014 Cargo Volume | Loaded and unloaded freight and mail in metric tonnes 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Hong Kong, Hk (hkg) Memphis Tn, Us (mem) Shanghai, Cn (pvg) Incheon, Kr (icn) Dubai, Ae (dxb) Anchorage Ak, Us (anc) Louisville Ky, Us (sdf) Frankfurt, De (fra) Tokyo, Jp (nrt) Miami Fl, Us (mia) Paris, Fr (cdg) Singapore, Sg (sin) Beijing, Cn (pek) Los Angeles Ca, Us (lax) Amsterdam, Nl (ams) Taipei, Tw (tpe) Chicago Il, Us (ord) London, Gb (lhr) Guangzhou, Cn (can) New York Ny, Us (jfk) Bangkok, Th (bkk) Tokyo, Jp (hnd) Indianapolis In, Us (ind) Shenzhen, Cn (szx) Doha, Qa (doh) Leipzig, De (lej) Abu Dhabi, Ae (auh) Cologne, De (cgn) Kuala Lumpur, My (kul) Osaka, Jp (kix)

Airports Participating In The Aci Monthly Traffic Statistics Collection. Results Are Preliminary. *anc Data Includes Transit Freight. ยง: Growth Rate > 200% Or < Minus 50% Due To Extraordinary Circumstances Affecting Traffic, I.e., War, Social And Political Unrest, Major Sports Events, New Routes.

4 282 878 4 215 166 3 033 043 2 513 517 2 421 925 2 420 225 2 243 292 2 119 808 2 107 739 1 954 392 1 910 082 1 879 098 1 810 981 1 751 851 1 632 362 1 601 248 1 567 419 1 541 133 1 378 138 1 301 264 1 236 861 1 014 388 981 738 935 322 932 599 885 649 765 943 732 057 712 527 712 317

4.4 3.7 4.7 2.5 1.0 (0.7) 3.0 2.2 7.2 0.7 1.0 0.4 (2.3) (0.9) 7.2 1.3 6.1 0.8 8.9 2.2 (1.5) 10.8 2.2 5.5 10.9 2.3 21.3 1.4 0.3 2.9

TRAFFIC HANDLED AT MAJOR PORTS (DURING APRIL TO SEPTEMBER, 2014* VIS-A-VIS APRIL TO SEPTEMBER, 2013)

(IN ' 000 TONNES)

(*) TENTATIVE APRIL TO SEPTEMBER% VARIATION PORTS

TRAFFIC

1 KOLKATA Kolkata Dock System Haldia Dock Complex TOTAL: KOLKATA PARADIP VISAKHAPATNAM KAMARAJAR (ENNORE) CHENNAI V.O. CHIDAMBARANAR COCHIN NEW MANGALORE MORMUGAO MUMBAI JNPT KANDLA TOTAL:

2014*

6698 14062 20760 35479 30588 14649 26717 15716 11355 18230 6307 29831 32313 46539 288484

2013

% VARIATION AGAINST PREV. YEAR TRAFFIC

6055 14885 20940 34119 28936 12676 26249 14093 10847 19376 5159 27581 30930 45951 276857

4 10.62 -5.53 -0.86 3.99 5.71 15.56 1.78 11.52 4.68 -5.91 22.25 8.16 4.47 1.28 4.20

COMMODITY WISE PORT WISE PROVISIONAL CAPACITIES OF MAJOR PORTS AS ON 31.7.2014

Figures in the parenthesis indicate the number of berths. BJ - Barge Jetties, T - Transhippers, A - Anchorages, SBM - Single Buoy Mooring @ Capacity of JNP container terminal (3 berths), NSICT (2 berths), GTIL (3 berths) and shallow water berth (1 no) has been taken as 16.88 MT, 15.00 MT, 26.40 MT and 1.20 MT respectively. Capacity of one shallow water berth at JNPT is 0.90 MT for dry bulk cargo. At Mumbai, only BPS berth is considered as dedicated container berth. Assessed capacity of BPS(Dedicated) container berth is 1.0 MT Berth No 6, 7/8 ID are used as holding berths for MBPT Crafts and no capacity has been accounted. **Capacity of Chennai Port 1st Container Terminal (4 Berths) and IInd Container Terminal (3 Berths) has been taken as 24.00 MT and 18.00 MT respectively Capacity of Iron Ore Berth has been taken as 6.0 MT at Ennore Port. After full fledged commissioning, balance capacity of 6.0 MT will be added *After accounting the capacity due to productivity, addition of berth No 13 & 15, MHC, Floating cranes Only BPS berth of Mumbai Port is considered as dedicated container berth. Assessed capacity of BPS(Dedicated) container berth of Mumbai Port is 1.0 MT. Berth No 6,7/8 ID are used as holding berths for MbPT crafts and no capacity has been accounted. OCTOBER NOVEMBER 2014 | INFRALOG

Export Import with top 25 countries As on 12/10/2014 Values in Rs Crore Rank

Country

Export

Import

Total Trade

Trade Balance

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25.

CHINA P RP U ARAB EMTS USA SAUDI ARAB SWITZERLAND GERMANY INDONESIA BELGIUM IRAQ NIGERIA QATAR KOREA RP HONG KONG SINGAPORE KUWAIT MALAYSIA JAPAN IRAN UK AUSTRALIA VENEZUELA SOUTH AFRICA BRAZIL UNSPECIFIED ITALY

18,058.02 50,970.24 61,641.87 19,030.83 1,489.68 11,555.35 7,533.10 8,763.69 1,115.05 4,036.84 1,669.70 7,182.33 18,444.61 16,349.48 1,921.31 7,715.21 8,752.69 6,411.73 13,756.60 4,299.41 234.61 6,152.85 7,084.16 4,549.41 7,508.07

82,145.89 39,826.77 28,251.26 54,144.74 29,308.93 17,970.78 21,488.31 19,239.01 26,771.05 23,312.86 25,467.48 19,925.15 8,538.78 10,520.98 24,262.26 16,234.36 14,143.09 13,576.53 5,961.42 13,756.28 17,720.91 9,322.86 8,175.50 9,445.74 6,426.49

100,203.91 90,797.01 89,893.13 73,175.57 30,798.61 29,526.13 29,021.41 28,002.70 27,886.10 27,349.70 27,137.18 27,107.48 26,983.39 26,870.45 26,183.57 23,949.57 22,895.78 19,988.25 19,718.02 18,055.69 17,955.51 15,475.72 15,259.66 13,995.15 13,934.56

-64,087.87 11,143.47 33,390.62 -35,113.92 -27,819.25 -6,415.43 -13,955.21 -10,475.31 -25,656.01 -19,276.01 -23,797.78 -12,742.82 9,905.83 5,828.50 -22,340.94 -8,519.16 -5,390.40 -7,164.80 7,795.19 -9,456.86 -17,486.30 -3,170.01 -1,091.34 -4,896.34 1,081.58

Total of Top 25 countries

296,226.84

545,937.41

842,164.25

-249,710.56

India's Total

454,519.10

675,625.36

1,129,932.68

-221,106.26

CARE Research on Bulk Container Traffic According to a recent study published by CARE ratings, containerised cargo traffic is growing steadily and taking significant strides since early 2000; the Indian Flexible Intermediate Bulk Container (FIBC) industry has demonstrated its excellence to become one of the largest manufacturer and exporter in the world.

volatile raw material prices as well as foreign exchange rate, low bargaining power with customers and access to adequate industrial infrastructure.

Going forward, CARE Ratings envisages that entities with strong foothold in international market with value added product portfolio, better working capital management and sound foreign exchange fluctuation risk management would be in a position to earn higher margins. The Indian Export-oriented Indian FIBC industry registered FIBC industry is envisaged to grow at buoyant growth in FY2014 (refers to the period approximately 5-7 per cent per annum globally April 01 to March 31) backed by increase in and at 12-15 per cent per annum domestically export and domestic demand. The exports of FIBC grew by 77 per cent (in value terms) and 43 over the next four years riding on increase in per cent (in volume). The share of exports from domestic output and their shift towards FIBC India grew by 61 per cent in USA and 54% in UK offering enhanced performance and better in FY2014 despite the lower growth in demand visibility. CARE Ratings expects the EBIDTA for FIBC in these developed markets. margins of the manufacturers to remain in the Although the industry registered healthy growth range of 10-12 per cent over the next three years in the backdrop of increasing competition from rate in the past and have healthy growth domestic units and international market. opportunities, it faces challenges on account of Sept-Nov2014 |

Leaders' Lead

Setting an Example At a time when members of Parliament (MP) are facing flak for availing extra facilities, aviation minister Ashok Gajapathi Raju Pusapati is setting an example worth emulating by his colleagues. Raju, a Cabinet minister, has shunned the privileges he is entitled to while flying. He, instead, prefers to travel like a common passenger. Since taking charge as aviation minister, Raju has refused to use the air conditioned car from the terminal building to the aircraft that he is entitled to and instead travels in the airline ferry bus with other passengers. Raju belongs to the erstwhile royal family of Vizianagram. "His grandfather owned two planes. The only other Indian family that owned a private aircraft then was that of JRD Tata," said an official. The minister, sources said, carries his own luggage at the airport and stands in queue with other passengers for security

Ashok Gajapathi Raju Pusapati

checks. By virtue of being the country's aviation minister, Raju is exempted from security checks at domestic airports. "He, however, insists that he will travel like other passengers do. He gets in the queue and goes through the entire process," the official added. " The minister has set an example for others to follow," said Subhash Goyal, president, Indian Association of Tour Operator. "The minister always checks-in one hour before and has never delayed a flight. You won't ever find a large entourage of personal staff and protocol officials one usually sees at an airport when an aviation minister is travelling," the official said.

A domestic air cargo player Srinivas Sattiraju, CEO, Delex Cargo India Private Limited, is a logistics solutions and services' professional with an exceptional success record operating at various levels throughout India with a complete understanding of Indian business environment and adequate operating knowledge of businesses across Asia pacific. Sattiraju developed particular skills in Air Cargo Industry of India, by gaining practical insights and direct work experience, during his current, 5+ years of his tenure with Delex , when the company had established itself successfully as an emerging Domestic Air Cargo Player in India. Working in a manufacturing environment early in his career has enhanced the Supply Chain Management knowledge, Sattiraju is exposed to various forms of supply chain models that use different modes cargo. His experience of working in various client environments and different Supply Chain models helped him gaining a complete understanding of many advanced supply chain concepts such as postponement, cross-dock, JIT, VMI/SOI, Kitting and assembly and the role played by a given mode of transportation, be it air / surface or ocean in determining the cost and inventory strategy of a large enterprise. Sattiraju's success record includes the setting up of Delex, a company founded on the basis of an innovative â&#x20AC;&#x153;Domestic Air Expressâ&#x20AC;?

Srinivas Sattiraju

business model that is conceptualised, designed, developed and implemented by him for a leading domestic airlines in India. Sattiraju went on to develop Delex in to a multifaceted logistics services' organization offering solutions in the areas of air express, surface distribution, cold chain logistics, best-in-class 3PL warehousing solutions and pioneering Air Cargo GSA solution for Indian aviation Industry. Sattiraju has over 25 years in the area of Supply Chain Management. Specifically handling Design, Implementation & operations of Distribution Strategies, Component hub management solutions, Linefeeding solutions, creation of large green field facilities and inbound component supply chain solutions across India for Large Corporations from FMCG, Consumer Durables', Electronics' and Automotive Industries.

Sept-Nov2014 |

Trade Associations

ACAAI Convention in Shanghai to expedite bilateral trade

“Definitely there will be marvellous improvement in the cargo traffic between India and China after the business interactions and understandings between the Freight Forwarder Agents of both the countries”

he 41st ACAAI Convention, which is being organised from November 12-15 in Shangha with the theme of the “Indian air cargo – Changing Times”, would give a wide exposure to the business activities of both the countries i.e. India & China. It will give an opportunity to the Freight Forwarder agents of both the countries to interact with each other on one to one basis and to understand the processes of functioning and procedural requirements of both the countries for entering into business dealings, said SL Sharma in an interview with InfraLOG. According to Sharma, the Convention basically seeks to examine the direction our Industry is taking, assessing its problems' reconciling the often contradictory objectives of different stake-holders' and establishing steps each must take and work in tandem to achieve

been invited to this Convention for addressing the delegates, the benefit of which can be derived by them. The delegates will get an opportunity to interact with the speakers as well as their counterparts in China and plan expanding of their business activities in China. Convention's Impact on Indo-China Trade “There will definitely be a marvellous improvement in the cargo traffic between India and China after the business interactions and understandings between the Freight Forwarder Agents of both the countries. We are confident that this Convention will have a last long impact on the smooth business prospects and partnerships,” asserted Sharma. He pointed out that after the visit of the President

Topics of Discussions ·

Economic Revival – Time for Acceleration Trade Facilitation | Indian Air Cargo - Overtaking Global. | E-Commerce – Emerging Boom in India | Global Trends – Influencing air cargo economics | Air Freight – new direction, higher objectives, smarter solutions. | Indiana Civil Aviation – Resurgence of Air Cargo. | (Customizing import Legislation & Regulations – for expanding Indian market.

solutions for an integrated, successful future. “I am really thrilled that the number of registration by members is more than my expectations which has exceeded 200 including the Special Invitees who are professional in logistics industry. Apart from this I am confident that quite sufficient number from Shanghai Freight Forwarders Association will also join the stream,” shared Sharma. ACAAI has also approached Secretary (Civil Aviation) who is also the Chairman of Air Cargo Logistics Promotion Board to participate as Guest of Honour and some senior officials from the Ministry of Commerce. The Consul General of India in Shanghai has also been requested to be the Chief Guest at the Annual Convention of the association. Sharma also informed that the professional, experienced & knowledgeable Speakers from the Industry and the Airlines have Sept-Nov2014 |

of China to India and the deliberations took place regarding enhancement in business activities, there are definite chances of improving business activities. “Moreover, our Government is very keen to establish manufacturing Hubs and to implement the 'Make in India' concept seriously, India will definitely like to establish business relationship with China where the maximum GDP growth in manufacturing is more than 40 per cent GDP,” he concluded with high optimism.