Cargo Connect December 2018

PAGES 92 inclusive of cover

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VOL X ISSUE I december 2018 `20

Postal Registration No.: DL (S)-01/3372/2016-2018 WPP No.: U(S)-81/2016-2018 Posted at Lodi Road HPO, ND on the 4th-5th same month RNI No.: DELENG/2009/31040 Published on the 2nd of the same month

First Container 10 Movement on Inland Waterways Post Independence Leaders in Logistics Sustainability in Warehousing Another Feather in Bengal’s Logistics Cap

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Contents

Volume X • Issue I • December 2018

Publisher/Editor Smiti Suri Principal Correspondent Ritika Arora Bhola Special Correspondent Gaurav Dubey Correspondent Upamanyu Borah

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16 COVER STORY

Perishable Logistics Trends Transforming India’s Cold Chain Industry

SPECIAL FEATURE

Leaders in Logistics

INTERVIEWS

Adrián Palágyi

FEATURE

Accounts & Administration Nitish Kumar

Matthias Maedge

General Delegate, IRU ...................................68

Sr Designer & Visualiser Shaique Ahmad

Ahmed Al Bulushi CEO, Mwasalat ..............................................70

Designer & Visualiser Mayank Bhatnagar

Alex Knowles

Managing Director, Knowles Transport ...........71

BUZZ ...................................................................8 Technology .....................................................62

infrastructure

Startups ...........................................................63 NEWS ..........................................................72-80 spotlight .......................................................82 APPOINTMENTS ................................................83 EVENTS .......................................................84-88 Profile ............................................................88

Another Feather in Bengal’s Logistics Cap ..........................................60

Marketing Executive Akash Gupta

Cargo and Property Marketing Specialist, Budapest Airport ........................................66

FRONTLINE ..........................................................6

Sustainability in Warehousing ...............52

Marketing Managers Parminder Singh Rahul Arora Asst Manager Marketing Mehuli Choudhury

focus

First Container Movement on Inland Waterways Post Independence ..............10

Director Ajeet Kumar

PEOPLECONNECT Naresh Kundlas

Managing Director, Wallenius Wilhelmsen Logistics ......90

All material printed in this publication is the sole property of CargoConnect All printed matter contained in the magazine is based on the information of those featured in it. The views, ideas, comments and opinions expressed are solely of those featured and the Editor and Publisher do not necessarily subscribe to the same.

CargoConnect is printed, published and owned by Smiti Suri,

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frontline I faced ridicule when I spoke about unveiling a multi-modal terminal on the Ganga river but now these projects are living examples of new India’s new vision.” said Narendra Modi

Prime Minister of India while inaugurating India’s multi-modal terminal on the Ganga river in Varanasi

We are positive that the second round will also get a similar response.

I personally expect it to fetch `10,000 crore, more than what we got for the first tranche.” asserted Nitin Gadkari, Union Minister for Road Transport and Highways on overwhelming response for the first tranche of highway projects under the toll-operate-transfer (TOT) model

E-commerce policy which was initially drafted by industry stakeholders was currently waiting for clearance from the Department of Industrial Policy and Promotion. The policy will be favourable for the domestic e-commerce companies.”

The supply chain function in India is in a good position to create value and drive transformation across extended value chain, highlights a report released by KPMG in India and Association of Supply Chain Professionals

Recently, ICRA (Investment Information and Credit Rating Agency of India Limited) released a report which indicated that in the next five years air cargo traffic in India is expected to reach at 4.7 million tonnes, which is close to around 60 per cent growth

commented Suresh Prabhu, Union Minister for Commerce and Industry and Civil Aviation at an event in Mumbai

Government aspires to make separate railway corridor for freight and railways……

Despite being late, India in a changed mindset is in a hurry to provide most efficient modes of transport to serve the common man.” stated Piyush Goyal

Union Minister of Railways and Coal at the International Rail Conference in New Delhi

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CargoConnect - December 2018

The UK and France are currently leading the way with atscale and pilot implementation of blockchain in Europe, while the USA is a front-runner in terms of funding blockchain initiatives globally, points out a report by Capgemini Research Institute

buzz

‘Customer centricity’ to take centre stage in future Points out KPMG in India and ASCP in a report KPMG in India and Association of Supply Chain Professionals (ASCP) released a new report titled ‘Supply Chains in India: A Reality Check – Here to Where and How’. The report highlights the challenges being faced by Indian supply chain business in planning, sourcing, make and delivery stages, impacts of key initiatives undertaken to overcome the challenges, the mindsets creating roadblocks in realisation of benefits, level of technology adoptions and key emerging themes for supply chains of the future. KPMG in India also shares its perspective on how to effectively build supply chains for the digital world in the report.

The report suggests that the supply chain function in India is in a good position to create value and drive transformation, across extended value chain from supplier’s supplier to customer’s customer.

The report is based on an online survey conducted among 76 leaders across the manufacturing sectors like automotive, auto ancillaries, consumer goods and durables, pharmaceuticals and engineering in India, to get their views on the current supply chain challenges, key focus areas and future aspirations.

Commenting on the future of

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CargoConnect - December 2018

supply chain, Ravind Mithe, Partner – Management Consulting, KPMG in India, said, “Supply chain function is at a crossroads, where it has to surpass its traditional focus of transactional processing and driving efficiency to a leadership role, that can make organisations ready for the digital

The report suggests that the supply chain function in India is in a good position to create value and drive transformation

world. The journey cannot be linear journey for the organisations.

All the functions and processes must work in a frictionless manner to realiseenterprisewide transformation.”

Current challenges across various stages of supply chains in India:

• Plan: 66 per cent organisations stated that poor forecasting accuracy is the biggest challenge, followed by 51 per cent asserting that lack of end-to-end supply chain visibility is a challenge in better planning.

• Source: A majority of 56 per cent

stated that supplier quality and delivery performance remain top concern, followed by 51 per cent stating uncertainty in supplier delivery to be the top challenge. This reduces the purchaser’s role to transactional activities undermining their ability to carry out more strategic activities.

• Make: 78 per cent stated that poor integration between manufacturing systems and business plan was a top challenge, while 61 per cent said the unavailability of right resources with technical skills, was a major challenge which highlighted the need for greater efforts in skill building.

• Deliver: Poor ability to meet customer demand on time while incurring higher cost to serve is a double whammy, that was cited as a challenge by 98 per cent organisations.

Only 22 per cent cited out GST related challenges as top concern today for supply chain professionals.

The report also highlighted several initiatives that are being taken to improve supply chain performance. Altogether 73 per cent organisations said, “Operational excellence is the most commonly pursued initiative and only some organisations have initiated the drive to digitise their supply chain.

Only 22 per cent is pursuing large transformational initiatives that impact all the aspects of the supply chain. CC

focus

First Container Movement on Inland Waterways Post Independence

Prime Minister Narendra Modi Received the Cargo at Varanasi, inaugurated the Multi-modal Terminal on the Ganga River in his Parliamentary Constituency It has been witnessed that a very low percentage of India’s transportation load is borne by waterways. On the other hand, a recent step in this direction, is expected to bring in big changes in transportation on waterways.

While food and beverage giant PepsiCo has created history by doing container movement for the first time on inland vessel through waterways post-independence (shipping 16 containers on inland waterways, as a part of the pilot project on the National Waterway-1), Indian Prime Minister Narendra Modi inaugurated India’s first Multi-modal terminal on the Ganga river in his parliamentary constituency. The key Haldia-Varanasi waterway project involves the construction of three multi-modal terminals –at Varanasi, Sahibganj and Haldia, two inter-modal terminals and five roll-on-roll-off or Ro-Ro terminal pairs.

SMITA KUMAR

ABOUT THE FIRST VESSEL WITH FOOD CONTAINERS POST-INDEPENDENCE Food and beverage giant PepsiCo set sail 16 containers from Kolkata in the last week of October this year. It sent the containers of food and snacks equivalent to 16 truckloads of same. The vessel was flagged off by Union Shipping Secretary Gopal Krishna along with the then Chairman of IWAI Pravir Pandey, carrying the consignment in the presence of PepsiCo representatives. The vessel named MV Rabindranath Tagore, reached Varanasi on November 12, thus making food and beverages major PepsiCo the first to become a part of the pilot project Jal Marg Vikas Project.

Union shipping and water resources minister Nitin Gadkari had tweeted when the vessel was moving, “This should have been the biggest news of the week in India. For the first time since independence, a container is moving on inland vessel. PepsiCo is moving 16 containers from Kolkata to Varanasi on inland vessel MV RN Tagore over river Ganga. Such a huge accomplishment! #SagarMala”

10 CargoConnect - December 2018

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focus

This should have been the biggest news of the week in India. For the first time since independence, a container is moving on inland vessel.

PepsiCo is moving 16 containers from Kolkata to Varanasi on inland vessel MV RN Tagore over river Ganga. Such a huge accomplishment! #SagarMala” Tweeted Nitin Gadkari Union Shipping and Water Resources Minister

Sagarmala Programme is an initiative of the Government of India to enhance the performance of the logistics sector in India. The programme envisages unlocking the potential of waterways and coastline, to minimise the infrastructural investments required to meet these targets.

Under SagarMala, 266 port modernisation projects with an investment of more than `1.45 lakh crore, have been identified for the implementation over the next 10 years.

A few years back, only 0.5 per cent of India’s transportation load was borne by Waterways but due to our efforts in the last three years, it has reached 1.5 per cent now. Our target is to take this to 6 per cent in the coming two to three years.

Well, for about 70 years, waterways got neglected. Not only the USA, but also countries like Bangladesh witness 10 to 40 per cent of waterways’ contribution in logistics.

On the other hand, our country which has rivers like Ganga and Brahmaputra, is left behind with unutilised 14,000 kms of waterway space. We need to train and conserve waterways for safe navigation. That in turn leads to better water flow and a rejuvinated river. Moreover, waterways require minimum displacement of human beings unlike roadways and railways. Therefore, Come to Waterways to make a healthier world!”

According to the World Bank, India’s freight movement through waterways has an insignificant share of 0.5 per cent currently, compared to 65 per cent by road and 27 per cent by rail.

Country Share USA 8.3% Europe 7% China 8.7% Germany 20% Bangladesh 35% India 0.5% MV Rabindranath Tagore was, on November 12, received

by Prime Minister Narendra Modi at Varanasi. Food and snacks which were transported, were made at PepsiCo’s snacks plant at Kolkata and were to be distributed in various markets from Varanasi.

The then Chairman of Inland Waterways Authority of India, Pravir Pandey talking to CARGOCONNECT from Myanmar said, “This is a fantastic initiative and lots of efforts have gone on this. It was not just a thought. By this, the country has got the third modal choice in addition to road address.

The first container movement on inland vessel post independence, is both environment-friendly and cheaper.

12 CargoConnect - December 2018

Informing again, Union Shipping Secretary Gopal Krishna along with then IWAI Chairman, Pravir Pandey had flagged off the vessel carrying the consignment in the presence of PepsiCo representatives.

PepsiCo India President and CEO Ahmed El-Sheikh, also present when the vessel arrived at Varanasi, said, “This is a significant milestone in the development of the inland waterways and we believe this can be a huge enabler for the consumer goods industry.”

ABOUT THE PROJECT The terminal inaugurated by PM Narendra Modi is the first of the four multi-modal terminals being constructed on the National Waterway-1 as a part of the World Bank-aided Jal Marg Vikas Project, of the Inland Waterways Authority of India. Uttar Pradesh chief minister Yogi Adityanath, Union Shipping Minister Nitin Gadkari and others were also present at the event. The government is developing NW-1 (River Ganga) under the Jal Marg Vikas Project (JMVP) from Haldia to Varanasi covering a distance of 1390 kms.

The total estimated cost of the Jal Marg Vikas Project is `5,369.18 crore, which is going to be shared equally between the Government of India and the World Bank.

focus

A few years back, only 0.5 per cent of India’s transportation load was borne by Waterways but due to our efforts in the last three years, it has reached 1.5 per cent now. Our target is to take this to 6 per cent in the coming two to three years. Come to Waterways to make a healthier world!”

Pravir Pandey Vice Chairman, Inland Waterways Authority of India

The Project is expected to be completed by March, 2023.

ADVANTAGES 1. Major burden on Roadways and Railways will come down 2. The project will enable commercial navigation of vessels with capacity of 1500-2,000 DWT. Allahabad IFFCO Inland Waterways Authority of India Jal Marg Vikas Project 3. Mammoth Infrastructure development like multimodal and inter-modal terminals, Roll on - Roll off (Ro-Ro) facilities, ferry services, navigation aids.

4. Huge employment will be generated, NW-1 development & operations will lead to direct employment generation to the tune of 46,000 and indirect employment of 84,000 will be generated by vessel construction industry.

1

Fairway Development

2

Construction of the multi-modal terminal at Varanasi.

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Construction of the multi-modal terminal at Sahibganj.

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Construction of the multi-modal terminal at Haldia.

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Construction of an inter-modal terminal at Kalughat.

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Construction of an inter-modal terminal at Ghazipur.

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Construction of a new navigation lock at Farakka.

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Provision of navigational aids.

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Construction of five pairs of Roll on-Roll off (Ro-Ro) terminals.

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Construction of Integrated Ship Repair and Maintenance Complexes.

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Provision of River Information System (RIS) and Vessel Traffic Management System (VTMS)

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Bank Protection works

STATES INVOLVED Uttar Pradesh, Bihar, Jharkhand and West Bengal Districts under ambit-Varanasi, Ghazipur, Ballia, Buxar, Chhapra, Vaishali, Patna, Begusarai, Khagaria, Munger, Bhagalpur, Sahibganj, Murshidabad, Pakur, Hoogly & Kolkata.

Background One of the major problems for a commercially viable and safe navigation on NW-1 is low depth upstream of Farakka due to low discharges from tributaries and difficult hydro morphological characteristics of Ganga. A pilot study on the Allahabad-Ghazipur stretch was commissioned by IWAI to find solutions to problem. Based on the findings of this study, a proposal for development of NW-1 at an estimated cost of `4,200 crore (US$ 700 million) was taken up for seeking technical assistance and investment support from the World Bank to the tune of US$ 350 million in 3 Phases.

14 CargoConnect - December 2018

Finance Minister announced JMVP in Budget Speech in July 2014, to enable commercial navigation of at least 1500 tonnes vessels in Ganga. Private sector participation under the PPP mode would be `301 crore ($45 million).

IMPORTANT TO KNOW The Project is important also because, according to sources, currently, around 1000 cargo capable vehicles have to transport in the Indian cargo sector but the said project which is supposed to be a part of the pilot project on NW-1. The increase in this will definitely add to India’s economy. India will be able to compete in international markets. CC

cover story

Perishable

Logistics Trends Transforming

India’s Cold Chain Industry Perishable logistics is an evolving science, as changing consumption patterns, variable regulation, rising customer expectations, and shifts in services converge to create a complex and changing supply chain. Arising out of this increase in demand, diversification and value addition are the dominating factor in the Indian agriculture sector today. These changes along with the emergence of an organised retail food sector coupled with changes in FDI laws are creating fresh opportunities in domestic perishables and food industry which includes India’s cool chain sector.

- UPAMANYU BORAH

16 CargoConnect - December 2018

cover story

I

n perishable logistics, the essence is to ensure that produce such as flowers, vegetables, meat and marine products, dairy foods, ice creams and confectionery reach their destinations while they still offer maximum appeal and shelf life. Therefore, perishable goods require an efficient supply chain management coupled with a comprehensive warehouse instilling a temperature controlled facility and an uninterrupted cold chain system throughout to keep its freshness.

Due to the shift in focus from increasing productivity to providing better storage and transport facility, the Indian Cold Chain Industry has gained importance. The industry has become an important part of the supply chain of products from farm to door. Looking at the rise in infrastructure to curb wastage, the cold chain industry in India is expected to grow at a CAGR of 19 percent from 2017-2022.

Real-Time Challenges India is one of the largest producers of agricultural products and one of the global leaders in the pharmaceutical sector. The major destinations for Indian fruits and vegetables are UAE, Bangladesh, Malaysia, Netherlands, Sri Lanka, Nepal, UK, Saudi Arabia, Pakistan and Qatar, while the major importing countries of India’s floriculture are United States, Germany, United Kingdom, Netherlands and United Arab Emirates. More than 50 percent of the floriculture units are based in Karnataka, Andhra Pradesh and Tamil Nadu. With the technical collaborations from foreign companies, the Indian floriculture industry is poised to increase its share in world trade. Yet, the country is known to have a fledgling cold chain, which results in supply chain losses of food and other resources. These losses have been stated to be as high as US$8 to 15 billion per annum from the agriculture sector alone.

December 2018 - CargoConnect

17

cover story According to Mihir Mohanta, General Manager (SCM) International Business, Mother Dairy Fruit & Vegetable Pvt Ltd, outlines the following as the major challenges in the sector:  Infrastructure gap

The study by National Centre for Cold-chain Development (NCCD) and National Bank for Agriculture and Rural Development (NABARD) indicates there is not much gap between requirement (35.3 MMT) and availability (32.8 MMT) in cold storage segment, but it is high in the first and last mile connectivity. The gap between requirement and availability of pack houses (required- 70,000 & available- 250) and transportation (vehicle required- 62000 & available-10000) is high.  Skewed distribution

In cold chain, almost 88-90 per cent of the market share is of temperature controlled warehouses and remaining 1012 per cent is of temperature controlled vehicles. 65 per cent of the cold store capacity is concentrated in Uttar Pradesh & West Bengal. So, cold stores available are not uniformly distributed across the country.  Un-organised

Almost 90-92 per cent of the industry is dominated by the unorganised players. Therefore the assurance on temperature control is low.

government’s initiatives and rising export demand for processed frozen food.

Vikas Yadav, Director, Future Warehousing Solutions Pvt Ltd agrees that in recent years, the Indian government has recognised that development of cold chain is an essential step in upgrading India’s food processing industry and therefore taken policy measures that have acted as catalyst for the sector. “The attempts made by the government include relaxation of FDI norms, opening ECB, priority lending status, providing infrastructure status and even creating a National Centre for Cold Chain Development.”

Here, Anand Sen - Business Head – Temperature Controlled Logistics, Future Supply Chain Solution Ltd, expresses, “The Government of India has shown great level of interest in this regard especially to support the agricultural sector. ‘Operation Green’ which was proposed in this year’s budget has allocated a fund of INR 500 crore to promote Farmer Producer Organisation which would include agricultural logistics and primarily cold chain infrastructure.

A similar thrust is also needed in overcoming the challenge of defining standards and protocols in handling the operations of a wide array of finished products and raw produce that make use of cold chain as a vital component in the value chain. Food Safety and Standards Authority of India (FSSAI) has also played an active role in defining the standards for a multitude of products thus opening up new sectors for cold chain warehousing and transportation.”

 Unavailability of transport services

A National Horticulture Board (NHB) study indicates that transport services were not provided by 79 per cent of the cold stores. Even those who facilitated the service, mostly used hired out services. Further, out of 4 per cent only half had their own reefer trucks. This is also because of the reason that most of the stores only used services for Potato which does not require refer transport.  Low capacity utilisation & high power tariffs

As per NHB, the overall capacity utilisation is about 75 per cent. Capacity utilisation and electricity load planning are critical for business viability. Companies which have better visibility on the supply chain in terms of available load, time and space can plan better than the unorganised players.

However, at present, the sector is under-going a phase of rapid transition. Improved quality consciousness, better technology infrastructure and the shift of focus from cost to value offer great market potential for cold chain logistic solution provider. The key growth drivers for the sector include growth in organised retail and food service industry,

18 CargoConnect - December 2018

Along similar lines, Nitin Chandra, General Manager, CBRE South Asia Pvt Ltd informs, “Ministry of Food Processing Industries (MOPE) is implementing scheme for creation of backward and forward linkages under ‘Pradhan Mantri Kisan Sampada Yojana’ which is applicable to perishable horticulture and non-horticulture produce. The integrated scheme ensures that beneficiaries will have to set up either farm level infrastructure or distribution hub supported by refrigerated vans/trucks/insulated vans/mobile insulated tankers.”

On-Ground & Market Challenges Currently, India has 7,645 cold storage facilities unevenly spread across the country, with an installed capacity of 34.95 million metric tonnes. There is a lack of quality cold 1400 1200 1000 800 600 400 200 0

1300

1260

131

115

322 76

16

202

252 12

5

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India United States China Brazil Indonesia Mexico Cold Storage Capacity (million cu. Meters) Total Population (millions)

cover story “Transport services were not provided by 79 per cent of the cold stores. Even those who facilitated the service, mostly used hired out services. Further, out of 4 per cent only half had their own reefer trucks.”

“The attempts made by the government include relaxation of FDI norms, opening ECB, priority lending status, providing infrastructure status and even creating a National Centre for Cold Chain Development.”

Mihir Mohanta

Vikas Yadav

GM (SCM)-International Business, Mother Dairy Fruit & Vegetable Pvt Ltd

warehousing infrastructure with only 25 per cent of the volume available for fruits, vegetables, processed foods and pharmaceuticals, whereas 75 per cent of the capacity is dedicated to potatoes. Technical standards followed in India are mostly unsuitable for the country’s conditions, which results in lower performance of standard refrigerated systems. However, the market is gradually getting organised and focus towards multi-purpose cold storages is rising.

More than 50 per cent of the cold storage facilities in India are currently concentrated in Uttar Pradesh, Maharashtra and West Bengal, while other states still face a challenge with investments from the government and private operators.

According to Yadav, “The following points summarise the critical factors for the reluctance of setting up cold storage facilities:  High Capital Investment

A high level of capital is required at the initial stage of building a high-end cool chain facility.  Lack of skilled personnel

Despite the increasing number of infrastructure projects, there is serious lack of manpower with appropriate skill and training to handle modern technology.  High operational cost and low yield models

All customers equate operation cost of reefer vehicles with those of non-reefer vehicles resulting in under coverage of cost in respect of reefer vehicles. Costs of operation of reefer vehicles are relatively higher as compared to normal transportation.  High insurance and risk coverage premiums

Transporters do not have insurable right for the cargo the vehicle carries. Truckers expect that the clients will take insurance cover in transit. In absence of this, additional burden comes to transporter. There is a

20 CargoConnect - December 2018

Director, Future Warehousing Solutions Pvt Ltd

system for carriers taking legal liability coverage for the cargo, but the process of making insurance claim, when arises, is very protracted and above all, any loss arising out of AC failure is not entertained by insurance companies.  Erratic power supply

Cold storages require steady power supply. This is a longstanding problem in India. Frequent power cuts are a major factor of concern in India. These companies have to invest separately in power back-ups which push the capital investment requirement.”

Here, Sen notifies that the lack of development of multicommodity cold chain facilities can be attributed to multiple factors such as high real estate prices, lack of clarity on changes in land use pattern and dependence on imported technology for refrigeration. He says, “It has been seen that the cold chain industry consists of multiple players, of which 85 per cent are unorganised players who are unable to invest much in the technology required to build high quality cold storages along with reefer trucks. Lower margins further limit their ability to maintain quality standards and invest in growth.

But, talking about developments, there have been numerous state and central level subsidy schemes that provide up-to 35 per cent support on the capital expenditure or support at the interest rates thus making Return on Capital Employed (ROCE) of the investment more viable. Such subsidies help in funding the viability gap which is a major concern for most investors. An estimated investment of more than USD 150 million has been put into cold chain companies by PE firms, which is expected to improve the farm level infrastructure through the development of pack houses, ripening chambers and other allied transportation services. The clearance of FDI in multi brand retail which mandates procurement from local markets is also expected to double the food processing levels and bring in world class temperature controlled infrastructure into the Indian ecosystem.”

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cover story “Operation Green which was proposed in this year’s budget has allocated a fund of INR 500 crore to promote Farmer Producer Organisation which would include agricultural logistics and primarily cold chain infrastructure”

“Ministry of Food Processing Industries (MOPE) is implementing scheme for creation of backward and forward linkages under ‘Pradhan Mantri Kisan Sampada Yojana’ which is applicable to perishable horticulture and nonhorticulture produce.”

Anand Sen

Nitin Chandra

Business Head – Temperature Controlled Logistics, Future Supply Chain Solution Ltd

Another critical issue is that India has traditionally been a labour intensive market which has helped reduce cost in almost all industries. Handling temperature sensitive products not only requires a plant room that is running 24x7 but also skilled labour aware of the nature of products being handled. It has been observed that the chances of temperature abuse increases with increase in touch points.

Furthermore, with the involvement of unskilled labor the chances of abuse increases multi-fold at various links of the cold chain.

“As more than 90 per cent of the business is unorganised, not much of skilled manpower is employed. But, the cold-chain business is highly technical. Unlike ambient transportation, it needs skilled and trained people for operation and execution, as the cost of errors or malfunctioning is high. A frozen product after being thawed cannot be reversed back to its original form, technically it is a waste,” points Mohanta.

“Even though new investments opportunities are emerging but unfortunately, cold chain development planning process is not integrated with agri-commodity cluster development and the corresponding market linkages. The policies continue to encourage small investments leading to fragmented infrastructure development.”

“Most of the facilities in India are traditional in nature and are designed for bulk storage which can somehow get managed with untrained labour. However, the same cannot happen in the modern multi-product facilities,” says Sen. “Drivers of refrigerated trucks are one of the most vital elements in the performance of cold chain; however, this community is not given its due respect in terms of training and compensation. Traditionally control over temperature adherence during transit is at the hands of the drivers hence educating them regarding the importance of maintaining the desired temperature is critical.”

“Definitely, employees involved in the shipping process needs to be aware of the temperature requirements of different types of products, as some can be sensitive and only stored in certain locations. For instance, vaccines and ice-cream need

22 CargoConnect - December 2018

General Manager, CBRE South Asia Pvt Ltd

to be maintained at different temperatures, and even a slight change or difference in temperature could result in decay or render the product useless. Besides the familiarity of the temperature and specific storage conditions required for all products, those concerned should also be familiar with the policies, procedures, and urgent protocols,” responds Neeraj Bansal, CEO, DHL SmarTrucking, DHL India. He adds, “Our ‘SmarTruckers’ are recruited through professionallymanaged staffing agencies, and they go through a rigorous screening process including profile check, background verification and road tests.”

Advising on the measures that need to be undertaken, Ramesh Mamidala, CEO, Çelebi Delhi Cargo Terminal Management Pvt Ltd says, “Lack of proper training regarding usage of equipment involved and adherence to proper procedures hampers the process of handling temperature sensitive products. Organisations should develop and implement robust training programmes on cold chain requirements for all personnel engaged in the handling activities. These trainings should be based on standard operating procedures (SOPs), safety issues and response to emergencies.”

Certainly, the challenges are comprehensive. The government must dedicatedly focus on catering to the Indian market.

Therefore, paramount is the need to create an e-platform wherein the farmers can trade their produce. Once the local market is in place export will automatically follow.

There are a lot of intermediaries in the food cold supply chain such as farmers, aggregators, commission agents, traders, processors, transporters, C & F agents, distributors, wholesalers, retailers, etc. Overviewing the same, Vikash Khatri, Founder, Aviral Consulting Pvt Ltd asserts, “These large numbers of touch points in value chain makes it very difficult to preserve, store and move the products in consistent temperature controlled atmosphere. In such value chain, large number of intermediaries engaging in more physical touch point of product creates inefficiencies and consequently increases the final price of the produce. On the

cover story “Our ‘SmarTruckers’ are recruited through professionally-managed staffing agencies, and they go through a rigorous screening process including profile check, background verification and road tests.”

“Organisations should develop and implement robust training programmes on cold chain requirements for all personnel engaged in the handling activities. These trainings should be based on standard operating procedures (SOPs), safety issues and response to emergencies.

Neeraj Bansal

Ramesh Mamidala

CEO, DHL SmarTrucking, DHL India

other hand majority of consumers in India are not willing to pay extra bucks for produce that moves through cold chain.

The situation need for an efficient management, wherein integrated solution reduces the wastage, as well as number of intermediaries and effectively does not impact too much on final price. Technology can provide solution to some extent.

Hence, creation of an e-platform can be one of the immediate solutions required apart from other initiatives. It will definitely open the gateway for our farmers to global markets apart from domestic markets.”

CEO, Çelebi Delhi Cargo Terminal Management Pvt Ltd

and analyse critical data that can form basis of solutions for customers’ most logistics needs.

The rise in demand for real-time temperature and location status is increasingly driving demand for infrastructure that can analyse and deliver data where and when it’s needed.

Globally cognitive insight projects are becoming the most common type of initiative to improve efficiencies and quality.

These projects use IT infrastructure and with the help of algorithms detect patterns in vast volumes of data and interpret their meaning.”

Holding similar views, Chandra said that increasing interest in healthful food is pushing cold chains to globalise.

“Consumers now demand high-end products that need to travel extended distances and shipped quickly to ensure freshness and quality remains unblemished. Modern retail is moving towards Omni – Channel distribution and delivery of perishable commodities is expected to follow the trend.

Thus, creation of e-platform is step forward in connecting customers to producers and would be catalyst in improving exports volume.”

Role of Technology The life of perishable cargo depends not just on temperature control but is a combination of controlling techniques and mechanisms.

With the advent and application of technologies in the cold chain sector, another trend that we witness is upgradations of systems and processes. Companies are increasingly focusing on machine learning to convert existing data into business intelligence. Such acceptance and activations are giving them a competitive advantage, as this helps in demand forecasting, predicting trends and performance.

Chandra says, “Due to time and temperature sensitivity associated with perishable cargo, applicability of technology especially Artificial Intelligence (AI) application on the cold chain logistics industry is more prudent than any other segment of the logistics industry. Use of technologies and systems like sensors and automation can help to gather

24 CargoConnect - December 2018

Khatri opined, “Usage of technology has definitely helped in efficiency improvement and process adherence. In last few years real time visibility has improved a lot across supply chain with use of IOT. Combining machine learning with IOT and analytics can be highly impactful, but adaptation of such integrated ecosystem is still limited. The integrated ecosystem can help in managing multiple touch points of supply chain like demand forecasting, scheduling supplies, vendor management, asset management, inventory optimisation, service recovery time, etc.”

Chandra agrees, “In Indian context, majority of the companies are yet to focus on analysing existing data

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cover story “Technology can provide solution to some extent. Creation of an e-platform can be one of the immediate solutions required apart from other initiatives. It will definitely open the gateway for our farmers to global markets apart from domestic markets.”

“What many fail to understand is that the reefers are meant to maintain the desired temperature of the cargo and not bring down the cargo temperature.

Awareness around this is growing now.”

Vikash Khatri

Ajit Venkataraman

Founder, Aviral Consulting Pvt Ltd

into business intelligence, with increasing globalisation companies are expected to be further challenged and it is expected they would use business intelligence to improve the service levels.”

MD, APM Terminals Inland Services Asia

Facilitating Infrastructure India’s first integrated on-airport perishable cargo-handling center began operations at Kempegowda International Airport in 2016 while Cochin International Airport has a separate state

The life of perishable cargo depends not just on temperature control but is a combination of controlling techniques and mechanisms. Citing a real-life example, Ajit Venkataraman, MD, APM Terminals Inland Services Asia mentioned, “We realised the current dynamics when in an export-bound grapes consignment, the reefer failed to manage the required temperature for the cargo. We wouldn’t have realised this, had it not been for the advanced technologies like Remote Control Management (RCM), which help us track the reefer environment. When the RCM alarm was raised, our team of experts at port checked the same and concluded that the container would have to be changed. It was taken back to our container freight station in Mumbai, destuffed with the help from our technical team and re-stuffed in another container well in time for the next vessel. It was a seamless execution.

The team, on an investigation, concluded that this was a case of hot stuffing. Hot stuffing is when appropriate temperature controlled cargo at normal room temperature is stuffed directly in a reefer set to a different ideal temperature. The correct way to do it is to precool it in a cold chain facility and then directly stuff into the reefer at the same required temperature. What many fail to understand is that the reefers are meant to maintain the desired temperature of the cargo and not bring down the cargo temperature. Awareness around this is growing now.”

26 CargoConnect - December 2018

of art centre for handling perishable cargo.

An elated Mike Chew, CEO, Air India SATS Airport Services Private Limited (AISATS) added, “AISATS contributes to the perishables industry by providing a dedicated temperature-controlled warehouse for perishable air cargo with sufficient storage capacity and well-equipped facilities at Kempegowda International Airport, Bengaluru.

AISATS COOLPORT offers a one-stop-shop for perishables handling by accepting cargo at ambient temperature, storing it under controlled temperature environments and transporting it in cool trollies between the warehouse and aircraft to reduce temperature excursions. It also provides an in-house custom clearance facility, a Drug Controller Laboratory and a plant quarantine inspection and certification system to enable speedy processing of huge quantities of perishable cargo. AISATS COOLPORT also offers backward integration by providing reefer trucking services from the point of origin to the point of warehouse entry.

The AISATS COOLPORT uses a combination of the latest digital technologies and state-of-the-art infrastructure to ensure speedy, efficient and damage-free movement of cargo. The facility has a handling capacity of 40,000 metric tons per annum. It houses dedicated cold storage rooms with adjustable temperatures ranging from -250C to 250C, refrigerated q-lanes with a temperature range of 20C to 80C,

cover story “AISATS COOLPORT offers a one-stopshop for perishables handling by accepting cargo at ambient temperature, storing it under controlled temperature environments and transporting it in cool trollies between the warehouse and aircraft to reduce temperature excursions.”

“Significant improvements are done at the Airport level for temperature controlled facilities, focus is now required to enhance the reliability and efficiency of temperature controlled logistics from origin to airport.”

Mike Chew

Sanjiv Edward

CEO, Air India SATS Airport Services Private Limited (AISATS)

Chief Commercial Officer, Delhi International Airport Limited

separate X-ray machines for perishables and pharmaceuticals to avoid any cross-contamination. AISATS also offers data logger reports on request to track product temperatures during its handling period.”

“Certainly, managing of perishable shipments earlier was a big challenge but now with more and more awareness, increase in tonnage, training and infrastructure has helped the industry and us to manage this product in routine with standard SOPs,” expressed Vipan Jain, Chief Commercial Officer at Delhi Cargo Service Center (CSC). CSC is the leading provider of airport ground handling in India.

Sanjiv Edward, Chief Commercial Officer, Delhi International Airport Limited informed, “Apart from Bengaluru, all the other major airports of India, such as Delhi, Mumbai, Hyderabad, Lucknow and Kochi have upgraded their perishable handling facility.

He adds, “At the time of acceptance, we do measure the temperature and cargo is offloaded at truck dock in safe and cool environment. We do have temperature control and recording system in place to see the temperature at any given point and with the movement of shipment from acceptance, x-ray, build-up and release can be viewed at any time.

Most of the shippers are also using the data loggers which supplement the record and to keep the track for any extra attention required.”

Delhi Airport has created and upgraded a state-of-the-art dedicated Temperature Control Cargo handling facility in the year 2012. It has a capacity of handling 1.5 lakh MT perishable/temperature sensitive cargos annually and contains spacious separate cold storage room ranging from -200C to + 250C. There are facilities like vacuum seal truck dock doors, separate units for pharma and perishable cargo, real time temperature mapping system, temperature control packing facilities, and cool dollies for movement of cargo from Terminal to aircrafts and vice-a-versa.

Highlighting the company’s significant initiatives in the segment Mamidala informed, “Celebi as a Cargo Terminal operator at Delhi International Airport has always been very focused towards efficient handling of temperature sensitive products.We have a state of the art Centre for Perishable Cargo (CPC) with different temperature controlled chambers for temperature sensitive export shipments. The Centre for Perishable Cargo has a pre-cool facility, dedicated ETV,

Although, significant improvements are done at the Airport level for temperature controlled facilities, focus is now required to enhance the reliability and efficiency of temperature controlled logistics from origin to airport.”

Airport

Chennai

Kolkata

Amritsar

Ahmedabad

Coimbatore

Lucknow

Guwahati

Trichy

Mangalore

Type

CPC

CPC

CPC

CPC

Walk-in-Type

Walk-in-Type

Walk-in-Type

Walk-in-Type

Walk-in-Type

Area (sqm)

516

756

1311

3685

10

5.44

5.56

10

10

No. of Chambers

02

03

04

04

01

01

01

01

01

Temperature maintained in Degree Centigrade

0-18

(-20)-22

0-18

2-18

4-16

2-8

2-9

2-8

4-20

Commissioned in the year

1999

2008

2006

2009

2004

2004

1998

2013

2014

One time holding capacity

33 (MT)

60 MT

80 MT

200 MT

05 MT

03 MT

01 MT

05 MT

05 MT

Maintained by

AAI

AAI

CVAHP

GAICL

AAI

AAI

AAI

AAI

AAI

28 CargoConnect - December 2018

More than three thousand machines serving factories, warehouses, super marts & churches in India.

North East West South

: : : :

Chandra Mohan Suhag +91 9899118241 Kishanu Banerjee +91 9899118243 Bhushan Rewatkar +91 9899118242 Arun Hagaragi +91 9899118244

cover story “M/s AIDC is coming up with a grand perishable cargo centre at Guwahati Airport allotted by AAI. Similarly, AAI also allotted land to M/s MP Warehousing Logistics Corporation for development of CPC facility.”

“We do have temperature control and recording system in place to see the temperature at any given point and with the movement of shipment from acceptance, x-ray, build-up and release can be viewed at any time.”

Keku Bomi Gazder

Vipan Jain

CEO, AAI Cargo Logistics and Allied Services Company Limited (AAICLAS)

3 temperature controlled chambers from +2 to +8oC, +9 to +15oC and +15 to +25oC. As an extension of the Centre for Perishable Cargo (CPC) we have a state of the art Pharma Logistics Centre with temperature controlled Chambers for Pharmaceutical shipments. The Pharma Logistics Centre has a pre-cool facility and 4 chambers from +15 to +25oC, +2 to +8oC and -4 to -20oC. Further we have brought in two Cool Dollies to extend cool chain till airside. Cool Dolly is a Refrigerated

India Cold Chain Market Future Outlook and Projections by Cold Storage and Cold Transport on the Basis of Revenue in Percentage (%), 2018-2022 100% 80% 60% 40%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

XX%

India Cold Chain Market Future Outlook and Projections on the Basis of Revenue in INR Crore, 2018-2022 47,000.0

Chief Commercial Officer, Cargo Service Center (CSC), Delhi

Accomodating Standard Practice Managing the perishability of the product is on top of everything. Keeping the right temperature is paramount as it is the most important environmental factor that influences the deterioration rate of harvested commodities. From port to a warehouse to supermarket till the time it reaches the end consumer, the salient task is to ensure that there is no breakage of the supply chain as it is very important to maintain the entire cold chain system.

“Throughout the developing world, access to lifesaving and critical health products is hampered by what is known as the last-mile problem: the inability to deliver needed medicine from a city to rural or remote locations due to lack of adequate transportation, communication and supply chain infrastructure,” says Rachid Fergati - MD, Indian SubContinent, United Parcel Service (UPS).

20% 0%

2018 2019 2020 2021 2022 Cold Storage Cold Transport

2018

2019

2020

2021

2022

Source: Ken Research Analysis

dolly on wheels, can carry one complete aircraft pallet/ container upon aircraft arrival at a pre-defined temperature, adjustable to the requirements of the perishable products.”

Meanwhile, Keku Bomi Gazder, CEO, AAI Cargo Logistics and Allied Services Company Limited (AAICLAS), shared statistics on the available infrastructure being managed by AAICLAS at AAI Airports. The capacity and its operational status, in respect of Centre for Perishable Cargo (CPC) facilities including (Cold-Rooms) available at AAICLAS managed Cargo Terminals at AAI airports, is tabulated as given below: 1. In addition, M/s Assam Industrial Development Corporation (AIDC) is coming up with a grand perishable cargo centre at Guwahati Airport within an area of 4050 sqm land allotted by AAI. 2. Similarly, AAI also allotted land to M/s Madhya Pradesh Warehousing Logistics Corporation measuring 1500 sqm area for development of CPC facility.

30 CargoConnect - December 2018

“There has been a parallel demand for cold chain logistics to move large volumes from manufacturing sites to end-users.

As a result, healthcare is a sector that continues to be a focus area for UPS. UPS PharmaPort™ 360 provides shipment monitoring and protection for temperature sensitive pharmaceuticals and vacancies.”

He adds, “UPS also created a global partnership with Zipline, a robotics company, and Gavi, the Vaccine Alliance, to explore using drones to transform the delivery of life-saving healthcare products like blood and vaccines around the world. The first flights of medical supplies to Rwanda were conducted in October 2016.”

Expressing about how DHL SmarTrucking has been addressing to perishable logistical emergencies, especially those related to managing the perishability of aproduct, Bansal boasted, “we are adequately equipped with and therefore aim to disrupt the logistics industry in India through judicious and progressive use of technology that is customized to the industries we serve.”

People. Partnership. Performance...

Infrastructure & Advantages Custom bonded warehouse Import & Export hub Buffer yard & factory stuff Cold storage & cold chain

Entrance

Storage area 28,000 sqmt Direct access to the Naational Highway 4B leading to the JNPT port Ample space for parking of 10000 cargo trucks 24X7 CCTV monitoring CFS owned equipment: 4 top lifters, 80 trailers, 30 forklifts, 2 empty handles, 1 crane Distance from JNCH: 11 Kms

Covered Warehousing Facility

Distance from Belapur station: 7 Kms Zero toll, congestion & carting charges in the CFS Zero congestion on the approach road Carting & stuffing dine in covered area Ideal location for Exporters/CHA's/Freight Forwarders

Total Protection from Rains Carting & Stuffing area: Completely Covered.

Prompt carting of cargo Wi-Fi enabled CFS

Covered Carting & Stuffing Area

15-23, National Highway 4B, Panvel-JNPT HighwAay Village Padeghar, Panvel-410206, Maharashtra Ph: +91 22 66280700-98, +91 22 66280781 | Email :jwrcfs@jwllogic.com, raaj@jwllogic.com, hema@jwllogic.com, mgrops@jwllogic.com

cover story “Healthcare is a sector that continues to be a focus area for UPS. UPS PharmaPort™ 360 provides shipment monitoring and protection for temperature sensitive pharmaceuticals and vacancies.”

leverage on a Pan India level infrastructure of warehouses and refrigerated trucks to handle emergencies. Formalising this network under the ambit of a government agency such as NCCD can go a long way in supporting the fledgling industry.”

Rachid Fergati

FSC has been a pioneer in the use of technology across businesses and below are some of the key initiatives taken up for the temperature controlled sector 1. IoT - FSC has integrated its transport management systems, developed by WebXpress with the remote temperature and location monitoring services offered by Geotracker and Novire Technologies.

This provides a real time feedback of the goods in transit thus ensuring that quality is maintained throughout transit. The same can also be made available to the customers thus ensuring transparency.

2. Alternate reefer technology - FSC is experimenting with a number of alternate technologies that use gel packs and eutectic plates to maintain the desired temperature. This not only would reduce dependency on fossil fuels for refrigeration but would also help use the existing dry assets for cold chain without compromising on quality.

3. 24 x 7 Monitoring of operational aspects - Door opening at the warehouse, loading and unloading time, transit time, etc. ensure that there is no impact on the quality of the product.

4. Remote temperature management – To eliminate the dependence on drivers for temperature management in transit, FSC is in talks with OEM manufacturers of refrigerated units to develop remote temperature management technologies. This will help transfer the control over in transit temperature from the drivers to the control tower.

5. Real time data monitoring and incident alerts - Customers are provided with access to our tracking systems thus ensuring high levels of transparency for goods in transit. This helps in taking immediate action in case of temperature excursions thus preventing loss of quality.

MD, Indian Sub-Continent, United Parcel Service

“DHL SmarTrucking functions with automated solutions that use IoT-enabled sensors. These sensors, through the company’s centralised control tower provide us with realtime temperature and consignment tracking. Information alerts and status updates are also sent to customers and DHL SmarTrucking’s operations teams through the customer portal and external and internal mobile applications.

We offer the fastest transit times with upto 95 per cent reliability, and up to 50 per cent reduction in transit times compared to traditional trucking, along with ease of use, end-to-end consignment visibility, temperature-controlled capabilities and real-time tracking that beats industry standards. Currently, we are running pan-India operations using a network of 20 Smart Hubs spread across the country, strategically located at the mid points of the traffic-heavy lanes.”

Some of the other features of DHL SmarTrucks, and steps taken to ensure safety of goods are: 1. All containers are cleaned using herbal foam after every trip is completed; this ensures there is no cross-contamination between various sensitive goods.

2. Unlike other trucks, which have an insulation foam thickness of 80-90 mm, our SmarTrucks have a thickness of 120 mm foam, which is above the standard norms, and which maintains strength, container temperature and service quality.

3. DHL SmarTrucking’s reefer units are self-powered, so temperature compliance is ensured in case of break-downs.

4. In addition, a high-security network across all arterial highways ensures absolute safety of goods during transit. Our emergency response teams are always on standby for immediate attention in case of any contingency, too.

While talking about FSC’s technical initiatives in boosting the segment, Sen avowed, “The cold chain community is a closely knit one and more often than not, support is extended by all service providers to one another to handle any exigencies related to refrigeration failure. This helps

32 CargoConnect - December 2018

Cathay Pacific Cargo which has grown to become one of the world’s leading international air cargo carriers, currently flies to 46 destinations around the world and provides a range of air cargo solutions, including animal, pharmaceutial, secure and dangerous goods - to major cities worldwide. Giving a quick rundown of the technological resources which is also driving growth of Cathay Pacific Cargo, Rajesh Menon – Regional Head of Cargo for Cathay Pacific in South Asia, Middle East and Africa informed, “Our product FreshLIFT is designed keeping these requirements in mind. Owing to the nature of perishable products and to avoid pilferage and wastage we always give priority to shipment of fresh produce.

We expedite these shipments as per space availability and make the most of our strong connections which ensures

cover story that the products reach their final destination at the earliest.

It has also helped in build the market confidence in this product and we have seen a 49 per cent growth in revenue for FreshLIFT v/s 2017.

We see major uplift of perishables from Mumbai like mangoes and other fruits. We have also carried out shipments for fish and crabs out of Chennai and Mumbai into Hong Kong, Taipei, London and Vancouver and we expect the trend to continue in Q4 of 2018.”

Navigating a dedicated Air Cargo Policy In order to promote growth in logistics, it is also necessary for the Government and other regulatory bodies in the country to lay down a comprehensive policy framework governing air cargo operations in the country and providing an environment which creates value propositions in logistics services.

Mamidala expressed, “One of the good initiatives by the government of India is the formation of Air Cargo Logistics Promotion Board to carry out various development activities in the sector in structured manner such as focusing on more allocation of space for cargo in green field airports, promoting global good practices like Free-Trade Warehousing Zones (FTWZ), Air Freight Stations, Bonded trucking, dedicated cargo airports, simplification of customs procedures, etc.

Few of the main functions of this board are to review on a continuous basis the policy regimes governing Air Cargo Logistics operations with a view to remove bottlenecks and increase efficiency, to co-ordinate with the State Governments on issues relating to Inter-Modal connectivity and to monitor implementation of Quality of Service parameters by various stakeholders in the air cargo logistics supply chain.”

Here, Gazder added that the Government is extremely positive and focused in streamlining efficiencies in the logistics industry which will also help in lowering down the logistics costs.

“We at AAICLAS are mandated by MoCA to bring out a detailed roadmap for capacity planning and development to cater the needs of the growing air cargo operations at Indian airports by way of developing National Air Cargo Policy. The vision of this policy is to bring all Air Cargo stakeholders and related Governmental Agencies in the

“Our product FreshLIFT is designed keeping these requirements in mind.

Owing to the nature of perishable products and to avoid pilferage and wastage we always give priority to shipment of fresh produce.”

Rajesh Menon

Regional Head of Cargo, Cathay Pacific, South Asia, Middle East and Africa

Air Cargo Eco System to enable the flow of goods by air within and across India and to reduce the dwell time by simplified procedures and minimising the physical handling of documents being digitalised across stakeholders and elimination of revenue leakage. The Policy would be aiming to create inter-modal hubs with an air-sea, air-road, air-inland waterways connectivity and many more transformative changes in the Cargo industry. The suggestive inputs are also being sought from the cargo stakeholders.”

Future Prospects India is surely a land of opportunities for foreign players looking at the constant, promising growth over the past few years. But, for foreign players to invest in Indian Cold Chain Industry, Indian Government has to act like an effective catalyst. FDI in retail is just around the corner and is likely to be implemented soon. The government started promoting a food safety and security bill recently which would require storage and cold chain facilities in order to reduce food wastage. This surely is a good initiative taken up by the government. The utilisation of cold chain logistics includes both cold storages and refrigerated transportation and is used to increase the shelf life of food produce. With more than 40 percent of agricultural produce being dumped in wastage bins due to lack of proper cold storage facilities, a focused effort on the government’s part is quite critical for new players to enter the league.

A lower cost of funding for setting up cold chain infrastructure facility would be helpful. Having said this, the market participant needs proper awareness about the need and demand of the cold chain facility. A proper and better understanding about efficient refrigeration techniques would play a significant role in promoting the cold chain market in India. CC

December 2018 - CargoConnect

33

special feature

Leaders in Logistics

34 CargoConnect - December 2018

special feature

The Indian logistics industry is going through a phase of transformation. The economic survey of 2017-18 has estimated that the industry is growing at a CAGR of 10.5 per cent and will achieve the mark of US$ 215 billion in the next two years. In this feature, we talk to the industry leaders and try to understand their views, goals and the strategies they are adopting to tap opportunities in this period of exceeding growth.

- Gaurav Dubey

December 2018 - CargoConnect

35

special feature

T

he Economic Survey of 2017-18 has brought sparkles in the eyes of the Indian logistics leaders as the survey estimated that the Indian logistics industry is growing at a CAGR of 10.5 per cent and would reach US$ 215 billion mark in the next two years. These staggering growth figures would facilitate a 10 per cent decrease in indirect logistics cost, leading to a growth of 5-8 per cent in exports.

Today, logistics industry is going through a phase of transformation and the efforts of Indian government like implementation of Goods and Services Tax, infrastructure status to the industry, introduction of e-way bill and other measures are contributing in the growth story of the industry. India’s position has also bettered from 54 in 2014 to 35 in 2016 in the World Bank’s Logistics Performance Index (LPI), in terms of overall logistics performance. Leading companies of the industry are aligning themselves with the reforms that the industry has been undergoing and are also in the mode of preparation to cater significant demand which is waiting to erupt from the Indian economy.

In such an optimistic scenario, we tried to find out how the leaders of the logistics industry are perceiving this transformational phase. We asked a few questions from the leaders pertaining to the challenges they are foreseeing despite the healthy measures being taken by the government, and strategies they will follow to overcome these challenges. And a few questions were company-specific like goals they missed in 2017, what possible reasons they identified. On the same lines, we also asked about the ambitious goal their company has been striving to achieve in the near future. Here are the responses of the leaders who are at the helm of the leading companies of the Indian logistics industry:

R S Subramanian, Country Manager, DHL Express India Transition period was challenging for the industry The express logistics industry saw two significant changes in 2017 – the much talked about GST roll-out, along with the lesser known migration to clearing shipments electronically. While both the reforms have been introduced to ensure speed, efficiency and compliance in the movement of goods, the transition period was a challenge as the roll-outs impacted existing systems, processes, and also required us to retrain people. The change was also huge for our customers - manufacturers, exporters and importers, SEZ units and EOU alike.

It has been a complex journey for trade and industry players (to understand and comply with the new systems and tax regime), regulatory bodies and the government as well. We are still in the learning phase and this is being continued in the present year as well.The systems are being updated and will need to work seamlessly in order to deliver the intended results.

Presently, the provision of the e-way bill is a major focus area as there are many issues needed to be ironed out. It is critical for the GST Network/

36 CargoConnect - December 2018

Logistics through innovation, dedication & technology...

Infrastructure & Advantages

Administration Building

Customs notified area Customs bonded warehouse State of the art security & surveillance Covered warehouse facilities of over 4,50,000 sqft under one roof with modern racking systems which can house more than 40,000 pallet spaces 3PL facilities

Warehouse

Flexi warehousing Robust fleet of company owned vehicles, monitored & tracked electronically 24/7 operations with CCTV monitoring Automobile logistics services Spread over 40 acres of land

Covered Warehousing Facility

Over 6000 TUEs per month, i.e. 72,000 TUEs per annum CFS owned equipment: 5 top lifters, 80 trailers, 30 forklift, 2 empty handles, 1 crane Direct access to the National Highway 17, from Panvel to Goa Distance from Panvel station: 6 Kms 3PL Admin Building

JWC LOGISTICS PARK PVT LTD, National highway 17, Panvel Goa Highway, Village Palaspe, Panvel, Maharashtra - 410206 Tel: 2143-661900 (100 lines) , 2143- 661952 | Email: jwccfs@jwclogic.com, krutijobanputra@jwclogic.com, jignesh@jwclogic.com | Website: www.jwclogic.com

special feature Our vision is to be the logistics company for the world. Through our insanely customercentric culture, we strive to connect people seamlessly by delivering consistent excellence.”

R S Subramanian

Country Manager, DHL Express India

E-way Bill system to provide a hassle-free digital interface to all the users. As there cannot be a one-size-fits-all approach, the provisions need to address all types of logistics services (domestic last mile and first mile delivery companies, international express players, road transport operators, air and sea freight forwarders etc.).

In our industry, manual clearances are an area of concern that we hope with ECCS (Electronic Customs Clearance System), will be addressed. Also, as we see shipment volumes go up at the airports across India, we hope to see more focus on the cargo handling capacity - in both freight as well as express terminals. The good news is there is continuous dialog between the industry and government policy makers towards making improvements.

It is very important that all the stakeholders work in collaboration for the holistic development of the logistics industry.

Strategies to be followed for overcoming challenges We believe in ‘Excellence. Simply Delivered.’ To achieve excellence in the movement of shipments, we strongly recommend migration to paperless trade.

Additionally, there needs to be a trust-based environment where the industry players are empowered to provide self-declaration on a digital platform that is accessible to relevant regulatory agencies and enables a single window clearance.

For example, once a self-declaration is uploaded on the GST portal, the same data should be accessible to Customs and Government agencies, thereby enabling

38 CargoConnect - December 2018

smooth export clearances. Similarly, for imports, on the basis the bill entry, the data should automatically be sent to the relevant authorities. The processes in place should be standardised and streamlined.

In reference to the cargo handling capacity at major Indian airports, we are working closely with the Civil Aviation Ministry and airport authorities to enhance this capacity.

We invested INR 100 cr. in expanding the Delhi Gateway in 2017. It has increased the export clearance capacity by 100 per cent and imports by 60 per cent. Such expansions will help process shipments at a better pace.

All these measures will increase the efficiency and speed of shipment movements thereby reducing the costs of logistics caused due to existing roadblocks.

Our vision – To be logistics company for the world Our vision is to be the logistics company for the world.

Through our insanely customer-centric culture, we strive to connect people seamlessly by delivering consistent excellence. It is our constant endeavour to make business simpler for our customers, employees, investors and the society.

As a trade facilitator, we play a key role in enabling the growth of businesses beyond borders by supporting them to trade successfully, in an increasingly challenging and competitive global environment.

Our investments in the network, technology and people help us provide best-in-class service to our customers and thereby achieve our larger goal.

Pirojshaw Sarkari, CEO, Mahindra Logistics Limited Share of organised 3PLs are still low As per the recent economic survey, India’s logistics industry is worth around $160 billion and is expected to touch $215 billion in the next two years post GST implementation. Within this, the share of organised 3PL companies is much lower at 5 per cent.

The industry faces multiple challenges such as inadequate or sub-standard transportation infrastructure such as roads, railway lines, ports and airports. In addition, there is dearth of warehousing infrastructure – both in terms of quality and quantity. The investment in technological aids

special feature Our next big goal is to be the integrated service provider of choice for ET500 companies for their logistics needs.”

Pirojshaw Sarkari

CEO, Mahindra Logistics Limited

(Internet of Things, Software etc.) remains a fraction of actual requirement.These inefficiencies and wastage lead to high cost of logistics thereby impacting competitiveness in both - domestic and global markets.

While the government has taken steps to address some of these issues, it is taking time to get things improved at the ground level. More importantly, while some customers have realised the benefits of working with 3PL companies, there are many who continue to work with unorganised sector players, impacting their total cost.

We will continue to follow two-pronged strategy to overcome challenges We have complete faith in our asset light model wherein both – Mahindra Logistics and vendor partners benefit due to synergies of interests. In the years ahead, due to enhanced investment into transportation infrastructure through projects such as Bharatmala and Sagarmala – the cost of logistics operations will be reduced and enhanced efficiencies can be expected. There is no denying to the fact that logistics is closely related to economic growth, hence, we expect the logistics industry to witness significant growth due to rapid economic growth.

Our strategy is two-pronged. On the one hand, we will continue to work with our existing customers and deepen the relationship by taking over more work for them. On the other hand, we want to demonstrate to larger industry the benefit of outsourcing and working with organised 3PL companies. However, it is essential to invest into technology to improve operational efficiency and customer experience.

Our big goal in the near future is to consolidate our position of Single Window Logistic Solutions Provider and a Cargo Management Company.”

Mahendra K Shah

Managing Director, V Trans (India) Ltd

We want to be the integrated service provider of choice for ET500 companies Our next big goals are to be the integrated service provider of choice for ET500 companies for their logistics needs and to be the technology-enabled 3PL company which provides complete visibility to its customers

Mahendra K Shah, Managing Director, V Trans (India) Ltd Rising diesel price has affected profit margins There are both external and internal challenges. One, which the entire industry has been facing is the e-way bill, though it is going to be beneficial in the long run, it will take some time for people to get used to it. Quality man-power at

40 CargoConnect - December 2018

special feature Our next big goal is to be the clear leader in the Road Express business in terms of service levels, whilst continuing to remain the fastest growing company.”

A great amount of our efforts is also directed towards our motto of “Safety first” and for that, we are concentrating on EHS (Environment, Health & Safety) management.We are giving continuous training to all of our employees and we have also introduced various programs to guide the team on safety parameters.

Abhik Mitra

We have taken the ambitious target for the present year As GST has affected everybody across the industries, we too got affected and fell short of our targets. However, in the later part of the year, the growth rate picked up and compensated substantially. We have taken ambitious targets for the current year and with the performance so far, we are confident of achieving our set goals.

Managing Director, Spoton Logistics Pvt Ltd

the industry level is also a challenge; there is a shortage of good quality resource. Another big area of concern is increasing diesel prices, which has affected our margins and operational efficiency big time. Increasing competition from unorganised & bigger players and the tech innovators is a challenge and an opportunity in equal terms.

We are focusing on increasing operational efficiency to overcome challenges Well, at V-Trans we believe in training and development of our employees, hence for the e-way bill related issues, we have already overcome the challenge by providing focused training to the concerned staff and employees. As far as the diesel prices are concerned, we try to cover the effect by increasing operational efficiency and better route planning.

We have been focusing with great depth on investing in infrastructure and technology. Network expansion is our priority and we are targeting to open 500 branches in near future as we want to cater all geographies. We are also building our fleet strength and ensuring that all company owned vehicles should be BS IV complaint and emit less pollution.

In line with our Vision 2020, along with 2 more company verticals i.e. V-Xpress - express cargo division and V-Logis - warehousing arm, we are aiming to consolidate our position as a single window logistic solutions provider and cargo management company.

42 CargoConnect - December 2018

Driving Excellence…

As stated above our big goal in near future is to consolidate our positioning of Single window logistic solutions provider and cargo management company and while doing this we are also targeting the growth rate of 20 per cent CAGR for the coming 5 years. The role of our upcoming verticals, ‘V-Xpress’ and ‘V-Logis’, is going to be very crucial and hence we are focusing on excellence in these two verticals.

We have undertaken digital transformation of the entire group to achieve efficiency and enhanced customer service level. We have invested in best in class technology and created world class infrastructure to come through our promise of Driving Excellence…

Abhik Mitra, Managing Director, Spoton Logistics Pvt Ltd Looming threat of global trade war is one of the major challenges One of the challenges we had faced in the beginning of this year was the implementation of the e-way bill. We have overcome this challenge by using significant technology and process controls through engineering design thinking.

Currently, the major challenge which I foresee, is the impact of macro-economic issues such as global trade war, increasing oil prices, depreciation of the Indian rupee and its impact on business sentiment.

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special feature We want to expand our cargo handling services from 5 airports to 84 airports located in India and across SAARC countries along with other expansion activities.”

Tushar Jani

We have built institutes to bridge the skill gap In order to address the issue of lack of trained man-power, we have created institutes to train people in Mumbai and Delhi and we are waiting for the Government’s approval for our Mumbai’s institute. We have built facilities to train 100 people every month in both the cities through our institutes. Government approval is taking time and we are also facing trouble in finding the right instructors for the institutes. We have received BCAS’s approval for our Delhi’s institute and waiting for the approval for our Mumbai’s institute.

Chairman, Cargo Service Center

Continuous improvement in service delivery level will be in focus We will focus on continuing to improve the Service Delivery of our customers’ shipments to ensure customer retention and growth of Share of Wallet. We will also continue to drive our new customer acquisitions.

We want to be clear leader in the Road Express business We achieved all our business goals of growth, profitability and Service Delivery in the previous year and our next big goal is to be the clear leader in the Road Express business in terms of Service Levels, whilst continuing to remain the fastest-growing company.

Tushar Jani, Chairman, Cargo Service Centre Lack of skilled manpower is a big challenge The challenge which I foresee is lack of skilled workforce - we will need skilled people in the upcoming time who have passed certain courses like DGR, AVSEC and others. Currently, there is shortage of trained people and govt machinery, which certify these courses, do not have adequate resources. Approvals for the training institutes are also facing delay. If we don’t build these institutes, the air cargo growth will not come at the terminals or outside.

This is one big challenge. Also, there should be ease of doing procedures - cargo security procedures should be simplified without making any compromise on the safety and security of cargo.

44 CargoConnect - December 2018

Growth forecast should be done on scientific basis The year 2017 was a growth period for the logistics industry. If we were prepared for this growth period, then we would have achieved far more than what we did in 2017. Accurate growth forecasting is neither received from trade/shipping community nor from the airlines and the Government. If forecast was available on the scientific basis, then we would have achieved more from our 2017’s figures.

As far as our operation at Delhi IGI is concerned, we would like to see the airport handling about 2 million tons of cargo a year, with us contributing a lion share.”

Ramesh Mamidala

CEO, CELEBI Delhi Cargo Terminal Management India Pvt Ltd

We want to expand ourselves across India and SAARC countries We want to expand our cargo handling services from 5 airports to 84 airports located in India and across SAARC countries along with other expansion activities. We want to increase our market share in cargo handling in India and in the International market as well.

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special feature We envision ourselves to be among the top 3 players in the next couple of years.

Subsequently, our target is to achieve leadership in the industry by 2025.�

in 2017 which has now become a reality in 2018. So, 2019 should see some significant growth in the volumes of transhipment cargo at IGI Airport.As far as our operation at Delhi IGI is concerned, we would like to see the airport handling about 2 million tons of cargo a year, with us contributing a lion share.

Sandeep Chadha, CEO, Allcargo Logistics and Industrial Parks Sandeep Chadha

CEO, Allcargo Logistics and Industrial Parks

Ramesh Mamidala, CEO, CELEBI Delhi Cargo Terminal Management India Pvt Ltd Devaluation of rupee could adversely impact imports So far, 2018 has been as good as we forecast. However, we are concerned about continuing rupee devaluation which is expected to adversely impact imports in the remaining period of 2018 and the whole of 2019. We have not yet experienced significant growth in exports, but I believe all the good work done on the policy side, should yield some positive exports growth in 2019.

Our endeavours with DIAL should gain momentum in 2019 Our focus on transhipment by establishing and running an efficient airside transhipment facility together with DIAL, should gain momentum in 2019. As we did in the previous years, we should and would be focusing on developing our RFS/ AFS network to make it easier and cost effective for exporters to use our terminal for exports in Delhi IGI, increasing awareness by conducting road shows about pharma logistics infrastructure at our terminal launching of various other value-added products and services would also be witnessed.

We are looking forward to growth in transhipment volumes We really wanted to establish a fully-functioning and an efficient airside transhipment facility for the airport

46 CargoConnect - December 2018

Huge demand is picking up and we are all prepared to cater it Being the trailblazer and pioneer in Indian logistics realm boosts our morale, at the same time we have our set of challenges and objectives to meet. In the current fiscal we do see a lot of demands happening and serving the same would be an operational challenge at our end. While we have our bases covered, it takes its own set of time and procedures to get past the Indian regularity regime.

Generally, delivering the projects at the scale we do is always a race against time and in the wake of same keeping the timelines while adhering to the policy framework is a task in itself. Having said that, we have the skill set and resolve to overcome the same. We are a resource rich and experienced group and with defined efforts we are committed to achieve our business goals of the year.

We are following 3-pronged strategy to overcome challenges Well, we have our task cut out.

The idea is to keep it simple.

We are approaching the year with 3-pronged strategy: Our land and business development team is building pipeline,. On the operational front, we have our in-house set up tasked to build our warehouses, while on leasing front we are approaching the right minded and relevant players from across the spectrum. All in all, we have the tenacity and endurance for the required deliverables.

All set for the long haul Well, being the just conceived entity of the erstwhile Allcargo Group, most of 2017 went in planning and putting the team together. It’s not that we missed something. Having said that, we spent considerable time getting the arsenal and firepower required for the long

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special feature We are pursuing USD 1 billion business target in the next 3 years as set for us by our management. To enable this, TVS Logistics has recently rolled out the integrated oneIndia structure.”

R Shankar

CEO, TVS Logistics Services Ltd - India

haul. And if all goes right, we are on course to achieve the leadership in our domain, much like the other entities of the group. We intend to deliver 15 million sq ft of built to suit Grade A warehouses over the next couple of years.

Our target is to achieve leadership in the industry by 2025 Well, there is a big goal and then there are small sets of goals that help to realise the bigger picture.

Well, our big goal is to establish Allcargo Logistics & Industrial Parks (ALIPPL) as a trustworthy and quality leader in Indian Warehousing and Industrial park sector. While our operational and policy norms are to add quality at each procedural stage, we adhere to highest possible corporate & ethical standards in all our endeavours. We envision ourselves to be among the top 3 players in the next couple of years.

Subsequently, our target is to achieve leadership in the industry by 2025.

R Shankar, CEO, TVS Logistics Services Ltd India Logistics companies need to look at innovative solutions GST is settling down and the organisations are looking at network reorganisation, along with greater outsourcing.

Therefore, prospects are opening up for organised players like TVS Logistics. To seize these opportunities, logistics service providers (LSPs) like us, will need to have the right talent on board. The wide skill gap is a constant struggle for the Indian logistics industry and the industry has been continuously facing challenges in talent retention.

48 CargoConnect - December 2018

Apart from this, every customer asks to reduce cost which poses another challenge for LSPs. Considering this, logistics companies need to look at innovative solutions and lean management principles to enhance productivity and to perform things differently in order to reduce cost. We need to embrace technology to bring visibility in supply chain while keeping budget in control. Another challenge that we all need to rise up is to become environment-conscious and continually work towards greener supply chains while maintaining higher productivity.

International best practices are being applied in India for better service TVS Logistics is one of the few large organised players with pan India presence and end-to-end supply chain solutions’ capability. With the compliances and systems in place, we are rightly poised to offer our customers the advantages of GST based on network optimization.

To leverage the opportunities that are opening up in the Indian market, and in our quest to offer innovative solutions to our customers, we are strengthening our business development and solutions team. We are also cross deploying international best practices from our operations in developed markets into India to enable enhanced operations and better customer service.

TVS Logistics is continuing to invest in and develop IT applications to use technology meaningfully for our customers. We are working on bringing in efficiencies on the back of predictive models for enhanced visibility of load carriage, turn-around-time, vehicle utilisation, loading/unloading time, load design solutions, vehicle geo-tracking, inventory tracking and safety; and route optimisation to add more value to customers’ supply chain.

TVS Logistics has crossed deployed from our overseas acquisitions appropriate technology and IT solutions like WMS (TRACE) and Demand Planner & Order Fulfilment ERP Suite (Msys); and offers various BI dashboards as Centralised Performance Monitoring tools.

TVS Logistics works closely with CII and the Logistics Skill Council to co-create curriculum for this sector. The industry skill gap issues are also addressed through several initiatives across levels – right from comprehensive teaching modules and on-the-job training for our ground staff, training school for our MHE drivers, intensive induction and training programs for our Engineering Graduates (Pelikan) and managerial training programs in collaboration with reputed domestic and international institutions. TVS Logistics’

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special feature Swiss WorldCargo aims to continue operating as a premium carrier and fulfilling the expectations and needs of our global customers. Likewise, we aim to continue offering the same standard of excellence, specifically in regards to safe, efficient and timely deliveries of our goods everywhere.”

Shankar Iyer

Director Cargo, India, Middle East and Africa, Swiss WorldCargo

diversity initiative – Project Entry – enables onboarding and training of women staff at our sites.

We are targeting USD 1 Billion business in the next three years We want to achieve a high double-digit growth for our company and move up the customers’ value chain by providing end to end supply chain solutions which are technology-enabled. This will significantly differentiate us from others; and provide a real value to customers in the form of reduction in logistics cost and high quality of service. We are also pursing USD 1 billion target in the next 3 years - set for us by our management. To enable this, TVS Logistics has rolled out the integrated one-India structure recently and different parts of the business are also taking autonomous steps to contribute to this goal.

We have noted that the market for IT services in both Africa and India has immense growth potential, specifically in regards to transparency and efficiency. This is the area where we want to focus on in the region and hope that by further developing our capabilities here, we will also be able to effectively handle an increase in volume.

Continuous investment in technology is the key to overcome challenges We will continue to invest in technologies that benefit us and through which we can overcome the challenges that we face. One example of this, for instance, has been our recent adoption of E-DGD or electronic dangerous goods declaration, alongside other airlines and partners, which represents a new way forward for more efficient ground handling and delivery.

Likewise, we need to continue to seek and invest in new technologies across the entire region, to offer our customers the solutions needed to best handle their products and ensure our commitment to quality and safe, punctual delivery.

Analysis to improve logistics of dangerous goods is under process

Shankar Iyer, Director Cargo India, Middle East and Africa, SwissWorldCargo

In the previous year, we aimed to expand our capabilities within dangerous good delivery, specifically for shipments leaving Mumbai and Delhi. While we see both locations as strong, strategic markets, each has brought some challenges as well. The shipment of dangerous goods is quite complex and requires detailed planning, and we have faced some infrastructure and business challenges at times. We are analysing how we can continue to improve our offerings in this area in the future.

Growing demand of shipments is pushing to invest more in technology

We are exploring opportunities in commodities market in India

The air cargo industry is continuing to see an increase in demand, which means that a higher number of goods must be transported with greater frequency, alongside expectations of quicker shipping times. This is particularly notable in the e-commerce segment, where we see a demand for the quick and efficient shipment of goods.

Swiss WorldCargo aims to continue operating as a premium carrier and fulfilling the expectations and needs of our global customers. Likewise, we aim to continue offering the same standard of excellence, specifically in regards to safe, efficient and timely deliveries of our goods everywhere.

As the industry advances, the growing demand for shipments around the world means air cargo leaders will also have to continue investing in the proper technologies that help firms get there – and allow for better transparency, quicker shipping and other capabilities.

50 CargoConnect - December 2018

Specifically in India, we are interested in finding new opportunities in the commodities markets. We believe that with the premium product we offer, we can add value in this area and provide service in the shipment of these goods that adheres to the standard of excellence we offer all our customers worldwide. CC

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feature

52 CargoConnect - December 2018

feature

Sustainability in Warehousing The future looks bright for warehousing. This is especially true when it comes to taking a green approach to procurement and manufacturing. Eco-friendly warehouses present a tremendous upside for the planet and companies.

Upamanyu Borah

I

ncorporating sustainability initiatives into warehouse and distribution center (DC) design is proving to be a winwin proposition. It mitigates harmful effects to the environment, encourages worker safety and comfort, while winning the respect of your customers and community.

From demographic shifts to increasing urbanisation, and from drones to 3D printing, social and technological changes will put pressure on supply chain managers to move goods closer to consumers and develop warehouses with the flexibility and speed to support local, faster delivery through multiple channels.

Facts Check The industrial sector consumes over half of the world’s energy. High energy usage is not only costly to the global environment due to rising carbon emissions, but also prevents companies from maximising profits. For warehouses in particular, utility bills account for at least 15 percent of company revenue.

The reason for reigning in energy costs is simple; Patrick Smith, Vice President, IGS Solar states, “Energy costs tend to be volatile, making it difficult to budget for this expense. When you consider that energy costs often comprise up to 15 percent of a warehouse/DC’s total operating budget, finding ways to contain this expenditure can be very valuable.”

And, tackling energy expenses is often the first step toward getting a company’s sustainability ball rolling.

“Energy saving is a gateway into developing a more comprehensive sustainability program,” says Craig Riley, Director of sustainability services for AECOM, a global engineering, design, construction, and technical services firm that specialises in green building, sustainable infrastructure and sustainability management services. “Energy efficiency is a win-win-win situation. You implement an efficiency program, you save energy, you save money, you reduce your carbon footprint and you have a legitimate component to your sustainability program.”

If this is a new area, Riley recommends beginning with an energy audit and assessing everything in the facility that consumes energy. “This will give a sense of the type and scale of opportunities that exist for energy efficiency gains,” he says. “They can then come up with conservation measures and sustainability initiatives and look at ways to fund initiatives, monitor and then track their results.” The latter is important in communicating the success, helping drive further investment and interest in energy efficiency and sustainability overall.

December 2018 - CargoConnect

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feature From Africa to Asia, developers are proving that building green warehouses can be attractive across geographic regions.

Modern warehouses are slowly moving away from the general perception of four walls and a roof to becoming more sophisticated facilities that serve as hubs for high-tech tracking, repackaging and quality control testing. The advancement of warehouses is changing the market.

“There’s a paradigm shift going on not only in our markets but globally.

Warehouses and logistics markets are seen as competitive,” said Mike Fangman, Founder and CEO of LatAm Logistic Properties.

“When you consider that energy costs often comprise up to 15 percent of a warehouse/DC’s total operating budget, finding ways to contain this expenditure can be very valuable.”

Patrick Smith Vice President, IGS Solar

LatAm Logistic Properties is building a set of three international standard, grade-A logistics warehouses near Lima, Peru. With a total of 60,000 square meters and room for future growth, the warehouses will serve a variety of consumer and logistic companies and retailers. These warehouses are unlike anything the industry has seen before.

“Our warehouses are different from what exists today. They are the first of their kind to exist in more mature markets, and the first to open in frontier markets. We’re really pioneers in building this next generation of modern warehouses,” Fangman said.

While energy savings is the key, there’s also that additional lure of incentives, particularly in new construction.

“These incentives offer money to companies to relocate, but in return companies may need to build to certain environmental compliance standards.” says Dana Schneider, Managing Director, Energy and Sustainability Projects Northeast Market Lead for

54 CargoConnect - December 2018

“You implement an efficiency program, you save energy, you save money, you reduce your carbon footprint and you have a legitimate component to your sustainability program.”

Craig Riley Director, Sustainability Services, AECOM

Jones Lang LaSalle (JLL) Americas, a real estate services firm.

The “green” advantage doesn’t stop there. “Sustainable, high performing facilities do not have to cost more,” says Rod Oathout, Global Energy

Sector Leader, and Principal at DLR Group, a global architecture and engineering firm. “A holistic approach to design that harnesses natural resources can elevate the performance of a building and provide a more productive work environment.

There are also many options through partnerships with renewable energy companies to implement renewable energy at no additional cost to the project.”

From the Ground Up With all it has going for it, it’s no surprise why more companies are pursuing Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council (USGBC). “What LEED offers is an objective way to quantify the sustainability of a project that is recognized in the market,” explains Edmund Klimek, Owner, KSS Architects. “If you’re a developer and you want to establish a value for your sustainability, LEED gives you a mechanism by which to do that. In fact, USGBC reports how LEED-certified buildings continue to command the highest rents.”

In 2013, USGBC will be releasing a new version of its LEED system that will include a checklist geared specifically for new construction of warehouses and DCs. Klimek, who worked on this new LEED release for DCs, says it better addresses some of the more unique characteristics of warehouses.

According to Klimek, even older trends are being given a fresh look, incorporating newer technologies and innovative techniques. Let’s examine how you can transform your traditional warehouse environment to help build sustainable strategies that benefit your business, your customers, and your planet. And while we can’t

feature possibly mention them all, what follows are seven of the more popular trends gaining momentum in the sustainable design of warehouses and DCs.

“There’s a paradigm shift going on not only in our markets but globally.

Warehouses and logistics markets are seen as competitive.”

Mike Fangman Founder and CEO, LatAm Logistic Properties

LEED certification, which is focused on buildings, is the sustainability initiative most applicable to warehouse services.

However, LEED certification is not just focused on energy efficiency, its sustainability focus is broader than that.

Location: According to Klimek, the primary energy use in a DC is actually not the building itself but rather the transportation that services that building. With this in mind, he suggests putting distribution centers where it makes sense primarily in terms of the logistics model. “That is your greatest impact on sustainability,” says Klimek.

Companies are turning to network studies to investigate moving their distribution facilities closer to inbound ports or closer to customers to save local transportation energy consumption—and subsequently reduce environmental emissions. The latest modeling tools literally calculate a company’s supply chain carbon footprint for its plants, its warehouses, and its different modes of transportation.

“This is then factored into the decision-making process for locating DCs in an optimized, more energy-efficient distribution network,” says Klimek.

“While energy savings is the key, there’s also additional lure of incentives that offer money to companies to relocate, but in return companies may need to build to certain environmental compliance standards.”

Dana Schneider Managing Director, Energy and Sustainability Projects Northeast Market Lead, JLL Americas

Better Lighting: Sustainability in lighting has always been one of the most popular initiatives; that’s because the percentage of energy attributed to lighting a facility is quite high.

“It represents typically about 30 percent of the energy use in a DC,” says Klimek, adding that one of the more popular lighting strategies is ‘daylighting.’

Modernised lighting focuses more on providing a true illumination option at a resourceful rate. This approach is also kind to the environment as it reduces usage and consumption rates. Several studies have shown an increase in employee productivity and attendance when working in an environment with natural light. They suggest leveraging this further by complementing artificial lighting with occupancy sensors.

Artificial lighting can be tuned off in parts of the warehouse that are not being used.

Recycling: Be it in the planning phase, construction phase, or in day-to-day operations, the trends of “recycling, reusing, and repurposing” remains the most popular in sustainable design.

56 CargoConnect - December 2018

In Indian warehousing market the lack of attention to warehouse designing is a vital issue. This ignorance stems from lack of awareness and/or lack of willingness on the part of landowners and developers to cater to the requirements of end users.

Most warehouses are built keeping in mind the developer’s perspective and not that of the end user. Hence, the focus is to save cost which results in the construction of a very basic structure for a warehouse. Such warehouses do not adhere to market standards and therefore, end users are frequently plagued with issues like lack of basic amenities and sub–standard infrastructure with lower longevity.

This approach needs to change.

The concept of Built–to–Suit (BTS) is still a far–fetched idea in India but practices like warehouse designing and end user centric warehouses need to definitely be focused on.

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feature Even before construction, our green experts see opportunities for sustainability and significant costs savings in land use—or reuse.

Instead of new facilities, they propose redeveloping vacant buildings that are currently in abundance as a result of the difficult economy. If building a new DC, reduce construction costs by using precast concrete and steel with high-recycled content.

Once the DC is operational, recycling is now fairly common practice for today’s DCs. Why not take it a step further? Use returnable plastic containers (RPCs) in internal captive pools designed specifically for a particular operation or external shared pools with standardized designs that enable supply chain-wide efficiencies.

energy use and performance.

“Sustainable, high performing facilities do not have to cost more.

A holistic approach to design that harnesses natural resources can elevate the performance of a building and provide a more productive work environment.”

Rod Oathout Global Energy Sector Leader, and Principal - DLR Group

Going for Netzero: A net-zero building is one that generates as much energy as it uses over a year, thus “net”-ting zero energy requirements to the local power grid. DLR’s Oathout describes the design of a net-zero building as an iterative process where the building function and energy footprint are evaluated to optimise performance.

“Once optimal building energy performance is determined, a renewable energy strategy is formulated, says Oathout, adding how some DCs vast rooftops make them excellent locations for solar panels.

KSS Architects recently designed a net-zero facility for Somerset Tire Service (STS) in Bridgewater, N.J., deploying a roof-mounted, 1.2 megawatt photovoltaic array that met the demands of the company’s entire corporate campus with a less than five year payback. “Ironically it was not important to them to obtain a LEED rating,” says KSS’ Klimek, “but it is probably one of the most sustainable buildings we’ve ever done.”

58 CargoConnect - December 2018

“If you’re a developer and you want to establish a value for your sustainability, LEED gives you a mechanism by which to do that.

LEED-certified buildings continue to command the highest rents.”

Edmund Klimek Owner, KSS Architects

Smarter Buildings: Buildings are not only getting greener; they’re getting smarter. It’s now best practice for new construction to have some form of smart building or energy management systems that uses “submetering” to give building managers visibility into equipment

Submetering involves installing physical measuring devices onto machinery and equipment to monitor usage of electricity, gas, water, and other utilities. This data is then sent to web-based building management software for analysis and to identify opportunities for energy and cost savings.

With an intelligent building management system, one could quickly pinpoint the problem and deploy an engineer immediately to fix it.

HVLS (high-volume, lowspeed) fans: Designed to move massive columns of air at low speeds, HVLS fans can help regulate a facility’s temperature year-round from floor to ceiling. “It permits facilities to increase or decrease thermostat temperature settings between 3 degrees and 5 degrees without realizing any negative temperature changes,” says Dan Linder, HVLS sales manager at 4Front Engineered Solutions, a warehouse solutions provider.

By networking the fans, adds Linger, they can be easily controlled and monitored from a centraliaed location.

Savings can range from 12 percent to 50 percent in cooling and heating costs, while providing employees with a more comfortable work environment.

For instance, even during triple-digit summers in Forth Worth, Texas, a leading retailer’s one-million-square foot DC hardly taps into its airconditioning system. That’s because the company installed an integrated fan control system that uses 26 high-volume, low-speed (HVLS) networked warehouse fans with 24-foot diameters to cool indoor temperatures. CC

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INFRASTRUCTURE

ANOTHER FEATHER IN Bengal’S LOGISTICS CAP -Hub to be set up at Haringhata in Nadia district

Smita Kumar

I

n continuation to make Indian logistics better, another hub is to be set up at Haringhata in Nadia district of West Bengal. The country is going to witness a hub on 100-acre land in the next two-anda-half years. It aims at generating employment to 18,310 people directly.

Finance Minister Amit Mitra said., “The West Bengal Industrial Development Corporation (WBIDC) passed the proposal of Instakart and it will be sent to the Cabinet Standing Committee for in-principle passage, which is a formality.”

As far as the upcoming hub is concerned, it’s going to house many

Amit Mitra Finance Minister, West Bengal “The West Bengal Industrial Development Corporation (WBIDC) passed the proposal of Instakart and it will be sent to the Cabinet Standing Committee for in-principle passage, which is a formality,”

Needless to say, the Government of India is making seamless efforts to make India next logistics hub.

Taking this a little forward, Instakart Services Pvt Ltd, a subsidiary of online retail major Flipkart, is going to set up the hub at the Haringhata Industrial Park. This is an around `991-crore investment and Instakart will be servicing the whole of the Eastern market.

Talking about the setting up of the logistics hub, West Bengal

60 CargoConnect - December 2018

Flipkart fulfillment and sorting centres as the node of the company’s east India operations.

Here it is necessary to inform the West Bengal Industrial Development Corporation (WBIDC) is setting up the Haringhata Industrial Park at Haringhata in Nadia, West Bengal. The park will spread over approx. 358 acres of land. The project site is bound by NH-34 towards NorthWest side (having a total road

frontage of 912 mtr) connecting to Dalkhola, where it meets NH 31, which connects it to Siliguri.

The advantages of the Haringhata Industrial Park comprise its being only 57.8 km via Barrackpore Trunk Road from the centre of Kolkata and adjacent to NH-34 and also being 53.9 km via NH34 and 60.5 km via Kalyani Expressway. Among other advantages are - it will be strategically located with good connectivity to all the parts of KMC area and surrounded by the major industrial zones of industries like those of dairy and paper. Also, the nearest airport that is Netaji Subhas Chandra Bose International Airport, Kolkata will be at a distance of just 41 km and the nearest railway station will be at a distance of only 16 km that is Naihati Junction on the Eastern Railway Trunk.

Coming back to the hub, the logistics hub to be set up by Instakart, will be getting 100 acres land on long-term lease, subject to the approval from the State Cabinet.

1. Instakart Services Pvt Ltd, a subsidiary of online retail major Flipkart, is to set up a logistics hub in West Bengal 2. Haringhata in Nadia district will be seeing an investment of about `991 crore 3. 100 acres of land on a long-term lease by the West Bengal Development Industrial Corporation allotted 4. Flipkart (Instakart) will become Anchor Investor in the Haringhata Industrial Park (to be set up by West Bengal Industrial Development Corporation) with approximate 358 acres of land 5. Direct employment will be provided to

Sources on the condition of anonymity, say that the detailed project report submitted by Instakart Services Private Limited, to the Bengal Government, talks of ensuring a smooth operation of vehicles in the logistics hub and it will be serving the North East, Bhutan and even Bangladesh.

Flipkart (Instakart) will be witnessed as an anchor investor in the Haringhata Industrial Park and the work on this particular project will be started in the coming five months.

Sources from Instakart, a subsidiary of online retail major Flipkart (now majorly owned by US-based Walmart) inform. this is going to be the second such logistics centre apart from that in Bangalore.

Also, the Haringhata Industrial Park is close to National Highway 34, with a frontage area of around 912 metres. The land will cost `63.49 lakh per acre.

Considering the upcoming logistics hub a good one, Nadia District Magistrate Sumit Gupta said, “The logistics hub is to be set up at Haringhata in the

18,310 people 6. Work on the Project will be started in the next five months 7. The Project is to finish in the time duration of two-and-a-half years 8. It is the second such logistics centre for the Company apart from that in Bangalore 9. The land is being given at a cost of `63.49 lakh per acre 10. Instakart talks of ensuring a smooth operation of vehicles in the logistics hub and it will be serving the North East, Bhutan and even Bangladesh

Haringhata Industrial Park. This will be very beneficial for the local economy. Not only direct jobs, but also indirect jobs will be generated for the people. The initiative is good.” Sumit said WBDIC would give the accurate information regarding this.

The logistics hub is to be set up at Haringhata in the Haringhata Industrial Park. This will be very beneficial for the local economy. Not only direct jobs, but also indirect jobs will be generated for the people. The initiative is good.

The Economic Survey 2017-18 reveals the Indian logistics sector provides livelihood to 22 millionplus people and improving the sector will facilitate 10 per cent decrease in indirect logistics cost, leading to a growth of 5-8 per cent in exports. The survey estimates the worth of Indian logistics market will be around

US$ 215 billion in the next two years compared to about US$ 160 billion currently. The boom in the next couple of years, is expected largely due to the implementation of Goods and Service Tax (GST).

The Indian logistics sector is a sunshine industry today and the industry is going through a phase of transformation. Due to the initial efforts of the Government of India such as Make in India programme and the improvements in infrastructure along with the emergence of skilled professionals, the country’s position bettered from 54 in 2014 to 35 in 2016 in the World Bank’s Logistics Performance Index (LPI), in terms of overall logistics performance.

A new logistics division in the Dept of Commerce has been established to coordinate the integrated development of the sector by way of policy changes, improvement in existing procedures, identification of bottlenecks and gaps and introduction of technology-based interventions. The logistics sector finds a place too in the Harmonized Master List of Infrastructure Subsector. CC

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Technology

Report claims Blockchain can become ubiquitous by 2025

C

apgemini Research Institute in its recent report, has claimed that blockchain can become ubiquitous by the year 2025, the distributed-ledger technology will enter the mainstream business and support supply chains globally. The time is not far off when blockchain will dominate manufacturing as well as consumer products and retail industries, the new technology will steer a new era of trust and transparency.

The report, “Does blockchain hold the key to a new age of supply chain transparency and trust?”, provide a comprehensive overview of the businesses and geographies that are ramping up their blockchain readiness, and predicts that blockchain will enter mainstream use in supply chains by 2025.

The report says, just 3 per cent of the organisations, are in the mode of implementing blockchain in their system and 10 per cent has a pilot in place, while 87 per cent of respondents still in the early stages of experimentation with blockchain. The UK (22 per cent) and France (17 per cent) currently leading the way with at-scale and pilot implementation of blockchain in Europe, while the USA (18 per cent) is a front-runner in terms of funding blockchain initiatives. These “pacesetters” are optimistic that blockchain will deliver on its potential, with over 60 per cent believing that blockchain is already transforming the way they collaborate with their partners.

“There are some really exciting use cases in the marketplace that are showing the benefits of blockchain for improving the supply chain, but blockchain is not a silver-bullet solution for an organisation’s supply chain challenges. Blockchain’s ROI has not yet been quantified and business models and processes will need to be redesigned for its adoption. Effective partnerships are needed across the supply chains to build an ecosystem-based blockchain strategy, integrated with broader technology deployments, to ensure that it can realise its potential,” says Sudhir Pai, Chief Technology Officer for Financial Services at Capgemini.

The study also revealed that cost saving (89 per cent), enhanced traceability (81 per cent) and enhanced transparency (79 per cent) are the top three drivers behind current investments in the blockchain. Furthermore, blockchain enables information to be delivered securely, faster and more transparently. The technology can be applied to critical supply chain functions, from tracking production to monitoring food-chains and ensuring regulatory compliance. Enthused by the results, the pacesetters identified in the study, are set to grow their blockchain investment by 30 per cent in the next three years.

Despite the optimism surrounding blockchain deployments, concerns remain around establishing a clear return-on-investment and interoperability between partners in a supply chain. The majority (92 per cent) of pacesetters point out to establishing ROI as the greatest challenge to adoption and 80 per cent cite interoperability with legacy systems as a major operational challenge. Additionally, 82 per cent point out to the security of transactions as inhibiting partner adoption of their blockchain applications, undermining blockchain status as a secure technology. CC

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Startups Startups can be the synonym of Market disruption as startups in any field with their immense energy and innovative techniques, challenge traditional companies and disrupt a market by offering the same services at competitive rates. Recently, several startup companies have cropped up in Indian logistics space with flabbergasting growth projections of the logistics industry. Here we will discuss how the startup companies with their innovative solutions, are changing the way of doing logistics business in the modern world.

Making Logistics Human Rivigo Rivigo, since its inception in 2014, has been transforming the logistics sector with the global-first driver relay model and cutting-edge technology to consistently provide unparalleled delivery times and reliability to its clients.

The model also helps ensure that every pilot or each of the company’s truck drivers, spends less time away from his family, thereby leading a life of meaning, dignity and respect.

Building Logistics Gateways for Businesses Shadowfax The company is on a mission to connect the next million micro entrepreneurs and suppliers in logistics, using a singular platform/IoT (s), to bridge the information gap and eradicate inefficiencies across the value chain.

Shadowfax provides its services under three categories – Now, Insta and Connect. One can be assured to receive his/her product in less than 60 minutes by using the services of the company.

Porter

Leading the way in Intracity Logistics

Porter, in the year 2014, had started off as a platform to address inefficiencies in the last mile logistics sector and transform the way goods are transported within cities, enabling lakhs of businesses move anything on-demand.

Since then, the company has been positively impacting the productivity of businesses, creating tremendous value for partner drivers and delivering happiness currently in Delhi NCR, Mumbai, Bangalore, Chennai and Hyderabad. The founders of Porter say, “Our journey has just begun, our goal is to deliver the world’s best end-toend logistics platform and revolutionise the transport logistics sector.”

December 2018 - CargoConnect

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ADVISORY BOARD OF PHARMA CONNECT 2019

Dinesh Dua President

PHARMEXCIL (Chief Guest)

Yogesh Lawania Head – API Planning, Global Logistics

BIOCON

Xavier Britto Chairman

Bharat Thakkar Joint Managing Director

KERRY INDEV GROUP

ZEUS AIR SERVICES

Surendra Deodhar VP – Materials Mgt

Ryan Veigas Former Head of Logistics –Asia Pacific

RELIANCE LIFE SCIENCE

TEVA PHARMACEUTICALS

Ramesh Mamidala CEO

Smiti Suri Editor

CELEBI DELHI CARGO TERMINAL MANAGEMENT PVT LTD

CARGOCONNECT

ATTENDEES

PARTNERS

SUPPORTING ASSOCIATIONS ®

MEDIA PARTNERS R

64

Ajeet Kumar: +91 9810962016 ajeet@surecommedia.com Smiti Suri: +91 9711383365 smiti@surecommedia.com Mehuli Choudhury: +91 9810730347, 8700292866 mehuli.surecommedia@gmail.com Divyanshu Sharma: +91 7018221159 divyanshu.surecommedia@gmail.com Rahul Arora: +91 9899211616 rahul.surecommedia@gmail.com CargoConnect - December 2018

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PANELISTS AT PHARMA CONNECT 2019

Vickram Srivastava

Surendra Deodhar

ZYDUS GROUP

RELIANCE LIFE SCIENCE

Delivery Head – SC

VP – Materials Mgt

Yogesh Lawania

Head – API Planning, Global Logistics

BIOCON

Vishal Shah

Executive Director

V-XPRESS

(a divison of V-Trans (I) Ltd)

Vaibhav Agrawal

PK Gupta

JOHNSON & JOHNSON

CONFEDERATION OF INDIAN PHARMA INDUSTRY

Sr. Mngr. Supply Planning, External Manufacturing

President

d. e.

Abhik Mitra

Managing Director

SPOTON LOGISTICS

FRESENIUS KABI INDIA

December 2018 - CargoConnect

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Interview

At the heart of air cargo operations in Central and Eastern Europe 66 CargoConnect - December 2018

Budapest Airport has set significant cargo handling records in 2017 and prepares to open new express facilities. With regard to that, how much investment the airport has materialised so far in developing its infrastructure?

For sure, Budapest Airport attributes high importance to infrastructure development. In 2016, we launched an ambitious development project, called BUD:2020 Development Program with a capital expenditure budget of EUR 160 million. Since then, our vision has been to improve our position in the region by delivering key infrastructure

The key driver of local economic growth for Hungary as a whole, Budapest Airport is in charge of managing, operating and developing the main international airport of Hungary and has set for itself the goal to operate efficiently and profitably on a sustainable basis.

It aims to strengthen its strong global position in the private airport market and to identify and realise the many potentials of the airport.

Excerpts from Adrián Palágyi, Cargo and Property Marketing Specialist at Budapest Airport’s interview with Upamanyu Borah.

developments going forward. Apart from pax and commercial developments, 2017’s cargo development projects at Budapest airport included two new state-of-the-art logistics bases and offices; with more than 16,000 sqm of warehouse space each, for our integrator partners- DHL Express and TNT Express. In September 2018, Budapest Airport commenced construction of BUD Cargo City. In the first phase, the EUR 32.6 million project will include a handling building with over 20,000 sqm of warehouse space, and 2 new B747-8F aircraft stands with a target handover in October 2019. The second phase

will include the forwarder building; its construction will begin in January 2019.

Notably, in the past, during the period 2010-2015, there had been significant logistics infrastructure developments as well. Hungarian Post got a new 4,000 m2 logistic facility for postal cargo at the airport, and DHL Global Forwarding and DHL Freight also moved to brand new facilities.

What added advantage do shippers get while transporting cargo through Budapest Airport in comparison to using services of other airports in Hungary?

There are 6 other smaller international airports in Hungary, but they have not pulled much reports of air cargo traffic.

In some cases the smaller airports could be an attractive alternative, but as far in Hungary, Budapest Airport is at the heart of all air cargo operations.

Security of air cargo is one of the crucial issues for airports across the world. What measures does Budapest Airport take to provide end-to-end security of cargo?

Cargo security at Budapest Airport meets all industrial standards to the highest level. The security authorities in Hungary and the airlines are quite strict in security control, but on a co-operative way so that it doesn’t hinder the operations of logistic companies. The airport itself has a so called Security Restricted Area with the highest level of control for persons and vehicles entering. The entire airport is fenced around and monitored with cameras, intrusion alarms systems, and armed security guards. The cargo handlers are required to have regulated agent licences for cargo handling, and they are controlled continuously by the authorities. On top of these, our airline partners have their own security standards which are sometimes even higher than the international regulations.

Air Cargo standards for handling time and temperature sensitive cargo is becoming more stringent.

How does Budapest Airport ensure an uninterrupted and transparent cold chain to end users?

BUD Cargo City and the new handling facility are designed to provide short access routes and handling times.

Direct connections to the motorway/ highway system and easy landside access will help to receive the cargo at faster time duration from the country (or distribute to). The operation within the building is linear and optimised, and a dedicated cargo gate will serve quick security screening and entry of cargo at the internal airport zone. The cargo handling base will be located just 100m far from the freighter stands and 500-800m from the passenger stands (belly cargo). Everything is optimal.

Cargo security at Budapest Airport meets all industrial standards to the highest level In the facility there will be solutions for temperature sensitive cargo (2-8 degrees, 15-25 degrees storages, freezers, special storage for Valuable, Vulnerable, DGR cargo, live animals).

Besides, pharma is developing rapidly in the region, so there is a high demand for implementing CEIV as well.

Air cargo industry still relies heavily on paper documentation for the exchange of data and information. In such a scenario, how much progress Budapest Airport has made to implement the e-AWB in its system?

We are in a favourable position in this matter; the country is progressing well with the implementation of e-AWB. Almost all of our airlines and forwarder partners use the e-AWB system; customs accepts it in all cases. CC

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Interview Matthias Maedge is the General Delegate for IRU heading operations at its Brussels office.

He brings extensive experience of working within the transport sector in a leadership role.

Recently, at the IRU World Congress in Oman, he decided on a comprehensive one-to-one interview with Upamanyu Borah, outlining his and IRU’s dedicated roles and responsibilities as a whole, the European Commission’s road initiatives for the current year, the extent to which they are embracing technology, steps they have taken to bring closer together the industry stakeholders, and much more.

We are rigorously working on critical subjects related to road transport and mobility 68 CargoConnect - December 2018

What is your measure of vision as the one to lead IRU’s Brussels Delegation?

With regard to the European region, my role is to interlook between industry, government and policymakers; connect all concerned and ensure efficient trade in the most sustainable manner. My role is also to ensure that we are being confronted with the right regulation for the industry. Particularly, in the EU, we have 28 countries, with different interpretation and

application of legislations. Our core aim or strategic development with focusing on four pillars - trade facilitation, talent, environment and innovation, is something that I and the IRU as a whole is entitled to give impetus to. It spurs collective action and guides public-private collaboration at a local, national, regional and global level.

What are the main basic yet vital challenges the Road Transport sector in Europe has been facing?

We are dealing with a massive shortage of truck drivers in the region. Europe alone is lacking around 2,50,000 drivers today. Also, we have to track and look at the worrying age of drivers, which is increasing, and how do we get more young people and also women to the profession.

As you know, trade is heavily dependent on road transport. Around three quarters of total inland freight transport in the EU is moved by road, which is of course posing a challenge. Moreover, strains on the transport infrastructure (congestion and delays), coupled with constraints regarding technical standards, interoperability and governance issue (taxes on fuel, vehicles, road usage) is slowing down developments within the EU’s freight transport sector.

What are the exclusives to look out for in the European Commission’s road initiatives this year?

In Europe there have been several legislative proposals to change mobility.

When one looks at Europe from the outside as a marketplace, one has to look at it as one country. We don’t have border crossing and checks anymore. Also, we don’t need trade facilitation in the internal market anymore because the government has agreed for free access and movement of goods, services, capital and people within the market.

Recently, The European Commission and the Higher Representative of the Union for Foreign Affairs and Security Policy has adopted the document setting out the European Union’s vision for a

new and comprehensive strategy “to better connect Europe and Asia,” with sustainable, comprehensive and rulesbased connectivity at its core. The Belt and Road Initiative (BRI), which is a development proposal put forward

by China in 2013 envisions trade and infrastructure networks connecting Asia with Europe and Africa along ancient Silk Road routes.

How exactly does IRU plan to bring the various road transport associations or global leaders in road transport closer together?

The IRU World Congress is a perfect example of how we are successfully bringing people together. We are offering

We are dealing with a massive shortage of truck drivers, today Europe alone is lacking around 2,50,000 drivers through our regional structure and globally together with our members, a lot of services for governments and the industry. We are running several committees and working groups on all critical subjects related to road transport and mobility.

For instance, at the IRU World Congress in Oman, we conducted our statutory meetings with the freight council, good transport council and passenger transport council followed by the general assembly.

This is how we take decisions with all members in one room from all around the world.

To what extent you believe are new technologies helping the global road transportation industry revamp? What are IRU’s initiatives for the same?

We are now fully digital and paperless and innovating our own offerings. Last year, IRU and United Nations Economic Commission for Europe (UNECE) sign agreements on the digitalisation of the customs transit procedure under the TIR

Convention. We are certainly also trying to support or co-invest in innovation and in companies whenever we see an opportunity to bring added value. We are also quite concerned globally to implement ‘Electronic Consignment Note’ (e-CMR).

What are the suggestive steps taken

by IRU to educate and aware the stakeholders in the industry?

IRU has an arm that looks after skill dissemination and also offers training opportunities. Moreover, our advocacy branch is facilitating discussion between decision makers and the industry, and that’s really at the heart of our work. We have been certainly able to offer advisory services and consultancy to governments and industry at the same time depending on the needs. Basically, it’s about sharing all the knowledge we have from over 70 years of existence. Further, with setting up offices around the world, we have been able to provide a lot of support on data and knowledge and on the dos and don’ts when new systems are disrupted whether electronically or physically in order to operate an efficient road transport system.

Is India a potential destination for major industry events such IRU World Congress? Any initiatives/investments/ future plans in the pipeline?

Eurasia is one of our priority areas.

And, also we are very much aware of the innovations going on in India. We are certainly looking forward to engage more with the Indian government. With regard to innovation and technology, we have much more to do in Indian and the region. Here, it is important that we meet bilaterally with decision makers in India to ensure we understand our possibilities to work together and provide tailor-made solutions. Not to mention, last year, India’s decision to implement the TIR system will also have far reaching benefits for trade and will save significant time and money by streamlining procedures at borders, reducing administration and cutting border waiting times. CC

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Interview

We have awarded a full solution of Intelligent Transport System With regard to Intelligent Transport System (ITS) as the key element for the modernisation of any transport company, what all ITS have you implemented so far?

We have awarded the standards, a full solution of Intelligent Transport System (ITS). We are hopeful that everything will go live mid next year.

We will roll out an application through which people will be able to book their daily, weekly, and monthly buses.

CEO of Mwasalat, Ahmed Al Bulushi has been at the helm of the company’s operations, since 2015. In a tête-à-tête with Upamanyu Borah, he talks about how the company is currently engaged in a profound process of transformation to become a modern and efficient public transport operator that is committed to cutting-edge technology. Excerpts:

Mwasalat has been undergoing a phase of consolidation. What are the exclusives to look out for in the current year?

Talking about exclusives, we will manage and run our city transport operations in both Salalah and Sohar – the two largest cities in Oman. Before the end of the year, that is what we are planning to do. We will also have a city transport service connecting the airport to the city and then to the Raysut port.

This year we have introduced more routes in the city. Our patronage has reached to an average of more than 17,000 passengers a day, which is a record high.

Moreover, today we operate in about 14 city and 17 intercity routes Talking about other services, this year, we also managed to facilitate the Mwasalat taxi service in airports, malls and ‘on calls’.

The dedicated application helps access taxi service round the clock.

70 CargoConnect - December 2018

We are also in the process of implementing the following as part of ITS: Advanced Planning and Scheduling System (APS); Automated Vehicle Management System (AVMS); and Automated Fare Collection System (AFC), to be functional by June next year. All these initiatives will help to improve transport systems and mobility, and reduce traffic associated problems.

We have already implemented smart ticketing, passenger information system (PIS), etc.

Any existing or significant challenges the company is facing in the public transport sector, which is quite much typical in Oman?

The one significant challenge is the stops and accessibility. We need to work hard on connecting better some of the places and modifying the infrastructure.

Further, the weather is a challenge for the users; we have tried our best to reach out to a diameter of 700-500 mts, people who hold up within this range can easily have access to public transport. Also, the absence of a dedicated or priority lane for public transport is being deeply felt. We are working along with the municipality to overcome this.

Any challenge the company faces in cases of land acquisition? What measures has the company been taking to minimise the cost of acquiring land in order to keep the

cost of a project nominal?

The government is providing the company with lands across the country; therefore we face no issues with land acquisition. Our target is to secure investors in the future for acquiring land here, so we have already reduced the subsidy.

How will you strategise on your future offerings in order to maintain yourself as a profitable company in the public transport sector?

If we talk about cities with mass population or towns where there are many users of public transport, profitability can break-even. Otherwise, when we talk about countries like Oman or other similar, where there are not much people to use public transport, it is not easy to break-even or gain profits, added the fact that we are government owned/subsidised. Further, we also need to keep in mind the affordability factor.

With regard to logistics trade, do you believe Oman is a potential market in the Asian region, with maintaining 43rd position in the LPI, just a step ahead of India?

I believe, we are doing our best to climb up the LPI ladder and I am certain that the next reports will indicate a better consolidated position than the rank at which we stand at present. Recently, at the IRU World Congress 2018 held in Oman itself, we have signed the Transports Internationaux Routiers (TIR) agreement- Customs Convention on International Transport of Goods under cover of TIR Carnets. This will make the movement of cargo easier across territories. Moreover, the steps that the Government is taking or introducing for faster cargo clearance will also help us to stand tall in terms of overall logistics management and operations. CC

Constant interaction with our customers helps us drive excellence

(TMS) and Warehouse Management System (WMS). Also, we are using the link between our telematics and TMS to develop interfaces for our customers so that they can have ultimate visibility and an ability to see in real-time when their loads are expected to arrive at their destination, as well as the subsequent immediate upload of Proof of Delivery (POD). It cuts out the need for phone calls between us and our customers.

We have always believed in facilitating transparency.

Moving through the ranks of his 86-year old family business to become one of the rising stars of the UK logistics industry, Alex Knowles, Managing Director of Knowles Transport started in the company’s transport and warehousing sections following his graduation from Oxford Brookes University in 2011. More from his interview with Upamanyu Borah at IRU World Congress 2018 in Oman.

Tell us about Knowles Transport’s exclusives when it comes to offering optimised solutions.

We are continually working closely with customers and our IT suppliers to identify and implement the most efficient IT systems that allow us to create superior and successful supply chain partnerships helping us offer optimised solutions. Our Warehouse Management System (WMS) is both highly functional and adaptive to meet the needs of all our customers. It has sophisticated reporting and analysis tools, which allows both our customers and our team to make informed decisions about the most efficient way to handle stockholdings. Further, our Transport Management System (TMS) is constantly in sync with our WMS, continually updating our traffic teams with the most up-to-date information relating to customer deliveries. Also, tracking and telematics have become integral to not only offering greater visibility and customer service over the past decade, but in allowing our teams to plan and allocate with much more effect, allowing us to target inefficiencies in driving behaviour, helping us to reduce vehicle miles and their emissions.

What makes your services different?

Are there competitive advantages compared with offerings from other competitors? Are there competitive disadvantages you will need to overcome?

Interview

We have a customer led approach. We are in constant interaction with our customers which helps us improve; drive excellence into our operations, and also bring into effect any service or offering that our customers require. Our operational flexibility and alternative distribution models are the key factors, which help to reduce mileage and increase efficiency.

I wouldn’t say any competitive disadvantage specific to our business; rather I would mention the two vital industry issues such as driver shortage and increased vehicle costs.

Logistics operators end up aggressively competing not just for customers but for these issues as well.

We are lobbying the government; we are speaking to schools with trying to put the truck driver role in the mix for young people when they think about choosing their career. We are trying to demonstrate that this is a career that pays well for men and women with a basic education, at the business as well as the industry level.

Apart from logistics services and facilities, what kind of integrated solutions do you provide to maximise customers’ logistics efficiency and support their further expansion in the market?

We do a lot of IT integration with our partners; connecting their ARP systems with our Transport Management System

Along with offering excellent logistics solutions, do you also structurally invest in trend research and solution development?

We invested heavily in 2016 in our new distribution center. We put in an overwhelming level of automation for pallet racking.

However, in terms of or specific to transport, the live ETA factor or visibility in real-time that we offer or provide is something quite innovative that we have done so far. It’s common within parcel delivery sector but not something usual within the transport sector.

What challenges you foresee in the year 2019 for your company?

For 2019, Brexit is all that we are concerned about. With regard to the uncertainty, I believe it’s not good for any business, particularly logistics business. The pound has dropped 20 percent so far. Certainly, it’s an unnecessary hinderance to business.

We have a lot of import customers from Europe such as Italy, Spain and so on, and I am much worried for them and so are they. It affects our business and the entire supply chain.

We are equally concerned about driver wages rising again. Also, if there is a drop out on truck drivers, it would be another serious problem to deal with and will further augment the issue of skill driver shortage in the industry. CC

December 2018 - CargoConnect

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PM Modi inaugurates India’s first inland waterway terminal on Ganga Prime Minister Narendra Modi on Monday inaugurated India’s first multimodal terminal on the Ganga river in his parliamentary constituency here and received the country’s first container cargo transported on inland waterways from Kolkata.

The first consignment containing food and beverage had set sail from Kolkata in the last week of October.

The Prime Minister was accompanied by Uttar Pradesh Chief Minister Yogi Adityanath, Union Transport, Highways and Shipping Minister Nitin Gadkari and BJP State president Mahendra Nath Pandey, who is also the MP of the neighbouringChandauli Lok Sabha constituency.

This is the first of the four multi-modal terminals being constructed on the National Waterway-1 (river Ganga) as part of the World Bank-aided Jal Marg Vikas project of the Inland Waterways Authority of India.

The total estimated cost of the project is ₹5,369.18 crore, which will be equally shared between the Government of India and the World Bank.

Earlier, upon his arrival here, the Prime Minister was given a detailed presentation of the waterways and watched a short film on the viability of the waterways between Varanasi in Uttar Pradesh and Haldia in West Bengal.

According to an official statement, the Centre’s Jal Marg Vikas Project aims at developing the stretch of the river between Varanasi and Haldia for navigation of large vessels weighing up to 1,500 tonnes to 2,000 tonnes. Its objective is to promote inland waterways as a cheap and environment-friendly means of transportation, especially for cargo movement.

Cargo iQ helping Emirates SkyCargo to deliver better value to customers

India’s Jet Airways has recently set new cargo lift record as it transports 45 tonnes of cargo on one of its flights on the Mumbai-London route operated by a B777-300ER aircraft.

With this, it entered global record books for the highest uplift of cargo by an Indian carrier in a single flight.

The record cargo comprised of product mix including perishables (fruits and vegetables), engineering goods, garments, courier, leather goods and consolidation cargo.

Pradeep Kumar, SVP, Jet Airways Cargo, Jet Airways, said: “This milestone is testament to our dedicated focus of growing cargo revenues, which has recorded a CAGR of more than 15 percent in the past three years.

Jet Airways operates B777-300’s on the India – United Kingdom route, which allow us to carry over 100 tonnes of cargo daily.

Emirates SkyCargo announced that it has monitored nearly 823,000 shipments using Cargo iQ guidelines in the first six months since it received certification.

“The Cargo iQ paradigm is transforming the way we interact with service providers including Ground Handlers and Road Feeder Service partners by bringing increased transparency, control and focus on quality of service into the shipment process,” said Henrik Ambak, Emirates senior vice president, cargo operations worldwide.

Through its Cargo Operations Command Centre, Emirates SkyCargo uses live Cargo iQ data to follow shipments against predetermined key milestones from acceptance to delivery, therefore enabling the company to meet scheduled milestones and make the shipment available to the customer on time.

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Logistics Data Bank achieves a milestone of tracking 10 million EXIM containers

Private ports of Gujarat pose record traffic growth

The digital container tracking solution of DMICDC Logistics Data Services (DLDS) has brought in its ambit Cochin Port, an initiative that will streamline the container logistics operations at one of the busiest ports on the Arabian Sea. Logistics Data Bank (LDB), the single-window tracking solution that has hugely improved operations in Indian container logistics, launched its services at the ports of Chennai, Visakhapatnam and Krishnapatnam this month.

With today’s inclusion of Cochin Port, LDB’s ICT-based services have become operational at seven ports of India at 15 port terminals.

The launch of LDB operations at the Cochin Port will create visibility and transparency in the container operations. All the stakeholders will benefit, Alkesh Sharma, CEO and Managing Director, DMICDC, said, adding that the company is going to make it operational in all other major ports.

Private ports in Gujarat have reported a healthy growth of 16 per cent in cargo handling for the first seven months (April-October 2018) of the fiscal. At 113 million tonnes of cargo handling for the period, the share of private ports in the overall cargo handling at all non-major ports in the State stood at 50 per cent.

A Gujarat Maritime Board (GMB) - the state port regulator data revealed that for the month of October 2018, Adani Groupcontrolled Mundra Port handled 74.4 million tonnes, up 13 per cent on year-on-year basis, while Dahej Port and Pipavav Port witnessed growth of 22 per cent and 21 per cent respectively at 18.9 MT and 5.8 MT of cargo handling for the month respectively.

Overall the GMB ports (non-major ports) handled around 226 MT of traffic for the period under review as compared to 208 MT during the same period last year. In the year 2017-18, the private ports’ share in overall traffic at non-major ports was about 47 per cent with 97.2 MT of crago handling.

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Direct flight between Coimbatore and New Delhi from Dec1

Western India’s only exhibition on Refrigeration & Cold Chain industry

A non-stop direct, daily flight between Coimbatore and New Delhi is slated to commence from December 1.

National carrier Air India, which is at present operating flights from this textile hub to Mumbai and Chennai, as also to Delhi via Chennai is to commence the Coimbatore- Delhi direct operation.

It is learnt that the new daily flight will leave Delhi at 21.15 hours to reach Coimbatore at 00.30 hours (30 minutes past midnight), and in the return direction, depart at 01.00 hours to reach Delhi at 04.00 hours.

This direct connectivity is expected to be a boon for business travellers and others planning to fly out from Delhi.

Air India sources said that the direct flight to the national capital will facilitate passengers to get connected to more than 30 domestic destinations in the north and eastern part of the country on arrival in Delhi and to around 20 international destinations including Europe.

The 7th edition of India Cold Chain Show 2018 is scheduled to take place on the 13-14-15 of December, 2018 at Hall Number 4, Bombay Exhibition Centre, Mumbai, Maharashtra.

The show has grown over the years to be the largest and leading event showcasing entire range of solutions and services for Cold Storage Infrastructure, Material Handling, AIDC Solutions, Refrigeration, Temperature Control, Cold Logistics and Supply Chain for diverse industries with cold chain intensive business operations such as Dairy, Ice Cream, Seafood, Meat, Frozen Food, Fruits and Vegetables, Retail, Export Import, Oils, Bakery, Ports and Airports, Hotel, Floriculture and many more.

Govt identifies 11 emergency landing air strips on national highways

HKIA reports increase in transshipment cargo

In order to ensure timely relief work in the event of natural disasters and in emergency situations, the Ministry of Road Transport and Highways is planning to set up 11 emergency landing air strips on National Highways across seven states.

The Centre has identified 13 such roads across states where emergency landing can take place. Two of these roads are under state control, while the other 11 roads fall under the National Highways Authority of India (NHAI).

The other states that will have similar emergency landing air strips include Rajasthan (2), West Bengal (1), Andhra Pradesh (2), Tamil Nadu (2), Jammu & Kashmir (2) and Odisha (1).

Hong Kong International Airport (HKIA) handled 451,000 tonnes in October, a 2.8% rise over the same month in 2017. HKIA reported a 7% year-on-year rise in transhipments, which continued to be the main driver for cargo growth. Among key trading regions, traffic to and from North America and Southeast Asia posted the most significant increases for the month.

Over the first 10 months of the year, HKIA handled 4.2m tonnes of cargo and airmail, representing a year-on-year increase of 2.6%. On a 12-month rolling basis, HKIA handled 5.1 m tonnes of cargo a rise of 3.3% and 2.2% over the same period last year.

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GVK planning to divest 50% stake in Airport Holding business GVK Power & Infrastructure Limited is on course to divesting stake in its airport holding arm and raise funds through an Initial Public Offer, as a part of its efforts to consolidate its business and take up expansion of new projects. The company expects this process to complete over the next few months.

Seeking approval from the members’ to dilute over 50 per cent stake in the airport arm, the company management proposes to utilise these funds to retire some of the debt and meet requirement of upcoming projects, including the `15,000-crore Navi Mumbai airport.

The company sought shareholders nod for an enabling resolution which will enable it to raise up to `8,000 crore, which in turn will help pare its debt. The board of directors are seeking to raise the funds through either private equity funding or an IPO of the GVK Airport Holdings Limited.

At the 24th annual general meeting here today, GVK Reddy, Founder-Chairman of the diversified Hyderabad-based infrastructure company, said: “the company’s 25th AGM will hopefully bring cheer to the company shareholders, who have been very patient about the company’s future prospects, in spite of several headwinds.”

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Air India planning to raise 800 crore by selling real estate properties National carrier Air India plans to mop up `700-800 crore by selling over 70 residential and commercial properties spread across the country, a senior airline official said on Thursday.

This fresh bid is a part of the airline’s real estate assets monetisation plan approved by the then UPA government in 2012. As per the plan, Air India had to the garner funds to the tune of `5,000 crore between April 2014 and March 2021, with an annual target of Rs 500 crore from FY13 onwards. The properties, which are spread over 16 cities pan India, will be e-auctioned through the state-run auctioneer MSTC. “We are expecting to raise about `700-800 crore by e-auctioning of these over 70 properties, which comprises both residential as well as commercial. Some of these properties are those which we put up on the block earlier but could not get a buyer,” the official said.

DB Schenker digitalises global spare parts Business DB Schenker continues to focus on its digitalization campaign. With the launch of another new online platform, the spares logistics divisions of customers from the industrial and aerospace sectors are now also being digitalized.

DB Schenker’s “Logistics Orchestrator” now controls the central management of all spares orders within a global distribution network. Delivery times to the end customer can thus be significantly reduced, since the supply of all spare parts is ensured.

“With our ‘Connect’ initiative, we are continuing to make rapid advancements in the digitalization of our freight products. With “Logistics Orchestrator” we are now launching a special digital solution focusing on our customers in the industrial and aerospace sectors,” says Markus Sontheimer, Chief Information and Chief Digitalisation Officer of Schenker AG. Until now, spares logistics within large, global distribution networks have been coordinated independently at regional or local level. Orders were also largely managed locally in different organisations with varying ERP systems and business rules. With “Logistics Orchestrator”, everything is now digitally controlled “from a single source”, both global delivery and order management.

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INDIAN FMCG MARKET 2020 FMCG is the 4th largest sector in the Indian economy. A country whose middle class population is as big as the entire population of USA is a market which no FMCG player can afford to overlook. India’s robust economic growth and rising household incomes are expected to increase consumer spending to US$ 3.6 trillion by 2020. FMCG market in India is expected to grow at a CAGR of 27.86 per cent and is expected to reach US$ 103.70 billion by 2020 from US$ 52.75 billion in 2017-18.

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Industrial park rating system to boost competitiveness: Prabhu Development of industrial park rating system would help increase competitiveness of industries and promotion of the manufacturing sector, Commerce and Industry Minister Suresh Prabhu said.

The system is being developed by the ministry to assess industrial parks in the country based on four pillars -- internal and external infrastructure, connectivity, environment and safety management, and business support services.

There are over 3,000 industrial parks in the country in sectors including engineering, software, food processing and chemicals.

Under the system, the ministry would assess 200 such parks on several parameters such as sewage effluent and treatment; and water treatment.

Secretary in the Department of industrial Policy and Promotion (DIPP) Ramesh Abhishek said, going forward the system could become a ready-to-refer database for prospective investors in these industrial parks.

Truck operators demand uniform fuel rate The govt should bring diesel and petrol under the GST to help transporters plan their operations efficiently. It is becoming extremely difficult for transporters to operate with daily fuel pricing, said Akhilesh Singh Yadav, President, Jamshedpur Transport Welfare Association. Few days back, the Centre and some states announced cut in taxes and the fuel prices declined by nearly `5 per litre but within a week it returned to earlier price. Uniform fuel price across the country will be very useful for transporters. Diesel and petrol prices should be brought under the GST. he said at a discussion, which was part of ‘Lead the Road’, a ‘Transporters Meet’ at Jamshedpur by BusinessLine.

APM Terminal Pipavav capitalising strength in LPG and Auto cargo segments Private ports operator, APM Terminal Pipavav looks to capitalise its strength in the Liquified Petroleum Gas (LPG) and automobile cargo for a faster growth of its port operations at Pipavav port in Gujarat.

The port operator has reported sustained growth in the container cargo volumes at 238,000 TEUs, which was recorded at 1,95,000 TEUs in first quarter of the fiscal 2018-19.

The company attributed growth to new service additions of Coastal and Transshipment volumes.

Keld Pedersen, MD, believes that growth in port’s operations will be driven by the rise in LPG and automobile cargo businesses. “We are very keen on seeing exports grow.

Car manufacturing in India, goes hand-in-hand with our port operations. We are preferred port for many of the auto OEMs. The outlook for automobile exports is bright and we are optimistic for sustained growth in this segment,” he said.

Chatbots to help air travellers in addressing their grievances Chatbots will now help air travellers in addressing their grievances, as the govt launched an upgraded version of AirSewa digital platform. Also, passengers can have access to real-time flight status and schedule for both domestic & intl flights, according to the Civil Aviation Min. AirSewa 2.0, the upgraded version of the web portal & mobile app, provides chatbot support for faster resolution and personalised traveller experience. Passengers can sign up using their Fb & Google accounts. Generally, chatbots are computer prog that interact with people through audio or text msgs.

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Saudia Cargo brings in WWE “Crown Jewel” event equipment to the Kingdom Saudi Airlines Cargo Company has once again helped bring World Wrestling Entertainment (WWE) event to the Kingdom by transporting all the equipment and supplies for the long-anticipated Crown Jewel tournament to Riyadh.

The WWE event, which millions of wrestling enthusiasts look forward to, will go ahead on time and as planned thanks to its highly-advanced logistics capabilities of the cargo company and its dedicated operations team.

Saudia Cargo B747-8 transported the 100-ton equipment and machinery together with sound and lighting systems and other supplies from Maastricht, Netherlands, to Riyadh in mid-October.

Last April, the company transported the WWE heavy equipment and machinery including the parts of the wrestling ring from John F. Kennedy International Airport to Jeddah, where the WWE event took place.

Guwahati Airport initiates custom clearance service Cargo transportation from the Northeast is set to get a boost with the initiation of direct custom clearance of air cargo from the LGBI Airport.

The development, especially assumes significance for the farm export from the region. Recently, a consignment of 810 kilograms of vegetables were sent to Dubai via New Delhi on an Air India flight (AI 892) recently. The vegetables were sourced from various districts of Assam. D.K Kamra, regional executive director - AAI, Northeast East Region, said that for the first time in history of the region, the direct export mode via air cargo has been initiated by the air cargo department of the LGBI Airport.

DB Schenker and Einride launch for first commercial installation of a T-pod

FarEye enabling efficient distribution and movement of finished products

DB Schenker and Einride launched the installation for the first commercial use of a T-pod – an allelectric, autonomous truck – at a DB Schenker facility in Jönköping, central Sweden.

We at Schenker are working at full speed on sustainable and innovative logistics.

Autonomous driving will become increasingly important for this. Together with Einride, we want to bring the first autonomous, fully electric truck onto public roads in the near future and thus set new standards for tomorrow’s logistics,” said Jochen Thewes, CEO of DB Schenker.

FarEye, a global predictive logistics platform, is eyeing the Distribution Logistics industry in India with its technology solution that provides real-time visibility of the goods in the supply chain. FarEye has designed an end-to-end platform to run Distribution logistics and optimise goods movement.

FarEye On-Demand solution ensures that every received order gets accepted and catered in minimum time with least logistics cost. Kushal Nahata, CEO and Co-founder, FarEye, says, “With our efficient solution, we are helping businesses by digitalising their Demand and Inventory planning process.

Besides, it enables us to shorten the delivery time from next day to same day, transform the entire restock process to an on-demand service, and create full transparency for our clients.”

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GENESIS OF AIR CARGO

A

ir Cargo started on May 28, 1910, when Glenn Curtiss flew a sack of mail from Albany to New York City for the Post Office Department, covering the 150 miles in two and a half hours. In fact, it all started on November 10,1910, when the Wright Company flew 65 miles from Dayton to Columbus, Ohio, with five bolts of silk cloth strapped into the passenger seat of the plane for a department store that wanted to sell strips of the cloth as mementos of “The first air shipment.”

All branches of transport-road, rail, shipping–started with passenger transport. Air Cargo has made tremendous strides in the recent years.

Four major developments witnessed in the recent years in the Air Cargo are • Advent of wide-bodied aircraft • Containerisation • Computerisation • Improvements in Air Cargo terminals Cargo facilitation is generally different from passenger facilitation. Cargo needs to be looked after whether it is animate or inanimate. It requires loading, unloading, packing, unpacking, labelling, weighing, movement, stacking, storage, special handling, palletisation and depalletisation. Moreover, there are a lot more formalities in the clearance of cargo,we may, therefore, classify cargo facilitation under two heads-base facilitation which involves: physical handling of cargo andtrade facilitation which includes procedures and documentation.

Base facilitation is the responsibility of the airline in case they handle their own cargo or of the airports if the latter creates centralised cargo handling facilities. Trade facilitation is the responsibility of Customs and regulatory government agencies.

Terminal facilities at the International

82 CargoConnect - December 2018

Airports must also keep pace with the anticipated growth of cargo traffic and our Customs procedures need to be simplified and speeded-up.

The Market for Air Freight: The shipping of commodities by air is the most desirable for distribution when one or more of the following characteristics is present: When the commodity is: • Perishable • Subject to quick obsolescence • Required on short notice • Valuable relative to weight • Expensive to handle or store When the demand is: • Unpredictable • Infrequent • In excess of local supply • Seasonal When the distribution problems include: • Risk of pilferage, breakage, or deterioration • High insurance costs for long intransit periods • Heavy or expensive packaging required for surface transportation • Need for special handling or care • Warehousing or stocks in excess of what would be needed if air freight warehoused • Air freight is a premium service and can add a new competitive edge to the marketing effort. Superior service adds value to any product and generates a quality image for the shipper.

• The risk of pilferage, breakage, or deterioration is minimised through the use of air transportation because of the lack of in-route handling and exposure of goods to long periods under minimum security.

• Insurance charges tend to be

substantially low for air freight than for surface freight, because there is less risk by air and because the transit time is shorter.

• Packaging for air freight usually incur minimal cost because air transport reduces the risk of jolts and shocks.Cardboard cartons are usually sufficient for air freight, whereas heavy wooden crates may be required for surface transportation.

The Future of Cargo: Two primary factors influence freight growth – economic conditions and rate levels.

The outlook of both is positive for cargo. Moderate economic growth is expected to continue in the future, with only a minor slowdown in the short term. Cargo rates should also remain low as several factors may keep the lid on prices.

A large number of new aircrafts have been introduced in the recent years.

This new capacity will help in keeping prices low. And, labor costs for the global airlines may continue to move downward due to better utilisation of the labor force and continued industry consolidation.

With the pickup in the demand of air cargo, there will be a need for specialised aircrafts. Currently, there is a lack of cargo-specific aircraft throughout the global fleet. Most of the airplanes that are being used to transport air cargo are converted passenger aircrafts. In several cases, the aircrafts are old, costly to operate, and at the end of their life span.

As these aircrafts are on the verge of retirement, aircraft manufacturers are realising the need to produce aircraft that are geared toward air cargo transport.

(Authored by B K Mehrotra, Chief Operating Officer, AAICLAS)

APPOINTMENTS CEVA appoints Pimenta as MD of Australia & NZ cluster

Jochen Krug becomes the new regional manager Asia of ECS Group

CEVA Logistics has appointed Milton Tadeau Pimenta as managing director of its Australia & New Zealand cluster.

Currently head of contract logistics in South America for the company, Pimenta will take up his position in January 2019, reporting directly to chief executive officer, Xavier Urbain.

Pimenta takes over from Carlos Velez Rodriguez who is leaving CEVA to pursue other career opportunities but who will work with Pimenta to ensure a smooth handover.

Urbain said, “Milton is a true team motivator who is ideally placed to lead the Australia & New Zealand cluster in the next step of its development.”

ESC has appointed Jochen Krug as regional manager for Asia as the company continues to target expansion in the region.

The GSSA said that Krug has more than 30 years of experience in the air cargo industry, having worked for several major groups, including Kuehne+Nagel, Schenker, Senator International Logistics and JH Bachmann Logistics.

ECS Group chief executive Adrien Thominet said, “His experience and in-depth knowledge of the field make all the difference and we are delighted to welcome him on board.”

AirAsia India ropes in Sanjay Kumar as COO

Gloy to lead Lufthansa cargo operations

AirAsia India has appointed Sanjay Kumar as its Chief Operating Officer with effect from December 03, 2018.

“In the new role, he will be responsible for commercial/ operations of the airline.

He will be instrumental in shaping next phase growth at AirAsia India and will be reporting to the newly appointed CEO & MD, Mr Sunil Bhaskaran,” the company informed.

Kumar, a seasoned professional in the Indian civil aviation industry, has over 25 years of experience in the airline industry across functions like business planning, strategy, network development, distribution and sales, marketing, advertising and public relations.

Harald Gloy will join Lufthansa Cargo’s executive board with responsibility for operations, taking over from Soeren Stark on 1 January 2019.

Gloy is responsible for global component services at Lufthansa Technik and is also the spokesperson for the division board.

In his new role, Gloy will be responsible for handling in Frankfurt, Munich and the Lufthansa Cargo Service Centre, as well as the areas of Global Handling Management, Flight Operations and Transport Management, and Security.

Gilene promoted to senior VP at CHEP USA

WFS elects VP group commercial cargo

CHEP, the global leader in pallet pooling and supply chain management solutions, has appointed Jake Gilene to the role of senior vice president, sales and customer service, CHEP USA. The new position is the most recent promotion in Gilene’s long, tenured history with CHEP. Gilene will lead a team devoted to positively impacting the industry and customers. He will be responsible for commercial strategy, delivering new products, services and solutions to help customers find more value in their supply chains.

Worldwide Flight Services (WFS) has appointed Duncan Watson as vice president – group commercial cargo.

Watson brings 30 years of experience to WFS having spent 18 years at DHL with local, regionWal and global commercial responsibilities before joining Emirates, where he worked for 11 years and ultimately held the position of vice president – cargo commercial operations.

He will report to group chief commercial officer, Barry Nassberg who says: “Duncan brings a new dimension to our group commercial team.”

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ACCD celebrates Diwali event with gusto Members of Air Cargo Club Delhi (ACCD) celebrated Diwali event with full sparkle and shine at FIO Country Kitchen and Bar, Garden of Five Senses on October 26. Many ACCD members complemented the event with their spouses dressed in dazzled attire which added more glamour to the air. On the occasion, a popular fusion band BLACKSLATE enthralled the attendees by singing classic English and Hindi numbers. Expo Freight Pvt Ltd sponsored a special Mehandi event for ladies on the eve of Karva Chauth. Apart from this, ACCD is all set to host mega event of the year – Annual Ball at Hotel ANDAZ, New Delhi on December 22 and its preparation is in full swing.

C.H. Robinson relocates its Chennai office to a bigger premises C. H. Robinson, a leading global non-vessel operating common carrier (NVOCC) and logistics solutions provider, has announced the relocation of its Chennai office to a bigger premises at Pottippatti Plaza, Nungambakkam. The inauguration was graced by Madhav Thapar, the company’s new Managing Director, as well as other key officials and employees.The well-equipped office is expected to facilitate increased flexibility and customer ease.

Having its global headquarters in Minnesota in the US, C. H. Robinson is one of the world’s largest providers of freight and transportation logistics services, outsource solutions, technology and fresh produce sourcing. Serving thousands of customers in multiple industries around the world, it has offices and local employees in North America, South America, Europe and Asia Pacific.C.H. Robinson has been present in South Asia since 2006 and currently has a network of 20 offices in the Region with around 400 employees.

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Landmark world transport industry roadmap signed as IRU World Congress concludes declaration was also signed between IRU, the guardian of the TIR system under the United Nations mandate, Mwasalat, the official TIR issuing authority, and the Royal Oman Police Directorate General of Customs.

The interactive roundtable sessions discussed a number of hot topics including data management and analysis, enhancing competitiveness with infrastructure development and new intermodal connections, designing the future workforce, adopting next generation platforms, enabling trade facilitation and increasing fuel efficiencies.

Companies, entrepreneurs, and start-ups shaping the future of the mobility, logistics, and transport industry were also exhibited at the Innovation Alley of the Convention Centre.

The final day closed with the endorsement of the Muscat Compact that focuses on four key elements: talent, trade, environment and innovation, and the launch of a major new industry survey by IRU, which highlights technology-driven innovation as the key to meeting the challenges of tomorrow.

Secretary General of IRU, Umberto de Pretto, said, “This is a defining moment for the industry. We can’t predict the future, but we can forge our own destiny within it. The survival of the industry – of global prosperity – depends on it.”

Upamanyu Borah in an exclusive coverage from Muscat

Organised by IRU and co-hosted by ASYAD in collaboration with the Ministry of Transport and Communications, the World Road Transport Organisation (IRU) World Congress kicked off in Muscat at the Oman Convention & Exhibition Centre on the 6th of November. Participants from over 75 countries gathered to help shape the future of the industry over three days, driving debate on trade and innovation, in the region and beyond.

Themed “Innovation on the Move”, this year’s Congress explored the role of technological advancements in optimising operations management, driving continuous improvement and facilitating global trade. “The faster we adopt disruptive technologies, the better chance we have to stay competitive and serve our customers better,” said Nabil Salim AlBimani, Group Chief of Ports & Freezone and member of the organising committee. “Technology-driven innovation will be the key to meeting the challenges of tomorrow.”

The first day started with a special session organised in partnership with Mwasalat, Oman’s national transport company, which brought together leading international figures to examine major challenges facing passenger transport operators today and discuss the solutions for tomorrow. A

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Zebra releases study on Truly “Intelligent” APAC Enterprises Zebra Technologies Corporation, an innovator at the edge of the enterprise with solutions and partners that enable businesses to gain a performance edge, has announced the results of its 2nd annual “Intelligent Enterprise Index” and, introduced ZebraSavanna™ – the Data Intelligence Platform, in India, at a Media Roundtable conference on November 21 at Hotel Le Méridian in New Delhi. The Index is a survey that measures where companies are on the journey to becoming an “intelligent enterprise” - the one that connects the physical and digital worlds to drive innovation through real-time guidance, datapowered environments and collaborative mobile workflows.

Overall, the Index reveals year-over-year growth of Internet of Things (IoT) deployment and investment, highlighting new momentum as enterprises expect less resistance to adoption and increasingly acknowledge IoT solutions as a core component for driving future growth across their organisations.

KEY APAC INDEX FINDINGS (including India) IoT investment is up, and resistance to adoption is down.

The Index reveals that the average annual spend on IoT is up by 4 per cent year-over-year globally, while it was a 12 per cent increase in Asia-Pacific, to US$4.8 million.

Enterprises are driving a performance edge with real-time

guidance - 52 percent of respondents globally say information from their IoT solutions is shared with employees in real or nearreal time. Asia-Pacific companies are more advanced in this area, with 58 per cent of companies sharing data with employees.

Empowering the front-line - Notably, organisations are empowering their front-line with actionable data as 32 per cent of the respondents say they provide insights to the frontline workers. In Asia-Pacific, this stands at 41 per cent, up 7 percentage points from last year’s index.

Security is a top priority across the enterprise - Companies are taking a more proactive, thorough approach when it comes to employing security standards within their IoT solutions. The Index revealed an 18 percentage point increase in the number of companies that are constantly – versus routinely –monitoring their IoT security to ensure privacy and integrity. In Asia-Pacific, the increase was 20 percentage points from a year ago.

Companies are demonstrating a greater reliance on a solution ecosystem - 40 per cent of the companies surveyed globally report using a strategic partner to manage their entire IoT solution, up from 21 per cent from 2017. This is higher in Asia-Pacific at 54 per cent.

Group Concorde felicitated at 4th PHD Air Cargo Summit’18 At the 4th PHD Air Cargo Summit, organised by PHD Chambers of Commerce in New Delhi on 20th November 2018, Group Concorde was felicitated by Hon’ble Union Minister of Civil Aviation –Suresh Prabhu & Hon’ble Minister of State for Civil Aviation- Jayant Sinha with the “Leading Airline Representative (Cargo)” award.

The one day summit witnessed eminent industry experts and decision makers like Rajiv Nayan Choubey, IAS, Secretary, Ministry of Civil Aviation; S. Machendranathan, Chairperson- Airports Economic Regulatory Authority of India (AERA); Vandana Aggarwal, Sr. Economic Advisor, Ministry of Civil Aviation (MOCA), and Sunil Kumar Sawhney, Chief Commissioner- Customs, New Delhi, amongst other luminaries.

Group Concorde was represented by Prithviraj Singh Chugh, Director- Group Concorde, who shared his thoughts on new growth initiatives to enable continued growth of Air Cargo.

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Over 1200 one-to-one meetings held at TIACA’s ACF- 2018 TIACA’s ACF platform welcomed over 90 speakers who took part in 20 panel discussions exploring important air freight issues, from Blockchain and unmanned freight aerial vehicles, to air cargo’s value proposition, training the next generation of air cargo leaders, and TIACA’s new Cargo Service Quality tool.

The solid interests of the participants were demonstrated by the full conference rooms and sometimes even an overflow of people standing by the walls. The explanation is in the quality of the presenters and a vivid format which allows for interaction between the panelists and the audience.

ACF devoted time to the examination of the new subject which appeared as the result of the TIACA Board’s initiative “air cargo value proposition”. It was developed to offer the members even greater value in terms of information, networking and assistance in the introduction of new technologies.

The ACF platform was used by many for bilateral meetings: more than 1200 within the CargoLinX which included participants and the exhibitors. The Global Air Cargo Advisory Group (GACAG) used the opportunity of all members being in one place to set up priorities for the next year. Two MoUs with the Latin American associations have been signed and talks already started on the creation of a Latin American Pavilion in 2020 in Miami.

With regard to the next ACF in Miamai, a major announcement was made about the new partnership between TIACA and Messe München which was corroborated by signing of an MoU right on the TIACA stand. The arrangement will combine the strengths of TIACA in organising the conferences and networking with the unsurpassed experience of Messe München in setting up trade shows.

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Celebi launches charter handling product in Delhi With an aim to make Delhi a charter hub, Celebi has launched its charterhandling product in the capital. The idea behind the launch is to attract more charter into the city and offer a comprehensive air cargo charter handling facility.

Delhi has been identified as the first pilot station to be developed as a transhipment cargo hub by MoCA under National Civil Aviation Policy 2016. “Our project will allow charter customers to manage multiple operations through a single point of contact. For this, Celebi Charter Helpdesk is being created, which will operate 24X7 and meet the requirement of the Charter Operators,” said Ramesh Mamidala, CEO, Celebi Delhi Cargo Terminal Management India, while addressing those present at the launch.

Mamidala added, “we are working on ‘CargoCEL Charter’ App whereby , bookings of Charters will be possible where Celebi customers can easily browse Charter availability.

This will facilitate smart organisation of bookings, save cost, provide realtime visibility. ‘CargoCEL Charter’ will enable Celebi Customer to be in full control of information from the start and help them to choose the right services and special handling for their consignments.”

The customers present at the Launch, appreciated the efforts of Celebi and congratulated them for starting this product. They were confident that this product will help the Charter community with ‘Ease of Doing Business’.

PROFILE EXTREME LOADS CALL FOR HEAVY-DUTY DOCK EQUIPMENT Heavy industrial facilities that handle large, weighty products such as pulp/paper, automotive or steel, have unique needs. It’s not about the footprint of the space, but the size and weight your equipment can handle within high-volume traffic flows.

For these extraordinarily heavy loads, you need heavy-duty industrial dock equipment that can stand up to extreme loads while also providing operational efficiency and safety.

Smooth vehicle docking Are the vehicle arrivals to your loading bay evenly spread out over the day? Probably not! Most people we meet in this business experience peak hours, where a number of vehicles show up at the same time to unload and load goods. To prevent traffic jams in the loading bay there are a number of automated solutions, such as vehicle restraints and innovative lighting guides.

Loading and unloading With radius lip, telescopic and edge-of-dock models in our equipment portfolio, Gandhi Automations has a solution for any type of loading- unloading solution need.

Gandhi Automations Dock House Levelers are designed to be installed outdoors and are indispensable in cases where it is necessary to maximise the use of storage space. Dock House

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Levelers are intended to facilitate loading and unloading operations in areas where perpendicular parking of the trucks to the building is not provided.

One of the main advantages is that these can be installed and upgraded without changing the design of the main building. Their design allows using all types of dock levelers, with hinged or telescopic.

Installation is performed using surface method and is made fast due to the pre-assembled components.

Main advantages: • maximum use of warehouse space • the ability to upgrade without rebuilding the main building • quick installation For Further Details visit: http://geapl.co.in/dock-equipment.html

PEOPLECONNECT Naresh Kundlas

Managing Director, Wallenius Wilhelmsen Logistics

I am originally from a marine background wherelogistics is always considered as a part of the professional career. However, major transformations happened after I switched over to ashore and entered the different forms of logistics where it was to cover the entire planning, execution and every-minute changes in plans. I must say, it was more challenging as ever. I like to solve challenges and theestablishment in the industry drove me to deep dive and survive.

My journey has been truly adventurous and challenging, it has brought personal as well as professional growth at a great pace along with time.

How has the industry changed from the time you stepped in? What major transformations have you observed in the industry in terms of technology, manpower, practices, government regulations etc?

The industry has been changing rap-

idly with the continuous development in technology by every passing day. Growth in technology has taken over the manpower resources in a positive way, where the same has resulted in leaner and meaner processes.

It has also brought reduction in overall logistics costs over a period of time.

The Auto Industry has matured over the last decade and it has initiated a rate war among the companies. Service deliveries are also getting affected by this rate war. Many overseas auto manufacturers have also set shops in India on the back of comparatively lesser costs of manufacturing and conducive government policies where the Government is encouraging an open market for investments for foreign firms.

What is the biggest challenge you have faced in your career?

I reckon, “When you have not faced a challenge,” will be a better question and then, my answer will be – My job is re-

plete with challenges and I get a feeling of relaxation only when I reach home and spend quality time with my family.

What is your success mantra? And, whom do you consider as your guru in the business?

My success mantra is “Work hard and have lots of fun.” I will not like to mention the name of my guru but he is from the marine industry and his presence can be very well felt in my words above.

Apart from work, what are your other interests and hobbies?

Apart from work, I love to spend quality time with my family and like to meet my close friends. I passionately follow Formula 1 racing and enjoy relaxing on couch while watching TV. Which management lesson will you like to give to the young generation of the industry?

Logistics is challenging yet exciting and if you dedicate yourself to the industry, it will pay you back by making successful in the professional career. CC

“Logistics is challenging yet exciting” 90 CargoConnect - December 2018

Interviewed by Gaurav Dubey

What motivated you to be a part of the logistics industry? How has your journey been so far?