Cargo Connect February 2020

PAGES 108 inclusive of cover

VOL XI ISSUE III february 2020 | `20

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A Dose of technology & LMD in Pharma Supply Chain optimisation

38

Does Air Cargo stand uplifted in 2020?

48

Roadmap to Sustainable Logistics is inevitable

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Report: PharmaConnect 2020

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Glimpses: CargoConnect Awards 2020

India-Africa-UAE:

Expanding on trade initiatives

contents

Volume XI Issue III

february 2020

Publisher & Editor-in-Chief Smiti Suri Principal Correspondent Ritika Arora Bhola Special Correspondent / Sub-editor Upamanyu Borah Correspondent Saurabh Sharma Reporter Pallavi Jain

22 COVER STORY

India-Africa-UAE: Expanding on trade initiatives

focus A Dose of technology & LMD in Pharma Supply Chain optimisation.......................... 12 special feature Does Air Cargo stand uplifted in 2020?...... 38 feature Roadmap to Sustainable Logistics is inevitable.................................................... 48

interviews

Mustafa bin Mohamed Al Hinai, CEO, Oman Aviation Group........................................ 62 S Krishnakumar, Chief Executive - Building Solutions, Everest Industries.............................. 64

Marketing Manager Rahul Arora Marketing Executive Akash Gupta Rahul Jain Uday Arora Accounts & Administration Lavish Thakur Designer & Visualiser Ashok Saxena

shipper speaks

Sameer Gupta, Chief Manager- Supply Chain,

JK Tyre & Industries......................................... 66 Aniruddha Banerjee, Vice President- Supply Chain, Spencer’s Retail..................................... 68

Regulars Frontline............................ 6 Hub........................................ 8 Trending............................ 10 Infrastructure.............. 56 Technology....................... 58 News............................. 70-75 report.......................... 76-87 spotlight.................... 88-97 Events........................ 98-100 appointments................ 102 Upcoming events........... 104 Peopleconnect.............. 106

30,332

Director Ajeet Kumar

All materials printed in this publication is the sole property of CargoConnect. The printed matter contained in the magazine is based on research and analysis and information provided by the spokespersons featured.

The views, ideas, comments and opinions expressed are solely of those featured and the Editor and Publisher do not necessarily reflect the same.

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We will review 500 road projects worth `3 lakh crore to iron out issues and explore ways to fast track pending projects. Ministry of road transport and highways constructed over 10,855 km of highways in 2018-19, at a construction rate of 30 km per day.

Nitin Gadkari, Road Transport & Highways Minister

A first-of-its-kinds socio-economic association between ASSOCHAM and Shadowfax is expected to create an additional resource pool of 1.6 lakh trained delivery personnel in the course of next two years across India including metros, tier II, tier III cities and even rural areas.  South Eastern Railway has earned

`10592.87 crore from freight sector during April-December of current fiscal, which is `1338 crores more than the same period of last year,

registering a growth of 14.46 per cent in comparison to the previous year.

Global logistics robots market is expected to reach $20.268 billion by 2026 in terms of annual revenue, representing a 2019-2026 CAGR of 25.5 per cent.  Agricultural and Processed Food Exports Development Authority (APEDA) is in the process of setting up Agri-export hubs in 5 districts of Uttar Pradesh.

The expansion of our Electric Vehicle fleet to 10,000 vehicles by 2025 is an integral milestone in our journey to become an energy efficient leader in the industry. We will continue to invest in the electrification of our delivery fleet, thereby reducing our dependence on non-renewable resources.

Akhil Saxena, Vice President, Customer FulfillmentAPAC & Emerging Markets, Amazon India

It is testimony to the diligence and dedication of IMO, its Member States, the shipping industry, the fuel supply industry and other relevant industries that such a major rule change is being implemented successfully without significant disruption to maritime transport and those that depend on it.

Kitack Lim, IMO Secretary-General assessing the progress on sulphur limit implementation

Delhi has emerged as a cargo hub for businesses in North India and neighbouring countries. We are delighted to be chosen as the exclusive cargo transshipment centre in India by Beijing. This new movement of international transhipment cargo connecting China to Ukraine via Delhi Airport will give a significant impetus to the air cargo and regional logistics sectors.

Videh Kumar Jaipuriar, CEO, DIAL

DHL will soon make a big investment to expand its Indian warehousing and supply chain capacity to tap into the booming E-commerce business. We have to do capacity planning to make sure that we utilise those fulfilment spaces as efficiently as possible because for E-commerce back-up operations we need to be 100 per cent accurate and also need to be relatively low-cost.

Ken Allen, CEO, DHL E-Commerce

6 | CargoConnect february 2020

Now reaching Italy and Romania‌ with a personal touch

Mr Satish Chinnadurai - M: #9967003011 email: satish.chinnadurai@dbgroup.net

hub

China chooses Delhi Airport as exclusive transshipment centre in India

D

elhi International Airport Limited (DIAL) became the exclusive cargo transshipment centre for China in India and the Chinese cargo to the central Asian countries will be now sent through Delhi Airport’s newly launched Transshipment Excellence Centre (TEC).

An Air Asia X (D7) freighter from Beijing with garment and accessories landed in

Delhi for onward delivery to Ukraine in the last week of 2019. This was the first time an international-to-international Chinese cargo routed via Delhi Airport. With this, a new gateway has been shaped for the transportation of international transshipment cargo connecting China to Ukraine through Delhi Airport.

Saudi Logistics Hub to strengthen trade relations between Saudi Arabia and India

T

he Saudi Logistics Hub, a government initiative mandated to support the growth of Saudi Arabia’s logistics sector will focus on Saudi Arabia’s efforts to transform the country’s logistics sector and promoted opportunities for cooperation with India.

Saudi Arabia and India have stepped up trade and investment cooperation in recent

years. In 2018, India was Saudi Arabia’s third largest export market and fifth largest import market, valued at US$ 5.5 billion and US$ 28.4 billion respectively.

His Excellency Eng. Saleh bin Nasser Al-Jasser, Saudi Minister of Transport

and Chairman of the Saudi Logistics Hub, said: “Saudi Arabia and India share a commitment to expanding and liberalising bilateral trade relations and our inclusion of India is a testimony to these strengthening synergies. We aim to

contribute to shaping a conducive business landscape in our country and look forward to leveraging our existing ties with our foreign partners to encourage the growth and development of the logistics sector.”

In 2018, India was Saudi Arabia’s third largest export market and fifth largest import market, valued at US$ 5.5 billion and US$ 28.4 billion respectively.

Riyadh's KKIA airport to handle 600k tonnes of cargo annually after terminal construction

K

ing Khalid International Airport (KKIA) in Riyadh, Saudi Arabia will be capable of handling up to 600,000 tonnes of cargo annually, once completed. SATS Saudi Arabia Company has won a 25-year cargo terminal concession for the airport.

Construction of the SATS Cargo Terminal in KKIA will take place over two phases with the first phase expected to be completed in mid-2022.

There will also be a purpose-built cold chain facility for the special handling of temperature-sensitive perishables and a dedicated lane 8 | CargoConnect february 2020

for pharmaceutical products.

Alex Hungate, President and CEO of SATS said, “KKIA serves Riyadh, the capital city of Saudi Arabia, and handles close to 40 per cent of air cargo volume in the Kingdom. Connected to our stations in Dammam and Oman, and our extensive Asian network, KKIA will extend SATS’ network of quality cargo corridors to offer our customers greater connectivity and quality assurance, while supporting Saudi Arabia’s rapidly growing cargo market and logistics infrastructure.

trending

Green Energy Logistics

W

ith continued growth in global trade and e-commerce fueling parcel delivery volumes, there is a growing need for environmentally and neighborhood friendly solutions to last-mile delivery in cities and logistics operations. This development coupled with an increasing shift towards renewable or ‘green’ energy sources (solar, wind, etc.) is propelling the development of electric mobility and facility solutions for logistics, helping the industry go green.

Key Developments & Implications

The growing shift towards sustainability is driven largely by consumer demand and by regulations requiring companies to reduce carbon emissions and production waste. Governments are also setting ambitious targets. For example, in 2017, India launched the EV@30 campaign to set a collective aspirational goal for all Electric Vehicles Initiative (EVI) members to have EVs contribute to 30 per cent of all vehicle sales by 2030.

Translating this awareness into logistics, renewable technologies will be leveraged for further ’electrifca-

hybrid and full-electric trucks over the next 5 to 10 years. In future, e-roads equipped with overhead lines that transmit electrical energy to trucks are an option for electrifcation in the realm of road freight.

Electrifed last-mile vehicles are a promising solution to reduce local emissions in cities – with no limits on creativity for the electrifed fleet: from handcarts and trikes to mediumsize and large delivery vans (e.g. SmartE, DOT). The ecofactor is highest when fleets generate their own power, or their overnight recharging comes solely from renewable resources. Due to

The Centre’s decision to announce the FAME 2 scheme, with an outlay of `10,000 crore, also indicates a shift towards EVs. The EV industry witnessed a growth of 124 per cent selling 56,000 units in FY18 as against 25,000 units in FY17.

In 2013, the Government of India launched a National Electric Mobility Mission Plan 2020. Under the mission, in March 2015, the Scheme for Faster Adoption and Manufacturing of (Hybrid&) Electric Vehicles in India (FAME India) was launched for two years under Phase-I, which was subsequently extended up to March 31, 2019.

10 | CargoConnect february 2020

tion’ and energy autonomy in the supply chain. Widespread adoption will also soon pave the way for new smart energy logistics services.

Green highways are becoming reality as large trucks use eco-friendly fuels to reduce emission and noise levels. With increased battery reach and faster battery charging, e-trucks are an attractive option. Established automotive manufacturers (e.g., Volvo, Navistar) as well as new market players (e.g., Tesla, Thor) are developing

city center toll charges and vehicle bans, eco-friendly means of transportation are becoming increasingly popular. In some European countries, cargo bikes already handle up to 60 per cent of inner-city delivery routes (e.g. DHL Cubicycle).

Eco-sustainable facilities result from improving the ecological footprint through new measures and adjustments, such as switching to hydroelectric sources or state-of-the-art solar panels with high-frequency battery chargers.

Green warehouses also use intelligent electrical systems with smart motion sensors to illuminate only areas in use, as well as charging forklifts in off-peak hours.

A DOSE OF TECHNOLOGY & LMD IN PHARMA SUPPLY CHAIN OPTIMISATION India's pharmaceutical industry is nowhere behind when it comes to logistics developments like distribution network optimisation and Sales & Operations Planning (S&OP). However, change is inevitable, since various developments currently underway in the pharma sector are making the logistics situation increasingly complex; technology has emerged as a key factor to develop more astute operating models for pharma logistics. It has become a prime differentiator to gain a competitive advantage as the sector undergoes a transformation, driven by increasing regulatory scrutiny, time-constrained, product specific demands and user experience.

‘E

Ritika Arora Bhola

very Life Counts’ – with this vision and adage, India’s pharma supply chain industry has been able to save millions of lives every year, and is continuing to do so. Undoubtedly, the Indian pharma industry has witnessed marvelous growth in the last decade– from contributing immensely to India’s economic growth, becoming world’s second largest exporter of vaccines, providing employment to over 2.7 mn people in highly skilled areas like R&D, manufacturing and logistics, the pharma sector has come a long way.

12 | CargoConnect february 2020

It’s not just the trade or supply of vaccines, drugs, bio-pharma products or equipment, but good handling and distribution practices which can save a life, therefore, everyone involved in the ‘supply chain’ process– manufacturers, shippers, LSPs, means of transport, transportation methods, and retailers hold an important position in the entire value chain.

According to reports, pharma is poised to be India’s largest export vertical in the coming years. Industry estimates suggest that India’s pharma exports could reach $20 bn by 2020.

Experts believe that a logistics revolution could be on the horizon for India; however, supply chain efficiency

in pharma products is going to be imperative to support this growth and reduce bottlenecks. And Good Distribution Practices (GDPs) will be critical to growth as the country looks to close the significant gaps between the strategic vision and operational realities of the sector.

The Indian pharma supply chain sector is also expected to outperform the global pharma logistics industry which is set to grow at a rate of five per cent annually, informs experts. In fact, India has also maintained its lead over China in pharmaceutical exports.

Pharma Logistics: Paving way for growth

Ravi Kumar Tummalapalli, Head- Logistics – APAC, Japan, China, TEVA Pharmaceuticals India is hopeful and accepts the fact that things have been improving for good. “There is a major focus and awareness among all the logistics partners on pharma logistics requirements. We see many companies taking up pharma logistics as a specialty product and designing solutions to meet the low volume, high value, high sensitivity products unlike in the past treating pharma as general cargo,” says Tummalapalli.

Elaborating the same, Tummalapalli says, “The Central Drugs Standard Control Organisation (CDSCO) has recently released a document on GDP which is again a big step forward in bringing extensive focus on the pharma supply chain. There has also been a major shift from sea to air mode, in view of optimisation and reduced volumes to the western market.

This calls in for a drastic change in the infrastructure requirements at the airports to handle the volume in a controlled environment. Many airports are taking this initiative to collaborate with private entities who know the pharma business to provide such facilities. One such collaboration is between the Cargo Service Center (CSC) and Mumbai International Airport Limited (MIAL). In the end, the whole industry is getting benefitted.”

Dasaradha Reddy Duvvuru, General Manager- Warehouse, Aurobindo Pharmaceuticals India believes that efficient logistics is definitely helping the Indian pharma supply chain and its

service level to improve year-on-year in terms of speed and safety/security of products. Duvvuru says, “Government’s new logistics policy is also a big boost for the logistics industry. Implementation of GST, removal of check posts and latest compulsory FASTAG for vehicles defiantly is an added ad-

vantage, when we talk about road transport of any time-critical goods.”

On similar lines, Pravin Rajput, General Manager- Supply Chain Management, Metropolis Healthcare India states, “It is a good year for Pharma and Healthcare industry as they are witnessing constant growth. In 2020, my percep-

Pharma is poised to be India’s largest export vertical in the coming years. Industry estimates suggest that India’s pharma exports could reach $20 bn by 2020.

CargoConnect february 2020 | 13

focus tion/goal is to understand technology in supply chain and implement them in current practices. Today, the only chance to grow in supply chain and handling automation project in supply chain management is through technology.”

However, on the contrary, T V Madhusudan, General Manager- Distribution, RPG Life Sciences India feels the year 2020 is going to be a gloomy year for the pharma industry.

“Supply chain growth is always directly proportional to the growth of top line of business. 2019 has not been so good. Flat growth because of the slowing down of economy is one reason,” says Madhusudan.

Existing hurdles

While Indian pharma supply chain industry’s growth trajectory looks promising on the surface, it is quite evident that there is a significant gap between the strategic vision and operational realities of the pharma sector.

According to the experts, Indian pharmaceutical companies are facing hurdles on multiple fronts in their supply chains. The sector is currently struggling with unique set of challenges that are ultimately creating pressures on the pharma end-users to transform

their supply chains.

As per reports, pharma sector is said to have a complex supply chain that is under-utilised, inefficient and ill-equipped to cope with the sort of products which comes down the pipeline. And in order to meet the demands of a fast evolving marketplace and the shift from patient to outcome, the pharma supply chain will need to undergo a radical overhaul.

According to Rajput, “Pharma and healthcare supply chains are complex because planning of demand forecast is always changed due to market challenges, policy amendments and increasing number of patients each year, which is more than expected. Key challenges are shortage, sanitation, product damages and HR dependency.”

Agreeing with Rajput, Lalit Patil, Manager- Warehouse Management, Roche Products India remarks, “In order to improve supply chain efficiency, we need support from government bodies, private associations and pharma manufacturers. Supply chain rationalisation is required in India to reduce operational complexities like number of distributors, lack of quality systems, and safety systems which are not available at distributor and warehousing level.”

Patil mentions two internal and external key hurdles restricting Indian pharma sector to grow:  Internal: Cost pressure, understanding, commitments, technology, volume

The Central Drugs Standard Control Organisation (CDSCO) has recently released a document on Good Distribution Practices (GDP) which is again a big step forward in bringing extensive focus on the pharma supply chain. There has also been a major shift from sea to air mode, in view of optimisation and reduced volumes to the western market.

Ravi Kumar Tummalapalli

Head- Logistics – APAC, Japan, China, TEVA Pharmaceuticals india

growth, policy changes, etc.  External: Infrastructure, right talent, compliances, budgeted technology, changes in governance, pressure from local associations.

Madusudan underlines,“Lack of infrastructure, skilled labour, government policies and rules, taxation (GST credit process is still in chaos) and endto-end visibility are other major challenges.” Although, he feels, technology can play an important role to speed up under-utilised processes and assets to improve efficiency in the supply chain.

Meanwhile, Tummalapalli informs, “Every industry has its own challenges.

Phar ma supply c hai n is blessed in a way that it is process-oriented, focussed and niche. People in this industry need to know their business well and cannot be generalists. Since the objective is to get the right medicine in the right condition to the patient, it’s important that the solution is designed

The sector is currently struggling with unique set of challenges that are ultimately creating pressures on the pharma end-users to transform their supply chains.

14 | CargoConnect february 2020

well considering constrains on the ground. Risk assessment of the accessibility, temperature conditions, communication and backup systems, etc., during the design phase will help deliver and also enable resolution in case of any untoward incident. Further, support and collaboration with the LSPs is much needed to establish a successful supply chain.”

On the other hand, Duvvuru envisages that the pharma supply chain is complex due to its quality to protect throughout its life cycle and deliver to end customer, i.e. patient at right time at affordable price. Patients expect products to be delivered at their doorstep, and accordingly logistics players need to widen their network and strengthen their capabilities.

chains, segmenting consumer needs, product types, product attributes, and markets  Ensuring on-time safe delivery of pharma products as every life is crucial.

In the case of pharma industry, associations like Indian Drug Manufacturers’ Association (IDMA), Organisation of Pharmaceutical Producers of India (OPPI) and Indian Pharmaceutical Association (IPA) are doing a commendable job and are in constant consultation with the Ministry of Chemicals and Drugs Controller General of India (DCGI) to take up issues and apply suggestions pertaining to logistics and supply chain activities of pharma products from time-to-time.

Reducing complexities in the pharma supply chain

Ministry of Chemicals and Drugs Controller General of India (DCGI) is taking up issues and applyings suggestions pertaining to logistics and supply chain activities of pharma products.

No doubt, India’s pharma supply chain sector is crippled with end-to-end complexity and reducing this complexity can unleash an array of benefits for the industry as a whole. Efforts should be focussed on the following priorities for bringing out results:  Consolidating and optimising the network as a whole, supporting seamless communications across suppliers, manufacturers, distributors, and customers  Tailoring visibility of supply 16 | CargoConnect february 2020

Efficient logistics is definitely helping the Indian pharma supply chain and its service level to improve year-onyear in terms of speed and safety/ security of products. Implementation of GST, removal of check posts and latest compulsory FASTAG for vehicles defiantly is an added advantage, when we talk about surface transport of any time-critical goods.

Dasaradha Reddy Duvvuru

General ManagerWarehouse, Aurobindo Pharmaceuticals india

Most importantly, Rajput says, every pharma and healthcare company needs to design a supply chain that is more adaptive, flexible and responsive to the changes. This can be done by focussing their efforts on:  Using technology in end-to-end supply chain tracking  Creating agility and visibility  Reducing complexity  Building robust quality and compliance system Patil put it as, “Firstly, simplified systems and processes should be there to encourage industry people for changes in the supply chain. Secondly, rationalisation needs to be there in distribution activities and direct accounts as per geographical/volume consumption of products. Thirdly, there should be awareness amongst the players of any organisation to support these kind of initiatives to reduce complexities.

Besides, there is need for validation, due diligence process, and implementation of all existing distribution activi-

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focus ties with focus on quality compliances, safety, financial ability and capability to be sustainable for next five years.”

Duvvuru highlights, “Logistics players should be transparent towards their customers, engage qualified and trained ground level staff and quickly adopt latest technologies. 3PL and reverse logistics are scope for improvement in India.”

Significance of last-mile delivery in pharma supply chain

There has always been stress on efficient supply chain operations and improving last-mile delivery operations.

On-time delivery of pharma product is very crucial, and the products should reach the right customer at the right time in the right manner. Pharma leaders believe, the need of the hour is to enable pharma logistics companies transport time-sensitive goods faster with last-mile delivery augmenting the process. They also elaborate on efficient pharma transport (reefer trucks/vehicles) and availability of skilled labour to carry out supply chain operations – from loading, transporting and unloading pharma products safely.

Pharma and healthcare supply chain is complex because planning of demand forecast is always changed due to market challenges, policy amendments and increasing number of patients each year, which is more than expected. Key challenges are shortage, sanitation, product damages and HR dependency.

Pravin Rajput

General ManagerSupply Chain Management, Metropolis Healthcare india

On a positive note, Tummalapalli says, “With more and more efficiency coming in, all companies are focussing on reducing inventory, making the supply chain leaner with faster deliveries.

This is becoming possible only with the improvements in infrastructure, availability of new startup delivery companies who are bringing in new concepts to improve delivery lead time. Many delivery companies have setup infrastructure to meet the requirements of E-commerce companies, and they see the need for pharmaceutical products to be delivered in a secured manner as an added channel for them to participate.

They are making a great contribution to the industry but, specifically for pharma product handling, they need to train their staff appropriately and make them realise that they are also part of saving some lives.”

Rajput says, pharma companies and LSPs alike must follow the following SOPs while handling pharma products in each stage:  Drugs must be stored to prevent contamination, and be positioned to allow for inspection and cleaning of the area

indian pharma market will grow to US$ 50 billion by 2020

18 | CargoConnect february 2020

 Each lot of products must be identified with a distinctive (and traceable) code, and the lot’s status must be identified (approved, quarantined, and rejected)  Written procedures must describe the distribution process for each drug, which include procedures for recalls  Pharma and healthcare material must be kept and transported in defined temperature mentioned on packet/instructions However, with a different viewpoint, Patil comments, “Definitely, lastmile delivery time has reduced by almost 80 per cent for sensitive shipments as compared to the last decade. Still, the industry faces the burden of cost and safety. We have noticed many cases of damages/breakages. No proper tracking and tracing system or feedback mechanism is available in the pharma logistics industry. Many innovations like bar-coding of each shipment, and training all teams on pharma commodities, are missing. However, today, we notice the increase in number of skilled labour incorporation by the transportation industry, but safety features, or maintaining hygiene in the vehicles, trained drivers, incident records, ontime documentation, etc. still lack.”

Technology is progressing rapidly.

Re-skilling is essential for the supply chain professionals to remain competitive as also to face the competition.

Using Technology in Pharma Supply Chain to achieve LMD

Lack of infrastructure, skilled labour, government policies and rules, taxation (GST credit process is still in chaos) and end-to-end visibility are other major challenges. Technology can play an important role to speed up under-utilised processes and assets to improve efficiency in the supply chain.

Technology is the deciding factor for the success of business because it is progressing rapidly.

T V Madhusudan

General ManagerDistribution, RPG Life Sciences india

Technology remains one of the most important component for pharmaceutical companies to focus on. The immediate results of using technology is greater transparency and efficiency, which further lead to better decision making.

Technology can be used to integrate all functions across the network, increase visibility of products across the value chain, and automate processes to improve the supply chain’s responsiveness and reliability.

Logistics experts believe that the industry is actually benefitting from the digital revolution happening within the industry.

Rajput assures that supply chain professionals and manufacturers can now digitally plan and track their entire production process as it minimises risks, increases efficiency and eventually drives revenues.

CargoConnect february 2020 | 19

focus Madhusudan deeply agrees that technology is the deciding factor for the success of business because it is progressing rapidly. “Re-skilling is essential for the supply chain professionals to remain competitive as well as face the competition,” says Madhusudan.

Track and trace, real-time monitoring of temperature control, integrity of product quality through secure identification are some of the advanced features coming into common use with the digital revolution. Availability of data is also becoming more and more demanding for everyone to take appropriate decisions.

Global Outlook

The market share of biologics, or biopharmaceuticals, is growing rapidly over the globe and is expected to account for up to 28 per cent of the global pharmaceutical market by 2020. While traditional drugs are generally stable and have a long shelf life, biologics – such as blood products, vaccines, and therapeutic compounds to treat various conditions – are more sensitive to varying temperatures and other types of exposure. Logistics providers wanting to capture a share of the growing market have already begun increasing their cold chain capacity.

Historically, the pharmaceutical industry was never a big consumer of cold chain logistics. This was because a

majority of drugs did not need to be stored or transported in ambient temperatures. But ever since large molecule biologics and personalised medicines have been introduced, the pharmaceutical supply chain is constantly demanding newer technologies and better products for transportation as these require both temperature and time-controlled distribution.

Rajput elaborates, “The growth is estimated to be more than 3.5 per cent as per last five year’s financial trends, however the global pharmaceutical logistics market involves a very complex operational and supply chain process. This is essential as pharmaceuticals are an integral part of the healthcare industry. A pharmaceutical logistics chain is not like other regular logistics chains in terms of type of products, complexity and cost.

Availability and accessibility of pharmaceuticals are of importance for both companies as well as governments. This also depends on the policies of the government related to healthcare and the entire pharmaceutical industry.”

Focussing on the same, Patil says, “Global pharmaceutical product volumes are growing due to new product launches. Today, every pharma company seeks for transformation by using technology as it impacts speed of work.

The global pharmaceutical logistics market size is projected to be worth US$134.5 bn by 2025 as per Bloomberg,

The market share of biologics, or biopharmaceuticals, is growing rapidly over the globe and is expected to account for up to 28 per cent of the global pharmaceutical market by 2020. Logistics providers wanting to capture a share of the growing market have already begun increasing their cold chain capacity.

20 | CargoConnect february 2020

Firstly, simplified systems and processes should be there to encourage industry people for changes in the supply chain. Secondly, rationalisation needs to be there in distribution activities and direct accounts as per geographical/volume consumption of products. Thirdly, there should be awareness amongst the players of any organisation to support these kind of initiatives to reduce complexities.

Lalit Patil

Manager- Warehouse Management, Roche Products India

while global pharmaceutical industry g rowt h is projec ted to be wor t h US$1448.5 bn by 2025 as per Market Research. The global pharmaceutical industry is growing by 5.8 per cent due to new product launches. Until 2018, R&D investment by pharma companies crossed US$1790 bn. The focus of pharma companies from a business vs patient psychology shifted just five years back. Previously, the entire pharma industry was concentrating on growth, business, sales targets, etc. Now, the focus is to serve more patients and this is really helping everyone to grow.”

Reddy concludes, “Global logistics market is expected to register a CAGR of 4.3 to 4.5 per cent in 2019-2025. Leading logistics players are spreading their wings across the globe by mergers and acquisitions. Presently, it is in a consolidating phase, and once it stabilises, their sales value will increase and that will help them be in a commendable position in terms of price because the competition is between limited global players.”

coverstory

India-Africa-UAE: Expanding on trade initiatives Pharmaceuticals and Perishables remain key growth sectors for the Asia-Africa and Asia-UAE trade as the demand for life saving drugs and fresh produce in Asia, especially from India and Vietnam, continue to pour volumes into Africa and UAE, while inbound e-commerce rides on its unabated growth.

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Upamanyu Borah

fficient logistics network is the reason high-value pharma shipments which are highly time-critical reach the needs of patients worldwide, and, consumers in countries like the US and Africa enjoys the same produce year-round, even when it is out of season because it will likely be in season somewhere else in the world.

Pharma shipments are of significant importance to the entire cargo industry – both from a strategic point of view and as a source of revenue. Besides, the growing middle class is creating an increase in cargo demand for one type of cargo: fresh produce. While the volume of electronics is decreasing, fresh produce is increasing by roughly the same amount. With above, the demand for global pharmaceutical sales and fresh foods are expected to show healthy growth into the future, and also both are expected to be fueled to a significant degree by emerging countries like China, India, Africa, Brazil, Russia and Mexico.

22 | CargoConnect february 2020

CargoConnect february 2020 | 23

India-Africa: Strengthening ties

initiatives, most notably ‘Focus Africa’ launched by the government of India in 2002 to boost trade and investment between Africa and India, and the India Africa Forum Summit launched in 2008. The Asia-Africa Growth Corridor was launched in 2017 as an economic co-operation between the governments of India, Japan, and multiple ndia’s partnership with Africa based on a consultative African countries. model of cooperation, non-prescriptive, participative, Primary commodities and natural resources account and responsive to the needs of the African countries, for around 75 per cent of Africa’s total exports to India. witnessed an increase in bilateral trade of nearly 22 African exports to India are growing at a rate of 32 per cent per cent from the last year. Ranking as the third largest annually, with Indian exports to Africa at a rate of 23 per export destination in Africa, India-Africa trade has touched cent. The top six African exporters to India are Nigeria, $ 62.66 bn for 2017-18. Trade with Africa now accounts for South Africa, Angola, Egypt, Algeria and Morocco and ac­ just over eight per cent of India’s total trade, but this is only count for 89 per cent of total African exports by value to marginally higher than the 7.6 per cent in 2001. India beIndia, mainly due to exports of oil, gas, ores and gold. came the fifth largest investor in Africa with investments India’s exports to Africa are dominated by pharmaceutical products and refined petroleum; over the last five amounting to a staggering US$ 54 bn (as of 2008-2016). years, these two products have accounted for about 40 per India-Africa trade has not only diversified but also cent of total exports into African markets. Currently, Africa multiplied in the last 15 years. The strengthening of Southconstitutes 19 per cent of India's pharma exports.

South complementarities between these two regions suggests that India-Africa trade could touch Food security is also a common concern for India and Africa. India being the US$117 bn by 2021. biggest producer of food grain and hortiThe impressive growth in trade beIndia’s exports to Africa tween Africa and India stems from a mix culture crop has helped the African contiare dominated by nent develop its agriculture sector. Diploof factors, including the growing stock of pharmaceutical products mats from both sides have sought greater foreign direct investment undertaken by and refined petroleum. cooperation in agriculture and agro-proAfrican and Indian corporate entities; Currently, Africa cessing, which would have a great bearand deepening economic and poconstitutes 19 per cent of litical ties illustrated by a ing on the food security situation India's pharma exports. number of strategic in Africa and India.

I

$117bn

5th

value of India-Africa trade targeted by 2021

India's ranking among investor countries in Africa

Year Export (Mn US$)

2013-14 5,074.3

Year Import (Mn US$) Total Trade Trade Balance

2013-14 6,075.3 11,149.6 -1,001.0

24 | CargoConnect february 2020

Export from India 2014-15 2015-16 5,320.0 3,588.1 Import from africa 2014-15 2015-16 6,496.5 5,948.4 11,798.5 9,536.5 -1,194.5 -2,360.4

2016-17 3,546.0

2017-18 3,825.2

2016-17 5,833.8 9,379.7 -2,287.8

2017-18 6,834.7 10,659.9 -3,009.5

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Golden era of UAE-India relations

are discussing cooperation in the establishment of logistics hubs, cold storage, warehousing and more to operationalise the food corridor between the two countries. Currently, India exports up to $2.5 bn of food to the UAE every year, and the joint food corridor may help triple that volume to the value of around $7 bn in the next three years. Relevant elations between India and the UAE are at their business groups from the UAE and Indian states including best ever. The bilateral relationship has matured Punjab, Madhya Pradesh, Maharashtra and Gujarat are in and transformed into a comprehensive strategic discussion to cooperate in operationalising the food corridor as early as possible. partnership as both countries continue to explore The proposed food corridor will help in ensuring food deeper cooperation in new areas. security for the UAE, as it will get the best quality agriculThe UAE-India relations go beyond economic, trade and tural products at cheaper prices. It will create opportunities investment exchange to include other promising sectors for joint research and development in the like the aviation. There are over 950 direct weekly flights between the UAE and agriculture sector. The food corridor will India, a number that shows the strength also help in increasing the earnings of India exports up to $2.5 of people-to-people and economic ties Indian farmers. It will also help generate bn of food to the UAE between the two countries. Flights beapproximately 200,000 jobs in India as per every year, and the joint tween the UAE and India take the lion’s initial estimates while increasing Indian food corridor may help share of air traffic between the Arabian food exports to the UAE to $7 bn per year. triple that volume to the Gulf and India.

The UAE side has already identified value of around $7 bn in The deepening of energy ties was a 20 specific food products that are curthe next three years. rently imported in large quantities. India highlight of 2018. Defence has also is quite competitive in exporting those emerged as a strong area of cooperation products. The idea is to focus initially on these 20 products, between both the countries. India and the UAE also signed such as certain cereals, vegetables, fruits and even poultry, an MoU in 2019 for cooperation in the field of manpower to see if you could produce them in the India-UAE food and both the countries are exploring the possibility of linking their respective e-platforms for the benefit and welfare corridor. The UAE entities are making their own collaboration with Indian partners and have the option to of Indian workers coming to the UAE. India and the either process the foods or to put them into UAE also signed an MoU for cooperation in cold storage and take them back to the Africa in 2018.

UAE when required.

Going forward, India and UAE

R

3rd

$100bn

India's ranking among countries that export goods to the UAE

value of UAE-India trade targeted by 2020

Year Export (Mn US$)

2013-14 30,520.4

Year Import (Mn US$) Total Trade Trade Balance

2013-14 29,019.8 59,540.2 1,500.6

26 | CargoConnect february 2020

Export from India 2014-15 2015-16 33,028.1 30,316.5 Import from UAE 2014-15 2015-16 26,139.9 19,445.7 59,168.0 49,762.2 6888.2 10,870.8

2016-17 31,175.5

2017-18 28,145.6

2016-17 21,509.8 52,685.3 9,665.7

2017-18 21,740.0 49,885.6 6,405.7

Connect – connecting Tirupur, Coimbatore and Ambur to the airport. This has helped in establishing KIAB as a major cargo hub across South India,” adds Raghunath.

The master plan of KIAB has also incorporated additional space for the development and building of an intehe ability for air cargo to move extremely tempgrated air cargo and logistics hub in the future on the East sensitive or perishable goods from one place to Side of the airport to cater to an eventual demand of between 1.2 – 1.5 mn MT of cargo in the long-term. another quickly is a key driver of this cargo growth.

As such, to meet the ever-increasing demands and hanIn some cases, it is cheaper to harvest and ship dling requirements of temperature-sensitive cargo with produce via air to a country than it is to grow the produce modern cold storage infrastructure, Air India SATS Airport in a temperature-controlled greenhouse in the destination Services (AISATS) launched AISATS country. This is leading to an increased focus by air cargo providers COOLPORT at KIAB in October 2016. to tailor offerings to better fit perishSpread across over 11,400 sq mts, the able cargo needs. There is increased specialised cargo centre serves as a DIAL has the capacity to use of temperature-controlled conone-stop-shop and houses a complete handle over 1.8 mn MT of tainers and a greater focus on mainrange of facilities under one roof for cargo annually, which is taining the cold chain at airports. seamless handling and storing of scalable to 2.3 mn MT. In KIAB is the gateway to South Intemperature-sensitive import and exFY19, the airport achieved a dia; it is strategically located close to port cargo. new milestone of handling major industrial and business hubs According to Ramanathan Rajaover 1 mn MT cargo, the mani, CEO, AISATS, “The AISATS and corridors in South India and curhighest volume of cargo rently has 15 cargo freighters flying to COOLPORT uses a combination of handled by any airport in different parts of the world. Bengaluthe latest digital technologies and India in a year. ru International Airport Limited (BIstate-of-the-art infrastructure to enAL’s) aim is to make KIAB a successsure speedy, efficient and damageful passenger and cargo hub with state-of-the-art infrafree movement of cargo. The facility has a handling capacstructure and technological advancements that deliver ity of 40,000 MT per annum. It houses dedicated cold operational efficiency. storage rooms with adjustable temperatures ranging from “We are committed to providing consistent and reliable -25˚C to 25˚C, refrigerated q-lanes with a temperature range world-class air cargo solutions with a focus on the needs of of 2˚C to 8˚C, separate X-ray machines for perishables and our customers. Over the past few years, BIAL has invested pharmaceuticals to avoid any cross-contamination. AISATS substantially in world-class cargo infrastructure with bestalso offers data logger reports on request to track product in-class cargo terminals for faster turnaround and processtemperatures during its handling period. ing,” says Satyaki Raghunath, Chief Strategy & DevelopAISATS COOLPORT, Rajamani says, also provides an ment Officer, BIAL. The current design capacity of KIAB’s in-house custom clearance facility, a Drug Controller Laboratory and a plant quarantine inspection and certification combined cargo terminals is 570,000 metric tonnes (MT), system to enable speedy processing of huge quantities of catering to both international and domestic traffic. There is perishable cargo. It also offers backward integration by scope to further expand capacity, up to 850,000 MT. “To providing reefer trucking services from the point of boost cargo movement, we have strengthened our connectivity to catchment areas in the hinterland of origin to the point of warehouse entry.

Bengaluru, with the introduction of a dedicated Cochin International Airport has a separate road feeder service – under the brand name LOGI centre for handling perishable cargo. The

Air Hub Support

T

Satyaki Raghunath Chief Strategy & Development Officer, BIAL

To boost cargo movement, we have strengthened our connectivity to catchment areas in the hinterland of Bengaluru, with the introduction of a dedicated road feeder service – under the brand name LOGI Connect – connecting Tirupur, Coimbatore and Ambur to the airport. This has helped in establishing KIAB as a major cargo hub across South India.

28 | CargoConnect february 2020

Ramanathan Rajamani CEO, Air India SATS Airport Services

AISATS COOLPORT 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. It also offers backward integration by providing reefer trucking services from the point of origin to the point of warehouse entry.

Videh Kumar Jaipuriar CEO, Delhi International Airport Limited

Delhi has emerged as a cargo hub for businesses in North India and neighbouring countries. This new movement of international transhipment cargo connecting China to Ukraine and Dhaka to Manchester via DIAL will give a significant impetus to the air cargo and regional logistics sectors.

Tushar Jani Group Chairman, Cargo Service Centre

The CSC terminal in Mumbai is declared as The Pharma Excellence Center and will become the hub of pharma activity. Once a month, industry hands will get together with members from the pharma fraternity to discuss their research, new deliveries, new trials, new technology, new machinery, new ways of packaging and training.

Centre for Perishable Cargo can handle 24,000 MT per anDIAL has a world-class dedicated temperature control num. The concept is aimed at maintaining the quality of facility to ensure end-to-end temperature-controlled supply the produce through the intervention of relevant technolochain. The facility can handle around 1.5 lakh MT perishgies. It acts as a vital link for the maintenance of the cold able and pharma cargo annually. DIAL is the first Authorised Economic Operator (AEO) certified airport by Indian chain during the export process of perishable cargo.

Customs, and also the first to receive e-AWB 360 (e-Airways Delhi International Airport Limited (DIAL) has become Bill 360) certification from International Air Transport Asthe exclusive cargo transshipment hub for India’s neighbours sociation (IATA) for achieving 100 per cent e-freight complilike China and Bangladesh with the newly launched Transshipment Excellence Centre (TEC) and ant processes. its two integrated cargo terminals.

GVK-led Mumbai International DIAL has also developed Airport Airport Limited (MIAL) became the In a bid to promote pharma Cargo Logistics Centre (ACLC), as onfirst airport in India and third in Asia business in Hyderabad, GMR airport warehousing facility, to handle to receive the IATA CEIV Pharma Hyderabad International all types of cargo, such as perishable, certification. The airport is now set to Airport (GHIAL) is working pharma, textile, retail, electronics, launch the country’s largest temperatowards developing a fullture-controlled solution for the transproject cargo and livestock. fledged pharmaceutical port of pharmaceuticals on the tarmac Videh Kumar Jaipuriar, CEO, value chain logistics at the region built by Cargo Service Center DIAL asserts, “Delhi has emerged as airport. It is also looking at (CSC). This facility will include a fula cargo hub for businesses in North doubling the airport’s cargo ly temperature-controlled indepenIndia and neighbouring countries. capacity. dent facility with a storage capacity of This new movement of international 300 tonnes of pharma at any given transhipment cargo connecting China to Ukraine and Dhaka to Mantime. It will have the capacity to hanchester via DIAL will give a significant impetus to the air dle a throughput of 14,000 tonnes per month, with six cargo and regional logistics sectors. TEC not only provides freezer chambers of 2 to 8° celsius and one of -5° celsius. new momentum to the efficient movement of transshipment CSC currently runs pharma zones for export consignments air cargo through secure channel, but also contributes sigat Mumbai, Delhi and Ahmedabad. nificantly in promoting DIAL as air cargo hub of the region “The CSC terminal in Mumbai is declared as The Pharma and an air cargo gateway to the world.”

Excellence Center and will become the hub of pharma activity. Once a month, industry hands will get together with With the three operational runways and nine freighter members from the pharma fraternity to discuss their reparking bays, DIAL is India’s largest and busiest airport. search, new deliveries, new trials, new technology, new The airport is going to add three more freighter parking machinery, new ways of packaging and training. CSC has a bays. DIAL has the capacity to handle over 1.8 mn MT of unique opportunity of being a neutral player to bring all cargo annually, which is scalable to 2.3 mn MT. In FY19, the pharma companies on a single table with the aim to enhance airport achieved a new milestone of handling over 1 mn the quality of Indian pharma for the global market,” says MT cargo, the highest volume of cargo handled by any Tushar Jani, Group Chairman, Cargo Service Centre. airport in India in a year.

30 | CargoConnect february 2020

SGK Kishore CEO, GMR Hyderabad International Airport Limited

New initiatives include cool container links for pharma products, general and temperature-controlled warehouses within the cargo village, promotion of road feeder services and 24x7 customs clearance of cargoes. The latter is particularly required for a full-fledged cargo hub as both Delhi and Mumbai airports have one-shift of customs operating hours.

Sanjay Khanna CEO, Ras Al Khaimah International Airport

With increased operational facilities including chillers, freezers and live animal facility, our airport is fully prepared to accept and overcome the challenges during the year 2020. Managing the export acceptance, import delivery, and timely transport of shipments through IPTA and RFS is a complex operational challenge, and we strive constantly to improve our service and operational capabilities.

largest transshipment terminal in Mumbai airport’s (MIAL) partnerAfrica and one of the biggest ten in UAE’s Sharjah International ship with various prominent airports the world with an annual capacity of Airport (SHJ) is a specialised such as Amsterdam, Brussels and about 1.0 mn tonnes is now the base airport for cargo handling.

Miami is also expected to boost Inof operations for Ethiopian Airlines’The airport has both dia’s pharma exports. the fastest growing Airline in Africa. expertise and facilities In a bid to promote pharma busiThe cargo terminal includes facilities such as CEIV certified ness in Hyderabad, GMR Hyderabad such as perishable cargo terminal pharmaceutical handling International Airport (GHIAL) is fitted with different climate chamfacility, extended quarantine bers and cool chain storage; dry working towards developing a fullfor livestock, special cargo terminal warehouse; fully aufledged pharmaceutical value chain equestrian handling, and tomated warehouse with the latest logistics at the airport. It is also lookbonded trucking services. ing at doubling the airport’s cargo technologies including Elevating capacity. In Hyderabad, 60 per cent of Transfer Vehicle (ETV); G+2 office the cargo exports comprise pharma products. The airport building; and apron area which accommodates five additional big (B777) freighter aircraft. already has a 33,000 tonne capacity dedicated temperatureSimilarly, UAE’s Sharjah International Airport (SHJ) is controlled pharma zone, a 20-acre Free Trade Zone with a specialised airport for cargo handling. The airport has warehousing and distribution and the integrated terminal both expertise and facilities such as CEIV certified pharmaoperated by GMR and Menzies Aviation of UK. ceutical handling facility, extended quarantine for livestock, SGK Kishore, CEO, GHIAL says, “In the coming years, special equestrian handling, and bonded trucking services. we are looking at developing a full-fledged pharmaceutical “We have clear-cut goals, precise and comprehensive value chain logistics getting developed at Rajiv Gandhi plan has been designed for the year 2020. As an airport, Hyderabad International (RGI) Airport. Meanwhile, existing we will continue to facilitate all our partners and will capacity is all set to get doubled. ” provide constant support to their business plans,” says According to GMR, the current terminal handling Gohar Ali Shah, Business Development Executive- Com1,50,000 tonnes of cargo annually will be expanded to mercial, SHJ. handle double the capacity. “We have come out with comprehensive master plan to ensure that the facility gets exBesides, Ras Al Khaimah International Airport (RKT) panded. New initiatives include cool container links for is planning to be a base for other freighters operating from pharma products, general and temperature-controlled the UAE. The proximity to major markets in Dubai, faster warehouses within the cargo village, promotion of road turn-around time and the commercial advantages over feeder services and 24x7 customs clearance of cargoes. The other big airports, make RKT an ideal choice for the many latter is particularly required for a full-fledged cargo hub as small freighters operating in the region. Sanjay Khanna, both Delhi and Mumbai airports have one-shift of customs CEO, RKT mentions, “With increased operational facilities operating hours, while airports such as Hong Kong, Dubai including chillers, freezers and live animal facility, our and Shanghai have 24x7 customs clearance,” says Kishore. airport is fully prepared to accept and overcome the challenges during the year 2020. Managing the export accepGMR is also looking at exploring blockchain technology tance, import delivery, and timely transport of shipments ‘to make data available in real-time’ throughout the pharma through IPTA and RFS is a complex operational challenge, cargo chain. and we strive constantly to improve our service and operaMeanwhile, the state-of-the-art cargo terminal located tional capabilities.” at Addis Ababa Bole International Airport which is the 32 | CargoConnect february 2020

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Logistics Networks

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Fitsum Abadi Managing Director, Ethiopian Cargo & Logistics Services

thiopian Airlines has been providing a convenient India is still the major source of export products to Africa, air cargo service on major trade lanes such as Asiaand the volume is expected to grow in the year ahead.

Therefore, Ethiopian Airlines is offering its dedicated Africa, Africa-Europe, Africa-Middle East, Middle freighter flights and belly capacity of its passenger East-Africa and Europe-Asia lanes using its latest aircrafts for accommodating adequate air cargo B777F aircraft and belly-hold capacity. Fitsum Abadi, Manshipments from India. The current annual uplift aging Director for Africa’s largest cargo operator- Ethiois around 23K tonnes. pian Cargo & Logistics Services says, “ET has been fulflling its role and taking the line share in connecting these major lanes, especially Africa with the rest of the world. The increased volume of trade resulting from huge investments company expanded its operations to Ethiopia as well. The in Africa by China and India is causing the cargo traffic company is putting up ground handling facilities in all between the regions in Africa to thrive and this in turn has these areas to be able to support air cargo development for increased ET’s market share in the cargo business.” the region.

In terms of market penetration, East Africa’s largest Siginon Aviation operates two air cargo handling facilities in Kenya. Its air cargo handling facility, Siginon Cargo integrated logistics services provider Siginon Group, is the Centre (SCC), is located at Jomo Kenyatta International Airoldest locally owned logistics company in Kenya- one of port (JKIA) in Nairobi while the Siginon Eldoret Cargo Africa’s key emerging markets. Siginon Group, which basically started out as a small clearing and forwarding comCentre is located in the Eldoret International Airport (EIA) pany today is into transportation, warehousing and distriin Eldoret. The company has invested more than $10 mn in bution by air, road and sea. The group’s flagship business, a state-of-the-art air cargo terminal in Nairobi which includes Siginon Global Logistics (SGL) move cargo by road within a 5,000 sq mt general cargo warehouse, a 3,000 sq mt perishables center, a 2,000 sq mt basement parking for transit veEast and Central Africa in 12 different countries. SGL also hicles and a specialised storage area moves cargo by rail, sea and by air – for dangerous, valuable and temperathrough the Port of Mombasa and ture sensitive cargo. The facilities are JKIA Airport to all over the world.

African carriers posted the capable of handling perishable prodIn the fourth quarter of 2015, Sifastest growth of any region, ginon Aviation, the group’s another ucts such as vegetables, fruit, and with an increase in demand subsidiary and the leading provider flowers that are Kenya’s major exof 19.8 per cent compared ports. Siginon Aviation prides itself in of ground and air cargo services to to the same period a year the first cool corridor in JKIA that the local aviation industry located in earlier. Strong trade and ensures that they handle perishable Jomo Kenyatta International airport investment links with Asia cargo at the prescribed temperatures (JKIA) in Nairobi and also Eldoret contributed to the positive up to loading onto the aircraft.

International Airport in Eldoret, performance. Capacity grew The company’s last division, Sikicked-off its operations in Uganda 13.7 per cent YoY. ginon Container Freight Station (CFS) and Tanzania through partnership, is located in Miritini, adjacent to the and in the second quarter of 2017, the

34 | CargoConnect february 2020

Mombasa Port. Siginon CFS serves importers and exporters moving cargo that is local or transit containerised cargo as Jack Mwaura well as vehicular cargo at the Port of Mombasa.

Group Commercial Manager, In terms of facilities, Jack Mwaura, Group Commercial Siginon Aviation Manager, Siginon Aviation says, they have seen a bit of change in expansion of airports, having more warehouses, road network, and the runways. “If you look at the develWe are collaborating with global players like DHL. Besides, opments in Africa there are quite a few significant ones. we work closely with the regulatory authorities. In Siginon, we have our own CFSs and within them, we have our own For example in Addis Ababa, Ethiopian has built the largground handling facilities. At Nairobi, inside our two est cargo facility in Africa. There are other cargo facilities facilities we have banks, revenue authorities, and coming up in Malawi and Togo and in South Africa as well. bureau standards. So we see ourselves not just It’s changing for the main carriers which are Kenya Airto serve internal but also external customers. ways, Ethiopian Airlines and South African Airlines, among others,” informs Mwaura.

“We are collaborating with global grow in the year ahead. Therefore, players like DHL. Besides, we work Ethiopian Airlines is offering its dedclosely with the regulatory authoriUAE is predominantly ties. In Siginon, we have our own CFSs icated freighter flights and belly caan air market for India. pacity of its passenger aircrafts for and within them, we have our own Out of the total air cargo accommodating adequate air cargo ground handling facilities. At Nairobi, volume handled by India, shipments from India. “The current inside our two facilities we have approximately 20 per cent is annual uplift is around 23K tonnes, banks, revenue authorities, and bufor the UAE lane. Economic reau standards. So we see ourselves and the products vary from a wide sources expect the value of not just to serve internal but also exrange of general to temp-sensitive trade exchanges between ternal customers,” adds Mwaura. cargo such as pharma and perishthe UAE and India to hit ables, chemicals, textiles, garments, India is still the major source of $100 bn in 2020. engineering goods, auto spare parts, export products to Africa, says Abadi, and the volume is expected to etc.” informs Abadi.

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Most Modern Logistics Parks.

CargoConnect february 2020 | 35

Keki Patel Cargo Manager- India & Nepal, Emirates Skycargo

Over one-fifth of the total volume of 2.6 mn tonnes cargo carried by Emirates SkyCargo in 2018 originated from India.

That translates into millions of dollars of revenue and opportunities for a range of Indian businesses. Emirates SkyCargo also exported over 2,290 tonnes of other perishables from Mumbai between April and June 2018 to the Middle East during Ramadan.

Steve Felder Managing Director, Maersk South Asia

Q3 of 2019 witnessed solid movement of Indian sugar into Middle East countries. From mid- December, exports into East African countries such as Sudan, Somalia and Djibouti are increasing. Our initiative to take local produce to global market is in-line with our aim to be a global integrator of container logistics connecting and simplifying trade for the farmers and entrepreneurs across the region.

According to IATA’s latest airfreight market analysis, ported over 2,290 tonnes of other perishables which includes large volumes of fruit and vegetables from Mumbai which details figures for November 2019, noted that industrybetween April and June 2018 to the Middle East during wide freight tonne kms (FTKs) dipped by 1.1 per cent yearRamadan and even to the UK to meet the demand for peron-year (YoY). This marked the 13th consecutive month of ishable exports during the busy season.

YoY decline in airfreight volumes, however Europe and Africa were the only regions to record growth in air freight Emirates SkyCargo has built up its Dubai hub as the key demand compared to November last year. African carriers hub for cargo to and from six continents, over 150,000 posted the fastest growth of any region, with an increase in tonnes of perishables and 27,000 tonnes of pharmaceuticals demand of 19.8 per cent compared to the same period a year moved through Dubai from the second quarter of 2018 to earlier. Strong trade and investment links with Asia contribAugust 2019. uted to the positive performance. CaMaersk, the leading global intepacity grew 13.7 per cent YoY. grated logistics company, is fully UAE is predominantly an air equipped to suppor t t he t rade market for India. Out of the total air growth through its vast network, cargo volume handled by India, aptechnological know-how and extenproximately 20 per cent is for the sive inland coverage in India.

UAE lane. Besides, with the increasData sourced from Maersk India ing interest shown by the west in Trade Report Q3 2019 showed that UAE, India can be a bigger provider Middle East countries contributed of daily needs; marine, processed significantly to trade growth from foods, perishables, etc. Economic North and West India, with countries sources expect the value of trade exlike Saudi Arabia and UAE each dechanges between the UAE and India livering double-digit growth. This The recent launch of the to hit $100 bn in 2020. growth can be attributed to the fesIndia-UAE Bridge initiatives tive season of Eid that fuelled the India is one of the largest mango are set to attract trade and demand further propelling the conexporters in the world and Indian investments for both Indian sumption in the regions. mangoes are one of the most soughtand the UAE, as DP World “Q3 witnessed solid movement of after fruit, especially in the UAE, and offers technology-driven Indian sugar into Middle East counalso in the USA, UK, Canada and end-to-end (e2e) smarter tries. From mid- December, exports other parts of Europe. Over one-fifth trade solutions to Indian into East African countries such as of the total volume of 2.6 mn tonnes trade fraternity.

Sudan, Somalia and Djibouti are excargo carried by Emirates SkyCargo pected to increase” says Steve Felder, in 2018 originated from India. “That Managing Director, Maersk South Asia. translates into millions of dollars of revenue and opportunities for a range of Indian businesses,” states Keki Patel, Most recently, Maersk successfully delivered its first Cargo Manager for India & Nepal at Emirates Skycargo. end-to-end shipment of freshly produced ‘Green Chillies’ Emirates SkyCargo has played a crucial role in ensuring from Varanasi to Jebel Ali, United Arab Emirates (UAE) the quality of this native Indian fruit, preserved by ensurwithin a duration of 9 days. The company worked closely ing the right temperature is maintained and the rapid loadwith Agricultural and Processed Food Exports Developing and unloading of perishable goods. ment Authority (APEDA), the apex organisation under the In 2018, Patel informs, Emirates SkyCargo flew more Ministry of Commerce & Industry, responsible for the than 6 mn mangoes out of India to destinations around its export promotion of agricultural products, to enable trade network, which is a proven record growth of more than 50 opportunities in the state via land and sea routes. The per cent as compared to 2017. Emirates SkyCargo also exdelivery is a testament to Maersk’s efforts to unlock the 36 | CargoConnect february 2020

special feature Mohammed Al Muallem CEO and Managing Director, DP World (UAE Region), and CEO, Jafza

India and the UAE have enjoyed long and enduring cordial business and trade relations over the years, making India one of our top three trading partners. We aim to work in partnership with stakeholders to create value and explore opportunities with Jebel Ali Port and Jafza acting as a springboard for investors in both countries.

agro-trade potential in Uttar Pradesh and expanding across the country by leveraging end-to-end cold-chain logistics solutions.

“Additionally, due to its favourable climatic and geographical conditions, the agricultural produce from the state of Uttar Pradesh, especially Varanasi region enjoys a preferred demand in the global market which is the reason the government has plans to make it an export trade hub.

Our initiative to take local produce to global market is inline with our aim to be a global integrator of container logistics connecting and simplifying trade for the farmers and entrepreneurs across the region,” ascertains Felder.

In another move, Global trade enabler DP World has launched initiatives such as end-to-end trade solutions, which may boost trade and investment between India and the UAE. The recent launch of the India-UAE Bridge initiatives are set to attract trade and investments for both Indian and the UAE, as DP World offers technology-driven end-toend (e2e) smarter trade solutions to Indian trade fraternity.

DP World remains committed to India’s vision of ‘Make in India’, and Dubai’s ambition to remain the region’s top trading hub and India’s gateway to global markets. The e2e solutions delivered under the India-UAE Bridge will support investors through value propositions by leveraging assets and capabilities in both countries.

“India and the UAE have enjoyed long and enduring cordial business and trade relations over the years, making India one of our top three trading partners. Long-term investment flows in both directions and is the hallmark of trust we place in each other. We aim to work in partnership with stakeholders to create value and explore opportunities with Jebel Ali Port and Jafza acting as a springboard for investors in both countries,” says Mohammed Al Muallem, CEO and Managing Director, DP World (UAE Region) and CEO of Jafza.

In 2018, DP World’s US$ 3 bn joint investment fund with India’s National Investment and Infrastructure Fund was set to acquire assets and develop projects in sea and river ports, freight corridors, SEZs, inland container terminals and logistics infrastructure such as cold storage.

CargoConnect february 2020 | 37

 special feature

Global air cargo fraternity is upbeat about the winds of change buffeting the industry, as trends reflected in IATA Forecast 2020 suggest a moderate improvement in revenue, comparing to a transitory spell of stagnation last year owing to the geopolitics tensions. With technological innovations catching up and collaboration between global air carriers is on the rise it remains to be seen how air cargo market will fare in the face of high floating hopes.

Saurabh Sharma

38 | CargoConnect february 2020

 special feature

Does

Air cargo stand uplifted in

all the global sectors, air cargo stands as the most globalised industry; hence the externalities faced by air transport are bound to be numerous. Understanding the potential landscape in which airlines find themselves is therefore critical to ensure that aviation can grow sustainably in the future – and maximise its potential to deliver the economic and social benefits that greater connectivity brings. Given all the vicissitudes that air freight market maneuvers through, industry has still gradually increased its share of global freight and passenger traffic, and this trend has accelerated in the last 40 years. For the past decade, air-freight traffic growth has outpaced air passen-

ger traffic growth by one to two per cent each year.

In the past, air-freight sector offered limited services, with heavy reliance on several intermediaries and a significant dependence on air passenger operations. The sector can now be characterised as a sophisticated, innovative one, relying heavily on new electronic technologies, offering a wide range of transport and logistical products through dedicated specialist freight operators. With increasing emphasis on the globalisation of trade, infrastructure development and economic activities, air-freight growth is expected to grow big time in long run barring the fleeting slow down caused by trade war tensions between US and China. The air-freight growth is expected to be greatest in the Asian markets (intra-Asia; North America-Asia; Europe-Asia and Australasia). Recognition of the changes in the geopolitical landscape will certainly create new opportunities, but also new challenges to maintain global approaches to aviation policymaking.

CargoConnect february 2020 | 39

special feature

Trends triggering the rebound As hopes fly thick and high to a notion that air cargo sector is set to recover in upcoming year in contrast to the statistics of previous year, The International Air Transport Association (IATA) forecast that the global airline industry will produce a net profit of $29.3 billion in 2020, improved over a net profit of $25.9 billion expected in 2019.

Freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 2.6 per cent year-on-year in April 2019. Capacity growth has now outpaced that of demand for the last 12 months. Air cargo volumes have been volatile in 2019, due to many political and strategic tussles.

Glyn Hughes, Global Head of Cargo, IATA discusses the forward progress of air freight market, “The dawn of new decade brings a fresh hope in year 2020. Signing of the US -China Phase 1 trade deal should see a calming of tensions between the two global economic superpowers with commitments on both sides which should be beneficial to global trade. This is not a magic bullet, but it is a step in the right direction. Together with the continued growth in cross border e-commerce and specialised cargo supply chains we anticipate a 40 | CargoConnect february 2020

return to modest growth for this year in the region of two per cent,” says Hughes.

As industry has been resolute despite a transitory phase of doldrums for last couple of months owing to various political and economic reasons, “Urgency showed by some devel-

Overview of expected 2020 performance  The return on invested capital is forecast to be 6.0 per cent (improved from 5.7 cent expected in 2019).  The net profit margin is forecast at 3.4 per cent (up from 3.1 cent for 2019).  Overall industry revenues are forecast to reach $872 billion (+4.0 per cent on $838 billion in 2019).  Industry operating expenses are projected to climb 3.5 per cent to $823 billion from $796 billion in 2019.  Freight tonnes carried are expected to recover to 62.4 million, a 2.0 per cent increase over 61.2 million tonnes carried in 2019, which was the lowest figure in three years.

The signing of the US -China Phase 1 trade deal should see a calming of tensions between the two global economic superpowers with commitments on both sides which should be beneficial to global trade. This is not a magic bullet, but it is a step in the right direction.

Glyn Hughes, Global Head of Cargo, IATA

oping nations in Africa, South Asia and South America quietly manifest themselves as real opportunities,” says P Balasubramanian, Founder and CEO, Air Cargo Consultancy International Service (ACCIS).“ Talking on the long standing impasse between US-China trade Balasubramanian adds, “Thawing of US-China trade talks is the most important aspect, like any industry, symbolism

special feature

Prioritsing the drivers of change

Asia-Pacific has always been and will continue to be the driver, irrespective of what other regions strive to achieve.

P Balasubramanian Founder and CEO, Air Cargo Consultancy International Service (ACCIS)

too has its quick gains while substantive contents bring about real and sustainable gains. China as such, having been touted as ‘the engine’ of global growth, is slowly coming out of its shell for the past few months which is likely to result in some pent-up demand coming to the surface.”

There are certain key drivers of change that IATA and global airlines need to mull over in order to capitalise on the future opportunity and tacking the challenges over next twenty years. A project on the online assessment of the drivers of change was conducted by IATA’s Industry Affairs Committee (IAC) to prioritise the drivers. The assessment form has been sent to the IATA Industry Affairs Committee and approximately 500 industry professionals around the world. Participants assessed the importance and uncertainty of drivers to 2035, and in some cases proposed additional drivers.

Drivers assessed as having greater than average impact and uncertainty can be categorised as follows: • Alternative fuels and energy sources • Cyber security • Environmental activism • Extreme weather events

• Geopolitical stability • International regulation of emissions and noise pollution • Level of Integration along air-industry supply chain • New modes of consumption • Price of oil Strength and volatility of the global economy • Tensions between data privacy and surveillance All these drivers indicated ‘critical uncertainties’ which have to be look after in the broad scenario development. Apart from this discussions between airlines at alliance level are also catapulting the growth prospects. For example, Air France-KLM gathered senior representatives from various functions to explore how the company is prepared for the different scenarios outlined in the IATA’s report, and identifying actions needed to enhance the group’s ability to take advantage of the trends outlined.

CargoConnect february 2020 | 41

special feature

Challenges so far Uncertainties procreated by Brexist in Europe and trade tensions between the US and China have contributed to declining new export orders, there are other issues as well that hitherto have also marred the industry. In month-onmonth terms, export orders have increased only three times in the past 15 months and the global measure has been indicating negative export demand since September. The continued weakness is likely to lead to further subdued annual FTK growth in coming months. ”The US -China trade war occurred during a period of general weakening in the global economy, the end of the restocking cycle and a slowdown in the automotive sector for example, thus the effects of several factors resulted in the difficult year just completed. Had the trade tensions continued to escalate we would certainly have seen greater contractions and ultimately supply chain shifts as manufactures would have sought more advantageous production sites and less restricted markets to sell their products,” elucidates Hughes.

According to Jos Nuijten, Vice President, Network Integration Strategy, Descartes, “Air Cargo majorly 42 | CargoConnect february 2020

e-AWB

Despite any circumstances, sustained performance and an optimistic economic outlook, the air cargo industry does face challenges ahead related to e-AWB, security filing, new mail requirements and e-commerce glut.

Jos Nuijten Vice President, Network Integration Strategy, Descartes

faced four logistics challenges in 2019 and continues to reel under the same.

Despite any circumstances, sustained performance and an optimistic economic outlook, the air cargo industry does face challenges ahead. From evolving global trade tensions to continued pressure to embrace industry-wide digitalisation; going ahead, are four key logistics issues that will be important for top performers to address.”

The electronic air waybill (e-AWB) is yet to become the default contract of carriage for all air cargo shipments in a move designed to embrace digital processes throughout the air supply chain.

While this necessary change helps the industry get one step closer to eliminating inefficiencies, shipment delays and costly errors resulting from paper- and manual-based processes, it also introduces bigger challenges that cannot be solved overnight.

In short, not only do supply chain stakeholders need to be able to effectively communicate electronically, they also require access to timely and accurate information. Therefore, data quality and the timeliness of that data quickly become a top concern, alongside technologies that support mandatory digital requirements.

Security Filings

From a security filings perspective, more and more nations now require air carriers to supply advanced information to customs and/or border control on incoming shipments.

Nations that already have this capability in place realize that they need the information earlier and with better data quality. As a result, initiatives like Air

special feature Cargo Advance Screening (ACAS) in the US (or, more generically, Pre-Loading Advance Commercial Information (PLACI)) have been introduced and are becoming mandatory.

Along these same lines, the exporting air forwarder is also required to provide information either to the carrier or directly to customs in the im-

bling to fulfill new or upcoming requirements.

New Mail Requirements

In particular, the SAFE Framework of Standards as well as ICS-2 have eliminated the exempt status previously given to mail. In 2019, these changes require postal organisations and air express carriers to report information on the mail shipments they carry to cusUncertainties procreated toms agents. As of 2023 (and

by Brexist in Europe and the expectation is that this will trade tensions between move forward), air carriers will the US and China have also need to report postal contributed to declining shipments. new export orders and As a result, these entities must now consequently have determine how to get the required inimpacted the industry. formation from their mail system into an environment that can be used to complete security filings. Further, filing porting country prior to loading at the for both cargo and mail shipments airport. While customs may be comneeds to be provided to customs in a municating to companies within their consolidated manner, requiring even own countries, supply chain partners closer cooperation between air carriers’ and their providers are often left scramcargo and mail systems.

E-commerce Glut

While the international e-commerce boom has been good for air cargo, t he sheer volume of e-commerce packages does pose new challenges for both domestic and international shipments.

Chief among them is the requirement of everyone involved in the air logistics chain—shippers, brokers, forwarders, air carriers and truckers—to execute flawlessly to accelerate the movement of goods, achieve quick clearances from customs and provide new levels of visibility to customers throughout the shipment lifecycle.

T he a i r c a rgo i ndu st r y i s i n the midst of a significant transformation, one that grows stronger in lock step with the need to move cargo more cost-effectively and faster than ever before.

Despite challenges ahead, technology holds the key to helping companies automate processes, simplify compliance requirements and achieve new levels of data quality and informationsharing with air cargo partners.

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CargoConnect february 2020 | 43

special feature

Region-wise scenario Numbers bear testimony to the fact that the industry has gone through quite a long dull period of 2018 and 2019 and hence overall cargo revenue has been hit substantially low. Despite the slip in overall air cargo revenue globally, carriers in Asia-pacific, Latin America and North America still have managed to secure a moderate recovery in world trade and air cargo.

Underscoring the following reasons as to why Asia pacific managed to save grace for air cargo in 2019, Balasubramanian says, “Asia-Pacific has always been and will continue to be the driver, irrespective of what other regions strive to achieve.”  The lifting of hesitancy in China and the vigour shown by countries such as Vietnam, Cambodia, Myanmar they all are having a cumulative upturn in the way business is growing.  Relatively less of wasted capacity in deployment in that area is one key indicator of this robustness of profitability  Lack of adequate and significant upward move of production/exports in Europe and other parts too have ensured the supremacy of Asia-pacific Agreeing with observations of Balasubramanian about Asia-pacific region

44 | CargoConnect february 2020

Vikram Kumar, Chairman, Air Cargo Agents Association of India (ACAAI)Northern Region, and Director, CTC Air Carriers says, “A growing middle class with higher disposable incomes across all countries in the Asian Continent with easy access to e-commerce markets has further pushed time bound del iver ie s e n h a nc i ng moveme nt through air mode.”

“Asia continues to offers higher opportunities for growth in more high value and time sensitive commodities like Pharma, Apparel and Electronics, being the top manufacturing area of the world now, “adds Kumar.

Below is the region wise statistics of capacity and demand experienced by airlines from various continents last year:  Asia-Pacific airlines saw demand for air freight contract by 7.4 per cent in April 2019, compared to the same period in 2018 but a $6.0 billion net profit in 2020 (up from $4.9 billion in 2019) for a 2.2 per cent net margin.  North American airlines saw demand increase by 0.1 per cent in April 2019, compared to the same period a year earlier. International FTKs, however, fell 0.8 per cent. Despite solid domestic economic performance, global headwinds are likely to impact air freight outcomes in t he c o m i n g months, especially with the recent escalation in US-China trade tensions. Capacity i ncreased by 2 . 5 p e r c e nt over the past year.  Eu ropea n airlines posted a sharp 6.2per cent decrease in freight demand in April 2019 compared to the same period a year earlier. Weakness in German exp o r t o r de r s ,

A growing middle class with higher disposable incomes across all countries in the Asian Continent with easy access to e-commerce markets has further pushed time bound deliveries enhancing movement through air mode.

Vikram Kumar Chairman, Air Cargo Agents Association of India (ACAAI)- Northern Region, and Director, CTC Air Carriers

along wit h subdued economic growth and the ongoing lack of clarity around Brexit are all factors weighing upon air freight outcomes.

Capacity increased by 4.2 per cent year-on-year.  Middle Eastern airlines’ freight volumes decreased 6.2 per cent in April 2019 compared to the year-ago period. Capacity increased by 0.7 per cent. Air freight volumes have been declining since the fourth quarter of 2018. Freight volumes to and from Europe and Asia Pacific are growing, but a double-digit decline for the key North America market highlights some of the issues facing the region’s carriers.  Latin American airlines experienced an increase in freight demand growth in April 2019 of 5.0 per cent compared to the same period last year—a third consecutive month of positive FTK growth. Future growth in the region will be heavily influenced by the health of the Brazilian economy. Capacity increased by 18.7 per cent.  African carriers posted growth in April 2019 of 4.4 per cent compared to the same period a year earlier. The strong FTK growth in late 2016 and into 2017 has been only partly unwound and international FTKs for African carriers are still more than 30 per cent higher than their level of three years ago. Capacity grew 12.6 per cent year-on-year.

special feature

Living up the predictions

As an industry-level organisation, IATA’s role is not only to look at the ways individual organisations are exposed to or can benefit from changes in their external environment. Some factors will be important for a particular airline but not for another; some changes will be positive for one part of the industry supply chain and negative for another; or good for one region and less good for another.

IATA should establish an industrywide corporate responsibility programme, with a focus on transparency, safety and the environment that could help IATA to drive global standards and ensure the sector remains competitive in a world where there is increasing competition from other transport modalities.

Shedding light on the role of new airlines making their foray into global market Jessica Tyler, VP Strategy and Development, American Airlines Cargo elaborates, “With the influence of new players in the air cargo industry, it’s important to learn from those around us and look to the future with

Cargo is a leading indicator of how the industry is performing, and in 2019 we had a pretty harsh year but Forecasts expect the global airline industry to produce a net profit of $29.3 billion in 2020, improved over a net profit of $25.9 billion expected in 2019.

Brian Pearce, Chief Economist, IATA

new, creative ideas. As the industry begins to revolutionise through digital enhancements and investments in technology, an industry-wide mind-set change is also necessary to modernise and grow forward.”

Although the risk of reces sion h a s be e n dow nplayed, IATA forecasts—which According to IATA’S also predicts better global GDP forecast overall industry growth in 2020—are based on a revenues are forecast trade war truce. Presenting the IATA to reach $872 billion in industry outlook, Brian Pearce, Chief 2020 (+4.0 per cent on Economist, IATA says, “Cargo is a $838 billion in 2019). leading indicator of how the industry is performing, and in 2019 we had a pretty harsh year but Forecasts expect the

46 | CargoConnect february 2020

As the industry begins to revolutionize through digital enhancements and investments in technology, an industry-wide mind-set change is also necessary to modernize and grow forward.

Jessica Tyler VP Strategy and Development, American Airlines Cargo

global airline industry to produce a net profit of $29.3 billion in 2020, improved over a net profit of $25.9 billion expected in 2019.”

“Supportive central bank and fiscal policies worldwide has also lessened the risk of an economic decline,” adds Pearce.

Amidst all the optimism and impulse of rebound, eventually the collective action and shared interest of all the stakeholders will spur the growth of air cargo in 2020 as the future of industry will always have direct bearing on what is today when opportunity knocks at the door and industry sentiments are in favor of making most of it.

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feature

Roadmap to

sustainable Logistics is inevitable

I

n recent times the term ‘Green’ has drawn a wide attention across logistics operations globally owing to the current state of environment which is alarming as ever. As logistics is the backbone of almost any sort of business and it includes various operations starting from packaging, transport, distribution, to consumption, it will be in the thick of all the strategies that can be put in place in order to bring down the cost and overall feasibility. Hence transportation and logistics represent abound opportunities to further embolden the efforts towards sustainability.

48 | CargoConnect february 2020

feature

Though, the environmental externalities of the supply chain industry have long been recognised by the stakeholders but, it is only now that organisations are proactively swinging in action to figure out various ways and means to mitigate the factors impacting the environment, while balancing the economic feasibility at the same time. It is about time when more and more supply chain experts took concern of the current state of logistics sustainability and drive their conduct towards the betterment of ecosystem.

Saurabh Sharma

Current state of sustainability

Logistics industry has given the buoyancy to the economy owing to the steady adaptation of ‘smart’, technologically empowered operational practices, coupled with accelerated growth opportunities. India’s fast track rise to become a global economy has also led to adverse impact on its environment and ecology. Although the country’s logistics and supply chain has a long way to go before becoming a fully fledged Green Supply Chain, the process has begun to take shape.

“Staggering rise in e-commerce doesn’t just have an outsized economic impact though — it has dramatic implications for how we need to think about our supply chains, transportation networks and how we plan our cities. At the intersection of this are smart policies that become critical to driving sustainable solutions,” says Rachid Fergati, MD- Indian subcontinent, UPS. All this progress also has one caveat to it; logistics systems are under increasing pressure due to the impact of the natural environment which has long been overlooked. In India, the CO2 emission from fossil fuels has also grown at CAGR of 4.5 per cent, as compared to the 1.16 per cent growth in developed countries. Apart from CO2 emissions, transportation contributes to 30 per cent of particulate matter in the air in metro cities, leading to air pollution. However, any discussion on green logistics should not only remain confined to transportation as it includes facilities like warehousing,

transport terminals, packaging, distribution, material handling and even disposal of waste, all these operations are attributed to the carbon emissions in various degrees.

Notwithstanding the evident environmental implications, conventionally, the main objective of logistics has been to integrate all the supply chain activities in the most effective way to meet customer demands and minimise monetary costs, and in recent time companies have slowly but surely coming to terms with environmental implications of supply chain operations.

Concerning the dire need to swing in action to maintain sustainable ecosystem in logistics, Ketan Kulkarni, CMO & Head – Business Development, Blue Dart says, “Companies have become conscious regarding their environmental and societal impact. Organisations are taking responsibility and adapting their methods to meet emission norms to have a positive impact on changing weather patterns, their workforce, local communities and the environment. As stakeholders become more aware and conscious, sustainable supply chain operations will, in fact, become an integral part of strategy.”

Undoubtedly, for any company to

pursue sustainability, it is critical to link environmental, social, and financial goals within a broader strategy.

Tackling the obstacles

Economic viability is one of the most common place obstacles to sustainability. Although sustainability measures require an initial investment, the longterm savings could easily outweigh the costs. Apart from that, lack of recognition which has been another major hurdle for companies to overcome the integration of sustainable transportation and logistics is the basic recognition of what this actually encompasses.  Mismatch in coordination – The lack of consistency from one jurisdiction to the next makes coordinating multi-stop deliveries and back-loading more challenging, making the effort to collaborate and find sustainable solutions seem more troublesome than it’s worth.  Unequal benefits – Collaboration takes a lot of work from all parties involved, but if one party does not perceive the same benefits as others, projects can quickly fold before they have a chance to come to fruition.

Identifying these gaps and working through them to share benefits is key to moving past such roadblocks.  True commitment to sustainability – If a given company, retailer or manufacturer is not committed to finding sustainable solutions across its business, more complex projects, such as sustainable opportunities for logistics and transportation, will be much more difficult to gain approval and funding.  Category differences – The CPG industry is varied, so each opportunity may not be possible with every category. For instance, while generally moving away from truck transport to rail transport has environmental benefits, it is not appropriate with every category of product because routes are not as direct, therefore typically take longer.

India’s accession to the recent IMO ship recycling treaty has brought us one step closer to sustanaibilty, with the required 15 States now party to it, India’s ship recycling volume considerably contributing to the recycling capacity required under the treaty.

CargoConnect february 2020 | 49

feature But as the disposition of customers is shifting towards eco friendly products, supply chain companies are encouraged to adopt the green methods in various operations. UPS offers its customers sustainable solutions.

Analyzing: An updated Carbon Impact Analysis solution uses a dashboard that allows customers to view their emissions data in multiple ways, such as by mode, service level, or business unit. Based on a customer’s emissions, we offer optimization techniques that improve efficiency and reduce impact.

Packaging: Our Eco Responsible Packaging Program recognizes shippers who are committed to sustainable packaging. Shippers who meet criteria for damage prevention, appropriate sizing, and packaging material can participate.

Shipping: UPS carbon neutral shipping is an easy, cost-effective way to offset GHG emissions from shipments of any size. With UPS Smart Pickup™ service, customers can schedule a pickup only when needed, avoiding unnecessary trips and emissions.

Receiving: UPS My Choice® services enable customers to adjust delivery times or locations, while UPS Access Point™ locations enable package pick up from a centralized location.

These solutions increase customer convenience and help avoid unnecessary trips, miles, and emissions.

Striking the balance

In many cases, reducing costs also results in reducing different aspects of environmental impact. More recently, ‘cost’ has started to evolve its meaning to incorporate other factors – social and environmental. However, the consideration of achieving multiple objectives is more difficult because often these objectives are in conflict and determining a single performance metric that ade-

50 | CargoConnect february 2020

Ketan Kulkarni CMO & Head – Business Development, Blue Dart Organisations are taking responsibility and adapting their methods to meet emission norms to have a positive impact on changing weather patterns, their workforce, local communities and the environment. As stakeholders become more aware and conscious, sustainable supply chain operations will, in fact, become an integral part of strategy.

Rachid Fergati MD- Indian subcontinent, UPS We are expanding the use of route optimisation and navigation software that reduces fuel and its emissions across our network, from package pick-up to delivery. In London, we are testing smartgrid technology that can charge an entire fleet of electric vehicles simultaneously – a groundbreaking move.

DPDHL Group has set a target of 30 per cent efficiency improvement over the base of 2007 by 2020 for all its group companies. Blue Dart has achieved an efficiency improvement of 27.9 per cent in 2018 and is poised to achieve the overall target. quately evaluates them is challenging.

Adarsh Hegde, Joint Managing Director, Allcargo Logistics believes that corporate responsibility towards the whole ecosystem without compromising on the returns as both profitability and well being of the society are the two important pillars of doing business.

“One doesn’t have to invest too much money in implementing environmental sustainable business practices. The Paris Agreement on Climate Change 2016, to which India is a signatory, is aimed at raising global response and awareness to the rapidly increasing threat of climate

change. India, especially the Indian supply chain industry is integrating environment sustainability efforts and climate compliance initiatives with their strategies and operations to mitigate the impact of rising temperature levels. It is a welcome change,” says Hegde.

Ramesh Venkat, Head- Industry Partnerships, Logistics Sector Skill Council (LSC) is of the opinion that positive disposition of the stakeholders towards sustainability will certainly yield better solutions and monetary feasibility. Amalgamating or uniting the current processes and strategies to be greener and environmentally friendly will help enhancing the efficiency and possibly reduce the cost.

“Adopting good practices, contributing a positive impact on the society and protecting the resources by consuming less, wasting less, and recycling more will be good enough and not to sacrifice the profitability. A plan of action, with eco-friendly systems will always drive a company to remain focussed on bringing in profit while helping the environment,” feels Venkat.

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feature

Adarsh Hegde Joint Managing Director, Allcargo Logistics Adopting good practices, contributing a positive impact on the society and protecting the resources by consuming less, wasting less, and recycling more will be good enough and not to sacrifice the profitability.

A plan of action, with eco-friendly systems will always drive a company to remain focussed on bringing in profit while helping the environment.

It is anticipated that supply chain businesses with a poor sustainability track record are likely to witness higher investor flight and, a sustainability-focussed business model will remain key to higher revenues and enhanced return on investment. Simple measures like setting up waste recycling facilities or installing facilities to use natural lights will enhance profitability.

Combating carbon emissions

As the concern towards sustainability in logistics is gaining the currency, those involved in unconventional shipping, especially shippers, must not lose the sight of prevailing trends in supply chain being implemented by many

Ramesh Venkat Head, Industry Partnerships, Logistics Sector Skill Council (LSC) Adopting good practices, contributing a positive impact on the society and protecting the resources by consuming less, wasting less, and recycling more will be good enough and not to sacrifice the profitability. A plan of action, with eco-friendly systems will always drive a company to remain focussed on bringing in profit while helping the environment.

organisation to bring down the environmental risk associated with traditional practices.

Talking about the expedient use of technology and innovation to bring in sustanaiblity in logistics, Fergati elaborates, “We are expanding the use of route optimisation and navigation software that reduces fuel and its emissions across our network, from package pickup to delivery. In London, we are testing smart-grid technology that can charge an entire fleet of electric vehicles simultaneously – a groundbreaking move.

Since 2009, we have invested more than $1 bn in alternative fuel and advanced technology vehicles and infrastructure globally, with more than 10,000 of these

UPS is working directly with a growing number of cities worldwide to create solutions that help reduce traffic congestion and air pollution through innovative shipping and delivery approaches, operational efficiencies, and an ever-increasing fleet of alternative fuel and advanced technology vehicles.

52 | CargoConnect february 2020

vehicles in our fleet today.”

Complementing the assertions made by Fergati about tackling the emissions in a multimodal network by the way of incorporating environmentfriendly technology and understanding the predicament of their non implementation, Kulkarni enlists some of the initiatives taken by Blue Dart towards maintaining the carbon efficiencies.

Smart Truck: Blue Dart’s Smart Truck technology is designed to provide solutions to urban logistics challenges such as traffic restrictions, density and clogging, while ensuring environmental protection and fulfiling customer need for on-time delivery.

Electric Vehicles: Blue Dart has also piloted electric vehicles in India, another step towards operating its last mile e-tail delivery service with clean pick-up and delivery solutions.

Carbon Neutral Service (CNS): Blue Dart offers a specialised Carbon Neutral Service initiative, wherein customers are provided with an environmentally responsible shipping option to neutralise the carbon emissions produced by the transportation of their shipments. The service allows customers to neutralise their carbon footprint by paying an offset charge over and above their shipping rates.

DPDHL Group has set a target of 30 per cent efficiency improvement over the base of 2007 by 2020 for all its group companies. Blue Dart has achieved an efficiency improvement of 27.9 per cent in 2018 and is poised to achieve the overall target.

The ‘Green’ revolution that is bringing about the adoption of environmen-

feature tally responsible business practices worldwide, the next wave of disruption for Indian logistics is in the making, with a steady evolution of ‘Green Supply Chain Management (GSCM)’ process that is slowly making its impact. GSCM or Green Logistics is a process of adapting and adopting environmentally responsible processes that are sustainable and effective in minimising the ecological impact of traditional logistics activities.

“Adoption of Green Transportation can help the replacement of fossil fuelbased technology with bio-fuel based or with alternatives like CNG, hybrid, battery-operated vehicles, and equipment, etc. Additionally, taking into account details like fuel efficiency, payload management, routing, and driving techniques can go a long way in making ‘Green Transportation’ more cost-effective and sustainable. Consolidation of shipment and preference to railways or waterways as a preferred mode for transportation can also make a considerable impact on the environment while also saving on cost and time,” suggests Harpreet Singh Malhotra, Chairman and Managing Director, Tiger Logistics India.

Industry collaboration towards green logistics

Despite the fact that sustainability and commitment to the environment is the responsibility of everyone, collaborative logistics can pragmatically support sustainability goals through creating efficiencies, which will also result in reduced costs and a more streamlined supply chain.

Today, UPS is working directly with a growing number of cities worldwide

54 | CargoConnect february 2020

to create solutions that help reduce traffic congestion and air pollution through innovative shipping and delivery approaches, operational efficiencies, and an ever-increasing fleet of alternative fuel and advanced technology vehicles.

“The joint initiative announced at the World Economic Forum in January 2019, Loop™, enables UPS joined the coalition of the world’s largest consumer product companies and international recycling leader TerraCycle to unveil an innovative new reusable and returnable system for managing consumer product packaging. The system, being tested in Paris and New York as a first step toward full implementation in consumer markets, offers consumers a variety of products in customised, brand-specific, durable packaging that is delivered directly to customers, then collected, cleaned, refilled and redelivered. Loop brings a solution to packaging waste, improves the product experience and the shopping journey,” informs Fergati.

The Indian government has also been undertaking several measures through flagship projects like Sagarmala. Further, increase in the share of domestic inland waterways can bring up some sustainable cargo transport solutions, lower the carbon footprint and reduce pollution. Only then, we will be able to ease the pressure on over congested rail and road networks with restrained capacity utilisation rates. Leveraging the efficiencies of coastal shipping through setting up of an integrated network of maritime transport zones, modernised ports, hubs for connectivity are important for creating a sustainable transport ecosystem on a pan-India ba-

Harpreet Singh Malhotra Chairman & Managing Director, Tiger Logistics Adoption of Green Transportation can help the replacement of fossil fuel based technology with bio-fuel based one or with alternatives like CNG, hybrid, battery-operated vehicles, and equipment, etc.

Additionally, taking into account details like fuel efficiency, payload management, routing, and driving techniques can go a long way in making ‘Green Transportation’ more cost-effective and sustainable.

sis. India's accession to the recent IMO ship recycling treaty has brought the country one step closer to sustanaibilty.

With the required 15 states now party to it, India's ship recycling volume considerably contributing to the recycling capacity required under the treaty.

Besides collaboration from industry, there is an abject need to jog up the sentiments in every individual to the harms caused by their imprudent attitude towards the environment. Hegde put it as, “Collaborative approach is undoubtedly the way forward to achieve sustainability in the supply chain. The way government creates policies, launches initiatives and works towards sustainability, the same way corporate citizens are also responsible. Collaboration between the stakeholders will bring together shared insights and endeavour to reduce environmental impact. Collaboration always positively impacts the communities in which a company operates. At the end of the day, shared commitments always lead to profitability.”

With the constantly changing scenarios, the time is not far when both consumers and entrepreneurs will become accustomed to green logistics practices and will implement them in full swing which will further lead to the booming of Indian logistics sector while maintaining the originality of the environment.

infrastructure

WDFC to bring a paradigm shift in Railway Freight Operations

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overing a distance of 1,504 kilometres, from Jawaharlal Nehru Port Trust (JNPT) in Mumbai to Dadri via Vadodara-Ahmedabad-Palanpur-PhuleraRewari, Indian Railways’ Western Dedicated Freight Corridor is expected to pass through Haryana, Rajasthan, Guja rat, Ma h a ra sht ra a nd Ut t a r Pradesh. It is proposed to join the Eastern Corridor at Dadri. All contracts for the corridor have been finalised and are in progress.

Western Dedicated Freight Corridor (DFC) is a broad gauge corridor under construction that will connect Delhi and Mumbai, the national and business capitals of India. In October 2006, the Indian Government established a dedicated body, the Dedicated Freight Corridor Corporation of India (DFCCIL), to carry out the project.

The western DFC will separate freight and passenger traffic to increase the speed of freight movement. It will be used to transport fertilisers, food grains,

56 | CargoConnect february 2020

salt, coal, iron & steel and cement. The project will eventually be linked to the Eastern DFC to form four hubs known as India’s Golden Quadrilateral including Delhi, Mumbai, Chen nai and Kolkata.

Western dedicated freight corridor route details

The Western DFC will cover a distance of 1,483km (928mi) of double-lane electric track from JNPT to Dadri passing through Vadodara, Ahmedabad, Palanpur, Phulera and Rewari. It will run parallel to existing line through Narnaul and Ringas.

The important stations that will come across the corridor will be Phulera and Marwar Junction in Rajasthan, Palanpur, Amli Road, Makarpura, Gothangam/Kosad in Gujarat and Vasai Road in Maharashtra.

Infrastructure and construction

The Western DFC will have special

head-hardened (HH) 250m-long rails welded using Flash Butt welding machines. The axle road of the track will be 32.5t compared to the existing 25t axle load used on Indian rail tracks.

Construction on a 320km stretch of the project began in January 2016. It will be completed in two phases, with the first phase constructing a 186kmlong segment, and the second building a 134km-long stretch between Sachin and Vadodara. The construction is in its final completion phase.

A 626km, double-track corridor is being built between Rewari in Haryana and Iqbalgarh in Gujarat, via Rajasthan, spanning three states. It includes construction of 1,388km of total track length, including 1,342 bridges and 20 junction and crossing stations, and 68,000m² of building works.

Automated track-laying machines have been used to assist the construction. The project is also building support infrastructure, including eight casting yards for bridge precast works,

Latest Updates  Indian Railways’ cargo carrying capacity will receive a major boost as it conducted a trial run of double stack cargo train on Western Dedicated Freight Corridor (WDFC) on the 306 km long Rewari -Madar Section, towards the end of 2019.  Railways have already done a trial run of BOXNS cargo wagons at 110 Kmph, trial runs are being conducted on the Dedicated Freight Corridor Corporation of India (DFCCIL) tracks.  Indian Railways will run freight train at the maximum speed of 100 km/ per hour against the current maximum speed of 75 kmph on tracks. The average speed of freight trains will also be increased from existing speed of 26 kmph on Indian Railways lines to 70 kmph on Dedicated Freight Corridors (DFC).

 The Western Corridor primarily comprises of container traffic from JNPT and Mumbai Port in Maharashtra and other ports, including Pipavav, Mundra and Kandla in Gujarat.  This corridor will also facilitate transportation of fertilisers, food grains, iron and steel and cement, among other commodities.

Besides building freight corridors, plans to develop multi-modal logistics parks, freight terminals and theme parks alongside the corridor are on the anvil.  There are plans to set up Logistics Parks on the outskirts of Mumbai, especially near KalyanUlhasnagar area or Vashi – Belapur. Additionally, other parks have been proposed in Vapi, Ahmedabad and Gandhidham in Gujarat, Jaipur and Delhi – National Capital Region.

two sleeper plants for sleeper production, two rail welding depots, and two rebar yards for rebar works.

Further, 18 batching plants for producing concrete, 18 sand sources to cater to sand requirement and 11 Quarry sources to cater to concrete aggregate and ballast requirement will be built.

Rolling stock

The trains running on the Western DFC will be 7.1m-high, 3,660mm-wide, and between 700m and 1,500m-long. They will have a carrying capacity of 15,000t each.

Signalling and Communications

The Western DFC is equipped with an automatic train control system, which will be based on the European Train Control System (ETCS) standard, to avoid collisions. The signalling and telecommunications equipment include a train monitoring and diagnostic system to provide centralised monitoring of each train’s position on the track.

Electronic interlocking equipment is being installed to control signal lights and points, which will ensure the safe operation of trains.

Level crossing warning systems will get activated automatically when a train is approaching.

All applications will be linked through telecommunication systems.

Financing

The project is being funded by a soft loan of $4bn provided by Japan International Cooperation Agency under Special Terms for Economic Partnership (STEP). The remaining funds are being provided through equity by the Ministry of Railways.

CargoConnect february 2020 | 57

technology

Technological innovations in Air cargo Airports Authority of India to introduce AI-powered baggage screening

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ight airports were chosen by the Airports Authority of India (AAI) to test the capabilities of Artificial Intelligence in baggage screening. Pune airport was among the eight where ‘Baggage AI’ system was implemented. The AI-powered system looks to strengthen security efforts at the airport.

“Baggage AI is an artificial intelligence-based solution developed to enhance security at the airports. It is the first-of-its-kinds threat detection system for security x-ray machines. This AI software technology can automatically detect various objects and other threats 58 | CargoConnect february 2020

from the x-ray images produced during the screening of baggage and alert operatives”, commented Ajay Kumar, Director,Pune Airport.

Under the ‘Innovation for Airport Programme’, AAI selected eight start-ups from across the country to provide new methods and products for various processes at the airport. The start-ups were tasked with the development of technologies pertaining to air transport and logistics with the opportunity to test their innovations at selected airports. The startups, in their venture, would also receive help – in cash and kind, from the AAI. One such start-up is Mumbai-based

Dimensionless Technologies which introduced ‘Baggage AI’. Exploring the potential and possibilities of Baggage AI, co -fou nder Hi ma n shu Arora says, “There are many small things like a lighter, vaping machine and more which do not appear prominently on an x-ray scan. Baggage AI can detect these objects in the luggage and show them prominently with the help of shades and colour.”

AAI believes that Baggage AI will function as a ‘second pair of eyes’ for the security personnel assisting them in bolstering security by detecting and effectively removing the minutest of threats.

NEC to supply radar systems for three airports in Myanmar

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apanese technology firm NEC Corporation has signed a contract with Myanmar’s Department of Civil Aviation for the supply of aircraft radar systems to three international airports in the country.

Under the JPY2.3bn ($21m) contract, NEC will provide the radar systems for international airports in Yangon, Mandalay and Naypyidaw. Myanmar’s airports have seen an increase in passenger and cargo numbers due to the expansion of economic activities and the relaxation in visa requirements for tourists.

In 2017, the three airports welcomed a total of 7.26 million passengers, compared to 6.5 million in 2013. In addition, Yangon Airport recorded 55,000t of cargo in 2017, compared to 24,000t in 2013.

Without radar equipment, airports face issues regarding efficiency and safety. To tackle the issue, NEC will supply air traffic control radars, information processing systems and other solutions.

The equipment will be delivered through the Official Development Assistance (ODA) by the Japan International Cooperation Agency (JICA). By October next year, NEC will install airport surveillance radar (ASR), secondary surveillance radar (SSR) and a multi-sensor data processing system (MSDPS) to increase the efficiency and safety of air traffic control services.

ASR is capable of identifying the distance and bearing of aircrafts while SSR obtains the aircraft’s detailed operational information. MSDPS uses the collected information from the radars.

Last month, NEC Corporation introduced a wait time prediction system at the international passenger terminal of Tokyo’s Haneda Airport in Japan. The waiting time forecast system evaluates congestion at the airport’s security inspection area.

In July, Myanmar and Japan revived negotiations to form a joint venture (JV) for the construction of Hanthawaddy International Airport in the Bago Region of Myanmar with an investment of around $1.5bn.

BIAL to acquire DARE equipment from KUNZ for Bangalore Airport

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ndia’s Bangalore International Airport (BIAL) has signed an agreement with German aircraft equipment supplier KUNZ to produce, supply, commission and maintain specialised disabled aircraft recovery equipment (DARE) for Kempegowda International Airport, Bengaluru (KIAB).

With this move, BIAL aims to improve operational capabilities, as well as minimise downtime during runway emergencies.

By executing the agreement, KIAB has become the first airport in India to have a capability effect recovery of disabled aircraft up to Code F category, enabling it to

quickly respond and resume operations during an incident on the runway.

Thomas Hoff Andersson, Chief Operating Officer, BIAL said, “The acquisition of this equipment boosts BLR Airport’s operational capability during runway emergencies.”

Under the agreement, KUNZ and BIAL will jointly set up a centre for disabled aircraft recovery training at Bangalore Airport.

Once completed, the airport will become the first in the region to have such a facility.

BIAL has also formed a team of recovery managers, who will undergo hands-

on training at KUNZ’s recovery training facility in Germany.

In addition, a quick response recovery team will be created to respond to critical situations.

Andreas Fuge, Managing Director, KUNZ said, “KUNZ is honoured to have received this contract from BIAL to not only equip the airport with a wide range of KUNZ aircraft recovery products but also enter into a strategic partnership to establish a centre of competency for aircraft recovery training in the region, along with local support of Millennium Aero Dynamics. Together with our strong partner BIAL, we will develop a competent training centre in Bengaluru to reduce the downtime of airports during recovery situations and increase awareness to avoid secondary damage to aircraft during the recovery operation.”

CargoConnect february 2020 | 59

advertorial

AAICLAS becomes largest and fastest LSP in India

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irports Authority of India demerged and corporatised its cargo department into functionally and administratively independent organisation with a vision to become the foremost integrated logistics network in India and thus, AAI Cargo Logistics and Allied Services

company enterprise. It is envisaged to work as multimodal interface linking air, surface and water transport thus, becoming the largest networked and fastest logistic solution provider company in India. AAICLAS plans to promote, represent, organise, undertake, establish, conduct, handle, arrange, own, operate, participate, facilitate,

at 23 domestic, 19 international airports along with cold storage facility at 14 locations and courier facility at one location and has handled 9,56,258 MT of cargo in the year 2018-19 at these locations.

The following pie chart depicts the t o n n a g e - s p r e a d at o u r v a r i o u s locations:

Company Limited (AAICLAS) was incorporated on August 11, 2016 as a 100 per cent subsidiary of the Airports Authority of India. AAICLAS is a professionally driven and responsive service

sponsor, encourage, and provide the business as Cargo Terminal Operator, Free Trade Zone, Air Freight Station and inland container depot for cargo.

Currently, AAICLAS is operating

Apart from these stations, AAICLAS is also looking to expand its operations in other AAI operated airports, in-line with trade demands and directions from MoCA/Govt.

Value-additions in Indian Logistics Industry • AAICLAS is also operating Centre for Perishable Cargo (CPC) facilities at Ahmedabad, Amritsar, Chennai, Coimbatore, Guwahati, Kolkata, Lucknow, Madurai, Mangalore and Trichy.

In the near future, AAICLAS is looking forward to establish CPC in many other stations as well.

• Additionally, establishment of packhouse for the agricultural produces is being planned at Kolkata airport.

• Establishment of pharma zone is being 60 | CargoConnect february 2020

planned at Chennai, Aurangabad, Surat and Indore Airports.AAICLAS is also processing for obtaining the Certificate of Independent External Validators (CIEV), which is instrumental for logistics in pharma industry.

• AAICLAS has recently ventured in the In-Line Hold Baggage Screening Systems and has commenced operation onstandalone basis from October, 2019 at Kolkata, Ahmedabad, Calicut and Chennai airports.

• AAICLAS has been granted Regulated Agent (RA) status by BCAS enabling it process / handle all types of cargo as a single security entity at certain AAICLAS cargo terminals.

• AAICLAS is in the process of obtaining Authorised Economic Operator (AEO) status from customs authoritieswhich will enable it to have smooth cargo flow, streamlined and enhanced cargo security leading to end-to-end trusted supply chain.

i n terv i e w

Operating three main subsidiaries namely Oman Air, Airports and Aviation Services, the Oman Aviation group has emerged as prime strategic developer in empowering country’s aviation and cargo business.

Mustafa bin Mohamed Al Hinai, CEO, Oman Aviation Group briefs Saurabh Sharma about the state-of-the-art fleet services and product innovation which have established its reputation as the purveyor of air transport facilities in the country.

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Fostering Sultanate’s air cargo business 62 | CargoConnect february 2020

ow is the group facilitating the Sultanate’s logistics?

Oman Aviation Group is the country’s strategic aviation sector developer. We are tasked with empowering the aviation sector and enabling growth in the logistics industries. Our role is to coordinate cargo and logistics activity across the sector, promoting Oman as a business destination for aviation and cargo.

In practice, we have seen the launch of Muscat International Airport in late 2018, which has been a remarkable success resulting in a growth of around 10 per cent in the number of passengers using it year-on-year and steady flight growth of around four per cent.

Oman Air pivoted last year to focus on building a destination airline model, where it works in partnership with our national tourism bodies to boost the number of inbound visitors to the Sultanate.

What makes Oman Aviation a compelling business case for foreign investors to invest in air?

We use innovative ways to look at an aviation business, where we focus on the economic impact of our sector and adjacent industries, like hospitality also along with the commercials of the businesses which form the Group.

It has a number of benefits for us but also for international investors:  It means we go to market with a whole service encompassing airline, airport and everything in between  It gives our international peers a strong, cohesive partner to engage when doing business in Oman  And it frees the business units to focus on continuing to deliver excellent customer service, which wins them international awards and recognition We are also implementing advanced technology to streamline operations and working towards attaining IATA‘s Centre for Excellence for Perishable Logistics (CEIV Fresh) transportation certification.

In October 2018, we adopted IATA’s electronic airwaybill (e-AWB) to replace the paper airwaybill, welcoming the electronic integration of port and airport cargo community systems, including the Sultanate’s own Bayan electronic Customs system. This move enables customers doing business in or with Oman to pay for, track, clear and process all multi-modal shipments in real time.

Given the notable pre-existence of many renowned airlines, do you also plan to commence intensive cargo operations in India and its subcontinents?

Oman and India already have extensive connections in the cargo space, with India a major source of imported fruit and vegetables to Oman. Planes from India also see a very high load factor – one of the highest in Oman’s network.

For cargo operations, we see Oman’s role as becoming a link between African and Asian markets, with an important role for the southern city of Salalah.

Our aim is to handle 780,000 tonnes by 2030 and 1.5 million tons by 2040.

While ambitious, we think this target is attainable by investing in new technology, developing niche ‘cargo corridors’ in key markets, and leveraging Oman’s location and long-standing connections to Africa.

Besides this we have recently reported ongoing double-digit growth in volumes handled, with the year-to-end October 2019 seeing 10.4 per cent growth to 237, 939 tons compared to the same period in 2018. September and October both saw 11 per cent growth compared to the same month in 2018.

While there is a long way to go, this shows we are on the right path.

Kindly elaborate us on your stateof the-art fleet services, product innovations and route optimisation.

Oman Air SATS is a leading cargo terminal operator at Muscat International Airport, and is a joint venture between one of our business units Oman Aviation Services and SATS Singapore. The partnership was formed in 2016 to share international expertise and knowhow. In 2018, Oman Air SATS inaugurated the newcargo terminal at Muscat International Airport, featuring a 22,780-square-metre warehouse; it combines leading freight management technologies with best cargo industry practices and isequipped with the latest material handling system.  A certified 4-star Skytrax airline, Oman Air offers one of the youngest fleets of ultramodern aircraft in the skies, connecting 53 direct destinations around the world.

Our aim is to handle 780,000 tonnes by 2030 and 1.5 million tons by 2040. While ambitious, we think this target is attainable by investing in new technology, developing niche ‘cargo corridors’ in key markets, and leveraging Oman’s location and long-standing connections to Africa.  Oman Air has also been recognised for its conscientious approach to the environment, with London Heathrow recently ranking it as second cleanest and quietest airline serving the airport.  Our national carrier has also won awards for its onboard service and design, including Best Design Airline in the Middle East 2019 at The Design Air Awards and the 2019 Skift Design Award for First Class Passenger Experience.  Trusted commercial partners give passengers access to destinations all

over the world, including codeshare agreements with Malaysian Airlines granting access to Australia, with Air Italy for North America, and Kenya Airways for eastern and southern Africa.  Muscat International Airport was also named the Best Airport in the Middle East 2019 at the World Travel Awards, while Salalah Airport became the first regional airport in the Middle East with a five-star ranking.

As the group is keen on following the country’s mandate to bring in sustainable value in the economy, how you are going to realise it?

The pivot of Oman Air to a destination airline model with award-winning premium services focused on bringing travellers from around the world into the Sultanate will pay dividends. The introduction of ultra-long-haul flights mean the hub model could see limited growth potential in the years ahead.

We have a key focus in cold chain and fresh foods with global recognition over the quality of the produce, especially in fishing trade, which is actually the second biggest natural resource.

For freight forwarders, the Government‘s investment in sea-to-air connections, goods can leave Salalah and within 36 hours are with consumers in Europe or India. Besides, Oman offers direct access to the Indian Ocean without going through the Strait of Hormuz.

Brief us about your future goals and visions to expand the venture further in air cargo sector?

Year 2020 will see more announcements on as to how the sector approaches new technology like drones and AI. We are growing our cargo capacity where we see a lot of potential. Oman is within an eight-hour flight of twothirds of the world’s population.

And our ports are outside the chokepoints of Hormuz and Bab-elMandeb, meaning ships can dock in Oman and fly cargo to Europe, Africa, or Asia at a much faster pace. Those sea-to-air connections are vital.

Across both sectors Oman has benefitted from 50 years of peace and prosperity, meaning we still enjoy commercial relationships with all neighbouring countries.

CargoConnect february 2020 | 63

i n terv i e w

Incorporated in 1934, Everest Industries is one of India’s leading and fastest growing building solutions providers.

The company has a rich history of manufacturing building materials and Pre-Engineered Steel Buildings.

S Krishnakumar, Chief Executive- Building Solutions, Everest Industries in conversation with Ritika Arora Bhola discusses as to how PEB has contributed in revolutionising the warehousing industry.

Krishnakumar also talks about the future of the sector, megatrends and challenges that PEB industry is facing today.

Excerpts:

PEB revolutionising the warehousing landscape 64 | CargoConnect february 2020

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ow inviting is the Indian Pre-Engineered Buildings industry today? Please elucidate about the increasing scope and demand for PEBs and metal buildings industry.

To what extent, do you feel that PEB has contributed in revolutionising the construction industry?

The industry is steadily growing at more than 10 per cent from past few years. Penetration has increased to new applications like metro and railway stations, multi-storey buildings for offices, schools and hospitals, aviation industry and many more. Industries like Power and Cement which were earlier using site fabricated steel are also moving towards pre-engineered steel buildings.

Everest Buildings is the only company in the industry which provides integrated solutions like steel buildings, solar power plant, and Rapicon walls etc.

Warehouses, these days, are being constructed with the PEB mode of construction as opposed to the traditional mode of construction with brick and mortar in earlier days. What are the factors that have contributed to the popularity of PEB structures?

The factors that have contributed to the popularity of PEB structures chiefly are:  Fast construction, fast occupancy, aesthetic buildings, expandable in future,  Functional advantages of clear span structures and clear height buildings.

Where does the strength of your company lie and how does it position itself different and better than its competitors who are into the same line of business and have the same kinds of products to offer?

Everest Buildings is the only company in the industry which provides integrated solutions like steel buildings, solar power plant, and Rapicon walls etc., to its valued customers - from the last 85 years; we have been very much loyal, transparent and reliable with our customers.

Leading players are focusing on the emerging opportunities in the field of construction of steel buildings.

Do you think that steel buildings could become the norm in the residential sector?

Yes, steel buildings could become the norm in the residential sector. Currently, the international trend is to build tall structures in composite Steel and RCC combination like Burj Khalifa in Dubai. In India, the concept is picking up and will grow owing to the advantages offered by steel including speed, sustainability, durability and flexibility. Further, in regions with access constraints like hilly or uneven terrain steel offers an economically better alternative to conventional RCC structures, thus opening up possibilities for resorts, holiday residence and hotels.

What are the challenges that PEB industry is facing today?

There are several challenges that are faced by PEB industry varied from pricing of raw materials to safety of structure. Some of them can be enlisted as:  Fluctuating steel prices  Fragmented market and mushrooming of players which do not have engineering centers or believe in safety or quality  Unit rate buying concept as opposed to solutions concept  Adverse payments and liability terms.

The biggest hindering factor for the growth of PEB industry has been the fluctuating price of steel. How does your company deal with the problem of price fluctuation in steel?

We feel the government projects like DelhiMumbai Industrial Corridor project, Special Economic Zones (SEZs) and the National Investment and Manufacturing Zones (NIMZs), will bring greater investments in infrastructure, logistics parks, warehouses and industrial complexes.

In India, the concept is picking up and will grow owing to the advantages offered by steel including speed, sustainability, durability and flexibility.

Our primary business is to sell steel structures, hence we do not speculate on steel prices. Conservative methods of estimation and a robust monitoring mechanism with balance offer validate and help us offset impacts of steel prices fluctuation.

The government's focus on making India a manufacturing hub through the development of exclusive industrial corridors, has spelt good newsfor the PEB industry. What is your take on this?

We feel the government projects like Delhi-Mumbai Industrial Corridor project, Special Economic Zones (SEZs) and the National Investment and Manufacturing Zones (NIMZs), will bring greater investments in infrastructure, logistics parks, warehouses and industrial complexes.

Please throw light on new practices or innovations done by the Everest Industries in last few years.

Talking about the innovation, Everest has developed and launched integrated buildings offerings for the customers.

Besides that we have come up with solar rooftop panels over our steel buildings and Rapicon wall panels for periphery walls of steel buildings.

How do you foresee the future of warehousing industry? Please elaborate on the megatrends in warehousing in 2020- 2025.

The warehousing industry is growing steadily and we feel the demand is going to continue due to the following factors:  Implementation of GST in India  Growing Indian e-commerce industry has fueled the growth of warehousing/manufacturing and logistics industry as on-time delivery has become need of the hour.  Introduction of online stores which are pushing the demand  Entry of foreign firms investing in grade A warehousing space.

CargoConnect february 2020 | 65

IT plays a critical role in enabling operational excellence in Logistics History & background

JK Tyre & Industries is a leading tyre manufacturer in India and is amongst the top 25 manufacturers in the world with a wide range of products catering to diverse business segments in the automobile industry. Pioneers of radial technology, JK Tyre produced the first radial tyre in 1977, and is currently, the market leader in Truck Bus Radial segment. The company is the only tyre manufacturer in India to be included in the list of Super Brand of the year 2017; sixth time the honour has been conferred upon the company. JK Tyre has global presence in 100 countries across six continents. In 2018, the company inaugurated its state-of-theart Raghupati Singhania Centre of Excellence (RPSCOE) at Mysore.

Having global presence in 100 countries across Best practices & operations six continents, JK Tyre Agility, flexibility, speed and quality are key components, which are & Industries has become necessary to meet unique needs of one of the leading tyre customers and markets. Companies that focus on agility are manufacturers in India with market-sensitive and will profit by exploiting their supply a wide range of products chains rapidly, while cost catering to diverse business -effectively responding to unpredictable changes. We segments in the automobile use multiple planning and industry. Sameer Gupta, Chief tracking tools which help us to capture real-time Manager- Supply Chain, JK Tyre demand, better forecast, & Industries informs Ritika Arora production planning, order tracking and Bhola on the company’s background fulfilment process. Our and supply chain operations. Gupta demand planning is based on market also discusses about how to manage analysis rather than traditional forecasting logistics network and creating value method. We use for customers, and much more. technology to maintain transparency within each

66 | CargoConnect february 2020

component of the supply chain such as suppliers, retailers, outsource partners, plants, transporters and customers.

Ensure smooth coordination

The warehouse operations play a significant role in the advancement of any company. It is important that warehouses employ strategies to ensure efficient operations and business activities.

1. Customer focus and value-centered warehouse strategy - To keep pace with the moving target known as customer demand, companies need to build flexibility into their warehouse operations so that they are ready to give customers whatever they want and whenever they want it. In this competitive environment, ‘product customisation’ has become the new focus and a critical function of modern warehouses.

2. Re-engineer warehouse operations - To keep up with marketplace demands for efficient consumer response and just-in-time (JIT) delivery, companies across the board are actively seeking opportunities to speed product flow along the supply chain. We recognise the warehouse as a critical agent in supply chain efficiency, and deploy leading practices to benchmark current warehouse operations and establish targets for improvement.

3. Collaboration between suppliers, transporters and other departments is critical for smooth operations. This increases visibility and coordination across the supply chain. That allowed, all involved to make good decisions will affect the total value.

The right tools (software), processes and organisational structure will make effective supply chain collaboration achievable.

Managing logistics network & creating value for customers

Consumers, suppliers and manufacturers need to be in alignment in order to improve supply chain value. Recently, Sales and Operations Planning (S&OP) has emerged as the main vehicle for collaboration and a way to increase value by maintaining a well-coordinated, valid operating plan in support of customer demand, business planning and strategy. S&OP bridges the gap between sales/forecasting and supply chain. This is needed to make critical, informed decisions. S&OP also allows for greater visibility across the entire value chain. This cross-functional (and even cross-company collaboration) will lead to improve demand planning, minimised inventory, reduced costs, and help achieve superior customer service and fulfiled customer expectations.)

Scopes and expectations from LSPs

The primary objective of LSPs today is to grow profitably in an ever more global, competitive, and demanding business environment. LSPs must strive to achieve operational excellence across all business functions to attain this goal.

The blueprint for achieving operational excellence will vary but the end result is always the same: having the ability to continuously adapt, in a cost-effective efficient manner, to the changing requirement and actions of customers and competitors.

Information Technology (IT) plays a critical role in enabling operational excellence. It allows LSPs to introduce new services and processes quickly in response to customer requirements and market opportunities. It also provides LSPs with complete visibility to financial operations.

and ensuring better outcomes. Key functions performed by our logistic partner are efficient order processing, better stock management, reliable warehousing services, transportation function and effective merchandise handling. As I already mentioned, logistics partners must strive to achieve operational excellence across all business functions to attain profitability.

and maintain optimum level at each locations so that we have right quantity available to serve customers on time. In order to deliver tyres on time and in a cost-effective manner, we have connected last mile delivery by beat cycle. It helps us to connect with customers continuously, let customer choose and change delivery window and link to order processing.

Managing back-end supply

Factors driving tech-enabled growth in procurement

It is extremely important to robust the delivery process and optimise storage to bring efficiency in the entire supply chain operations. To enhance the process reliability and the performance of the store, increasing the information visibility is quite vital. Exchange of critical information in real time boosts

Technology is quickly reshaping just about every aspect of the way business is done. It is a catalyst for change as well as an enabler across industries, and the procurement industry is no exception. Factors which are driving tech-enable growth in procurement are new suppliers, boost in market coordination, enable better compliance, increase capacity and speed, minimise risk and increase trust by removing human error. These advancements not only enhance the performance of the buyer’s organisation, but also enhance the performance of the suppliers — helping improve the buyer-supplier relationship, collaboration and innovation.

In this competitive environment, ‘product customisation’ has become the new focus and a critical function of modern warehouses

Percentage of logistics work outsourced

For the last few years, we have outsourced our warehousing operations to enhance better customer experience for faster and smooth delivery with optimum cost. Our logistics partners perform crucial function that make transportation and store process more convenient and hassle free for business

the brand image and build the better nexus with the customers in the long-run, which ultimately results in improved margins. Along with the front-end, it is quite crucial to have a clearly visible back-end SCM operations in place. To maintain transparency at each level, it is extremely important to create and develop infrastructure, use technology and manpower properly.

Overcoming logistics problems

Fluctuating customer priority and managing logistics at peak demand are some of the key challenges in supply chain planning. To address above two challenges we capture real time market demand and respond to it accordingly. Technology help us to take decision on real time inventory

Megatrends

Artificial Intelligence (AI), supply chain automation and digitisation, blockchain, robotic process automation and forward deployed inventory (means moving the product closer to customer) are few emerging or top trends in the industries. These emerging trends in supply chain can affect both speed and efficiency which costs money. So, it is important to make an impact to balance the efficiency and adhere to cost reduction. The new trends in supply chain industry can make the functionalities even faster, better and efficient.

CargoConnect february 2020 | 67

Demand planning and forecasting are vital aspects of supply chain Role of capacity planning

Headquartered in Kolkata, West Bengal, Spencer's Retail is a leading multiproduct store chain. They have presence in over 35 cities in India. Though the company's model is based on the 'Food First' format, their many outlets sport multiple formats for retailing apparel, fashion, electronics, lifestyle products as well as music and books. Aniruddha Banerjee, Vice PresidentSupply Chain at Spencer’s Retail gives Saurabh Sharma insights on the company’s supply chain strategies, activities, challenges and solutions.

68 | CargoConnect february 2020

Supply chain demands a thorough planning and monitoring backed with artificial intelligence and machine learning techniques which help formulate the predictive modelling and demand forecasting. Accurate capacity planning and transfer of most of the supply chain cost (fixed cost) to discounted (variable) costs have direct bearing on demand prediction. Once planning is done then regular monitoring is done through advance level reporting system, mostly Business Intelligence (BI) that captures all the changes of internal and external macro-economic factors which showed up in recent times and might hit the accuracy. As planning is seldom 100 per cent accurate, so second level planning serves the back orders and stock out with minimum logistic cost as these are extra costs and will directly hit the profits. Nowadays, companies are investing a lot in supply chain optimisation using advance analytics and machine learning.

Catching up with the trends

Customers' wants the products in the lowest lead-time. It is also in benefit of the industry to have an error free and fast processing supply chain. The cost of such implementation is also coming down hence in the next few years it is expected to the masses rather create a niche of some technologically advanced ecosystem.

• Greater integration: Supply chain is now more integrated from top to bottom.

There is a bidirectional flow of information, leading to greater efficiency. The trend is going to grow further as technology becomes more accessible to all vendors. Then, the system will be more independent and would require only necessary interventions.

• Greater use of analytics: Analytics is finding more space in the supply chain as huge data is being produced in industry right now, supply

chain need to convert this into useful information. Different types of forecasting need to be used to be optimise inventory, ensure capacity planning and that continuous communication in both the parties. This trend is on upward curve right now, the industry needs to adopt this faster, to stay relevant in this dynamic environment.

• Robotic process automation: With the volume and velocity of trade increasing multi-fold, the need of the hour is to mechanise certain aspects that can be easily handled by the robots and augment human capabilities.

• AI solutions to route optimisation: The freight cost is a huge chunk of expenditure pie, the physical movement of inventory is time consuming as well as prone to losses. Hence, companies are opting for routes that are optimised to cover minimum distance and carrying maximum possible loads without damages. Vehicle utilisation is now a big factor in planning. The legal cost, like toll and other taxes also mandates routes this optimisation.

Warehousing tactics and strategies

New stores are being introduced with the increase in the business every year, hence it becomes imperative that planning and capital requirement is planned well, including capacity augmentation for festivals. The manpower requisition is floated, the day wise load is assessed, emergency options are defined and preparedness is gauged. The team then starts working on the goal, all external stakeholder are informed about their roles.

• Updating plans, decentralisation: The vendors are our key stakeholders, hence we connect with them at multiple levels, and decision making is decentralised to ensure smoothest and fastest response at appropriate level.

• Synergy identification with vendors: Wherever possible, vendor’s

feedback is taken to fix vendor side issues, like production issues, transportation issues. B2B is about mutual benefit and every effort is taken that such actions result in collaborative synergy for both.

• Fixed slotting: A fixed slot is given to every vendor, ensuring predictability.

Follow up is taken two days in advance and vendor margin of error is limited to just three hours. This also has cost implication as well as labour benefit.

• Receiving hygiene: The handheld devices result in greater speed, EDI and other SAP application are ensuring faster receiving. Strict norms result in lesser damages for end user.

Tackling the challenges

Some of the notable problems faced by the company, being in the retail space and the measures taken are as follows: 1. Effective forecasting techniques: Since we deal in products ranging from shelf life of 24 hours to two years, the complexity of forecasting increases. The bullwhip observed in quite a few cases, especially in the FMCG segment has been drastic in the past. Even apparels have shown stark obsolescence within two months.

A multilayer perceptron modelling based on weighted biases for forecasting has been implemented. It’s a tool enabled with machine learning, where after a considerable set of input, along with weights (biases) for complexities, the machine predicts the requirement with a accuracy of 72 per cent (a number quite high for the retail space) bettering the manual prediction before at 44 per cent.

2. Managing Purchase Orders (POs): POs from more than 100 manufacture and 450 vendors need optimised channel. Implementation of automatic replenishment system, considering complexities of planned order schedule, delivery schedule, min shelf space,

network stock, and few other parameters, the ARS module has been implemented and been on ground, typically creating calculated POs for the vendors.

3. Warehouse management: The simple yet effective SAP based WMS, with peripherals such as hand-held terminals and barcode scanners, along with 5s implementation, and color coding has optimised warehouse space, usability, improved picking a staging, eased out entry-exit operations.

4. Transportation networking: A routing problem: Using the maximal covering and capacitated VRP techniques, route optimisation and travel time has been considerably reduced, thereby minimizing the opex.

5. Challenges in technology implemenation: The employees need to be

Leakage management is a big area in the supply chain which is now being explored and has shown great results re-skilled and trained on the new proposed solutions. The time frame and cost function involved in facilitating and implementing the same is a challenge faced in implementing any technological solution. For example, when an EDI needs to be done with any vendor, it requires upper management, SCM and IT Intervention to coordinate properly, which usually takes a long time in implementation. But once the EDI is done, it actually saves a lot of time.

Factors driving tech-enabled growth

Innovation promotes exponential progression. Technology has become a necessity for sustenance. Some key reasons that force every player nowadays are:

• Competition: New and tech advanced start-ups are changing the rules of game, the big players are increasingly at risk, this compels them to move in new era and redefine their legacy systems • Lack of specialised manpower at lower level: The labour market is not keeping up with skills demanded by the industry. The industry need people, who are trained to handle the gadgets and technology. Training proves to be costly hence opting for machines is only solution • Volatility in skilled labour (nonpermanent behaviour): Lack of skilled labour can affect the overall growth of the organisation. To deal with this, technologies that require least human intervention can be opted.

• High growth rate: The growth in emerging market needs to be tackled through technology; the demand can only be met in many cases only when new solutions are taken up • Changing international paradigm: The technology needs to be in sync with international players, sometimes the international partners require local players to implement newest technology. This results in adoption increase by other player too.

Managing back-end supply

Managing back-end supply mostly deals with cost minimisation, which includes reduction of storage cost, maintenance of aging stock and logistics costs. This is also required to be done keeping in mind multi-article position and procurement plans. It not only helps get good deals on procurement prices from vendors but also assists in identifying and rectifying any kind of leakages in the system. Leakage management is a big area in the supply chain which is now being explored and has shown great results.

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n ews India looks to leverage Chabahar port to boost trade with Central Asia

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iplomats from India, Iran and Afghanistan took stock of the activities at the Chabahar Port in South-Eastern Iran one year after its inauguration earlier

this month and discussed ways to further enhance connectivity and use the port to expand the India’s trade links with Central Asian countries.

“What we are further dis-

cussing with Iran now is how we can further improve connectivity and how we can take it forward,” said Raveesh Kumar, Spokesperson, Ministry of External Affairs. “We are exploring how we can use this connectivity to expand our trade links with Central Asia.

This was an important part of the External Affairs Minister S Jaishankar’s meeting (with his Iranian counterpart),” Kumar added.

Both countries reviewed the ‘entire gamut’ of bilateral cooperation and agreed on accelerating our Chabahar project, Jaishankar tweeted after the meeting.

CITPL extends free storage time for DPD and DPE containers

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hennai International Terminal Pvt Ltd (CITPL), the office run by Singapore's PSA International Pte at Chennai Port, possesses expanded the free energy for capacity of direct port conveyance (DPD) and direct port passage (DPE) holders, in an offer to energise load compartments moving legitimately to and from manufacturing plants.

The free stockpiling time for DPD compartments (imports) has been expanded to five days

from three days, while the extra time for DPE holders (sends out) has been stretched out to 15 days from seven days, CITPL said in an exchange notice.

The rate amendments endorsed by Tariff Authority for Major Ports (TAMP) incorporate a 12.5 per cent expansion in terminal taking care of charges for hazardous merchandise and out of check compartments to 37.5 per cent from 25 per cent.

GHAL to develop `550-crore logistics park

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MR Hyderabad Aerotropolis Ltd (GHAL) has formed a joint venture with ESR Hyderabad 1 Pte Ltd, a subsidiary under the Hong Kongheadquartered ESR Cayman, to develop a 66-acre logistics and industrial park at Hyderabad airport city with an outlay of `550 crore.

E SR a nd GH AL h ave signed definitive agreements

with an equity interest of 70 per cent and 30 per cent respectively in the special pur-

pose vehicle called GMR Logistics Park. Knight Frank India was transaction managers

70 | CargoConnect february 2020

of the joint venture which proposes to develop a flagship airport centric logistics and industrial park providing modern facilities for warehousing, distribution centres and nonpolluting industrial such as light assembly.

The park will provide new-age facilities and amenities to occupiers and help attract investments and employment in the region.

Maersk delivers its first end-to-end shipment from Varanasi to UAE

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aersk, an integrated logistics company, has delivered its first end-to-end shipment; 14 MT of freshly produced green chillies from Varanasi to Jebel Ali, UAE, within a duration of nine days.

The company worked closely with the Agricultural and Processed Food Exports Development Authority (APEDA), the apex organisation under the Ministry of Commerce and Industry to enable trade opportunities in the state via land and sea routes.

Leveraging the Remote Container Management (RCM) technology, Maersk maintained accurate temperature of the cargo with proper tracking of the container movement and co-ordination with various stakeholders involved in the project.

SF Airlines targets Indian market with second freighter route

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hina-based express carrier SF Airlines has expanded its operations to India with the launch of a second freighter service between Shenzhen and New Delhi.

Undertaken by SF Airlines’ B747-400F, the new route will see two flights per week, providing a weekly round-trip capacity of 400 tonnes.

“The capital of India, New Delhi is an important location for Chinese companies to invest, develop and expand their business in the country. To leverage these advantages, SF Express has launched an all-new direct air freight route to New Delhi to fully penetrate the Indian market and provide comprehensive crossborder logistics coverage,” said said Sam Sun, Head, SF Express India.

n ews Three expressways to be completed in 3 years: Gadkari

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he government plans to complete three of the 22 expressways and green corridors in the next three years, including the flagship Delhi Mumbai Expressway being built at a new alignment, Union minister Nitin Gadkari has said.

These 22 projects c o mp r i s i n g 7, 5 0 0 k m o f greenfield expressways and corridors are planned to be completed by FY25 at a cost of `3.10 lakh crore.

"We will complete the flagship Delhi Mumbai Express Highway in the next

three years. The work will be done in 51 packages and work has already been started on 18. This will be India's longest expressway at 1,320 km and will reduce travel time between Delhi and Mumbai from 24 hours to 13 hours," the road transport and highways minister said.

Of the projects, six are 2,250 km expressways to be built at a cost of `1.45 lakh crore. The remaining 16 are greenfield corridors, including 5,250 km projects to be constructed at a cost of `1.65 lakh crore. Besides Delhi Mumbai Expressway, the minister said the trans-Rajasthan and trans-Haryana projects will be completed within the next three years.

Five new airports to become operational in Karnataka

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t a recently held summit hosted by the Ministry of Civil Aviation, Aviation Secretary Pradeep Singh Kharola stated that Bengaluru has the capacity to become the aviation capital of India.

The aviation secretary further added that five more airports will become active in

Karnataka in the coming two years. They are Vijayapura, Karwar, Shivamogga, Chikkamagaluru and Bidar. Although about 40 airports have been made operational in the past five years, the new target is to double the number of functional helipads and airports in the coming two to five years.

Reportedly, the new airports are a part of the UDAN scheme brought forth by the Central Government.

Indian Rlys may soon tie up with e-commerce companies to boost parcel business

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he Dedicated Freight Corridor Corporation of India (DFCCIL) is reportedly in talks with ecommerce companies to rope them in for

using their logistics hubs.

The move by DFCCIL is expected to cut parcel delivery time to a large extent. For instance, with this, the time taken to deliver a parcel from Mumbai to Delhi will come down from five days to 24 hours.

“This will be a game-changer

for the parcel industry, as all the stations, small and big, will have dedicated hubs to handle parcel. Besides, hinterland customers will also benefit from this through our intermediate stations,” a DFCCIL source was quoted as saying. The eastern and western DFCs will be fully operational by December 2021. After that, e-commerce companies will be able to use the hubs.

Visakhapatnam to soon get its first exclusive air cargo flight

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isakhapatnam is set to get its first exclusive cargo flight with SpiceJet likely to launch air freight services along Chennai–Vizag–Kolkata. The exclusive flight, capable of carrying 20 tons of air cargo, is expected to be launched in mid-February and operate on a daily basis.

The development comes as a relief to the Andhra Pradesh Air Travellers Association (APATA), which has been pursuing the introduction of air cargo flight from Vizag for quite some time now. It may be noted that Visakhapatnam MP MVV Satyanarayana held talks with several airlines for the same.

Paradip Port Trust to develop Western Dock berths as common user facilities

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he Public Private Partnership Appraisal Committee (PPPAC) has nixed a Shipping Ministry plan to build cargo berths at the Western Dock of Paradip Port Trust as a captive facility (for use by port dependent industries or PDI only), recommending instead that the project be taken up as common user terminals.

The 25 MT capacity project will be developed in two phases of 12.5 MT each. Apart from the `2,040 crore to be invested by the private operator, the port trust will spend `985 crore to extend the breakwater and deepen the channel/berths to allow capsize vessels to dock.

Paradip Port Trust has set a floor royalty rate of `46.69 per metric tonne for the project. The bidder quoting the highest royalty per metric tonne above the floor rate would be awarded the contract.

CargoConnect february 2020 | 71

n ews

DHL to expand warehousing and supply chain businesses in India

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GSPC LNG terminal at Mundra Port goes onstream; 3rd facility in Gujarat

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he Mundra port recently berthed its first Liquified Natural Gas (LNG) cargo at its terminal, multiple sources informed. This marks the commissioning of the India’s fifth and Gujarat’s third

LNG terminal, which is jointly developed by Gujarat Government-run companies and Adani Group, through GSPC LNG Limited, an SPV. “The terminal will soon be functional with initial opera-

tional capacity of about 1.5-2 MTPA,” a source privy to the development informed. The LNG received at the terminal would be supplied to Gujarat State Petronet Ltd’s pipeline to feed it into the market.

Allcargo Logistics ups stake in Gati to 20.8 per cent

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onsolidating its position as the single-largest shareholder in the express logistics company Gati Ltd, Mumbai-based Allcargo Logistics has increased its stake in the former to 20.8 per cent by acquiring an additional 7.5 per cent stake.

The Avvashya Group company had taken its stake to 13 per cent in Gati Ltd last week,

via a preferential allotment and through open market purchases.

With this, Allcargo Logistics has inched further in its majority stake buy and is on track to complete the process to acquire 44.5 per cent stake in Gati, the total deal size of which is `416 crore.

This time, Allcargo bought a n addit ional 9.1 million

shares in Gati in two different transactions. The company directly bought 5.16 per cent stake from the Gati promoters, pursuant to the share purchase agreement and acquired another 2.31 per cent through open market purchases.

Adani buys one more port as billionaire founder bets on India infrastructure

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dani Group's latest acquisition of a large de e p -wat er I nd i a n port underscores the con-

glomerate's quest to dominate the infrastructure sector in Asia's third-largest economy.

Adani Ports & Special Economic Zone said it would buy a 75 per cent stake in Krishnapatnam Port for an enterprise value of 135.7 billion rupees ($1.9 billion) in an allcash deal that would expand its pan-India market share to 27 per cent from 22 per cent.

The deal is likely to be closed in 120 days.

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Over the last few years, billionaire Gautam Adani has been expanding his businesses, signing up foreign partners and pledging billions of dollars in investments in new ventures. The acquisition will give Adani a strong toehold on the eastern coast of India, and along with two other ports - Dhamra and Kattupalli - Krishnapatnam is the new Mundra equivalent on the east coast.

eutsche Post DHL will soon make a ‘big investment’ to expand its Indian warehousing and supply chain capacity as the German logistics giant seeks to tap into the booming e-commerce business driven by Amazon and Walmart-owned Flipkart.

“We are going to do a big investment/more investment in the supply chain and warehousing in India because we see a lot of opportunity there. Generally, we tend to lease space because we don’t want to tie up capital; they are long-term leases typically for five to10 years,” Ken Allen, CEO, DHL e-commerce said.

“We have to do capacity planning to make sure that we utilise those fulfilment spaces as efficiently as possible because for their (e-commerce) back-up operations we need to be 100 per cent accurate and also need to be relatively low-cost,” Allen said.

Retail giants to locate logistic hubs in MP

photo representation purpose only

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etail giants Walmart, Amazon and Reliance are gearing up to tap the strategic location of Madhya Pradesh to set up logistic bases by locating national distribution centres and warehouses in the state.

The improved connectivity of Madhya Pradesh with other states in all directions has caught the eye of all key businesses.

The state is likely to see intense activity on this front in March and April with Walmart national head Krish Aiyar and strategic business head Stacy Stanley planning visits in January and February to survey locations for the hubs. Amazon India business head Charu Mathur is scheduled to visit during the next couple of months to work out details of business logistics.

INDIA’S LARGEST EVENT FOR

CONSUMER DURABLES LOGISTICS PROFESSIONALS Speakers at DURABLESCONNECT 2020

Deepak Gautam Innovation HeadSCM LG Electronics India

Neeraj Saini

Head of Planning & Logistics Crompton Greaves Consumer Electricals

Atulesh Rastogi

General Manager - Supply Chain & Procurement (Mobile Business) Lenovo India

Yogesh Sarin

Director- Supply Chain, South Asia Dell EMC

Ramanujam TS CEO Logistics Sector Skill Council

PARTNER

Ramkesh Jangra

Arun Kumar

Gaurav Pratap

Ghosh Singh Head- Supply Chain- SCC Head - Logistics & SCM Logistics Head Konica Minolta CERA Sanitaryware Ericsson India Global Services Business Solutions India

Vijay Wadhwani Manoj Chauhan Asst VP- SCM Relaxo Footwears

Head - Supply Chain Magicon Impex (Jivi Mobile)

Shantkumar Jagadi

GM- Supply Chain & Operation Bajaj Electricals

Ashutosh Raut

VP - Supply Chain Management Anchor Electrical (Panasonic)

Shaik Asad Parwez

General Manager – Supply Chain (Head Logistics & Warehousing) V Guard Industries Limited

SUPPORTING ASSOCIATIONS

PALLAVI: +91 8700809249 pallavi@surecommedia.in | SMITI: +91 9711383365 smiti@surecommedia.com SPONSORSHIPS AJEET: +91 9810962016 ajeet@surecommedia.com DELEGATE REGISTRATION RAHUL: +91 7011609817 rahul@surecommedia.com | AKASH: +91 8383061964 sales@surecommedia.com SPEAKER

UPS introduces e-commerce plug-ins for small and medium businesses

U FedEx Express enhances delivery capabilities between Asia Pacific and Europe

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exEx Express has expanded the coverage of its international priority direct distribution (IPDD) and its international economy direct distribution (IEDD) services. This means that crossborder deliveries between the regions are simplified and thereby sped up, enabling small- and medium-sized business to ship to their customers more quickly.

The enhanced connectivity provided by the IPPD and

IEDD services also enables customers in the Asia Pacific to send multiple packages from a single location in an origin country to multiple recipients in an European country. For example, a customer can use IPDD or IEDD to ship 20 packages at once as a consol idated sh ipment f rom Hong Kong to different recipients in Germany.

Karen Reddington, President of Asia Pacific at FedEx Express explained, “Trade be-

tween the Asia and Europe accounts for 55 per cent of world merchandise trade. As trade relations between Europe and Asia strengthen, this is an excellent opportunity for greater bilateral trade. As customer requirements for crossborder access increase, the expanded coverage of IPDD and IEDD services will enable our Asia Pacific customers to capture global opportunities and tap new possibilities.”

LATAM Cargo’s $3.5 mn worth Brazilian perishable hub to enhance exports

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ATAM Cargo has opened its perishable hub worth $3.5 million in Guarulhos, Brazil, which is a controlled-temperature cooler facility. The facility will protect the quality and freshness of perishable products while en route to other destinations in South America, North America, and Europe.

The facility occupies an area of 1,637 sq mts, of which 50 percent (825 sq mts) are equipped with variable temperature cooling chambers that offer refrigeration ranges of 0 to 2°C and 2 to 12°C for storage and re-palletising. The

system also gives the option of raising the temperature of any of the chambers up to 22°C. The group has increased its perishable storage capacity at Guarulhos by 33 per cent.

The perishable hub opened as part of the launching of FRESH, an enhanced

74 | CargoConnect february 2020

version of the perishable care option that provides more robust temperature control across the net work. Wit h F R E S H , L ATA M Group w i l l of fer controlled-temperature facilities across its network –perishable hub is one among several others, an online storage temperature deviation monitoring the system, reduced exposure time while on the tarmac, and a predictive model that identif ies t he best measures to en sure f resh ness, a mong other benefits.

PS is offering free plug-ins to make UPS tools available directly to shippers within four popular e-commerce platforms - WooCommerce, PrestaShop, OpenCart, and Magento.

This offering is part of the recently announced UPS® Digital Access Program, which natively integrates UPS’s services into popular e-commerce platforms and provides highly competitive shipping rates to users.

The UPS e-commerce software plug-ins allow merchants with UPS

accounts to access their negotiated rates and easily integrate a wide range of UPS delivery services into their favourite platform.

Additionally, SMBs can open a UPS account within the plug-ins and get access to discounts of up to 55 per cent off daily rates.

DHL Freight implements new transportation management system in France

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HL Freight has launched a new IT system in France as part of its ambition to create a single transportation management system (TMS) for all DHL Freight operations throughout Europe.

The new solution, called Evo, combines all core business operations and has now been implemented in all terminals in France.

Based on an existing framework, Evo has been developed entirely in-house to match the specific requirements of DHL Freight operations. The platform unites IT processes spanning from order entry to invoicing in administration and from pick-up to delivery in operations.

New digital platform launched for tracking cargo at hubs

Ethiopian Airlines to build a new $5 billion mega airport in Addis Ababa

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frica’s leading airline has announced plans to build a brand-new $5 billion mega airport in Addis Ababa. Ethiopian Airlines says it expects to have outgrown its current base at Bole International Airport within the next three or four years.

“The airport, which will cover an area of 35 square kilometres, will be built in Bishoftu, a town 39 kilometres southeast of Addis

Ababa, and have the capacity to handle 100 million passengers a year. The airport could b e b ig g e r t h a n Fr a nc e ’s

Charles de Gaulle, and the construction will start in the next six months,” Tewo l d e G e b r e m a r i a m , Group Chief Executive Officer was quoted saying.

“Bole Airport is not going to accommodate us; we have a beautiful expansion project. The airport looks very beautiful and very large but with the way that we are growing, in about three or four years we are going to be full,” explained Tewolde.

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receive CEIV certification for its pharma handling facilities and procedures.

Etihad Cargo representatives will be able to attend and participate in IATA LAPB (Live Animals and Perishables Board) meetings as part of its Pharma.Aero membership.

Group Chief Executive of Etihad Aviation Group, Tony Douglas said, “The global

focus on the environment and the urgency of reducing carbon emissions has never been greater. Etihad Aviation Group, toget her w it h it s partners, is taking an active role in reducing the impact of aviation on the environment t h roug h i n it iat ives ranging from optimised fuel management to sustainable financing practices.”

Kuehne + Nagel to accelerate development in Asia Pacific

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n order to target an even stronger role in logistics all over Asia, Kuehne + Nagel has decided to concentrate strengths and to combine its so far two Asian organisations into one strong region. With immediate effect, the new Asia Pacific region will be headquartered in Singapore.

The t wo current regional managers Jens Drewes and Siew Loong Wong will jointly

lead the ambitious development of Kuehne + Nagel in the Asia Pacific.

Joerg Wolle, Chairman of the Board of Directors at Kuehne + Nagel International AG said, “Kuehne + Nagel has shown great success all over the Asia Pacific in recent years and built up an already strong position in this remarkable region of the world. We strongly believe that the Asia Pacific

argocast, a new digital cargo platform, backed by Tigers Global, has been launched for freight forwarders, airlines, and ground handlers to get hands-free visibility of cargo and automate their warehouse operations has been launched. These capabilities drive improvements in quality, utilisation, and door-to-door time while significantly reducing costs.

The Cargocast platform tracks each cargo piece using RFID, pinpointing cargo in a warehouse within 2 ft radius. Using this location data, processes that previously required human interaction, such as goods acceptance, can be fully automated—which helps prevent errors and increase efficiency.

CSafe expands service centre in South Korea

Etihad Cargo gets Cool Chain Association and Pharma.Aero memberships tihad Cargo, the airfreight division of Etihad Aviation Group, has expanded its cold chain partnerships by becoming a member of the Cool Chain Association (CCA) and the Pharma.

Aero network.

The announcement comes less than a year after Etihad Cargo became the first carrier in the Middle East region to

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will be the driver of global economic development in the years to come. The joint leadership of the region by two proven executives will prepare the ground for a new dimension of organic and inorganic growth of our networks to even better serve our customers.”

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Safe Global, the innovation leader in active temperaturecontrolled container solutions for the transport of life-enhancing pharmaceuticals, widens its operational footprint with the opening of an enlarged and expanded service center facility at Incheon International Airport (ICN).

The new service center was strategically implemented to accommodate the growing demand for CSafe’s specialised air cargo containers in South Korea, and throughout the broader Asia Pacific region.

CSafe’s ICN station is one of the latest of numerous locations around the world established to broaden CSafe’s global service reach and increase the impact on customers who have entrusted CSafe containers to thermally protect vital life-enhancing pharmaceuticals as they are shipped to patients in need.

CargoConnect february 2020 | 75

report

h i g h l i g h ts

PHARMACONNECT 2020

decides the future of India’s pharma supply chain

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iven the critical need for a better dialogue between the logistics sector and pharmaceutical producers and shippers, Surecom Media organised third edition of PHARMACONNECT 2020 – Asia’s Most Influential Pharma Supply Chain Conference on January 16, 2020 at the premises of The Lalit Hotel in Mumbai. This year’s edition was endowed with participation by more than 70 pharmaceutical companies and 200 logistics professionals from around the country and abroad. Six intriguing panel discussions were held in the conference aimed to address the latest trends in temperature-controlled air cargo logistics, to find innovative solutions to common

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challenges and tackle issues related to trade barriers, infrastructure and distribution involved in pharmaceutical transportation.

Ajeet Kumar, Surecom Media’s Director, provided the opening remarks and noted the organisation’s commitment to delivering firstrate logistics conferences from their CONNECT series of conferences, to the entire industry. The conference formally commenced with the lighting of lamp by dignitaries- Tushar Jani, Group Chairman, Cargo Service Center; Bharat J Thakkar, Joint Managing Director, Zeus Air Services; Rajasekhara Reddy, VP- Global Demand Planning & Logistics, Glenmark Pharmaceuticals; Halit Tuncer, Regional Sales Manager- Cargo (Middle East & South Asia), Turk-

ish Cargo; Yashpal Sharma, Managing Director, Skyways Group; Ryan Viegas, Advisor- Pharma & Healthcare, Delhivery and Cargo Service Center; Manish Ghalaut, Head- Supply Chain Management, Novartis India; and Smiti Suri, PublisherSurecom Media.

Tushar Jani, Group Chairman, Cargo Service Center (CSC) addressed the conference in the inaugural session. He informed that notwithstanding recessionary trends, pharmaceutical exports are surging. “There is no country in the world other than India which offers quality drugs at affordable prices which peps up global demand for our drugs.”

Counting on India’s capacity, capability and global demand, Jani said, “India is at a very interesting stage. We say very proudly that we are the pharmacy of the world and we want to become a global supply hub, not only for the advanced markets but for the emerging nations and the rest of the world. It’s just that Indian pharma companies need to

make their supply chain responsive from logistics point of view. While, we as logistics players must become more strategically integrated and collaborate on key issues. We must set out to promote collaborative best-practices, provide practical guidance and bring disparate expertise together.” Applauding the vision behind PHARMACONNECT, Jani said the platform has helped to incubate collaboration and integration between pharma and logistics.

Jani added that the CSC terminal in Mumbai will act as a Pharma Excellence Center and become the hub of pharma activity. “CSC has a unique opportunity of being a neutral player to bring all pharma companies on a single table with the aim to enhance the quality of Indian pharma for the global market. Once a month, CSC will invite members from the pharma fraternity to get together with the industry to discuss their research, new deliveries, trials, technology, machinery, ways of packaging and training.”

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panel 1

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he first panel discussion of the conference titled ‘SUPPLY CHAIN SYNERGY BETWEEN PHARMA PRODUCERS AND THE FINAL RECIPIENT IN ORDER TO IMPROVE SERVICE AND REDUCE SHORTAGES’ saw eminent speakers- Ravi Kumar Tummalapalli, Head- Logistics - APAC, China and Japan, Teva Pharmaceuticals; Rajasekhara Reddy, VPGlobal Demand Planning & Logistics; Glenmark Pharmaceuticals; Koshy Abraham Chempakanelloor, Head- Central Planning & Strategic Projects - SCM, Cipla; Vinay Phatak, Head- Quality - South Asia, Bayer; Nihar Medh, VP and Head- Global Procurement, Cipla; Pravin Rajput, General Manager- Supply Chain Management, Metropolis Healthcare; Ryan Viegas, Advisor- Pharma & Healthcare, Delhivery and Cargo Service Center; and Yashpal Sharma, Managing Director, Skyways Group.

Talking about the practices and recent changes that has been happening in the upstream supply chain, Nihar Medh said that the changing regulations across the world makes it more imperative to not only focus on compliance within an organisation but also go beyond to the vendors and the vendors of vendors.

Rajasekhara Reddy said the way forward for pharma industry will be to bring efficiency and boost productivity through comprehensive global regulatory information management and achieve compliance in a timely manner by reducing costs.

Reddy believes that India has a unique opportunity to consolidate on its position of being a pharma hub to the rest of the world.

“At present, India does not have standard GDP Guidelines. Therefore, the publication of the draft GDP Guidelines is very timely and has the potential

vinay phatak

Head- Quality - South Asia, Bayer The standards for supply chain are, firstly, temperature monitoring, which is important to be followed as instructed by the R&D team of the product at any point of time, and secondly, the integrity of any product in the supply chain.

to alter the way business is done in the industry.”

Considering the idea of standards and procedures form the quality perspective, Vinay Phatak said standards are nothing but a set of expectations from the connecting chain between final consumer and the manufacturers. Standards do not come from regulations; in an ever evolving system, regulations come quite late. It is first the product designer or the developer that set standards for the rest of the players involved. “In my opinion, the standards for supply chain are, firstly, temperature monitoring, which is important to be followed as instructed by the R&D team of the product at any point of time, and secondly, the integrity of any product in the supply chain.”

Elucidating on how to maintain the integrity of a product with tackling the menace of spurious drugs not only in exports but also in the domestic market, Ravi Kumar Tummalapalli said that 2D barcoding needs to be extended to the products or drugs sold in the domestic market as well.

“Un for t u n ately, for small manufacturers, i mplement i ng t h is comes at a cost for mac h i nes a nd ma i nte nance as well. Besides, some drugs like injectables don’t have much space in the label for getting the 2D barcode to be put. As such, a few issues still exist pertaining to the implementation 2D barcoding. However, I believe, in the coming two-three years, it will become mandatory for the manufacturers as well as for the domestic market to get 2D barcoding or unique serial numbers mandatorily. This will help healthcare providers as well as manufacturers capture accurate and complete data about a drug’s inventory and administration.”

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Ravi Kumar Tummalapalli

Head- Logistics - APAC, China and Japan, Teva Pharmaceuticals In the coming two-three years, it will become mandatory for the manufacturers as well as for the domestic market to get 2D barcoding or unique serial numbers mandatorily. This will help healthcare providers as well as manufacturers capture accurate and complete data about a drug’s inventory and administration.

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n the second panel discussion, Sudhir Mohan Bansal, VP and Head- Supply Chain Management - India, Pfizer; Dimple Parikh, HeadLogistics, Lupin; Alan Fernandes, DirectorExports & Imports, Sanofi India; Gaurav Bhatia, Associate Director- Supply Chain, Cipla; Rajiv Bhattacharya, COO, V-Xpress; Sunil Arora, President, Air Cargo Agents Association of India; and Avinash Kumar Talwar, Head- MRO & Packaging Material Sourcing (Strategic & Plant), Global Supply Chain, Dr Reddy's Laboratories, deliberated on the subject ‘INNOVATING SUPPLY CHAIN OPERATIONS TO ENSURE SUSTAINABILITY, COLLABORATION AND MAXIMUM THROUGHPUT’.

Ma ny new de tails came to limelight, including maximising supply c hai n flexibility, innovat i n g s up ply chain processes a nd ma nag i ng multiple supply chain configurations- the new imperatives for today’s supply chain executives.

Rajiv Bhattacharya said that the pharma industry is also catching up fast with on-demand services, although the ecosystem is still not made favourable. “Starting from the manufacturers, then the doctors, and finally the end-consumer, that connect is still missing. For instance, when a doctor issues a prescription, it should be a process where the doctor could actually be able to order the medicines for the patient online, and those reach the door-step of the patient at the earliest.

Sudhir Mohan Bansal VP and Head- Supply Chain Management - India, Pfizer

e-Pharmacies who use a mix of technology and physical retail also enable pharma manufacturers to be aware on the shortages of any drug or which drug is the most sold and therefore needs more production, ultimately allowing manufacturers to enhance production levels and meet demand.

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Alan Fernandes

Director- Exports & Imports, Sanofi India It’s no use flaunting Good Distribution Practices (GDP) certification, if you are not able to bring any good distribution practice to the table amongst a group of executives involved in that process.

This ecosystem is still building up and will take a few more years to be properly established. The manufacturers and the regulators has to work together to take these initiatives to the next level.”

In terms of innovations, Sudhir Mohan Bansal said, “Pharma has often fallen short with most promising innovations because it did not consider the ecosystem into which they would be introduced. Today, e-pharmacy enables consumer to order medicines in a convenient manner, from their mobile or computer. This significantly help patients who are already sick and not in a condition to go out to find a pharmacy. e-Pharmacies have created challenges for conventional brick and mortar medical stores, they have educated the masses about buying the right medicines at best prices.

Besides, e-Pharmacies who use a mix of technology and physical retail also enable pharma manufacturers to be aware on the shortages of any drug or which drug is the most sold and therefore needs more production, ultimately allowing manufacturers to enhance production levels and meet demand. “e-Pharmacies will create opportunity to improve the overall healthcare quality in India and will support E-Healthcare and Digital India Initiatives by the government at large,” added Bansal.

Alan Fernandes stressed on the fact that is crucial to build on effective partnerships with all the stakeholders, to drive innovation and efficiency in end-to-end supply chain operations. “No matter how high and mighty we think we are as manufacturers or exporters; at the end of the day, we are just one link.” At Sanofi India, we have a system of conducting a face-to-face meeting with our partners every month. We empower only the operational teams to sit together and thrash out all the existing and newly rooting problems, all by themselves. They have their performance indica-

tors which they review every month; analyse where and how they missed out on certain targets, and then they move beyond.”

“It’s no use flaunting Good Distribution Practices (GDP) certification, if you are not able to bring any good distribution practice to the table amongst a group of executives involved in that process,” added Fernandes. “This is what we encouraged them to do, to learn from each other, and to effectuate practices that are already established and implemented. These face-to-face interactions, in the case of air freighting cool cargo, also helped us to understand how to optimise freight so as to reduce freight cost in an indirect manner.”

Outlining one of the most important perspectives, Gaurav Bhatia expressed, Predictive Analytics as an innovation, combined with Machine

Gaurav Bhatia

Associate Director- Supply Chain, Cipla Predictive Analytics as an innovation, combined with Machine Learning (ML) and Artificial Intelligence (AI) will be a key enabler going forward in demand sensing and demand forecasting of the market, aided by more and more frequency of discussions with business teams.

Learning (ML) and Artificial Intelligence (AI) will be a key enabler going forward in demand sensing and demand forecasting of the market, aided by more and more frequency of discussions with business teams.”

From a service provider perspective, Sunil Arora said, “The time has come when pharmaceuticals firms have to really look forward to the matured and professionally equipped companies, be it airlines or forwarders, to deal with their business. Today, supply chain management has evolved within itself by bringing knowledge, competence and training. Pharma handling is not just a job for anybody, it is specific to companies and handling partners who have intelligence and expertise and are competent enough to deliver the first-mile and last-mile expectations.”

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he third panel discussion saw professionals and specialists from the field- T V Madhusudan, GM- Distribution, RPG Life Sciences; Surendra Deodhar, VP- Materials Management, Reliance Life Sciences; Manish Ghalaut, Head- Supply Chain Management, Novartis India; Rajesh Pednekar, Lead Supply Chain- Healthcare SF; and Yogesh Lawania, HeadAPI Planning, Global Logistics, Biocon, sharing their knowledge and expertise on the topic ‘MASTERING DELIVERY, MANAGING DISTRIBUTION CHANNELS, FOLLOWING GLOBALLY ACCEPTED OPERATING & PACKAGING STANDARDS’. The panel stressed on the vital aspect of product distribution, from different distribution strategies to who is who in the industry, helping one to refine one’s own distribution strategies so as to achieve peak performance on the shelf. The panel also deliberated on how to improve one’s credentials with certification against packaging and packaging materials standard.

Commenting on the crucial aspect of driving quality as a cultural value, Rajesh Pednekar said that, “The logistics or supply chain team is never a part of any new product development or concept discussion/development. It is always the marketing or regulatory team. Supply chain executives are informed about a product at the end moment

Rajesh Pednekar

Lead Supply Chain- Healthcare SF Associating supply chain executives help classify the decisions that are closely linked to the product development strategy and guide supply chain policies from a design perspective. The effort should be to effectively and efficiently manage the product flow in the strategically planned supply chain.

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T V Madhusudan

GM- Distribution, RPG Life Sciences In the current manufacturing and supply industries, S&OP is recognised as a crucial driver in efficient supply chain management. Today powerful computing and software systems allow companies to achieve end-to-end visibility and transparency, and robust S&OP practices are a key driver in reaching these benchmarks.

or before being just rolled-out in the market. This is a big drawback. Now, you might ask, why? Well, none of the pharma products are designed keeping in mind logistics efficiency. Therefore, associating supply chain executives help classify the decisions that are closely linked to the product development strategy and guide supply chain policies from a design perspective. The effort should be to effectively and efficiently manage the product flow in the strategically planned supply chain.”

Highlighting the fact that pharmaceutical packaging is heavily influenced by cold chain needs, Yogesh Lawania expressed, “Today, we need to design our packaging so as to ensure that it is the most suitable packaging for effective temperature maintenance. We should not use any barriers in terms of proxy layers or things which act as an insulator. Pharmaceutical packaging suppliers have to address the requirements and provide tailored solutions for each application, while ensuring smooth processability at the pharmaceutical manufacturer.”

Speaking on the evolution of Sales and Operations Planning (S&OP) process, and also for better matching a manufacturer's supply with demand, T V Madhusudan said, “It wasn’t too far in the past when S&OP processes and software was not the fulcrum of discussion and theory they are today.

In the current manufacturing and supply industries, S&OP is recognised as a crucial driver in efficient supply chain management, especially as the supply stream diversifies across the globe reaching new and emerging markets. Today powerful computing and software systems allow companies to achieve end-to-end visibility and transparency, and robust S&OP practices are a key driver in reaching these benchmarks.”

panel 4

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he post lunch session kicked off with the fourth panel discussion on ‘EFFECTIVE HANDLING OF TEMPERATURE SENSITIVE PHARMACEUTICAL CARGO AT AIRPORTS; AIR EXPORTS’. Industry leaders who took to the stage were Rajni Sakpal, Sr GM- International Business - Global Logistics, Indoco; Makarand Sane, GM and Head- Export Logistics, Sun Pharmaceutical Industries; Manoj Singh, Senior VP and Head- Cargo, Mumbai International Airport Ltd (GVK); Venugopal Bangera, CEO, Mumbai Cargo Service Center Airport; Rajesh Vij, Business Head- Strategic Alliances – Marketing and Sales, Kanishk International; Raja Sundaramurthy, DGM- FDF Logistics, Mylan Laboratories; Tushar Ghai, Deputy Manager- Supply Chain Management, Aurobindo Pharma; and Bharat J Thakkar, Joint Managing Director, Zeus Air Services. The value-adding points that emerged during the discussion were the sector’s future infrastructure requirements such as developing airport assets in support of temperature-controlled air cargo, and where the industry can collaborate to develop an effective network to cover pharma corridors while maintaining shipment integrity.

Informing on the remarkable developments in the last few years, Makarand Sane said that LSPs and vendors have upped their game as far as handling of temperature-controlled shipments are concerned. “Specialisation has led to a more focussed industry that has developed a niche logistical expertise around the shipping of temperature sensitive products. Third party logistics (3PL) service providers began to emerge and institute

Makarand Sane

GM and Head- Export Logistics, Sun Pharmaceutical Industries Today, all partners in the temperature-controlled supply chain have become increasingly inter-dependent when building effective cold chain solutions.

They are creating Standard Operating Procedures (SOPs) together and supporting detailed understanding of processes and agreement of roles and responsibilities for each participant.

new methods for transporting global cold chain commodities. They have invested in meeting shippers' visibility demands. Today, all partners in the temperature-controlled supply chain have become increasingly inter-dependent when building effective cold chain solutions. Their focus is on building relationships between manufacturers, forwarders and carriers, ground handling agents, airports, packaging manufacturers, technology developers and regulators. They are creating Standard Operating Procedures (SOPs) together and supporting detailed understanding of processes and agreement of roles and responsibilities for each participant,” expressed Sane.

Agreeing with Sane, Manoj Singh noted, “Today, cargo handlers like us sit and talk with shippers face-to-face, this was not happening ten years back. We advise shippers on the best options while also ensuring that any predominant issues are checked, verified and considered. It is knowledge such as this and human interaction at the various levels that can never be replicated by technology.”

Venugopal Bangera touched upon some of the pain points related to infrastructure at airports.

“None of the airports in India have capacity to store 30-40 ULDs of pharmaceutical cargo at any given point of time. This is one of the reasons for which the number of freighter has come down to 5 per cent from the earlier 35 per cent. If we need more freighters, we need to have consolidation and for consolidation to happen, we need facilities which can hold at least two freighter full cargo at any time.” Asserting on CSC’s initiatives focussed

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Tushar Ghai

Deputy Manager- Supply Chain Management, Aurobindo Pharma Until and unless air freight has the shortest lead times, making it possible to deliver perishables and time-sensitive goods with far less risk of getting spoiled, the entire idea of air freight fails.

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report on building a robust airport infrastructure network with a solid IT platform and skilled manpower to service its airline and forwarding clients, Bangera added, “We are building a facility where you can hold 120 ULDs of cargo, be it pharma or perishables, at any given time. We are skilling our people on how to consider and specially treat sensitive cargo shipments. We have got pharmacists on board to train our people. We have also started running awareness programmes on effective handling of pharma cargo within the pharma trade fraternity.”

However, Tushar Ghai, believes that until and unless air freight has the shortest lead times, making it possible to deliver perishables and time-sensitive goods with far less risk of getting spoiled, the entire idea of air freight fails. “For instance, if we pay five times more for air freight, but the cargo reaches the US after 3-4 days, the decision of choosing air freight over other methods just seems pointless.”

Echoing a similar sentiment, Rajni Sakpal expressed, “We have only countable freighters from India for regulated markets. Due to this, we have to go for indirect lanes, and that is a sure shot sign of excursion taking place. Moreover, sometimes,

Rajni Sakpal

Sr GM- International Business Global Logistics, Indoco We have only countable freighters from India for regulated markets.

Due to this, we have to go for indirect lanes, and that is a sure shot sign of excursion taking place.

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Venugopal Bangera CEO, Mumbai Cargo Service Center Airport

We are building a facility where you can hold 120 ULDs of cargo, be it pharma or perishables, at any given time. We are skilling our people on how to consider and specially treat sensitive cargo shipments.

we put ourselves at the brink of facing critical questions arising due to global priorities on compliances. We as exporters or importers expect speed and expedited processes so that the purpose of opting air mode is not defeated.”

“Speed, efficiency and innovation will be crucial to meet customers’ expectations and tackling challenges. Likewise, the future success of the air cargo industry, especially in the pharma industry would also depend on collaborative efforts and sustainable partnerships between the various stakeholders of the air cargo industry,” further added Sakpal.

Asking everyone to explore the business benefits of real-time, temperature monitoring solutions and best practices for implementation, Rajesh Vij said, “Historically, life science manufacturers have lacked the tools, resources, and technology necessary to gain full visibility into the environmental conditions their products are stored in as they traveled through the cold chain.

Because data loggers only provided temperature data once the shipment had arrived at its final destination if a temperature excursion did occur, cold chain leaders could only find out after the fact. However, recent technological advancements in IoT, data management tools and connectivity have ushered in a new era of real-time temperature monitoring. Due to the emergence of better, faster and more accurate real-time monitoring tools, life sciences manufacturers can now track high-value products in real-time to ensure safe and on-time delivery.”

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uring the fifth panel discussion, Rajesh Pednekar, Lead Supply Chain- Healthcare SF; Ryan Viegas, Advisor- Pharma & Healthcare, Delhivery and Cargo Service Center; D D Reddy, GM- Warehouse, Aurobindo Pharma; Yogesh Lawania, Head- API Planning, Global Logistics, Biocon; Deepak More,

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Managing Director & Chairman, SD Cargo; Lalit Patil, Manager- Warehouse Management, Roche Products India; Rajesh Rao, Head- Planning, Logistics & Distribution, Exeltis Pharma; Subash K Talukdar, Senior GM- Supply Chain & Demand Planning, Lupin; and Ravi Kumar, Head Warehouse & Distribution, Johnson & Johnson spoke

extensively on the area of ‘TEMPERATURE-CONTROLLED WAREHOUSING & PACKAGING’. The key takeaways were- eliminating risks with preventative measures is the key to sensitive-cargo’s safety, and from warehousing to packaging to transportation, choosing a time-critical logistics partner for whom dealing with supply chain stress is a speciality.

Talking about the current scenario, D D Reddy said, “Packaging is the first line of defense in protecting temperature-sensitive products in the supply chain, but it’s important first to understand the ‘offense’ in order to make the best packaging decisions. Companies sometimes may lack knowledge about the latest temperature-sensitive packaging solutions now on the market and which options are the best choices for the varied portfolio of their products. Another issue that manufacturers face is the lack of knowledge about complex global and regional compliance packing requirements.”

Deepak More feels that an additional area to consider when making smart packaging choices is learning more about the transportation environment. “While some may choose to hire in-house packaging specialists, another resource may be to consult with a trusted 3PL provider that can point companies in the right direction for the best options specific to their transportation needs. Some carriers may be able to provide a detailed temperature profile map of their network, which will help in selecting the best packaging solution by lane. This will ensure that packaging for products moving from Mumbai to Kenya, for example, will hold up and protect the shipment the entire way.”

Elaborating on better distinguishing specially packaged pharma products as well as on their better handling and transportation, Yogesh Lawania mentioned, “Colour variations in packaging for controlled ambient and refrigerated products will help identify products according to their priorities, cut out errors in handling, and thereby route the product efficiently through the complete supply chain. In practical, these should be imple-

Yogesh Lawania

Head- API Planning, Global Logistics, Biocon Colour variations in packaging for controlled ambient and refrigerated products will help identify products according to their priorities, cut out errors in handling, and thereby route the product efficiently through the complete supply chain. In practical, these should be implemented as internationally guidelines.

Subash K Talukdar

Senior GM- Supply Chain & Demand Planning, Lupin The future of pharma packaging will see a shift towards more sustainable materials, moving away from plastic which the industry has been so heavily reliant on for design and manufacturing. New techniques are also making it widely possible to reduce waste. For example, 3D visualisation techniques eliminate the need for multiple prototype designs and computer-aided manufacturing like 3D printing uses only exact materials, minimising waste.

mented as internationally guidelines.” With the change in regulatory requirements for combination products, pharmaceutical and biotech companies are spending resources to remediate DHF to meet the new regulations. In parallel, these organisations will need to change their approach and strategy for future projects, which will alter their supply base, including packaging and device companies.

Meanwhile, Rajesh Pednekar seemed optimistic as he talked about the boosters for packaging improvements such as Silica Gel which is widely being used in the pharmaceutical and food industries, and which cuts the requirement of sending a product through the cold chain. “The primary function of silica gel is to protect the packaged content against internal moistening by controlling and/or degreasing the moisture level within the closed package. Silica gel is a safe product since it is non-corrosive and non-toxic by nature. Therefore silica gel has received US government approval for use in food and drug packaging.”

On the fronts that need improvement, Lalit Patil said, “The industry should be infused with a stronger quality-control emphasis, such that raw materials, in-process fillers and packaging systems, and finished products are continually checked for product integrity. Adequate information should also be passed onto the packaging manufacturers or vendors on the kind of packaging requirements for the various drugs so that they can work on more suitable and reliable packaging solutions.”

“The future of pharma packaging will see a shift towards more sustainable materials, moving away from plastic which the industry has been so heavily reliant on for design and manufacturing,” said Subash K Talukdar. New techniques are also making it widely possible to reduce waste. For example, 3D visualisation techniques eliminate the need for multiple prototype designs and computer-aided manufacturing like 3D printing uses only exact materials, minimising waste.

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he last panel discusion on ‘INTEGRATION- DEVELOPING DIGITALLY CONNECTED SUPPLY CHAIN NETWORKS’ witnessed Vipul Jain, Head- Supply Chain – Transformation Projects, Cipla; Hariharan V S, Supply Chain Analytics, Cipla; Pramod Pereira, Asst GM- Quality, Training and Procedures at Cargo Service Center; Mohit Agarwal, Demand Ditribution and Channel Management, Janssen India; Hiren Dave, Senior Manager- Sustainable Value Chain, Roche Products India; Gaurav Bhatia, Associate Director- Supply Chain, Cipla; and Seema Nariani, Head- Product Quality and Safety, Roche Diagnostics India, expressing on how digital transformation technologies can help deliver elevated business intelligence to create a level of operational efficiency a c r o s s t h e e xt e nde d s upply c h a i n w it h i nve s t i n g i n t h e tools to support these technolog ies, t hen, ca n significantly reduce costs a nd create extraordinary value for companies and consumers.

Speaking on how Cipla is infusing digitalisation into its business planning and execution, Vipul Jain specified, Digital is embedded in business planning and executions; each critical area in the value chain has a clear approach for digitised operations. “Practical and strategic decision

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Vipul Jain

Head- Supply Chain – Transformation Projects, Cipla From procurement of the raw material to the dispatch of goods to the customers, digitisation is helping Cipla build a strong integrated supply chain network, and is helping them to manage efficiencies, the cost of supply chain, services rendered to customers and investments in inventories and infrastructure.

Hiren Dave

Senior Manager- Sustainable Value Chain, Roche Products India AI will increase drug development efficiency by not wasting research efforts, for example creating alternative hypotheses for trials by discovering more data to enable drug repurposing.

Additionally, the influx of data from new devices will enable real-time, on-the-go, instant results.

making is facilitated through real-time information. Tools like advanced analytics and those used at business warehouses highlight areas which require focus, rather than targeting multiple actionable items. Therefore, a large amount of data is converted into KPIs which provides insights against the previous period’s targets, or competition.”

Cipla’s supply chain is end-to-end, added Vipul. “From procurement of the raw material to the dispatch of goods to the customers, digitisation is helping the company build a strong integrated supply chain network, and is helping them to manage efficiencies, the cost of supply chain, services rendered to customers and investments in inventories and infrastructure.”

According to Hariharan V S, “Leveraging technologies to nurture product and service innovation, enable manufacturing efficiencies, and promote agility throughout the value chain, are three critical business outcomes enterprises can achieve through digital transformation.”

“Integration and extension capabilities are critical to drive the business-process orchestration strategy to enable future business processes by providing a unified set of connection points across multiple system applications and digital apps distributed across multiple platforms. Based on these capabilities, the digital platform can be used to fast-track integration and trigger new workflows/ business processes,” further noted Hariharan.

Hiren Dave said, “Since the pharmaceutical industry is one of the most wasteful, it needs to increase efficiency, particularly when it comes to drug development. We see pharma companies losing margins and lacking the required capital to continue to run trials or testing. At the same time, Artificial Intelligence (AI) is maturing -

turning the hype into more tangible use cases.

The predictive and analytic powers of AI enable companies to make smarter, faster, and more strategic decisions. AI will increase drug development efficiency by not wasting research efforts, for example creating alternative hypotheses for trials by discovering more data to enable drug repurposing. A data-driven approach can discover trial aspects that are of vital or strategic importance, thereby enhancing the ability to make critical decisions. Additionally, with the influx of data from new devices it will enable realtime, on-the-go, instant results.”

To meet this new world of demand, Seema Nariani said that ecosystem players should understand the ways different new technologies and practices are evolving. And just as importantly, they should master the timing. Knowing the stag-

seema Nariani

Head- Product Quality and Safety, Roche Diagnostics India Knowing the stages of change that lie ahead for the market as a whole, and especially, for the last-mile, may be the key to knowing which investments to make at which time. Without an informed view, it’s too easy to overextend or fall behind.

es of change that lie ahead for the market as a whole, and especially, for the last-mile, may be the key to knowi ng wh ic h i nvestme nt s to ma ke at which time. Without an informed view, it’s too easy to overextend or fall behind.”

“By assembling a software stack that can manage the end-to-end supply chain, companies of all sizes can meet, and possibly even exceed, industry standards that customers are looking for. This is critical in a world where each new generation of consumers brings with it a new set of expectations, and where vendor loyalty is getting harder and harder to retain,” added Nariani.

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spotlight

Celebrating innovation, effectiveness and the power of creating impactful business service experiences, , held at The Lalit Hotel, Mumbai on January 16, 2020, was the industry's most prestigious recognition of achievement and excellence. highlighted and honoured exemplary achievements of top organisations and individuals who had demonstrated out-of-the-box initiatives in the logistics and supply chain sector. Here, we bring the highlights of the much applauded event of the year.

Exemplary Leadership Award Tushar Jani, Cargo Service Center

Hall of Fame Award Rajasekhara Reddy, Glenmark Pharmaceuticals

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Supply Chain Professional of the Year Sudhir Mohan Bansal, Pfizer India

Supply Chain Operational Excellence Gaurav Bhatia, CIPLA

Procurement Excellence in Pharmaceutical Industry Dr Reddy’s Laboratories Ltd

Best Air Cargo Terminal Operator of the Year Mumbai Cargo Service Center Airport

Supply Chain People Development Award Cipla- SCM

Warehouse Automation Company of the Year and Warehouse Innovation Company of the Year Gandhi Automations

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spotlight

Exemplary Women Leadership Award Rajni Sakpal, Indoco Remedies

Airfreight Forwarder of the Year- Pharma Shipments SD Cargo

Procurement Leader of the Year Avinash Kumar Talwar, Dr Reddy’s Laboratories Ltd

Best Innovative Use of Technology in Procurement Cipla- SCM

Cold Chain Transporter of the Year SD Cargo

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Logistics Superbrand of the Year DHL Express India

Air Freight Service Provider of the Year- Pharma Shipments Dachser India

Bonded Trucking Company of the Year Shreeji Translogistics

Warehouse Company of the Year- Pharma Shipments S K Logistics

Best Use of Cross-Functional Collaboration and Excellence in Airport Operational Efficiency GMR Hyderabad Air Cargo (GHAC)

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Best-in-Class Logistics Service Excellence Award Freyer International Logistics

3PL Warehousing Company of the Year Logistics Parks India

Contribution towards Indian Logistics Bharat J Thakkar, Zeus Air Services

Emerging Supply Chain Solutions Provider of the YearPharma Shipments Parazelsus India

Air Cargo Handling Agent of the Year- Pharma Shipments Air India SATS Airport Services (AISATS)

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Supply Chain Team of the Year Janssen India (J&J Pharma)

Best-in-Class Employer of the Year and Fastest Growing Freight Forwarder- Pharma Shipments Skyways Air Services

Express Service Provider of the Year- Pharma Shipments V-Xpress

Reefer Transport Company of the Year Mahesh Cargo Movers

Emerging Consulting Partner in Logistics Aviral Consulting

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spotlight

Excellence in End-to-End Supply Chain Planning Logenix International LLC

Excellence in Supply Chain Goodrich Maritime

Cold Chain Warehouse of the Year JWL Cold Storage

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Best Reefer Design of the Year TCI Cold Chain Solutions

Cold Chain Facility of the Year Mumbai Cargo Service Center Cold Chain Solutions

Digital Forwarder of the Year Exportify Technologies

Excellence in Pharma Supply Chain Solutions Spoton Logistics

CargoConnect february 2020 | 95

spotlight

Emerging Warehousing Company of the YearPharma Warehousing Aveny Logistics & Warehousing

Warehouse Developer of the Year Renaissance Indus Infra

Cargo Airline of the Year- Pharma Shipments Turkish Cargo

Best Surface Transportation Company of the Year Spoton Logistics

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Best Air Cargo Terminal Operator- North India Celebi Delhi Cargo Terminal Management India

Perishable & Time Sensitive Cargo Agent of the Year Jet Freight Logistics

Air Cargo Industry Achievement Award Skyways Air Services

Excellence in Pharma Supply Chain Planning Serum Institute of India (SII)

Supply Chain Evangelist of the Year Sandeep Chatterjee, Deloitte India

Temperature-Controlled 3PL of the Year TCI Cold Chain Solutions

CargoConnect february 2020 | 97

ACCD hosts 43rd annual Founders' Day Ball

T

he Air Cargo Club of Delhi (ACCD) hosted yet another glittering and magnificent Annual Ball and celebrated the 43rd Founders day on January 11, 2020 at Hotel Andaz Aerocity, New Delhi. Around 400 people from the air cargo fraternity came together to be a part of the occassion.

The event kicked-off with welcoming the air cargo in-

dustry veterans and their families who were seen holding sparkling glasses of wine and relishing scrumptious cuisines. Later in the evening, c lub members were seen grooving on the tunes of various Indian and International musicians who gave energetic performances. The members also participated in various fun-filled activities, games and lucky draws.

Saudia Group launches logistics services for Saudi airports

U

nder the patronage and presence of His Excellency the Minister of Transport, Saleh Bin Nasser Al-Jasser, Saudi Arabian Airlines (Saudia Group) on December 16, 2019 launched the Saudi Arabian Logistics (SAL) Company, a new division that will provide logistics and ground handling services at Saudi airports.

T he lau nc h was a nnounced in a grand ceremony held in Riyadh and attended

by Saudi Arabia’s Governor of Customs Authority, Ahmad Al-Haqbani; Abdulhadi AlMansouri, President of the General Authority of Civil Aviation; Anef Abanomi, President of Saudi Post; Sami Sindi, Director General of Saudi Arabian Airlines; the Directors of government agencies working at Saudi airports; Chief Executives of the companies and strategic units within the Saudia Group; and cargo and aviation transport experts.

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MCCI & FFFAI focus on India’s trade with neighbours at MCCI Logistics Forum 2019

T

he MCCI Logistics Forum 2019 organised by the Merchant Chamber of Commerce & Industry on December 23, 2019 at Taj Bengal, Kolkata with the theme being ‘Logistics Excellence for Stronger Regional Trade’ emphasised on regular communication between importers of Nepal and

the service providers in India to bring down logistics cost.

Sudip Dey, Vice Chairman, Federation of Freight Forwarders Associations in India (FFFAI) suggested, “There must be regular interactions between the importers of Nepal and Kolkata Service providers to bring down cost of Nepal import. It was only due

to lack of communication that anomalies were happening (eg: port ground rent, penalty

by Railways, etc). KOPT may keep a liaison officer in Nepal for dealing with day to day issues. Border restrictions for transit into Nepal should be done away with and vigilance should be done with the help of risk management and IT.”

Highlighting the importance of Indo-Nepal as well as regional trade, MCCI officials maintained that an efficient logistics and transportation infrastructure would be critical for strengthening India’s trade and economic engagement with its neighboring countries like Bangladesh, Nepal, Bhutan and Myanmar.

DCBA hosts first-ever training under LSC in Delhi

I

n collaboration with Logistics Sector Skill Council (LSC), Delhi Customs Brokers Association (DCBA) in its endeavor of skilling the Exim executives of offices and fields pertaining to Customs Broking business organised an eight-hour long training programme at Delhi Cargo Service Center (DCSC) building on January 19, 2020.

The training session was attended by seventy eight executives as trainees of different CB companies apart from office bearers and EC members of DCBA. The training session was conducted by Ravikanth Yamarthy, COO, LSC; Shyamsundar CK, Director M&S, Denken Global Supply Chain; and Suresh Kuttan, who were the Master Trainers under LSC.

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P S Atree conferred WCO Certificate of Merit’ for 2020

I

n a glittering ceremony organised in New Delhi on the occasion of International Customs Day-2020, on January 27, PS Atree, Managing Director, PS Atree & Company; Vice Chairman, Federation of Freight Forwarders’ Associations in India (FFFAI); and Immediate Past President, Delhi Customs Brokers Association (DCBA) has been felicitated with ‘World Customs Organisation (WCO)

Certificate of Merit’. The Certificate of Merit was handed over by Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, GoI in presence of Dr Ajay Bhushan Pandey, Secretary (Reveunue), GoI; John Joseph, Chairman, CBIC, R K Barthwal, Member Customs, CBIC and many other senior officers of WCO and GoI. This year Atree has been the only recipient of the WCO Award from the private sector.

Allcargo applauded for boosting employability opportunities for youth in the logistics sector

O

n January 20, Sanjay Sethi, Chairman, JNPT while on a visit to Allcargo’s Multi-Skill Development Centre at Bokadvira, Uran, run under Pradhan Mantri Kaushal Kendra (PMKK) in collaboration with JNPT and CIDCO, commended Allcargo Logistics Ltd for boosting the employability opportunities of needy youth in India through skill development programmes and industry training courses related to the logistics sector.

Sethi launched the new batches of Consignment Tracking Executive and Inventory Clerk courses, along with inaugurating two new training labs.

He also distributed certificates to students who have started working after successful completion of the training.

Spoton wins Best Express Logistics Service provider in Express, Logistics & Supply Chain Awards

T

he Express, Logistics & Supply Chain Summit, a leadership focussed meeting designed around on improving supply chain and procurement strategies, recently honoured Spoton with the “Best Express Logistics Service Provider”, “Best Network Optimisation Service Provider” and “Outstanding Digital Transformation in Supply Chain” award, at its twelfth edition conclave in New Delhi.

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appointments

Tigist Eshetu appointed as Regional Director India subcontinent for Ethiopian Airlines

Ethiopian Airlines has appointed Tigist Eshetu as the Regional Director of the Indian subcontinent, effective December 23, 2019, and will be based in Mumbai.

Eshetu’s rich, varied and long-standing experience will be an opportunity towards elevating Ethiopian Airlines’ operations in the Indian subcontinent. Eshetu joined Ethiopian in May 2000 and served the airline in various positions such as operations, cargo, Manager- pricing and Area Manager- Zambia, the position she was currently holding.

Nathan De Valck is the new Head of Product and Network Development at Brussels Airport

Nathan De Valck has been appointed the Head of Product and Network Development at Brussels Airport.

The move is in accordance with the airport’s decision to significantly expand and strengthen its cargo team.

De Valck will be responsible for all business development and key account activities for airlines, forwarders, and shippers as well as for the further development of the various specialisations and products such as pharma, perishables, animal transport, and E-commerce.

Peter Kelly joins Menzies Aviation as VP cargo, Americas

Logistics specialist Menzies Aviation has appointed Peter Kelly as its Vice President of Cargo Americas. Kelly will be responsible for growing the company’s cargo business across Canada, the US and Latin America. Kelly has 27 years of experience of aviation logistics industry. His most recent role was Regional Sales Manager for American Airlines in Texas where he oversaw the sales team and developed strategies to ensure the airline met its cargo revenue goals. Kelly also oversaw cargo handling for Mercury Air Cargo in the US and Canada.

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DHL Express promotes Chee Choong Ng as MD for Hong Kong, Macau

DHL Express, the world’s leading international express service provider, has announced the appointment of Chee Choong Ng as Managing Director of DHL Express Hong Kong and Macau.

With more than 20 years of experience in the logistics industry, Chee Choong will be in charge of spearheading the strategic growth and managing overall operations in Hong Kong and Macau. In his preceding role as Vice President of Operations, Chee Choong has been an integral part of DHL Express’ success in Hong Kong.

Damco names Naomi Landman as new Chief for EMEA

Netherlands-based freight forwarder, Damco, has appointed Naomi Landman as Head of Europe Middle East and Africa (EMEA) and Network Strategy to drive growth in 2020. The appointment comes as the Netherlands-based freight forwarder continues to diversify its service offerings, developing new air cargo solutions, investing in further digitalisation projects, and opening new facilities.

Landman brings two-decades of forwarding experience and air freight expertise in senior management roles, most recently as Managing Director at GEFCO Netherlands.

John Dietrich takes charge as Atlas Air Worldwide CEO

Effective January 1, 2020, John Dietrich has taken over as the Chief Executive Officer of Atlas Air Worldwide. Dietrich replaces William Flynn, who retired from the position after 13-year tenure and took over as the Chairman of the Board.

Dietrich, who is also president of the company since July 2019, previously held the role of Chief Operating Officer and Executive Vice President. Dietrich has over 30 years of experience in the aviation and air cargo industries, including more than 20 years with Atlas Air Worldwide. He has served in his current COO role since 2006.

Chapman Freeborn picks Norris Hiraki as Cargo Sales DirectorNorth America

Chapman Freeborn has appointed Norris Hiraki as Cargo Sales Director for the North American region.

Hiraki will play a crucial role in developing the cargo sales strategy in North America.

Hiraki began his career in logistics over 25 years ago, gaining experience from leadership roles at FedEx and UPS in the US and the Middle East. In 2010, Norris joined UPS Supply Chain Solutions in Dubai, UAE where he headed up sales activity for 21 countries across Turkey, the Middle East, Central Asia and Africa.

Brian Znotins takes up key planning role with American Airlines

Brian Znotins has been named Vice President of Network and Schedule Planning for American Airlines. In this role, Znotins will guide the development and implementation of American’s global network and hub strategy, including all route planning, slot management and long-range planning efforts.

Znotins joins American from WestJet, where he spent the past three years as the airline’s Vice President of Network, Alliances and Corporate Development.

Logistics and Supply Chain

Air Cargo EVENT: Aviation Festival Asia ORGANISED BY: TERRAPINN DATE: February 18 - 19, 2020 WHERE: Suntec Convention & Exhibition

EVENT: 8th Global Logistics Show ORGANISED BY: Infinity Expo DATE: February 20 – 22, 2019 WHERE: Somaiya International

Convention Centre, Bombay GLS is the premier meeting place for the India's Logistics and Supply Chain Sector. In its 4th edition, it brings together 5000 professionals involved in the handling, moving and transportation of goods throughout the supply chain, with proving as an ideal place to meet new contacts and win new business.

To know more visit www.globallogisticsshow.com

EVENT: Breakbulk Asia ORGANISED BY: Hyve Group PLC DATE: March 18 - 19, 2020 WHERE: Shanghai World Expo Exhibition

& Convention Center, Shanghai, China Leading conference and exhibition for project cargo and breakbulk professionals offering an unparalleled opportunity to connect with the industrial project supply chain – shippers and service providers, local and international – who are involved in today’s megaprojects that revolve around China's One Belt, One Road program.

To know more visit www.asia.breakbulk.com

Centre, Singapore Aviation Festival Asia aims to be the gateway for the attendees to the world’s fastest-growing aviation market.

It provides the attendees with the opportunity to meet senior executives in the Asian aviation industry and focuses on the ancillary strategies, price management & distribution for the modern airline along with AI, data-driven technology and the future of aviation.

To know more visit www.terrapinn.com

EVENT: IATA World Cargo Symposium 2020 ORGANISED BY: International Air Transport

Association (IATA)

DATE: March 10 - 12, 2020 WHERE: Hilton Istanbul Bomonti Hotel &

Conference Center, Istanbul, Turkey IATA’s 14th World Cargo Symposium will continue to move the industry from talk to action with this edition. WCS 2020 will feature plenary sessions, specialized tracks, workshops and executive summits, tackling aspects related to Technology & Innovation, Security & Customs, Cargo Operations and Sustainability.

To know more visit www.iata.org

EVENT: 10th India Warehousing

Show

ORGANISED BY: Reed Manch

Exhibitions DATE: June 18 – 20, 2020 WHERE: Pragati Maidan, New Delhi Bringing the future at your doorsteps, the India Warehousing Show brings the industry in its full dimension, gathering all facets of logistics, warehouse infrastructure, material handling, storage, automation and supply chain. The show acts as marketplace and driver of innovation and success, creating an ideal platform, positioning your company to the forefront of success.

To know more visit www.indiawarehousingshow.com

Event: All India Cold Chain Show Date: July 2 - 4, 2020 Venue: India Expo Mart Limited,

Greater Noida, Delhi Organised by: Federation of Cold Storage Associations of India (FCAOI) The Federation of Cold Storage Associations of India (FCAOI) is organising an annual national seminar on cold chain and storage industry.

The show offers ample of business and networking opportunities to industry leaders from across the world.

Alongside the seminar, a dedicated exhibition will take place which will showcase leading companies offering cold chain technologies and the best of products and services.

To know more visit www.aiccs.in

EVENT: Air Cargo Forum 2020 ORGANISED BY: The International Air Cargo

Association (TIACA) and Messe München DATE: November 10 - 12, 2020 WHERE: Miami Beach Convention Center, Miami, Florida, USA The International Air Cargo Association (TIACA) is the only organisation representing all segments of the air freight supply chain. TIACA’s Air Cargo Forum (ACF) is a biennial event bringing together thousands of airfreight decision makers and supply chain operators from across the globe.

To know more visit www.tiaca.org

Corrigendum With reference to Page 38 of the cover story titled ‘Logistics Industry Outlook: Insights and Forecasts’ published in our January'20 edition, the photograph of Rachid Fergati, MD, Indian subcontinent, UPS has been wrongly published. The error is regretted.

104 | CargoConnect february 2020

Avinash Razdan CEO, Cargo Service Center

Build your teams and empower them

J

ourney so far

Born and raised in Kashmir, I am proud of my heritage. Coming from a family of educationists, I credit my success to the values taught by my parents while I was growing up.

My penchant for numbers got me to finance and my 'go-for-it' attitude helped me through various senior assignments in different industries.Though, I have all along been a finance professional, yet I never confined myself only to finance or accounting.

I was always inquisitive about various aspects of a business enterprise like operations, planning, marketing, capacity, optimisation, etc.

I joined Delhi Cargo Service Center as a Chief Financial Officer nine years ago. At the same time, I also took deep interest in business operations of the company and the group. I was captivated by the dynamics of air cargo industry. I took over as Chief Executive Officer in April 2018, and that gave a wider perspective to my responsibilities. It let me further my knowledge and allowed me to integrate everything that I had learned from my past assignments. Doing things like forging and mentoring strong teams, motivating people and achieving targets were all learned along the way. The role comes with its inherent challenges and sometimes it gets lonely at the top, but success comes at its own price.

Major Transformations

Leading a company that has been built on trust, efficiency and has consistently delivered value to its customers, use of information technology in achieving automation and standardisation form its core. I believe, in the last few years, digitisation is a major transformation that has taken place in the industry. When I joined this industry,

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digitisation of business operations was marginal. But now many businesses have transitioned from paper documentation and communications to digitisation in a major way. The trend continues and many businesses in air cargo industry understand its benefits. Undoubtedly, Delhi airport has emerged as the biggest gateway airport of India. When we look at the volume of cargo Delhi airport handles now, and compare it with the past, we realise that we have come a long way. It is heartening to see how Government of India is prioritising to improve airport infrastructure of the country.

Biggest Challenge

In order to build efficiencies and deliver high levels of service to customers, business processes must be continually improved and revamped every now and then. Keeping up the quality of business information and its timeliness is a major challenge in the current scenario. Sustained digitisation and technology adoption are the keys to improve efficiency, productivity and profitability.The rules of the game are constantly changing, and one must keep finger on the pulse.

Hobbies & Interest

Work is my first love and I enjoy it thoroughly. Apart from work I love driving. I am a passionate motorist and I enjoy doing long trips and driving to new places. It all started with riding a bicycle. When I was a kid I would ride long stretches on a bicycle and my parents would get anxious about it.

I am also an avid traveller and I like visiting places of natural beauty.

Mantra for Success

Love what you do. There are a lot of sacrifices to be made when you set out to achieve your dreams. You must work hard and wear many hats. But if you love what you do, it never feels like work and you love it. Build your teams and empower them. I push forward with my goals in mind.

Message for Aspirants

I would like to tell this to the readers and logistics aspirants that digitisation is the future. Please keep the march towards digitisation robust, because it is the way to success. We have come a long way, and nothing can stop us from becoming the world’s best.

Interviewed by Ritika Arora Bhola

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