Cargo Connect January 2019

PAGES 92 inclusive of cover

www.surecommedia.com Postal Registration No.: DL (S)-17/3372/2019-2021 WPP No.: U(S)-81/2016-2018 Posted at Lodi Road HPO, ND on the 4th-5th same month RNI No.: DELENG/2009/31040 Published on the 2nd of the same month

VOL X ISSUE II january 2019 `20

Pharma Logistics: Transforming the Supply Chain

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Driving to Destination through Technology

42

Logistics Industry on Innovation Trail

48

Potentialising West Bengal as a Logistics Hub

54

Contents

Volume X • Issue II • january 2019

Publisher Smiti Suri Principal Correspondent Ritika Arora Bhola Special Correspondent Upamanyu Borah Senior Reporter Smita Kumar

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22 COVER STORY

What future holds for the Indian Logistics Industry?

SPECIAL FEATURE

Pharma Logistics: Transforming the Supply Chain

FEATURE Madhav Thapar

INTERVIEW

S Ramakrishna

Chairman, FFFAI ...........................................64

C V Kumar

CEO. CCI Logistics Ltd ....................................66

Igor Jakonmin Vikas Khatri

FRONTLINE ..............................................6 Logistics Scorecard ............................8

Infrastructure

StartUPs ..............................................58 TECHNOLOGY .........................................60 NEWS ...............................................73-83 APPOINTMENTS .....................................84 EVENTS ............................................85-87 PROFILE .................................................87 UPCOMING EVENTS ................................88

Potentialising West Bengal as a Logistics Hub .........................................................54

Asst Manager Marketing Mehuli Choudhury

Accounts & Administration Nitish Kumar Sr Designer & Visualiser Shaique Ahmad Designer & Visualiser Mayank Bhatnagar

Chief Operations Officer, CargoX ....................68 Founder, Aviral Consulting Pvt Ltd .................70

Logistics Industry on Innovation Trail ...48

Marketing Manager Rahul Arora

Marketing Executive Akash Gupta Vice President – South Asia, C H Robinson ......62

Driving to Destination through Technology .............................................42

Director Ajeet Kumar

PEOPLECONNECT Mahendra Shah

Managing Director, V-Trans (India) Ltd ...........................90

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

CargoConnect is printed, published and owned by Smiti Suri,

and is printed at Compudata Services, 42, Dsidc Shed, Scheme–1, Okhla Industrial Area Complex, Phase–II, New Delhi-110020, and published at 6/31-B, Jangpura–B, New Delhi-110014

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frontline “It’s a ‘gamechanger’. Tuticorin has the potential to become a major industrial hub.

To make the Tuticorin port a mainline port, we have redesigned the development project and now the deepening of the port would be done in less than `500 crore, after which all vessels with draft of 16 meters can call on the port.”

Nitin Gadkari

Union Minister of Road Transport, Highways and Shipping said while flagging off first container mainline vessel from Tuticorin Port

Aviation industry supports 3.5 per cent of global GDP and the industry provides employment to 65.5 million people across the world, points out IATA’s growth projection

Kannur has scripted another chapter in India’s aviation industry and it will pave the way for the overall development of Kerala. The Kannur airport will be a role model for upcoming airports.”

Civil Aviation Minister, Suresh Prabhu expressed while inaugurating Kannur International Airport

“The European Commission took an unfortunate step away from the global standards that are crucial to effectively manage aviation’s climate change impact. It released a draft regulation which foresees using the standards developed for the European Emissions Trading Scheme to the global CORSIA. Alexandre de Juniac

Director General and CEO, IATA informed on the recent decision of the European Commission

ICF will try to make two more Train 18 sets in this financial year and up to 8 in the next financial year depending upon the allotment from Railway Board. That takes the total number of Train 18 sets slated for production to 10.”

Sudhanshu Mani, General Manager, Integral Coach Factory (ICF) commented on the Railway Board’s direction of expediting the manufacturing process of Train 18 sets 6

CargoConnect - JANUARY 2019

“The global airline industry’s net profit to be $35.5 billion in 2019, slightly ahead of the $32.3 billion expected net profit in 2018 (revised down from $33.8 billion forecast in June). Lower oil prices and solid, albeit slower, economic growths (+3.1 per cent) are extending the run of profits in 2019.”

- International Air Transport Association’s recent report forecasted expected net profit of the global airline industry

PORTS TRENDS- During FY18, cargo traffic at major ports in the country was reported at 679.36 million tonnes (MT). In April-August 2018, traffic at major ports increased 5.13 per cent year-on-year to 288.38 million tonnes OPPORTUNITIES- Ministry of Shipping has set a target capacity of over 3,130 MMT by 2020, which would be driven by participation from the private sector. Non-major ports are expected to generate over 50 per cent of this capacity.

COMPETITIVE ADVANTAGE- The Maritime Agenda 2010-20 has a 2020 target of 3,130 MT of port capacity. Special Economic Zones are being developed in proximity to ports.

LOGISTICS SCORECARD

AIR CARGO MARKET DEMAND- Total air cargo at all Indian Airports during 2016-17 and 2017-18 witnessed a growth rate of 10.1% and 12.7% respectively with 3.35 million MT cargo traffic in FY18.

OPPORTUNITIES- The increase in trade volumes due to a growing economy, governments sector specific reforms, the rise of e-commerce and infrastructure investments are all together expected to keep Indian air cargo market on the right track.

INCREASING INVESTMENTS- The government has earmarked Rs 88,000 crore for capital projects at airport covering air cargo facilities also over the next five years.

ROAD INFRASTRUCTURE MARKET FORECAST- Growth in production of commercial vehicles to 894,551 in FY18 at a CAGR of 5.87% during FY 10-18, commands stronger road network in India.

OPPORTUNITIES- The total amount of investments estimated to reach Rs 1.58 trillion (US$2.25 billion) in FY19.

HIGHER INVESTMENTS- The Government of India has decided to invest Rs 7 trillion (US$ 107.82 billion) for construction of new roads and highways over the next five years.

RAIL FREIGHT GROWTH- Freight revenue rose at a CAGR of 9.83% during FY07-FY18 to reach US$ 18.16 billion in 2017-18 while Foreign Direct Investment (FDI) inflows into Railways Related Components from April 2000 to June 2018 stood at US$ 920.21 million.

OPPORTUNITIES- The Government of India is going to come up with a ‘National Rail Plan’ which will enable the country to integrate its rail network with other modes of transport and develop a multi-modal transportation network.

HIGHER INVESTMENTS- In order to develop three new arms of Dedicated Freight Corridor (DFC) in the various regions of the country, Indian government is planning to invest Rs 3,30,000 crores ($50.98 billion).

WAREHOUSING

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DEMAND DRIVER- Following the implementation of GST, warehousing supply has increased to an expected CAGR of 21% for Grade A warehouse stock projections between 2017 and 2021 in the top eight cities of India.

OPPORTUNITIES- The advancements in e-commerce and the need for a shorter turnaround time for delivery led to a sharp increase in the demand for organised warehousing. Further, auto & auto ancillary, chemical and pharmaceutical sectors are also propping demand for warehousing real estate.

SHIFT AND TRENDS- The electronic and white goods segment is expected to be the next big sector to drive the growth in demand for warehousing space.

special feature

Pharma Logistics:

Transforming the Supply Chain

India’s pharmaceutical companies have a unique opportunity to lead global growth for years to come. However, there is a significant gap between the strategic vision and operational realities of the sector. Firms are facing challenges on multiple fronts in their supply chains. They need to overcome these hurdles to unlock their full potential.

Upamanyu Borah

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special feature

I

ndia has emerged as one of the world’s fastest growing pharmaceutical markets over the past decade. The industry saw a growth of around 18 per cent per annum between 2005 and 2015, and now stands at US$30 billion. The generic drug sector expanded at an even faster pace of 22 per cent per annum during the same period and now accounts for 20 per cent share of global exports by volume.

The phenomenal growth is expected to continue in the coming years, with India’s pharmaceutical sector forecast to nearly double to US$55 billion by 2020. The generic drug sector is expected to capture 6 to 7 per cent of the US$760 billion generic drugs market by 2020. With India having the highest number of FDA approved drug manufacturing sites - second only to the US, these numbers seem achievable.

Supply Chain Management From the Ground-up However, while India’s growth trajectory looks promising on the surface, it is evident that there is a significant gap between the strategic vision and operational realities of the sector. Indian pharmaceutical companies are facing a unique set of challenges that are creating significant pressure on them to transform their supply chains.

The landscape has become more complex with interplay of factors that make it a challenging space, even for the well-established players. In addition, observers expect the goods and services tax (GST) regime to influence the sourcing, manufacturing, and distribution footprint, with particular impact on transportation and warehousing. Products have proliferated exponentially and become more complex, driven by patients’ growing therapeutic needs.

Fragmentation at every stage of the value chain is a direct hit on supply chain efficiency. Quality issues and price pressures have spiraled across the value chain, triggered by more regulatory scrutiny. Infrastructure, although better than in the past, is still a concern.

Current State Facing competition from domestic and multinational players, Indian pharma companies have started to diversify and are taking bold steps to strengthen their portfolio. A few initiatives include developing capabilities to manufacture more differentiated and complex generics, investing in innovators, and building capacity to manufacture biosimilars.

A key challenge Indian organisations face is that the business differentiator is shifting from being reverse-engineering experts to having improved operational performance parameters such as service level and cost to deliver. Competition is fierce. Pressure to bring down the cost of drugs is an additional element— resulting in the need to re-examine the supply chain. Most Indian companies have successfully figured out how to reverse engineer and manufacture generic drugs but have paid little or no attention to operational aspects.Three key performance indicators that organisations rely on to gauge their overall supply chain health and readiness for growth. (Refer to box on page 12)

JANUARY 2019 - CargoConnect

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special feature However, the industry average is 15 percentage points higher than the global best in class, which indicates suboptimal routes, high transportation costs, and issues with storage, specifically for high-risk and conditioned products. On average, manufacturing conversion costs account for nearly 75 per cent of total supply chain cost, with distribution responsible for the remainder.

Key SCM Barriers Quality and regulatory issues: Quality issues have deepened and widened over time and an increasing number of these are occurring across the value chain. These range from issues at the procurement level over quality of raw materials, as well as at the manufacturing stage where plant shutdowns and inability to get necessary certifications have created unused capacity. Lack of quality control at the R&D stage has also led to more failures of trial batches, causing delays in product launches.

On the question about the suggestive measures or policies taken into consideration to tackle post-market issues such as complaints, rejects, and product failures that have a direct impact on storage, handling, and cost to discard rejected products, Surendra Deodhar, Vice President, Head Materials Management at Reliance Life Sciences expressed, “Reverse cold chain is always difficult to handle, since infrastructure such as cold rooms, packaging material as well as trained staff is rarely available. Sensitising associates in the market, training our logistics service providers and extra precaution by quality in assessing fitness of return goods are useful.”

Product proliferation: Indian pharmaceutical companies are expanding their portfolio at a fast pace. This has been driven in part by new product development, dosage forms, enhanced formulations, and changes in packaging and labelling to cater to new markets.

12 CargoConnect - JANUARY 2019

Customer service Best-in-class pharma companies in India operate at a 95 per cent service level, which is 3 percentage points lower than the best-in-class Indian fast-moving consumer goods (FMCG) companies and 4.5 points lower than best-in-class global pharma companies.

While it would be challenging for India’s pharma companies to meet these service levels in the near term, the industry average is almost 7 points lower than best in class, indicating potential headroom for integrating the supply chain over the medium to long term.

Inventory levels Fragmentation has resulted in a large number of stocking locations. India has a multitier distribution network through clearing and forwarding agents and stockists. Looking at the pharma industry as a whole, the average inventory level is 98 days higher than India’s best in class—a huge difference. A comparison of best-in-class pharma in India against best-in-class FMCG firms globally points to an additional difference of 80 days of inventory, reinforcing the clear need for better planning and inventory management.

Supply chain costs Supply chain costs depend heavily on the type of product.

Specialised cold chain requirements for vaccines and other complex formulations can significantly increase supply chain cost. India’s bestin-class pharma is 8 percentage points higher than both the best-in-class global FMCG firms and best-in-class global pharma.

Increased competition, which fuels the need to constantly innovate and varying regulatory requirements across multiple markets are the other key driving factors.

This fast-paced product proliferation has several implications for the supply chain, including higher manufacturing and distribution costs, more inventory, and a larger supplier base.

Supply Chain fragmentation: India’s supply chain network is very complex making it even tougher to manage properly. The sheer number of players at each stage with varying requirements, lack of clear categorisation, lack of proximity to the manufacturer and differing degrees of quality standards are clear challenges.

As a result, production schedule changes are becoming more common because of poor supplier service levels, further affecting the ability of the supply chain to make and deliver on time.

Pradyumn Singh, Co-founder and CEO, Pharmarack Technologies Pvt Ltd reveals, “We could easily gauge the inefficiency in the supply chain. On one side, there is five per cent return of goods due to expiry and other reasons while on the other side, estimates through sources say that there is a parallel counterfeit medicine market which amounts to 25 per cent of the overall Indian domestic pharma market.”

Infrastructure gaps: In terms of storage, the lack of a robust cold chain network to support the supply chain represents a significant gap in India’s pharma infrastructure. Drugs have varying storage requirements to ensure that potency is maintained throughout their shelf life. Moving specialty products and vaccines requires continuous monitoring at all stages of the value chain. However, companies are still unable to ensure a product is stored at the required conditions throughout its transition.

special feature “Visibility of excess material, helps trigger re-deployment where it is required; shortages may directly affect someone’s life; cold chain breaks are even more life threatening.”

Surendra Deodhar

VP, Head - Materials Management, Reliance Life Sciences

How to change the tune?

Indian companies need to design a supply chain that is more adaptive, flexible and responsive to the changes. This can be done by focusing their efforts on the below dimensions: Enabling efficiency: India’s pharma supply chain is crippled with end-to-end complexity. Reducing these complexities can unleash an array of benefits. Efforts should be focused on these top three priorities for immediate, actionable results:

 Consolidating and optimising the network as a whole, supporting seamless communications across suppliers, manufacturers, distributors, and customers.  Tailoring visibility of supply chains, segmenting consumer needs, product types, product attributes, and markets. This will be crucial to improve efficiency.  Handling the portfolio’s complexity both upstream (R&D portfolio proliferation) and downstream (product SKU proliferation), which will optimise capacity and resources upstream and kill underperforming SKUs, resulting in immediate cost cutting.

Facilitating agility and visibility: In addition to changing patient’s needs and shifting disease patterns, the global market is experiencing more frequent drug shortages and communicable disease outbreaks. It is vital that pharma companies are ready to react to such market changes if they want to be best in class performers.

Ensuring that the supply chain is integrated with Sales and Operations Planning (S&OP) processes and commercial strategies, will enable pharmaceutical companies to move from a ‘planning for convenience’ model to a ‘planning for market’ model.

Companies see a 10 to 20 per cent increase in service levels (from the current average of about 60 per cent) simply by streamlining their S&OP processes, which typically leads to a 1 to 2 per cent increase in the top-line. Deodhar comments, “End-to-end visibility is critical for any supply chain. It assumes a different dimension in Pharma, since the product directly affects human life.

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“It is paramount to have a good QMS process to monitor the complaints, rejects and product failures and ensure necessary corrective and preventive actions plans.”

Rajasekhara Reddy

VP - Global Demand Planning & Logistics, Glenmark Pharmaceuticals

Visibility of excess material, helps trigger re-deployment where it is required; shortages may directly affect someone’s life; cold chain breaks are even more life threatening. Also critical is the threat of spurious drugs entering the formal supply chain or even diversion of drugs outside formal supply chain.”

Rajasekhara Reddy, Vice President - Global Demand Planning and Logistics, Glenmark Pharmaceuticals, with regard to deriving benefits as a pharma company professional, ratifies, “Robust Quality and Compliance system is nonnegotiable. This is paramount for implementation of GDP in Pharma Supply Chain. End-to-end real-time visibility is the new game in town. This will become the new game changer for a service provider and also a key USP.” Enhancing quality and compliance system: There is an immediate need for quality processes to be tightened. It is imperative to have a strong quality organisation with visibility and oversight across all practices in the supply chain, both internal and external.

The following five internal initiatives can have a sizeable impact on quality systems:

 Developing understandable, executable and compliant standard operating procedures, supported by regular compliance training.  Enforcing a ‘quality culture’ from senior leadership, targeting the message across the organisation with supporting documentation of practices that can be followed by all.  Establishing data integrity organisation with data integrity officer lead.  Conducting routine internal audits by both global and local audit and compliance committees.  Implementing technologically advanced systems across network to reduce manual error: lab information management systems and document management systems.

Adopting technology: The rapid adoption of information and communication technology and automatic identification technology, not just in pharma logistics but across the entire supply chain enhances the effectiveness and efficiency of

special feature “In this post-GST era, the pharma industry will have to realign their entire supply chain and work towards rationalisation of the CFA model.”

Pradyumn Singh

“Delivery models such as one to three hour delivery, same day deliveries, etc. is forcing pharma distributors and pharmacies to adopt technology as human decision-making leads to significant loss of business.”

Nishith Rastogi

Co-founder & CEO, Pharmarack Technologies Pvt Ltd

Founder, Locus.Sh

the existing systems. Various technological advancements are being deployed to reduce inventories and augment order fulfilment rates, efficiently manage in house inventory, effectively handle customer sales projections, lessen shipment lead time and several other crucial functions. For instance,

is the use of Radio-Frequency Identification (RFID) which uses electromagnetic fields to automatically identify and track tags attached to objects. The tags contain electronically stored information. The use of RFID is efficient when it comes to quick turnaround time for perishable products.

 Companies can achieve significant operational efficiency with more effective implementation and use of ERP systems.  Companies with effective automation can streamline the work flows with fewer handovers and end-to-end transparency on costs and business value.  With rapid growth in the industry, pharma companies can streamline distribution and reduce lost revenue as a result of damaged products and recalls by using tracking technologies.

Setting the standards, Singh asserts, “At the point of care (POC) level, we have successfully done automations for specific operations through our machine learning tools and are closely working for IoT deployment. There had been many instances where doctors, clinics and hospitals were able to source lifesaving and speciality drugs through the Pharmarack platform within hours.”

Nishith Rastogi, Founder, Locus.Sh - one of the world’s leading logistics automation companies, agrees, “Technology remains one of the most important areas for pharma companies to focus on. Leaders admit that an immediate result is greater transparency, which leads to better decision making. Technology can be used to integrate functions across the network, increase visibility of products across the value chain and automate processes to improve the supply chain’s responsiveness and reliability.”

Other Relevant Factors Optimise and eliminate bottlenecks arising or existing in the pharma supply chain Bottlenecks are typical logistics issues, which are eliminated by engaging with trusted Logistics Service Providers who specialise in cold chain.

Deodhar shares, “Internal bottleneck of uneven flow of FG dispatches is tackled – partly – by better scheduling outbound deliveries and partly by generating higher capacity ‘on demand’. Most of our India’s cold chain products require cold chain management market is fragmented throughout the life of the drug. Validated itself with more than passive shippers are deployed for shipment.

3,500 companies. Most Each shipper is tracked to ensure delivery are in dire need of within the validated time frame. Apart both connectivity and from traditional techniques, we are also technology. These gaps in the process of implementing barcode are not only a hurdle based Track and Trace solution. Further, to the sector’s growth, vigilant field force and associates keep but also pose a threat providing feedback.” to patients who receive

Anjani Mandal, Co-founder and CEO, 4TiGO - an online freight exchange facilitator for truckers which offer numerous services such as live monitoring and tracking, application-level integration with partners for cashless purchase of diesel and electronic toll, enlightens, “One widely used form of technology in the pharma industry is automatic identification technology which is the term used to describe the direct entry of data or information in the computer system, poorly handled drugs.

Along similar lines, Reddy suggests, “It programmable logic controllers or any is imperative to review the supply chains microprocessor-controlled device without end-to-end on a regular basis and audit them to ensure operating a keyboard. This technology displays transparency that they continue to meet the expectations and are in the and ensures safety of information. Another form of technology

16 CargoConnect - JANUARY 2019

special feature “Under GST, most of the pharma companies are planning for mega storage facilities at strategically located geographies near the market.”

“Our core idea is to use technology to overcome the constraints to improvement due to the fragmented nature of the industry and the lack of transparency of the road transport ecosystem to eliminate inefficiencies.”

Anjani Mandal

Co-founder & CEO, 4TiGO

Dinesh Agarwal

Executive Director, Khaitan & Co

highest standards. An action plan arising out of these audits becomes quite important for the pharma companies to eliminate the bottlenecks.”

etc., is forcing pharma distributors and pharmacies to adopt technology as human decision-making leads to significant loss of business.”

Meanwhile, explaining how Pharmarack helps to get rid of these inefficiencies and bottlenecks, Singh says, “Our platform works across supply chain right from companies, carrying and forwarding agents (CFAs), distributors, retailers and hospitals. Apart from increase in topline for distributors there had been a significant percentage of cost reduction.”

Mandal informs, “Our core idea is to use technology to overcome the constraints to improvement due to the fragmented nature of the industry and the lack of transparency of the road transport ecosystem to eliminate inefficiencies.

The challenge was to realise this functionality with the ease of use and simplicity that is essential for its adoption in this segment. We have used a combination of 14 different streams of technology to create an intuitive user-interface so that a truck driver, anywhere in India, can find a load, close the deal and be on his way, all within three clicks.”

India’s pharma companies face four supply chain challenges Major supply chain challenges

(% of executives who cite the challenge as “extremely relevant”) Quality and 54% regulatory issues Product 28% proliferation Supply chain 26% fragmentation Infrastructure 12% gaps Citing the example of one of its clients, he informs, “One of India’s large pharma companies did a digital launch for one of its key seasonal products (new variant). Despite slowdown due to GST, within 60 days there was 3 per cent additional uptick in sales apart from its organic growth.”

In times of GST The goods and services tax (GST) regime has influenced the sourcing, manufacturing and distribution footprint, with particular impact of transportation and warehousing. Dinesh Agarwal, Executive Director of Khaitan & Co - a renowned law firm, views, “With the advent of GST, we believe that pharma companies will remodel their storage and distribution centres. Earlier, they used to have state-wise branch office/ forwarding and commission agents to take advantage of zero tax on consignment sale/ branch transfer. Now, such models don’t offer any tax advantage, rather state-wise distribution centres brings logistic inefficiency and inventory load. Under GST, most of the pharma companies are planning for mega storage facilities at strategically located geographies near the market. Automated storage and distribution centres will add to just-in-time delivery model, reducing inventory and financial losses due to expiry of medicines.”

Enhancing delivery Like any other distribution heavy business, the consumer being a part of the supply chain is now impacting the decisionmaking process in pharma logistics. Rising competition is making pharmacy and end-customer service the most critical piece for the entire supply chain. Rastogi says, “We believe last mile deliveries to retailers and customers is being disrupted because of technologies such as Locus. Delivery models such as one to three hour delivery, same day deliveries,

Singh says that GST will help in significant reduction in cost of supply-chain/ distribution, long working capital cycle.

Instead of having multiple, state-level depots, now companies may move towards the hub & spoke model to reach out on a pan-India level. “A maximum of seven hubs would be required.

However, it is important to have micro level information real – demand to build intelligence and data science around it for better planning and forecasting. For instance, based on our platform intelligence, beyond 40-45 miles of a metro

A.T. Kearney joint study with the Organisation of Pharmaceutical Producers of India and the Indian Pharmaceutical Association

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special feature “If your product is made available through a wholesaler or distributor who looks after the “final mile”, you should make sure that they are delivering it to the right place at the right time and in the right condition.”

“Drug-makers need to make their supply-chains efficient by becoming customer-driven in replenishing stock, as opposed to merely pushing month-end stocks into the channel.”

Muralidharan Nair

Mark Lawrence

Partner, Ernst & Young

Operations and Service Director, Collect+

city there are 15-20 per cent stock-outs compared to 3-4 per cent within metros and it becomes doubly worse in case of specialty drugs.”

month-end stocks into the channel,” he says, giving insights from a recent E&Y study jointly done with the Organisation of Pharmaceutical Producers of India.

According to him, this kind of insights will help pharma companies to strategise better on eliminating bottlenecks and apply them on improving companies’ performance.

In the current state, visibility of the post-CFA supply chain is limited, and is traditionally through the visits of the sales force to stockists/retailers as well as through the monthly stock and sale statements of stockists.” And because of this opacity in the chain, pharma companies rely on primary sales to stockists as a metric for measurement of performance, the study observes.

He further recommends, “In this post-GST era, the pharma industry will have to realign their entire supply chain and work towards rationalisation of the CFA model. With easy movement of goods inter-state due to input credit, interstate logistics will be a flourishing business, especially for the ones who are pharmaIn this post-GST era, compliant ready.”

Revamping the Last Mile Distribution of pharma consignments The last mile represents the final, and most tangible, promise of the contract between seller and shopper. If anything goes wrong in that final stretch, that is when they get upset and the brand is damaged. Retailers should try and put ourselves in the shoes of the customer by regularly mystery shopping their clients and seeing if the last mile promise is being delivered.

the pharma industry will have to realign their entire supply chain and work towards rationalisation of the CFA model. With easy movement of goods interstate due to input credit, inter-state logistics will be a flourishing business.

“Navigating through a fragmented segment, dotted with unorganised independent units and inadequate information infrastructure, drug-makers are faced with uncertainty regarding stock movement in the channels beyond the CFA (carrying and forwarding agent) points. And this results in instances of non-availability of medicines or products at the retailer, translating into loss of sales for the company,” points out Muralidharan Nair, Partner with Ernst & Young.

“Drug companies register losses when their representatives are unable to service the shortage of medicine-stocks at a chemist fast enough, he explains. In fact, drug-makers need to make their supply-chains efficient by becoming customerdriven in replenishing stock, as opposed to merely pushing

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Mark Lawrence, Operations and Service Director at Collect+ - UK’s largest independent store-based delivery and returns service, suggests, “If you care about your customers and brand, you should monitor the final mile even if you do not have direct responsibility for it. If your product is made available through a wholesaler or distributor who looks after the “final mile”, you should make sure that they are delivering it to the right place at the right time and in the right condition.

Brands like Amazon are famous for giving the customer choice and flexibility in their last mile, and other retailers must pay attention. Consumers want it all and they want it now, but they don’t appreciate the actual cost of the bespoke option. When retailers pass the costs of their tailored final mile solutions onto the shopper, they do not enjoy stellar adoption. Free delivery is still a huge lure at the checkout.”

Summing Up It is clear that the outmoded ways of logistics will be redundant in the future. Companies will have to devise logistics strategies which are closely aligned with their manufacturing and commercial strategies. Thus, be it temperature control, security or regulatory compliance, strategic supply chain management including logistics, with the aid of technology, is pivotal to tackle important issues of the pharma industry. CC

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Outlook 2019

What future holds for the Indian Logistics Industry?

By Ritika Arora Bhola

22 CargoConnect - JANUARY 2019

Outlook 2019

T Air Cargo sector: Soaring high Can Indian air cargo market become Global Air Cargo destination?

Tackling the challenges Curating a dedicated Air Cargo Policy Ground Handling: key to improve performance of Air Cargo Indian Logistics Industry: A Sunshine Sector Government’s Initiatives Prospects Pharma Zone: flying Medical Cargo matters E-commerce Logistics: driving the Change Future of E-commerce Waterways: India’s Maritime March Ocean Shipping - What’s in the Range?

Indian Road Transport Industry: Adapting digitisation Transporters Expectations from Government Leading lines

he Indian logistics sector is truly on a big growth tide. According to the domestic rating agency, ICRA, Indian logistics sector is expected to grow at a rate 8-10 per cent over the medium term.

This is an improvement over the compound annual growth rate (CAGR) of 7.8 per cent at which the industry grew during the last five years.

The logistics industry of India is currently estimated to be around US$ 160 billion. With implementation of GST, the sector is expected to benefit and touch US$ 215 billion over the next two years, as per the Economic Survey 2017-18. Also, according to the Global Ranking of the World Bank’s 2016 Logistics Performance Index, India jumped to 35th rank in 2016 from 54th rank in 2014 in terms of overall logistics performance. The report also showed that India’s logistics sector has improved its performance on all the six parameters used in the ranking. This clearly indicates the growth of the sector.

Outlook 2019 focuses on the progress and major developments that the industry and related sectors have seen in the past few years and what the industry experts predict for the future.

Air Cargo Sector: Soaring high No doubt, Indian air cargo sector has seen an unprecedented growth in the last few years. According to the latest report by CRISIL, India’s air cargo segment has grown by 14-15 per cent in fiscal year 2018, up from 12 per cent growth the previous year. The sector is further expected to expand by double digits over the next five years in terms of both domestic and international volumes with the support of enhanced connectivity, improved infrastructure and beneficial regulatory environment. The Indian government has always been very supportive and has over the years, taken various initiatives to boost the air cargo sector. Firstly, recent National Civil Aviation Policy has offered major thrust with an aim to boost the air cargo business, especially against a backdrop of rising E-commerce activities and exports. Secondly, the setting up of Air Cargo Logistics Promotion Board (ACLPB) by the Civil Aviation Ministry was a major step to ensure efficiency, reduce cost and improve interministerial coordination for growth. Thirdly, whopping investments in infrastructure and technology by the government authorities is commendable.

JANUARY 2019 - CargoConnect

23

Outlook 2019 Despite major developments, few obstacles like inadequate infrastructure, high logistics cost, unskilled manpower, could come in between India’s dream of becoming a Global Air Cargo Hub. But, logistics experts believe that India can certainly overcome these obstacles in the coming years as they consider the sector to be on a high growth trajectory, paving the way for the Indian air cargo market to become global air cargo destination.

Can Indian air cargo market become Global Air Cargo destination?

Considering the above, Sanjiv Edward, CCO, Delhi International Airport Private Limited (DIAL), expresses that the air cargo market in India has a huge potential to become a Global Hub not only because of its geographical location, especially Delhi, but also the transformation, which Indian Air Cargo industry has witnessed in the past few years.

Edward jots down several positive developments and initiatives taken in the last few years:  “Government of India is at the verge of rolling out National Air Cargo Policy, which is expected to transform the Indian air cargo industry.  The dwell time in practice has come down from 72 hours to 48 hours.  A large percentage of the domestic growth has been witnessed due to the massive growth of E-commerce industry.  A new market is opening up for the Indian exporters especially in UAE, Africa and South America.  Large numbers of manufacturing sectors are now moving to South East Asia. Government initiative of ‘Make in India’ programme is paving the way for attracting such manufacturing shifts.  Airlines companies are making huge investments in procuring aircrafts. At present, around 600 aircraft fly in India doing close to 2000 flights a day. Indigo alone does 1000 flights, i.e.

2000 flights with a capacity of 3000 tonnes, which works to around 6000-8000 tonnes belly capacity per day connecting 40-50 airports in the country. Approximately, 60 per cent of the domestic belly air cargo has an under-load. If we use that, there is a lot of potential.  The emergence of the pharmaceutical industry is the major addition to the Indian export in air cargo market India’s pharma exports grew to $17.27 billion in 2017-18 and market studies reveal that it is expected to grow $55 billion by 2020-21.

Beyond pharma, India ranks second in fruits and vegetable production in the world, after China.

Further, Edward shares that IGI Airport is handling country’s highest air cargo volume to the tune of One Lakhs MT annually and is now poised to become an Air Cargo Hub

24 CargoConnect - JANUARY 2019

of the region. He continues, “Over the years, DIAL Cargo has undertaken several initiatives and projects to improve infrastructure capacity as well as to bring efficiency in handling processes by deploying best practices in line with several leading airports of the world.”

David Oxley, Senior Economist, International Air Transport Association (IATA) puts down his viewpoint, “As with the passenger side of business, we see plenty of potential for India to play an increasingly important role in the global air cargo market in the future. This is linked in part to India’s increasing expertise in pharmaceutical product production, which is an important area for air freight. To put the size of the Indian freight market into context, the total cargo tonnage flown from India crossed the one million tonne threshold in 2017, with a strong, double-digit growth rate of 16.9 per cent.

Meanwhile, India has two airports ranked in the global top 10 fastest growing in 2017, namely Mumbai and Chennai. These two airports recorded very strong growth of 18.1 per cent and 17.2 per cent, respectively in 2017. In terms of global rankings, Delhi and Mumbai appear in the list of the top 50 airports for freight handled respectively.”

With an unshakeable belief that India will never achieve its true growth story until the entire industry works collectively, Ramesh Mamidala, air cargo expert and CEO, Celebi Delhi Cargo Terminal Management India Private Limited comments, “As the industry knows well, the biggest cargo airports in the world have become so, on the back of growth of transshipment cargo. The right ingredients for such growth are both infrastructure and anchor airlines. Key airports such as Delhi have just started working on these factors and these efforts in a few years will lead to some of our large airports becoming global level air freight transshipment hubs.”

Tackling the challenges Regardless of tremendous growth and positive outcomes in the air cargo sector, there are few obstacles which could come in between India’s dream of becoming Global Air Cargo Hub. Stressing on the same, Ram Menen, Independent Director, Expofreight states, “The biggest obstacle is the lack of common policies across all sectors of transportation and logistics within India. Border control processes are still tedious and time consuming.”

Edward insists, “India seemingly has the potential to become a global Air Cargo Hub. The rapid growth of Domestic and International trade, a huge consumer base of more than 1.3 billion will augur well for the cargo industry. However, India has not been able to realise this potential due to various reasons. The major areas of concern are listed below:-

Outlook 2019 “It has rightly been said that air cargo will be a preferred mode of transport, if we can collaborate to keep the ‘Time and Cost’ low for transportation. Hence, we should focus on improving infrastructure, process and speed-up the digitisation process.”

“We forecast industry-wide freight tonne kilometres (FTKs) to grow by 4.9 per cent on average each year between 2018 and 2022, supported by a strong economic and trade backdrop than we saw over much of the previous five year period.”

Sanjiv Edward

David Oxley

CCO, Delhi International Airport Pvt Ltd (DIAL)

 Inadequate infrastructure in terms of warehouses, dedicated cargo freighter, an efficient supply chain and feeder services and unavailability of proper equipment, etc.  Today digitisation is crucial for efficient cargo movement across the globe. The Indian Air Cargo industry is catching up to that level of technologically advancement. The issues of data consistency, data quality and integration issues within the supply chain remain a challenge.

He adds, “DIAL has already started its journey in making India a preferred air cargo hub. It has taken several initiatives to address these key concerns.” Some initiatives include:  Creating 2.0 lacs sq.ft. additional on-airport warehousing facility.  Implementation of 100 per cent e-airfreight and Air Cargo Handling System.  Mobile cargo app to track the status of booked cargo.  Dedicated Transshipment Excellence Centre (TEC) for an efficient handling of transshipment cargo at airside.

Curating a dedicated Air Cargo Policy Air cargo veterans feel that dedicated air cargo policy for air freight sector, if successfully introduced and implemented by the Ministry of Civil Aviation, can resolve the above mentioned challenges and can also help India to lower its logistics cost and make Indian products globally competitive as low logistic cost, speed of movement of cargo and the cost of moving them is critical for any country to succeed in the global market.

Menen articulates, “Ideally, the cost of logistics as a percentage to GDP should be between 8-9 per cent, however; in India it tends to be in excess of 10 per cent. Most of the costs are generally incurred because of archaic processes and bureaucratic hurdles. The more the regulatory requirements and, the more the touch point, in the process the higher the cost. India has come a long way in process improvement in the physical operations however, cost of bureaucracy and a lot of manual processes still exist. An Air cargo policy that

26 CargoConnect - JANUARY 2019

Senior Economist, International Air Transport Association (IATA)

embraces digitalisation as a basic fabric of logistics will help in improving the time and costs incurred thereby, speeding up the processes within the supply chain. This would make India more competitive on the global arena.”

Advising on the solutions, industry veteran, Tushar K Jani, Chairman, Cargo Service Center India Private Limited asserts, “Logistics cost could be lowered down only by increasing business scale and the policy has nothing to do about it. A policy should be enabling, catalysing and makes processes simple with creating an environment in which better infrastructure can be built. An enabling policy excites entrepreneurs to invest more in business activities which in turn make business scale bigger. Businesses often fail when the government at center tries to get involved in business activities. The instance with Air India is an evidence of that.

When Prime Minister Narendra Modi was the Chief Minister of Gujarat, he had made a statement, ‘Government has no business to be in business.’ I completely support and believe that businesses are only for entrepreneurs and government should not interfere. In the past, air cargo was the last in priority order of Ministry of Civil Aviation (MoCA), however, now the situation is changing and the appointment of an Additional Secretary rank officer as Economic Adviser in MoCA to look after the air cargo business shows, currently, the wind is blowing in a different direction.”

While Bharat Thakkar, Co-founder and Joint Managing Director, Zeus Air Services Pvt Ltd stresses, “As a first step, all systems must be process driven, and with no human intervention. All stakeholders will become accountable including Nodal agency and the next step should be to restrict the transaction, achieve reduction thereafter. Having said that, first impression of a country is its airport and any cargo facility is its economic strength. It’s time we stop expecting everything from our government. Private Public Partnership (PPP) and new liberal changes in Management and Development Agreement (OMDA) will make it profitable for private players and with world-class facilities being

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Outlook 2019 “Select airports such as Delhi that have been natural choice for several domestic E-commerce logistics companies and as the airport operators have invested in expanding and improving the infrastructure/ service levels, these airports will grow more than others.”

“An Air cargo policy that embraces digitalisation as a basic fabric of logistics will help in improving the time and costs incurred thereby speeding up the processes within the supply chain. This would make India more competitive on the global arena.”

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Ram Menen

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provided, i.e. Pharma /Perishable Terminals users will have to pay for the facility at the same time. While City Ticket Officer’s (CTO) must not keep revising their tariff every year, they should not be allowed introduce new charges as admin charges via non Airports Economic Regulatory Authority (AERA) route.”

Aims and Objectives of A dedicated Air Cargo Policy to lower down logistics cost and to make Indian products globally competitive:  India to become the Top 5 global Air freight markets by 2025  Double air cargo handled from about 3.36 million tonnes in 2017-18 to 6.5 million tonnes by 2022-23 and to 10 million tonnes by 2027-28  All major airports to have Cargo Village and provisions for multi-model connectivity  Every new airport to have Dedicated Transit Cargo Handling facility at airside  To incentivise more investments, all such infra-development for air cargo, including IT services, should be given tax holiday  Debottleneck freight corridors enable free truck movements (24 X 7 movement for Air Cargo Trucks, exemption from traffic control)  Promote incoming & outgoing non-scheduled freighter operations at the airports. Allocate slots each hour at major airports for freighters  Provide Infrastructure Industry Status to Air Cargo sector Ground Handling: key to improve performance of Air Cargo Ground Handling activities including loading and unloading of cargo, storage facilities, etc., have to be efficient in order to sustain in the market. As per reports, Indian ground handling services market grew at a positive CAGR of around 11 per cent during FY’2013 – FY’2018. Recently, technological advancement in Ground Support Equipment made the ground handling process more efficient and affected the market positively. New airlines entering the Indian aviation space also increased the demand for ground handling services at the airports in the country and contributed to the growth of the ground handling

28 CargoConnect - JANUARY 2019

Independent Director, Expofreight

services market in India. Various positive developments by the government in this sector are also commendable.

Talking about the recent initiatives or policies undertaken for the development of ground handling in India by the government or private authorities, Mamidala explains, “Ground handling in the country has progressed substantially over last decade. Privatisation in major airports and investment by the Government in Government operated airports progressively is leading to better infrastructure and service levels across several large airports in the country.”

He continues, “As far as cargo industry is concerned, the country experienced some very important regulatory changes, over last two years that are responsible for serious reduction in dwell times across all the airports in the country for international cargo. The country now has an implemented aviation policy that clearly and objectively describes policy, infrastructure and process changes for cargo handling which are being rolled out as envisioned in the policy.”

Elaborating on the ground handling aspects as per National Civil Aviation Policy 2016, Mamidala shares, “The Ministry of Civil Aviation has come up with a new regulation for ground handling services stating that all domestic scheduled airline operators and scheduled helicopter operators would be allowed to do self-handling at airports including Civil Enclaves. This regulation also states that all ground handling services shall be provided only through the regular employees and hiring of employees through contractor or manpower supplier shall not be permitted. Further, the government is soon expected to come out with an Air Cargo Policy which will ensure sustainable growth of the aviation sector and will in turn boost the trade and economy of the country.All the above initiatives are extremely positive and have raised the hopes for all the stakeholders.”

Indian Logistics Industry: A Sunshine sector Indian logistics Industry has truly grown by leaps and bounds in the last few years. The implementation of

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Outlook 2019 “A policy should be enabling, catalysing and makes processes simple with creating an environment in which better infrastructure can be built. An enabling policy excites entrepreneurs to invest more in business activities which in turn makes business scale bigger.”

“PPP and new liberal changes in OMDA will make it profitable for private players and with world-class facilities being provided, i.e. Pharma /Perishable Terminals users will have to pay for the facility at the same time.”

Tushar K Jani

Bharat Thakkar

Chairman, Cargo Service Center India Private Limited

policy reforms like GST has created a profound impact on the logistics sector. More and more corporates in this sector are consolidating their operations and locating closer to consumption hubs, thereby driving demand for larger warehouses. Jasmine Singh, Senior Executive Director – Advisory & Transaction Services, CBRE India informs, “As per CBRE findings, transaction activity continued to gain strength in H1 2018 as close to 10 million sq ft of space was leased across seven cities, an increase of about 45 per cent compared with H1 2017. Leasing activity was primarily driven by consolidation and expansion initiatives of firms belonging to sectors such as E-commerce, 3PL, retail, and engineering and manufacturing, which together accounted for more than 75 per cent of the leasing reported during the review period.”

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Government’s Initiatives Despite tremendous growth, the industry is facing challenges such as high cost of logistics impacting competitiveness in domestic and global market, underdeveloped material handling infrastructure, fragmented warehousing and lack of seamless movement of goods across modes, among others.

Focusing on the same, Singh highlights, “The Indian government has undertaken various policy initiatives to propel the sector. The implementation of GST was a game-changer for the sector as it has helped remove interstate checkpoints and reduce the movement time of cargo, thereby reducing sources of capital. The grant of infrastructure status to the logistics and warehousing sector has also led to increased investor interest as it has helped developers gain access to infrastructure lending at easier terms and with enhanced limits. Furthermore, in a major boost to the logistics sector, the government has set up the National Investment and Infrastructure Fund (NIIF) in partnership with certain domestic and international investors as a quasi-sovereign wealth fund with a corpus of INR 0.4 trillion.”

Apart from the above mentioned, other initiatives such as the creation of a separate Logistics Department, Make in India and relaxation of FDI norms have further created a positive impact on investment sentiment in the country, leading to heightened business activity across the logistics sector. Also, govt’s proposal to develop 35 multimodal logistics parks (MMLPs) in the country will ease freight movement and reduce transport costs will spur further growth in the sector. Another step in this direction has been the recent initiative of increasing the load capacity of heavy veihicles by 20-25 per cent, which is now at par with global standards. This revision by the

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Outlook 2019 “Leasing activity was primarily driven by consolidation and expansion initiatives of firms belonging to sectors such as E-commerce, 3PL, retail, engineering and manufacturing, which together accounted for more than 75 per cent of the leasing during the review period.”

“Medicine spending in India is expected to increase at 9-12 per cent CAGR between 2018-22 to US$ 26-30 billion, driven by increasing consumer spending, rapid urbanisation, and raising healthcare insurance among others.”

Jasmine Singh

D D Reddy

Senior Executive Director – Advisor y & Transaction Services, CBRE India

Transport Ministry is likely to reduce logistics costs by two per cent and was done after considering the advancements in automobile technology and improvements in road quality.

The government’s plan to develop a National Logistics Information Portal – a single online window to link seven ministries such as railways, highways and civil aviation under one portal will also assist various stakeholders in the logistics industry significantly.

Prospects Witnessing the relevant developments, Singh predicts a bright future for the logistics industry. He says, “It seems that the year 2019 will witness the leasing volume for warehousing space breaching the 20 mn sq ft mark. The demand for modern warehouse space is expected to remain robust, driven by expansion and consolidation needs of leading 3PL/E-commerce/FMCG/Mfg occupiers. Over 20 mn sq ft of new supply (both grade A and B) addition is expected to enter the market by the end of 2019. Going forward, the use of innovative technology solutions will be a game-changer for the sector. As the sector witnesses the use of technology, coupled with the government’s reform push, corporates across all sectors would be driven to opt for large, modern warehouses. The entry of various private equity firms and foreign players in the Indian logistics market would boost quality supply, hence propelling demand. Cities such as Mumbai, Pune and Chennai would remain major investment destinations, with Delhi-NCR and Bangalore also being on the investors’ radar.”

Mega Trends Paving Way for Logistics in 2019  Demand-Driven Supply Chain (DDSC)  Robotics: Future of Industry  Omni-channel logistics solutions  Autonomous trucks will soon be taking logistics forward  Blending of logistics and technology services  Internet of things (IoT) can strengthen supply chain management  Hyper-local supply chains  Blockchain technology

32 CargoConnect - JANUARY 2019

General Manager – Warehouse, Aurobindo Pharma Ltd

Pharma Zone: flying Medical Cargo matters Indian pharmaceutical industry has emerged as the world’s third largest producer of drugs in terms of volume, as stated by reports. The industry has posted double-digit growth over the last few years, rising to US $36.7 Billion in 2017 and projected to grow to US $55 Billion by 2020, from US $20 billion in 2015. The experts in the Indian pharmaceutical sector voice that the industry is out-performing many other sectors like consumer-durable, air cargo, transport, etc. in achieving consistently high growth in the last many years.

With so much development, India is said to have made it to the top five emerging pharmaceutical markets of the world.

Over the years, the Indian government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies in the coming years.

Outlining the significant prospects, D D Reddy, General Manager – Warehouse, AurobindoPharma Ltd, shares, “Indian pharmaceutical companies are now investing in research and development considerably. What is also important is the move from creating medicine to holistic healthcare solutions that address the entire continuum of care. This is where technology and digital interventions play an important role. In our country, where the doctor to patient ratio poses a challenge, in order to serve our patients better, pharma needs to collaborate with partners such as hospitals, devices and diagnostics companies so that we can integrate, optimise data and generate insights and interventions for better health outcomes for the patients.”

Predicting the future of the pharma industry, Reddy states, “Medicine spending in India is expected to increase at 9-12 per cent CAGR between 2018-22 to US$ 26-30 billion, driven by increasing consumer spending, rapid urbanisation, and raising healthcare insurance among others.

Going forward, better growth in domestic sales would also depend on the ability of companies to align their product

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Outlook 2019 “Companies have embarked on a growth trajectory and aspire to become the low cost manufacturing and R&D hub for vaccines, yet they face both local and global set of unique challenges that are creating significant pressure to tighten the operations.”

“Digital payments, analytics-driven customer engagement by use AI/ML tools and government led initiatives, namely, Digital India, Make in India, Start-up India, Skill India and Innovation Fund, have supported the growth of this sector.”

Udit Mangal

K. Satyanarayana

B u s i n e s s M a n a g e r, P l u s s A d v a n c e d Technologies Pvt Ltd

portfolio towards chronic therapies for diseases such as cardiovascular, anti-diabetes, anti-depressants and anticancers that are on the rise.”

Co-founder and Director, Ecom Express Private Limited

like inadequate infrastructure, high returns and high cost pressures. According to the facts available on the web, E-commerce has transformed the way business is done in India. The Indian E-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017.

Agreeing with Reddy, Udit Mangal, Business Manager, Pluss Advanced Technologies Pvt Ltd informs that past decade has seen tremendous growth of the pharmaceutical While talking about the recent initiatives and industry in India. His insights, “The Indian pharma today developments in the Indian E-commerce logistics industry, has the largest number of sites approved by US FDA after K Satyanarayana, Co-founder and Director, Ecom Express the United States itself. The sector is going through an Private Limited elaborates, “The Indian E-commerce interesting phase in the country. Companies have embarked industry has emerged as one of the most dynamic and faston a growth trajectory and aspire to become the low cost paced industries and is at an inflection point, thanks to the manufacturing and R&D hub for vaccines, yet they face both robust growth in consumer demand. The rapid growth of local and global set of unique challenges smartphones and internet connectivity that are creating significant pressure to across the country in the recent years, The influx of fresh tighten the operations. Quality and price especially in tier-II and III cities, has capital in the form issues have spiraled across the value chain. led to the growth of online retailers. of B2B investment in The regulatory pressures today are more Consequently, the E-commerce retail E-commerce capability than ever in the past and infrastructure, logistics industry has grown at a brisk has led to an upward while better than in the past, is still an rate, being the direct beneficiary. The key growth trajectory. area of concern. However, at this junction drivers of the sector’s growth have been Continued upgrading where the industry stands today in India, it and improving due to increased internet penetration, infrastructure have is certainly at an advantage than the global growing acceptability of online payments also contributed in competitors and must guard its position. and an increase in per capita income. connecting consumers Despite the challenges, pharma companies Umpteen developments such as digital and sellers across the are expected to sustain and drive this payments, analytics-driven customer country. The industry growth by enhancing their performance engagement by use AI/ML tools and further witnessed with the use of technology and creating a government led initiatives, namely, Digital moment of buoyancy sustainable competitive advantage.”

India, Make in India, Start-up India, with a mega E-commerce Skill India and Innovation Fund, have deal done recently.

E-commerce Logistics: driving the also supported the growth of this sector.

Change Structurally, the E-commerce logistics E-commerce logistics industry has grown substantially in industry gained a lot of momentum with the implementation the last few years driven by increased smartphone usage, of GST, the single biggest tax reform undertaken by the internet penetration and language diversity on E-commerce country.” platform. E-commerce industry has even reached the remotest areas across India thereby enabling customers shop Satyanarayana continues, “The influx of fresh capital in anytime anywhere at best prices. The industry has literally the form of B2B investment in E-commerce capability has brought in a revolution in the logistics scenario. As per a led to an upward growth trajectory. Continued upgrading report by KPMG, while the growth has been high, there are and improving infrastructure have also contributed in inherent challenges which the industry is trying to overcome connecting consumers and sellers across the country. The

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Outlook 2019 “The E-commerce business is almost touching 1BN USD and likely to grow four to five times in the next three to five years. The biggest challenge and the growth in this entire Cycle of Supply Chain is the Last Mile Delivery.”

“Ministry believes that there would eventually be a grid of roads, rail, pipelines and terminals all converging at one or the other MMLP in the country.

At these MMLPs, transporters will have the option to move their shipments via road / rail, or coastally.”

L R Sridhar

K K Aggarwal

Joint Secretar y, Ministr y of Shipping, Government of India

Founder & CEO, Connect India

industry further witnessed moment of buoyancy with a mega E-commerce deal done recently.”

Speaking on the positive lane, L R Sridhar, Founder & CEO, Connect India reiterates, “The E-commerce business is almost touching 1BN USD and likely to grow four to five times in the next three to five years. The biggest challenge and the growth in this entire Cycle of Supply Chain depends on the Last Mile Delivery. Connect India is committed to design the largest and most robust last Mile Distribution E-ecosystem, by creating a model through 1,00,000 Brick and Mortar stores entrepreneurs, covering up to Panchayat level distribution which will create proximity the customers in the rural part of India which is the future of India. Connect India has also created a business Model for its partners, by way of assisted commerce which enables the Brick and Mortar stores to provide services, such as E-commerce assisted booking, travel services, value-added services, financial services, etc. This would help the rural Brick and Mortar stores to generate alternative revenue and better the livelihoods of the people.”

Sridhar pens down some of the other challenges:  Skilled Manpower especially for the LMD costs.  Increasing fuel costs has huge impact on margins.  Competition by unorganised sector leading to price war, which has impact on service deliverables and margins.  Lack of volumes in many rural locations, leading to optimal

utilisation of resources and sustainability which is a big challenge as the cost of delivery increases due to lower productivity.

Future of E-commerce Further predicting the future of Indian E-commerce logistics industry, Satyanarayana suggests, “Logistics requirements for the E-commerce retail sector are getting reshaped by continuously evolving business demands, rising consumer expectations and amplified demand for speedy deliveries.

The growth of the sector continues to be on an upward trajectory, and is expected to continue to do so from short to a long term. With the growth, comes great opportunity for expansion. Recent technological innovations are expected to unleash major disruptions in how shipments are delivered in the last mile. Logistics players are leveraging technology and new operating models to optimise costs and time efficiencies for last mile delivery.”

Well, even though the E-commerce retail logistics industry is expected to grow, its intrinsic challenges remain. This sector is up against numerous challenges including cost pressures, skilled manpower resources across the spectrum and infrastructure, to name a few, besides increasing unpredictability in the last mile delivery costs and multiple sectors chasing the same resources. Furthermore, the pace of infrastructure upgrade has also resulted in inefficiency, productivity losses, longer transit times and higher logistics costs. Good infrastructure, especially in the growing Tier

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Outlook 2019 “Shipping lines have experienced consolidation over the last few years and this means lesser options for us and our customers. However, supply is still high with most services having a higher capacity than demand.”

“We are working tirelessly on digitising the entire shipping value chain to positively impact every point of engagement between the shipper, the consigner and the consignee and have made a strong start with the launch of our Twill platform earlier this month.”

Sandeep Nair

Ashutosh Dixit

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II and below markets, is expected to improve operational efficiency, reduce transit times, control costs and result in better utilisation of assets.

Waterways: India’s Maritime March The Shipping Ministry aims to double the share of transportation of cargo through coastal shipping and inland water navigation by 2025 under Sagarmala programme.

The total cargo transported by coastal shipping in 20172018 is estimated at 110 million tonnes. An estimated 9 per cent CAGR growth was recorded over the last 3 years, as against 4.5 per cent CAGR growth in the preceding 3 years.

Also, various measures including sanctioning of additional coastal berths, reduction of vessel and port charges for coastal movement vis-à-vis international trade, priority for coastal vessels at ports, etc., have been undertaken by the major ports for promoting coastal shipping. Some of these measures have a lead time to fructify. One of the objectives of Sagarmala programme is to enhance the share of waterways in national modal mix from 6 per cent to 12 per cent and various projects have been identified to achieve the target by 2025.

Also, there has been development with regard to the National Waterways. While earlier, only five National Waterways were identified, the National Waterways Act 2016 has declared 106 new National Waterways. Now, there are 111 National Waterways spanning across 24 states, with a total navigable network of more than 20,000 km of waterways.

The planning and development works of these waterways are under progress, especially the works of NW-1 costing about `5400 crore with assistance from World Bank.

CEO, DAMCO (India, Sri Lanka & Bangladesh)

1. Shipping lines have experienced consolidation over the last few years and this means lesser options for us and our customers.

2. Supply is still high with most services having a higher capacity than demand.

3. Higher capacity and lower demand leads to rates sliding, and we witnessed this during the first quarter of 2018.

4. With most carriers expecting larger Vessels being delivered over the next 1 to 2 years, and some even placing new orders, there would be pressure on rates unless the demand moves up significantly.

Focusing on digitisation in shipping, Ashutosh Dixit, CEO, DAMCO (India, Sri Lanka & Bangladesh) opines, “We are working tirelessly on digitising the entire shipping value chain to positively impact every point of engagement between the shipper, the consigner and the consignee, and have made a strong start with the launch of our Twill platform earlier this month. Twill is an easy-to-use digital platform which provides customers greater control of their shipments by offering instant price quotes and bookings, transparency and tracking, simplified paperwork and proactive customer care.”

Indian Road Transport Industry: Adapting Digitisation If we go by the facts, the Indian transportation industry is continually growing at a CAGR of 15 per cent. With over seven million goods vehicles moving around the country, the freight volume has reached 1,325 billion ton-km, a figure that is supposed to double by 2025. We spend almost 14 per cent of our GDP on transportation and logistics, whereas in developed countries the spending is around 6-8 per cent. However, the industry remains heavily fragmented, unorganised and very rough in nature. In order to gain a better understanding of the issues, we must understand the day-to-day operations in the industry and its key stakeholders.

Ocean Shipping - What’s in the Range?

Meanwhile, Sandeep Nair, Senior Director – Ocean Freight, DHL Global Forwarding highlights some of the recent quantifiers in ocean shipping.

38 CargoConnect - JANUARY 2019

Commenting on how digitisation is going to change the face of trucking in India in the coming years, Dileepa B M, CEO Bonded Trucking, Shreeji Translogistics Limited avows, “Indian trucking Industry has already started

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Outlook 2019 “In the trucking industry, spot market plays a pivotal role, especially in the Indian context. No matter how big or small a player is one has to reach out to the spot market to fulfill their daily transportation requirements.”

“Today technology enabled players have much higher visibility in terms of - right from truck basement till delivery and the entire movement. High visibility alone is a game changer for everybody.”

Dileepa.B.M

C V Kumar

CEO Bonded Trucking, Shreeji Translogistics Limited

accepting digitisation in their business. Trucking Industry has capitalised on the boons of digitisation through its mobile application for truck booking online services. In the trucking industry, spot market plays a pivotal role, especially in the Indian context. No matter how big or small a player is one has to reach out to the spot market to fulfill their daily transportation requirements.”

He continues, “Trucking and the logistics industry as a whole, is still at its nascent stage when it comes to digitisation. As these digitally enabled, cloud-based solutions fall in line, they will rearrange how the logistics business operates, rendering obsolete old business models and enabling new ones. Some players, such as the truck manufacturers, will look to offer increasingly sophisticated shipping solutions, taking over much of the territory which are now largely controlled by shipping companies and other logistics providers, as will many large end customers.”

A positive, C V Kumar, CEO, CCI Logistics Ltd states, “Firstly, technology enabled players have taken substantial chunk of the market in the last three to four years. They have definitely made an impact in terms of using a different operating model compared to what we historically have been doing. Secondly, today technology enabled players have much higher visibility in terms of - right from truck basement till delivery and the entire movement. Thirdly, price discovery has been fairer now because of technology platforms. For the lane or route on any given time, it is much fairer and visible to everybody.

Companies are now using machinery and AI to predict the kind of volumes which would happen at routes and lanes.”

Transporters expectations from Government Kumar says, “There’s definitely one thing which I would like to see in the industry – is up-gradation of quality services

40 CargoConnect - JANUARY 2019

CEO, CCI Logistics Ltd

to the customers; quality of work which is being done. At present, both big and small organisations compete for the same kind of business which is uneven and unlikely. Their price alone matters now and not the quality of services, technology or network. Secondly, the Uttar Pradesh government has said that all the vehicles entering the state should have UP RFID. So, this negates whatever benefits GST had provided. Also, it is imperative to mention the issues, all service providers have, with the road tolling systems across the country. The amount of diesel wasted waiting at the tolls for hours. It costs us a lot. We sincerely need to address this issue.”

Leading lines According to a report by CRISIL, the future prospect of the Indian logistics industry is brighter. The research firm suggests the logistics industry of India which stood at `6.4 trillion in FY17 will grow at a CAGR of 13 per cent over the next three years and will be at `9.2 trillion by FY20. The government of India is also taking significant steps to support the sector and boost its growth in the times to come. The commerce and industry ministry has decided to give a one-time funding of `8 million to the sector for building up initial infrastructure and a phase-wise support of `33.9 million for four years. The government’s focus going forward is to bring down the cost of logistics which is at 14.4 per cent of India’s GDP at present. The aim is to bring it down to 10 per cent level in the next four years. This is a very significant move and will boost the competitiveness of the sector and will be significant for its further growth. Going forward, strategic investment and government initiatives to support the sector are going to be crucial for the logistics industry in India. If the cards are played right, the sector has the potential to create huge number of jobs for the countrymen and play a key role in driving the economy on a high wave. CC

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Driving to Destination Through Technology

India’s trucking sector is far away from complete digitisation but some steps are visible in that direction which is gradually enhancing efficiency in the sector. As trucks move today, using a combination of technologies, they generate a wealth of information and data ranging from transport infrastructure, and vehicle utilisation to remote maintenance. Use of technology helps in boosting efficiency and safety onroad.

- Gaurav Dubey

42 CargoConnect - JANUARY 2019

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he concept of ‘Uberisation of trucks’ (connecting network ecosystem or online freight matching platforms) is gaining momentum day by day. Shippers can have clear visibility of demand and supply by just clicking a button. Even smaller service providers can be aligned on such platforms, and this is especially true for short haul movements. Now, GPS has become a norm for most of the companies for asset visibility, even the companies which do not use GPS are adopting some or the other form of track and trace tools.

3PL companies will play a key role in utilising technology to enhance visibility of load carriage, turn-around time, vehicle utilisation, improving loading/unloading time by removing congestion at the docks, etc. The companies are using cutting edge technology and software for load design solutions, vehicle geo-tracking, inventory (order/part level) tracking, and route optimisation to add more value to a customer’s supply chain. Truck diagnostics is the area where fleet owners have started to benefit from tracking of asset utilisation and implementation of preventive maintenance.

These are some of the technological changes which are inevitable in the near future.

On the contribution of tech logistics in enhancing efficiency of the trucking segment, Neeraj Bansal, CEO, DHL SmarTrucking India says, “The Indian trucking segment is highly unorganised, and technology is helping the sector to evolve in two ways – firstly, by improving efficiency through accurate deployment of truck resources and secondly, by shortening the transit time of goods.

“For example, there are applications available that utilise geofencing to allocate loads efficiently and quickly. This can help businesses by giving them the visibility of truck availability so that they can schedule their shipments fast, and this also helps trucking companies in maximising their asset utilisation. Tracking technology and dynamic route optimisation help in improving delivery efficiency, by facilitating the selection of cost-and time-efficient routes, and monitoring the shipment throughout its journey.

It not only helps businesses in moving their goods faster, but also improves reliability and consistency of timely delivery.”

DHL SmarTrucking is committed to leverage technology in order to provide secure and reliable road transportation services to businesses. For instance, DHL SmarTrucking uses dynamic route optimisation for bringing efficiency in shipping, and IoT-enabled sensors which communicate with a central control tower to send real-time temperature and consignment tracking data.

It offers the fastest transit times with 95 per cent reliability, and up to 50 per cent reduction in transit times compared to traditional trucking, along with ease of use, end-to-end consignment visibility, temperature-controlled capabilities and real-time tracking that beats industry standards.

JANUARY 2019 - CargoConnect

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The Indian trucking segment is highly unorganised, and technology is helping the sector to evolve in two ways – firstly by improving efficiency through accurate deployment of truck resources and secondly by shortening the transit time of goods.”

Neeraj Bansal CEO, DHL SmarTrucking India

DHL SmarTrucking operates pan-India through a network of 20 SmartHubs.

An important aspect of integrated end-to-end logistics is digital integration. A single stakeholder’s visibility across the chain is generally limited to the one’s own part, or sometimes to related domains too; but a complete endto-end view is possible only through such a platform. For a stakeholder to become its inherent part, the benefits of such association must be clearly visible to him.

Sandeep Chatterjee, Senior Manager, Deloitte India, highlighting the objectives of a common digital platform says, “The objective is to enable seamless flow of information across various service providers and modes of transport. Such a platform should ideally be able to integrate all documents related to the cargo flow, provide cargo visibility through track-and-trace, facilitate a seamless information flow and link the chain to invoice and payment points.

In the current era of digital transformation, several technological disruptions have come together to create powerful tools that are reshaping industries across the globe.

As various industries such as retail with close links to logistics, are being redefined by digital technologies, it is inevitable for such disruption to revolutionise the logistics sector.

The technologies in focus are Internet of Things (IoT), Big Data Analytics, Cloud Computing, Blockchain Technology and Automation Technology. There are a number of startups which have flourished in this space in India. Real-time fleet tracking, instant invoicing system, real-time notifications, vernacular apps, uberisation and maintenance alerts are some of the innovations which have revolutionised the trucking industry in India though a lot needs to be done.”

Factors inhibiting adoption of digitisation Lack of awareness and limited access to technology is clearly

44 CargoConnect - JANUARY 2019

an inhibitor in digitisation in the trucking sector. On this point, Bansal says, “There are several factors contributing towards the slow adoption rate of technology in the Indian trucking sector. Lack of awareness is more likely in the adoption cost as compared to the technological solutions or its benefits. Smaller trucking companies may perceive the cost of logistics technology to be prohibitive; however this is not always true. For example, truck operators can adopt low-cost sensor solutions which, when coupled with standard data networks, could help improve the visibility of shipments and consistency in reporting.

In addition, while there is a lot of potential to adopt new and emerging technologies, the sector has a lot of local players who do not have the know how to deploy them. For example, the cold chain segment has a lot of potential, but inadequate technology adoption limits the reliability and security that logistics partners can provide businesses.”

In the current era of digital transformation, several technological disruptions have come together to create powerful tools that are reshaping industries across the globe. The technologies in focus are Internet of Things (IoT), Big Data Analytics, Cloud Computing, Blockchain Technology and Automation Technology.”

Sandeep Chatterjee Senior Manager, Deloitte India

DHL SmarTrucking is committed to bridge the gap and improving the confidence level of businesses in Indian logistics companies. Both offerings – DHL SmarTrucking (for dry logistics) and DHL SmarTruckingColdchain (for temperature-controlled logistics) – uses state-of-the-art technologies in delivering not just shipments, but offering an unmatched shipping experience to customers across sectors - E-commerce, retail, pharmaceutical, food & beverage, automotive and consumer durables. Our goal is to disrupt the Indian logistics industry through smart and innovative use of technology, customised to the industries we serve.

Chatterjee cites statistics of internet users in India to prove his point and says, “With over 460 million internet users, India is the second largest online market, ranked only behind China. There would be about 635.8 million internet users in India by 2021. According to the statistics of 2016,

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The combination of big data, artificial intelligence and geolocation are at the heart of our current and future thinking and aimed consistently at further simplifying our customers’ activities; guaranteeing them new sources of productivity.”

Olivier Royer Executive Vice President – Road Transport, GEODIS

India had an estimate of 262 million mobile internet users who were living in the urban communities and 109 million users were living in the rural areas.

transparency and consistency in the shipping process. In addition, telematics could be leveraged to monitor driver’s behavior and inform defensive driving training modules, which helps to reduce incidents, and therefore, costs as well.

“Information and data collected at various intervals help us in all aspects, from route planning, backhaul scheduling and prevention of theft and delays to consignment ambient control, driver behaviour analysis, and real-time alerts and updates to the customers, drivers as well as the operations team. By leveraging smart technologies with the help of a highly-committed team, we are able to provide clients with the most reliable and fuss-free road transportation service in an innovative and agile way.”

Though statistics look quite healthy, there is a resistance to According to Chatterjee, India is the breeding ground change. We have awareness and access to technology but it for digitisation and tech-enabled solutions, still it’s is the mind-set which is considered the bottleneck. We had not affordable for small and medium scale enterprises. been toying with the idea of GST for so many years and it Technology prices need to come down further. He further took many years to implement. Apart adds, “There are companies who have from this, there is a strong trade union embraced this technology and seen which is insecure about the impact of substantial cost savings along with Real-time fleet tracking, technology in their lives. Take a simple the jump in customer satisfaction instant invoicing example. There was no railway line index. Startups such as Blackbuck, system, real-time between Bengaluru and Mangalore as Shippr, LetsTransport, Rivigo, notifications, vernacular the road lobby was speculating loss of Quifers and many more aggregate apps, uberisation business. But once the railway line was a huge number of local truck and maintenance built, it made things better. Another operators to provide on-demand, and alerts are some of aspect is the cost of technology. While transparent online marketplace. the prices of Industry 4.0 technologies the innovations which The shippers can browse through have come down, those need to drop have revolutionised the the list of available trucks in the further to make it affordable for small trucking industry required locations and then, book and medium scale enterprises.” in India a truck against the payment of a commission for every transaction Digitisation enhancing customer or a time-bound subscription. satisfaction These truck aggregators are leveraging technology to On enhanced customer satisfaction, Bansal says, “As provide services such as automated demand-supply mentioned earlier, DHL SmarTrucking was launched with scheduling, GPS tracking, cloud-based documentation, the aim to provide technology-enabled logistics solutions. mobile/web app support, and IoT-enabled vehicle safety We also believe that there is a strong need in the local and maintenance. Some of them even provide trained trucking market for an improved customer experience to drivers. The recent announcement by Uber, the ride achieve customer satisfaction. Solutions like the use of hailing company, about launching Uber Freight or Uber telematics have tremendous benefits for DHL SmarTrucking, for Trucking in the US has jolted the entire trucking for our SmarTruckers and for the logistics sector in India industry across the world. This is likely to disrupt the as a whole. Telematics significantly improves efficiencies of Indian market as well.” CC operation, resource allocation and asset-tracking, and ensures

46 CargoConnect - JANUARY 2019

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Logistics industry on innovation trail As age-old processes begin to shift to meet the demands of the internet age, logisticians and supply chain professionals have begun to understand the way technology is transforming the industry at a lightning fast speed. It is quite much evident that the companies which will be left behind in this era of technology will become nothing but obsolete in the future.

Gaurav Dubey

48 CargoConnect - JANUARY 2019

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A

study by the research company Transparency Market Research (TMR) valued the current global logistics industry at $8.1 trillion and estimated that it will touch the figure of $15.5 trillion by the year 2023. Figures are clearly indicating that the size of global logistics industry will almost get double in the next five years.

Indian logistics industry is following the same growth trend as the Economic Survey of 2017-2018 has evaluated that the industry will jump from 160 US billion dollars to 215 US billion dollars in the next two years. If a person reads between the lines then it’s not difficult to understand that the Indian logistics industry is racing ahead of its global counterpart after implementation of GST, granting of Infrastructure status and other key policy measures that have been taken by the current government at the Centre.

TMR expressed that logistics companies across the globe have been investing in product innovation, business expansions and new facilities to keep up with local and global competitors and strengthen their foothold in the industry.

Investment in technological innovation is one of the major drivers in the market. Investment in technology has also become imperative for the companies to match the staggering growth forecast. This includes investment in Automation, Robotics, Wearable technology, Drones, Selfdriving vehicles, Blockchain and IoT. Certainly, as age-old processes begin to shift to meet the demands of the internet age, logisticians and supply chain professionals have begun to understand the way technology is transforming the industry at a lightning fast speed. It is quite much evident that the companies which will be left behind in this era of technology will become nothing but obsolete in the future.

A report by Cisco has estimated that by 2020, more than 50 billion objects will be connected to the internet, presenting a $1.9 trillion opportunity for the logistics industry — a stark comparison to the mere 5 billion objects currently connected today.

Logistics Experts Analyse In the current scenario, supply chains are getting tighter, shorter and faster by every passing day. When we asked K Swaminathan, Director [Service Business], Balmer Lawrie & Co Ltd about the innovative practices which they follow to offer competent services to their clients, he said, “Continued investments in technology to bring in efficiency and effectiveness help an organisation to stay on top. Use of technology to bring in cost efficiencies, vendor

JANUARY 2019 - CargoConnect

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feature Continued investments in technology to bring in efficiency and effectiveness help an organisation to stay on top. Use of technology to bring in cost efficiencies, vendor management, associate management and offering customers real time information, are the key to success in supply chain logistics.”

K Swaminathan Director [Service Business], Balmer Lawrie & Co Ltd

management, associate management and offering customers real time information, are the key to success in supply chain logistics. It is important that our customer knows where his product is while in transit and we, at Balmer Lawrie, are using technology to keep our customers informed at every leg, which helps our customers in better inventory Technology has management, metamorphically changed the way thereby warehouses reducing their function inventory nowadays. carrying cost.”

Three to five years from now, warehouses will be more agile, dynamic and smart

On how Blockchain can revolutionise the supply chain process in the sector, Swaminathan said, “Blockchain as a technology, has a huge potential in the Indian logistics industry in terms of cutting costs and creating transparency. Blockchains are highly safe and secure in nature and as a result, it allows all the stakeholders of a supply chain including carriers, shippers, customs authorities and transporters to communicate effectively, cheaply and most importantly, safely with each other.

Although blockchain was invented way back in 2008 to serve as ‘the public transaction ledger’, its usage has got prominence now.”

“Well, considering the current dynamic nature of the Indian logistics

50 CargoConnect - JANUARY 2019

industry, it is only a matter of time before the technology is widely adapted and used throughout the supply chain. Blockchain technology will prove to be the game-changer in this space as it enables smart-contracts between players, automating the processes of purchase, cutting time and cost.

Storing all-transaction information in a single ledger dramatically improves transparency, cutting inefficiencies and risk of tampering which the supply chain industry always had to grapple with,” concludes Swaminathan.

with the conventional track and trace, we track every piece of every consignment in the network as it moves through the Hub and Spoke network at every touching point both in and out. Apart from this, we track every vehicle in the network through a centralised network monitoring system using GPS and pickup and delivery vehicles through a route tracking mechanism. We use Artificial Intelligence and Machine Learning for tracking high risk consignments and use data proactively to control the performance of the network across the 27,000 origin – destination pairs.”

Science of warehousing is evolving Technology has also metamorphically changed the way warehouses function nowadays. Three to five years from now, warehouses will be more agile, dynamic and smart. The warehouses will be guided by algorithms which will be deeply influenced by Artificial Intelligence and Machine Learning,

This is an incredible time to be in the logistics industry. We are on the cusp of a new era of automation that will bring rapid change from the warehouse and loading dock to the road.”

Jeffery Silver Co-founder, Coyote Logistics

Citing their own example, Abhik Mitra, Managing Director, Spoton Logistics Pvt Ltd, elaborated on how they use technology in tracking client’s consignments. “Along

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feature We use Artificial Intelligence and Machine Learning for tracking high risk consignments and use data proactively to control the performance of the network across the 27000 origin – destination pairs.”

Abhik Mitra Managing Director, Spoton Logistics Pvt Ltd

will work on real time analytics and will be intelligent enough to understand the entire external ecosystem around them. For instance, if it rains heavily on a particular day, causing delay in the movement of goods, the smart warehouses will have the intelligence to anticipate the approximate delay in the arrival of goods into the warehouse and will allocate the resources to Workers are other tasks in the going to be meantime. Hence, functioning we can look at quicker and more intelligent this WILL tend and flexible to result in warehouses less-thanleading to higher safe practice efficiency.

Forklifts have been a vital component to warehouses for decades, and we’re now seeing a shift toward programming this share of the supply chain. The primary goal is to improve efficiency. Amazon is a leading example in this space, thanks to its acquisition of Kiva Systems, now known as Amazon Robotics. As Amazon and other companies have shown, implementing robotics and autonomous machinery in the fold can condense delivery times to just a 24-48 hour period. Autonomous forklifts and robots can pick products much sooner than humans, which means companies don’t have to pay human forklift operators.

The combination of lower costs and a speedier assembly is a ‘dream

52 CargoConnect - JANUARY 2019

come true’ for any business owner.

It is not a single technology that is disrupting the warehousing sector but the combination of the existing technologies, that will lead to an efficient and effectively managed warehouses. Material Handling Systems providers are providing customised solutions for the logistics sector – automatic storage and retrieval systems, automated guided vehicles, augmented reality tools and warehouse management systems that are integrated with the automation tools, data capture tools, report generation and others.

AIDC devices will play a key role in the effective usage of other technology tools. Until the industry achieves dark warehouses, Augmented Reality (AR) will be utilised to render warehouses paperless. AR tools will assist warehouse employees to locate shipments and fasten the overall process of storage and retrieval, without depending on hard copies of shipment location information. Few other tools that are going to change the warehousing sector, include cloud computing for warehouse management systems, distributed order management systems, big data and analytics for inventory and demand forecasting etc. Some of the software products and service providers are focusing solely on the logistics sector to provide the participants with requisite tools with sophisticated capabilities at lower costs.

Prioritising Logistics Safety Safety in logistics will also be on the radar in the coming years.

Recent hacks witnessed by national companies, have exposed potential cyber security threats throughout some of the most protected organisations across the globe. As a result, logistics providers will concentrate more on safety. Amplified demand for faster turnaround will also have an inevitable result of increasing the risk of accidents in transportation operations. Workers are going to be functioning quicker and this will tend to result in lessthan-safe practice. This will require the use of more innovative analytics to monitor employee performance and obey safety standards. The potential to utilise Artificial Intelligence (AI) to improve decision making, transform business models and networks and modify customer experience will drive the payoff for digital enterprises.

A recent industry survey indicated that 59 per cent of the establishments are still assembling data to shape their AI tactics, while the rest have already made advancements in directing or implementing AI solutions. While using Artificial Intelligence appropriately, will result in a great digital business reward, the promise of general AI to perform any intellectual duty that a human can do, and vigorously absorb and comprehend as much as humans, is uncertain.

As technologies continue to carve out their role in the global logistics industry, we’re likely to see previously unimagined levels of optimisation throughout the supply chain - from manufacturing to warehousing to delivery. While the true impact of some of the emerging innovations is still unknown, it’s clear the companies and locations at the forefront of this shift, will see the greatest benefits. CC

INFRASTRUCTURE

Potentialising West Bengal as a Logistics Hub The state can attract `5,000 crore investment by 2020, says Finance Minister Amit Mitra Smita Kumar

T

he West Bengal Government is quite hopeful that the state can become a logistics hub of the east, in the coming years. The state has the potential to attract `5,000 crore investment in logistics by 2020.

Of the above opinion and quoting a report, the state’s Finance & Industry Minister Amit Mitra said the state could become a logistics hub of the east. “We have the potential to attract investments of around `5,000 crore in logistics by 2020. This is going to provide great employment opportunities to the people. Direct as well as indirect jobs will be created,” Mitra expressed.

Mitra was quoting the report ‘Positioning West Bengal as a key Logistics Hub’ which has been prepared by KPMG. The report says the state has a huge potential to emerge as the logistics hub of the entire eastern and north-eastern regions of India.

The state had recently rolled out ‘Logistics Park Development and Promotion Policy of West Bengal 2018’.

Mitra had already sought suggestions from prospective investors to make the policy more investor-friendly.

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The Department of Industries, Commerce & Enterprises, Govt of West Bengal has set the vision in its policy- to position West Bengal as a globally leading integrated Logistics Hub, by creating an efficient network of transportation and storage infrastructure to fuel the growth of the state’s overall economy.

The policy also talks about the objectives, development of logistics parks, capacity building, state’s role etc. The mission of the policy is to

in other sectors of economy so that many employment opportunities can be generated.

On the other hand, as far as the report by KPMG ‘Positioning West Bengal as a key Logistics Hub’ is concerned, it explores the role and potential of West Bengal in developing its logistics sector and becoming a hub to cater to Eastern and North-Eastern India. According to the report, the logistics sector

Amit Mitra Finance & Industry Minister, West Bengal “This is going to provide great employment opportunities to the people. Direct as well as indirect jobs will be created.” develop a robust logistics strategy in the state that focuses on : Attracting the foreign and domestic investments to develop state-of-the-art Logistics Park (s) and collateral infrastructure, Facilitating its evolution into safe and sustainable logistics hub which will be global in reach, intelligent in nature and comprehensively efficient in its service delivery, Leveraging the multiplier effects of the logistics sector to drive the overall growth

is likely to be the backbone of the economic development in the Eastern and North Eastern states of India.

West Bengal, in particular, with its strategic location and domestic and international trade linkages, has a definite and immediate potential to emerge as the logistics hub for the region. Estimates put the market size of the West Bengal logistics sector at USD20 billion by 2020, with a myriad positive demand and

supply side factors driving its growth. West Bengal is also well positioned to leverage the existing infrastructural strengths, which includes having a waterfront of 950 kms, close to 16 per cent share of the total length of National Waterways, one of the highest road coverage, two operating international airports and one of the largest warehousing capacity in the eastern part of the country. The state has recently introduced a state logistics policy, to fully harness the sector’s potential the government should now focus on strengthening the coordination between the industrial, infrastructural and logistical initiatives in the state, set up a Logistics Centre of Excellence, promote the adoption of digital solutions to improve the efficiency of logistics service delivery, develop sector-focused skill-sets among the targeted workforce and help create an enabling climate for the growth of start-ups in the sector.

In the efforts being put by the West Bengal Government, Haringhata in Haldia district would already be witnessing a logistics hub to be set up by Instakart Services Pvt Ltd (a subsidiary of E-commerce major Flipkart). The logistics hub is going to be set up at Haringhata Industrial Park and Flipkart would be the anchor investor.

KPMG has learnt that five potential sites in West Bengal have offered the opportunity to develop endto-end logistics parks with multimodal capabilities. Cumulatively, these five locations - Dankuni,

Vinit Kumar Chairman, Kolkata Port Trust “In the next five to six months, KoPT will get a clear picture about the road map for the development of the land. ” Durgapur, Tajpur, Malda city and Siliguri - have the potential to mobilise investments worth US$1.5 billion and generate as many as 30,000 direct jobs and up to nearly one lakh indirect jobs.

KPMG has learnt that five potential sites in West Bengal have offered the opportunity to develop end-to-end logistics parks with multi-modal capabilities

Mitra informed that the logistics geography is ‘skipping forward and the waterways have a huge scope in the state with 295 rivers and that it is one of the top states of the country in terms of density, reach and mix. According to the minister, “The target is to bring down the logistics cost to 10 per cent for the industry from 14 per cent now.”

Mitra also emphasised that the aviation sector has seen a sharp growth from Kolkata and Bagdogra airports, with increase in the number of flights and passengers.

He added that the West Bengal government already extended zero

duty on aviation turbine fuel at the airports in Bagdogra, Andal and Coochbehar. The minister avowed that Bengal should witness a maritime revolution with new potentials in the upcoming inland waterways and deep sea port. He said the deep-sea port project at Tajpur was under progress with the techno-feasibility study underway.

West Bengal holds 26 per cent stake in the project, while the rest is with the Kolkata Port Trust.

Meanwhile, the chairman of Kolkata Port Trust, Vinit Kumar recently said that KoPT was in a possession of 2000 acre of land, including operational and nonoperational, to be developed for the purpose of logistics hub, industrial use and tourism.”

As per information, the tender for hiring a consultant for planning the project has already been floated.

Kumar added, “In the next five to six months, KoPT will get a clear picture about the road map for the development of the land. The hired consultant will be doing the entire planning, survey and mapping the land. He will identify which part of land will be suitable for logistics, industry use or tourism.” CC

JANUARY 2019 - CargoConnect

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

Fueling India’s E-commerce Delhivery

Gurugram-based E-commerce logistics startup Delhivery was founded by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati in 2011. It provides a technology platform to enable efficient end-toend logistics solutions across different transportation modes with complete visibility. Our vision is to become the operating system for commerce in India, through a combination of world-class infrastructure, logistics operations of the highest quality and cutting-edge engineering and technology capabilities.In May 2017, Delhivery raised $30 million in a private equity round from Fosun Group.

Making intracity transport easy TruckEasy Bengaluru-based tech-enabled freight aggregator TruckEasy was founded by Nikhil Thomas, Vikram Kodgi, and Avinash Achar in 2015. It enables businesses with convenient truck rentals with live tracking to facilitate intracity logistics solutions. The company can transport anything within Bangalore and Hyderabad using mini trucks. One can rent vehicles like Tata Ace, Super Ace and others at the click of a button.

Your trustworthy logistics bro

FreightBro

Mumbai-based logistics technology startup FreightBro was founded by Raghavendran Viswanathan, along with Mohammed Zakkiria, and Anand Babu in 2017. The startup helps logistics companies to establish their brand online and promises to provide whole new digital experience to clients of the logistics companies. FrieghtBro raised an undisclosed amount of seed funding from Suresh Kumar in May 2018.

58 CargoConnect - january JANUARY 2019

Technology

PLATFORM TO FAST-TRACK MARITIME PAYMENTS T

he Indian Ports Association (IPA) has launched the Port Community System ‘PCS1x’ - a cloud-based new generation technology, with user-friendly interface.

The system seamlessly integrates eight new stakeholders besides, the 19 existing stakeholders from the maritime trade on a single platform to further improve communication of trade with customs.

A major feature is the deployment of a payment aggregator solution which removes dependency on bank specific payment eco-system.

The system has a database that acts as a single data point to all transactions. It captures and stores data on its first occurrence, thereby rveducing manual intervention, the need to enter transaction data at various points and thereby reducing errors in the process.

The platform also offers value-added services such as notification engine, workflow, mobile application, track and trace, better user interface, better security features and improved inclusion by offering dashboard for those with no IT capability.

Shipping sector users can now make payments to various stakeholders through the common platform which will remove dependency on bank-specific solutions. The Shipping Ministry will issue a notification soon to make this mandatory.

This will lower the cost of transaction and drop the dwell time and also improve the ease of doing business. CC

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Interview

Technology DRIVES us, Relationships binds us A Fortune 500 provider of multimodal transportation services and global 3PL leader, C H Robinson has over the time built recognition because of its dedication to providing products and outstanding services to its customers and its commitment to continuous improvement. Madhav Thapar, Vice President - South Asia, C H Robinson, in a one-to-one conversation with Upamanyu Borah, elaborates on the company’s manpower, proven processes and global technology that help their customers work smarter, not harder.

What kind of integrated solutions do you provide to maximise customers’ logistics efficiency and support their further expansion in the market?

C H Robinson has local experts in offices around the world. We apply best practices in transportation to help companies move their products through the supply chain.

The other essential piece of the logistics puzzle is technology—global technology. Companies need visibility to their freight, no matter where it is in the supply chain. Our global technology platform, Navisphere® provides information on orders and enables companies to track their freight in transit across all types of transportation, making it available to the company for forecasting, planning, procurement, inventory management and other functions.

How far have you been successful in implementing technology to streamline your logistics services?

We have been investing in improving our technology to support our customers. In addition, we have integrated capabilities for contract carriers, who currently use Navisphere® to accept shipments and enable tracking. Navisphere® offers near real-time visibility tools so at any given moment shippers can see where their freight is.

Tell us your company’s exclusives when it comes to offering Trade & Customs Advisory Services.

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Our Trusted Advisor® experts in trade compliance and customs brokerage services help our customers remain compliant and improve efficiency in an ever-changing industry. One way we accomplish this is by providing our customers with our Global Trade Reports® tool. It takes raw data provided by U S Customs and organises the complex details into user-friendly dashboards, charts, graphs and reports.

In addition, our customs brokers assist with customs clearance helping companies prevent obstacles and keep their freight moving. And, our trade compliance experts work with companies, training their personnel and conducting mock audits to help them strengthen their in-house compliance programs.

How your company minimises the risk of cargo in transit and maximises satisfaction of clients?

C H Robinson maximises satisfaction through its people, process, and technology. We have implemented our global processes and technology in South Asia and around the world to ensure a truly effective customer experience. Our people are smart and dedicated, and customers rely on our ability to source and develop experts for knowledge, problem solving, and supply chain strategy.

Tell us about your future investment plans in the Asian region.

India is one of the fastest growing logistics markets in Asia with a CAGR

of 8 per cent over the past five years.

The Economic Times economic survey of India predicts the industry will reach $215 billion (USD) in 2020 at an accelerated growth rate of 10.5 per cent, providing employment to almost 23 million.

C H Robinson has been making significant investments in the country, including establishing our own presence by moving to a flagship office in Mumbai, establishing our commercial headquarters in July, and relocating our registered office in Chennai to a new state-of-the-art facility two months back. We have introduced our global processes, tools, and technology in South Asia and revitalised our talent.

How do you foresee the future of the Indian Logistics Industry?

India is adequately investing in infrastructure, such as dedicated freight corridors for cargo movements by rail, national highway developments, port capacity expansion, and both Brownfield and Greenfield airports.

These will significantly reduce infrastructural bottlenecks and add to operational efficiency in the logistics industry. With GST settling down, domestic cargo movements are getting much more streamlined and regulated.

Additionally, the introduction of E-way bills is making road transportation much more professional. The overall awareness and drive towards digitalisation will be a huge enabler and game changer going forward. CC

Interview

We aim to be the ICEGATE to Enterprise Resource Planning Veteran Logistics Service Provider, S Ramakrishna has recently been elected the new Chairman of FFFAI. In an interview with Upamanyu Borah, he shares his experience of serving the Indian logistics industry since last many years, and FFFAI’s initiatives to augment the overall logistics sector. Excerpts:

How has the services of FFFAI in the field of custom brokerage, freight forwarding and logistics impacted the growth of the sector?

The custom brokerage, freight forwarding and logistics segment have evolved progressively for the betterment in terms of technology, ease of doing business and transparency. At the same time, the aim is to reduce cost substantially. There has been enormous improvement in the road sector and transportation. The E-way bill and GST has further boosted freight forwarding.

FFFAI has been the core member of the government bodies including National Committee on Trade Facilitation (NCTF) which contributes immensely to their knowledge base as well as the 28 association’s feedback across India. We are also the member of the International bodies that help in garnering information from other countries on Cross Border Trade and Trade Facilitations. This helps to take forth the ideas to various government agencies.

What major changes could be expected under your leadership in FFFAI?

Change in leadership does not mean the change in process completely. It is an ongoing process. However, my prime focus would be to facilitate the ease of doing business and reducing certain processes which are avoidable.

Ideally, we would like to be the ICEGATE to Enterprise Resource Planning (ERP) which could be linked

64 CargoConnect - JANUARY 2019

to e-way bills, getting data in CSV or excel files to be uploaded on various government portals.

In the Customs areas as well, FFFAI have suggested many measures which would be pursued and completed in my term.

Also, we are in pursue with the MSME Ministry to have each member recognised as MSME. We are also urging the government for Industry status to the air cargo & logistics sector as a whole, which I would surely want to achieve during my term.

FFFAI is consistently endeavouring skill development initiatives through seminars, workshops and through its training institute - IIFF What are FFFAI’s steps in knowledge enhancement of Indian freight forwarders in order to make them ready to face future business challenges?

FFFAI is consistently endeavouring skill development initiatives through seminars, workshops and through its training institute - Indian Institute of Freight Forwarders (IIFF). Presently, IIFF is conducting Diploma Courses in Logistics, Shipping and Freight Forwarding which are expected to pave the way for further digitisation of

the FIATA (International Federation of Freight Forwarders) Diploma and set a milestone in the Indian education market. The IIFF FIATA Diploma in Logistics, Shipping and Freight Forwarding consists of a set of specialised modules and content that applies directly to the different areas of work related to customs, freight forwarding, sea, air, road, rail transport, and logistics business.

In addition, FFFAI also engages our members and their employees in E-learning, skill development, apprises them of changes and discusses challenges in our industry.

How do global events like FIATA World Congress play an instrumental role in addressing issues being faced by the logistics industry?

Indian logistics practitioners got huge opportunities for the first time at their home turf, thanks to FFFAI’s initiative in organising of an international event of this magnitude, where more than 1200 delegates participated.

FWC 2018 helped the global Freight Forwarding industry realise the untapped growth opportunity within their supply chains for doing business in India regarding end-to-end global logistics solutions, customer centricity, and new business opportunities.

Consequently, we are bullish that the EXIM and logistics industry would witness the desired results of the network they expanded and established at this mega event. CC

Interview

Charge TOLL TAX as a ONE TIME annual fee

The Indian road transport industry has witnessed significant developments in the last few years, and industry veteran C V Kumar is in all praise of the present government for the same.

In an exclusive interview with Ritika Arora Bhola, the CEO of CCI Logistics Ltd talks about the current scenario of Indian road transport industry and how it has changed post GST, recent initiatives taken by the Government, so on and so forth.

Excerpts:

66 CargoConnect - JANUARY 2019

Please comment on the current scenario of Indian road transport industry and how has it changed post GST? GST has been a game changer for the industry. A lot of positive developments have happened post its implementation.

Also, thanks to e-way bill and abolition of check posts, there has been reduction in the transit time which has further impacted positively the turnaround time of the vehicles. Therefore, it’s been a welcome move. Another thing which has happened post GST is that there has been a lot the consolidation of warehouses – from state-level warehousing to a warehousing model – it has further impacted the primary transportation as well as the secondary transportation model. Pipeline inventory has reduced considerably, hence time bound transportation has become more critical and crucial.

Elaborate on the challenges that currently prevail in the Indian road transport sector.

I feel there are three major challenges that are currently worrying the road transport industry. Firstly, lack of crucial manpower in terms of driver community. This has restricted big organisations from purchasing vehicles as there is a shortage of trained drivers in the country. An organisation might purchase 100-200 vehicles, but finding 100-200 drivers to run those vehicles is a concern.

Secondly, if you talk about the infrastructure – roads have achieved good designs. There have been continuous improvements by the Government but sadly, if you talk about the ports, entry and exit points to them are still at a detrimental state, be it JNPT, Chennai port or any other. The congestion level and road conditions are pathetic.

The port entry and exit processes are pretty old and there is need for lot more mechanisation and technology intervention to enhance the processes.

Thirdly, people who joined the transport industry at entry-level now are moving towards E-commerce industry or the organised retail sector. But, having said that, today there exists institutes that are training drivers and disseminating skills which are required. Therefore, at one level, where there is skill gap, positive actions are also being taken to address the issues at the same time. I feel over a period of time it will balance out and everything will fall in place in the coming years.

Lack of crucial manpower in terms of driver community has restricted big organisations from purchasing vehicles as there is a shortage of trained drivers

Apart from implementing GST, what are the recent initiatives taken by the Government for the development of the industry?

This government has been aggressive in road development and the speed of execution. Bharatmala and Sagarmala are two other huge change agents. Bharatmala is the largest highways project after the National Highway Development Programme (NHDP), with the aim of improving connectivity through four and six laning of national highways and border roads. While, Sagarmala envisages port-led development at the country’s 12 major ports – Kandla, Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambaranar, Visakhapatnam, Paradip, and Kolkata (including Haldia) – as well as 1,208 islands identified for development.

We should really appreciate the kind of focus, which this government has put in into infrastructural development. This focus was lacking earlier.

Which major reforms do you expect to see in the coming years that could reduce the cost and turnaround time for the forwarders?

There’s definitely one thing which I would like to see in the industry – is up-gradation of quality services to the customers; quality of work which is being done. Ten years back the road ministry agreed that service providers will be upgraded on the basis of their capital, turnover, branch network, manpower strength, etc., but that never saw light until today. At present, both big and small organisations compete for the same kind of business which is uneven and unlikely. Their price alone matters now and not the quality of services, technology or network.

Secondly, the Uttar Pradesh government has said that all the vehicles entering the state should have UP RFID. So, this negates whatever benefits GST had provided. I think we should curb those kinds of tendencies.

Also, it is imperative to mention the issues all service providers have with the road tolling systems across the country. Our industry bodies have been clamouring and pleading with the Government to collect toll tax as a one time annual fee. But, government has its own compulsions, roads are built on boot basis, there is certain amount of investments made by the builder and certain returns which are assured, etc.

The amount of diesel wasted by trucks waiting at the tolls for hours costs us a lot - in terms of pollution and also wastage of precious foreign exchange. We sincerely need to address this issue.

Further, I just wish that toll tax collection through RFID/Smart Card’s becomes integrated in both national highways and state highways. Today, we have two separate systems for that and I hope it becomes one system applicable for various toll gates, be it state highways and national highways. CC

JANUARY 2019 - CargoConnect

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Interview

Pioneering Blockchainbased Solutions for Logistics 68 CargoConnect - JANUARY 2019

Can you please tell us your company’s exclusives and how extensive is your network at present?

We developed our CargoX platform and launched it in November, and we have since garnered a lot of praise and awards - the International Road Transport Union (IRU) World Conference Startup award, the #DataccioConnect Blockchain Innovation Award, and we have been shortlisted for the Financial Times / RSG Intelligent Business 2018 Awards in the Supply Chain Management category, together

Steering the maritime shipping industry with blockchainbased document transaction solutions, CargoX provides a way for importers and exporters to exchange these documents digitally, securely and with no possibility of fraud in a neutral environment – extremely quickly and much more affordably. Recently, at the IRU World Congress’18 in Oman, Igor Jakonmin - PhD, Chief Operations Officer of CargoX, in an exclusive interaction with Upamanyu Borah, informed on their ecosystem of services that is set to transform the entire logistics industry, and much more. Excerpts: with giants such as Anheuser-Busch InBev, BHP, De Beers Group, Flex and Elementum, Hyundai Motor Europe, Kenco Group and Smart Gladiator, Nestlé and Starling (Airbus, The Forest Trust (TFT) and SarVision), Provenance, and Unilever.

We are marketing our product and on boarding new customers. We already have a strong network of partner networks and platforms that are integrating our solution into theirs.

There are some prominent names among the early adopters such as

the Swiss global logistics specialist Fracht AG, freight forwarder networks and platforms such as Globalink, Global Value Network, ConsolFreight, Global Cargo Alliance, Ocean X, and Freightalia, and some regional logistics companies as well.

In the logistics industry, the maritime logistics operations still relies heavily on paper documentation and uses the same for issuing proof of cargo ownership; how are your solutions different?

Everyone in the shipping industry is struggling with problems related to the snail’s pace of transferring paper documentation, such as bills of lading, certificates of origin, and supplemental documents.

We make document transaction extremely fast, safe, reliable and more cost-effective, and the central archive is available for document viewing or even statistical analysis and forecast.

Our solution provides the benefit that users can state the ownership of their documents with their hardware ledgers, and nobody can steal the documents from them. The solution is extremely safe for all kinds of valuable documentation transfer.

What are the implications behind CXO tokens?

It is true that we are using CXO tokens as a way to pay for services, in addition to good old fashioned USD currency.

Companies do not need to know how to use CXO, as CargoX does everything for them - and they receive a USD invoice for the services provided. If they want to, they can opt to pay with CXO, and that is also a standard procedure.

How exactly does CargoX plan to ‘Uberise’ the trucking industry?

Any impending initiatives in the pipeline.

The most important activity for us is

the digitalisation of the TIR, where we will contribute with our knowledge, experience and solutions. TIR has not only facilitated trade, but also boosted development and prosperity as the world’s only universal customs transit standard and system. Complete digitalisation is long overdue and our technology is developed in a way that TIR can benefit greatly from the CargoX Blockchain Document Transfer System (BDTS) technology, and our neutral, open, secure, and trusted data-sharing ecosystem.

Nonetheless, we have a working and live CargoX platform, where we can add new processes whenever we want, and extending it into specific fields is a breeze.

Our concept of providing a fast, secure and reliable digital solution for transferring highly valuable documentation can be used in any part of the supply chain

How do you see the future of your company? Any competitive disadvantages you will need to overcome?

Our company’s future is bright as we were the first to offer a working, live, neutral and open platform for the shipping industry, powered by blockchain. We are well recognised as the market leader, and we are working on new contracts with promising new companies every day.

We are fully aware of the market and our competition, so of course we have an internal analysis of our position, opportunities, and the obstacles we need to overcome. We have a firm roadmap of product development, and we are always observant of the situation with readiness to adapt to the market.CC

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Interview

Collaboration A win-win strategy Committed to deliver right Business and Supply Chain strategy and Operational Processes improvements, Aviral Consulting has been successful in building long term relationship with clients by offering consistent high quality professional advisory services. Vikas Khatri, Founder, Aviral Consulting Pvt Ltd, in an interaction with Upamanyu Borah, outlines the strategies adopted to effectuate their consulting and advisory values, through a focus on customisation and collaborative innovationvirtues that have driven the company on the Success Ladder.

Tell us about Aviral Consulting’s exclusives when it comes to offering Operational, Business and others advisory services?

Aviral Consulting is a domain focused advisory organisation committed to delivering superior supply chains solutions and maximising business value for clients. We offer a unique blend of business strategy and supply chain consultation by addressing our client’s business issues related to logistics, and support to effectuate business and supply chain decision aligned to their overall strategy. Our service offering is for both the stake holders - logistics/ SCM service provider and service user.

We do this by providing services in four broad categories:• • • •

Business Strategy and Business Transformation advisory Operations and automation advisory Supply Chain solution advisory Optimisation advisory

While many consultants and consulting firms have established practices advising clients on strategies to leverage disruptive trends and technologies, few apply this to themselves. Comment!

Consulting today has moved away from just advisory services which were based on past knowledge from engagements with clients within and outside the industry. Today, most clients

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expect the advisor to be part of the transformation journey and hence look for recommendations to be executed for them.

Technology is disrupting logistics industry in terms of both business model and operating model. In such an environment there isn’t a single dominant operating model that has evolved so far. This means an established consulting firm needs to be able to provide an advice effectively as a highly niche specialised startup advisory firm.

This provides an excellent opportunity for new advisory firms like Aviral in ideating and executing solutions.

What you believe is crucial for advisory services agencies to inculcate to help them focus on addressing long-term projects instead of short-term contracts?

As consultants, we get both long and short-term projects. We are not only focusing on long-term projects, instead we are more interested in a mix of both. The only thing which we focus is value creation for our clients through project deliveries. Especially for startup consulting firms like Aviral, most of our large multinational clients do not want to go for large projects in the first go. In such a scenario, extracting a short-term project is considered the best strategy to penetrate the account and showcase our capabilities to win the confidence of

clients. We have real-time examples of how we started with short-term project for the client and in the next phase converted it into a long-term project.

We strongly believe that nurturing a small-term project and delivering quality output based on size or duration paves way for long-term project and enhanced reach of your services.

Do you see collaborative ecosystems as the ones that exponentially elevate the value created and delivered?

Collaborative ecosystems provide an edge in efficiency and cost optimisation.

The advisory agencies which bring in multiple portfolios of alliances at a requisite agility, quality and consistency, become the most ideal partners for the journey. Today, no function is isolated and many a times to deliver real value you need expertise of more than one function. For startup consulting firms as ours, collaboration works out as a win-win strategy. We remain highly focused on our core strength and as per the need, we engage with other domain specific partners for the required help on a particular project.

Almost all successful businesses collaborate or outsource certain things.

An evolving example, you see even The Big Four of the auditing world are professional service networks who collaborate on strengths and geographies. CC

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Gujarat, INDIA. Ph.: +91-79-2655 4100 / 2657 5757 / 2658 5757, Fax: +91-79-2658 4040 E-mail: info@gsecl.co.in

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FMCG 20

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APRIL 4, 2019, SHANGRI – LA’S EROS HOTEL, NEW DELHI Powered by

INDIA'S LARGEST EVENT FOR FMCG LOGISTICS PROFESSIONALS Meet & network with over 200 FMCG supply chain professionals

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NETWORK WITH Retail Industry, Food Industry, Supermarket/Convenience Stores, LSP’s / Freight Forwarders, Courier Companies, Warehouses, Logistics Parks, Shipping Lines, Airlines, Airports, Ports Terminals/ Depots, Terminals/Depots, 3PL/4PL service providers, Skill Development Sectors, Transportation Companies, Technology & solution providers, Regulatory Bodies, Cargo Terminals, Associations, Banks and Investors Academicians, Research Companies & Government Policy Makers Witness the leading voices from among Policymakers, Industry Players in the segment, Academicians & Researchers, as they discuss debate and ruminate on how the supply chain of this segment will be reshaped with the phenomenal growth and opportunities in India. Also on, how India is positioned to take advantage of the enormous changes in status quo disruptions, technology and practices in the FMCG supply chain.

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

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

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DIAL registers 1 Million Metric Ton Cargo handling in 12 months; becomes India’s first IATA eAWB360 Certified Airport

Videh Kumar Jaipuriar, CEO, DIAL

GMR Group led Delhi International Airport Ltd (DIAL) has registered ‘One Million Metric Tons’ cargo in a year (Nov 2017 to Oct 2018) and also handled highest ever monthly air cargo tonnage of 1,00,091 MT in a single month - October’18. This has placed IGIA’s Cargo handling at 28th position globally and only Indian Airports to be among Top 30 Ranks.

This feat is the result of several new initiatives undertaken by DIAL such as dedicated Transshipment facilities, expansion of Cargo Terminal facility, development of Airport Cargo Logistics

Centre (ACLC), and other advancements in the firld of Digitisation and Technology.

Commenting on the achievement, Videh Kumar Jaipuriar, CEO, DIAL, said, “Delhi Airport has been recognised as India’s Air Cargo Gateway for its handling capacity, efficient processes and service standards.

We thank and extend our sincere gratitude to all the Stakeholders and Trade partners for helping us achieving this significant milestone, sustain this growth and achieve bigger ones as we go along.”

DIAL has also been offered the prestigious certification of “India’s First eAWB360 compliant Airport” by International Air Transport Association (IATA) for its continued pursuance of driving digitisation in its air cargo handling processes.

Rodney D’Cruz, Assistant Director – Passenger & Cargo Services (India, Nepal & Bhutan), IATA, said, “Delhi Airport is the

first Airport in the country to facilitate the adoption of eAWB360, which is a community approach to successfully growing eAWB penetration in a region”.

This breakthrough achievement of DIAL is the result of several new initiatives undertaken at IGI Airport towards digitisation. These include launch of ‘ACMES’ (Air Cargo Message Exchange System) - an e-Freight initiative for acceptance of advance shipment information and a single window platform to facilitate seamless information flow between all stakeholders of Air Cargo community; Cargo Mobile App – for cargo transactions and instant trace and track facility to the End user ; Export Slot Management and RFID based access control for streamlining the truck movement; IATA Message integration in import (FFM/ FWB and FHL) along with Customs EDI Messages.

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Saudia Cargo extends its services to Calicut Airport

Ambuja Cement introduces accident insurance for truck drivers

Saudi Airlines Cargo Company has extended its services to its customers offering a cargo capacity of 60 tonnes a week to Calicut International Airport (CCJ) in Kerala, on the daily operation of Saudi Arabian Airlines passenger Airbus A330 flights- four flights from King Abdulaziz International Airport (KAIA) and other three operating from King Khalid International Airport (KKIA). The move aims to meet the significant increase of demand for cargo services to the Indian Subcontinent, enhancing the company’s operations and logistics.

Commenting on the new destination, Saudia Cargo CEO Omar Hariri stressed that Saudia Cargo is doing its best to support the agricultural products and general cargo of Kerala region exploring every way possible to increase the export from the neighboring cities of Calicut.

Ambuja Cements Ltd., a part of the global conglomerate LafargeHolcim and one of the leading cement manufacturing companies in India, has introduced a comprehensive Group Personal Accident Insurance (GPA) policy for truck drivers, thus becoming the first cement company in the industry to initiate such a pioneering endeavour and reinforcing its commitment to ensure safety and well-being of the stakeholders involved its operations.

The GPA policy with Rs five lakh cover has been designed considering the job nature of truck drivers who are exposed to high risk due to countless hours of highway road journey.

The policy, issued by a reputed leading insurance company, has been effective for the past few months and covers nearly 12000 drivers – who are third-party employees – in case of accidental death or permanent disability (total/ partial).

Niti Aayog urges to open up India’s dredging market to boost ports trade

Krishnapatnam Port reports 7% rise in box transshipment volume

Niti Aayog has urged for the opening up of India’s dredging market to boost trade by its major ports. The government think tank says that the major ports cannot handle very large vessels in absence of proper draft depth. It stressed on attracting more players, particularly international players, in dredging activities to attract large vessels, enabling the major ports to become hub ports.

Foreign players will be attracted to the market if the government takes measures such as consolidating dredging contracts across cohorts of ports and withdrawing, at least temporarily, the right to first refusal given to Indian vendors, it said. To enable major ports to handle large vessels, the government has already made an action plan to increase the draft depth of ports.

Krishnapatnam Port Company Limited (KPCL) has registered a 7 per cent growth in its transshipment volume; clocking 20,600 TEUs for November 2018-19 compared with 19,316 TEU for the same period of the fiscal year 2017-18, making it the largest transshipment port on the east coast of India.

In order to enhance its transshipment service offerings, the port had undertaken a recent expansion program for its container terminal – NCT (Navayuga Container Terminal earlier known as Krishnapatnam Port Container Terminal).

The expansion involves addition of 250 metres of berthlength to the existing 650 metres and erecting three more QCs (quay cranes). Going forward, the port has announced a total extended quay length of 900 metres with 3 new SPP quay cranes, thus bringing the total number of QCs to 8.

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VPT to begin work on cruise, cargo terminal

Maersk unit to open India’s first green warehouse for chemicals in Pune APM Terminals Inland Services, a unit of Danish transport giant AP Moller Maersk Group, is to open India’s first environment approved inland container depot (ICD) for handling chemicals in Pune.

The Ministry of Environment, Forest and Climate Change has given APM Terminals Inland Services blanket approval to store 35,000 tonnes of chemicals of all types, except explosives and radioactive chemicals, at its facility located 150 km from Mumbai.

The ICD can handle 60,000 containers a year. It has 100,000 sq ft of warehouse space, half bonded and half non-bonded, besides 50,000 sq ft of yard space to store containers.

The move is aimed at supporting India’s chemical industry, currently estimated at $200 billion, and accounting for about 3 per cent of the global market. By 2025, the local chemical industry is expected to double to $400 billion, nudging multinational chemical companies to set up base in India.

With the Centre giving its clearance, Visakhapatnam Port would take up construction of a cruise and coastal cargo terminal in 2019, according to Chairman M T Krishnababu.

He said the port had set up the command and control centre to streamline the functioning of the port and to improve customer satisfaction. The centre, which would be operational all the time, would monitor all operations within the port premises.

Cruise berth, terminal: Krishnababu said the cruise berth and terminal work would start in a few months’ time, with central financial assistance. The Ministry of Tourism had agreed to bear half the cost of Rs 77 crore needed for the project.

It would be given as a grant. He said a cruise vessel - Silver Discoverer - would make three calls in January and February, giving a boost to tourism here.

Cargo-handling: Krishnababu informed that the cargohandling target for the current financial year (2018-19) is 66 million tonnes, as against 63.54 million tonnes handled in 201718. “We achieved 43.03 million tonnes by the end of November, as against 40.95 million tonnes during the corresponding period in the previous financial year. We are confident of achieving the target - 66 million tonnes,” Krishnababu said in a statement.

Adani Ports delivers 50 US-made GE locomotives to Railways Adani Ports and Special Economic Zone (APSEZ) said it has concluded the import and delivery of fifty US-made General Electric (GE) locomotives to Indian Railways.

All 50 locomotives were manufactured by GE Electromotive Division in the US and imported to Mundra port.

“APSEZ successfully concluded the import and dispatch of 50 GE Transportation locomotives from Mundra port for the Indian Railways with full customer satisfaction and ‘zero’ incident. All 50 locomotives were manufactured by GE Electromotive Division in the US and imported at Mundra port for the Indian Railways, a first for Indian shopping and logistics,” the company said in a statement.

The final locomotive was handed over to the Indian Railways at the Roza Loco Shed (UP) on November 23, 2018. The commissioning of the locomotives was completed in the period between October 2017 and November 2018.

76 CargoConnect - JANUARY 2019

Projects worth `44,605 cr underway for rail connectivity to ports As many as 52 projects for rail connectivity to ports are underway entailing an investment of `44,605 crore. The Indian Port Rail Corporation Ltd (IPRCL) and the Ministry of Railways has taken up 32 projects worth `18,253 crore across nine major ports, of which eight projects worth `175 crore have been completed, a Shipping Ministry official said.

In addition, 23 rail connectivity projects worth `24,877 crore identified under Sagarmala have being taken up by the Ministry of Railways, out of which seven projects entailing `2,491 crore investments have been completed.

Another 15 rail connectivity projects worth `4,193 crore have been taken up, out of which three projects worth Rs 52 crore have been completed. A total of 52 projects with an investment of `44,605 crore are in various stages of implementation by these agencies, while 18 projects have been completed.

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Govt to announce international UDAN routes soon

Allahabad nee Prayagraj will get a new civil “airport complex”, created by the Airports Authority of India (AAI) in a record time of 11 months. A new terminal and four additional aircraft parking bays have been built at the Bamrauli Airport at a cost of `164 crore. This terminal can handle upto 300 passengers in an hour and allows Allahabad to have more commercial flights just ahead of the Kumbh Mela that starts mid-January.

The new terminal has been built in 50 acres of land that was given by the state government. Compared to the old terminal which could handle a maximum of 50 passengers (25 arriving and 25 departing) in an hour, the new one has a peak hour capacity of 300 passengers.

The government is soon to announce the routes under the international version of air connectivity scheme, also known as Ude Desh ka Aam Naagrik (UDAN), with flights expected to operate from Guwahati, as per official sources.

The scheme seeks to provide air connectivity at affordable costs to select overseas destinations. Proposals for selection of airlines under the international air connectivity scheme (IACS) UDAN were invited in October. Bids for the international version were invited by the Airports Authority of India (AAI) on behalf of the civil aviation ministry and the Assam government.

An international air connectivity fund (IACF) for providing financial support to airlines participating in the scheme will be set up.

According to the official cited earlier, routes to be awarded under UDAN 3 are likely to be finalised by the end of this month.

Hermes Logistics wins Hyderabad contract for cargo systems

Ministry of Civil Aviation, AAI announce Global Aviation Summit 2019

Hyderabad International Airport, part of the GMR Group, has signed with Hermes Logistics Technologies (HLT) to implement new Cargo Management Systems at its terminals.

HLT and GMR Group’s subsidiary GMR Hyderabad International Airport Ltd (GHIAL), have signed a five-year contract for the new Cargo Management Systems which includes an upgrade schedule to ensure Hyderabad Airport’s cargo terminal will continue to operate with the most sophisticated IT systems available.

“GMR’s team requested timeline from contract signature to production was an extremely ambitious 60 days,” says Yuval Baruch, CEO, Hermes Logistics Technologies. “I am proud to say that HLT rose to the challenge and we managed to go live just 58 days after signing the contract,” he adds.

In its endeavour to recognise the fast growth of the aviation sector, the Ministry of Civil Aviation and the Airport Authority of India (AAI), in collaboration with the Federation of Indian Chambers of Commerce & Industry (FICCI), has announced the Global Aviation Summit, with an overarching theme of “Flying for all – especially for the next 6 billion”.

The Summit, which is supported by ICAO, IATA, ACI and CANSO, will be held on 15-16 January, 2019 at The Grand Hyatt in Mumbai. The summit aims to focus on the celebration of ‘Flying for All’ and to provide a platform to the aviation fraternity to highlight the challenges of the sector in the newly developing growth spots. It will provide a platform to the stakeholders to brainstorm over the future of the aviation industry and identify the growth areas.

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Four major ports sign MoU to buy government stake in DCI

Boeing forecasts demand for 2,300 new airplanes in India

Four major port trusts have signed a MoU among themselves to acquire the government’s 73.44 per cent stake in Dredging Corporation of India (DCI).

Under the MoU, Visakhapatnam Port Trust will buy a 19.44 per cent stake from the government while Jawaharlal Nehru Port Trust, Deendayal Port Trust and Paradip Port Trust will take an 18 per cent stake each. SBI Caps has been mandated to undertake due diligence of DCI. Apart from assisting the four port trusts in arriving at a valuation for the stake, SBI Caps will also liaise with SEBI to get the buyers an exemption from a mandatory open offer to retail public investors.

This is because the deal between the Central governmentowned entities will not result in a change in control — DCI will remain with the government.

Boeing raised its long-term forecast for commercial airplanes in India as unprecedented domestic passenger traffic and rapidly expanding low-cost carriers (LCCs) drive the need for 2,300 new jets – valued at $320 billion – over the next 20 years.

This year alone, more than 10 million passengers, on average, traveled within India each month. According to Boeing’s Commercial Market Outlook (CMO), India’s commercial aviation industry has achieved 51 consecutive months of double-digit growth.

“The Indian economy is projected to grow by nearly 350 percent over the next two decades to become the third largest economy in the world,” said Dinesh Keskar, senior vice-president of sales for Asia Pacific and India, Boeing Commercial Airplanes. “This will the need for more new fuelefficient short- and long-haul airplanes.”

‘Request for proposal’ for developing logistics portal likely by January

RRTS project likely to miss 2023 deadline

The National Logistics Portal — a digital platform being developed by the Commerce Department to bring all stakeholders in the logistics sector on board to cut down transaction cost and time for businesses — will help various infrastructure Ministries and Departments design their expansion plans better.

“The logistics portal will help identify the most cost-effective logistics options for businesses. For example, there may be more movement of a particular commodity by road for which our portal may show that the railway option would actually be cheaper as it is a bulk commodity. We may then realise that the railway is not being used as there are not enough terminals available for the product.

We could then discuss the issue with the Railway Ministry to see if the required infrastructure is created,” said N Sivasailam, Special Secretary, Logistics, Commerce & Industry Ministry.

The Commerce Department has already started holding discussions with line Ministries, such as Shipping, to identify where there is need for more terminals, he added.

80 CargoConnect - JANUARY 2019

The Regional Rapid Transit System (RRTS) project of Ministry of Housing and Urban Affairs (MoHUA) likely to miss the deadline of 2023 due to the difference of opinion over the construction of a Metro station at Sarai Kale Khan, according to sources.

The MoHUA is suggesting an elevated Metro station at Sarai Kale Khan, while Delhi government is of the view that underground Metro station should be built there.

Officials in the MoHUA said, “Delhi government’s proposal for constructing an underground station is a way of saying no to the project. This is being done to ensure that the project does not take off.”.Adding that constructing an underground station will take three more years of time and the cost of the project will go up by `5,000 crore.

On the other hand, an official in the Delhi Transport department said, “Space will be an issue if the elevated metro station is constructed. Delhi government has suggested National Capital Region Transport Corporation (NCRTC) — which is implementing the RRTS project and Delhi Integrated Multi-Modal Transit System (DIMTS) to sit together and come up with a suitable option.”

gistics o L e h t tent for ad format n o c t n t releva n an easy to re s o m e ing th nals i Present stry professio indu y red b Powe

ation l u c r i Total C0000/1 Airports Freight Forwarders Airlines Indian / Multinational LSP’s Export Houses / Buying Houses Ground Handlers Important Association of Logistics Industry in India Relevant Govt. Dept. and Ministry

05% 15% 25% 25% 15% 5% 5% 5%

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EFL facilitates significant cross-border logistics movement between Bangladesh and India

Lufthansa Cargo launches ‘DGD.online’ cloud application for dangerous goods

EFL achieved a significant milestone in cross-border trade by creating a tailormade logistics solution and acting as the key facilitator to handle the first bonded Cross-Border Land-Air Transshipment, on behalf of a leading European retail brand.

For this Transshipment, the EFL team of Bangladesh and India collaborated in handling the cargo at the point of origin. The transfer of cargo weighing 4.1 tonnes from Bangladesh trucks into India, trucks took place at the Benapole (Dhaka) – Petrapole (India) border, moved in GPS enabled trucks to Kolkata airport and air freighted to reach the final destination in Europe within the stipulated time-frame.

CEO of the EFL Group, S. Senthilnathan said, “We are proud to enrich ties between India with Bangladesh through this movement and alternative solutions of this nature will enable us to enhance efficiencies of our logistics operations to promote international trade.”

In a first for a cargo airline, Lufthansa Cargo has introduced an application available for digital creation of the transport documents required for dangerous goods. The new DGD. online offering will strongly support shippers and can be used in equal measure for shipments sent via air, road and sea.

The developers, using input from pilot customers, focused on achieving a very user-friendly application with validation and convenience features designed to add value.

“With DGD.online, we are further expanding our digital offering and striving to make it as easy as possible for our customers and partners to use electronic services. In this way, we can all leverage the potential that digitisation has to offer and make air cargo handling even faster and more efficient in the future,” said Boris Hueske, head of digital transformation at Lufthansa Cargo.

Oman Air wants to spread wings, writes to India’s Civil Aviation Ministry Oman Air has approached the Indian Civil Aviation Ministry with the aim to increase its reach to Ahmedabad, Mangalore and Amritsar. The Gulf carrier, which completed its 25th year of service in India, said that by June 2019, it will begin flights from Athens to India.

Eng Abdulaziz Al Raisi, CEO, Oman Air said, “We have approached the government to give us the permission to fly more often to India and to other destinations as well. However, as per the bilateral policy, at the moment, we have reached a saturation.”

Currently, the airline has flights to Oman three times a day from Mumbai, Delhi and Hyderabad; two times a day from Bengaluru, Lucknow, Cochin and Chennai; and daily from Jaipur and Goa. Sunil VA, regional vice-president ISC, Oman Air, said Oman received 3.21 lakh Indian visitors in 2017, registering a year-onyear growth of over 7 per cent. The estimated growth for 2018 is 18 per cent.

82 CargoConnect - JANUARY 2019

Saudia Cargo brings the international Cirque du soleil to Riyadh Saudi Airlines Cargo Company transported 400 tons of equipment and supplies for the international event Cirque du soleil aboard four B747-400 freighter flights from Zagreb, Croatia to the Saudi Capital Riyadh, where the event is taking place from Dec 17-29.

Saudia Cargo’s CEO, Omar Talal Hariri, said that the company is proud to be a part of this entertainment event, providing all its logistical capabilities, and always keen to extend cooperation and join efforts with all stakeholders to achieve the Kingdom’s Vision 2030.

“During the year 2018, Saudia Cargo has contributed to so many events, and festivals, due to its logistical capabilities in terms of its freighter fleet, charter services or ground handling services,” Hariri said.

international news

COSCO Shipping Ports and Abu Dhabi Ports open joint terminal IATA reveals solution for airlines to share turbulence data The International Air Transport Association (IATA) has unveiled its Turbulence Aware data resource that will enable airlines to avoid sudden airflow changes while planning routes during flights. The platform is capable of pooling and sharing conditions data in real-time, helping improve an airline’s ability to forecast and avoid turbulence.

Currently, airlines depend on pilots and weather advisories to reduce the impact of turbulence on their operations.

IATA director general and CEO Alexandre de Juniac said: “Turbulence Aware is a great example of the potential for digital transformation in the airline industry. The airline industry has always cooperated on safety, its number one priority. Big data is now turbocharging what we can achieve. In the case of Turbulence Aware, the more precise forecasting of turbulence will provide a real improvement for passengers, whose journeys will be even safer and more comfortable.”

COSCO Shipping Ports (CSP) and Abu Dhabi Ports have inaugurated the CSP Abu Dhabi Terminal at Khalifa Port – positioning Abu Dhabi as the regional hub for COSCO’s global network of 36 ports and further connecting the Emirate to the major trade hubs along the Belt and Road Initiative.

The deepwater, semi-automated container terminal includes the largest container freight station in the Middle East, covering 275,000 m2. The terminal is also the first international greenfield subsidiary of CSP, a subsidiary of China COSCO Shipping. CSP has so far invested AED1.1Bn (US$299M) in capital expenditure on construction and machinery at the terminal.

Abu Dhabi Ports has earmarked AED10Bn in investment that will increase capacity at Khalifa Port from the current 5M TEU to 9.1M TEU, which includes boosting capacity at Terminal 1 to more than 5M TEU. The CSP Abu Dhabi Terminal has a design capacity of 2.5M TEU and will begin with a handling capacity of 1.5M TEU, with 1,200 m of quay. The water depth of the terminal is 16.5 m, allowing it to accommodate mega-vessels typically carrying in excess of 20,000 TEU.

Turkish Cargo makes its corporate website more user-friendly Designed to be less complicated but more functional, corporate website of Turkish Cargo is updated and now accessible all around the world. The new interface will enable all users to reach any kind of information about the exclusive world of Turkish Cargo.

On the newly-released website, users will not only be able to perform all frequently-used processes such as flight schedule, cargo tracking, terminal charges, flight network, fleet and station details inquiry, but also can reach any kind of up-to-date information about the products, contents and services provided

by Turkish Cargo to its clients in 123 countries around the world.

Designed with the previous user experiences in mind, the new interface is compatible with laptops and desktops, besides various mobile devices such as tablets and smartphones, and aims to carry the user experience level up to the top point in functionality.

Panalpina joins hands with Plug and Play

Panalpina has joined the global innovation platform Plug and Play, an active accelerator program in the area of supply chain and logistics.

“This partnership will allow us to get access to digital start-up companies in Plug and Play’s global network and identify attractive pilot and investment opportunities,” says Luca Graf, head of the Panalpina Digital Hub. “We are particularly interested in cooperating with start-ups that create solutions in the fields of blockchain, IoT, asset tracking, advanced analytics and supply chain optimisation.”

With over 6,000 start-ups and 280 official corporate partners, the platform has created start-up ecosystems in many industries including supply chain and logistics (Logtech). Companies in Plug and Play’s community have risen over $7 billion in funding, and successful portfolio exits included Dropbox, PayPal and SoundHound.

JANUARY 2019 - CargoConnect

83

APPOINTMENTS FFFAI elects S Ramakrishna as Chairman Federation of Freight Forwarders’ Associations in India had its eighth Executive Committee Meeting on November 30 - December 1, 2018, and elected S Ramakrishna as Chairman of FFFAI for the period December 1, 2018 - 30th September, 2019, unanimously.

With almost three decades of experience, and apart from managing three companies, Balaji Mariline Pvt Ltd; Work Place Ergonomics Pvt Ltd; and Work Place Synergies Pvt Ltd, in leadership roles, Ramakrishna have been participative in various chambers of commerce in Delhi and contributed to the industry perspective at various levels and forums.

Air France names Anne Rigail as new CEO Anne Rigail, previously EVP Customer at Air France, has now been appointed as the CEO. In 1996, Rigail was appointed head of Air France Customer Services at ParisOrly. In 1999, she became director of Passenger and Baggage Connections at the Paris-Charles de Gaulle hub, and subsequently head of Customer and Baggage Products for Ground Operations. Later in 2005, she was appointed head of the Paris-CDG Hub Operations Control Centre, and in 2009, she became VP Ground Operations at Paris-Charles de Gaulle. In 2013, she became EVP In-flight Services, in charge of Cabin Crew and in 2017 was appointed EVP Customer.

Tristan Koch to join Coyne Airways as MD Coyne Airways has roped in Tristan Koch as its new managing director, as part of its ongoing global expansion plans. Koch will take charge starting January 2019.

Based in London, Koch’s responsibilities will cover original markets Coyne pioneered around the Caspian, as well as 50 markets in the Middle East and Africa.

Coyne Airways founder and chief executive officer, Larry Coyne says, “The appointment of Tristan marks an important landmark in Coyne’s history as we celebrate 25 years of serving niche markets. We are expanding our existing business and extending our operations to new territories, and Tristan is a part of that planned growth.”

84 CargoConnect - JANUARY 2019

Raj Subramaniam named FedEx Express President and CEO FedEx has announced Raj Subramaniam, currently executive VP, chief marketing and communications officer of FedEx Corporation, as the president and CEO of FedEx Express.

Subramaniam began his career in Memphis and subsequently moved to Hong Kong. Later, he took over as president of FedEx Express in Canada before being senior VP of international marketing. He was then promoted to executive VP of marketing in 2013 at FedEx Services, prior to being named executive VP and chief marketing and communications officer at FedEx Corporation in 2017.

Lars Krosch becomes MD and COO of Time:Matters Lufthansa subsidiary Time:Matters has appointed Lars Krosch as its new managing director and chief operating officer. Krosch who was previously Vice President - Sales & Product development.

A Time:Matters veteran, he has been with the company, now under the wings of Germany’s flag carrier, since 2009, in a variety of managerial positions Chief executive Alexander Kohnen welcomed the appointment, describing Krosch as a ‘trusted’ member of the team.

Simon Messner promoted to executive VP at Swissport Simon Messner, currently senior VP Europe, will assume the role of Executive Vice President “Performance & Innovation” on Group Executive level at Swissport International. In this role, he will drive Operational Standards, manage Quality, Health, Safety and Environmental standards and oversee Commercial Governance. Future Product Development, Innovation and Fleet Management will also fall under the scope of this new unit, contributing towards a lean and effective setup at the Zurich headquarters.

events

DCCAA holds 35th AGM, discusses ways to tackle challenges

Delhi Customs Clearing Agents Association (DCCAA) organised its 35th Annual General Meeting (AGM) recently at Panchsheel Rendezvous, New Delhi. According to PS Atree, President, DCCAA, approximately 200 members of the Association attended the AGM and discussed on previous year’s activities, achievements, etc. The AGM also outlined the agenda for the ensuing term of the Managing Committee. “Our focus area would be Code of Conduct, best practices and skill development to withstand with the future challenges/ trends in the Customs Broking & Freight Forwarding businesses,” said Atree.

At this AGM the DCCAA also felicitated S Ramakrishna, who was recently unanimously elected as Chairman, FFFAI. Vinod Chowdhry, Past Chairman, FFFAI, welcomed Ramakrishna with a bouquet of flower on behalf of the Managing Committee of DCCAA.

V-Trans bags 2 awards at CII SCALE Awards 2018 V-Trans (India) Ltd has been honoured with the highly prestigious award for ‘Best Road Transport Company Award’ and ‘Best practices in Training & Development’ by the CII Supply Chain and Logistics Excellence Awards- SCALE 2018 at an award ceremony held recently in J W Marriott hotel, Pune.

The award was accepted by Aditya Shah, Executive Director, V-Trans (India) Ltd. Speaking on the occasion, Aditya Shah, Executive Director, V-Trans (India) Ltd said, “It is an honour to be recognised as the best road transport company by such a prestigious forum like CII SCALE Awards. At V-Trans we have been working to provide the latest cutting edge, innovative solutions, and best-in-thebusiness infrastructure to all our customers across the country. As a leading logistics and transportation provider we are constantly looking to develop new and advanced solutions and ways which can benefit the logistics sector and be beneficial for the consumers.

Employees at V-Trans are considered as part of the V-Trans family and the company invests substantially in their Training and Development. Training programs like “NexStep” and “Utkarsh” are organised to develop the future managers and branch in charges respectively.” He further added, “These awards are testimony to the dedication and hard work of our employees. Awards like these are a great encouragement and motivate the employees. They also speak high of our company’s resolve to play a leading role in shaping the future of supply chain & logistics industry and to strive for excellence in leading this company.”

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events

ACCD hosts spectacular Annual Ball Event The Air Cargo Club of Delhi hosted yet another breathtaking and a magnificent Annual Ball on December 22, 2018, at Hotel Andaz Aerocity, New Delhi. For this biggest event of the year, club certainly wanted to focus on enhancing the branding of this event by giving it a new makeover. The event was made spectacular and energetic by Manj Musik, an International music sensation and IIFA performer who nailed the show by his performance. It was indeed a pleasure to see the industry giving a strong support throughout the exhilarating evening, with over 600 people from our fraternity attending the event.

The two bumper lucky draws gave everyone a chance to try their luck on plenty of hampers like I phones, LED’s and various tickets sponsored by several airlines. The event was further complemented by multiple fully loaded bars and scrumptious food which was being served throughout.

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events

APM Terminals Pipavav organises Trade Meet in Jaipur APM Terminals Pipavav successfully hosted a trade meet in Jaipur, which was attended by more than 170 people.

The company welcomed trade members from leading Shipping Lines, Freight Forwarder (FF), Custom House Agent (CHA’s), CONCOR officials and private ICDs. The primary objective of the trade meet was to bring together key stakeholders on a common platform to promote business networking and provide opportunities for discussions on business related issues.

Keld Pedersen, Managing Director, APM Terminals Pipavav, presented the organisation’s value proposition and infrastructure competencies. Mihir Mishra – General Manager Commercial – APM Terminals Pipavav conveyed aspects of port connectivity with hinterland and various services provided by the port. Ajay Verma – General Manager – APM Terminals Pipavav shared highlights, challenges and actions undertaken by the port.

Pedersen was felicitated by the senior members of shipping trade of Rajasthan for his contribution to the trade.

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

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

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

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

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

Levelers are intended to facilitate loading and unloading operations in areas where perpendicular parking of the trucks to the building is not provided. One of the main advantages is that these can be installed and upgraded without changing the design of the main building. Their design allows using all types of dock levelers, with hinged or telescopic. Installation is performed using surface method and is made fast due to the pre-assembled components.

Main advantages: • maximum use of warehouse space • the ability to upgrade without rebuilding the main building • quick installation For Further Details visit: http://geapl.co.in/dock-equipment.html JANUARY 2019 - CargoConnect

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upcoming events PHARMACONNECT 2019 Organised by Surecom Media, PHARMACONNECT 2019 is a one-day conference to be held in Mumbai on January 17, 2019. Dedicated to the pharma supply chain professionals, the conference will offer knowledge sharing & networking, all Under one Roof.

To know more visit www.pharmaconnect.in Global Logistics Show Taking place from Jan 17 - 19, 2019 at Hitex Exhibition Center, Hyderabad, The Global Logistics Show will offer an unparalleled platform for supply chain and logistics professionals to meet, greet and transact business at a comprehensive yet engaging industry forum reviewing the main themes in the sector, from Supply Chain, Logistics, Warehousing, Material Handling, Procurement to Last mile Delivery.

To know more visit www.globallogisticsshow.com

18th Annual Cool Chain – Temperature Controlled Logistics Three day event scheduled from January 28 - 31, 2019 in London, United Kingdom. The event will take all delegates on a journey from planning their temperature controlled supply chain, through the different stages and mode of transport (though difficult regions, various temperature zones, on multiple forms of transport, right through the tricky last mile of distribution and back to re-planning.

To know more visit www.temperaturecontrolledlogistics.com

13th World Cargo Symposium Organised by IATA, the 13th annual World Cargo Symposium, to be held at Marina Bay Sands in Singapore from March 12 - 14, 2019, will bring together key stakeholders from the entire air cargo supply chain, with featuring plenary sessions, specialised tracks, workshops and executive summits, tackling aspects related to Technology & Innovation, Security & Customs, Cargo Operations, and Sustainability.

To know more visit www.iata.org ApparelCONNECT 2019

Deemed to be India’s biggest event for apparel logistics professionals - APPARELCONNECT 2019, organised by Surecom Media is scheduled on May 16, 2019. The event will offer great opportunity to meet and network with over 200 apparel supply chain professionals.

To know more visit www.apparelconnect.in

air Cargo Europe The world’s largest exhibition and conference for the air cargo industry - Air Cargo Europe will be taking place from June 4 - 7, 2019 in Munich as part of transport logistic. Four days of exhibition and a half-day conference will provide air cargo professionals the perfect platform to expand knowledge, network and initiate business.

To know more visit www.aircargoeurope.com

COLDCHAINCONNECT 2019 Organised by Surecom Media, the first edition of COLDCHAINCONNECT 2019 is a one-day conference to be held on July 25, 2019. Dedicated to the cold chain professionals, the conference will offer knowledge sharing & networking extensively, all Under one Roof.

To know more visit www.coldchainconnect.in 26th World Road Congress Organised by the World Road Association (PIARC), The XXVIth World Road Congress will take place from October 6 - 10, 2019 in Abu Dhabi, United Arab Emirates. With more than 1,200 international experts, leaders in the field of transport and active in the 22 Committees of PIARC, this Congress will focus on “Connecting Cultures - Enabling Economies”.

To know more visit www.aipcrabudhabi2019.org

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The Highest Circulated/Read & Referred Logistics Industry Magazine

PEOPLECONNECT Mahendra Shah

Managing Director, V-Trans (India) Ltd What motivated you to be a part of the logistics industry? How has been your journey so far?

I wanted to pursue law, become a CA, or go abroad.

However, as business is in our DNA, so later I decided to join the family business and use my educational knowledge and management skills to grow the business. I wanted to prove myself and take the business at par with multinationals by systematising the organisation and thereby bring much deserved respect to the entire sector.

Further, although I travel a lot for business, I love traveling for pleasure, both within the county & outside.

Any message you would like to give to those who aspire to work in this industry!

I would request the industry aspirants to follow and practise regularly on the values that I have mentioned and always work on them with a long term vision. CC

So far, the journey has been successful and fruitful. It is work in progress, we have grown from a single truck business to a multi modal integrated logistics service provider.

The biggest challenge you have faced in your career?

The biggest and emotionally the toughest decision I took was changing the corporate identity from Vijay Transport to V Trans, which was in accordance to the changing time and company’s growth and diversification. Another critical and tedious task for me was to consolidate the structure of the company which was earlier scattered into eight different legal entities with different accounting software and reporting formats.

Your success mantra? And, whom you consider your guru in business?

I have been a firm believer of the following: • Be Passionate.

• Always strive to do something better than what you did yesterday.

• Be reliable and ethical in dealings, trust is priceless.

• Get into details.

• I consider Mr Modi as my guru. We share similarities when it comes to working style. For instance, if Mr Modi is sure that something is for the larger good of the society, he will execute it.

I am a fitness freak; my daily schedule will always have time for yoga, meditation and exercise. I also dedicate time on creative writing; I am personally involved in our in-house magazine ‘Vijay Path’ and maintain my literary works exhaustively.

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Interviewed by Upamanyu Borah

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

HAPPY NEW YEAR 2019

80,000+

Sq.Mtr total warehouse area across six airports

100+

Customers trust us to deliver their goods on time

600,000+

Tons general cargo handled per year

150,000+

Tons perishable cargo handled per year

12,000+

Sq. mtr cold storage area across three airports

2000+

employees across our network of airport warehouses