Cargo Connect November 2019

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India’s booming warehousing landscape

32

Demystifying the opportunities in long haul logistics

44

Digital Procurement: Delivering through the cumulative effect

A Future of Growth awaits the Cold Chain Industry in India

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contents

Volume X • Issue XII • November 2019

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

32

22 COVER STORY

A future of growth awaits the Cold Chain Industry in India

SPECIAL FEATURE

Demystifying the opportunities in Long Haul Logistics

INTERVIEW

FOCUS

India’s booming warehousing landscape ...............................................10 FOCUS

Digital Procurement: Delivering through the cumulative effect..............................44 infrastructure

N Sivasailam, Special Secretary (Logistics) ...56 Rajkumar Shrirao, President & Director, Aveny Industries & Logistics Parks .................58 Samir Gandhi, Managing Director, Gandhi Automations .........................................60 MichaŁ Grochowski, Cargo and Mail Director, LOT Polish Airlines .............................62 Shankar Shinde, Chairman-Elect, FFFAI ........64 Rajiv Lal, Managing Director, Divine Thermal Wrap ........................................66

FRONTLINE ..............................................6 HUB .........................................................8 TECHNOLOGY ..........................................54 NEWS ...............................................72-77 SPOTLIGHT .............................................78 EVENTS ............................................80-82 UPCOMING EVENTS ................................83 APPOINTMENTS .....................................84 SHIPPER SPEAKS Vikas Sharma, AVP- Supply Chain, Pepperfry............68

Reporter Pallavi Jain Director Ajeet Kumar Marketing Manager Rahul Arora Marketing Executive Akash Gupta Rahul Jain Accounts & Administration Lavish Thakur Designer & Visualiser Ashok Saxena

All materials 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

Anil Kumar Mishra, National Logistics Head, South Asia, pladis Global...........................................70

PEOPLECONNECT $500 mn invested in industrial and logistics sector since GST rollout...........52

30,324

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Regional Head- Supply Chain Services, West and Central Asia & Africa, Maersk ......................86

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frontline The UAE has committed US$75 billion investments in India’s infrastructure sector. Now it is up to all of us to make that commitment a reality. While some UAE companies might be dealing with some concerns and pending issues, all efforts are being made to resolve existing issues by the specialised Joint Working Groups formed for this purpose.

Piyush Goyal, Commerce and Industry and Railways Minister

Today, logistics cost in India is about 10-12 per cent of the value of goods. Prior to GST, about 14 per cent of the total cost of goods accounted for logistics (in India), a large cost and friction in doing business, while it was 10-11 per cent for Brazil, Russia, India, China and South Africa (BRICS nations) and 9-10 per cent for developed countries.

The government is considering enforcing

a law, New Indian Ports Bill, to compete with the private ports. The

bill aims in enabling sustainable growth and development of all ports in India in line with international maritime obligations.

Hyderabad International Airport has witnessed an encouraging demand for Cargo Charters in the

segments viz. Pharmaceuticals, Engineering Goods, Telecom, Defence and Aerospace Commodities. The terminal has

handled over 148 thousand tonnes of cargo in FY 19.

India experienced high growth in

parcel volumes in 2018, up 21 per cent year-over-year to 2.5 billion,

and revenues achieved a CAGR of 20 per cent, according to the Pitney Bowes Parcel Shipping Index.

India will soon have its own index to estimate the costs of logistics in its top nine export sectors including

agriculture, leather, apparel and, gems and jewellery. The department of commerce has begun an exercise to develop sector-specific indices to estimate the logistics costs.

6

CargoConnect - november 2019

Rajeev Ranjan, Special Secretary- GST Council

India is expected to have the largest number of aircraft flying by its scheduled airlines latest by December this year, surpassing the previous record of 616 aircraft in January this year. Domestic air passenger traffic is expected to clock up high single-digit growth — between seven and nine per cent in 2019 — benefiting from the induction of aircraft by airlines.

Arun Kumar, Director General, Directorate General of Civil Aviation (DGCA)

The Indian Railways has received a demand from top automotive companies for new rakes that are being tested with the design and development arm of the Indian Railways. We have held discussions with various industries, and they have requested that freight charges of the Indian Railways come down. This will help pump demand from different sectors.

Purnendu S Mishra, Member Traffic, Railway Board

There is big interest of foreign players to invest in infrastructure in India because the country will probably be the hottest growth play in the next 10 years in this area. I think companies are keen to invest if they see that the boundary conditions moving in the direction to facilitate this growth in an effective way.

Detlev Mohr, Senior Partner, McKinsey

hub

Shipping Ministry planning National Port Grid for better synergy

8

CargoConnect - november 2019

hub

T

he government is set to form a committee to assess the potential of over 200 non-major ports in the country, and link them with major ones to form a national grid for ports.

According to Mansukh Mandaviya, MoS (I/C) for Shipping and MoS Chemical and Fertilizers, the move will help increase India’s export-import (EXIM) cargo.

Development plan to be ready within six months

Mandaviya said that the government is looking at developing synergy between the major and minor ports so that together they can bring port-led development in the country. He added that all 204 minor ports in the country can become important centres of sea trade if revived. “A development plan for ports and National Port Grid will be ready within six months. An extensive study will be done for the revival of each port, identifying the specific cargo linked to it and the downstream industry,” Mandaviya informs citing a Shipping Ministry release. “The Centre will share the study findings with the states so that the non-functional minor ports can be developed and made functional,” adds Mandaviya.

also increases the efficiency of port operations by implementing recommendations like digitisation of processes, mentions Mandaviya. Talking about port security, Mandaviya ensures that international levels of security would be ensured at every port in the country.

India’s second riverine multimodal terminal

The Central government has focussed on building up inland waterways in the country to increase trade and connectivity. Last month, PM Narendra Modi inaugurated India’s second riverine multi-modal terminal (MMT) built at Sahibganj in Jharkhand on September 12. The Prime Minister inaugurated a state-of-the-art terminal through a two-way digital communication system at an event in Ranchi, Jharkhand. The multimodal terminal took two years to complete, constructed on the river Ganga under Jal Marg Vikas Project (JMVP) at a cost of `290 crores.

Over 200 non major ports and a National Port Grid will be developed soon.

Comprehensive plans will be provided for development of minor ports which could boost inland waterways and coastal shipping.

Importance of coastal shipping and inland waterways

Underlining the importance of coastal shipping and inland waterways in the development of the country, Mandaviya says, “The cost-effective and pollution-free water transport can reduce logistics costs in the country, making Indian goods more competitive in the global markets.” The Ministry is planning an expansion of port capacity through the implementation of infrastructure development projects and

Manpower Planning

There has been a shortfall of skilled manpower in the shipping industry since 1990s, which led to t he appoi nt ment of a Committee on Maritime Education & Training (COMET). The rapid evolution of this industry in India both in terms of scale and scope of services is creating the need for a whole new set of skills along with an ever increasing requirement of skilled and trained manpower. According to Mandaviya, in the recent times, the establishment of research based institutes like Global Alliance in Management Education (CEMS), Centre for Inland and Coastal Maritime Technology (CICMT) at IIT, Kharagpur and National Technology Centre for Ports, Waterways and Coasts (NTCPWC) at IIT, Madras will help the maritime industry to get indigenous research and skilled manpower. CC

november 2019 - CargoConnect

9

India’s booming

warehousing landscape

10 CargoConnect - november 2019

focus

As India’s prominence as a global logistics hub grows, the segment is witnessing the entry of several global players and increasing awareness of domestic players to enhance the quality of offerings. As such, the increase in the leasing of warehousing space rose up by 31 per cent to over 13 million sq ft across eight major cities in the first half of 2019, while investment of more than US$ 200 million was witnessed in the industrial, technological and logistics real estate segment.

Ritika Arora Bhola

I

ndia’s economic slowdown seems to have no major effect on the Indian warehousing indu st r y. De m a nd for warehousing space has picked up in first half of 2019 o n t h e b a c k o f growth of third-party logistics (3PL), engineering & manufacturing firms, and E-commerce segment that is leading to increased leasing by e-retailers.

According to a latest report titled 'India Industrial and Logistics Market View H1 2019,' presented by the property consultant CBRE, the demand for leasing of warehouse spacewent up by 31 per cent to over 13 million sq ft across eight major cities in the first half of this year. The report says the demand for warehousing/logistics space was mainly driven by the third party logistic firms, which absorbed 56 per cent of the total space.Forecasting the future, the report claims that there will be 344 million sq ft of warehousing space in India by 2022, more than double the current capacity of 169 million sq ft, and triple the capacity that existed in 2015.

Global real estate consulting firm- Knight Frank’s recent report titled 'India Warehousing Market 2019’ says that warehouse space leasing has witnessed a growth of 77 per cent year-on-year from April 2018 to March 2019 period.The report mentions that the manufacturing sector which accounts for 80 per cent of warehousing market is estimated to be at 68 million sq m (739 million sq ft) in 2019 and is expected to grow to 86 million sq m (922 million sq ft) by 2024.

The report further states that demand of large sized warehousing in tier II cities is also on the rise and is showing a big growth potential. Kolkata witnessed highest year-onyear surge with 191 per cent in the warehousing leasing volume followed by Bengaluru and Hyderabad which witnessed growth of 147 per cent and 96 per cent respectively.

While cities such as Coimbatore, Guwahati, Ludhiana, Nagpur and Lucknow are also gaining prominence in terms of the growing demand for warehousing space.

Growing warehouse space demand An upsurge in logistics and warehouse leasing activities can be attributed to the government’s decision to accord infrastructure status to this sector due to which, the country is anticipated to witness increased leasing activities in the near future.

“The logistics sector in India is witnessing an unprecedented structural shift in the november 2019 - CargoConnect

11

focus form of automation, leading to blurring of lines with the retail sector, transformation of supply chains and growing investments,” says Jasmine Singh, Senior Director, National Head – Industrial & Logistics Services, CBRE South Asia. “From an increasing number of policy incentives to tech-enhanced warehouses, the sector is now seeing a change in every aspect of operations. These factors are likely to create a favourable business environment and position India among the most attractive investment destinations for the logistics industry in the coming quarters,” believes Singh.

“Large-sized deal closures were mainly dominated by 3PL firms and E-commerce players. Auto-ancillary, FMCG, engineering & manufacturing and electronics firms also closed large-sized deals. Cities such as Delhi NCR, Mumbai, and Bangalore are expected to dominate the supply pipeline, with the average size of warehouses in Delhi NCR and Mumbai likely to exceed 1 million sq ft. Besides, cities such as Chennai, Hyderabad and Pune are also expected to witness supply addition, but the average size of development is expected to be in the 0.3 - 0.5 million sq ft category,” informs Singh.

Rapidly growing E-commerce sales is another key driver for the surge in the demand for efficient logistics space. Additionally, unavailability of adequate modern logistics facilities has further expanded the potential ahead to keep pace with this rising de-

12 CargoConnect - november 2019

The consumption of warehouse spaces is largely dominated by three sectors, E-commerce, 3PL, and auto and auto-ancillary.

The increase in availability of warehouse spaces will benefit the burgeoning E-commerce industry and the pressing need for industrial grade warehouses to service different parts of the country.

Prakrut Mehta Director - Leasing ESR India

mand. It is anticipated that warehouse leasing will rise in the near future. This will largely be fueled by an anticipated rise in product sizes, continued demand from e-tailers, policy impetus to both sectors and higher demand from tier II cities. Advances in technology, particularly automation will enhance the specifications and operations of logistics assets, thereby pushing older, inferior grade properties down the demand pyramid.

A report titled 'Online Retail Driving Realty – Elevating the E-commerce Game,' examined the link between online retailing and the logistics sector and the impact of GST on leased warehouse spaces in India. It found out that the growth of the E-commerce sector has been on the back of favourable policy reforms, tech-enhanced warehouses, rising smart phone and internet penetration, and the digital India movement amongst others.

The report states that, this has up stretched the share of E-commerce in overall warehousing leasing uptake from 10 per cent in 2017 to 23 per cent in 2018.

Sandeep Chadha, Founder & CEO, Warehouster Capital observes that logistics and warehousing are inter-connected and that it is a packaged deal. Chadha says, “The implementation of Goods & Services Tax (GST) has triggered a consolidation drive and the incumbents are now looking for scale and efficiency. The notion of ‘One Nation, One Market’ has removed the pending bottlenecks. Logistics sector, which is currently

focus

top deals in logistics & warehousing 2018 2019  Warburg Pincus invested nearly

 LOGOS India invested nearly $100 mn into

$180 mn in Embassy Group for a project in Bengaluru  Proprium Capital Partners invested nearly $100 mn into Musaddilal Projects in Hyderabad

Casagrand Distripark in Chennai  Morgan Stanley Real Estate invested nearly $50 mn in KSH Infra in Pune  Embassy Industrial Parks invested nearly $50 mn in DRA Projects in Bengaluru

Source: ANAROCK Capital

$160 bn is expected to grow to $215 bn by 2020. The cumulative warehousing stock was around 169 million sq ft in 2018 and is set to grow to 260 million sq ft by 2020 with a growth rate of 24 per cent per annum.”

Prakrut Mehta, Director- Leasing, ESR India indicates, “The consumption of warehouse spaces is largely dominated by three sectors, E-commerce, 3PL, and auto and autoancillary. The increase in availability of warehouse spaces will benefit the burgeoning Ecommerce industry and the pressing need for industrial grade warehouses to service different parts of the country. A slew of thirdparty logistics companies could lead the way, absorbing millions of sq ft of space and letting it out to consumer goods, E-commerce, manufacturing and apparel companies.”

“Warehousing spaces are a crucial component of the supply chain for any enterprise that is dependent on the delivery of a product from one place to another,” notes Rajesh Jaggi, Managing Partner, Real Estate, Everstone Group. Citing CBRE’s latest report, Jaggi says, “The demand for warehousing spaces is increasing rapidly showcasing the potential of this sector. To meet this growing demand, significant investments are expected to be made, also the overall quality of warehouses has to be standardised which will in turn immensely benefit the sector and the overall economy.”

Meanwhile, Aditya Virwani, COO, Embassy Group emphasises on the year 2019 as

14 CargoConnect - november 2019

The demand for warehousing spaces is increasing rapidly showcasing the potential of this sector. To meet this growing demand, significant investments are expected to be made, also the overall quality of warehouses has to be standardised which will in turn immensely benefit the sector and the overall economy.

Rajesh Jaggi

Managing Partner, Real Estate, Everstone Group

a prospective year for India’s warehousing sector. Aligned with the demand and requirements, built-to-suit developments offered by Embassy constituted for 26 per cent of the absorption last year.

Virwani says, “Apart from simply being conventional storing services, today warehousing provides many value-added services. Warehousing and logistics players are increasingly partnering in adopting modern solutions to handle inventory management, usage of fleet management software and radio frequency identification (RFID) systems.

A strategically placed and well-planned warehouse not only improves the consumer services but also facilitates competitive advantage through efficient supply chain economics. At this rate, the current warehousing space is expected to double by 2022.”

Agreeing to Virwani, Chadha says that Grade B and C structures are transforming into superior Grade A boxes which clearly suggests a strong demand and the trend is likely to continue over the next few years.

The incumbents desire to be more competent and in the process are enhancing operations.

This augurs well for the overall sectoral outlook. The continuous growth momentum is allowing the players to adapt technology and bring down the effective costs. This is resulting in warehousing being adapt with modern, globally compliant specifications. Therefore, this trend to be bigger in sizes, better in amenities and equipped with latest technology

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focus will steer and improve the growth rate of warehousing and its logistics thereof. “As the demand is emanating from across the sectors, there is an enhanced and sustained growth in the medium to long term,” hopes Chadha.

Rising investments

The notion of ‘One Nation, One Market’ has removed the pending bottlenecks.

Logistics sector, which is currently $160 bn is expected to grow to $215 bn by 2020. The cumulative warehousing stock was around 169 million sq ft in 2018 and is set to grow to 260 million sq ft by 2020 with a growth rate of 24 per cent per annum.

Sandeep Chadha Founder & CEO, Warehouster Capital

Institutional investor’s interest in Indian warehousing market is growing manifold on the back of the government’s initiatives such as Make in India, implementation of the GST, and infrastructure status for the logistics sector. Post GST, there has been a spike in demand by almost 100 per cent as companies which were till now in a wait-and-watch mode switched to execution mode.

Global and domestic institutional investors have, over the past four years, invested over $3.4 billion into Indian warehousing.

These accounted for around 26 per cent of the total private equity (PE) investments into real estate during this period, showed a Knight Frank India study.

The rise in both institutional investor’s appetite for warehousing assets and the spike in leasing transactions are attributed to the industry’s rapid shift towards organised format led by the change in operating environment owing to policy decisions.

Definitely, Virwani says, sensing the tremendous growth potential of India’s warehousing sector, private players (both domestic and international) have ventured into the sector in the last few years. The trend will continue through 2019 with a view to bridge

the gap between cost and efficiency of operations. Virwani believes, “Facilitation of government regulations and organised reformations like implementation of GST, formulation of a logistics department under the ministry of commerce and other changes in the policies has provided further confidence in this segment. Growing manufacturing activity, rising domestic consumption, increasing international trade, advent of structured retail in the country, increasing private and foreign investments in infrastructure along with the E-commerce boom, will keep the sector development active for the next few years to come.”

Counting on the strong demand and increasing formalisation of the space attracting big investments, Singh says, “Although, a majority of the sector is unorganised, the entry of international players has resulted in the emergence of quality assets. While the overall supply (grade A and inferior grade) for the sector is expected to be around 60 million sq ft till 2020, at least 22 million sq ft of this supply is estimated to be in the grade A category and likely to be developed by leading players such as Indospace, Allcargo, Embassy and ESR. Regarding ESR’s in-house strategies and investment plans, Mehta informs, “We have recently collaborated with Future Group to invest close to 300 crores to develop logistics infrastructure assets in Nagpur and Jhajjar to service the north and central regions. We have has also partnered with Lodha group to invest around $100 million to develop a state-of-the-art master planned Industrial

The rise in both institutional investor’s appetite for warehousing assets and the spike in leasing transactions are attributed to the industry’s rapid shift towards organised format led by the change in operating environment owing to policy decisions.

16 CargoConnect - november 2019

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From an increasing number of policy incentives to tech-enhanced warehouses, the sector is now seeing a change in every aspect of operations. These factors are likely to create a favourable business environment and position India among the most attractive investment destinations for the logistics industry in the coming quarters.

Jasmine Singh

Senior Director, National Head – Industrial & Logistics Services, CBRE South Asia

park in Palava, servicing regions in and around Mumbai.”

Among Indospace’s major deals, Jaggi mentions, “World's largest furniture retailerIKEA has associated with us to build their first modern, built-to-suite, world-class distribution centre in India, located in IndoSpace Chakan Park. Similarly, various global organisations such as Nissan, DHL, DB Schenker, Steelcase, Bosch and Aptiv have partnered with us for their warehousing needs.”

With a stagnant residential sector, developers are now looking at warehousing sector to diversify, mitigate risks and increase the income. While micro and macro factors are suggesting strong demand, leading players in this sector are ready to play their part and contribute to the overall growth.

According to Chadha, warehouses these days are used not just for the storing but also as regional distribution centres, fulfilment centres, experiential zones,etc. And this multiple usability has made warehousing critical and has set in a motion an era of consolidation and efficiency.

Chadha says, “Major Indian business houses be it Embassy, Vatika, Hiranandani and global institutional players like Everstone, Warburg Pincus, Logos, GLP, ESR are all active in India’s warehousing realm, reaffirming its potential in delivering superior returns.

Among the marquee investments in 2018, we saw Indospace committing $700 million in GLP, while Allianz committed in $1 billion in ESR. Macquire and Ivanhoe together invested $431 million in Logos and Assetz.”

The next phase The year 2019 marks two years of implementation of the GST which pegged to transform India into a single integrated market,resulting in an increasing number of consolidation/expansion deals by both industrial and logistics occupiers – a trend that is expected to continue.

The sector is also likely to attract significant investments – as indicated by the latest report titled, CBRE APAC Investor Intention Survey, 2019. India was among the top five investment destinations in APAC; depicting industrial and logistics as one of the top segments expected to be targeted by investors in 2019.

The incremental growth in the Indian logistics and warehousing sector is expected to drive more foreign participation, create job opportunities and boost real estate demand in the country.

Besides tier II, tier III cities are expected to witness healthy demand from both technology and flexible workspace operators over the coming years. Robust supply outlook over the next three years suggests developers are capitalising on the buoyant demand. The increased demand would also pave way for opportunities such as asset enhancements and redevelopments. Many grade B warehouses located close to major cities will undergo redevelopments as per occupier specifications.

Jaggi says, “A shift from single warehouse to cargo hubs, fulfilling’s multi-client demands, warehousing sector has come a long way and has driven huge investments, both from domestic as well as global investors. We feel the future of this sector is very bright, and with the growth of our economy, the demand for quality warehousing is naturally expected to grow.”

As supply chains need to have a larger scale and become more agile, infrastructure development will have to respond to this need by becoming more forward-looking. While government policies and shifting demand patterns will be instrumental in shaping future trends, increasing technological applications will redefine the sector’s status-quo.

According to Mehta, the future of warehousing will witness increase in sustainable green buildings, having a tech-enabled approach, ondemand plug and play spaces to reduce the time lag to move into a warehouse space.

The incremental growth in the Indian logistics and warehousing sector is expected to drive more foreign participation, create job opportunities and boost real estate demand in the country. Besides tier II, tier III cities are expected to witness healthy demand from both technology and flexible workspace operators over the coming years.

18 CargoConnect - november 2019

focus

Warehouse Spread According to the reports by CBRE, so far, states covered are DelhiNCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad, where most of the warehouses are being built and used. Speaking on it, Virwani says, “Embassy Industrial Parks is present in Chakan - Pune, Sriperumbudur Chennai, Farrukhnagar and Bilaspur - Delhi NCR, Hosur - and Kothur – Hyderabad. We plan to build 8 to 10 industrial parks around eight key-cities that include Mumbai, Delhi, Bangalore, Pune, Chennai, Hyderabad, Hosur and Kolkata and then gradually move to other metros.

There will be more than one park in Delhi and Mumbai; nine parks, over the next three years which will total to 35 million sq ft of potential development. Whereas Mehta informs that Coimbatore, Guwahati, Ludhiana, Nagpur and Lucknow are soon going to be important locations for logistics park developments for ESR. Jaggi feels that with the E -commerce sector rapidly tapping the tier II and tier III markets, the demand for warehousing spaces across these cities is steadily growing. Cities such as Coimbatore, Ludhiana, Nagpur, Jaipur, Kanpur, Lucknow, Madurai, Guwahati and Surat are areas where we may see more investments as the demand for logistical services is expected to increase in these cities pushing the need for warehouses.

20 CargoConnect - november 2019

focus As the sector evolves, structural changes in planning, construction and operations of warehouses in the coming years is likely to be witnessed.

Chadha believes that the country will see a strong sustained demand in the medium to long term. The focus will be on new age Grade A warehouses that pave the way for efficiency and scale.

Companies are using a hub and spoke model to enhance the throughput and overall efficiency. The consolidation is likely to continue with increased momentum to exploit the favourable policy regime.

“With government’s focus to build infrastructure with the amalgamation of cutting-edge technologies, warehousing in India is poised for growth unseen hitherto. As for the interest of institutional investors is concerned, we are already seeing an influx of large ticket size transactions, reaffirming the potential and viability of the sunrise sector,” says Chadha.

Indian warehouse sector provides

Growing manufacturing activity, rising domestic consumption, increasing international trade, advent of structured retail in the country, increasing private and foreign investments in infrastructure along with the E-commerce boom, will keep the sector development active for the next few years to come.

Aditya Virwani

COO, Embassy Group

employment to more than 22 million people. Lowering of logistics cost has significant bearing on the GDP of the country. Virwani says, “With focus on new technology, improved investment, skills enhancement, removing bottlenecks, improving intermodal transportation, deploying automation, implementing single window system for faster clearances, and simplifying the entire processes, we will witness continued development in the segment.”

The number of start-ups aimed at bridging the technology gap is also on the rise. Software that enables improved fleet management though live tracking of goods, RFID system for inventory identification, automated pallet storage, amongst others are being increasingly used. As clients become more demanding and the scale of operations grow, the use of technology will only increase. Going forward, India’s logistics and warehousing segment will be a significant contributor to India’s GDP growth. CC

cover story

A Future of Growth awaits the Cold Chain Industry in India Transportation of temperature sensitive items along the supply chain through thermal and refrigerated packaging methods demands an infallible cold chain infrastructure. As cold chains are being globalised in India, maintaining the longevity and freshness of the perishables, pharmaceuticals and agricultural produce is indispensable and requires an innovative revamping to overcome capacity and infrastructure constraints in order to mitigate disruption risks associated with the quality of the deliverables.

Saurabh Sharma

22 CargoConnect - november 2019

T

he cold chain industry is emerging at a fast pace in India owing to the shift in focus from increasing demand to better cold storage and transportation facilities for the commodities that require a certain temperature throughout the supply chain network. Due to the fledging state of cold chain in India, a huge amount of agricultural produce remains exposed to dissipation. Further, the market is highly fragmented and includes more than 3500 big and small players. But from the past few years, India’s cold chain industry has witnessed some positive changes. Now companies are keen to look for better refrigerated storage and temperature controlled transportation provisions in order to keep the integrity of the shipment intact.

Cold Chain Market Potential According to the report entitled ‘Indian Cold Chain Industry Outlook 2022’ by Research and Markets, the cold chain industry in India is prophesied to grow at a CAGR of 17-18 per cent during the period 2017 – 2022 owing to the rising need of the infrastructure to reduce wastage. The demand for cold chain logistics from organised retail, pharmaceutical industry has been growing day-by-day. As per CRISIL research, three major segments- meat, seafood and bio-pharmaceuticals can give the buoyant force to the growth of the cold chain industry in India in the next five years. These segments cater mainly to the export markets where organised players are preferred due to stringent quality requirements and regulations.

Indian Cold Chain Market: Drivers  Growth in Organised Food Retail With the growth of the organised food retail, consumers get access to a very large variety of fresh fruits and vegetables, dairy products, meat and poultry products and a number of other temperature-sensitive commodities that require cold chain storage and transportation. Most of the organised retail players have already acknowledged that setting up of a strong cold chain infrastructure is a

key step in efficiently managing their supply chains.  Growth in the Processed Food Sector There has been a marked improvement in the consumer demand for processed foods. The Indian government has also announced the intent of establishing several mega food parks. This augurs well for the development of the cold chain industry in the country.  Shift towards Fruits and Vegetables Due to increasing risks and investments in grain crops, farmers are moving towards cultivation of fruits and vegetables. Most of these crops require refrigeration and hence are expected to encourage the development of cold storage facilities. Increasing demand from the Healthcare sector A number of healthcare products such as vaccines, biopharmaceuticals as well as clinical trial materials are heat sensitive and must be stored at temperatures ranging from 2°C - 8°C. Above said, private sector participation has increased in the cold chain industry to cater to the increasing demand for cold chain logistics. The majority of the cold storages built in the last few years are meant for multipurpose storage and this trend is expected to continue in the coming years as well.

The shift towards horticulture and processed food is also expected to increase the demand for cold chain solutions in India.

As per CRISIL research, three major segments- meat, seafood and biopharmaceuticals can give the buoyant force to the growth of the cold chain industry in India in the next five years. These segments cater mainly to the export markets where organised players are preferred due to stringent quality requirements and regulations.

november 2019 - CargoConnect

23

cover story Major Impediments Despite the industrial shift towards more integrated cold chain network and adequate cold storage facilities, the industry is reeling under a deficient cold chain infrastructure. Without the preconditioning centres, the produce cannot be readied for the cold chain, a nd wit hout tra nsport, t here are breaches in integrating the movement across the cold chain. Thus, large investments need to flow into rural India and the focus should be to develop and create new pack houses with associated transport capacity at the village level.

According to industry estimates, approximately 104 million metric tons of perishable produce is transported between cities each year. Of this figure, about 100 million metric tons moves via non–reefer mode and only 4 million metric tons is transported by reefer.

Higher operating costs, lack of small size reefer vehicles for shipments from distributor to retailers result in higher ambient temperature.

Talking about the crucial challenges in delivering cold chain products to the end-user in the right temperature Gopi G, Reg iona l Busi ness Ma nager South, Snowman Logistics explains, “Considering the variable temperature range, the cold chain market is divided into chilled and frozen. And the cold chain logistics companies that cater to the two aspects of the sector are everywhere across the country - the west, south, east, north and central regions.

However, lack of technology has led to the depreciation of meat and other such

24 CargoConnect - november 2019

produce within the cold chain. Consumers need meat while it is fresh so that it can be consumed on the same or a day after it has been bought. The absence of efficient tech worsens the quality and eventually leads to wastage and even health concerns. Technologies like GPS and sensors can monitor the trucks centrally to track the temperature and other key statistics so as to ensure better control of product quality.”

Apart from this, the other concern is low awareness among labours about handling temperature-sensitive products. In India, the supply chain of most products is long and fragmented; a product goes through many hands from source to delivery point. Most workers involved in the field are not properly trained in handling temperature-sensitive products resulting in deterioration of product quality before reaching the consumer. Besides, there are various other challenges which Indian exporters are bound to deal with, such as:  Lack of reefer vans during transport from manufacturing plant/cold storage.  Lack of reefer plugs for uninterrupted power supply.  Contamination during customs verification at the port before shipment.  Product loss because of quality deterioration during shipment.

The absence of efficient tech worsens the quality and eventually leads to wastage and even health concerns. Technologies like GPS and sensors can monitor the trucks centrally to track the temperature and other key statistics so as to ensure better control of product quality.

Gopi G

Regional Business ManagerSouth, Snowman Logistics Ltd

Here, Pawanexh Kohli, CEO and Chief Advisor, National Centre for Cold-Chain Development (NCCD) informs, “India has 30-35 million tonne (MT) storage space. However, on the transport side, it has 12,700 reefer trucks. Over 90 per cent of the bulk cold storage available in the country is used for potatoes and chillies.”

cover story

There are manual errors such as improper handling of perishables and food products, while lack of awareness and ownership amongst the service providers lead to wastage or poor-quality products at the end.

Concern has been there towards the handling of drugs due to stringent pharma norms but unfortunately produce such as vegetables and dairy products are handled very casually.

Kalidas Bhangare

Managing Director, Testo India

Incorporation of advanced technology and innovation in the cold chain network can revolutionise it beyond measures as temperaturesensitive goods are transported through multiple modes of transportation.

26 CargoConnect - november 2019

Touching upon the issue of poor infrastructure and inappropriate use of resources, Kalidas Bhangare, Managing Director, Testo India says, “It is true that the demands are increasing and even the production of perishables is increasing but still the cold supply chain potential is not at par mostly due to inadequate and basic infrastructure. Power supply, transportation, water availability, waste recovery and many other resources are still not enough to support a well-structured cold supply chain.”

There are manual errors such as improper handling of perishables and food products, while lack of awareness and ownership amongst the service providers lead to wastage or poor-quality products at the end. “Concern has been there towards the handling of drugs due to stringent pharma norms but unfortunately produce such as vegetables and dairy products are handled very casually,” adds Bhangare.

Steps to create an efficient cold chain infrastructure The effectiveness of cold chain is defeated without the use of temperaturecontrolled distribution connectivity between sources to market place. Most common fact that goes with cold storage systems is that all the consumables are meant to be stored in a temperature-controlled environment. Be it milk & dairy, fruits, vegetables, meat or drugs, everything is temperature-sensitive and requires specific temperature

range to be stored and transported.

With above, a new generation of reefers is com i ng wh ic h w i l l be equipped with an array of sensors monitoring the temperature effectively and shutting the cooling plant when not needed and is unnecessary to use. This may improve the reliability of temperature control as well as can extend the autonomy of the reefer.

It requires a great deal of integration and optmisation to maintain seamless delivery of shipment. Rakesh Pachauri, Business Head, Cold Storage, GP Global Group also agrees to it. Pachauri says, “We cannot take off vertically until we have sound infrastructure supported with skilled resources, especially in cold chain there is acute shortage of skilled drivers who can operate a refrigerated van. Team work and ownership are the key words which can bring a major change in operating a cold chain organisation. Every employee of the organisation should understand his or her role and execute it with full ownership in order to use the resources in hand to the fullest.”

About 61 per cent of the cold storage capacity is concentrated in the states of West Bengal, Uttar Pradesh and Bihar, wherein storage of potatoes accounts for 85-90 per cent of the capacity. Storage units in Maharashtra, parts of Gujarat and the country’s southern states are designed for storing commodities such as dairy products, fruits, processed fish and meat products and seasonal vegetables. However, the market is gradually getting better and organ-

ised and focus has shifted towards multi-purpose cold storages, which can help reduce the cost incurred in establishing separate cold storage for various kinds of perishables.

Pointing towards the predicament of commodities stored in cold storage Gopi marks, “Apart from labour knowledge and training in handling temperature-delicate products, there is a requirement of uninterrupted power supply in cold storages. This is an age-old problem in India. Companies have to invest distinctly in power back-ups which escalate the capital investment.”

The success of any cold chain depends upon its efficiency to cater to products that are sensitive to the environment, yet stays fresh due to the various controls and practices when transported from their place of origin to their destination. Cold Chain serves as a linkage between the producer and end user. Several components need to be developed for designing an effective cold chain infrastructure, namely:  Static Infrastructure- cold stores, pack-houses, pre-coolers, etc.  Mobile Infrastructure- reefer vans/ trucks, carriers, merchandising carts, etc. (basically transport units for connecting the static infrastructure)  Handling protocols and design standards  Skilled resources While we have laws but implementation is ineffective which allow manufactures, traders, retailers to take shortcuts believes Akshay Sharma, Founder Di-

rector, LogFresh India. “If one is to visit the offices of Food Safety and Standards Authority of India (FSSAI) across the country, one will realise the peculiarities associated with the process of obtaining a license. For example each stakeholder including service providers are supposed to get license from FSSAI, but qualitative aspects need to be checked in infrastructure especially among service providers,” informs Sharma.

NCCD engages with various private and government stakeholders to translate industry needs into policy recommendation, facilitate private investment, improve storage, specialised transport and operations, develop and promote new and energyefficient technologies, run awareness programs and many more.

Pawanexh Kohli

CEO and Chief Advisor, National Centre for Cold-chain Development (NCCD)

Role of technology and innovation Incorporation of advanced technology and innovation in the cold chain network can revolutionise it beyond measures as temperature-sensitive goods are transported through multiple modes of transportation, it is apparent to keep track of shipment at every stage of delivery to ensure the right quality and time of the delivered consignment. The major cold chain technologies in providing a temperature controlled environment during transportation involve: Dry ice: It is solid carbon dioxide at -80°C temperature and is capable of keeping a shipment frozen for an extended period of time. It is particularly used for the shipping of pharmaceuticals, dangerous goods and foodstuffs and in refrigerated unit load devices for air cargo. Dry ice does not melt, instead it sublimates when it comes in contact with air.

Many air freighters have launched dry ice replenishment service to tem-

The success of any cold chain depends upon its efficiency to cater to products that are sensitive to the environment, yet stays fresh due to the various controls and practices when transported from their place of origin to their destination. november 2019 - CargoConnect

27

cover story

Team work and ownership are the key words which can bring a drastic change in operating a cold chain organisation. Every employee of the organisation should understand his or her role and execute it with full ownership in order to use the resources in hand to the fullest.

Rakesh Pachauri

Business Head- Cold Storage, GP Global Group

28 CargoConnect - november 2019

perature-controlled products such as perishable and pharmaceuticals which require specific temperature requirements while being transported and stored. This service can be provided to clients 48 hours in advance prior to service delivery.

Packaging: There has been a considerable focus on the development of packaging equipment with improved properties over conventional insulated packages. Significant efforts have been made on improved vacuum insulated panels, on-demand systems that do not require pre-conditioning, as well as flexible, actively temperature-managed solutions that are now emerging.

Temperature Control Foil Pallet Covers: Temperature contol thermal foil pallet covers protect temperature sensitive goods during transportation. This product is predominantly used within the Aviation Industry for air cargo and also for land based pallet transportation. These waterproof foil covers has high heat and solar resistant qualities which virtually eliminates the transfer of heat to the goods within.

Reefers: This is the generic name for a temperature controlled transport unit, which can be a van, small truck, a semitrailer or a standard ISO container.

These units, which are insulated, are specially designed to allow temperature-controlled air circulation maintained by an attached and independent refrigeration plant. A reefer is able to keep the cargo temperature cool and even warm.

Data Loggers: Data loggers monitor temperatures in refrigerators and freezers for clinics participating in the CDC Vaccines for Children program as well as hospitals, clinics, and WHO sites. The loggers communicate wirelessly via Bluetooth low energy to mobile devices.

Talking about Testo India’s offerings to the sector, Bhangare informs, “Data loggers and temperature thermometers monitor and ensure the longevity of perishables. Testo 184 transport data loggers that record the temperature while in transit and for the purpose of traceability, this also helps the freight forwarders to prove that the cold chain was not interrupted during transport. Testo also has Wi-Fi data loggers testo Saveris 2 that monitors the cold room/storage temperature. All the measurement can be accessed online from anywhere.”

Government‘s role The role of the Ministry of Food Processing Industries cannot be overlooked in the development of cold chain infrastructure in India; the entity is implementing scheme for its promotion.

Other departments such as National Centre for Cold-chain Development (NCCD), National Bank for Agriculture and Rural Development (NABARD), National Horticulture Board (NHB) and state governments are also taking initiatives for the development of cold chain industry in India.

According to Kohli, “NCCD engages with various private and government stakeholders to translate industry needs into policy recommendation, facilitate private investment, improve storage, specialised transport and operations, develop and promote new and energyefficient technologies, run awareness programs and many more.”

Cold chain infrastructure in the agricultural sector suffers the most on account of shoddy cold chain infrastructure. NABARD has been instrumental in providing loans to warehouses, cold storages. The body manages the advancement of fund for creating adequate infrastructure for the storage of

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cover story

Cold chain infrastructure needs to be established throughout the fish value chain from harvest to consumption, and cold storage facilities at -18°C should be set up for keeping frozen products to maintain the freshness.

Besides, traditional fishing boats shouild be equippd with ice store facility.

Madhusudhana Rao

Principal Scientist, ICAR-Central Institute of Fisheries Technology

If one is to visit the offices of Food Safety and Standards Authority of India (FSSAI) across the country, one will realise the peculiarities associated with the process of obtaining a license. For example each stakeholder including service providers are supposed to get license from FSSAI, but qualitative aspects need to be checked in infrastructure especially among service providers.

Akshay Sharma

Founder Director, LogFresh India

30 CargoConnect - november 2019

agricultural commodities. The funds envisage extension of loans to public and private sectors for construction of warehouses, silos, cold storages and other cold chain infrastructure.

In February 2019, The Cabinet Committee on Economic Affairs (CCEA) approved a corpus of `2,000 crore for Agri Market Infrastruct ure Fund (AMIF) to be created with Nabard for development and upgrade of agricultural marketing infrastructure in rural and regulated wholesale markets. The fund will provide subsidised loans to states and Union Territories for 585 agricultural produce market committee (APMC) mandis and 10,000 gramin agricultural markets (GrAMs).

The cabinet committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, in its meeting held on October 2018 approved the proposal for creation of a special Fisheries and Aquaculture Development Fund (FIDF), proposed by the Department of Animal Husbandry, Dairying and Fisheries (DADF), Ministry of Agriculture and Farmers Welfare (MoA&FW). The FIDF would help in creation of Fisheries infrastructure facilities both in Marine and inland fisheries sector, which would boost fish production and help achieve target of 15 million tonne by 2020 set under the Blue Revolution.

Madhusudhana Rao, Principal Scientist at ICAR-Central Institute of Fisheries Technology says, “Cold chain infrastructure needs to be established throughout the fish value chain from harvest to consumption, and cold storage facilities at -18°C should be set up for keeping frozen products to maintain the freshness. Besides, traditional fishing boats should be equippd with ice store facility.”

For want of processing and storage

facilities, the fish are being cut and stored under unscientific ways by traditional fishermen and are picked up by domestic and export agents/traders by paying a low price.

Akshay says that if the government wants to bring in gobal standards in cold chain, instead of incentivising only large corporates or individuals, they need to offer subsidies and incentives on Operating expense (OPEX) instead of Capital expenditure (CAPEX) and closely monitor the usage. “While the government has been incentivising and offering subsidy on cold chain, there is still the need to for a integrated policy resulting in cold storages being set up by large players for their own consumption, or being setup by individuals with no knowledge to avail subsidies who further rent it out to large traders,” notes Akshay.

“The Government needs to proactively strategise to ease the import rules for cold chain equipment and develop improved business models by promoting producer owned supply chains,” feels Akshay.

End remarks

It is conjectured that many large domestic and foreign companies will be joining the league in coming years to cater to the growing demand of cold chain logistics. This will also inject required investment and latest technologies in the Indian cold chain industry in near future. Cold chain industry in India is also expected to witness some major mergers and acquisitions by the big companies to establish their base and to expand their reach. Besides this, the staggering growth in pharma sector will further drive the demand of robust cold supply chain infrastructure. CC

special feature

Demystifying the opportunities in

Long Haul Logistics With India taking giant strides in express industry, road transport remains the most instrumental and sought after mode of transport for moving the goods to their ultimate destination. Conjecturing the imminent infrastructural developments in roads and national highways, it’s time for the trucking industry to contemplate on restructuring and be ready for the biggest opportunities in the making.

Saurabh Sharma

32 CargoConnect - november 2019

speacial feature

O

f all modes of transportation reeling under mushrooming E-commerce and retail sector, road transport is encumbered the most, as a substantial amount of cargo movement within the territory relies on large number of long haul trucks plying on the roads. Burden is added with the increasing demand for ultra swift delivery options provided by many e-tailers. Trucks are scaling more distances than ever after the implementation of GST regime which led to the dismantling of interstate border check-posts to some extent. According

to the data collated by the Ministry of Road Transport & Highways, trucks are travelling 300-325 km a day, an up to 44 per cent increase from the average of 225 km a day before July 1 2017, when the GST was introduced.

Challenges in intercity trucking

Variety of cargo is being transported by the long haul trucks like agricultural produce, food items, durables and even hazmat. As road transportation is exposed to so many risks and inconsistencies which may lead to inordinate delays in delivery, it demands robust pre-emptive measures and network optimisation in order to be efficient and cost effective.

With above, being an unorganised busi-

ness, challenges are a never ending situation for India’s trucking sector.

Working capital has been a gross challenge in intercity logistics which make way for the intermediaries to come into the picture. Mahendra K Shah, MD & CEO, V Trans (India) Ltd says, “Working capital is one of the intricacies in transport business which needs to be managed prudently. The credit demand of client usually hovers around 70 – 80 days, which is much higher in comparison to developed western countries. In addition, the invoice processing and generating the physical proof of delivery (POD) takes substantial time to submit the invoice.”

What makes the system more economically inefficient is that this upfront november 2019 - CargoConnect

33

special feature capital cost is currently being borne by the brokers or transporters whose cost of capital, as we argue, is much more (anywhere between 4 to 10 per cent points higher) than if the same was taken by a corporate or a large shipper.

“Most trucking companies have cash flow challenges when customers delay payments for wide variety of operational reasons or their own business challenges. Sometimes, confusing profit on the books with cash in the bank also leads to insufficiency of funds to sustain ongoing operations. High interest costs as well as inconsistent debt servicing also add to the problem. To be effective, higher asset utilisation, tight control over costs and greater fiscal

The daily routine of handling arrivals and the process of receiving consignments hardens people who are at the job. They are in no position to step into the shoes of the driver and try to feel his misery. This realisation is the whole basis of our thought process in the third dimension of our project ‘Highway Heroes’.

Mahendra Arya

|

President, AITWA

discipline is needed,” explains Uday R Sharma, Director-Sales, Spoton.

Working capital can be broken down into two parts – unorganised lending, which leads to higher than

usual cost of capital; and cash requirement for organised individual trips.

Digital/financial technology solutions can help address both issues and there are some start-ups that are now trying

According to the data collated by the Ministry of Road Transport & Highways, trucks are travelling 300-325 km a day, an up to 44 per cent increase from the average of 225 km a day before July 1 2017, when the GST was introduced.

As road transportation is exposed to so many risks and inconsistencies which may lead to inordinate delays in delivery, it demands robust preemptive measures and network optimisation in order to be efficient and cost effective. With above, being an unorganised business, challenges are a never ending situation for India’s trucking sector.

34 CargoConnect - november 2019

 Working capital has been a gross challenge in intercity logistics  Lack of awareness among transporters and truckers.  Vehicle selection and utilisation: Companies usually don’t spend time in evaluating what all types of (tonnages) trucks are needed for their dispatches.  Transportation Cost: Fewer efforts are taken to evaluate if cost provided by the transporter are realistic or not.  Shortage of drivers: A lot of menial work takes its toll on number of driver choosing the profession.  Lack of Cold Chain Infrastructure: Scarcity of temperature control reefer trucks.  Heavy Commercial Vehicles (HCVs) plying on the highways is insignificant largely due to (below-par) road infrastructure.

to address this concern. Deploying captive treasury balance for bill discounting, FASTag payment rollout across highway tolls and freight platforms that cover working capital requirements, are some of the recent attempts to solve this issue.

Besides, there are other issues which need to be tackled in the long haul transportation. Some of them are listed below:  Vehicle selection and utilisation: Companies usually don’t spend time in evaluating what all types of (tonnages) trucks are needed for their dispatches.  Transportation Cost: Fewer efforts are taken to evaluate if cost provided by the transporter are realistic or not.  Shortage of drivers: A lot of menial work takes its toll on number of driver choosing the profession.  Lack of Cold Chain Infrastructure: Scarcity of temperature control reefer trucks.

Another critical issue is the lack of awareness among transporters and truckers. There are so many significant areas where the transporter and truckers should be educated. Many transporters don’t even know how to calculate operating cost. They are still following traditional theory of working at

36 CargoConnect - november 2019

an operating cost, a bit lower than their nearby competitor. All this leads to reduction in profits of transporters and huge loss to the truckers as they do not acquire the freight rate that equals to actual cost they have spent.

Moreover, the number of Heavy Commercial Vehicles (HCVs) plying on the highways is insignificant largely due to (below-par) road infrastructure.

A 16 tonner is considered a heavy-duty truck in India unlike 40 tonner in advanced countries. But things might improve as there is an enhanced focus on infrastructure development of the present government.

Incentivising the truckers

A transport company is represented by the truck driver and the place of opera-

tion by security guards and sometimes some other staff members associated with the logistics department. Given the vast and unfavourable dynamics of road transportation in India, drivers are bound to face the pangs of the profession. The arduous nature of this profession results in the paucity of drivers as they are willing to take other professions. It’s of utmost importance to facilitate them with the required provisions in order to put their work at ease.

Discussing the plight of truck drivers, Mahendra Arya, President, All India Transporters Welfare Association (AITWA) says, ”Truck driver is the interface between a customer and a transporter at the site of goods transaction or loading and unloading site, into or from a truck. The place can be a

In India, the role of a truck driver is challenging, given the unpredictable nature and schedule, long periods and distances away from family members, perceived harassment by the police while en route, and the job insecurity involved. In spite of this, they are paid poorly and not surprisingly there is a growing shortage of drivers, globally. There is both a status and a skill gap among drivers.

Prof G Raghuram

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Director, IIM Bangalore

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special feature manufacturing plant, warehouse or a project site in general. When a truck driver, after a rough journey of several days on highways reaches his destination along with his customer’s load, the first thing he wants to do is take the load off his truck; may be followed by a small nap, until he gets his next order from his truck’s owner. But, in reality, it does not happen that way; almost at 80 per cent locations.”

“Trucking industry has multiple actors,” says Prof G Raghuram, Director, IIM Bangalore. The core actors directly serving the customers are the trucking company and the brokers/ agents. They are supported by the pure truck owners. This core set of actors is supported by four entities providing the tangible elements for trucking: manufacturers, truck body builders,

Working capital is one of the intricacies in transport business which needs to be managed prudently. The credit demand of client usually hovers around 70 – 80 days, which is much higher in comparison to developed western countries. In addition, the invoice processing and generating the physical proof of delivery (POD) takes substantial time to submit the invoice.

Mahendra K Shah

|

MD and CEO, V Trans (India) Ltd

begun to realise this. Therefore, today, there is an increasing focus on bridging the skill gap and providing appropriate en route facilities for drivers.”

Arya continues, “The daily routine of handling arrivals and the process of receiving consignments hardens people

cargo Logistics explains, “Any supply chain optimisation requires authentic data to be captured from ground operations. This in itself has been a problem for most small to mid-size trucking companies due to the low priority accorded to technology adoption. New

who are at the job. They are in no position to step into the shoes of the driver and try to feel his misery.”

“This realisation is the whole basis of our thought process in the third dimension of our project ‘Highway Heroes’,” says Arya.

age trucking companies have started with a firm focus on capturing this data and are therefore able to run network optimisation tools.”

Seeing the current state of trucking industry in India, there is enormous scope of making it a technically viable and in to an organised business. Businesses often struggle with visualising where everyone is located in their list.

At times, simply looking at a spreadsheet or Customer Relationship Management (CRM) doesn’t give the exact picture of the geographical locations of the clients or customers. Route optimisation is the method of using technology and computers to figure out the most direct and the efficient route to all

The number of Heavy Commercial Vehicles (HCVs) plying on the highways is insignificant largely due to (below-par) road infrastructure.

A 16 tonner is considered a heavy-duty truck in India unlike 40 tonner in advanced countries. drivers and fuel suppliers. The core set of actors has an ecosystem constituting support services, and government and regulatory body.

Raghuram adds, “Truck drivers are the most critical players, forming the human backbone of this industry. In India, the role of a truck driver is challenging, given the unpredictable nature and schedule, long periods and distances away from family members, perceived harassment by the police while en route, and the job insecurity involved.

In spite of this, they are paid poorly and not surprisingly there is a growing shortage of drivers, globally. There is both a status and a skill gap among drivers. Many actors in this sector have

38 CargoConnect - november 2019

Combating the deficiencies in Network Optimisation

Though road transportation is marred by inadequacies, they can be overcome by the optimum use of technology and available resources.

Pointing the inevitability of obtaining reliable data, when trucks are on the move, Rohan Mittal, Vice President, Strategy and Marketing, All-

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special feature Most trucking companies have cash flow challenges when customers delay payments for wide variety of operational reasons or their own business challenges. Sometimes, confusing profit on the books with cash in the bank also leads to insufficiency of funds to sustain ongoing operations.

High interest costs as well as inconsistent debt servicing also add to the problem.

Uday R Sharma

|

Director-Sales, Spoton Logistics

the stops and destinations. It helps optimise time and energy for each trip from one location to another. Besides, route optimisation tools can be used to tactically decide changes/ modifications in case of contingencies.

Collaboration between the owners and service providers is imperative to run an economically viable transportation business. Shah enlists various ways in which it can be made cost-effective: Collaboration between the service providers can bring greater efficiency and load utilisation capacities which in turn will increase profitability and divided the capital infusion.

Reduction in the cycle of working capital deployed is positively affected by government initiatives such as GST and E-way bill, saving substantial time on check posts, toll booths, etc.

Further integration with in-house Enterprise Resource Planning (ERP) softwares and facilities like ePoD, can get the cycle shorter.

Credit ratings of clients, sector-specific credit model can help in higher realisation and exploring the arbitrage opportunities between various parties

40 CargoConnect - november 2019

involved in the complete value chain.

“The market is very heterogeneous in all sense for logistics, fluctuating demand patterns, different centres for manufacturing and consumptions, excessive type of vehicle requirement are very glaring challenges with other aspects of poor infrastructure, and labour availability related issues. There is no ideal solution found as yet for this problem however some work is going on in the direction,” says Shah.

Adopting tech-enabled visibility

In order to draw the maximum efficiency in trucking market, real-time visibility is quintessential, as managing a huge network of trucks crossing numerous state boundaries can be a herculean task without leveraging the technology and modern hand held customer friendly devices.

“Real-time visibility solutions can help tackle delays, productivity issues, accidents, diversion, and theft or damage. Apart from GPS tracking; fuel sensors, temperature sensors, advanced drivers-assisting systems, video analytics, etc. are increasingly being used.

These devices find multiple uses across activities such as administration of good driving practices and dealing with issues like pilferage, security, dispute settlements, off-routing and quality assurance,” refers Sharma.

Intelligent transportation systems use information technology to improve the efficiency of transportation. Several solutions are being used by transporters or their customers to drive cost and service efficiency and mitigate risks related to safety and security. Some examples are listed below:  Weigh-in-motion (WIM) devices can quickly and effectively identify overloaded trucks.  Transport Management Software (TMS).  GPS/Radio Frequency Identification (RFID) tracking and real-time tracing of dispatched trucks.  Route planning systems.  Location monitoring systems.  E-way bill is a simple system which establishes direct linkage between declared and transported goods.

India has second largest road network across the world spanning over a 5.5 million kilometers which shares approx 58 per cent of the total freight movement.

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special feature Any supply chain optimisation requires authentic data to be captured from ground operations. This in itself has been a problem for most small to mid-size trucking companies due to the low priority accorded to technology adoption. New age trucking companies have started with a firm focus on capturing this data and are therefore able to run network optimisation tools.

Rohan Mittal

Allcargo Logistics

|

Vice President- Strategy and Marketing,

The Indian trucking industry has been like many other industries far behind from the standards of developed countries; talk about power to weight ration which is one of the lowest, rare sight of wooden cabins or wooden loaded bodies and AC cabins, no sign of migration to tubeless tyres, etc.

42 CargoConnect - november 2019

Customers in logistics space wants better and enhanced material tracking and visibility throughout, simply because of their further commitment to know in how much time the material will be delivered.

“Real-time visibility will certainly bring instrumental changes in overall trucking market. Better prediction and data can help in making strategy for load and route optimisation, as on an average; trucks in India are running below 18 – 20 working days a month, leading to substantial opportunity loss.

It will boost planning and inventory management at large due to which even clients will be able to plan their logistics and supply chain more effectively,” says Shah.

“GPS-based tracking bolstered by Internet of Things (IoT), Artificial Intelligence (AI) and Machine Learning (ML)

in route tracking, fuel uses, temperature sensing and driver assistance can get supreme solutions for visibility-related information. Further, automation in dock door scheduling, invoicing, order processing, payment, etc. with help of data and information gathered can help in saving more time,” adds Shah.

Future plans to enhance efficiency

India has the second largest road network across the world spanning over a 5.5 million kilometers, which shares approx 58 per cent of the total freight movement. The Indian trucking industry has been like many other industries far behind from the standards of developed countries; talk about power to weight ration which is one of the lowest, rare sight of wooden cabins or wooden loaded bodies and AC cabins, no sign of migration to tubeless tyres, etc. Domestic challenges like poor road conditions, social status of truck drivers, and scarcity of skilled drivers too are challenges for the country’s trucking industry.

The National Transport Development Policy Committee (NTDPC) has tried to estimate the overall freight traffic until 2031-32, using a growth rate of 1.2 times the GDP growth rate. It is also expected that water (coastal shipping and IWT) and railways would increase its modal share, bringing these environment friendly modes to at least 20 and 30 per cent respectively. This would bring road share down to 30 per cent, which would imply that road freight (in terms of btkm) would go up from over 1000 in 2011-12 to nearly 4000 in 2031-32.

Nonetheless, there have been significant changes in India’s logistics landscape in general and road transportation in particular in the past couple of years. A stable political environment for the foreseeable future, growing urbanisation, increasing consumption across all markets and associated increase in transport volumes augurs well for the trucking industry across the entire value chain. There is enough head room for growth and for everybody to make money. Sure there are short term challenges but these will smoothen out over time. CC

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Technology: The Right Ingredient For Air Cargo

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Period

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Priority Cargo: Right Here, Right Now

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240+600+42 =`882/-*

1 Year

$120

120+220+17 =$357*

`480/-

480+1200+84 =`1764/-*

2 Year

$240

240+440+34 =$714*

`720/-

720+1800+126 =`2646/-*

3 Year

$360

360+660+51 =$1071*

*Inclusive of courier charges and 5% GST.

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Pin

Focus

Digital Procurement: Delivering through the

cumulative effect

44 CargoConnect - november 2019

Focus

Despite the digital promise, procurement functions of most companies still live in the analog past and are missing out on the key benefits offered by a techenabled approach. To implement an effective digital procurement strategy and take full advantage of the opportunities that digital offers, procurement leaders must start by defining the core value that their function brings to the organisation.

Upamanyu Borah

T

he digital transformation of the procurement function requires much more than automating a few processes. Companies implementing digital technologies should be doing so with the goal of strengthening and sustaining their competitive position in the marketplace. Those that take this approach will likely surpass the competition by leaps and bounds; those that don’t will fall further and further behind.

Digital procurement automates repeatable tasks to boost efficiency and reduce costs; it equips stakeholders across the business with real-time insights and analytics through artificial intelligence (AI) and easy-to-use online tools; it deploys new and smarter ways to infuse data models to enrich day-today operations and decision making.

Furthermore, it transforms buyer interactions with suppliers and other third parties by serving as a platform for new levels of collaboration.

Digital creates value for procurement in distinct but interrelated ways: • Digital procurement automates repeatable tasks to boost efficiency and reduce costs.

• It deploys new and smarter ways to infuse data models to enrich day-to-day operations and decision making.

• It transforms buyer interactions with suppliers and other third parties by serving as a platform for new levels of collaboration.

•

It equips investors across the business with realtime insights and analytics through artificial intelligence (AI) and easy-to-use online tools.

Digital ProcurementWhy Now?

All functions within modern business have been transformed by technology over the past few years, and procurement is no different.

“If I look at the procurement role and how the business is actually emerging, and more so from a consulting industry, where I belong to, I see a whole lot of new technologies coming in and a whole lot of disruption the way business is being done and the way businesses are being created,” says Vikas Lashkari, Head- Procurement, Ernst & Young India.

Today, Ernst & Young is very wellconnected practically with every part of the industry from a consulting perspective. Lashkari informs, “We are seeing that most of the primitive organisations are also looking at different ways of doing business. In fact, a completely different breed of people is actually managing the future of business, which is something that is bothering us. And it’s not only related to supply chain but to every part of the business that we are doing. It’s about HR, the workplace solution that we have, it’s about procurement, it’s about supply chain, it’s about inventory management and whole lot of things that we have or we see on a day-to-day basis, creating

Companies that are digital laggards perform tasks manually, make decisions without a comprehensive understanding of the data, and lack visibility into the sources of product parts.

an intelligent solut ion t h roug h automation.”

Having a 360-degree view on every part of your purchase process helps you to track your projects and keep your finances in check, believes Tejas Goenka, Managing Director at Tally Solutions. “In reality, however, any business works with hundreds of vendors every year, and managing multiple contracts becomes time consuming and cumbersome, making analysis difficult. Thanks to technology, businesses can implement systems, which not only make managing contracts easier, but also provide you with powerful analytics and reports. At the end of the day, you can use,” feels Goenka.

An ongoing evolution

Digitising procurement is just the first step in an ongoing journey.

In the next two to four years, we’ll see the further evolution to next generation digital procurement, where data november 2019 - CargoConnect

45

Focus

A completely different breed of people is actually managing the future of business, which is something that is bothering us and it’s not only related to supply chain but related to every part of the business that we are doing.

Vikas Lashkari

Head- Procurement, Ernst & Young India

Key benefits of being digital: incremental material cost savings of 5 per cent to 10 per cent, productivity increases of 30 per cent to 50 per cent, and substantial improvements in innovation, quality, speed, and risk management.

46 CargoConnect - november 2019

from outside a business’s own ecosystem will provide even more advanced decision making.

It’s imperative that organisations start their digital procurement journey now to ensure they’re not left behind in the race for competitive advantage.

“The technology that is there today to deliver a solution may not be relevant in two years or ten years’ time. We need to understand how the industry is changing and how the things are changing,” argues Lashakri. To scale up with these new ever-growing challenges and technologies, we need to keep pace with the whole new breed of startups that are now developing. “You need to know which strategic startup might become a Google or Amazon in the next five years from now and tie up with, if you have to be effective in your strategies and bring meaningful innovation,” explains Lashkari.

All functions within modern business have been transformed by technology over the past few years, and procurement is no different. According to Richard Powell, Director- Procurement Interim and Consultancy, Powell Procurement Services, “Nowadays, there are tools available to do much of the procurement activity. It started out with linking the supplier database to the procure-topay process. This h a s e merge d i n some more sophisticated procurement functions as a full guided procurement, which enables the business to buy what t hey need, when they need it from the suppliers.” Powell adds that this selection of high-tech tools has now spread to the strategic procurement end, such as easy-touse RFX tools.

Increasingly, staff in organisat ions expects to be able to use technology within their job, the same simple way they would be able

Thanks to technology, businesses can implement systems, which not only make managing contracts easier, but also provide you with powerful analytics and reports. At the end of the day, you can use.

Tejas Goenka

Managing Director, Tally Solutions

to use it from the consumer perspective at home. For example, if a consumer can use Amazon to purchase items on a smartphone anytime, anywhere, their experience as procurement professionals should be no different.

“The challenge for procurement is to enable such an experience as much as possible, while also enabling key strategic relationships. It’s not easy,” qualifies Powell.

Chris Banschbach, Managing Director at Accenture, US expresses, “Although companies have enthusiastically embraced eProcurement systems and even cloud-based procurement tools, to date, procurement hasn’t commanded the same kind of attention or investment.

But it’s time to move beyond simply replicating the same tedious procurement processes with new software.

Companies should be encouraged to take the next step and create a true digital procurement organisation.”

Humans will remain front and centre

Procurement teams have been allotted increased responsibility of overall spend

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Focus

Business today is fast paced, and without a strong commercial team in place, things can and will go wrong. My fear is that procurement professionals themselves will start to rely on those tools rather than vital interaction with the suppliers.

Richard Powell

Director- Procurement Interim and Consultancy, Powell Procurement Services

It’s time to move beyond simply replicating the same tedious procurement processes with new software. Companies should be encouraged to take the next step and create a true digital procurement organisation.

Chris Banschbach Managing Director, Accenture US

48 CargoConnect - november 2019

In the next two to four years, we’ll see the further evolution to next generation digital procurement, where data from outside a business’s own ecosystem will provide even more advanced decision making.

in, both, direct and indirect purchasing. With this being said, collaboration with the right suppliers is increasingly important for building sustainable top-line value, without compromising on quality and performance.

Supplier Relationship Management (SRM) is the stepping-stone to reliable selection, communication, collaboration, and innovation with suppliers.

Relationships are still required to provide innovation, bringing competitive advantage and assuring appropriate protections,” says Powell. “Business today is fast paced, and without a strong commercial team in place, things can and will go wrong. My fear, Powell notes, is that procurement professionals themselves will start to rely on those tools rather than vital interaction with the suppliers.

While this relationship management role involves seeking best value while keeping loyal suppliers on board, Powell argues this needn’t be seen as a problem, and successful relationships can in fact allow both parties to grow together. “I think it’s a perceived conflict rather than a real one. In any business, it’s really about creating shareholder value. Furthermore, ongoing relationships and strong SRM allow the supplier to grow, bringing innovation and creating competitive advantage for the buying organisation,” explains Powell.

Utilising supplier discovery platforms can be very effective when deploying go-to-market strategies. Rose Celestin, Senior Level Associate- Strategic Sourcing at Washington Subur-

ban Sanitary Commission (WSSC) informs, “Leveraging suppliers’ expertise allows companies to become more attuned to market trends and gain valuable market intelligence — ultimately allowing for increased sales and profits.

Plus, providing an entire organisation with access to live data can change the ways detailed insights and analytics are used to assess the organisation’s place in the market and what direction the company is headed.”

Here, Goenka adds, “One of the key ingredients of having an efficient purchase cycle is to build a network of trustworthy suppliers. This automatically eliminates the need to start from scratch for every procurement need that you have. If you have a good working relationship with your suppliers, you can sit back and relax, knowing that you will get the right quality, fair negotiations and timely delivery. Over a period, this will surely convert into an increased market share, better responsiveness to market demand.”

In terms of the most vital technologies impacting supplier relations, Powell points to the advent of cloud computing. “It’s made access to systems easier and cheaper. Cloud computing has been a revolution and a revelation, since it means that the big upfront investments are no longer required.”

In addition, Powell adds that data analytics is vital and is presently being underutilised. “The skills to interpret that data are in high demand in any procurement function – and rightly.

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

CEO Logistics Sector Skill Council

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Director- Supply Chain, South Asia Dell EMC

Ramkesh Jangra Head- Supply Chain- SCC Ericsson India Global Services

Vijay Wadhwani Mukesh Ralhan Asst VP- SCM Relaxo Footwears

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Head - Logistics & SCM Konica Minolta Business Solutions India

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VP - Supply Chain Management Anchor Electrical (Panasonic)

Manoj Chauhan

Head- SCM Strategy Head - Supply Chain & OperationsMagicon Impex Mobility & (Jivi Mobile) Enterprise, Pan India Vodafone

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Insight into history and forecast expenditure is gold dust to anybody tries to create deals.”

Using those two technological advancements, as well as a strong commitment to collaboration across the board, should make for successful procurement as modern business brings

Procurement teams have been allotted increased responsibility of overall spend in, both, direct and indirect purchasing. Collaboration with the right suppliers is increasingly important for building sustainable top-line value, without compromising on quality and performance.

50 CargoConnect - november 2019

this vital strategic function to the fore.

“Every procurement manager is actually a project manager when they’re doing big deals,” Powell explains, adding that the most successful deals he has witnessed involved pulling together the central functions of the organisations, including finance, sales and business development.

“The best procurement people I know are the kind who the stakeholder always wants in the room. They want them there because they know their market, they know suppliers. They have relationship skills to be able to get things done. If you’ve got the right skills, then both the suppliers and the stakeholders appreciate the value that they’re adding,” Powell concludes. It’s a value which, despite the rise of eprocurement and all things digital, you simply cannot buy.

Looking Ahead

Technology is proving a major boon for a huge range of procurement and supply chain functions, allowing companies to leverage valuable data, enforce compliance through policy, track spend for greater visibility, and drive increased operational performance.

Today’s sophisticated technology and analytics can also be used to create

Leveraging suppliers’ expertise allows companies to become more attuned to market trends and gain valuable market intelligence — ultimately allowing for increased sales and profits.

Rose Celestin

Senior Level AssociateStrategic Sourcing, WSSC

an effective strategy for supply management and procurement. Of course, it’s important to keep in mind that supply chain strategies must be developed with full consideration of both the existing and future technological capabilities of the organisation.

Lashkari says, “It is about the quality of talent that will be supporting the overall implementation of emerging technologies and the entire gamut of activities that we will do in the procurement and supply chain.” Not to question, one has to be fast paced in learning and updating their knowledge for optimal utilisation. Although, optimising assets at an ideal rate, Lashkari says, will certainly be always a challenge because new technology always keeps coming and we have a pressure to work more and more with lesser number of people.

In a world where sustainability and green initiatives are gaining traction, focus should also be placed on a more client-centric business model that will better serve citizens, optimise and enhance end-user behaviour, and increase social responsibility. CC

infrastructure

$500 mn invested in industrial and logistics sector since GST rollout

G

iven the increasing demand for quality warehousing space after the implementation of GST, the industrial and logistics sector has attracted investments close to 500 million dollars.

Going forward, developers are likely to build large-sized spaces to cater to the growing demand which may result in warehousing stock touching 500 million sq ft by 2030, a new report says.

Hereafter, the demand for warehousing will strengthen, and I&L absorption is anticipated to be about 10-15 percent higher than in 2018. About 2530 million sq ft would be leased in 2019 alone, a CBRE report says.

Several policies (both proposed and implemented), along with the grant of ‘infrastructure status’ to the logistics

sector, led to more than $500 million being invested in acquiring I&L assets in India during 2017- H1 2019, CBRE says in its report titled ‘Towards a Unified India 2.0: How Did Warehousing Occupiers approach the GST?’.

The results of the survey highlight how well occupiers have adjusted to the new tax regime and what is really driving the sudden growth of the Industrial and Logistics sector (I&L) in India.

Almost 70 percent indicated an improvement in ease of doing business, citing the example of e-way billing in this regard. E-way billing, in particular, has removed the majority of bottlenecks in cargo storage and transport processes. As many as 80 percent of respondents felt that the taxation system improved after the implementation of GST, and 40 percent of respondents indicated that they would increase the number of warehouses in the post-GST era.

Developers are likely to build large-sized spaces to cater to the growing demand which may result in warehousing stock touching 500 million sq ft by 2030.

After this, the country may see I&L developers accumulating REIT-compliant portfolios and including them in further launches in India. The share of tier II cities in logistics shipments in India is also expected to grow from almost 40 percent in 2017 to about 50 percent in 2022, thereby directly competing with tier I or metro cities, the report says.

Shared warehousing is also expected to see traction. As the culture of the sharing economy spills over

Demand for warehousing will strengthen and estimated that leasing will be about 10-15 per cent higher this year at 25-30 million sq ft compared to last year, says CBRE. 52 CargoConnect - november 2019

The country may see I&L developers accumulating REITcompliant portfolios and including them in further launches in India.

The share of tier II cities in logistics shipments in India is also expected to grow from almost 40 percent in 2017 to about 50 percent in 2022, thereby directly competing with tier I or metro cities.

As large distribution centres proliferate, the demand for ‘last-mile’ warehouses is expected to increase, with same-day delivery expected to become the new standard for the I&L sector. across RE segments, shared warehousing is likely to gain strength in the coming years. The trend is expected to be more pronounced in core markets, where rentals are high, reach to market is important and supply is a concern, the report says.

Demand for ‘last-mile’ warehouses also likely to grow. As large distribution centres proliferate, the demand for ‘last-mile’ warehouses is expected to increase, with same-day delivery expected to become the new standard for the I&L sector. According to CBRE Research, such warehouses must be located within the limits of a densely populated city to ensure the delivery of goods within a few hours.

The I&L sector is expected to soon see stakeholders concentrate on meeting niche requirements – which cater to specific needs such as cold storage and green logistics solutions. The cold storage segment is expected to witness an increase in demand from F&B occupiers such as Zomato, which is already in the business of supplying fresh raw material to restaurants. This is expected to eventually give rise to the concept of ‘dark kitchens’, CBRE says in its report Moreover, digitisation of the regulatory set-up in the post-GST era has further resulted in a more convenient, user-friendly interface for filing indirect tax returns, it said.“The logistics sector

in India is headed towards transformative growth. The permeation of technology in operations, innovative business models and strategies, improving supply chain efficiencies, augmented warehousing demands, varied funding avenues, favorable government policies, geographical expansions into tier II and III cities are together playing an instrumental role in preparing the sector for the next phase of development. Given the fundamental shifts across the I&L sector in just two years, coupled with increasing demand for quality space, developers are more likely to build compliant, large-sized spaces,” Anshuman Magazine, chairman & CEO – India, Southeast Asia, Middle East & Africa, CBRE, says. CC november 2019 - CargoConnect

53

technology

Digital technologies to create $1 trillion economic value by 2025

E

merging digital technologies are expected to generate $1 trillion in economic value for India - spearheading the $5 trillion economy ambition by contributing 20 per cent to the country’s nominal GDP and sustaining 60-65 million jobs by 2025, an EY report says.

By 2025, India is expected to have 90 per cent internet penetration with 850

54 CargoConnect - november 2019

million users, with rural base growing 2.5 times as compared to the urban base, the report adds.

“India is at an inflection point -digital has changed the way people communicate, socialise, create, sell, shop and work. India is poised to be a game-changer in the world digital economy by empowering its citizens and revolutionising businesses,” says Prashant Singhal, TMT (Technology,

Media and Telecom) Emerging Markets Leader at EY. Digital technologies across sectors such as retail, financial services, healthcare, energy, manufacturing and infrastructure will be fuelling the growth, resulting in employment generation, increased local and regional entrepreneurship and facilitate equitable socioeconomic growth.

“Digital economy has the potential

technology

India’s goal of reaching $5 trillion economy is heavily banking on digital adoption.

India is expected to have 90 per cent internet penetration with 850 million users.

India, whose internet user base is next only to China, is estimated to touch 627 million internet users by the end of this year.

to sustain 60-65 million employment opportunities for women, differentlyabled people, skilled and semi-skilled workers across digitally enabled businesses in urban, semi-urban and rural areas,” the EY report mentions. In the last four years, 268 mobile and mobile component manufacturing units have been set-up, generating 670,000 direct and indirect jobs under the electronic manufacturing initiative.

Domestic electronics manufacturing could generate economic value of $100 billion to $130 billion by 2025, the report says.

The Internet user base in India is expected to reach 627 million by the end of 2019 second only to China, which is expected wto reach about 850 million by 2025.

The digital economy has the potential to sustain 60-65 million employment opportunities for women, differentlyabled people, skilled and semiskilled workers.

The Indian E-commerce and consumer internet sectors are also set to reach $200 billion by 2027.

Rural internet users are expected to increase by 2.5 times, in comparison to the urban internet users.

However, the Internet penetration is at only 36 per cent - indicating significant growth opportunities.

Rural internet users are expected to increase by 2.5 times, in comparison to the urban internet users providing a h u g e i mp e t u s f o r t h e n e x t b i g wave of growth.

The Indian E-commerce and consumer internet sectors are expected to reach $200 billion by 2027 and is a significant avenue to provide employment a n d b u i ld e nt r e p r e n e u r s h ip i n the country.

“In 2018 the sector raised over $7 billion in PE/VC capital (including venture debt) across approximately 200 deals, and seven companies reached the coveted unicorn status. 2019 has already seen five companies achieve the unicorn status,” the findings shows.

Earlier this year, Gurgaon-based logistics firm Delhivery, secured $413 million funding from SoftBank Vision Fund (SVF) valuing it at over $1 billion.

Recently, the company also raised $115 million from Canada Pension Plan Investment Board (CPPIB).

Rival Rivigo that operates on a relay-trucking model also attained the unicorn status this year.

In July, Ola’s electric mobility unit turned unicorn post SoftBank Group’s $250 million investment in the firm. Egrocer BigBasket too reached an estimated valuation of $2.28 billion with about $150 million funding led by South Korea’s Mirae Asset-Naver Asia Growth Fund.

By scaling 80 per cent of India’s Ecommerce supply chain to digital value chain could generate an additional economic value of $5 billion to $10 billion in 2025, the report adds.

According to analysts, “The E-commerce and consumer internet companies are bringing unique solutions through innovation and technology across sectors such as mobility, healthcare, logistics, gaming and education which have together raised $1 billion in investment capital.” CC november 2019 - CargoConnect

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Interview

The logistics division, under the Commerce Ministry, is working on a series of measures to develop an integrated logistics infrastructure in the country. Besides, the government is soon going to unveil the national logistics policy aimed at identifying gaps that could be bridged to bring down the cost of logistics for traders.

N Sivasailam, Special Secretary (Logistics), said the policy has envisaged setting up of a central portal as a single window market place to link all stakeholders. Excerpts from his interview with

Upamanyu Borah.

The stage is set for implementing the policy in collaboration with the Industry 56 CargoConnect - november 2019

Piyush Goyal has recently said that the National Logistics Policy will soon be released. Has all the requisites of a strategic joint vision document been met in collaboration with the Industry to organically implement the elements of the policy?

A number of consultations have been held, including three roundtables organised by Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industry (CII), with the participation of many industry associations. Internal consultations with the stakeholder Ministries have also been held, including by the Minister. There has not been any serious dissatisfaction expressed by any quarter in regard to the policy. Suggestions have predominantly addressed the actions required under the various policy heads. We have no quarrel with the suggestions made during the policy workshops. So, I have the reason to believe that the stage is set for implementing the policy in collaboration with the industry.

The Government is involved in a pan-national effort with Railways, Ports, Shipping, Airlines and Road Transport to collectively work on a programme to bring down the logistics cost. What are the plans for integrating and optimising the various elements?

Each of the verticals develops the plans and is working with other stakeholders for seamless connectivity. Multimodal Logistics Parks are a fresh initiative in this direction. The concept is also in the process of being supported through legislation by amending the Multimodal Transportation of Goods Act (MMTG), 1993 to facilitate seamless connectivity across all modes and for internal trade as well. Of course, the introduction of GST has definitely enhanced the usefulness of an all mode encompassing legislation, and hence the heightened expectation of the trade. On the technology side, a platform that will integrate business

and regulatory portals is envisaged. A glimpse of that is in the development of the Port Community System (PCS) by the Indian Ports Association (IPA).

It has already made an impact in Ease of Doing Business rating. There are many more. I have highlighted just one example each in the Physical, Legislative and Technology domains to indicate the immense potential that will be unleashed by the implementation of the National Logistics Policy.

Multimodal Logistics Parks are a fresh initiative for integrating and optimising the various elements to bring down the logistics cost. The concept is also in the process of being supported through legislation by amending the MMTG Act to facilitate seamless connectivity across all modes and for internal trade as well.

In spite of benefits, transporters are facing a lot of uncertainties with regard to e-way bill generation which require urgent attention of the new government. What are your suggestions?

That’s true. The system is stabilising and the teething troubles have been overcome to a large extent. I believe we are in the consolidation phase of the learning experience.

Although, the current government wants and is therefore implementing steps to make India a transshipment hub, but do you believe the country can beat Sri Lanka and Singapore?

Where there is a Will, there is a Way. It can be done and in the interests of our trade, let it be done sooner.

Has the recent policy change granting top priority to Indian-built ships while exercising the right of first refusal (RoFR) in public tenders rattled India’s local shipping industry?

No. On the contrary, we need to build more capacity of Indian flag carriers to be more competitive.

With 24 per cent share of the total platform level investments in India in 2018, the warehousing and industrial segment is expected to retain strong momentum over the next few years. What according to you are the immediate actualities that would propel the sector?

First is the GST. Its effect is still continuing. The second is E-commerce. My estimate is that this twin effect will last for a decade.

India is investing in largescale infrastructure projects which could transform the country's modal-mix from one that is now dominated by moving goods by road, to one that is more balanced and flexible. Looking ahead, what trends you believe will define the sector for the next decade?

Yes, Coastal Shipping, Inland Waterways, Dedicated Freight Corridors, slurry pipelines for iron ore transport besides increasing average speeds in existing railway lines, and better warehousing, are areas of interest over the next five years. The road transport sector will see heavy haulage due to improvement in road infra. Ultimately, road transport is the first mile/last mile, and we cannot lose sight of the fact that significant inefficiencies in the first mile/last mile can nullify the gains in long distance haulage. Therefore, road transport is poised for showing gains in this arena. Significant and transformative changes in these broad physical infrastructure areas would be witnessed. CC

november 2019 - CargoConnect

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58 CargoConnect - november 2019

Interview

Our diverse experience to assist clients takes the front seat With a team of property leasing experts, Aveny as an industrial area development company aims to meet the needs of contemporary business models and fulfil client’s requirement at reasonable prices and no additional costs. Rajkumar Shrirao, President & Director, Aveny Industries & Logistics Parks informs Upamanyu Borah, the connection between developing a diverse workforce and achieving solid business results.

How have the government policies such as GST helped in streamlining the growth momentum of India’s warehousing sector?

The introduction of the uniform national Goods and Services Tax (GST) replacing a plethora of state and federal levies, has helped unify India’s 29 states into a single market. It brought a structural shift to the warehousing sector with small, fragmented networks being consolidated into large distribution chains with centralised hubs. Planned investments by the government, improving infrastructure and opening-up of the global market had also led to robust growth. Today, Delhi NCR, Mumbai, Pune, Bengaluru and Chennai are the top demand drivers for warehousing space.

Going forward, leveraging the fastevolving trade, infrastructure, technology, and human resources, the sector can soon become the backbone of the logistics and modern trade in India.

What makes your services different? Are there competitive advantages compared with offerings from other competitors?

Aveny’s technical team is in a position to design and deliver standard PEB/ RCC buildings or customer specific structures to meet individual requirements. The structures are of exceptionally high standards and offered at the most economical prices. Besides, Aveny renders comprehensive end-to-end services to its clients for property selection and acquisition through leasing, and follows the best possible real-estate practices. The diverse experience enables Aveny to assist clients in handling both short and long-term assignments.

As location plays the most critical role in developing efficient multimodal linkages for the seamless flow of goods for a logistics park, the warehousing spaces are being developed as a strategic advantage.

Further, Aveny, through its partner companies offer solutions for businesses that have land requirements for new or expansion of ventures, storage facilities, or for meeting specific business needs. Dedicated services in hospitality, leisure, agro-tourism and realty are also tailored so as to meet client’s specific requirements.

How far has Aveny been successful in its Corporate Social Responsibility (CSR) initiatives?

Aveny is committed to green initiatives

as one of its corporate responsibility practice. With a strong determination to minimise the carbon footprints, Aveny follows most modern practices like smart landscaping, energy saving, rain water harvesting, appropriate waste disposal, etc.

Where does Aveny stand in creating a competitive warehousing market in India?

As India’s warehousing and logistics landscape is transforming, the need to have an efficient supply chain is growing exponentially. Smart organisations like Aveny stand tall in addressing the need for specific, tailor-made solutions for Industrial and Logistics Parks in India.

Today, Aveny is one of the fastest growing organisations, in the field of Industrial and Logistics Parks in India.

To cater to the surge in demand for

With around 1.5 mn sq ft space leased to MNC clients, Aveny is working towards its grand vision to develop 7.5 mn sq ft industrial and warehousing spaces by 2022, at prominent locations across India. warehousing space, Aveny is developing industrial, logistics and warehousing Parks in Gujarat and Maharashtra.

Presently, with around 1.5 mn sq ft space leased to MNC clients, Aveny is working towards its grand vision to develop 7.5 mn sq ft industrial and warehousing spaces by 2022, at prominent locations across India. CC

november 2019 - CargoConnect

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Interview Gandhi Automations has gained significant market share in the entrance automation industry. How did you manage this commendable growth?

In the relentless journey of 22 years, Gandhi Automations has learned and gained the know-how into Entrance Automation & Loading Bay Equipment sector.

We are known for our research & development (R&D), quality and commitment towards customers. We have catered to industries like Chem-Pharma, Food, Automotive, Logistics, Warehousing, Shopping Malls, Marine, Aviation and many more. Our customers helped us grow along by trusting and demanding challenging requirements. Hence, we invested into research & development, factory trained sales and service team pan India, and 24x7 customer care to achieve those challenges. Our constant efforts towards innovation with focus on latest technology have acknowledged our products and solutions for reliability and sustainability.

Which of your products are in greater demand in the entrance automation industry in terms of offering on-demand solutions and easy to operate features?

Today, with more and more companies streamlining their processes, the demand for material handling automation and equipment has increased exponentially, to deliver faster, hassle-free loading/unloading experience and reducing supply chain operating costs.

The emerging trends which are becoming popular are remote operated high-speed doors and rolling shutters; and Gandhi Automations’ line of products become unique because of the cutting-edge technology, speed of movement, functionality and safety, all infused together.

Many manufacturing industries nowadays need a controlled environment that limits the amount of dirt and dust within the manufacturing premises. Medical instrument manufacturers, electronics and computer manufacturers, the food and pharmaceutical industry and some

Our pioneering solutions and technology have extended our business globally 60 CargoConnect - november 2019

Soaring investments flowing through hospitality, retail, commercial and healthcare sectors, and other construction activities are opening up opportunities for smart entrance doors in India, and Gandhi Automations being number 1 in the domestic market is tapping into the full potential of its efficiency and servicequality. Samir Gandhi, Managing Director, Gandhi Automations opens up to Upamanyu Borah on their operational strategies, key performance indicators that help attain manufacturing excellence, and how the company’s global growth would be a determinant factor in their success streak.

military applications are few of the examples that have strict requirements for maintaining the dust-free environment.

Our high-speed doors are self-repairing which provide effortless passage for material and manpower movement. The high operating speed reduces time taken in movement of material, thus hastening the logistics process.

What is the track record of Gandhi Automations in terms of overall performance?

We have maintained a positive trend year-over-year since inception. Our pioneering solutions and technology have extended our business not just in India but also globally.

We anticipate the market demands and our R&D team develops products ahead of time. A product is developed and tested rigorously before a launch even for challenging environments.

We maintain international manufacturing standards while innovating and testing our products. Our products and systems adhere to the European Standards (EN) who provides safety solutions for man and material using our products. Few safety solutions arrive in a package while others are optional.

What is the market potential for Gandhi Automation’s products in India? How are you positioning these products?

India is one of the fastest growing economies in the world and moving steadily on the path of global integration. In the past few years, many MNCs have set-up operations in India and introduced Indian companies to the advantages of automation for entrances and material handling. In facilitating the quest for being truly world-class and ensuring a ‘competitive advantage’, the Indian industry has started giving emphasis on technology advancements and industry norms.

To address the need of user-friendly operations, material handling and entrance automation leverage the latest technology. It provides ease of operation, swiftness and above all security,

the pre-requisite benchmark.

Our product line varies depending upon the location, size, industry and its applications for customers. Our representatives recommend and educate customers on precise solutions which seem appropriate to their use and application.

Dock Levelers, Dock Shelters, Sectional Overhead Doors, Motorised Rolling Shutters, High speed Doors are few warehousing solutions offered by Gandhi Automations. We have different types of Dock Levelers and Dock Shelters that are offered as per the customers’ requirements. In Dock Levelers, we have Radius Lip and Telescopic Lip and in Dock Shelters the offerings are Retractable Dock Shelter, Cushion Dock Shelters and Inflatable Dock Shelters.

With all these solutions, we aim to provide our customers with safe and efficient loading equipment in their warehouses.

What are your company’s crucial milestones and achievements contributing to the stabilisation of expectations and potentially modernising your framework in the Indian automation market?

We work as a consultant and take into consideration the need of a customer.

We provide customised solutions as per specific needs of a particular sector, for e.g. pharmaceutical, chemical, automobile, food, cold storage, etc. Each of these sectors has unique material handling and warehousing requirements.

Because of our expertise in the field, we understand and explain to the client how he can make optimum use of technology. The customer acknowledges this as the greatest value-addition when he approaches Gandhi Automations for a particular product.

To fulfil our objective of providing products that are technologically-advanced, energy-efficient and safe, we have a project engineering team that uses the latest design software combined with technologically-advanced machinery to offer the customer a wellengineered product.

Because of our passion and commitment to quality, we have won accolades

across different industries and products. Recently, we have been honoured with the Top 100 SMEs in India Award by the Government at the India SME Forum 2018. Our other notable achievements and awards are:  The Innovation Award (twice) – ACREX 2019 and All India Cold Chain Seminar 2019  Best Warehouse Initiative, Best-inclass Loading Bay Technology – 13th Annual Express Logistics and Supply Chain Conclave 2019  Best Company Product Showcase – India Paints and Coatings Forum 2019 Changing Industrial Trends award, and many more.

Brief us about the company’s global reach and the global alliances that have been made in order to out-front the competition.

We are number 1 in the domestic market. However, there’s a huge untapped international market for our products, which we are ready to meet with the right kind of product portfolio and international safety standards. We are relatively new to the International Market however the response till date has been very encouraging.

With increased globalisation and countries opening up for business we see a great opportunity in neighboring countries also. For instance, in Myanmar, in the last few years foreign investments has increased from few million to several billion dollars (300 million-dollar 2009 to 5 billion 2014).

The Myanmar government has relaxed import restrictions and abolished export taxes. Such policies boost our confidence and we will venture in such countries.

We already have an installation base in Africa, Europe, Middle East, America and South Asia. However, such projects were intermittent owing to focus on such markets.

Our current target for export is Gulf Countries and European Countries. In the coming years, we will be aiming neighbouring countries like Bangladesh, Indonesia, Bhutan, SriLanka, and a few other African countries. By the year 2020, we are targeting 50 per cent revenue from export. CC november 2019 - CargoConnect

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Interview

We see big potential in connecting with India How has LOT Cargo evolved its operations since inception? Which are the carrier’s potential destination routes?

Our cargo division is a top important profit generator, much more than market level for passenger airlines. Although, there is no freighter service on regular basis, LOT Cargo deploys freighters on charter basis on seasonal flights. 2019 is posing as a huge challenge to generate profits on large freighters. That is the reason we started to explore opportunities to use small turboprops in our service on relatively short haul connections. At this moment, this is much more convenient to utilise our long hauls, once we reach some crucial destinations where LOT is not operating or either operating by narrow bodies. In effect, we can generate demand for our long haul flights to add an attractive last leg by ATR72 or Saab 340.

From the beginning of our LOT Cargo history, the most effective business is done on transatlantic routes where Chicago takes the top position.

Today, we connect Central Eastern Europe with American gateways- John F Kennedy International Airport (JFK), Newark Liberty International Airport (EWR), Toronto Pearson International Airport (YYZ), O'Hare International

Airport (ORD), Los Angeles International Airport (LAX) and Miami International Airport (MIA), while also connecting Mexico through LAX or Latin America through MIA. At present, Asia seems to grow more and more important to our cargo division. As we operate successfully from Warsaw Chopin Airport (WAW) which is the main hub for Narita International Airport (NRT), Beijing Capital International Airport (PEK), Singapore Changi Airport (SIN), Incheon International Airport (ICN) and Delhi Airport (DEL), we observe increasing interests of our customers on our flights and see how fascinating business opportunities LOT generates for both Asia and Poland.

Recently, LOT has opened a second hub in Budapest Airport (BUD) Hungary from where it operates to JFK and ICN. This is the beg i n n i ng but definitely the market has well-received our offer.

One of the world's oldest airlines and also the flag carrier of Poland, LOT Polish Airlines which started operations in December 1928, today serve over 131 destinations across Asia, Europe and North America. , Cargo and Mail Director, LOT Polish Airlines in a tête-à-tête with Ritika Arora Bhola, talks about their budding relations with the Indian market; realising the massive potential of India, the airline is aggressively in talks to establish their presence in the Indian market and to tap into the growing pharma shipments from the country.

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Tell us about your freighter services. Any new freighter service started by the airline in the last two years?

Our freighters are not flying on a regular basis. The reason is simple; polish infrastructure is not yet ready to absorb the loading and offloading of regular, bigger freighters and also, because there is an increased security requirement due to European Aviation Safety Agency (EASA) and Civil Aviation Authority (CAA) instructions. Besides, our main hub WAW is so busy nowadays that additional slot is extremely difficult to manage. Therefore, we decided rather to wait for opening up of the new Central Communication Port which is one of our flagship infrastructure investments in Central Europe.

How has Indian market evolved for LOT Polish Airlines till date?

Until now, we have not explored the Indian market due to the fact that we have not been connected by direct flights. However, based on analytics, market potential and general data of development, LOT board is deciding to open connections between Poland and India. Cargo represents strong demand on this route and LOT Cargo with its local partner- Group Concorde, sees great potential. This was realised when we noted great results after the very first flight. LOT Cargo is very happy to give both economies a chance for development. So far, both India and Poland has practicalised freight exchange through gateways- Frankfurt Airport (FRA) or Amsterdam Airport Schiphol (AMS). That is why some of the very important cargo, mostly perishables and pharmaceuticals had no chance for

At the moment, we are working together with our partners from Group Concorde regarding connection with all major cities by trucks and other partner airlines due to interline agreement.

proper transportation. After LOT opened routing to India, we have seen good response from both markets and this is satisfactory.

For the Indian market, what's your strategy for the coming years?

Our desire is to open more destinations and frequencies. This would depend on bilateral discussions between authorities; we see big potential in connecting with one of the fastest developing markets – India. For cargo, there are always top five cities: New Delhi, Mumbai, Chennai, Bangalore and Hyderabad. We will see if or when it would happen but especially Mumbai looks very attractive right after Delhi for us. At the moment, we are working together with our partners from Group Concorde regarding connection with all major cities by trucks and other partner airlines due to interline agreement. Our main goal is to connect Central Europe with the Indian subcontinent, which would only be possible after, fast and reliable transportation set up and shorter transit time.

Pharma is an important air cargo product. How is LOT

Polish Airlines gearing up for tapping the potential of pharma shipments from across its destinations?

This year LOT Cargo had put maximum efforts to gain top competences on pharma supply chain. We are sure that this is in the right direction to know market demands and be prepared for different commodities on markets. At the moment, we are offering passive and active system in the maximum efficient way. Our B787 fleet has unique temperature controlled cargo compartments, good for passive temperature systems. For active temperature, LOT Cargo uses CSafe active containers with maximum performance and reliability to flight with no limitations on number of ULD positions due to hazmat regulations or any other restrictions. Today, even the whole lower deck of our Dreamliner’s could be loaded in active temperature controlled containers. On average, there are six PMC positions.

How would LOT Polish Airlines strategise on the exports and imports from India?

As an airline, we are very excited of the likelihood to carry goods in and out of the country. Generally, exports from Central Europe are mostly automotive, high value shipments, industry and pharmaceuticals (mostly insulin and antibiotics). From India, we see huge potential in pharmaceuticals in passive systems, fashion, as well as perishables like mango. We also cannot ignore the prospect of having to move electronic products from countries like China to India, and therefore we do look for the possibility to transport products such as mobile devices in the future. CC

november 2019 - CargoConnect

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Interview

FFFAI has played a crucial role in activating and developing the INSTC trade Adopting and being adept with the paradigm shift in dynamics of freight forwarding and logistics is a challenge for the industry.

Therefore, Federation of Freight Forwarders' Associations in India (FFFAI) is focussing on the members to be conversant with both domestic and global changes and challenges while assuming importance in view of present government's impetus on manufacturing, trade facilitation and infrastructure development.

Shankar Shinde, Chairman-elect, FFFAI explains Upamanyu Borah more on their functions and role as an apex body.

How do you see the future of customs brokerage business in India? What will be the role of FFFAI to benefit its members?

In view of the current challenges including increasing pressure on profitability, emerging technologies, compliances, government policies/rules and regulations, etc. customs brokers have to think beyond customs brokerage services to cope up and diversify their business.

They should be able to provide other allied value-added services in the field of international supply chain. At present, customs are looking for reliable and safe operators by providing Authorised Economic Operators (AEO) Certification, which adds value to their business.

FFFAI’s prime focus would be to empower customs brokers by supporting them with soft skills training, protection and safeguarding fraternity interest, professionalising the unorganised and enhancing productivity by offering technology platform.

In view of the current market trends what would be your recommendations to the industry stakeholders to cope up and grow?

The market trend is the lifecycle of the economy which changes with demand and supply. Every person in the system has to change their business models depending upon the revenue stream and the opportunities. Stakeholders should look forward for various other business verticals. Customs brokers should look forward for the opportunities in freight

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forwarding, warehousing and transportation, and integrate with the partners in the international supply chain arena.

Setting up infrastructure with branch offices not only in overseas countries but also in India may be a challenge and therefore LSPs should seek for partnering model to show their presence at various destinations networking for providing services. FFFAI would be happy to create such platform for its memebers.

What growth prospects do you see on the INSTC route? Kindly inform about the recent developments on this route.

FFFAI has played a crucial role in activating and developing the International North-South Transport Corridor (INSTC) trade. The Indian government investing in Chabahar Port itself realises the significance of developing the trade for India to and from Iran/Russia and Commonwealth of Independent States (CIS) countries.

The new activated route saves time and offers advantage over other countries to reach shipments in lesser time.

The reduction in transit time from 45 days on the traditional route via St Petersburg/Novorossiysk to 25-30 days on the new route via Bandar Abbas/Chabahar to Russia with lesser transit time to CIS countries is an added advantage for trade to seek opportunity.

The route connects various CIS destinations directly by rail; however some issues of rail infrastructure connectivity and missing links call for multiple trans-

shipments to Russia. These gaps are expected to be filled in the next six months.

However, the uncertainty of sanctions also remains a potential concern area for trade confidence and trade participation due to political compulsions.

What are your expectations from the present government and industry stakeholders for the development of manufacturing, export/import, logistics and allied industry?

Government should look into developing infrastructure and supporting logistics industry by creating seamless movement of goods. In the recent years, the government has taken various initiatives to reduce cost and dwell time (self-assessment, risk management in customs, Participating Government Agencies (PGA's) digital customs clearance, Single Window Interface for Facilitating Trade (SWIFT), Direct Port Delivery (DPD), AEO facilitation measures, etc). Besides, we are also seeking the Self-Regulatory Organisation (SRO) status from the government for our industry to have all common practices in place and achieve ease of doing business and transparency in the system.

Going forward, I would look forward to setting up a ‘Co-operative Model’ in consultation with the government for establishing a common IT Platform for competitive advantage. This would help enhance productivity, employ expertise to create domain knowledge and retain outflows within members. CC

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Interview

OFFERING THE SUSTAINABLE solutions FOR WAREHOUSE INSULATION Sustainable development in the logistics sector has long been an issue to mull over, in present times when every organisation is exploring various methods of utilising its resources in the most environment-friendly manner. Rajiv Lal, Managing Director, Divine Thermal Wrap informs Saurabh Sharma as to how their line of products helps save great amount of energy in warehouses, commercial buildings and cold supply chain through thermal insulation.

Enlighten us about the range of products that you offer and their uses in the supply chain and warehousing industry.

Basically, we are in the manufacturing of thermal insulation sheet called ‘Thermal Wrap’. During summers, Thermal Wrap insulation helps block 97 per cent of the electromagnetic radiation that comes to the earth from the sun and enters a building; the balanced heat enter by conduction and convection. Thermal Wrap has vast usage in warehouse insulation below the roofing sheds, green buildings, shipping of pharmaceuticals and other box insulated products which require a certain temperature to be maintained throughout the delivery.

How are your offerings distinct from other conventional insulation products available in the market?

Our products offer reflective insulation.

We use the aluminum sheet in the wrap which reflects or sends back the heat avoiding it to pass through it. The whole range of product from 4 mm to 20 mm Thermal Wrap Sheet offers the highest reflectivity, while aluminum net makes it corrosion-free and increases the longevity. Our all three plants use advanced technology; they are the first-of-its-kind high speed plants in India which use Extrusion Technology.

Currently, which major verticals are you catering to?

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We have been furnishing the installation of our products to diverse verticals in the supply chain industry, such as automotive, E-commerce companies, 3PLs, cold supply chain firms and warehouses across the country. Besides this, we are also exporting our products to nearby countries like Sri Lanka, Bangladesh, Nepal and various other regions in the Middle East and Africa.

In which domain is the demand for thermal insulation highest and why?

Be it supply, distribution, storage or procurement, the need for thermal insulation is salient to each domain. We cater to the demands of various organisations who handle their respective supply chain operations, yet it becomes indispensable to the warehousing sector and in the supply of temperature sensitive materials. Insulating a warehouse or any other commercial building can save up to many millions incurred in energy annually. It’s huge; one can also save a major portion of the money going into utility bills. Sometimes the cost paid in lieu of utility bills is much more than that of the investment in warehouse insulation. Therefore, insulating the warehouse is important for attaining stable and desirable conditions.

How is Thermal Wrap serving the purpose of realising sustainable development in logistics sector?

A major concern these days is to improve the environmental conditions by reducing carbon footprints. Insulation helps reduce the energy consumptions which further leads to a reduction in fuel consumption that is essential for heating and cooling.

Divine Thermal Wrap is fully committed to the idea of providing clean and green solutions to the industry with products which drive maximum optimisation of energy and zero harm to the environment. In the manufacturing industry, we take care of the adequate disposal of by-products making it free of any kind of deleterious emission.

Any future plans to expand the venture further, in terms of adding new products or establishing more advanced plants across the country or outside?

We already have three major plants in India, two in Faridabad and one in Bangalore, all of them are equipped and mechanised with advanced technologies which meet all the global standards like that of America, Europe, Australia, Japan, etc. Our research and development team ceaselessly strive to incorporate the finest and swiftest developed technologies with the aim to export 60 per cent of our manufacturing capacity. As of now, we are just planning to diversify our current range of products by customising it to meet the ever changing dynamics of the industry. CC

SURECOM MEDIA

The big box logistics model has benefitted us significantly across verticals

Shipper Speaks

Pepperfry has enhanced consumer experience manifold by building curated home furniture and décor marketplace, ensuring highest levels of quality control and providing a robust post-transaction experience through last-mile delivery and installation services. Vikas Sharma, AVP- Supply Chain, Pepperfry informs Upamanyu Borah about the company’s market leading position, which is a combination of innovation and rapid expansion of its logistics infrastructure, packaging, fulfilment and transportation capabilities to meet the growing business demands.

O

utset of operations

Over a period of seven and a half years, Pepperfry has established itself as a leader in the online home and furniture segment by building special competencies to serve the Indian market and bridge existing gaps in the segment.

In 2014, Pepperfry pioneered the omnichannel model by launching its first experiential studio in Mumbai.

Today, the company operates 65 such studios across 24 cities in India, which are built on the solid bedrock of an unparalleled supply chain infrastructure. These studios allow Pepperfry to interact with consumers through multiple touch points.

Leveraging the understanding of Indian consumers in the segment, Pepperfry introduced ten dynamic house brands, each of which can be distinguished on the basis of their design philosophy and price points, therefore democratising the furniture market. To elevate customer experience further, and cement its position in the market, the company built its own logistics network becoming the first-of-its-kinds in the online furniture segment.

Overcoming barriers to distribution

Initially, a robust logistics framework continued to be a challenge for Pepperfry. The company relied on third party vendors to ship its products, as the logistics infrastructure in India for large item delivery was significantly under-developed and shipping bulky

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items such as furniture was either prohibitively expensive or took too long.

The company also faced challenges like lack of earnestness on the part of vendors to go beyond stipulated practices to deliver to the doorstep of consumers.

Pepperfry therefore constructed a proprietary hub and spoke large item distribution model that significantly reduced per unit shipping costs, increased scale and operating efficiencies and achieved unprecedented service levels at negligible damage rates.

Leading innovations

Pepperfry has introduced various innovative techniques like blanket deliveries that are environment friendly and ensures zero damages as these blankets can be re-used saving carbon footprints. Besides, specialised product handling techniques such as staircase trolleys for delivery of products to highrise apartment, shoulder dollies to lift products easily and tool boxes to enable open packaging, are practiced.

Pepperfry has replaced wooden crates with honeycomb boxes and corrugated boxes with higher specifications, which have helped to reduce

delivery timelines, save cost and improve customer experience. In addition, Pepperfry has introduced angle board framing, styrene fitments for fragile glassware, and pizza box packs for furnishings.

The company has also deployed a proprietary tool to track, update and execute deliveries alongside a customised warehouse management system (WMS) at fulfilment centers to handle multi-box parent child complexity. Vehicle tracking and maintenance tool for in-house vehicles and the last-mile mobile application for real time delivery updates are other technological features in use in operations.

To stay healthy, every aspect of a business needs feedback loops. Pepperfry’s feedback loop data monitoring and processing systems gets triggered basis certain conditions and raises appropriate alerts, enabling the company to take pre-emptive measures to ensure seamless services.

Building relationships

So far, Pepperfry has collaborated with over 10,000 suppliers, 3,000 artisans, and 3,000 suppliers across sourcing hubs.

Pepperfry’s supply chain team works closely with merchants on the movement of the products from the warehouse to the customer’s doorstep. Today, leading brands across the furniture and home industry sell their products on Pepperfry. The seller support team warrants onboarding suppliers to ensure they understand the

quality standards and protocols set up

by Pepperfry.

To celebrate the burgeoning partnership, Pepperfry felicitates its suppliers at the Annual Merchant Conference.

The conference forms a key part of Pepperfry’s endeavour to recognise the efforts of suppliers who have been imperative in helping the company build a differentiated catalogue of more than 1,00,000 products.

With above, the company works with the best logistics partners in the industry and has built a robust Key Performance Indicator (KPI) driven incentive program for them through which there is provision for structured periodic reviews.

For customers, Pepperfry provides assembly and installation support through a team of more than 250+ carpenters across major towns and cities.

Logistics and SCM Management

Pepperfry is the first online furniture marketplace to build its own logistics network - Pepcart, which has helped in not only rationalising time and costs but also overcome sectoral challenges that existed erstwhile.

For efficient management of its vast network and product portfolio, the company has built a proprietary large item distribution logistics model. Pepperfry commenced the origin to hub shipment process through contracted trucking arrangements in April 2013, and since then the company has significantly reduced per unit costs with increasing scale and operating efficiencies.

Pepperfry has assigned service officers within Pepperfry’s delivery team who look after special requirements like scheduling of delivery basis customer request, change of address, route planning basis heat map with zoning logic, carpenter scheduling along with delivery, timely delivery status updates through SMS and ensuring loading of products using vehicle partition to improve vehicle utilisation and reduce damages in transit. The executives are liable to draft/login a planning sheet and incorporate the same in the route planning algorithm.

Today, Pepperfry runs India’s larg-

est big-box supply chain in the country.

The company’s specialised large item delivery fleet of more than 350 vehicles operating from 19 hubs across the country serves customers in 500+ cities.

Flexibility

Pepperfry’s customers are always wellinformed about their order; this is done at various stages of the customer interaction cycle. The process starts from cataloguing and continues into sharing expected delivery timelines, post-purchase tracking of product location through unique tracking URL and regular Email and SMS communication from the delivery team for assembly.

In case of a cancelled order or a

Pepperfry has implemented ‘WE CARE’ program where each letter has a meaning associated with customer ethos in mind and stands for World-Class ServiceConsistent, Accurate, Responsive and Empathetic. delayed del iver y, i n for mat ion is promptly shared through Email or SMS. If an unresolved complaint is raised (through various channels), the customer service team contacts the customer within the defined timelines and ensures closure within servicelevel agreement (SLA).

Pepperfry’s focus is on non-repeatability, which is accomplished by undertaking thorough follow-ups with the concerned customer until any pertaining issue has been resolved. Additionally, Pepperfry has a ‘track your order feature’ where every customer can track the product in the delivery cycle and is well-informed about the expected date of delivery. It also incorporates real-time calculation of delivery timelines that has a 98 per cent hit-rate of the promised timeline.

Success rate formula

The big-box logistics model has benefitted the company significantly across verticals. The key factors that have re-

sulted in a seamless customer service are significant reduction in timelines, minimum cancellations due to damages in transit, reduction in shipping costs and lower attrition of logistics staff. Other key differentiators such as 100 per cent open delivery, blanket deliveries, auto scheduling of deliveries among others have been highly appreciated by customers.

Pepperfry has successfully implemented ‘WE CARE’ program across blue-collar employees where each letter has a meaning associated with customer ethos in mind and stands for World-Class Service- Consistent, Accurate, Responsive and Empathetic.

Pepperfry tracks NPS as a key indicator to customer satisfaction. The NPS for the organisation stands at 65+ for over last three years. Social media is another yardstick where Pepperfry is in the top percentile in E-commerce with highest social media applauds and clean Facebook and Twitter walls. Pepperfry takes pride in having the highest repeat order customers of 50 per cent in the industry.

Certifications and Standards

Pepperfry recently received the International Organisation for Standardisation (ISO) certification for its 2,85,000 sq ft Mumbai fulfilment centre. This makes Pepperfry’s warehouse the first in India to be ISO certified with three critical certifications and the only one in the furniture and home segment in the country to attain this accreditation.

T he compa ny ’s wa rehouse i n Padgha of Bhiwandi spanning across 2,85,000 sq ft and one of India’s largest furniture warehouses built with stateof-the-art automation and material handling capabilities including G+7 racking systems, battery operated trucks and multi-storey fetching reach trucks, received certification for ISO 9001:2015 (QMS- Quality Management System), ISO 14001:2015 (EMS- Environment M a n a g e m e n t Sy s t e m) a n d I S O 45001:2015 (OHSAS- Occupation Health Safety and Assessment Series). The ISO 9001:2015 certifies the high emphasis on quality and operating efficiency of Pepperfry fulfilment centres. CC

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Increasing adoption of advanced technologies are expected to drive market growth

Shipper Speaks

The focus of the supply chain management function has shifted to advanced planning processes, such as analytical demand planning or integrated sales and operations planning (S&OP), which have become established business processes in many companies, while operational logistics has often been outsourced to third-party or LSPs. Anil Kumar Mishra, National Logistics Head, South Asia, pladis Global explains Upamanyu Borah the opportunity that value chains have to reach the next horizon of operational effectiveness, to leverage emerging business models, and to transform the company into a digital supply chain.

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enesis and Business Overview

pladis is one of the fastest growing global snacking companies, based in the UK. Formed in 2016, the company is the proud steward of over 300 years of family baking and confectionery experience, and home much loved brand McVitie’s.

The expertise of the conmpany’s 17,000 global workforce spans 34 factories in 13 countries across Europe, the Middle East, Africa, the United States and Asia Pacific, and is founded on collaboration, agility and resilience.

Within two years of operations, plaids emerged as one of the fastest growing companies in the FMCG sector, with annual revenues in 2017 of £3.5 billion. The company expanded into new markets and used its global footprint to grow its brands and products in new and innovative ways – and now pladis has the potential to reach more than 4 billion people around the world.

Supply Chain Practices

Firstly, at pladis, we focus on advance planning for crafting a reliable and efficient supply chain to meet the timelines of internal and external customer demands, production, and other aspects of logistics such as freight forwarding, custom clearances and documentation process. Secondly, use of reliable transporter and suppliers in the long-term for a win-win situation. Besides, pladis focusses on speed, keeps pace with rapid digitalisation and maintains fill rate above its safety stock

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to balance the inventory along the economic order quantity, with catering to the entire CSD/CPC market pan-India.

 Using of Enterprise Resource Planning (ERP) software

Warehouse and distribution plan strategies

Develop is the next stage in supply chain management. It involves building a strong relationship with suppliers of the raw materials needed in making the product the company delivers. This phase involves not only identifying reliable suppliers but also planning methods for shipping, delivery, and payment, including:  Use of technology and a close watch on the ongoing and upcoming activities  Advanced planning and clear requirements  Close coordination and communication  Tech-based live Management Information Systems (MIS)

Improved production logistics solutions are major drivers of productivity development. In the FMCG industry, warehouses play a key role in the integrated logistics strategy and its building and maintaining good relationships between supply chain partners. Companies must accomplish the following objectives, regardless of the material being stored:  Consolidation to optimise freight on long and short haulage  Setting up internal benchmarks which further reduce our cost per order or hold the cost in line as volumes increases  Performance measurement or Key Performance Indicator (KPI)  Developing flexible, scalable storage racking layouts  Outsourcing warehouse operations with Third-party Logistics (3PL) or Carrying and Forwarding Agent (CFA)  Reducing number of handling to avoid damage  Training the CFA team on regular basis  Standard Operating Procedure (SOPs) for warehouse and inventory management  Using the right Material Handling Equipment (MHE) in accordance with the Personal Protective Equipment (PPE)

Fostering relationships

Expectations for LSPs

Shipper’s expectation of a Logistics Service Provider (LSP) operating in the segment is most likely the daily operational effectiveness and efficiency against the contract, which too often is based mainly on price. Less clear are the expectations by clients for a more multi-dimensional approach to the contract, such as the capability to effectively manage the client’s variables in demand and supply, including manmade and natural emergencies.

However, LSPs need to be proactive in understanding the need of clients and should be flexible and tech-savvy, well-informed, innovative and compli-

ant, especially in the FMCG industry.

Besides, warehouse hygiene and safety should always be a priority for any warehouse service provider.

Additional examples of challenges to growth for LSPs in the Goods Movement Services segment are:  Achieving what was originally promised to win the contract  Improving the satisfaction level for provided IT services  Demonstrating ongoing projects that reduce costs and/or improve service  Addressing the threat that elements of the process, or the whole process could be overtaken by a different technology or a disrupter start-up  The closer a services business is to the ultimate consumer, the more likely this could occur  Selling the capability to be entrusted with more responsibility

Tech-enabled procurement: Scope

Digital procurement which has huge scope in India and increasing adoption of advanced technologies are expected to drive market growth. Its potential further lies in:  Government’s support for digitalisation  Introduction of e-procurement, or electronic transmission of data  Just in Time (JIT) and Vendor Managed Inventory (VMI)  Supplier collaboration and innovation  Strategic alignment and posture  Capabilities and culture  Centralised, Decentralised & Hybrid Sourcing Structures  Category management and execution

Challenges in technology adoption

The below listed areas portray an interrelated dynamic – emerging technologies and digital transformation place greater pressure on existing IT infrastructure and cause companies to explore alternative delivery models

(e.g. through third-party arrangements), while giving rise to new cybersecurity and privacy risks – all of which require an evolution in the skillset of IT auditors.  IT security and privacy/cyber security  Infrastructure management  Emerging technology and infrastructure changes – transformation, innovation, disruption  Any new system or technology that is adopted by your company will require some form of training in order for your employees and staff to use it.  Regulatory compliance  Budgets and controlling costs  Cloud computing/virtualisation

Today, sustainability is fast becoming a key conversation starter in unlocking greater efficiency and cost savings in the supply chain.

Catch up to industry trends

The business world moves faster than ever these days, and with the rapid advancements in technology, it can feel like a constant struggle to keep up. But there’s a difference between barely keeping pace with your competitors and being so far behind that you’re completely left in the dust. Heeding to the below will be the best way to catch up:  Customer focus  Cost optimisation  Agile distribution  Profitable business ideas  Digitalisation and interconnection of products and services, business models, and value chains

Identifying megatrends

We expect that the supply chain of the future will undergo a major transformation process. At the end of this process, supply chains will act ‘on their own’ with the ability to self-regulate

and take appropriate actions, and as a result, will impact strategy, organisation, business results and more. I predict few factors will converge as we move toward this transformation:  Lean-Green-Digital Supply Chain  Speed to the market /customer  Product Quality on shelf  Leveraging distribution network for making it a profitable business specially in the cold chain  Forecast accuracy  Ageing stock which impact bottom line of the company  GOYA– know your customer, know your business, relentlessly raise the standard, alignment /collaboration, take ownership and lead in area  Performance measurement to know the status  Inventory management and regular monitoring of the progress through Management Information Systems (MIS) for business discussion

Next-gen supply chain

Technologies like robotics and automation, Internet-of-Things (IoT) Artificial Intelligence (AI), predictive analytics, Blockchain, and innovations in the field of driverless vehicles and drones, has a big role to play in the next-gen manufacturing supply chain. Besides, companies will increasingly focus on making their supply chain more agile and lean, green and digital with real-time visibility into the goods and tracking of assets across the supply chain.

Today, sustainability is fast becoming a key conversation starter in unlocking greater efficiency and cost savings in the supply chain. Cost savings, efficiencies and higher profits are still a key driver for businesses and have become recognised as one of the major drivers of sustainable supply chain changes. Other practices would include:  Optimising inventory and focussing on ageing stock  Shifting focus from B2B to B2B2C  3D printing for faster and cheaper production. CC

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n ews Hyderabad Airport launches cargo charter circle

Govt to form committee for development of minor ports

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he government is set to form a committee to assess the potential of over 150 non-major ports in the country, and link them with major ones to form a national grid for ports.

The move will help increase India’s export-import (EXIM) cargo, Shipping Minis-

ter Mansukh Mandaviya said.

A plan for development of minor ports will be sent to states within six months, and they can decide whether to develop them on their own or through the public-private partnership (PPP) mode, Mandaviya said.

Of the 204 minor ports in

the country, only 44 are functional. A committee consisting of representatives from shipping ministry, maritime states, Indian private ports and terminals association (IPPTA), chaired by Additional Secretary of the shipping ministry will assess the potential of each minor port, their downstream industry, agricultural potential, and will then suggest a plan to states for their comprehensive development.

India charged to be global hotspot for electric mobility: Report

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ollowing a strong Central Governmental push towards Electric Vehicles (EVs), India has the potential to become one of the largest EV markets in the world.

A new analysis released today by the World Economic Forum, the International Organization for Public-Private Cooperation and the Ola Mobility Institute shows there are ten states and union territories building momentum for

electric vehicle usage across three areas: manufacturing, infrastructure and service sectors. Given India’s role as part of the global big four automotive players (among the US, China and Japan), large-scale changes to the Indian market would impact the industry’s global footprint.

The report EV Ready India, Part 1: Value Chain Analysis of State EV Policies examines programmes and policies

in Andhra Pradesh, Bihar, Delhi, Karnataka, Kerala, Maharashtra, Tamil Nadu, Telangana, Uttarakhand, and Uttar Pradesh. It highlights the possibilities for the sector and builds a common framework for analysing state EV policies through trend analysis of value chains.

DP World launches accelerator platform for logistics startups

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lobal port operator DP World has launched an accelerator programme Log-X to encourage innovation and technology adoption in the Indian logistics sector. The accelerator programme will be run in cities like Mumbai, NCR and Banga-

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lore, in partnership with Invest India, Kerala Start-Up Mission and DP World’s accelerator partner Startup Réseau, to encourage innovation and technology adoption in the Indian logistics sector.

Log-X is an accelerator programme for entrepreneurs

working in logistics and other sectors associated with it to leverage digital technology that can develop smart trade solutions. The programme will focus on technologies like blockchain, artificial intelligence (AI), robotics, simulators and the Internet of Things (IOT).

G

MR Hyderabad Airport Cargo launched ‘Hyderabad Cargo Charter Circle (HC3)’, an innovative and dedicated platform for facilitating cargo charter operators via Hyderabad Air Cargo Terminal, in the presence of charter operators, freighters, shippers, consolidation agents, freight forwarders and other airport stakeholders.

The move is to develop Hyderabad as an Air Charter Hub in South and boost the regional direct connectivity and link it to the main hubs across the globe.

HC3 entails a membership programme, in which the affiliates will have several benefits like additional free cargo storage time, single point of contact for all aspects related to cargo handling and a 24x7 customer centric response, priority storage allocation, and end-to-end logistics support within the terminal, among others.

Vistara to start daily flight on Delhi-Thiruvananthapuram route

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ull-service carrier Vistara has announced the addition of Thiruvananthapuram to its rapidly expanding network, with daily direct flights to and from the national Capital, Delhi, from November 9.

Thiruvananthapuram becomes Vistara’s second destination in Kerala after Kochi, and the 33rd destination in its network. The airline has announced an introductory, all-inclusive, one-way economy fare starting at `5,299 and `21,999 for Business Class.

n ews Govt needs to lower taxes on Indian aviation sector, make it more competitive: SpiceJet chief

E

mphasising the need for a hol i st ic approac h, SpiceJet chief Ajay Singh has called for lowering of taxes on the aviation sector to make it more competitive as well as ensure that the costs are in line with the peers.

Singh noted that India is the only country which taxes aviation fuel at an average of about 35 per cent. Fuel is a major component of an airline's operational costs.

Since Indian carriers are seeing a much higher cost of operation, they are not competitive compared with others and that is one big issue, Singh said. The other big issue is on the maintenance and re-

pair operations. In maintenance and repair operations as well, we pay a GST (Goods and Services Tax) of 18 per cent, he added.

Singh also stressed that India should have its own international hubs like Dubai, Abu Dhabi, Doha, Singapore and Bangkok, and stop exporting traffic into these hubs. "It is

important for a large country like India to have people go directly from Delhi, Bombay, Bangalore and Hyderabad to Europe and the US and the Far East. So, we need to ensure that a policy action is taken on that front," Singh said.

Further, Singh added that among BRICS grouping, India remains the only one where there is no major assembly facility of either Boeing or Airbus. “I think on engine repair for example, again, we need to ensure that larger engine makers like CFM or Pratt & Whitney and or Rolls Royce start by setting up at least maintenance and repair facilities within India," Singh said.

Cargo volume at major ports grows 1.48 per cent in April-September

T

he country’s top-12 major ports have recorded a marg i nal 1.48 per cent upswing in cargo handling at 348.44 million tonnes (MT) in the April-September period of the current financial year, according to ports’ apex body IPA. The growth at these ports, which had handled 343.37 MT cargo in the corresponding period of the previous financial year, was driven mainly by higher handling of coking coal, fertilisers and iron ore.

The 12 major ports - Deendayal (erst while Kandla), Mumbai, JNPT, Mormugao, New Ma ngalore, Coc h i n, Chennai, Kamarajar (earlier Ennore), V.O. Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia) handled 348.44 MT of cargo during the April-September

JNPT mandates BlackBuck to run truck trailer e-market place to deliver containers

S

tate-run Jawaharlal Nehru Port Trust (JNPT) has authorised on-line truck aggregator BlackBuck to roll-out a ‘Uber’-like model for picking up and dropping cargo containers from and to some 34 container freight stations (CFS) located in a 50-km radius of India’s busiest container gateway, as part of a plan to improve ease of doing business, cut costs and drive efficiency.

This will be BlackBuck’s second such deal after striking a partnership with Maersk Line, the world’s biggest container shipping firm, in August, to aggregate trailers for moving containers.

JSW Infrastructure to buy 14 mini-bulk carriers

2019 period, according to the latest data by the Indian Ports Association (IPA).

Increasing demand from various sectors including coal, fertilisers, iron ore and containers was the main reason for the growth in the traffic, IPA said.

NHAI readies infrastructure to accept tolls only through FASTag

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he use of FASTag may increase exponentially on National Highways from December 1, as toll plaza windows in all lanes of National Highways across the country will start accepting FASTag, the RFID chips on each vehicle.

The present rule mandates at least one lane accepts Fastag.

“With effect from December 1, we expect all lanes of National Highways to accept FASTag, the electronic tolling system,” said Nitin Gadkari, Road Transport and Highways Minister, where the plan to connect Fastag with GSTN was being announced.

The move will enable users to zoom through toll plazas on national highways by making payments electronically.

J

SW Infrastructure Ltd will buy as much as 14 more mini-bulk carriers that can mov cargo between its Jaigarh and Dharamtar ports for the captive use of the group’s steel mill and the upcoming cement plant at Dolvi located along the Amba river in Maharashtra. At about USD 9 million per vessel, the total acquisition cost for the 14 ships would be about USD 126 million.

Cochin Shipyard Ltd is constructing four mini-bulk carriers for Utkarsh Advisory Services Private Limited, part of JSW group. The other 12 ships are under construction at a Chinese yard. november 2019 - CargoConnect

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n ews Celebi launches bonded trucking from Kolkata, Indore, Vizag, Jaipur and Goa

C BMCT becomes fastest to reach one million container handling milestone

B

harat Mumbai Container Terminals (BMCT), the facility run by Singapore’s PSA International Pte Ltd at Jawaharlal Nehru Port Trust (JNPT) near Mumbai, handled its one millionth twenty-foot equivalent units (TEUs) last week, becoming

the fastest to reach the feat for a terminal in India.

The milestone was achieved despite the problems related to the inter-terminal transfer of containers by rail which was resolved in August this year, an issue that led PSA to file a com-

plaint with India’s anti-trust regulator against its rival terminals in JNPT. The issue has since been closed.

The one millionth milestone came during the call of M V Bermuda, a container ship owned by French line CMA CGM on October 18.

A P Moller-Maersk opens exclusive facility to train cadets in Tamil Nadu

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anish container logistics giant, A P Moller Maersk laid the foundation stone for A P Moller-Maersk Centre of Excellence facility at Thenpattinam in Tamil Nadu to support skill development and training ne eds for Maersk c adet s across job functions such as deck, electrical and engine.

T he compa ny i n ked a Memorandum of Understanding (MoU) with the Academy

of Maritime Education and Training (AMET) University to jointly operate this facility w it h a n a i m to ma i nta i n steady channel of Indian seafarers for its operations.

The centre of excellence

will come up over eight acre of land pa rc el (32, 375 s q mtr) and will be a part of a larger 12 acre (48,500 sq mtr) marit ime campus set up by AMET and w ill be equipped with facilities such as smart classrooms, workshops, and will house approximately 160 deck and engine cadets for Bac helor ’s prog ramme i n Nautical Science and Marine Engineering.

elebi Delhi Cargo Terminal Management India in collaboration with Shreeji Translogistics have started bonded trucking service from Kolkata, Indore Airport, Vizag and Goa to Celebi Terminal Delhi IGI Airport from October 1, 2019 to provide their customers a possibility to move air cargo in an efficient, safe, process-driven and costeffective manner.

These bonded services will facilitate Celebi’s airline customers to offer services to a city to which they do not fly and help CHA/freight forwarders to custom clear, handle duty drawback and shipment documents at origin, while avoiding multiple handling and damage to cargo.

Essar Ports H1 cargo handling up 21 per cent

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ssar’s Ports Ltd., which operates four terminals on the east and west coasts of India, has registered a 20.07 per cent growth in cargo volumes with a throughput of 27.29 million tonnes (MT) in the first half of 2019-20.

The growth has been driven by a 183.21 per cent increase in third-party cargo compared to that in the corresponding period of the previous financial year. Cargo from captive customers grew by six per cent, the company said.

Captive cargo volume grew by 6% to 20.24 MT, while third party cargo volume grew by 183.21 per cent to 7.05 MT, it added.

SERVICES

A World One Team

International air freight, International ocean freight, Multi-modal service, Cross border road freight, Domestic transportation, Bulk freight shipping, Customs entry, Cargo insurance, Integrated logistic services, Warehousing

AWOT Global Logistics (India) Private Limited

4 Floor, M.R. Arcade (Opp Vijaya Bank), Near Byrathi Cross, Hennur-Bagalur Road, Bengaluru 560077 Tel/Fax: +91-80-28445044 ext 111 Web: www.awotglobal.com GLOBAL NETWORK: CHINA, HONG KONG, TAIWAN, KOREA, USA, CANADA, SINGAPORE, VIETNAM, THAILAND

n ews Delhi-Meerut Expressway to be completed by March 2020

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n a big infrastruct ural boost for commuters of the NC R , t h e C e n t r e h a s thrown open the 22-km long st retc h bet ween Dasna and Hapur in Ghaziabad, a

part of the Delhi-Meerut Expressway project.

The 82-kilometre long Delhi-Meerut Expressway connects the national Capital with Meerut. On its comple-

tion in the next three four months, a total of `8,346 crore would have been spent on the full project, which would reduce the travel time between the two cities to 45 minutes against the existing four hours.

“We will try to complete the entire Delhi-Meerut Expressway by January 2020, two months ahead of the timeframe estimated earlier by the officials,” said Union Road Transport and Highways Minister Nitin Gadkari while dedicat i ng t he Dasna-Hapur stretch to the nation.

UPS's largest aircraft lands at Delhi Airport

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ogistics conglomerate UPS a n nou nced t he rout i ng of its latest freighter aircraft Boeing 7478F and Boeing 767 to India through GMR-led Delhi Internat ional Airport Limited (DIAL). The six weekly flights come f rom Shen zhen v ia Bangkok before landing in Delhi and then leave to Cologne, the largest international hub of UPS. This is a ‘significant’ development as with this routing, business in north India will gain faster access to markets in

I

P

arcel shipment volumes have increased steadily from India since 2013 to 2.5 billion, with CAGR of 25 per cent and year-over-year growth of 21 per cent, the third-highest rate of volume growth after China and Brazil, according to the Pitney Bowes Parcel Shipping Index.

The annual report discovered the global parcel volume reached 87 billion in 2018, up from 74 billion parcels in 2017 and the highest since the Index began. Despite unprecedented global trade uncertainty, the report forecasts this figure will more than double within the next six years and reach 200 billion parcels by 2025 with a 13.7 percent CAGR for 2019-2023.

India experienced high growth in parcel volumes in 2018, up 21 per cent year-over-year to 2.5 billion, and revenues achieving CAGR of 20 percent, boosted by rapid growth in its E-commerce market, higher levels of disposable income and increased internet penetration.

Hyundai Merchant Marine starts block train service between BMCT, NCR the western countries, according to a DIAL statement.

Rachid Fergati, Managing Director for the Indian subcontinent at UPS said, “UPS’s goal is to increase business efficiency and make the global marketplace more accessi-

DHL Express India to invest `100 crore this fiscal nternational express service provider DHL Express India is eyeing an investment of `100 crore this fiscal, as it looks to expand its presence by setting up facility centres and investing in technology.

India's parcel shipments volume up 21%

The `100 crore comes as a part of the €250 million that De ut s c he Po st DH L , t he world’s largest mailing and logistics provider and holding company of DHL Express, had committed as investments in

ble for Indian customers.

UPS’s largest aircraft - the Boeing 747-8F freighter is part of UPS’s investment of adding 10 million pounds of new lift capacity globally – the largest current expansion by any carrier.” the country till 2020.

According to RS Subramanian, Country Manager, DHL Express India, investments committed his year would go towards expanding its facilities (where cargo is handled), upgrade of existing smaller facilities to larger ones, adding new vehicles to its fleet, and also towards technology.

H

yundai Merchant Marine’s (HMM) first block train with a weekly schedule to Tughlakabad (TKD) – a key Inland Container Depot (ICD) serving the National Capital Region (NCR) of India – was launched from PSA’s Bharat Mumbai Container Terminals (BMCT). The block train was flagged off at BMCT by Sanjay Sethi, IAS, and Chairman of Jawaharlal Nehru Port Trust (JNPT).

The block train, carrying 90 twenty-foot equivalent units (TEUs) and operated by Container Corporation of India Ltd (CONCOR), offers HMM’s customers a faster intermodal connection to the NCR. Train departures are matched to HMM’s China India Express service (CIX) vessel arrivals to reduce transit times, thereby allowing CIX import customers in the NCR the quickest transits in the market. november 2019 - CargoConnect

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International Saudia Cargo obtains EU GDP

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audia Cargo has achieved European Union Good Distribution Practice (EU GDP) certification for its pharma operations.

The certification was carried out by SGS. The airline the achievement demonstrated that its storage and transportation services meet ‘all international requirements’.

“This certificate recognises that Saudia Cargo maintains and complies with the quality management standards throughout the supply chain and applies efficient procedures and policies for receiving and handling pharmaceuticals & medical products without any risks,” Abdulrahman Al-Mubarak, chief

MAB Kargo introduces new halal logistics service

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AB Kargo, a subsidiary of the Malaysia Aviation Group companies, has launched a halal

logistics service after having received MS2400-Halal Certification from the Malaysian Department of Islamic Develop-

commercial officer, Saudia Cargo said.

The company has been investing in its pharma handling capabilities of late in order to ‘enhance the quality of medical product warehouses’ by equipping ‘its main stations inside the Kingdom with state-of-theart equipment and devices to control temperature’. ment (JAKIM) on May 1.

MAB Kargo’s new halal logistics service offers hygienic and secure movement, storage and handling for both food and non-food material.

The MS2400-Certification is applicable to MAB Kargo’s warehousing and activities relating to its halal logistics and designated area. As well as meeting the requirements for the certification, MAB Kargo installed additional facilities to ensure that hala and non-halal shipments are always handled and stored separately.

Cathay Pacific Cargo reports signs of improvement in Sep-2019

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at hay Pac i f ic Group has a nnounced that tonnage carried and load factor for the year to date are ‘significantly below’ the same period last year, despite small signs of improvement compared to August.

Cathay Pacific Group reported that Cathay Pacific and Cathay Dragon together carried 172,637 tonnes of cargo and mail last month, a drop of 4.4 per cent compared to the same month last year. The cargo and mail load factor fell

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by 3.7 percentage points to 65.5 percent. Capacity, measured in available freight tonne kilometres (AFTKs), was up by 0.1 percent while cargo and mail revenue freight tonne kilometres (RFTKs) dropped by 5.3 percent.

Ronald Lam, Chief Customer and Commercial Offi-

cer, Cathay Pacific said, “Most markets saw a better month-on-month perfor ma nce a nd we mounted a number of charter operations on top of our scheduled services to meet added demand for air freight coinciding with the release of new electronic products. However, the overall market remains challenging and competitive with tonnage carried and load factor for the year to date still significantly below the same period last year.”

Envirotainer adds Hyderabad to its container logistics network

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nvirotainer, a cool chain solutions provider for airfreight, has set up a network station in Hyderabad, India, to support the release and return of its RKN e1 and RAP e2 containers.

The RAP e2 and the RKN e1 are FAA and EASA certified, temperature-

controlled air cargo ULD’s that can be carried by most airlines, get prioritised cargo status, and can be tracked and quickly processed in order to reduce the risk of shipment delays.

In recent years, Envirotainer has been expanding its presence in the Asia-Pacific region. Hyderabad is the 33rd station in the Envirotainer network that supports the RAP e2.

Swissport opens Pharma Centre at Brussels Airport

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round services provider Swissport International has opened a new Pharma Centre for handling temperature-sensitive pharmaceutical shipments at Brussels Airport.

The BRU facility is Swissport’s most technologically advanced pharmaceutical handling center to-date and offers 3,620 sq mts of temperature-controlled warehouse space adjacent to Swissport’s current facility at BRU. The facility includes two areas for different temperature ranges – a larger area of 2,620 square meters for shipments maintained at temperatures between +15-25°C, and a smaller area of +2-8°C. The Pharma Centre also includes eight dedicated truck docks and a material handling system with 432 rack and ground positions, caster decks, and forklifts and pallet movers operated solely in the pharmaceutical area.

International Turkish Cargo obtains Customer Satisfaction Management Certificate

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urkish Cargo has been certified for Customer Satisfaction Management (ISO 10002) following the development of its Feedback Management Policy.

Through its Policy, the fast-growing air cargo carrier improved its reporting and feedback methods.

Turkish Cargo placed customer satisfaction boxes at the cargo terminals in Istanbul and Ataturk airports. The boxes, which were labelled “Sizi Dinliyoruz” (“We Care About Your Feedback”), provided an accessible, fast option to provide feedback in while maintaining transparency.

Turkish Cargo maintains confidentiality for those who have submitted comments and aims to resolve feedback issues as quickly as possible.

DHL Forwarding offers new digital analytics tool

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HL Global Forwarding is continuing to grow its portfolio of digital services with the launch of a new smart service to access and analyse business data 24/7.

Called ‘myDHLi Analytics’, the online service offers customers a smart service to access and analyse their business data 24/7. This includes all relevant details about Spend (invoices), Volume, Service Quality, and Cus-

toms Activity, via dashboards.

Another member of the myDHLi product family has also been updated: DHL Global Forwarding is the first freight forwarder to offer a

Frank Mühlenkamp (Jettainer) and Pertti Mero (Airport College International) agree upon cooperation.

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Carbon Calculator within an online quotation and booking tool. Customers can assess the emissions of their shipments and also reduce their CO2 impact by choosing an alternative fuel, or an offsetting option — all within the myDHLi Quote & Book service.

The myDHLi Analytics service gathers data in one screen so that customers can explore all relevant information on their shipments. And filter options allow users to deep dive into expenses and trends in their data.

Containers and dry bulk boost growth further at Port of Antwerp

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he total freight volume handled by Port of Antwerp rose by 1.1 per cent from January through September 2019 compared to the same period last year. The container volume (in TEU) was up by as much as 6.4 per cent. However, the slowdown in the world economy reduced the growth rate of more volatile trade flows such as conventional breakbulk, liquid bulk and vehicles. On the other hand, volumes of dry bulk such as scrap metal, minerals and

Jettainer signs new code of conduct to ensure ULD care

coal soared by 9.5 per cent, further propelling the overall freight growth for Port of Antwerp.

The recent adjustments to the MSC feeder network, a network of smaller ships that take on freight from larger units in the port for onward transport, were favourable for Antwerp. As of the third quarter, two new services to Latin America provided additional imports of reefer loads from Peru, Chile, Ecuador, Colombia and Costa Rica.

ettainer has become one of the first signees to support the ULD Care Code of Conduct, intended to reduce damage and improve safety.

The ‘Ten Rules for ULDs’ list recommendations for correct handling including information on proper loading, adequate transport and the exclusive use of intact containers. As a result, ULDs are to be perceived more clearly as important components of the air freight transport system which are largely responsible for load securing and, thus, for ensuring flight safety.

Bolloré Logistics transports life saving vaccines to Iraq

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olloré Logistics Switzerland successfully carried out a highly delicate operation to transport 200,000 doses of life saving vaccines to Iraq.

A leading biotech company contracted Bolloré Logistics Switzerland to organise and execute the door-to-door shipment of 37 pallets of temperature sensitive pharmaceutical products from Europe to the Ministry of Health of the Republic of Iraq, based in Baghdad, under 40 hours.

Following an in-depth trade lane analysis, including a comprehensive risk assessment, the first operations started on 28th September 2019 at 5 am at the customer’s warehouse in Germany.

The goods were carefully packed in 37 passive cool large size boxes, equipped with cooling elements to maintain the product temperature of +2°C to +8°C for 96 hours. november 2019 - CargoConnect

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spotlight AAI and AAICLAS sign pact for baggage screening at airports

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irports Authority of India (AAI) and AAI Cargo Logistics and Allied Services Company (AAICLAS) had signed a license agreement on September 25, 2019 for in-line hold baggage screening at airports. Under the agreement, AAICLAS will be carrying out hold baggage screening function under the control, supervision and administration of AAI at various domestic and international airports. This is in compliance with the norms of Bureau of Civil Aviation Security (BCAS) ensuring safe and secure in-line hold baggage screening system.

With effect from October 1, 2019, AAICLAS will first commence operations on stand-alone screening system at Kolkata, Chennai, Ahmedabad and Calicut airports. Thereafter, in phased manner, it will switch over to BCAS approved ILBS system at all airports in the country. This synergy will create effective control and accountability in screening system. AAICLAS is the independent subsidiary of AAI with a vision to become foremost integrated logistics network operator in India with primary focus on air cargo handling and allied services. CC

78 CargoConnect - november 2019

Keku Bomi Gazder CEO, AAICLAS; I N Murthy, Member (Operations), AAI; and A K Pathak, Member (Planning), AAI; during signing of the license agreement for in-line hold baggage screening at airports.

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EVENTS DACAAI celebrates 10th anniversary with fervour

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it h f ull zeal and zest, Domestic Air Cargo Agents Association of India (DACAAI) organised its 10th Anniversary Convention and Celebrations on September 27, 2019 at Hotel Four Points by Sheraton, New Delhi. The event kickedoff with opening remarks by Amit Bajaj, President, DACAAI and Suraj Agrawal, Secretary, DACAAI followed by lighting of the lamp by Chief Guest - Vandana Aggarwal, Senior Economic Advisor, Ministry of Civil Aviation (MoCA) and Guest of Honour, Keku Bomi Gazder, CEO, AAICLAS and other prominent personalities of the air cargo fraternity.

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The theme of the event was, ‘Promoting Domestic Air Cargo: Airline- Agent Relationship.’ The panel discussion focussed on various aspects of the air cargo industry- infrastructure, process and procedures, domestic air cargo facilitation and role of logistics in the fast growing Indian economy.

Others important personalities of the air cargo fraternity who graced the event were Sanjiv Edward, COO, DIAL; Sanjiv Gupta, CEO, SpiceJet; Madhulika Babal, Dy GM, Air India; Saurabh Kumar, CEO, GHIAL; Pratik Mehta, CEO, BIAL; and Ravinder Bolangdy, Head- Cargo, AISATS, amongst others.

ACCD host Diwali bash

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ir Cargo Club of Delhi (ACCD) recently hosted dazzling Diwali night at Hotel-Atrio, New Delhi. The fun and frolic evening saw ACCD members and their families indulging in varied games and activities arranged to ensure everyone had a great time. The invitees were dressed in traditional Indian attires which added oomph and glamour. The members enjoyed the wine and Sufi music and scrumptious food.

Dachser wins the 2019 IMD Global Family Business Award

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achser, a family enterprise founded in 1930 and headquartered in Kempte n, G er ma ny, wa s awarded the 24th Annual IMD Global Family Business Award, at the 30th Summit of The Family Business Network (FBN) in Udaipur, India.

IMD recognised Dachser for its robust corporate and family governance structures combined with operational excellence and a focus on quality. Dachser has stayed true to its core business and c o n t i n u e d t o s t a n d o ut through strong values, sustained growth and a truly

global reach. It has also placed significant importance on innovation, sustainability in the area of economics, ecology and society.

From left to right: Prof Peter Vogel, Director of IMD Global Family Business Center; Marta Widz, IMD Research Fellow; Bernhard Simon, CEO Dachser SE; Birgit Kastner-Simon, Corporate Director Corporate Marketing, Dachser SE; Prof Benoit Leleux, IMD Global Family Business Award Director; Matthew Crudgington, Associate Director, IMD Global Family Business Center.

november 2019 - CargoConnect

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GHIAL bags first position for Excellence in Cost Management Parag Sanghavi's daughter chosen brand ambassador for Rwanda

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t the 16th National Award for Excellence in Cost Management 2018, The Institute of Cost Accountants of India (ICMAI) honoured GMR Hyderabad International Airport Ltd (GHIAL) with the first position for Excellence in Cost Management. The award which GHIAL received for the 2nd time in a row was conferred under the category 'Transportation and Logistics.'

eysa Sanghvi, daughter of Parag Sanghvi, CEO of H Mangaldas & Company and member of Air Cargo Club of Mumbai, is the first Indian citizen to have been appointed as the Brand Ambassador for Rwanda in India by the government of Rwanda. She has received this designation at the age of 17; making her the youngest person in the world to be appointed to this position.

This official designation has been awarded to Sanghvi by His Excellency, Ernest Rwamucyo, the current High Commissioner for Rwanda in India, Sri Lanka and Bangladesh, for the socio-economic work that she has done for refugees and genocide survivors living in Rwanda.

FFFAI elects new office bearers in its 56th AGM

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he Federation of Freight Forwarders’ Associations in India (FFFAI) elected new office bearers of the Executive Committee for the period of 2019-2020 and 2020-2021 in its 56th Annual General Meeting (AGM) held in Chennai.

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A V Vijaykumar, who was earlier Chairman-elect, has taken over as Chairman of FFFAI. Shankar Shinde has been elected as Chairman-elect for ensuing two years while Vijay Sharma, Alan Jose and Mandava Satyanarayana have become the newly elected Vice-

Chairmen of the Federation. P S Atree, Rajesh Verma and Sudip Dey have been re-elected as Vice-Chairmen. Dushyant Mulani and Sudhir Agarwal have been elected unopposed Honorary Secretary and Honorary Treasurer, respectively.

UpComingevents Logistics and Supply Chain

Air Cargo

EVENT: TIACA's Executive Summit 2019 ORGANISED BY: The International Air Cargo

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

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

To know more visit www.asia. breakbulk.com

EVENT: ACAAI 45th Annual

Convention

ORGANISED BY: The Air Cargo

Agents Association of India (ACAAI) DATE: November 21 - 24, 2019 WHERE: The Westin Siray Bay Resort & Spa, Phuket, Thailand This is the annual prestigious event for the members of ACAAI and the trade. The convention will also be attended by invited dignitaries from all segments of the freight forwarding and logistics business, government ministries and departments, airlines, airport authorities, custodians, etc. This year, the theme of the convention is ‘End-to-End Logistics - The Way Forward’. The convention will offer delegates a fabulous opportunity to engage in business sessions, networking opportunities and fellowship.

To know more visit www.acaai.in

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

Association (TIACA) DATE: November 19 – 21, 2019 WHERE: Budapest Marriott Hotel, Budapest, Hungary At the TIACA Executive Summit 2019 which is hosted by Budapest Airport, attendees will have the opportunity to hear from a carefully selected line-up of speakers and network with leading representatives from the whole supply chain. Across the three days, decision-makers from across the globe will engage in panel discussions, keynote speeches, tracks and general networking.

To know more visit www.tiacaevent.org

EVENT: 5th PHD Air Cargo Summit - 2019 ORGANISED BY: PHD Chamber of Commerce and

Industry

DATE: November 05, 2019 WHERE: PHD House, New Delhi

The objective of the 5th PHD Air Cargo Summitthemed ‘Air Cargo Industry Transformation- Future Outlook’ is to congregate all stakeholders of the air cargo industry (National & International) to come together, ideate and recommend the required policy changes and solutions for the air cargo industry’s exponential growth, which in turn will boost international collaborations & trade.

To know more visit www.phdcci.in/events/5thphd-air-cargo-summit-2019

Cold Chain

th

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

To know more visit www. globallogisticsshow.com

EVENT: 8th India Cold

Chain Show

EVENT: CPhI & P-MEC India 2019 ORGANISED BY: UBM DATE: November 26 – 28, 2019 WHERE: India Exposition Mart,

Greater Noida CPhI & P-MEC India is the ideal event for companies wanting to pick up on the latest trends and innovations the market has to offer.

At CPhI & P-MEC India, you will meet the movers and shakers from India's pharma machinery, technology and ingredients industries, giving you a competitive advantage that will help grow your business.

To know more visit www.cphi.com

ORGANISED BY: Reed Manch

Exhibitions

DATE: December 04 – 06, 2019 WHERE: Bombay Exhibition Centre (BEC),

Mumbai, India India Cold Chain Show brings together Indian and international manufacturers and suppliers to meet end-users, distributors, consultants and other key industry players from across the globe. The show allows visitors and exhibitors to build new and strengthen existing contacts, learn new industry trends, technologies and upgrade their products and services.

To know more visit www.indiacoldchainshow.com

november 2019 - CargoConnect

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APPOINTMENTS Harjeet Kaur Joshi selected as CMD of Shipping Corporation

Harjeet Kaur Joshi has been selected for the post of Chairperson-cum-Managing Director at Shipping Corporation of India Limited (SCI), the country’s largest shipping company, at a Public Enterprises Selection Board (PESB) meeting held on October 10, 2019. As many as four candidates were interviewed for the same.

Kaur is currently the Director Finance at SCI and, since September 12, has been holding the additional charge of the Chairperson and Managing Director of the navratna PSU.

Edoardo Podestá takes the helm of Dachser Air & Sea Logistics

Dachser has appointed Edoardo Podestá, a seasoned Dachser manager, as the Chief Operations Officer of the company’s Air & Sea Logistics

business field.

57-year-old Podestá joined Dachser back in 2003 as part of the management team for the Züst Ambrosetti Far East Ltd joint venture after Dachser had taken full control. In recognition of his successful expansion of the air and sea freight business in Asia, he was appointed Managing Director of the Asia Pacific business unit in 2014.

Cathay Pacific elevates Vishal Pillai to Regional Cargo Services Manager for SAMEA Cathay Pacific Airways has appointed Vishal Pillai as the Regional Cargo Services Manager for South Asia, Middle East and Africa.

Vishal started his career in the aviation industry in 2008 with Kingfisher Airlines in the Guest Services and RAMP division.

Before joining Cathay Pacific Airways in 2014 as a Manager on Duty, he was a part of the on-ground operations team at British Airways. In 2018, he was appointed as the Airport Operations Manager for Cathay Pacific.

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Gulftainer welcomes David Casey as new Group CCO Gulftainer, the world’s largest privately-owned independent port operator, headquartered in the UAE, has named David Casey its new Group Chief

Commercial Officer.

In his previous roles, David served as Senior Director of Port Solutions for General Electric Transportation, prior to which he was Director of Logistics and Transportation for the Coca-Cola Company. David also served as Director of Development for the 3PL firm Performance Team, and has held various posts at Newell Brands, V-Logic and American President Lines (APL) in the US and Hong Kong.

Nils Andersen appointed Chairman of WFS

Nils Andersen has been appointed Chairman of the board of directors at Worldwide Flight Services.

Andersen joins the Board of WFS with a wealth of significant leadership experience navigating the complexities of multinational businesses. He will provide valuable perspectives from his last 19 years spent in executive and nonexecutive board roles at large listed and non-listed companies around the world, across several industries.

B&H Worldwide CEO relocates to Singapore to drive APAC growth

B&H Worldwide’s CEO, Stuart Allen has been relocated from the UK to Singapore at the B&H Worldwide facility within the ALPS Free Trade Zone at Changi Airport to spearhead the company’s ongoing APAC expansion.

With an unparalleled knowledge of aerospace engineering logistics having worked in throughout the company’s network in a career spanning 26 years, Allen will be leading the company’s global growth plans from the nation state.

Heathrow former Head of Cargo Platts to join Riyadh Airports

Heathrow Airport Ltd’s former head of cargo, Nick Platts, will join DAA International to help develop Riyadh Airports Company’s cargo operations.

Prior to being the Head of Cargo at Heathrow Airport in 2015, Platts was the first person to lead the cargo business at the airport for around 20 years.

Previously he headed up ground handling at Heathrow and has also worked for FedEx. Platts spent the last four-anda-half years preparing the west London airport for the cargo growth to come.

Robert Van de Weg joins ECS Group as CCO

ECS Group has recruited Robert van de Weg as Chief Commercial Officer to act as ‘a disruptive force’ to help the GSSA reinvent itself ‘to embody a new business model’. With his appointment, Van de Weg aims to reaffirm its ability to guarantee cutting edge service for airlines and offer them a range of comprehensive solutions.

Van de Weg, most recently vice president sales & marketing for Volga-Dnepr Group, previously worked with KLM Cargo, Atlas Air, Cargolux and Volga-Dnepr Group which includes AirBridgeCargo and ATRAN.

The Highest Circulated/Read & Referred Logistics Industry Magazine

PEOPLECONNECT Ashutosh Dixit

Regional Head- Supply Chain Services, West and Central Asia & Africa, Maersk

Journey so far!

I started my career as an engineer in the manufacturing sector. From there, I moved into logistics where I started building my capabilities in the service industry, besides leading teams. I soon realised the potential of logistics and got tremendously fascinated with the impact I could bring into global trade along with my teams. Not only that, I also realised that there is incredible amount of knowledge generation and transfer from the best of the best as we cuts across customers, commodities, supply chain models and technologies that impact businesses across the world.

The journey for me so far has been interesting and full of learning. It has given me the opportunities to experiment, fail and learn, succeed and scale!

The biggest challenge Working in cross-cultural and multilingual environment has been one of the biggest challenges that I have faced. I have been fortunate to be part of the leadership team that has guided and implemented mergers. Managing the different cultures of the merging entities and their people to eventually integrate into one has truly been a test that I have successfully passed.

Values for success Being in Supply Chain Management, I am always looking for ways to make my customer’s supply chains effective and efficient, and driving success through customer satisfaction too.

For me, success is when I see my customers prospering and their business flourishing. This includes a lot of learning from my team mates every day; when they are happy to come to work and assist others when they need a helping hand with work, it is the true success of the entire ecosystem.

For me, success is when I see my customers prospering and their business flourishing Message for aspirants If one is willing to learn through the different chapters of life and enjoys working in a collaborative international environment, logistics is a career to opt for. It is an industry that rewards one truly in the sense of job satisfaction, making them a part of the larger purpose to create a better connected world. CC

86 CargoConnect - november 2019

Interviewed by Upamanyu Borah

Interests and hobbies I like to travel, be it jungles, sea or mountains; I love to be in the lap of nature. Besides, I enjoy spending quality time with my friends and family. Talking about sports, I am fond of playing badminton.

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JSW Infrastructure Sustainable growth is our motto of progressing towards a successful tomorrow. JSW Infrastructure is proud to be at the forefront of India’s push for infrastructure development. It’s an opportunity for us to leverage our potential and contribute meaningfully to our nation’s economic development. As an integral part of the US$14 Billion JSW Group, we build and function strategically located eco-friendly ports along the coastal belts of India and abroad. We believe in consistently delivering world-class services to our customer and help them grow exponentially.

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