Cargo Connect September 2020

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VOL XI ISSUE X september 2020 | `20

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

Leaders Leading Logistics S e r i e s c h a p t e r III

contents

Volume XI Issue X

september 2020

Chapter III COVER STORY

Publisher & Editor-in-Chief Smiti Suri Special Correspondent / Sub-editor Upamanyu Borah

Lessons 08 learned about change management

Principal Correspondent Ritika Arora Bhola Correspondent Saurabh Sharma Event Coordinator Pallavi Jain

leaders leading logistics

Ali Al Mudaifa, Director- Manufacturing,

Transport and Logistics Business Development, Bahrain Economic Development Board (EDB)..........50

Director Ajeet Kumar

Andreas Bullwinkel, Chairman, Container

Marketing Manager Rahul Arora Gagan Duggal

India & Nepal, Emirates SkyCargo............................14

Terminal Wilhelmshaven JadeWeserPortMarketing GmbH & Co KG.........................................54

Mohamed Hassan, Vice President- Cargo

Tomas Rais, Head- Logistics,

Marketing Executive Akash Gupta Rahul Jain

William Boulter, Chief Commercial Officer,

C P Jayakrishnan, CEO, Angré Port......................60 Vikash Khatri, Founder and CEO,

Guillaume Halleux, Chief Officer- Cargo, Qatar

Airways......................................................................12

Abdulla Al-Khallafi, Cargo Manager -

Operations, flydubai..................................................16

IndiGo CarGo..............................................................18

Škoda Auto Volkswagen India...................................58

Devashish Agrawal, Director, Empire Logipark

Aviral Consulting.......................................................64

bakir gandhi, Chairman & Manging Director,

special feature

(R C Warehousing Pvt Ltd)........................................20 Crystal Group............................................................24 Aveny Industrial & Warehousing..............................28

Rajesh Jaggi, Vice Chairman– Real Estate, Everstone Group........................................................30

Uday R Sharma, COO, Spoton Logistics.................36 Jasjit Sethi, CEO, TCI Supply Chain Solutions......38 Vishal Sharma, CEO – Cluster India and Indian

subcontinent, DB Schenker.......................................40

Gary M Goldfarb, Chief Strategy Officer, Interport Logistics LLC..............................................42 Vivek Juneja, Founder and Managing Director,

Varuna Group.............................................................44

József Kossuth, Head- Cargo,

Budapest Airport ......................................................46

30,355

Designer & Visualiser Ashok Saxena

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

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

Gaurav Varma, Managing Director,

K Chandramohan, Chairman & Managing Director, NTC Group..................................32

Accounts & Administration Lavish Thakur

India as global production hub: It's time for action......................................... 66

shipper speaks

Bhupendra Kumar, Head- Logistics, IOL Chemicals & Pharmaceuticals...................... 74

Regulars

Frontline............................ 6 News............................. 76-78 appointments.................. 80 report................................ 82

CargoConnect is owned by Smiti Suri,

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frontline

We announce $1.46 trillion in infrastructure projects to boost the sagging economy. The key lesson India learned from the pandemic is to become selfreliant in manufacturing and developing itself as a key supply chain destination for international companies. The coronavirus epidemic is a big crisis, but it can’t stall India’s economic progress.

Narendra Modi, Prime Minister of India

The Indian shipping ministry has set the target for annual cargo handling at 1,760 MTs in 2024 as compared to 1,280 MTs during this year. The number of ports would also to increase from the current 69 to 75 in the next four years.  COVID-19 has been more economically damaging than a standard recession or an escalation of trade tensions. The current

pandemic-driven recession ended 126 months of growth, the longest economic expansion in the American history.

While the road transport and highways ministry has set the target to increase the length of national highways by nearly 50% by 2024, railways has planned to increase cargo handling by at least 33% during this period.  Asia-Pacific airlines saw demand for international air cargo fall by 15.3% in July 2020 compared to the same period a year earlier. After a robust initial recovery in May, month-on-month growth seasonally-adjusted demand has softened.

International capacity decreased 32.0%.

 Tamil Nadu has emerged as India’s top investment destination in the first quarter

of this financial year. The southern state accounted for 18.63% of the `97,859 crore of investments envisaged to execute 1,241 projects in the country in the first quarter.

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India should increase its share in the global value chain for better economic welfare. The country’s contribution to the global value chain is quite limited. Efficient supply chain can enhance economic welfare. Investment in sectors with strong forward and backward linkages in the supply chain can generate higher production, income and employment.

Shaktikanta Das, Governor, RBI

In such highly volatile and uncertain environments, logistics has maintained its unrivalled importance. Kerry Logistics Network’s 2020 H1 results clearly demonstrated our business diversity, adaptability and agility. The group has not only adapted through the pandemic but achieved promising growth amidst heightened volatility and widespread downturn across industries.

William Ma, Group Managing Director, Kerry Logistics Network

Indian air cargo industry has successfully met the demand for perishables from the Middle East. Under the ‘Krishi Udaan’ programme, around 43,000 metric tonne of perishable cargo was handled under lockdown conditions.

The crisis has helped the Indian air cargo industry to mature and hope this maturity will be seen in the days to come.

Keku Bomi Gazder, CEO, AAI Cargo Logistics and Allied Services Company (AAICLAS)

The Federal Aviation Administration (FAA) certification is an important step forward for Prime Air and indicates the FAA’s confidence in Amazon’s operating and safety procedures for an autonomous drone delivery service. We will continue to develop and refine our technology, and work closely with the FAA and other regulators around the world to realise our vision of 30 minute delivery.

David Carbon, Vice President, Amazon Prime Air

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coverstory

Chapter III

Lessons learned about change

management

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Leaders Leading Logistics reinstated the belief that leadership is strengthened by continually referring to the big picture as an anchor for meaning, resisting the temptation to compartmentalise or to consider human life in statistics alone.

Leadership in an uncertain, fastmoving crisis is all about making oneself available to feel what it is like to be in another’s shoes — to lead with empathy, and use their position of authority to make a path forward for us all.

Upamanyu Borah

Prologue We have already witnessed how the current COVID-19 pandemic and the resulting economic impact has created a period of sudden disruption for the majority of businesses around the world as country after country was placed in lockdown.

Supply chains are directly linked to fluctuations in the economy and industries that are affected by the crisis. In

India, for example, the reverse migration of urban poor to rural areas has created a huge logistics challenge in last-mile delivery services. The shutdown of factories is having a ripple effect on their suppliers - some of whom may collapse due to financial pressure and lack of liquidity.

While companies in certain industries are struggling, others are adapting and embracing new practices and business models. It is easy to understand why so many have missed opportunities for decisive action and honest communication. But it is a mistake to think that failures of leadership are all we can expect in these grim times.

Through our Leaders Leading Logistics Series, all that we tried to do is recognise how well has global business leaders responded to the turbulence as a result of this global pandemic. What became clear is that a more emergent form of leadership that emphasises collaboration, creativity, and the engagement of people is thriving in the industry. These individuals are the people who are seen within organisations as

able to make things happen. When tough tasks are being allocated, everyone wants them to lead or be in their project team. They build teams quickly and effectively with a clear focus on what success looks like; people have clarity on their role and feel empowered to take action.

As we continued with the LLL series, we found that business continuity models and other evaluations by the leaders and their organisations were mostly based on:  Crisis management and risk analysation practices  Effective communication tools  Contingency planning  Resilient supply chain management strategies  Effective adjustments to operations cycles We learned that the traditional metrics of cost, quality and delivery when developing supply chain strategies will no longer be enough. Going forward, supply chain leaders must consider the ‘3Rs’ - Resilience, Responsiveness and Reconfigurability.

september 2020 | 9

cover story ness models will allow shedding excessive costs, overcome challenges and head straight to effective business.

 Planning long-term Arrange business development so that you can meet the most unexpected changes: demand across business verticals and user behavior. Diversify your product mix and embrace omnichannel service delivery. If you decide to become an independent player and take your transformational strategies entirely inhouse, make sure that the chosen principles are robust enough to scale and modify under the changing circumstances and sustainable in the long-term.

Practical Implications Key Takeaways  Act with urgency The risks of delaying decision-making are often invisible. But in a crisis, wasting vital time in the vain hope that greater clarity will prove no action is needed is dangerous – particularly in the face of a pandemic with an exponential growth rate, when each additional day of delay contributes even greater devastation than the last. Against the natural tendency toward delay, acting with urgency means leaders jump into the fray without all the information they would dearly like.

 Communicate with transparency Providing honest and accurate descriptions of reality – being as clear as humanly possible about what you know, what you anticipate, and what it means for people. But communication cannot be utterly devoid of hope or people will simply give in to despair. Somewhere in that communication must be a hopeful vision of the future toward which people can direct their energy, because without hope, resolve is impossible.

 Upgradation of communication Leaders must constantly update their understanding of prior probabilities, even daily, deliberately using strategies to elic10 |

september 2020

 Interactive case-based crisis planning it new information and learn rapidly as events unfold and new information comes to light. A leader’s advisory team in the face of an ambiguous threat may change over time, because new information often means new problems have surfaced and the necessary expertise will shift accordingly. Finding and leveraging the right people for evolving problems is part of the updating challenge.

 Responding decisively to missteps Because of the novelty and complexity of a pandemic – or any other large system failure – problems will arise regardless of how well a leader acts. How leaders respond to the inevitable missteps and unexpected challenges is just as important as how they first address the crisis. First, they must not revert to defensiveness or blame when mistakes are made. Instead, they must stay focused on the goal and look ahead to continue solving the next and most pressing problems.

 Embracing change The business industry will always depend on like Amazon and Walmart – they define the game rules and even stir legislation changes. Still, it is the best time to innovate and adopt independent in-house sales platforms to get first-party data ownership, implement direct-tocustomer marketing strategies and attract high-value audiences. Embrace new busi-

A strongly developed crisis response capability is required to ensure the efficient management of incidents in order to minimise associated negative impacts, meet priorities around maintenance and confidence, and to ensure the continued delivery of services. Given the unknown variables surrounding the outbreak, it is important to rigorously review crisis and business continuity plans, develop different scenarios and put them to the test.

 Boosting transparency in multi-tier supply chains Understanding the risk and resilience of a supply chain requires information about total product revenues linked to specific supplier components, the degree to which key components are single sourced, and the geopolitical and environmental risks associated with where a supplier operates and the financial robustness of the suppliers.

Fortunately, technologies like Blockchain & IoT have the potential to dramatically improve visibility across the end-to-end supply chain.

 Estimating inventory and demand - upstream and downstream Supply chain visibility that provides line of sight to capacity constraints into tier I, II and III suppliers. By going further into supply chains, organisations can get

cover story a more complete profile of where components are coming from, whether existing inventory could be re-purposed for new-product production or whether remanufacture with used stock could address supply issues. Such visibility is critical when evaluating the resilience of your supply chain and its ability to respond to disruptions.

 Identifying and securing capacity For manufacturers, guaranteeing capacity is a way to ensure revenue from its customers when the demand picks up.

For the supplier, this is guaranteed revenue which can help it secure loans and tide over financial liquidity. In the current COVID19 situation, logistics contracts may specially benefit from such an approach. When manufacturers look to ramp up production and make up time in their supply chains, pre-booked logistics capacity will keep costs in control, and enable priority access to logistics.

 Manage cash and net working capital Reducing finished-goods inventory,

with thoughtful, ambitious targets supported by strong governance, can contribute substantial savings. Likewise, improved logistics, such as through smarter fleet management, can allow companies to defer significant capital costs at no impact on customer service.

Pressure testing each supplier’s purchase order and minimising or eliminating purchases of nonessential supplies can yield immediate cash infusions.

Epilogue Leadership is the ability to influence and facilitate others towards common goals.

Very little leadership training or development prepares leaders to handle a crisis. It’s astounding to note that 85 per cent of most developed economies’ value comes from intangibles – which in practice mean people – and companies fail to prepare leaders for events which can mean their very survival or failure.

As the world becomes more interdependent with social, economic, and technology coming together in an ever more

complex system, orgnisations don’t prepare leaders to manage any potential disruption to these systems. So, it’s no surprise that the outcomes have been so inconsistent, with some leaders demonstrating an amazing ability to help their business pivot and adapt to the crisis while others have made poor decisions and, in some cases, ruined their longfought business reputation.

Leaders should be developed, so they have a playbook or a range of playbooks on how to lead in periods of disruption when people are concerned, have anxieties, and are fearful.

Finally, when coming out of the crisis, companies and governments should take a complete look at their supply-chain vulnerabilities and the shocks that could expose them much as the coronavirus has.

The detailed responses will help reveal major opportunities—for example, using scenario analyses to review the structural resilience of critical logistics nodes, routes, and transportation modes can reveal weakness even when individual components, such as important airports or rail hubs, may appear resilient.

Guillaume Halleux

Global trade cannot survive without air cargo

H

as the present outlook of the air cargo industry entirely changing as a result of this pandemic?

Before COVID-19, 60 per cent of the global air cargo capacity was in passenger aircraft bellies, so it is a mistake to look at the market just in terms of freighter capacity.

The number of global passenger flights has decreased by 90 per cent.

That has created a cargo crunch which has continued since the beginning of the crisis when we saw huge demand for PPE from China.

Today, we see a lot less demand for PPE than what was two months ago.

Meanwhile, the usual airfreight commodities are coming back into the market.

Passenger flights will probably take a lot of time to resume normal schedules. That will continue to impact the cargo market.

How long would you estimate it would take for air cargo industry to get back to business as usual? What will be the growth drivers?

It is hard to predict cargo demand in the current circumstances. However, I feel, the entire world cannot live without commodities being exchanged. Global trade cannot survive without air cargo, and if, for a single day airfreight market demand drops drastically, then I think the world will have a much bigger problem.

Going forward, I believe digitisation and transparency will be a massive disruptor in the industry.

Tell us about your current state of operations.

We have prepared and organised our cargo division accordingly in light of current circumstances. We are no lon12 |

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ger in a crisis mode but operating in the new normal.

We currently fly 180 cargo flights per day, a mix of freighters and cargo-only passenger aircrafts. Before COVID-19 it was 60.

Now, we have tripled the number of flights and for which we are fully accountable in maintaining the safety, loading and finances.

What are the areas air cargo professionals globally need to keep an eye on and put up a unified front?

There are a lot of important topics on which the industry should present a united front. Air cargo is particularly fragmented and that brings real difficulties in many ways.

Take digitalisation, for example. It is alleviating a historic lack of transparency in our supply chain, and that’s a very good thing. But certain stakeholders remain reluctant because this change means reinventing themselves and changing their model to bring new added value.

Digitalisation will bring about massive disruption to our sector, and as a leading airline, I think it’s our duty to promote and encourage this transformation. We hope that our role as an industry leader will allow us to unite the industry and move it towards greater digitalisation, because no airline can do it alone.

Qatar Airways Cargo is one of the world’s leading international air cargo carriers, serving more than 60 freighter destinations worldwide via its worldclass Doha hub and delivering freight to more than 160 key business and leisure destinations globally on more than 250 aircraft.

During this time of crisis, the cargo carrier has led the industry by maintaining a global network that never fell below 30 destinations.

In doing so, Guillaume Halleux, Chief OfficerCargo, Qatar Airways says the airline collected unrivalled experience in carrying passengers safely and reliably and became uniquely positioned to effectively rebuild its network.

Excerpts from his interview with Ritika Arora Bhola.

Another area around which we want to unite the industry and bring it together is corporate social responsibility and sustainability. There are a lot of initiatives within our industry on these topics, but nothing really unites them.

What we want with ‘We Qare’ is to put sustainability issues at the heart of our activities through concrete actions,

designed by and for the air cargo industry. They are built on the four fundamental pillars of sustainability (economy, environment, society and culture).

How do you look at India’s air freight market? What do you anticipate in the near to short-term?

India has performed remarkably well during the COVID-19 crisis. I admire the resilience of the Indian people, and that is because it is in the DNA of the country and its culture.

For Qatar Airways, India is definitely a very important market. I have high hopes for India’s air cargo industry for the coming 12 to 18 months, and that it will continue to be strong.

In the Indian market, cargo capacity is highly driven by passenger flights, and although those services may be gone for some time, airfreight demand continues to exist.

COVID-19 or not, people still need to eat so the Indian perishables sector will remain strong, as will the strong pharmaceutical industry which has been booming since pre-COVID era and will continue to do so.

Regarding the textiles sector, we see no slowdown in India. Some of our main textiles customers have relocated their functions to India.

All in all, I’m quite optimistic about India, a market which is in our backyard.

Please throw light on the categories of cargo that have been moved

by Qatar Cargo since COVID-19 hit the industry. How has the carrier adapted to the market vagaries?

We are currently moving 7,000 tonnes per day in our Doha cargo hub, and that is the level of a typical October and November period. This is only for us and so I cannot speak for the rest of the airlines, but for QR, it seems that the market is back to normal.

Global volumes will be lower than before, but by a smaller percentage than the drop in capacity. This is why we are still seeing a strong air cargo market.

Post-COVID, we have gained market share of 8 per cent, which means that Qatar Airways has actually grown in the last four to five months.

As a charity program, Qatar Cargo is offering to move one million kilos of humanitarian freight free of charge

between now and the end of the year. Kindly elaborate on this noble initiative.

The ‘1 Million Kilos’ operation is open to our freight forwarder customers. We have retained the same procedure as usual; we only work with the freight forwarders. This means, it’s up to them to select the charity or charities of their choice. We only ask the charity to confirm if its goods were shipped free of charge.

As for destinations, we are providing access to the entirety of our global network.

If we fly there, we can ship the goods.

In terms of goods, we ship all types of humanitarian aid (healthcare, education, food, etc.) with the only restriction being for special shipments (live animals and dangerous goods). But as long as it’s charitable, we will ship it. And it might seem obvious, but it’s important to highlight the fact that when a shipment is booked as part of ‘1 Million Ki-

Post-COVID, we have gained market share of 8 per cent, which means that Qatar Airways has actually grown in the last four to five months. los’, we will not cancel it for a commercial shipment.

This operation has already been very successful, despite only being launched in mid-July. When you do something good, something for the common good, people want to follow suit. That’s true for our freight forwarder customers and also for other stakeholders that aren’t partners of the operation but have contacted us, for example, to offer free handling for the goods that are being shipped. It becomes a virtuous cycle, and that is one of our goals with ‘1 Million Kilos’.

Does the industry still face consequences of non-compliance when shipping dangerous goods?

What are your suggestions towards ensuring hundred per cent safety and scrutiny of cargo products being transported?

Let’s look at a concrete example. Lithium batteries, today, have become a greater risk than explosives because the whole industry – airlines, forwarders, ground handlers and airports – have designed their safety protocols based on the risks posed by explosives. When we screen cargo and packages, we screen for explosives.

In a big chunk of the world, the risk of a lithium battery is higher than the risk of explosives. Lithium explodes and catches fire.

This is happening because the industry has not regulated the danger from lithium batteries. We are still stuck in the old mechanisms from the 1980s and the post-Lockerbie regulations.

The technology already exists, and you can screen using X-rays to check for the presence of lithium batteries and whether they are correctly declared, packed, labeled, and stored appropriately. As an airline we can’t do it alone. It has to be an industry move. It has to come as a coordinated approach to push for regulated screening of lithium batteries.

And as number one, I think our voice will be even louder to push the industry towards change. Safety is paramount.

Now that the lockdown measures are being lifted cautiously, how is Qatar Cargo planning to resume its freighter operations within its global network?

We made a conscious decision to continue flying freighters everywhere that we were before. Although, sometimes at a loss but we wanted to maintain continuity of service. At the moment, some slight delays in deliveries of our additional Boeing 777 freighters are the main challenge we are facing.

After speaking to Boeing, we are expecting three freighters to be delivered this year and two more by 2021. september 2020 | 13

Abdulla Al-Khallafi

Despite current challenges, Emirates SkyCargo’s freighters and cargo-only flights to Ahmedabad, Bengaluru, Chennai, Mumbai, and Thiruvananthapuram continue to ensure the flow of essential commodities from across the far corners of the world to and from India, while Emirates Pharma, the carrier’s dedicated air transport solution for temperature-sensitive shipments extensively connects the country’s suppliers to the rest of the world, supporting the economy at a critical time.

In an exclusive conversation, Abdulla Al-Khallafi, Cargo Manager- India & Nepal at Emirates SkyCargo informs Upamanyu Borah, how the airline has been progressively introducing new routes and services to the Indian market in response to COVID-19 to facilitate supplies of goods required for combatting the current pandemic, as well as empowering several key economic sectors across global trade lanes.

The unprecedented chain of events had us innovate critically

W

hat ways have you adjusted your India operations, in light of what has happened?

By the end of March, we were able to calibrate our global operations of scheduled cargo-only flights to over 30 destinations, including eight in India. Since then, we have operated scheduled freighter services to Ahmedabad, Chennai, Delhi, and Mumbai, in addition to several chartered flights to ensure an adequate flow of critical supplies such as pharmaceutical products, APIs, and perishables through India.

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In April, we were able to set an industry record of uplifting 66.5 tonnes of cargo, including raw materials for sanitisers and soaps, perishables, etc. on a Boeing 777-300ER flight from Mumbai, reflecting the quick and effective turn around in operations. We operated at least three record-breaking cargo-only flights using passenger aircraft out of Mumbai, Delhi and Bengaluru, all of which uplifted more than 65 tonnes. We also operated cargo in our cabins from Delhi which was one of the first flights to do so across our network.

Pharmaceuticals continue to be a focus area for us and we have facilitated the exports of critical pharmaceutical shipments from India to the rest of the world during the last few months. We continue to serve the Indian market with dedicated cargo-only flights to nine destinations, ferrying essential commodities and perishables, supporting local businesses and farming communities across the country.

What is the state of Emirates SkyCargo’s global operations after several months of the pandemic?

Starting from just over 35 destinations at the end of March, Emirates SkyCargo has expanded its network to over 100 sc heduled cargo dest i nat ions across the world, until July 2020. From transporting food and medicine to materials required for manufacturing and other industries, Emirates SkyCargo is helping cities to reconnect with global supply chains as economic activities recommence.

Since air cargo is the most effective means of transport for urgently required supplies, there was a surge in demand during the early phases of COVID-19 response to transport PPE and other medical supplies from production markets to places where they were most

needed. Catering to these demands, we rapidly rebuilt our cargo network using our fleet of Boeing 777 aircraft as a global conveyor belt seamlessly moving vital commodities across the world. Today, we operate over 1000 cargo flights planned every week.

In May and June, Emirates SkyCargo operated over 3,800 flights per month on average, with the aircraft covering approximately 37 million kilometers, the equivalent of roughly 50 trips to the moon and back.

The areas where technology has made an impact in the way Emirates SkyCargo operated during the pandemic?

Our continued investment in technology and cool chain solutions for the safe and secure transportation of temperaturesensitive pharmaceutical shipments proved vital during the pandemic.

Historically, pharma products were not flown through the Middle East because of summer temperatures. To overcome this, Emirates SkyCargo opened its 8,000 sq mt Dubai facility in 2016, one of the world’s largest multi-airport Good Distribution Practices (GDP) certified hubs in Dubai.

We carefully evaluated every aspect of the cool-chain and came up with technology-driven solutions to potential problems. An example is the purposebuilt ‘cool dolly’ which is critical to maintaining safe pharma temperatures between aircraft and the warehouse.

What is the update on your resumption of post-crisis activities?

As a customer-centric cargo carrier, Emirates SkyCargo has innovatively adapted its cargo operat ions a nd offerings over the last few months in line with rapidly evolving market demand.

In keeping with our core value as a global facilitator of trade and commerce, we have re-grown our network to over 100 destinations with robust flight frequencies to key production and consumer markets. In May and Ju ne, Em i rates Sk yCa rgo operated over 3,800 flights per month on average, with the aircraft covering approximately 37 million kilometers, the equivalent of roughly 50 trips to the moon and back.

We continue to offer our customers an unmatched reach and connectivity for their valuable cargo and our flight milestones are the validation of our customers’ trust in our service.

Recent figures and surveys reveal a modest upturn in the air freight market by the end of 2020. What is your anticipation? How is Emirates positioning itself to live up to market expectations?

Given the volatile market conditions that continue to evolve rapidly, it is hard to predict future trends at the moment.

Although passenger operations are gradually resuming across Emirates’ network, cargo operations are being carried out on our fleet of full freighters and passenger freighter aircrafts.

We will continue building on capabilities, our ‘fit for purpose’ infrastructure both at the hub and at stations across our network, as well as innovative products and equipment will help us consolidate and build on our global leadership position. september 2020 | 15

Mohamed Hassan There is no perfect script for responding to the challenges of COVID-19, but together, the industry is getting the supplies to where they are needed.

Setting a distinctive example, flydubai Cargo has been maximising its capacity by transporting goods in the cargo hold on repatriation flights as well. The carrier has so far operated 1,300 cargo flights since March 2020, carrying 7,458,117 kgs of cargo to 41 destinations including to the major points in India. Mohamed Hassan, Vice President for Cargo Operations at flydubai informs Upamanyu Borah, how they have been working closely with their strategic partners, thriving to keep the entire industry structure healthy and enabling the carrier to transport cargo seamlessly to where it is needed the most.

The industry should continue to collaborate to ensure preparedness

W

hat are the short to medium-term prospects for flydubai considering the current market volatility due to the crisis?

There is no doubt that the impact of the pandemic on the worldwide air cargo industry is significant, but the agility we have in our business model has enabled us to cope well with the current challenges.

Following the temporarily suspension of passenger operations as part of the precautionary measures announced by the National Emergency Crisis and Disasters Management Authority (NCEMA) and the General Civil Aviation Authority (GCAA) in the UAE, flydubai has allocated six next-generation Boeing 737800 aircraft to operate as all-cargo flights to enable the movement of essential goods across its network and beyond.

The number of aircrafts used for our all-cargo operations were later increased to eight so as to cater to the increasing demand for moving essential goods during the pandemic. We continue to look for opportunities to further support the supply 16 |

september 2020

chain industry in the long run as we see restrictions being lifted around the region.

What are the current challenges involved in trade lane management?

How difficult it has been to balance the trade flow and ensure full capacity on south-west routes?

Global travel restrictions put in place due to COVID-19 was not the only challenge airlines had to face. There are various other restrictions which had impacted the flow of air cargo movement including the existing structure of bilateral and multilateral agreements, slot availability at certain airports, and limited capacity in the belly hold of passenger aircrafts. flydubai was able to overcome these challenges by working closely with our stakeholders to support government requests to provide relief flights. In addition to utilising the cargo hold capacity in our passenger aircraft, we worked with the relevant authorities to increase our cargo capabilities by allowing cargo in the cabin to a number of destinations. This was done in line with the guidelines and recommendations issued by the Interna-

tional Air Transport Association (IATA), International Civil Aviation Organisation (ICAO), Boeing, and with the approval of UAE’s aviation regulator, GCAA.

How can shippers and carriers overcome global cross-border e-commerce impediments?

Airlines need to focus on implementing fuel-efficient solutions and accommodate innovative technologies to provide cost-effective services. For logistics providers to succeed, the storage facilities need to be developed to assist the global increase in air cargo.

We are grateful to governments all over the world for taking firm actions to fight the COVID-19 outbreak.

Safety remains the priority of all our operations. The measures that are put in place ensure safety standards are met at all touch points.

What is the update on your penetration in the South Asian region, especially India?

We have always been proud of our strong ties with India. We started our

operations in India in 2010, and this year we celebrate a decade of our thriving partnership. We have seen a stronger flow of trade and tourism between the two countries over the past few years.

India became the first source market to top two million annual visitors to Dubai.

Up until March this year, we operated 30 weekly flights from eight points in India- Ahmedabad, Chennai, Cochin, Delhi, Hyderabad, Lucknow, Mumbai and Kozhikode, and we have also seen good demand for our cargo services.

The benefit of Dubai’s aviation hub is that it improves connectivity, and with our operations from India, we have given access to 71 new trade links, providing seamless logistics services.

With the support from all stakeholders, we were able to set a new record of uplifting 20,990 kgs of cargo on our B737-800 flight from Kozhikode to Dubai. This would not have been possible without the support of our shippers, agents, handlers and the airport authorities in India.

We look forward to resuming our operations to the market as soon as the restrictions are lifted and will seek for more opportunities to strengthen the airlinks between the two countries in the future.

We have become one of the top five airlines in the world who has achieved 100% electronic e-AWB for online cargo bookings and real-time tracking of shipment movements.

With flydubai extending its international cargo operations more than ever, how well are you positioned in terms of fleet and overall infrastructure? flydubai operates a single fleet-type of more than 50 Boeing 737 aircraft. We placed one of the largest single-aisle aircraft orders in the region at the 2013 and 2017 editions of the Dubai Airshow.

Last October, we rolled out our Split Scimitar Winglets programme for our next-generation aircraft to increase our cost and operational efficiency.

With the global pandemic of COVID-19, we have been able to provide fur-

ther reach beyond flydubai’s network such as the cities of Coimbatore and Kolkata in India and Accra, Conakry and Niamey in Africa.

We continue to invest in growing and enhancing our cargo products, systems and handling facilities in our home base in Dubai and widen our network of air cargo and land transportation by our partners globally.

How do you prepare for a resumption of post-crisis activities despite a context of uncertainty?

Since the flight restrictions came into effect in March, flydubai’s experienced team from across the airline have been making preparations for the airline’s commercial return to service. Our teams of highly qualified and experienced engineers are working round the clock to perform the scheduled aircraft maintenance tasks to ensure all our aircrafts are maintained to the highest levels of airworthiness in preparation for return to service.

With Dubai International reopening for international traffic since July 07 and more airports around the region gradually lifting restrictions, we have relaunched our commercial passenger and cargo operations to more than 41 destinations and expect to operate to more than 60 destinations over the summer.

What lessons stakeholders should learn and exchange with each other looking at such a global pandemic disaster?

We are fortunate to be able to operate in an international hub for logistics, trade and travel such as Dubai. Navigating through a crisis like this has been less challenging because we have the right infrastructure in place.

We have already invested in leading technology and automated systems and have come together as stakeholders in the aviation industry to make sure best practices are being followed, in line with international standards.

The global air cargo industry should continue to collaborate to ensure preparedness and clear guidelines are already in place for future challenges.

IATA has also been designing effective protocols to help airlines and freighters operate in a safer environment.

Which airport developments in the region have been the most

influential, and how have they contributed to growth?

The Dubai aviation hub continues to set a good example when it comes to handling both passenger and cargo traffic, not only in the region but globally. flydubai is the second largest airline operating out of Dubai International and we have been committed to opening up underserved markets that previously had no or few airlinks to the UAE. Besides, we have helped strengthen existing ties as well, making Dubai accessible to more people and more businesses around our network and further afield due to the partnership we have with Emirates.

To what extent has digitisation made an impact in flydubai’s operations? How are you providing a critical operational insights and performance data in real-time?

One of the major benefits of digitisation was the implementation of the e-AWB system. We have become one of the top five airlines in the world who has achieved 100% electronic e-AWB for online cargo bookings and real-time tracking of shipment movements. Our current cargo system provides us with real time reports and KPIs. This has helped increase our operational efficiency and on-time performance.

We have also invested in other big data platform and reporting tools which allow us to collect data from other areas of the business quickly and provide detailed analysis for optimal decision making. september 2020 | 17

William Boulter

H

ow we may best summarise the current state of the global air cargo industry.

How is the industry reacting and responding to it?

Cargo demand has been buoyant on many routes, owing to the lack of the normal passenger aircraft belly space, and has supported our cargo-in-cabin charters, where with some minor equipment and procedural changes we have been able to carry significant payloads on our A320/321 passenger aircraft.

In general, global air cargo demand is down by roughly 50 per cent year-onyear due to the various economic factors, etc. and India broadly follows the same trend. However, the passenger aircraft international flights have further fallen by upwards of 90 per cent, driving a dramatic collapse in the amount of belly space available for cargo. Hence, this has stimulated many airlines to convert their pax aircraft to fly cargoin the main cabin as well as in the belly too. IndiGo did this in early April and now has around ten aircraft which have the necessary equipment to carry ‘cargo-in-cabin’.

What initial challenges you faced due to lockdown and other consequent measures?

This is a very difficult time for the world economy in general and for the travel sector in particular. The aviation sector has been through many ups and downs in its history, but we can all agree that this crisis is unprecedented in its impact.

The last few months have been very difficult for the aviation industry generally, as operations were grounded from March 25 to May 24, except for charter and cargo flights. As the Government allowed partial resumption of flights starting May 25, 2020, we resumed operations with much fewer flights than our pre-COVID capacity. For Q1 FY2021, we ended the quarter at about one fourth of our original capacity and we hope to slowly build this up in a phased manner in the coming months. Due to these on-going COVID-19 related dis18 |

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In the wake of the coronavirus crisis, the country’s largest airline had struggled hard to perform better by taking various measures like cost optimisation, efficient fleet management, maintaining liquidity, ensuring levelled cargo capacity and experimenting with new network and revenue models. William Boulter, Chief Commercial Officer, IndiGo CarGo in an exclusive interaction with Ritika Arora Bhola, emphasises on the challenges faced by the airline and strategies adopted to sail through this difficult situation. He also elaborates on the company’s plans to reach out to more international destinations, to drive more cargo traffic and leverage capacity building options.

We remain very bullish on the future of Indian aviation ruptions, we reported a net loss of 28 billion rupees during the first quarter.

Can you give us an overview of your flight operations in the wake of the crisis?

Our cargo line of business was performing extremely well in any case, but then went to a new level with the carriage of essential supplies and medicines in the early weeks of the lockdown.

We learned valuable lessons about the demand and scope for cargo which will definitely serve us well for augmenting our cargo operations in the months ahead. With currently 10 aircraft completely devoted to cargo, we plan to continue with ‘cargo in cabin’ operations even once we resume our full schedule.

We are operating international and

domestic charters, and repatriation flights to transfer stranded citizens, which also contribute to our cargo result.

We have flown over 1000 cargo charter flights from June-August 15, 2020.

Since the lockdown was imposed, passenger aircraft were being used as freighters. How difficult or easy was it to load/unload cargo in passenger aircraft? Tell us about the techniques implemented for successful operations.

This is a new product, and as all products have a certain developmental cycle, we had it too. Initially, there were challenges with the volume of cargo we could carry on these flights, but we reworked our strategy and were able to turn this into our advantage.

Within the end of the first month of cargo charter operations, our team had broken the record of the highest tonnage carried on a Airbus A320 passenger aircraft. Thereon, we never looked back; we kept breaking our own record every time. The current highest volume carried on our cargo charter A320 is 20,212 kgs.

Can you describe your carrier’s own business contingency plans? Do you have a crisis tool kit? Crisis processes, resources are in place and understood?

We at IndiGo CarGo were working with only belly capacity during pre-COVID times, however with the pandemic situation, this has changed rapidly. We had to adapt quickly to the emerging demands. The team worked tirelessly together to build a cargo charter product from ground up.

We have had our own share of challenges as this was a new product, but the team met these challenges with a proactive approach helping iron out any contingencies. The process laid out for the cargo charters are robust and have been built with room to continuously evolve and improve as per the market requirements. We have a very well trained and committed operations team who are now experts in handling these cargo charters.

Kindly share the efficient strategies the airline has adopted to sail through this difficult hour.

Apart from having successfully operated our cargo line of business throughout the pandemic, we have been continuously taking measures towards reducing our unit costs even further, making our fleet more efficient, ensuring our capacity is right sized to the market, and experimenting with new network and revenue models. Below are some initiatives taken by us at IndiGo:  Cost optimisation  Negotiating better prices and terms with our partners.  Not giving out any dividends this year and placing discretionary expenses on hold.  Continuing to substitute NEO for the older CEO aircraft to increase cost efficiency, and prioritising flying our NEOs over the older CEOs.  We had to undertake measures such as salary cuts and leave without pay; but unfortunately, these cost savings are clearly not enough to offset the decline

in revenues. After carefully assessing and reviewing all possible scenarios, we had to bid a painful adieu to around 10 per cent of our workforce, in order to sustain our business operations. We created a ‘6E Care package’, which includes notice pay, severance pay, medical insurance, travel allowance to tide over the uncertainties emanating from this decision.  Maintaining liquidity Measures like returning of older CEOs and taking deliveries of NEO aircraft, freezing of supplementary rentals and conversation with various suppliers to provide more favourable credit terms, will help in maintaining liquidity. We are looking to raise finance against the various unencumbered assets of IndiGo. We expect these measures to help us generate additional liquidity of `30-40 bn. Additionally, the board of directors have approved raising up to `4,000 crore through a qualified institutional placement.

We kept breaking our own record every time.

The current highest volume carried on our cargo charter A320 is 20,212 kgs.

Kindly elaborate on your plans to reach out to more international destinations, cargo traffic and capacity building operations.

While we are the airline of choice for cargo to the Asian and Middle East destinations, our distinguished services have made our customers wanting us to partner with them for newer destinations like Tashkent, Almaty, Bishkek, Moscow and Cairo. These are new sectors which we have won because of the goodwill we generated by successfully building a reliable cargo charter product.

Our next focus is to continue supporting our farmers and manufactures in tier II and III cities to connect and sell their produce to international destinations, by giving them thorough connections and tailor-made solutions.

How do you look at India as a trade and investment destination? Do you think India has a potential to become a manufacturing hub?

The crisis that we have been living under has not only given us the difficult timings that we all are coping with, but it has also unleashed the potential that was hidden somewhere, and we believe that India as a country has the ability to emerge as one of the most efficient manufacturing hubs today.

India, undoubtedly, shares values and interests that align closely with those of Western countries and their business interests. Moreover, the country has a massive and intelligent entrepreneurial talent, a hefty marketplace and flourishing private enterprise and numerous start-ups. Additionally, the supply shortage and uncertainly in the long term due to the pandemic has led various global companies to shift their units outside China. It is good news that a lot of global companies are considering India as a potential manufacturing hub and may find a permanent home here.

Can you already draw conclusions for 2020?

The year 2020 has certainly been a difficult one which has given many challenges to almost every industry. For airlines, the difficulties have been especially stronger as it is one of the most fragmented industries in the world, with far too many players scrambling to outdo each other for growth and market share, and this pandemic situation has put us all in a situation where there is a race for the survival of the fittest.

However, we remain very bullish on the future of Indian aviation. All the underlying elements of rapid growth continue, and I think we have barely scratched the surface in terms of what is possible for the future. Undoubtedly, there are certain structural problems, but we are making steady progress. Perhaps, being the most difficult time for all of us, this year has also allowed us to explore the uncharted and emerge stronger with more result driven strategies in place.

What are the areas air cargo professionals globally need to keep an eye on and put up a unified front?

In an unpredictable environment, we must focus on the changing market dynamics and how we can support our end customers, by continuously building tailor-made solutions which help make their lives easier and augmenting their efforts to build a successful business. september 2020 | 19

Devashish Agrawal Empire Group is a leading player in Indore’s commercial real-estate industry. Over the years, the group has owned great name and fame for being the trusted service provider, with effervesce and accuracy in project offerings that has magnetised resulting in mammoth profits.

Today, Indore is becoming the business hub for multinationals and SMEs in central India and the city is in dire need of moderised warehouses and logistics parks with state-of-theart facilities. Devashish Agrawal, Director, Empire Logipark (R C Warehousing Pvt Ltd) - Empire Group’s latest addition to its breathtaking range of projects, believes they will continue to leverage the group’s good market position to tap emerging opportunities and strengthen offerings by providing even better services and upgrades.

Excerpts from his interview with Upamanyu Borah.

We will continue to play a major role in the growing warehousing market in Indore

C

ould you start by introducing the scope and breadth of your operations to our readers who might be hearing about Empire Group for the first time?

Empire Group is one of the esteemed real-estate developers in Indore. Established in 1989, we have set the bench20 |

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mark through our hassle free and reliable solutions within a short span of time. The fascinating range of our projects includes Empire Residency, Empire Estates, Empire Heritage, and Empire Victoria Park. We have a 360 deg ree approac h to ever y project which starts from land identification

and acquisition, project planning, marketing and sales, project execution, property services and ends with estate management.

Our product portfolio and services render the hearts of our clients because of their elegance and luxurious designs.

We carry out detailed analysis, evalua-

tion and verifications on the projects with the help of our best-in-class engineers that guarantee long-term durability. We carry out legal practices in selling the properties and estates that are constructed with the help of trustworthy contractors. These contractors have decades of experience in constructing commercial real-estate properties.

Having developed several residential and commercial projects covering more than 275 acres, we ventured into warehouse logistics with Empire Logipark, spread across 70 acres of land with state-of-the-art facilities and strategically located on Agra-Mumbai National Highway 3 between the cities of Dewas and Indore in Madhya Pradesh.

Establishing Empire Logipark was planned in 2011 and it came into shape in 2014.

How important at present is Indore’s commercial real estate, particularly the warehousing sector?

Since 2018, the warehousing market in Indore has seen an exponential growth.

In fact, in the last two years, the nearby areas in the vicinity of Empire Logipark has seen about 1.5 million sq ft of warehouses being leased to national and multi-national companies.

At present, with the pandemic subsiding, we are seeing a sudden surge in warehousing demand as e-commerce business is at all-time high with people buying goods and services online increasing more than ever before.

How does the Madhya Pradesh market perceive Empire Logipark as a major logistics services provider?

As far as Madhya Pradesh is concerned, Indore is known to be its business capital.

Supported by industrial hubs Pithampur and Dewas, Indore is always the first choice for warehousing demands. Also, the geographical location of Indore offers a lot of advantages. Being in the centre of the country, most of the important roads cross through or around Indore which makes it easier for logistics companies to deliver to and from the city.

For instance, Avenue Supermarts, commonly known as DMart- an Indian chain of hypermarkets owns around 125,000 sq ft of warehousing space at Empire Logipark. It serves as the distribution centre for entire Madhya Pradesh and Chhattisgarh as well as parts of Gujarat and Maharashtra.

Empire Logipark is spread across 70 acres of land with state-ofthe-art facilities and strategically located on Agra-Mumbai National Highway 3 between the cities of Dewas and Indore in Madhya Pradesh.

What makes your offerings better than the others in the competition?

How do you compare in terms of time, security and efficiency of logistics operations within your facilities?

Empire Logipark is planned as per international logistics requirements. 18 meter wide roads enabling easy circulation of

vehicles help in faster delivery of goods.

Facilities are planned as per international norms with 12 meter clear height Grade A warehouses which is difficult to find with others in the competition.

Empire Logipark is situated right on NH3 and connects Indore-Dewas-Bhopal to Mumbai. This saves time on goods delivery along while smooth internal roadways network makes local distribution faster and hassle free. At Empire Logipark, we have vehicle weighbridge which helps to maintain the exact figures of the goods coming inward and going outward in the trucks, and CCTV surveillance, 24x7 security, high-frequency lighting to ensure enhanced security.

How was your performance in terms of business growth- sales and revenue in the last fiscal year?

From the last two years, India’s warehousing industry is on a boom. The high growth in demand followed by the ability to supply has helped us to lease and sell out more than what we expected, registering a positive sales growth rate.

How is Empire Logipark remaining conscious to ensure clients remain unaffected by the pandemic-led health hazard?

Fortunately, warehousing industry is doing better and on a good growth path, and was least affected during the lockdowns. We are trying to meet the huge demand that have erupted.

Due to the risk of direct health effects from COVID-19 infection on workers performing duties in an essential service, we are maintaining sanitisation, cleanliness, screening of truck drivers,

september 2020 | 21

visitors and every single person entering and exiting our facilities on a regular basis for greater safety in the premises.

How are you leveraging new trends and technologies to improve the efficiency and safety of your operations?

Warehousing is an ever-growing and constantly innovating industry. We keep on learning and adapting to the dynamics regularly.

At Empire Logipark, we have introduced laser screed FM2 flooring, modern day fire fighting measures, dock levellers, rain water recharging and efficient waste disposal and other efficient measures.

At any logistics park, most important is having a truck parking facility and enough room for multiple vehicle movement. At Empire Logipark, we provide common parking facility more than 200 trucks at any given time at our park.

In general, what are your views on the regional warehousing market as a favorable real-estate asset class?

What are your predictions for the near-term?

Indore has always been a warehousing hub. But, many of the older godowns and transport areas which if measured comes to arou nd 1000 acres have now transformed into residential areas.

Now the time has come to look for stor22 |

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In the next 3-5 years, we would like to host all major e-commerce, 3PL players at Empire Logipark and achieve at least 2 million sq ft of leasing. age and distribution facilities in the outskirts of the city. This is where Empire Logipark plays an important role as a service provider to meet warehousing needs combined with modern day offerings. The services provided by us are unmatchable and we mesmerise the huge clientele with our ecstatic facility.

In my view, the next five years are very bright for the warehousing market in Indore, and we will continue to play a major role.

What would you highlight as other key trends and market dynamics that are shaping India as a logistics hub?

Mass exposure to internet, online shopping, and ease of buying things online has created a drastic shift subsequently boosting e-commerce sales. To meet the demands, retailers and e-tailers both need more warehouses and fulfilment centers closer to consumption centers.

Increase in foreign investments in from biggies such as Amazon, Walmart,

IKEA, etc. is playing a big role in shaping India’s future as a logistics hub.

What has been the greatest business challenge you have faced in the wake of the crisis and how did you overcome it?

In the wake of the crisis, what we have realised is that customers have sufficient capital but they are reluctant to invest.

We noticed they are skeptical about making huge investments during these volatile times. It has become critical and also difficult to convince them, this ultimately limits us from offering the valueadded services and fruitful investment returns that would have proved beneficial to them.

What would be your strategic priorities moving forward from here? What are the key milestones you would like to achieve in the next 3 to 5 years?

We aim at educating the MNCs that Indore is a self-sufficient city with great potential. Although it is a tier II city, it is located strategically to serve better as a logistics hub when compared to many other tier I cities. We have lower rentals, cheaper construction/land costs, and offer better ease of doing business with no or minimum union issues as compared to cities like Mumbai and elsewhere in India.

In the next 3-5 years, we would like to host all major e-commerce, 3PL players at Empire Logipark and achieve at least 2 million sq ft of leasing.

together Let’s MOVE on

PINKCITY LOGISTICS LIMITED REGISTERED OFFICE: V5 04, Ansal Garg Enclave, 122/235, Sarojini Nagar, Kanpur-208 012 Tel: +91-512-2224641/2217001/2216976 Fax: +91-512-2234911

CORPORATE OFFICE: 201-224 Chawla Complex, Sector-15, CBD Belapur, Navi Mumbai-400 614 Tel: +91-22-27562739/49, 61400500 Fax: +91-022-27565396 Email: info@pinkcitysilica.com

AGRA BHOPAL  DELHI  GANDHIDHAM  HAZIRA  INDORE  KANPUR 

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     

KOLKATA LUDHIANA MUMBAI MUNDRA NAGPUR RENUKOOT VIZAG

bakir gandhi The warehousing and industrial infrastructure landscape is changing. Scarcity, cost, and complexity, are not the only influential factors. The liquidity crisis due to pandemic has further worsened the situation and a new wave of consolidation has kicked off. Demand will come largely from end-users and not from investors. To that extent, the size, configuration and location will undergo some changes and the real-estate developers will need to implement these now. In this new lifecycle of smart buildings, the balance of profit is shifting forward, and savvy commercial developers like Crystal Indus and Logistic Park are realising that they are in the perfect position to take advantage. Bakir Gandhi, Chairman and Managing Director, Crystal Group informs Upamanyu Borah, more on the sector’s prospects in the medium-to-long term.

Real-estate developers will now look into diversification and newer opportunities

C

ould you start by giving our international readers a sense of your portfolio of products and services?

Crystal Group is into the realty business; we build industrial and logistics parks, commercial establishments, residential township, shopping malls, and provide facilities management services under the category of building operation and maintenance as our core business.

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We offer our customers built-to-suit development services with modern day infrastructure requirements that are unique and draw upon the breadth and depth of our experience in real-estate.

We manage the full built-to-suit life cycle: site selection, land acquisition, facility specifications, permitting, construction, and ownership.

Crystal Group’s overall strength lies in its strategic land banks and know-how for development in any sector, which is key for foreign direct investments.

Kindly elaborate on the business operations of Crystal Indus & Logistics Park. What makes you lead the market?

Building on the experience and expertise of 30 years, Crystal Group entered the logistics market in 2015. We launched Crystal Indus & Logistics Park that serves as a gateway to western India logistics hub. We have been developing Grade A facilities providing an ideal space for major industries like apparel, 3PL, consumer durables and auto spares to expand their footprint in Gujarat and Maharashtra. At the same time, being surrounded by a cluster of large to medium scale industrial undertakings, Crystal Indus & Logistics Park is most suitable for the establishment of small scale and ancillary units.

We have joined hands with India’s premier developer of Industrial & Warehousing Parks, Indospace to offer international-level logistics and warehousing infrastructure to major businesses operating in Ahmedabad (Bavla). We have already developed over 1.5 million sq feet space out of the total 3.37 million sq ft, which is operational under Amazon India and Aravind Limited. We are also developing parks in Jalisna of Ahmedabad, Bhiwandi of Maharashtra, as well as in Bengaluru

where we are already through with land acquisition.

We at Crystal Group believe that development should not be preceded at the cost of environment. Hence, we have made provisions for rooftop solar installations as well as stormwater harvesting practices in our parks through bore-well recharge. Specific attention is given to the benefits of urban green spaces.

Apart from the two ongoing projects in Jalisna and Bavla of Ahmedabad and Bhiwandi in Maharashtra, we are launching two new projects in Bengaluru. We are planning for pan-India operations, and looking to establish best-in-class facilities starting with Delhi NCR, followed by Pune.

How has logistics, warehousing and supply chain operations changed as a result of coronavirus?

In the first three four months after the outbreak, we felt a huge impact, the entire business horizon was affected. As the retail industry went on a subsequent shutdown, supply chains were disrupted.

But now, with the lockdown being lifted, the demand seems to bounce back, especially for merchandise and FMCG. The demand for electronics and spare parts equipment is also rising, so we can say trade markets are back on track, which will eventually reboot the global economy.

How have you supported the ecosystem during the crisis?

Yes, we took care of the rental part; we even took initiatives for the well-being of the labours working for us. For the first three months, we extended support to our customers and employees in all possible ways we can.

This pandemic has caused dislocations of an unprecedented nature and scale. The role of any organisation is about handling challenges and navigating through uncertain times. So, this is not something new or unexpected. It is in times like these that you go back to basics and reaffirm your business philosophy – always do what is right for the ecosystem and society.

In which parts of the country do you look to establish yourselves in the short-term?

Apart from the two ongoing projects in Jalisna and Bavla of Ahmedabad and Bhiwandi in Maharshtra, we are launching two new projects in Bengaluru. Going forward, we are planning for panIndia operations, and looking to establish best-in-class facilities starting with Delhi NCR, followed by Pune.

We are quite optimistic about the near future, we are already in talks with top e-commerce players who planning to diversify their production capacity across India in the next two to three years.

How can the logistics ecosystem players gear up in supporting India’s dream of becoming a manufacturing hub?

India is almost there and will soon become the third-largest consumer market.

As such, there will always be demand for manufacturing goods. It has always been a strategic and beneficial move for companies to set up their manufacturing units in India.

Even during the pandemic, we saw sectors like pharma and e-commerce september 2020 | 25

expanding rapidly and getting a major share of the market. In addition, considering the fact that India is gearing up for manufacturing of electric vehicles and auto parts, the scope for demand of warehouses even gets broader.

Meanwhile, businesses in India have started building up local supply chain capacity in order to de-risk from China and lower manufacturing costs. This development will definitely be of interest to foreign companies who are looking to exit China or expand their manufacturing operations. Giant players in the electronics segment such as Samsung and Apple have already shown interest in shifting a key part of their production line for smartphones to India.

As more global companies are now actively looking to diversify their manufacturing and production dependencies to be better prepared for any future emergencies, the center and state governments are taking robust initiatives and have declared various policies to boost domestic manufacturing and attract large investments in India. I feel it’s the right time for the logistics sector to tap into the opportunities and grow alongside while contributing to the sustained, long-term value enhancement.

The real-estate industry was in over the supply state before the lockdown. How are things now?

Indian real-estate sector has witnessed high growth in the recent times with rise in demand for residential spaces. At present, this is growing primarily because of the new norm of work from home which calls for bigger or extra space. They are feeling the need for bigger houses and their preferences are shifting to larger apartment sizes, they are shifting from 2 BHKs to 3 BHKs. As we eventually get past this stage, people’s focus is mainly to get back to work and ensure stability. They are re26 |

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evaluating their location choices and pushing up demand in peripheral locations. Many have moved out of the metros and this has led to the sale of residential spaces in the outskirts of these cities.

For commercial warehouse/industrial space, the market has not been good recently. However, with the market eventually getting back on track and with ecommerce expected to keep growing, so too will the demand for warehouse space.

Do you anticipate a re-consideration model by the real-estate developers?

Definitely. Real-estate developers will now look into diversification and newer opportunities. The COVID-19 crisis has served as a stark reminder for reinvestment strategies. Understandably, investors are concerned about their positions, and are rightfully re-examining their asset allocation model.

To be more precise, the demands, requirements and specifications for residential and commercial establishment will depend on a case-to-case basis. The transition provisions will mostly be based on build-to-suit lease arrangements.

It’s the right time for the logistics sector to tap into the opportunities and grow alongside while contributing to the sustained, long-term value enhancement.

India’s dream of becoming a logistics hub needs tremendous support from real-estate developers. How is Crystal Group geared down towards supporting this?

We are hopeful that once COVID-19 is in control, a lot of things will fructify into actual relocation. And India will emerge as an alternate manufacturing destina-

tion. Many countries like Japan, US, and South Korea are overdependent on China and that is now very apparent.

Big companies are taking advantage of the growing e-commerce demand.

Even small suppliers are leveraging the many benefits of online sales. So, the demand for small warehouses and distribution centers are also growing.

Rising affluence is the biggest driver of this growth, followed by the change in consumer behaviour and spending patterns, especially in lower-tier cities.

The recent policies and fiscal plans have focussed heavily on infrastructure growth, the backbone of the country.

This has opened the doors for increasing FDI investments in India’s manufacturing sector. Earlier, it was mostly seven players, now it is almost around 20-25 players who have entered the market and investing in areas like warehousing, logistics, transportation, etc.

In the next few years, an increasing number of Grade A warehousing and logistics facilities will come up across India, customised to the idea of built-to suit. And looking at our growth and financial aspects, we do not see any shortfall to live up to the demands and expectations. We present strategic bases for logistics/SCM companies, distributors and manufacturers to manage their pan-India business activities. We have strategically acquired land in Delhi NCR, Mumbai, Bengaluru, Pune, Chennai, Ahmedabad because we anticipate that a lot of pharma, chemicals, electronics and auto ancillary companies would look to establishing themselves in these regions.

We are in negotiations with a couple of FIIs and we already have IndoSpace on board. We are planning for strategical developments under different models like joint ventures and joint developments, and in some cases, through sale of capital expenditure.

gaurav varma

I

n what ways the logistics sector can improve by leveraging the emerging patterns?

The Indian logistics industry is in the middle of a technological evolution.

The sector has been witnessing a multitude of changes ever since it woke up to the reality of e-commerce a decade back.

However, the industry needs significant consolidation over the next 4-5 years with an increase in supply of logistics capacity. Right now, the market is competitive from the rate perspective, but the same cannot be said from the service side of things. The situation could change in the future, as with more capacity, the quality of services would be expected to gain centre stage, leading to a more efficient logistics ecosystem.

The sector would need an integrated and coordinated approach in which development of – railways, waterways and roads- is matched to the needs and the existing assets are better utilised. In particular, India needs to increase its use of railways and realise the potential of its waterways.

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 built-tosuit solutions for industrial and logistics parks in India.

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, agrotourism and realty are also tailored so as to meet client’s specific requirements.

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Warehousing is a horizontal development and not a vertical one like other commercial spaces. The right shape of land is important, so is the right zone with access to road and rail networks. Similarly, the only way to survive and thrive in this omnichannel, contactless era lies in looking into non-traditional fulfilment methods that can provide flexible and cost-effective solutions to the issue at hand. In an exclusive interview, Gaurav Varma, Managing Director, Aveny Industrial & Warehousing apprises Upamanyu Borah, about mini warehousing complexes or micro-fulfilment centers for on-demand fulfilment that are expected to come up across India, and how they are looking at smaller cities more favourably to reap the benefits of better contracts with their trading partners.

Focus on regional fulfilment is crucial in the face of COVID-19 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 warehousing space, Aveny is developing industrial, logistics and warehousing Parks in Gujarat and Maharashtra. Presently, with around 1.5 mn sq ft space already leased to MNC clients, Aveny is working towards its vision to develop 7.5 mn sq ft industrial and warehousing spaces by 2022, at prominent locations across India.

What makes your services different?

Are there value-added benefits compared with offerings from other competitors?

At Aveny, we believe in commitment, innovation and quality. While designing the master layout, we consider each and every aspect which helps clients to optimise efficiency. We develop fully com-

pliant Grade A warehousing parks at strategic locations with easy accessibility of transportation, labour availability, and round-the-clock security. We also offer state-of-the-art common facilities centers, best planned utilities, and landscaping inside our parks. Our facility team is always available to further support our services and respond to queries straight away.

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 us

to assist clients in handling both short and long-term assignments.

From a practical perspective, how will a warehouse or logistics center emerge in terms of meeting the common challenges?

In the post-COVID-19 era, we are already starting to see what we anticipated; the mix of warehouse and logistics centers evolving. Earlier, the consideration was GST that started the process of consolidation of warehouses, resulting in consequent savings on cost. Now, the factor of last-mile delivery has come in. The network has to change to meet the new requirements arising due to the crisis.

Pop-up distribution centers, or micro-fulfilment centers, are emerging as one option that can remove significant friction from the fulfilment process and ensure consumers are getting the goods they need in a timely fashion. Traditional distribution centers and fulfilment strategies often are aligned with costly rollouts and long-term commitments, while pop-ups offer many retailers the flexibility to quickly and costeffectively set up a distribution center operation in a location experiencing increased demands. This focus on regional fulfilment is crucial in the face of COVID-19 to shorten the supply chain and make sure products are as close to end consumers as possible.

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, solar energy saving, rain water harvesting, appropriate waste disposal, etc.

What trends you see will shape the growth of the warehousing sector post-pandemic?

The modern warehousing industry is seeing multiple new trends emerging.

The penetration of technology in operations, new and innovative business models and strategies, increasing supply chain efficiencies, increased warehousing demands, varied funding avenues; favourable government policies and geographical expansion in tier II and III

cities are together playing an instrumental role in preparing the sector for the next phase of development.

The development of strategic infrastructure in line with mega new and upcoming projects such as the Delhi-Mumbai Expressway and the North–South– East–West Corridor, as well as modernisation initiatives such as Dedicated Freight Corridors along with upgradation of ports and terminals on both the east and west coasts of the country, will result in increased growth of the warehousing sector.

Apart from that, the infrastructure projects will also create the need for setting up multimodal logistics parks.

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

How should companies prepare to adapt to the new normal while keeping a check on their well-being while businesses realign their marketing strategies to unlock rapid recovery?

Businesses will not go back to the way we knew before the pandemic, but will reinvent themselves to be more resilient, adapting their operational models to the ‘new normal’.

The short-term impact for occupiers is proving to be significant as their business-as-usual activities are affected with changes occurring on a daily basis. The immediate shock and realisation of the outbreak is now over and the majority of occupiers are in response mode after a short phase of preparation and immediate actions. Occupiers are preparing for re-entry of their facilities and send-

ing their workforces back to work.

This phase is complex to navigate, requiring some restructuring and courage from business leaders and their workforces. Occupiers must determine the level of modification required to return to business: prepare, redesign and fit-out workplaces ready enough to invite employees back to the office, combined with remote working capabilities and a robust triage approach.

Where do you see the role of the government in fast-tracking the development in the sector?

The government has reiterated its firm commitment to modernising the functionalities of Indian logistics with a key focus on infrastructure development.

With a view to improving supply chain efficiencies and enhancing connectivity to support logistics players tap the under-leveraged markets in the country’s hinterlands, key infrastructure development projects have been rolled out. Upgrading India’s infrastructure will not only boost the economy but will also provide a boost to the logistics sector.

The last few years have seen a strong build-up, thanks to efficient policy rollout such as Make in India, GST, giving infrastructure status to logistics and initiatives such as setting up a logistics department, headed by a special secretary under the aegis of ministry of commerce.

Now, the next phase is likely to see differentiated demand growth based on quality.

The government both at the national and the state levels has to play an even more proactive role. It needs to implement the policy reforms with an increasing zeal and it needs to complete the large infrastructure development plans on time. Unless an efficient infrastructure and a sustainable set of policies are in place, the consolidation of the supply chain will happen slower than expected, and the wider migration of companies, from Laggard to Smart warehouses, will decelerate. september 2020 | 29

With the lockdown being lifted in most parts of the country and subsequent resumption of manufacturing operations, the pent-up demand for new supply of warehousing space is bound to increase, states Rajesh Jaggi, Vice Chairman– Real Estate, Everstone Group. In an exclusive interaction with Ajeet Kumar, the expert elaborates that the focus will now be to maintain the highest degree of hygiene and safety standards in the warehouses, a situation of opportunity wherein organised nationallevel players will gain a competitive advantage over the unorganised ones.

rajesh jaggi

launched the Tenant Communication App for easier and faster communication with our customers and responding quickly to their queries/requests.

Additionally, we have been maintaining good hygiene and safety standards at all our warehouses for staff and stakeholder wellbeing. We are assuring that everyone wears protective mask and uses sanitisers from time to time. Daily temperature checks are conducted, and all private and transportation vehicles are disinfected while entering the premises. Besides, we regularly sanitise our premises and provide training to create awareness so as to curb the spread of the virus.

Going forward, we plan to develop a roadmap for contactless digital operations with the perspective to further enable digital customer experience transformation.

Warehousing is a pivotal link in the logistics sector in India

H

ow has your organisation been providing customer experience during the lockdown?

The priority for IndoSpace since the beginning of the lockdown was to ensure accurate planning, robust communication, and seamless execution of operations. All our industrial and logistics parks stepped up to the challenge and designed contingency and operational frameworks to provide solutions to customers promptly.

Taking a cue from its international partners, IndoSpace had taken proactive measures to prevent the spread of the 30 |

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virus since the beginning of its outbreak. We prepared, circulated and implemented new standard operating procedures for maintaining smooth operations of our customers. We started periodic communication, which continues till today, about consistency in protocols of international standards that we had set in motion to assure our tenants preventive measures and high operating standards at all times.

IndoSpace activated its business continuity plan in the middle of March for retaining the growth, ensuring service excellence and safety and normalising the business sooner as possible. We

The consumer sentiment being low now and considering economic downturn, what will be the scenario of warehousing services in the country in next couple of months?

Warehousing is a pivotal link in the logistics sector in India and has been consid-

ered as an essential service, due to which the sector was completely functional even during the successive lockdowns.

With the lockdown being lifted in most parts of the country and subsequent resumption of manufacturing operations, the pent-up demand for new supply of warehousing space is bound to increase.

We expect that to counter uncertainties in the manufacturing process, companies will opt for larger inventory stock at warehouses instead of just-in-time operations, which in turn, will lead to greater demand for warehousing space.

The shift could also come in the form of network realignment and de-consolidation to mitigate risks.

Experts say the industry will also see a lot of automation across industries with less staff and more of machines doing the job. Is this a curious case of commercial consideration or a business continuity necessity?

Even before the COVID crisis surfaced, there has been a conscious shift towards technological advancement, modernisation and optimisation of warehousing operations along with the increased focus on developing Grade A infrastructure facilities and amenities.

Only large players can afford the transition to automation as technology is a matter of capital, and this trend is not expected to shift in the short-term.

If COVID persists for a longer period and affects operations, then companies may decide to adopt technology faster as compared to pre-COVID times, which will have a profound impact on human intervention.

Do you see some modal shifts in the way the industry had been working earlier? How have you contributed to the objectives?

Increased demand for efficient logistics space that facilitates quick movement of goods to consumers has necessitated the shift from Grade B to Grade A warehouses. According to a JLL report, India’s Grade A warehouse inventory reached 88 mn sq ft in 2019 from 65 mn sq ft a year ago. The share of total warehousing stock increased to 42 per cent in 2019 from 38 per cent in 2018.

Grade A warehouses are better equipped for efficient material handling along with access to the latest technolo-

We remain the torchbearer in the country’s contemporary industrial and warehousing space and continue to redefine and push the limits of endurance and sustainability. gies. The facilities have ample clear height, optimised column spacing, flat and super-flat floors designed to support high cube racking, high dock-door ratios and extensive concrete truck courts.

They allow abundant creativity in laying out the plant and equipment and also the smooth movement of people and vehicles inside buildings, resulting in optimised turnaround time and lower logistics cost.

IndoSpace is the only national network in India providing Grade A worldclass light industrial and warehousing facilities. We remain the torchbearer in the country’s contemporary industrial and warehousing space and continue to redefine and push the limits of endurance and sustainability.

Safety measures and risk management policies should be put in place and must be adequate to eliminate, control or minimise the impact of unforeseen situations that might impact manufacturing/ logistics operations.

Can we expect more automation coming into the entire supply chain for the handling of cargo in a multimodal network?

The world has been moving toward automation since the past few years; however we also need humans to run those machines. The scale of operations and size of warehouses influences automation decisions for boosting potential performance. Globally renowned and organised players may afford to automate processes but the unorganised ones will take more time to catch up on that front.

How can the logistics ecosystem players need to gear up in supporting India’s dream of becoming a manufacturing hub?

The presence of warehousing hubs at vantage points, i.e. in proximity to manufacturing and consumption centres will boost the logistics ecosystem. The locations should meet the demand for modern, large, world-class warehousing and storage facilities with enhanced connectivity.

Warehousing providers should have the ability to quickly scale up/down to smooth out demand and supply fluctuations. Safety measures and risk management policies should be put in place and must be adequate to eliminate, control or minimise the impact of unforeseen situations that might impact manufacturing/logistics operations.

How long do you estimate it would take for our industry to get back to business as usual? What will be the growth drivers?

The advent of the pandemic have currently slowed down the growth rate of the warehousing sector, but the same is expected to pick up the pace in the last quarter of FY 2021. We anticipate strong growth in the medium-to long-term.

However, in the short-term, we need to remain watchful of the changing business climate.

Certain policy-level decisions are expected to be launched this year to cope with the variable demand-supply metric post-COVID-19. Also, the focus will now be to maintain the highest degree of hygiene and safety standards in the warehouses, a situation of opportunity wherein organised national-level players will gain a competitive advantage over the unorganised ones.

What are the areas industry professionals globally need to keep an eye on, and put up a unified front?

In these times of crisis, we believe that a knowledge-sharing mechanism should be developed by all of the world’s countries, wherein best practices are shared to deal with the crisis effectively and to adapt and rise.

The industry can also plan to develop industry-specific standard operating procedures and conduct trainings/ certifications for warehouse operators for managing pandemic risks. september 2020 | 31

K Chandramohan Starting as a simple transporter and now becoming an integrated logistics partner of choice for several large MNCs and Indian supply chain businesses, NTC Group’s market leading position in project and renewable logistics builds upon its expertise in offering end-to-end solutions with the integration of its in-house engineering and warehousing capabilities. NTC Group today is a conglomerate of NTC Logistics, Power Press engineering, SCINNTC, Shreevari Energy systems, Everrenew Energy, NTC Infra, and NTC Institute of Driver Training & Research (IDTR). K Chandramohan, Chairman & Managing Director informs Upamanyu Borah, more on their ability to solve some of the complex logistically challenging projects with their potential level of commitment and expertise.

Delivering economies of scale is the epicentre of all our solutions and services

G

iven NTC’s front-line role in steering the country’s logistics industry, how did you adapt to the various scenarios during the pandemic to get businesses going?

The pandemic has proven that customers truly depend on the players who can offer continued services even during these testing times. Our commitment and ability to complete some of the logistically challenging heavy lift projects even during the crisis in India as well as in Srilanka has earned us immense appreciation. These projects 32 |

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involve supply chain activities like chartering vessels from various countries, domestic transportation of critical packages, handling activities at multiple ports, construction and setting up of large renewable projects, compliance with all safety requirements, and above all, ensuring completion within the stipulated timelines.

How do you structure highperformance teams and tech-driven innovation internally to get the most out of your people?

NTC as a multi-national group is built

strongly on the values of customer service excellence and innovative product offerings. Delivering economies of scale is the epicentre of all our solutions and services. We have a vastly experienced technical team and business infrastructure to continuously improve and expand into new niches. After years of successful India operations, today NTC offers services beyond the country’s boundaries.

NTC products rise to prominence in the purview of organisations who strive to save operational costs and increase overall efficiency. With the expertise of our R&D team, we have developed technologically advanced transportation equipment. To add to our strength, we have also introduced first-of-its-kind rotor blade and tower adapters for wind turbine haulage as well as gantry cranes transport, with overall capacity to handle up to 720 metric tonnes.

These unique assets sets us apart as the ideal single partner with full-cycle

management capabilities in-house to handle complex end-to-end supply chain operations.

What benefits can clients expect only from NTC’s project logistics services?

NTC has been a market leader in project logistics as well as integrated logistics services. We offer cost effective logistics solutions and an entire gamut of valueadded services, designed with the customer in mind. We’ve also executed mission-critical projects for space research and heavy industries.

We have been a trend setter in the use of adaptive technology and digitisation. We are amongst the few in project logistics to introduce AI and ML technology which seamlessly integrates across our processes and functions. We use advanced positioning system to track and trace shipments and carriers; our control room in Chennai monitors drivers and vehicles 24x7. Our functionalities also include preventive monitoring like collision control amongst many other monitoring dashboards and reports.

What projects are you currently working on? What is the strength of your ground workforce at present and how are they helping ramp up your projects?

We are currently working on some large domestic and international projects in industries such as oil and gas, infrastructure, power and renewable energy in India, Sri Lanka, China, Vietnam, Malaysia and Australia. These are at various stages of implementation.

Our ground force of over 3000 employees across 32 locations in South and East Asia are engaged with niche partners and network members to design unique solutions with the customer in mind.

In your opinion, what is the difference between the project

logistics landscape of other Asian countries and India?

Every country has unique challenges and opportunities in terms of regulatory, environmental, compliance and standards. The available external infrastructure and service maturity has a broad spectrum across Asia. The demographic dividend of the young Indian work force presents collaboration opportunities for Asian customers and service partners to leverage the best practices and innovative solution design.

With AEO accreditation, NTC is in a strong position to represent customer needs with Customs and border authorities while also offering consultancy services.

What is the scope of your capabilities with regard to your dedicated facilities- warehouse, CFSs and ICDs down South as well as across the country's vast hinterland?

We offer stand-alone near shoring, multi-user FTWZs and integrated services with our SCINNTC partner network across India for scalable solutionsspecialised chemical warehouses, ecommere fullfilment centres and regional distribution centres.

We also have strategic MoU with several CFS and ICD units to cater to our customers inland storage and transportation needs.

Breakbulk cargo transport requires that a number of uncertainties be well managed to mitigate risk of damages, missed key connections and accrued delay penalties. How efficiently have

We offer stand-alone near shoring, multiuser FTWZs and integrated services with our SCINNTC partner network across India.

Freight Forwarding

you strategised and aligned the process of cargo movement management?

Breakbulk cargo operations require a lot of pre-planning. We have predefined certain SOPs and checklists and the team adheres to the same to mitigate the risk and the enroute concerns.

The controllable factors like selection of vehicles, secure packaging, placement of the package, lashing it with verified calculation, EHS monitoring with safety officers assigned for the movement, pre-planning with contractors for civil work, application for power shut-downs, and advance road and railway permissions helps us to meet our time-bound action plans with efficency.

Whereas, the uncontrollable factors like aligning to the revised placement dates with vehicles, vessel/barge laycans, and navigable windows pose major challenges of commercial risk. However, the experience of handling critical and sensitive cargo over the past two decades makes us the preferred logistics player with capability to manage even uncontrollable situations with our expert manpower and technology-based planning tools that gives us an edge over the competition and ensures we are aligned to all timelines.

Today, a handful of smaller ocean cargo gateways in India are becoming competitive specialists in accommodating breakbulk. How do you contribute to the overall objective?

We have the opportunity to offer flexi gateway solution, to minimise the lead times and upgrade first and last-mile delivery timelines. Several service options are on the anvil to provide a wider choice and reduce the overall logistics spend of our clients whilst balancing the delivery schedules and and cost outlay.

We have also been involved with various ports to offer temporary infrastructure upgrades for specific project execution.

3PL and Warehousing september 2020 | 33

Renewable Logistics services

What is the rationale behind NTC’s roll out of SCINNTC Supply Chain Solutions and Everrenew Energy?

What is the importance of the affiliates within the strategy of NTC? It is my vision to make NTC a truly versatile logistics player that offer tailormade solutions fulfiling all the supply chain requirements.

SCINNTC, an offshoot of NTC Group, is a technology-oriented supply chain company that is committed to providing next-gen supply chain and storage solutions.

Having excelled in renewable logistics, Everrenew was a natural logical consequence of the group’s expansion and diversification plans. Providing one-stop-shop solution- from data analysis, land procurement, civil and electrical development of the farm to installation and commissioning the plant is what Everrenew offers to renewable energy sector customers.

Advancements in automation and digitalisation will have a profound impact on the logistics workforce. How do you see NTC evolving alongside ever-new tech deployments?

NTC invests highly in empowering itself with digital technology. We are making substantial investments to provide hi-tech fulfilment centers, last-mile hubs for delivery and distribution, and also for end-toend visibility and real-time tracking.

Over the years, NTC’s core team has rolled out technology solutions for various large and medium organisations to derive productivity, cost-efficiency, scalability, asset optimisation, reliability and consistency.

Recently, NTC was ranked 8th globally among specialised transport companies. This honour was conferred to NTC 34 |

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in the IC T50 global rankings by KHL Group- world's largest provider of international construction information. It is a defining moment in the legacy of NTC, to be the first and the only Indian company to enter the top 10 in the latest IC T50 rankings. This ranking is based exclusively on the assessment of the companies in terms of their total asset strength including different types of hydraulic axles, pullers, trailers, specialised transportation equipment, cranes, etc.

Having excelled in renewable logistics, Everrenew was a natural logical consequence of the group’s expansion and diversification plans. Providing onestop-shop solutionfrom data analysis, land procurement, civil and electrical development of the farm to installation and commissioning the plant is what Everrenew offers to renewable energy sector customers.

How does NTC Institute of Driver Training & Research (IDTR) orient domain/classroom training to help in-house as well as the external workforce overcome complex situations and solve real-world problems, especially in a country like India with sub-par physical infrastructure?

We have been pioneering in our efforts to impart formal training to the driver community. IDTR is a specialised insti-

Projects & Engineering services

tute in India, which has developed an innovative method of training and grooming over dimensional cargo vehicle drivers to become Captains.

The modules/syllabus are designed specifically keeping in mind the nomadic nature of truck drivers. The training programs advocates on driving skills, road safety awareness as well as importance of health and wellness. It mainly focuses on creating customer-oriented skilled assets and ensuring accident-free and safe operations with low costs.

IDTR has also partnered with NSDC to create skill development initiatives for youth in various technical courses.

What significant changes and developments are you expecting/ predicting for the country’s logistics industry over the next five years?

There are multiple policy changes expected to change the way maritime, road and rail logistics is carried out in India.

With ‘Atmanirbhar Bharat’ expected to shake up the major economic indicators like manufact uring, the country’s strengths that depend upon its fast expanding roadways connecting the major production hubs and the ports for movement of cargo, major inland waterways, and dedicated freight corridor network will play an important role in deciding the pace at which logistics players leverage the desired developments. We see these developments crucial in building India as a 5 trillion dollar economy.

With key nodal agencies taking proactive measures to strengthen the cooperation between the users and the government by understanding the demand for key policy changes that ensures best optimisation of our resources will help reduce the risk of operation delays, propel productivity and ensure that the end-users are equally benefitted.

Customs Bonded Warehouse LCL Import & Export Hub Buffer Yard & Factory LCL Cold Storage in the CFS Storage area 5,00,000 sq.m., of covered warehouse space Direct access to the National Highway 4B leading to the JNPT Port Ample space for parking of 1000 cargo trucks 24x7 CCTV monitoring CFS owned equipment- 4 Top Lifters, 200 Trailers, 30 Forklifts, 2 Empty Handles, 1 Crane Distance from JNCH 11 Km Zero toll charges, Zero congestion in the CFS, TEU Handling Capacity -9000 TEUs per month Carting & Stuffing done in covered area Ideal Location for Exporters/CHAs/Freight Forwarders Prompt Carting of Cargo Unique Temperature Controlled Pharmaceuticals product handling capabilities in the CFS

Covered Warehousing Facility

LCL Import & Export Hub along with LCL Cold Storage

Covered Carting & Stuffing Area

Custom Area

JWR Logistics Pvt. Ltd., 15-23, National Highway 4B, Panvel-JNPT Highway, Village Padeghar, Panvel, Maharashtra -410206. Tel: +91 22 50500000 | Fax: +91 22 50500199 Email: kruti@jwllogic.com | raaj@jwllogic.com | hema@jwllogic.com

www.jwclogic.com

uday r sharma In a rapidly changing commercial and social environment, some organisations are born agile, some achieve agility, and some have agility thrust upon them. In response, a new organisational form is emerging that exhibits a transparent business model to suppliers, investors, and consumers and allows to move forward and exceed the expectations of those relationships.

In a riveting conversation, Uday R Sharma, COO, Spoton Logistics explains Upamanyu Borah, how the five trademarks- Strategy, Structure, Process, People and Technology have enabled them to balance stability and dynamism and thrive in an era of unprecedented opportunity.

Quick decision making while remaining flexible and agile will go a long way

H

ow has the pandemic changed the nature of your logistics system and processes? Is it restraining you from serving your customers effectively?

The pandemic had impacted servicelevel agreements (SLAs) for a brief period due to factors well beyond our control. As lockdowns ease out and normalcy slowly returns, we are getting back to pre-COVID operation levels.

On a positive note, the pandemic has reinforced our belief in driving business efficiency and agility through technology-centric operations. Consequently, planned investments in artificial intelligence (AI), augmented learning, warehouse automation and robotics, and predictive analytics have now been accelerated. This is providing a compelling edge to our operations 36 |

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The pandemic also exposed certain operational dependencies and performance variables that impacted SLAs adversely. Weaving in these scenarios into our AI engine will help better plan for future disruptions.

What were the best- and worstcase scenarios, and how was the business equipped to cope with the volatilities?

The months of March and April were the most disruptive in terms of service

We now have 5000+ active customers base but still pay great attention to highly personalised relationships with each one of them.

delivery. The confusion created due to sudden enforcement of lockdown, stoppage of truck movement and resultant plight of unskilled labour hit us hard.

Our worst case scenario was not being able to predict fulfilment of SLAs to clients during the first few weeks of the lockdown.

Our ground teams kept on working tirelessly behind the scenes. They coordinated with the concerned authorities to expedite permits to pickup/deliver essential goods, provided relief to stranded drivers, ensured safety of stranded consignments, and assisted pickup/delivery partners in reconnecting disrupted networks.

Looking down the road, what do you think are the trends influencing 3PL services in India? Where do you see significant gaps between what

ly personalised relationships with each one of them. This is one reason why we have been able to regain 90 per cent of business from pre-COVID levels.

shippers are looking for today, and what the logistics industry offers?

The shift to logistics automation is driving growth of third-party logistics (3PL) in India. The growing adoption of cloudbased software, innovations as a result of more connected technologies that use application programming interface (API) to integrate into transportation management system (TMS), and ongoing push to improve information sharing and transparency across all levels of logistics operations will further drive customers to embrace 3PL wholeheartedly.

Modern day shippers look for constant supply of reliable carriers real-time insights. They also want extensive visibility into the consignment’s journey at the piece level.

Only a handful of companies are able to support what modern day shippers need.

Other than fostering general business growth, where has Spoton’s investments been in the last few quarters?

How is the company looking at consolidating its service offerings?

All our big ticket investments in technology, employee empowerment and sustainability, are focussed on driving growth, competitiveness and profitability across our services mix.

We already offer integrated road express, air express and 3PL services to customers while enabling wealth of real-time data about live and legacy shipments.

What technology innovations are you looking at to deploy in order to prepare for future growth and meet unprecedented digital transformation demanded by pandemics like COVID-19?

Our technology innovations are presently focused in areas such as predictive analytics, paperless/contactless operations, e-learning management systems, warehouse automation and real-time shipment analytics, to both clients and internal teams.

For instance, we have developed an in-house AI model called ‘Reinforced Learning’ to drive network efficiency.

The AI engine, using live and legacy operation details related to the customer, enables quicker deliveries, allows efficient fleet utilisation and faster reaction to operational issues and dynamic customer requests, more effectively. Besides increasing the efficiency of Spoton’s pan-India network, this AI engine is also helping improve overall kilometers travelled by our trucks.

At 700+ crore and 17% Y-O-Y growth, Spoton continues to be the fastest growing express logistics provider in India.

Any new alliances you have forged to leverage and offer a large basket of products and solutions to the Indian industry?

Our most recent investment to expand our service mix was in 3PL when we acquired a majority and controlling stake in Chennai-based RTS Logistics. With this investment, we now offer road and air express and 3PL services under one umbrella.

What are some of the advantages of being small during a pandemic?

What can the larger chains learn from smaller ones in terms of supply chain management?

It depends on what is considered small. At 700+ crore and 17 per cent Y-O-Y growth, Spoton continues to be the fastest growing express logistics provider in India.

Our asset-light business model and technology-centric operational backbone is built for agile operations. This agility is our key USP and enables us to engage with large customer requirements as well as address the need for consignment detailing at the piece level.

We now have 5000+ active customers base but still pay great attention to high-

What about your aspirations towards achieving good growth in the express logistics segment considering that the crisis had almost crippled the sector?

We consider COVID-19 a mere blip on the radar. Core economic indicators continue to be sound for the long run.

A shift in manufacturing to India by global product majors may also usher in newer opportunities for growth.

Overall, we continue to remain bullish and will proceed with our investments as planned.

Do you consider 2019-20 a lost fiscal for Spoton? Would you continue the focus on growth in the context of the expected moderation immediately after the pandemic subsides and the pent-up demand? Would that make any perceptible difference?

The business environment is slowly returning to normalcy and we expect to achieve most of the revenue goals we set for 2020-21, barring unforeseen disruptions or economic slowdown due to drop in consumption levels over the next few quarters.

With markets reopening in July, we have recovered 90 per cent of our preCOVID business. Before the first lockdown, we were growing above the industry average at 17 per cent CAGR. We are looking forward to continuing on this trajectory as demand picks up again and the sector regains stability.

Many logistics and operations managers are feeling overwhelmed these days. What practical advice do you have for them as they try to respond to the fluctuation in demand and supply?

I believe, there is an opportunity in every adverse situation. There is enough scope to adopt, adapt, re-invent every aspect of work that we carry out in our daily lives. Sustainability in supply chain operations is most essential, quick decision making while remaining flexible and agile will go a long way. Embracing technology and digitisation along with automation is key to sustain through these tough times. september 2020 | 37

Jasjit Sethi

The industry and stakeholders should attempt to consider the transformation in the aftermath of the coronavirus outbreak through a positive lens in order to improve supply chain and logistics management so as to provide highvalue and even more outstanding services to the society, since it has now been made abundantly clear that supply chains are the veins of an economy.

In an exclusive conversation, Jasjit Sethi, CEO, TCI Supply Chain Solutions reveals to Upamanyu Borah, about identifying new alternatives to build, diversify and reorient supply chain and distribution capabilities which will represent an important component of the strategies to build resilience against future disruptions, while constantly innovating products and processes.

What you consider as the top 3 challenges the industry is currently facing?

First and foremost is the ‘re-jig or relook’ at the supply chain from source to consumption, ensuring sustainability.

Next are the regional and local issues due to restrictions in the form of containment zones and fluid situation.

While it has not impacted TCI, the migrant labour exodus is a big issue for many organisations.

Overriding above all of this is the fact that COVID-19 is touching 3 million cases in India, and the situation is far from plateauing off.

What are the best- and worst-case scenarios, and is your business adequately equipped to cope?

The best and worst case scenarios depend from company to company. Those who are playing a catch up game will continue to struggle.

For example, while we did not know the depth and length of the lockdown situation, TCI was much ahead of the curve and had done scenario analysis before the nation-wide lockdown was announced. We had the necessary infrastructure in place supported by secure processes for awareness and precautions around COVID-19. During the lockdown, we ensured our employees were safe and in-station and our truckers were with their vehicle while arrangements for their food and shelter were monitored. We had created quarantine rooms in all our staff mess across the country as a precautionary measure.

The motive in our plans towards dealing COVID-19 disruptions was facilitating business continuity for our clients in a way taking care of all the stakeholders in the ecosystem. We closely planned with every single client to deal with the situation in ways relevant to their business vertical. We ensured smooth movement of essentials during the lockdown. Our planning for the first three months of this financial year was good, considering our emphasis on keeping our network active and working.

While the surge in demand is an outcome of the economy opening up with each industry on different rebound

Those who are playing a catch up game will continue to struggle

Y

ou are a thought leader in the supply chain scenario. What are the perceptible changes you have found in the mindset of the customers in recent times?

COVID-19 related disruptions have challenged many status quos.

More than ever, clients are now acknowledging logistics as a key enabler rather than viewing it as a cost optimisation domain. The sudden economic lockdown, affecting movement across na38 |

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tional and international borders, have made organisations to consider reshaping their supply chains, relook at warehouse network, and possess higher safety stock to deal with similar supply chain disruptions in the future.

We can also see a visible increase in the interest of organisations to outsource their logistics operations and re-engineering of their supply chain network with support of stable 3PLs with a sound ecosystem.

timelines, the best case scenario is that logistics continues to function and remains an enabler. The worst case is breakage in any part of the chain due to any of the factors mentioned above.

How should we organise capital investments plans in light of unexpected shocks to revenue and potential permanent changes to the usage of transport networks?

While being mindful of the current financial health, capital investment plans should be part of long-term strategy.

Shocks like COVID-19 cause demandside issues which eventually turn to supply-side bottlenecks. Hence organisations would do well if they keep their plans in place with setting a deferment period, keeping in mind that y-o-y levels may be similar in Q3 and Q4 of this fiscal.

In the post COVID-19 scenario, experts believe the standards that are required both in terms of handling of cargo and personal hygiene of truck drivers will improve. Does this indicate there will be more automation coming into the entire supply chain for handling of cargo in a multimodal network?

Hygiene standard improvements are imperative. With physical distancing norms in place and when industry is facing a labour crunch due to migration, dependence on automation will definitely help.

I certainly believe that automation now will be a business continuity consideration along with commercial consideration to accommodate for operating during unprecedented circumstances like today. To avoid any possible spread, the inkling is towards reducing the number of touch points in handling of cargo, thus automation becomes crucial here.

With above, palletisation of cargo throughout the supply chain will improve to facilitate automated handling that shall ultimately contribute to lower handling time and cost. Incorporation of conveyor systems, robotic handling, use of drones, etc. is also expected to catch momentum.

On the brokerage side, things like spot market rates and volumes are doing well. How do you view that situation?

Current situation is quite volatile as COVID-19 hasn’t settled down, it is con-

tinuing to impact supply chains in clusters across the country. Till now, we have seen a balance in volume produced

by OEMs and availability of trucks and manpower. Overall, there is no supply– demand gap barring few industries. It is just that impact on freight rates have come up due to the abrupt surge of fuel prices in the last few weeks.

In the near future, we don’t see any sharp increase in spot market rates, even though there might be some temporary gap in demand and supply.

What is the current scale of operations in your transportation and warehousing segments?

Our warehousing operations are almost back to what was pre-lockdown. However, in transportation, currently, we are having a fleet utilisation of 50-70 per cent. There has been a gradual increase month on month, and we expect to be back to business as usual by Q2.

Our warehousing operations are almost back to what was pre-lockdown.

However, in transportation, currently, we are having a fleet utilisation of 50-70 per cent.

Your business operates on an assetlight model. Has that helped?

At TCI, we adopt an optimum asset model. This has definitely contributed in maintaining stable profitability over the years. In general, it helps in minimising the cost incurred as well as efforts on maintenance. For vehicle fleet, apart from the ones we own, we have longterm vendor partners, and we give equal focus on fleet utilisation of both (our own and vendor-owned).

Is there a way to roll up the biggest challenges facing warehouse/DC operations considering this new environment?

We have to learn to live with this ‘new normal’ and build our processes accordingly. Close monitoring of hygiene standards are needed, but accessibility of safety and hygiene infrastructure to everyone in the ecosystem has to be first ensured.

The need for essentials and warehous-

ing got widely proven during the crisis.

Warehouses across the supply chain spectrum kept the nation running and replenished the necessities in a timely manner, although the challenges were plenty.

Physical distancing norms are putting extra strain and working hours have gone up. Therefore, relaxation in wage rules on working hours can be worked upon to manage productivities.

A collaborative approach is needed to create quarantine facilities in each warehouse facility or logistics parks to build a safety ecosystem, ultimately contributing to the confidence of the workforce.

We have to seek areas of optimisation by using ‘Machines over Men’ to meet the challenge of productivity while maintaining physical distancing norms and reducing the number of touch-points inside warehouses or fulfilment centers.

Do you think there will be consolidation in the industry?

What measures are you expecting from the government?

The logistics industry at large still remains unorganised in nature. The cash flows of many small players were gravely impacted during the lockdown and the dwindling production volumes in many sectors with uncertainty of return to complete normalcy have endangered the survival of these players. In such circumstances, consolidation can be seen around the corner. However valuations would need to be realistic.

The expectations from the government are balanced and more procedural than SOPs. These are:  Extension of the validity of documents for warehousing and trucks till the end of this year as business have suffered due to low throughput.  Reining in the Inspector Raj in various departments (Labour, RTOs) and moving to electronic modalities, which are possible with E-way bill and online PF/ESI.  Reducing the licenses and documents for operations by removing overlap  Passing on the benefit of global crude prices to the industry instead of profiteering from it.  Overall, it is a golden chance for the government to prune departments and go for a quantum leap in digitisation, besides removing rules where unethical practices have fostered overtime. september 2020 | 39

vishal sharma

W

hat expedited and alternate solutions are you offering to provide a satisfactory shipping experience to shippers amid uncertainties?

We are offering alternatives for air freight via charter options connecting Europe, USA and Latin America. In the current environment, we are also encouraging customers to use digital tools for booking and pricing.

We are working closely with our customers to establish forecasts which allow us to plan capacity with carriers and shipping lines.

How do you foster innovation internally during time of a crisis?

How do you manage to keep your people aligned to service your customers more abruptly than ever?

Irrespective of the challenges due to the pandemic, the fundamental priority for us remains the safety of our employees, drivers, and loaders and unloaders. We at DB Schenker in India are committed to enabling a seamless, safe and wellinformed working environment. To ensure the safety of our employees, usage of personal protective equipment (PPE) is mandatory for our ground staff and those working on the field, as well as the ones at contract logistics sites who are ensuring health care supply chains remain active. The tools, technology and product experts have brought us closer to customers although we are miles apart through various digital online platforms. Further, the attention to details taken by our teams to embrace customer expectations across products has allowed us to stay ahead of the curve.

Additionally, with effective measures for road transportation, we have undertaken various initiatives to keep supply chains moving, including arranging pick-up/drop-off for our driver fraternity, as well as lodging and refreshments needed to ensure we minimise exposure of our trucks and drivers to the public environment.

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Global forwarder DB Schenker is positioning itself on the forefront of contract logistics offerings in India as the country puts heavier focus on supply chain efficiency via trade reforms and technology implementation.

Focussing to better serve customers with a digital-first approach, the firm has begun to utilise autonomous robots to enhance productivity, and also bringing transparency and visibility across the supply chain, reducing the efforts of track and trace. Vishal Sharma, CEO – Cluster India and Indian subcontinent at DB Schenker informs Upamanyu Borah, on how they have been keeping pace with ever-evolving industry demands and offering specialised operations to deepen their logistics value chain in the region, covering every aspect from planning to execution.

Contract logistics is expected to get more structured How may we best summarise the current state of the 3PL market in India? Does it continue to strengthen, or has it plateaued?

3PL plays a vital role in meeting the warehousing demand from customers, which is followed by e-commerce and manufacturing sectors. It is a primary growth driver for the e-commerce industry in India, providing one-stop solutions for enterprise supply chains in packaging, warehousing, transportation, and order fulfilment.

3PL business is getting accelerated towards automation and innovation with a lot more companies investing in automated equipment to improve productivity and efficiency. The business has developed with more predictive supply chain demands and resource optimisation, resulting in more cost efficiencies.

Which recent innovations at DB Schenker do you claim to be the

most ground-breaking for the industry?

Carefully strategising our business continuity plan well before the lockdown was started in India enabled us to take necessary steps to keep the supply chain resilient in these unprecedented times. With the ability to meet the last-mile delivery for customers, we started charter operations in the month of April for both imports and exports between India and the USA, Europe and other Asian countries.

As passenger capacity was reduced to zero and due to the scheduled cancellations of many cargo freighters, we had to deploy 25 charters to support customers who are into the manufacturing of vaccine, PPE and other health care equipment. We simultaneously started security escort services for the safe movement of cargo by road to mitigate any challenges amid the lockdown.

Our multimodal solutions for customers also played a key role in these

tough times. Multimodal solutions were offered as an alternative to air freight, which offered cost-effectiveness and alternate capacity to us. For example, we offered air charter services between India and Europe and ocean services between Europe and the USA, with less than 20 days transit and cost differential of 25-30 per cent savings, making it a viable option for customers who wanted to expedite the delivery of pharmaceutical products to the USA but had a lead time of three weeks to deliver.

How are you adding value proposition in India’s contract logistics market? Do you see your company’s global warehouse space scan service as having the potential to augment existing offerings and complement contract logistics business models or product sales?

Contract logistics is expected to get more structured as the country starts to seek providers who can offer automation and mechanised solutions rather than manual options. The sector will mature in the future with modernised facilities, state-of-the-art technology for material handling, and highly secure and safe premises.

With the support of our worldwide network of branches, DB Schenker in India connects all-important global economic regions and offers contract logistics solutions tailor-made to the customers’ requirements.

To address the growing demand from customers for storage capacities, DB Schenker’s latest global space scan service aids to identify and assess available idle space in all 794 of our own contract logistics warehouses in more than 60 countries.

India being one of the globally focussed markets for DB Schenker, this service has been introduced here, helping us to provide on-demand service to customers for extra space requirement and stocking up of goods. With this new service, we not only serve the market during this transition to the new normality but also improve the agility and flexibility of our customer’s supply chains.

What are the key areas in which technology has had a deep impact on the way DB Schenker works?

Digital technology is one of the key strengths of DB Schenker in India. We

are scaling up our supply chain to address the growing need of the customers and meet the last-mile delivery, specifically in the current tough times.

Our integrated solutions and digital platforms like ‘eSchenker’ and ‘Connect 4.0 Ocean’ help customers across verticals to customise their shipping services and keep a real-time check on their cargo.

Our emphasis on digitalisation, robotics, artificial intelligence and predictive analysis supports us in decision making in every aspect of our business.

To increase productivity and efficiency during the pandemic, we have increased our focus towards Robotic Process Automation (RPA) not only in our warehouses but also for our transportation solutions.

Our integrated solutions and digital platforms like ‘eSchenker’ and ‘Connect 4.0 Ocean’ help customers across verticals to customise their shipping services and keep a real-time check on their cargo.

What about human resources? After the outbreak fades, would 3PLs be able to find the skilled workforce they need for growth? How can companies adapt to this reality?

We have invested in valuable partners who have ensured the availability of skilled resources during the COVID-19 journey. Additionally, our industry-leading HR practices have always led to the availability of skilled resources.

It is going to be demand vs availability as the market opens further and domestic consumption increases. We are confident our migrant workforce will come back to work to complement the current situation.

You have deep expertise in supply chain and logistics. What else is important according to you to understand or know about the two during these times?

We have witnessed various trends in the logistics sector in the wake of the crisis.

For instance, during the COVID-19 period, the government had enabled various possibilities around digital transformation for out of charge, bill of lading, etc. in the shipping sector under the Customs processes to simplify the process and increase paperless and faceless transactions.

Others that are trending can be summarised as:  A change in customer preferences as the demand increases for integrated solutions and organised players who can scale up the supply chain management efficiently and effectively.  Automation is emerging as one of the key trends in the logistics sector as we witness a major shift towards RPA. This will increase efficiencies in the supply chain process.  Emphasis on new-age technologies like artificial intelligence is becoming critical to next-generation supply chains due to elevated turnaround times for responding to emergencies.

Can you help us understand DB Schenker’s role in future logistics, and services evolving around this concept?

DB Schenker covers all stages of the supply chain– from supplier to customer delivery and reverse logistics to aftermarket support in different industries such as automotive, pharma, retail and consumer, industrial, electronics, aerospace, and others.

The focus towards adopting advanced technologies will increase to keep simplifying and streamlining t he supply c ha i n process for our customers in these sectors. We will further continue to invest in people and technology to differentiate ourselves against our peers.

Data mining will become more important in the coming years. Access to historical data and ability to predict the future will remain true game changers, with a flavour of global expertise and local mindset for customer satisfaction.

As a whole, transformation to a digital era will be a key growth driver for the logistics industry in the coming years. And, DB Schenker will be supporting this growth with opportunities to introduce new and advanced technologies such as scanning, auto picking, and locational capability at our upcoming facilities over the next few years. september 2020 | 41

Gary M Goldfarb

We anticipate vigorous growth of Indian business in coming months

H

ow may we best summarise the current state of the global logistics industry in the wake of the pandemic.

How are you adapting to serve the complex demand?

In our view, there are three logistics industries at this moment. Firstly, COVID-19 response logistics which is at a fever pitch and includes PPE, pharma and medical equipment. Secondly, regular commercial logistics which includes 42 |

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industrial supplies and ‘Brick and Mortar’ retail support, currently down to about 20 per cent. And thirdly, there is e-commerce, which has resulted in a triple increase for us.

In Miami, Florida, we serve all of the above markets inbound into the US as well as outbound to the Caribbean, Central and South America.

Logistics is definitely one of the worst hit sectors during the

We have end-to-end solutions for our customers, therefore, early attention to source points and destination infrastructure issues are the main reasons why we have emerged as the selected provider, says Gary M Goldfarb, Chief Strategy Officer at Interport Logistics LLC- a leading logistics services provider headquartered in Florida in the US and serving most of the industry associations in the region with solutionsSCM engineering, FTZ consulting and operations, freight forwarding and customs brokerage. In an exclusive interview, the veteran discusses with Ritika Arora Bhola, how the logistics sector can offer a glimmer of hope to the global economy, supported that, as players they combat robustly with the crisis. pandemic. Could you highlight the key challenges that the global logistics sector is currently facing?

Logistics is all about capacity. With blank sailings on the ocean side and airport closures on the air side, it is a challenge to find the right infrastructure at the right place. Points of heavy congestion, such as China and India are more challenging than those in the Americas, which at least seem to have the right balance of empty containers and full loads.

How have logistics and supply chain operations changed as a result of the coronavirus crisis?

I wrote an article for a publication based out of Washington, DC where I suggested doing a ‘stress test of the supply chain’. This, during the early days of trade disputes between the US and China, now more appropriate with the coronavirus crisis. The premise of the article was that you either had multiple sources of supply, a secure and dependable supply chain, or had to carry excess inventory.

I can say that nothing has changed.

Most of our customers have bolstered their inventories after taking care of emergency air charters during May and June. Now a build-up is taking place, so inventory management and warehousing opportunities are ultimately increasing.

Brief us about the logistics and supply chain management activities at the Interport Logistics.

Interport Logistics LLC is one of the largest 3PLs in South Florida, in a very active logistics community. We provide supply chain management engineering, foreign trade zone consulting, FTZ operations, freight forwarding, and customs brokerage, besides operate over 350,000 sq ft of warehouse facilities, all with FTZ status and some with state-ofthe-art temperature-controlled services.

Can you describe your company’s own business contingency plans?

Do you have a crisis tool kit? Crisis processes, resources are in place and understood?

We have end-to-end solutions for our customers, therefore, early attention to source points and destination infrastructure issues are the main reasons why we have emerged as the selected provider.

We have always been operating in a crisis mode. Miami, in general, has variety of providers that have built their businesses around ability to react quickly and find solutions. We are just one of the largest, and as such have been doing this crisis thing for a long time now.

How are you managing your logistics network and supply chain operations in terms of creating value for customers?

Most of our clientele tend to be larger companies with a diverse offering. We engage at the start of the flow and help them design their supply chains with an input from the logistics view; we help them manage their inventory right from purchase order until the shipment is delivered to the end user over the six continents. Our Portal System allows a company to interact with us 24x7 and view, download and upload directly into our systems. In several South American countries, we even clear through company’s Customs systems from Miami, so cargo moves and arrives immediately as a domestic shipment.

Miami, in general, has variety of providers that have built their businesses around ability to react quickly and find solutions. We are just one of the largest, and as such have been doing this crisis thing for a long time now.

Could you tell us about the end-toend digital starategies at Interport Logistics?

Interport has been at the forefront of logistics technology. For example, when we receive over 100 truckloads of merchandise with pallet level and unit level distribution requirements, the cargo is pre-received by our customers and their providers interacting with our systems.

So, when goods arrive at our warehouses and FTZs, they are weighed, measured (electronically), images are clicked, tagged with RFID tags, and stored within minutes. The data is immediately moved up to the cloud, where our customers see it, provide disposition information and upload their shipment details, from across the globe, in a seamless manner.

Post-lockdown, how long would you estimate it would take for the logistics industry to get back to business as usual? What will be the growth drivers?

The concept of ‘Paired Ports’ is one that used to be the main driver of ocean freight, now it has gained more signifi-

cance with the concept of fast fashion.

But why? If the pair of ports through which you are moving your goods are open and operating, recovery is almost immediate. Even if one of the ports from a pair ceases operations, then no recovery seems to take place.

We can back up to pre-COVID-19 speed in a couple of months if all the ports open up and start operating.

What will be the impact for the future? Do you think there will be changes on the horizon?

We are quite bullish on the near future.

Once a port area opens, business bounces back almost immediately.

As we learn to live with the virus, companies are learning to get around inconveniences.

How can companies be more prepared, ready to respond and able to recover from crises?

Speed and Velocity are the two main strategies. Make decisions quickly (speed) and implementing them rapidly (velocity).

How do you think of India as a potential investment destination?

We do a considerable amount of business with India and it’s the source for much of the supply chain of some of our customers. We anticipate the growth of India business to be very vigorous in the coming months.

The US has and will continue to have more issues with China, and as such, in some industries India seems to be a very good option for replacement. Our cultures are similar, our language is similar and the work ethic is similar. We are very bullish on India in 2021. september 2020 | 43

Vivek Juneja

Varuna Group has been driving a new era of technology-enabled logistics, warehousing, and integrated services.

The company has built deep expertise and rich infrastructure to effectively address the pain points of the Indian logistics industry. Starting from a micro-regional logistics company to becoming a pioneer in the national road transport industry, the company has seen tremendous growth in the last two decades. Vivek Juneja, the group’s Founder and Managing Director whose vision and contribution has been pivotal in ushering the dramatic growth, informs about their utmost dedication and excellence in all areas to build a competitive edge towards value creation for clients, and that India’s push for self-reliance was a long time coming.

‘Vocal for Local’ movement will add value to the Indian logistics and supply chain sector

K

Indly share the mantra/ strategies suggested to achieve safety and carry out operations efficiently in this difficult hour.

A key mantra for success in this difficult hour has been the move from physical to paperless and contactless. Seeing the current situation, customers also understand the urgent need for digitalisation.

In fact, we are the first ones to implement ELR. 44 |

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We have also shifted our focus towards reinventing business continuity planning models. Earlier, it was implemented just as a policy in company books but now everyone has become serious about it. And they are actively evaluating vendors on the basis of business continuity planning parameters.

This is critical for organising this unorganised industry. This policy boosts growth and helps in the process of creating systems of prevention and recovery to deal with potential calamities.

How can the logistics ecosystem players gear up to support India's dream of becoming a manufacturing hub?

I would say India is rightly and strategically placed for taking this challenge.

The country can easily convert the corona crisis into an opportunity. However, lot of work in terms of planning and investment needs to be strategised by the government as well as private authorities. A lot of labour reforms, adequate infrastructure, trained manpower, etc. are required to boost up the economy. The government so far deserves to be complimented for efficiently managing so far the fallout of the outbreak that is devastating many countries in the world.

Mere chest thumping, slogans or patriotic zeal won’t make us the next manufacturing hub. We have to focus, prepare and offer something compelling to the world.

Initially, during the outbreak, a ban was imposed on the national and international movement of cargo.

Tell us about the challenges that you faced during then and how did you cope with it?

As a logistics service provider, the biggest challenge we faced was the shortage of manpower/trained drivers and this continues to be a challenge for logistics players as thousands of migrants have already gone back to their hometowns during the lockdown, many yet to return. Besides, there wasn’t any clarity on movement of cargo; there was lot of confusion and chaos at local administration levels.

The situation is slowly coming back to normal, and we already in the fourth phase of unlocking. Business operations are improving but shortage of labour

and drivers will remain until a COVID-19 vaccine is widely available. Ensuring manpower on ground while taking care of their safety and health continues to be the biggest goal for us during the ongoing crisis.

Now that the operations have been resumed, kindly throw light on the efficient plans and strategies you have adopted to ensure smooth and safe supply chain operations.

We are proactively investing in our IT capabilities and advanced technologies. Digitalisation has helped us remain competitive in this difficult hour.

In the recent past, we had invested whopping amounts in IT capabilities and focussed on giving customers visibility and transparency of operations.

We are utilisng the benefits of the same and doing our best to make business operations more resilient and efficient in the face of the crisis. Digitalisation has helped us remain competitive and keep up with the ever-evolving industry trends. Therefore, we continue to proactively invest in our IT capabilities and advanced technologies.

Regarding health and safety, we are following each and every guideline and ensuring 100 per cent safety at our office premises, logistics centers and warehouses.

How do you foresee the future of the Indian logistics industry?

The Indian logistics business is slowly shifting from unorganised to an organised one and somehow, this crisis has provided a spotlight for creating more opportunities than ever to form a deeper relationship with consumers and streamline operations, both of which are critical to win in today’s marketplace.

COVID-19 crisis has taught India the importance of local manufacturing and supply chains. It is time to usher in economic policies that produce welfare, sustainable incomes, help job creation and all in all, puts faith in the people.

‘Vocal for Local’ movement will add a lot of value to the Indian logistics and supply chain sector.

How COVID-19 reinforced the importance of business continuity planning?

The logistics industry will come to a standstill if supply chains stop working.

A lot of businesses have already been affected because of the unprecedented collapse in economic activities over the last few months.

Business continuity planning has become a necessity and customers have started evaluating service providers on its basis. Preparation through business continuity planning is essential for any entity hoping to bounce back faster. I suggest every organisation should evaluate their risk management policies and contingency plans to make sure they are future-ready, rather than waiting for such a crisis to happen first. september 2020 | 45

József Kossuth

W

hat’s the current situation at Budapest Airport following the COVID-19 lockdown?

How is the airport reacting and responding to the pandemic?

The changing needs during the COVID-19 crisis required some adaptation of the work structure at BUD as well, but fortunately cargo has been a stable point in the airport operations at BUD. Medical cargo has been booming in the last few months, while we see a stable general cargo flow as well. We’ve been able to set up an entry protocol for the international crew of cargo flights quite early with the help of local authorities.

The rapid spread of the coronavirus has far-reaching consequences for the global economy. Nevertheless, the undisturbed transportation of goods must be ensured. Budapest Airport is working around the clock for maintaining seamless air cargo operations. As in addition to supporting the Hungarian economy, it also plays a key role in the operation of supply chains and in job retention in the related areas.

The demand for dedicated cargo flights has increased considerably. Currently, there is an average of 25-30 cargo flights commuting to Budapest per day.

In the January – June period, with 3,111 full cargo flights (up 23.7 per cent than first half of 2019), BUD handled 63,855 tonnes air cargo, a 2.9 per cent drop from the same period in 2019. The balance changed in favour of imports versus exports, 60-40 per cent compared to the equally balanced export and import division in the past. The share of medical and pharmaceutical transport increased to about 20 per cent in the total volume.

BUD continues to play an important role in providing the markets with much-needed cargo, especially medical supplies. It can be assumed that approximately 15-20 per cent of the total traffic is connected to the current emergency, delivering primarily pharmaceutical products, such as PPE and sanitisers. In the last few months, the arrival of 46 |

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In spite of the challenging environment around the COVID-19 pandemic, Budapest Airport (BUD) managed to create a smooth operational environment for cargo flights with support of the dedicated teamwork and cooperation with all relevant stakeholders. These actions continue to deliver positive results. József Kossuth, Head of Cargo at Budapest Airport in a conversation with Ritika Arora Bhola, discusses how BUD has demonstrated that it understands the value of cargo as a revenue stream, and its proactive approach to building an air cargo handling solution and community that has not only benefitted its partners but the entire air cargo industry.

An ambitious master plan at BUD is in the making the special supplies at BUD was constant and given maximum support by the airport staff, the authorities and the Hungarian government.

The stable cargo volumes at BUD well confirms the hard work and efforts of all the stakeholders of the logistics market in Hungary, logistics companies, airlines, the relevant ministries and authorities, and our colleagues at the airport.

Budapest airport recently celebrated the launch of the first non-stop route to the capital city of the UAE,

boosting the Middle East market.

Apart from that, what are the new airline additions, both in terms of domestic and international operations?

Wizz Air launched flights between Budapest and Abu Dhabi in a strategic move for their business which has also seen them become a pseudo UAE airline with a local operating license. From a passenger perspective, this opens many doors in that region and whilst they have not stated any aspirations to move into the belly cargo business, this could change in time.

In addition, for several years, we have received scheduled flights from Dubai with Emirates and Doha with Qatar Airways, both of which have evolved into freighters in addition to daily passenger flights in the wake of the pandemic, thereby being very active in connecting belly cargo via their hubs.

In addition to the scheduled flights

by Cargolux, Turkish Cargo, Qatar Cargo and Korean Air, the integrator and courier companies DHL Express, TNT Express, FedEx and UPS are also operating regularly. In the face of the emergency, some airlines, which normally transport passengers, were also carrying cargo. Over the past months, numerous flights by Wizz Air, LOT Polish Airlines, Hainan and Shanghai Airlines brought shipments from China. Large cargo charter flights are also arriving on a daily basis, operated by various different airlines. In general, air cargo traffic from Asia has increased.

The increased demand for cargo handling is much noticeable at the newly opened BUD Cargo City – the stateof-the-art, 32,800 square meter handling and forwarder facility.

Post-lockdown, how long would you estimate it would take for the industry to get back to business as usual? What will be the growth drivers?

There are various predictions regarding the total revitalisation of the air cargo industry, many say that the total recovery will happen after 2022.

Globally, t he air cargo market showed 25-40 per cent decline in this period as compared to 2019.

The gradual reopening of production plants and e-commerce will be the major growth drivers. As a matter of fact, e-commerce traffic in Hungary has increased 21 per cent since the COVID-19 situation as compared to the three first months of 2019. Whatever the growth outcomes are, the BUD cargo team will continue in its pursuit of providing the ideal environment for cargo movement in the region.

What are the ideal strategies you are planning to consider in the runway to recovery?

BUD’s vision is to become the main air cargo gateway for the Central Eastern European region and an important cargo bridge between East and West. With com-

pleting the recent developments, we believe we are on the right track.

As a cargo-friendly airport, developments in infrastructure needed to be made and BUD Cargo City was one of the key milestones that propelled us to have some of the best facilities in the region. There are other improvement actions in our list too, which we plan to implement soon. These will help us to not only fully recover but facilitate the volume increase of cargo traffic for the whole industry–freight forwarders, shippers, cargo airlines.

BUD’s vision is to become the main air cargo gateway for the Central Eastern European region and an important cargo bridge between East and West.

BUD Cargo City is really a game changer for BUD and our partners in the competitive landscape. The ‘cargo eyes’ in our region are now looking at BUD Cargo City which is resource-efficient and service-oriented, offering highquality and fast service. The state-of-theart facility has sufficient capacities that forwarders, handlers, and airline partners can use in order to provide the highest quality service for their customers. Everybody will notice in the wider network that distributing and collecting cargo via BUD is working flawlessly, and more and more partners will use it in-

stead of the well-known larger hubs in Western Europe.

These are the ingredients which will generate even better outcomes and further growth. So, now is the time to optimise the business.

How do you look at India as an investment destination? Any plans for future trade with India?

India being the world’s 7th largest economy is very interesting for us, we see an opportunity for establishing a direct connection from BUD. We know that all of our freighter partners operate in India, so we definitely see the potentials of a direct connection. The Hungarian embassy and consulates in India are also fully engaged with BUD to secure flights as early as possible, post the crisis. The appetite seems very promising.

Where do trade activities with India stand at the moment? What are the significant items transported to and from between India and Budapest?

Hungary is very much a partner of India; the two countries have excellent political, trade, and business relationships. The export-import projects between the countries are supported strongly by political and business stakeholders. There are more than 40 major Indian enterprises in Hungary, creating more than 10,000 jobs for the country and almost all of them produce air cargo relevant goods. More Indian companies announced that they’ll invest in Hungary in the automotive and electronics sector.

We can see that air cargo between India and Hungary has its own stable market. The usual product range which is always typically transported by air september 2020 | 47

between India and Budapest include automotive, electronics, perishables and pharma goods.

Tell us about the superior infrastructure and technologies installed at BUD Cargo City for supporting efficient supply chain operations– cargo handling and movement.

BUD Cargo City was handed over for operations on January 06, 2020. It provides state-of-the- art cargo infrastructure on a world-class level and operates to the great satisfaction of airlines and logistic companies.

The new facility has everything that a modern and efficient cargo handling procedures require, new dual view 180x180 X-ray machines, storage rooms for vulnerable, valuable and dangerous goods as well as live animals, and temperature controlled storage rooms and freezers.

In general, we can say, the opening of BUD Cargo City came at the right time and helped a lot to provide a stable background for the air cargo logistics business supplying Hungary and Central Eastern Europe. This has proved very useful in these challenging times.

Looking at the current changing environment, what’s most critical to your mind for Budapest Airport to succeed?

The first challenge is to comply with the demand for innovation- Digitisation, automation, and improvement of service quality.

The second challenge is to follow the changing requirements of the logistics market and transformation of customer expectations. The development of the e-commerce business worldwide and its very special logistics service requirements mean challenge and opportunity for air cargo at the same time.

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The opening of BUD Cargo City came at the right time and helped a lot to provide a stable background for the air cargo logistics business supplying Hungary and Central Eastern Europe. This has proved very useful in these challenging times.

The third challenge is to have sufficient human resources for operations, from pilots to logistics managers and experts, from warehouse staff to truck drivers. Automation, self-driving trucks, and robots can help, but it is a major challenge for the entire logistics industry. The fourth challenge is the environmental impact. We have one world to live in, and we must protect it as much as we can from the negative effects we cause with our activities.

The cargo developments are continuing at BUD. Various actions such as the digitisation of cargo, focus on special cargo such as pharma and live animals, optimising the cargo environment, and a certified shipper program are part of the ‘to do’ list. An ambitious, long-term development master plan for the entire airport is also in the making.

For now, the entire BUD Cargo

We just kicked off the implementation project of CEIV pharma with our handling and forwarder partners.

team is focussing on managing these challenging times of the coronavirus pandemic to best serve the needs of the Hungarian people. Meanwhile, we are also focussing on the ‘soft’ elements of our cargo environment. We just kicked off the implementation project of CEIV pharma with our handling and forwarder partners.

What is the main goal of Budapest airport and where do you see yourself in the years to come?

It’s now even more complicated to predict what will happen in the next few years, but in 10 years, we are positive that our cargo volume will be above 250,000 tonnes, and BUD will be the main air cargo gateway for the region.

Part of this outcome should of course see the BUD Cargo City Phase II constructed and made operational.

Budapest Airport recently accomplished the second phase of the new $37m Pier 1 in line with its deadline. What are the other projects in the pipeline?

Yes, there are exciting new developments on the passenger side at BUD. The Airport Development Directorate handed over the first phase of Pier 1 in January 2020, and BUD completed the construction of the new pier on June 22. The new building section increases the capacity of Terminal 2A by thousands of square meters, ensuring a comfortable waiting area for passengers which meet all expectations.

As we emerge from this crisis, we will further build on our capacities, ultimately in the shape of a brand new passenger Terminal. This is because BUD will not only remain the gateway to Hungary for passenger and cargo operations, but also one of the fastest developing markets in Europe.

A modern, future ready logipark spread across 70 acres of land expansion upto 100 acres with state-of-the-art facilities. Strategically located on 6 lane Agra Bombay highway between Dewas and Indore. The Logipark is an integrated ultra-modern warehousing facility, providing maximum common parking areas, and easy loading/unloading and high tech security in central India. The project provides a range of warehouses in sizes ranging from 10,000 sq.ft. to 3,00,000 sq.ft. or more, with an option of either buying or renting ready to use warehouses.

Empire group has developed more than 275 acres of properties in residential, commercial and retail sector.

HIGHLIGHTS             

18.0 M (60’) Wide Road & Space Truck Parking Zones Landscaped Development Easy Loading & Unloading Weighing scale Canteen / kitchen Internet cafe Convenient shops Sitting area / lawns Pharmacy Dormitories Toilet and bathing facilities Bank / ATM SITE ADDRESS: Empire Logipark, AB Road, Gram Arjun Baroda, Tehsil Sanwar, Dist. Indore (M.P.) India CORRESPONDENCE ADDRESS: Empire House, 13 Manishpuri, Saket, Indore (M.P.) India Ph: + 91-731-2714314 / 2713507 | EMAIL: empirelogipark@gmail.com | WEBSITE: empireindore.com

License No. 12/2013 dated 10.12.2013, Sanctioned T&CP Plan: 1746/S.P./OUT-58/17/Nagrani/2018 dated 27.02.2018 Diversion Order: 51/A-2/2013-2014 dated 10.07.2014, Development Permission (High Court No.) W.P. No. 2878/2015, RERA Registration No.: P-OTH-17-641 dated 27.09.2017 DISCLAIMER: THIS DRAWING IS A CONCEPTUAL PRESENTATION & NOT A LEGAL OFFERING. THE DEVELOPER AND ARCHITECT RESERVE THE RIGHT TO ALTER/MODIFY THE DESIGN & SPECIFICATIONS.

The cost of setting up a business in Bahrain is up to 35 per cent cheaper compared to the rest of the Gulf region. Examples include improvements to the regulatory environment, including updating the bankruptcy law, introducing the data protection law, adopting a cloud first policy, and reducing the minimum capital requirements for starting a business. All the above are important steps the Government has taken to enable a thriving digital economy. Ali Al Mudaifa, DirectorManufacturing, Transport and Logistics Business Development, Bahrain Economic Development Board (EDB), in an extensive interview with Ritika Arora Bhola, discusses more on how the country’s highly competitive cost of doing business is complemented by several other sector-leading developments, increasing productivity and enabling businesses of all sizes to scale faster.

Ali Al Mudaifa

‘Time to market’ and ‘Cost to market’two main variables of importance for logistics companies

H

ow is the Kingdom of Bahrain handling the pressure during these times of emergency?

With the safety of its citizens and long-term sustainability of its economy as the top priority, Bahrain responded to the pandemic quicker than most, and was one of the first countries in the world to ground flights until quarantine facilities were in place.

Now, as the world begins to tentatively reopen, the priority is adjusting to 50 |

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the ‘new normal’ while maintaining health and safety.

A number of initiatives are introduced to take the pressure off the country. Bahrain Tourism and Exhibitions Authority (BTEA) launched ‘WeWillMeet,’ a digital campaign that promotes the Kingdom as a destination through online channels with a particular focus on the Saudi market. Bahrain International Airport also introduced a dedicated medical protocol for dealing with COVID-19 cases amid

preparations to re-open borders. Moreover, new online services have been revealed by Bahrain’s Port and Maritime Affairs division to ensure smooth flow cargo clearances.

Moving ahead, Bahrain’s parliament is discussing a proposal for all government services to be moved online by the end of this year.

Bahrain’s advanced digital infrastructure has done pretty well

to cushion Bahraini logistics firms from the impact of COVID-19. Kindly give us a sense of the technology initiatives that the kingdom has rolled out like 5G and cloud-based platforms.

Bahrain is home to the region’s first Amazon Web Services (AWS). The country is also the first in the world to roll out hyperscale data center nationwide commercial 5G and is in the process of shifting its entire government to the Cloud. This digital hyperconnectivity and embracing of new technologies has served the Kingdom well – and the logistics firms that operate within it – in the face of COVID-19 disruption.

AI and IoT are being utilised, developed and trialed to streamline customs processes, from payments to pre-clearance approvals. AI-powered high-tech portal scanners have been installed along the length of the King Fahd Causeway that connects Bahrain and Saudi Arabia as well as Khalifa Bin Salman Port. The scanners increase efficiency by automatically uploading information about shipments online. This allows information on the shipment to be checked before the truck has even reached the border, significantly boosting speed of processes as well as featuring significantly enhanced risk management systems. This automated system has increased the capacity for commercial trucks passing through the border and can comfortably screen 120 per hour – almost 3,000 per day.

The use of technology is being seen elsewhere as well. APM Terminals, which manages Khalifa Bin Salman Port, is set to launch a blockchain shipping platform that will enable businesses to digitally connect, share information and

collaborate across the maritime trade.

More broadly, Bahrain Customs Affairs is planning to develop an upgraded state-of-the-art single window customs clearance system that will integrate into one platform features such as e-payment, pre-clearance, advanced ruling as well as approvals from government authorities for all product groups along with full-fledged blockchain functionality being embedded into the interface.

Additionally, Bahrain Customs have recently introduced a mechanism for the remote monitoring and surveillance of custom-bonded warehouses across the Kingdom thus lessening the need for direct physical contact.

A Cost of Doing Business study conducted by KPMG in 2019, found that logistics businesses stand to benefit from 37 per cent to 43 per cent in annual operating cost savings when operating in Bahrain, compared to other jurisdictions in the region.

Could you tell us on the production, logistics, delivery and distribution and EXIM opportunities that Bahrain offers to the global pharmaceutical industry?

With a growing regional population and a clear unmet need in many disease areas, pharmaceutical manufacturers can take advantage of excellent market access opportunities through Bahrain.

Pharma manufacturers can enter the US,

GCC and other markets duty free, through Bahrain’s 22 bilateral free trade agreements with countries across the world. Moreover, the COVID-19 pandemic has boosted demand for efficient regional distribution of pharmaceuticals, which manufacturers and distributors operating in Bahrain are well placed to take advantage of.

Bahrain’s MVC Global – providers of one of the leading supply chain trackand-trace platforms for pharmaceuticals and medical devices has recently announced a strategic partnership with Cox Logistics Group – a Bahrain-based logistics provider – to launch a first-ofits-kind ‘SmartHub’ logistics warehouse for pharmaceuticals and food, to be headquartered in Bahrain and will serve the GCC market.

This next generation logistics warehouse will utilise emerging technologies to ensure the speedy and efficient distribution of much-needed foods and medicines across GCC, drastically reducing the time required for paperwork, administration and bureaucracy – at a time when global supply chains have been all but decimated. It will be one of a kind in the Middle East to integrate a track and trace system on a blockchain platform with smart contracts for customs clearances and fee payments.

Where do business and investment activities with India stand at this moment?

Today, bilateral trade between Bahrain and India stands at some $1.3 billion and the focus is more on aluminium, iron and steel – a trend driven by Bahrain’s sizeable infrastructure project pipeline.

Increasingly, however, this is evolving towards service exports, an area which could see the two countries further enhancing economic ties.

In particular, there is potential for collaboration in FinTech and ICT; recent Bahraini delegations to India have focussed on bringing Indian technology companies, scale-ups and startups, and investments to those sectors of its rapidly diversifying economy.

In December 2018, an EDB-led economic delegation to Maharashtra saw the signing of an agreement to create a framework for cooperation in FinTech innovation and knowledge-exchange.

Now, Indian cryptocurrency exchange Belfrics is one of several FinTechs testing september 2020 | 51

innovative technologies in Bahrain’s regulatory sandbox. In the first half of 2019 alone, eight new projects in Bahrain’s ICT sector were started by Indian companies – more than any other country – bringing investments worth US $3,117,405.

Looking at the current changing environment, what’s most critical to your mind for Bahraini logistics firms to succeed? What factors boosts their operational excellence?

First and foremost, ‘time to market’ and ‘cost to market’ are the two main variables of utmost importance for logistics companies to succeed and remain competitive.

With regard to cost to market, a Cost of Doing Business study conducted by KPMG in 2019, found that logistics businesses stand to benefit from 37 per cent to 43 per cent in annual operating cost savings when operating in Bahrain, compared to other jurisdictions in the region. Maintaining this competitive edge is critical to Bahrain.

With regard to time to market, I would say that just as important as advanced technology, is close collaboration with other countries. To combine both of these in 2018, Bahrain launched the Authorised Economic Operator (AEO) programme. This initiative is considered to be one of the most important tools for facilitating international trade and enhancing customs procedures by the World Customs Organisation. It brings Bahrain in line with global supply chain security standards.

Accordingly, Bahrain signed a mutual recognition agreement with the Kingdom of Saudi Arabia in January 2020 that facilitates close cooperation on the flow of goods between the two countries.

The agreement allows AEO-certified AEO exporters (manufacurers or logistics companies) in both countries to leverage a fast-track lane on the King Fahad Causeway (provided that certain criteria and conditions are met). The AEO programme further strengthens Bahrain’s hinterland connectivity, lead times and access to the largest market in the GCC. As far as Bahrain Airport is concerned, plans have already been announced by Bahrain Airport Company to develop a US$ 50 million new cargo and logistics area, which will be situated on the northern apron of the airport to cater 52 |

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to the growing needs of existing tenants as well as new business in the field of courier and express logistics, contract logistics, e-commerce fulfilment centers and value added logistics operations.

What is the main goal of Bahrain and where do you see yourself in the years to come?

Our ambition is to serve as the regional manufacturing, distribution and operational hub of choice for those businesses seeking access to the fast-growing US $1.5 trillion GCC markets and beyond.

In fact, Bahrain has served as a regional trading hub linking East and West for millennia.

Today, our airport’s US$1.1 billion modernisation programme is creating new opportunities for logistics and ecommerce companies seeking distribution and fulfilment centers/hubs with quick, cost-effective access to GCC and global markets.

Plans have already been announced by Bahrain Airport Company to develop a US$ 50 million new cargo and logistics area.

Our ambition is to serve as the regional manufacturing, distribution and operational hub of choice for those businesses seeking access to the fast-growing US $1.5 trillion GCC markets and beyond.

Owing to our geographical location and connectivity, the Kingdom has become home to all the major logistics players – including Agility, UPS, FedEx, and Aramex – and has been the primary distribution hub for DHL in the region, as well as acting as its Middle East and North Africa HQ for over 40 years now.

A number of major, global manufacturers have also chosen Bahrain for their regional hub, including Mondelez, Arla Foods, Reckitt Benckiser, and Olayan

Kimberly Clark. It is here that we want to continue our growth.

The economic situation of Bahrain and GCC countries will be in better shape by 2021, says reports. As such, what are the credit-stimulus programs launched by the Kingdom to sail through this difficult hour?

The government has introduced unprecedented economic stimulus packages, to bolster the economy while protecting small businesses and vulnerable citizens, including US $11.4 billion of economic support for local businesses and residents impacted by the coronavirus.

This figure represents almost 30 per cent of the national GDP. The Government has been taking a targeted approach to create sustainable growth by providing ongoing financial support and concessions to around 10,000 most adversely affected sectors. Several businesses across the Kingdom will benefit from the latest decision to fund 50 per cent of private sector salaries for Bahraini employees. A measure taken to prevent unemployment and provide ongoing fiscal stimulation, the move will help protect an estimated 60,000 jobs.

The boost, which is to be extended by the national unemployment insurance fund, has been targeted towards those industries most severely impacted

by COVID-19, vis-à-vis travel and aviation, healthcare and media.

In terms of growth areas, we have seen a surge in the uptake of financial technologies, particularly with regard to e-commerce, digital banking and cryptocurrencies, as citizens stay home adhering to quarantine and social distancing measures. Electronic fund transfer systems such as Fawri and Fawri+ have experienced a major surge in use as customers move away from physical services.

Additionally, the demand for FMCG globally, as well as in the region has witnessed a noticeable surge during these extraordinary times. Global players operating in Bahrain have all been reporting positive growth in uptake from their factories in the Kingdom.

Many of the manufacturing companies are also adopting smart technologies to not only optimise operations and efficiency, but also as a means to introduce safer, more prudent measures to manage risk associated with the crisis.

Hi-tech Logistics Infrastructure

Andreas Bullwinkel

The German port of Wilhelmshaven has an advantage over its competitors for the fact that it is a deep-water container terminal that could handle transhipments from the next generation of giant ships. The unparalleled nautical conditions at the port make fast and safe operational handling possible at all times.

The port is also the gateway for a significant amount of Indian trade with Germany.

Andreas Bullwinkel, Chairman, Container Terminal Wilhelmshaven JadeWeserPortMarketing GmbH & Co KG, in an exclusive interaction with Upamanyu Borah informs on how the port has set the course for future growth.

India is an important trade destination, and we see significant areas of business opportunity here

I

s it perfectly justified to consider JadeWeserPort Wilhelmshaven as Germany’s next gateway to the world in terms of its strategic location and throughput?

Being the third-largest port in Germany, JadeWeserPort Wilhelmshaven enjoys several advantages. On the nautical side, the port boasts very short channel navigation times, which offer significant time and cost savings potential for shipping companies. Talking about the land 54 |

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side, it is possible to establish a company here directly alongside the port at the 160-hectare of the available freight village area. A warehouse, for instance, can be built around 800 metres from the pier, to, therefore, leverage the very short journey times.

Additionally, the port has excellent hinterland connections; the routes in and out of the port are always available.

In other ports, they have to be booked a long time in advance. In the case of some

unforeseen circumstances, it may take up to several weeks at these ports before a space is available again.

How are you positioned in terms of infrastructure with regard to the fact that the port is capable of handling some of the largest container vessels in the world?

Europe’s leading shipping line independent container terminal operator, EUROGATE manages, operates, devel-

What are the key determinants that contribute in facilitating JadeWeserPort Wilhelmshaven to efficiently handle the movement of containers and various other terminal-related operations?

JadeWeserPort Wilhelmshaven is characterised by its location directly on the shipping channel. Because of a depth of 18 metres, ultra-large container vessels (ULCVs) can call at the port at all times, 24/7, independently of tide levels.

The quay length of 1,725 metres offers sufficient room to accommodate four ULCV berths equipped with 16 container gantry cranes. These cranes are capable of spanning 25 rows of containers on deck, enabling them to handle the newest generation of container vessels without limitations.

The multimodal railway located directly adjacent to the terminal site has six loading sidings, while the 16-track marshalling yard allows the fast and easy assembling and shunting of the trains.

Also functional and highly advanced, the two Out of Gauge Gates with a maximum width of 4 or 8 metres enables all kinds and sizes of project shipments.

©Wilhelmshaven JadeWeserPort

ops and maintains the 1.3 million m2 container terminal at JadeWeserPort Wilhelmshaven.

Additionally, thanks to the world’s biggest cranes, even container ships beyond 20,000 twenty-foot equivalent units (TEUs) smoothly function at the terminal, supported by a team of well-trained highly qualified professionals who ensure reliable and stable operations. The terminal also has a direct link to the A29 motorway, so that truck transports do not have to contend with congested traffic intersections. Besides, an intermodal railway terminal directly adjacent to the terminal site provides connections to the European rail network. For instance, one of the major industrial centers of Europe, the Rhine-Rhur region can be reached in a short time.

Going forward, the current consolidation process among the shipping lines and the resulting processes of change in the market provide EUROGATE with the opportunity in Wilhelmshaven to establish itself as a first-class container terminal. EUROGATE is, therefore, building up its future capabilities in a difficult competitive environment.

What potential does Wilhelmshaven Freight Village offer to JadeWeserPort Wilhelmshaven in terms of business, leading to port development?

Currently, we are in the process of developing the freight village. At the same time, we are focussing very much on the organisations in the port space— trading companies, service providers, thirdparty logistics companies, and forwarders who are doing business out of here, helping the port to grow.

Apart from that, we are also trying to attract cargo booking entities to our port to use existing services and facilities.

JadeWeserPort Wilhelmshaven is characterised by its location directly on the shipping channel. Because of a depth of 18 metres, ultra-large container vessels (ULCVs) can call at the port at all times, 24/7, independently of tide levels.

How efficiently has JadeWeserPort Wilhelmshaven been able to offer shipping lines an excellent platform to serve the Indian subcontinent as well as seamless transhipment options?

We are well-connected to the Indian subcontinent through Maersk Line’s ME1 Service, Safmarine and all their subsidiaries like Hamburg. It’s a weekly service to the ports of Nhava Sheva and Mundra with only 28 days transit time.

From the East Coast of India, cargo connects on AE7 via Colombo to reach Wilhelmshaven.

Altogether, JadeWeserPort Wilhelmshaven presents itself as a transhipment and feeder hub for container traffic to Scandinavia, the Baltic and Russia and the perfect place to tranship wagonload traffic to the European hinterland as it has optimum connections via the motorway and to the European rail network via the intermodal station.

From a global trade perspective, how important is India for JadeWeserPort Wilhelmshaven?

We consider India as an important trade destination and see significant areas of business opportunity as our current clients grow in the region. This is why we are here waving our flag, making the stakeholders and the market aware that there is an alternative available for the country’s well-established ports.

Having said that, Wilhelmshaven certainly has some advantages to offer, for example, fast-moving cargo to and from the hinterland into the port without any restrictions.

Going forward, we would like to see additional service between India and Germany, which can be made possible if other container shipping associations like THE Alliance that include HapagLloyd, Ocean Express Network (ONE) and Yangming, would consider Wilhelmshaven into their portfolio.

What is your vision for JadeWeserPort Wilhelmshaven in the long-term?

We would continue to concentrate on container vessels and strategically look at the prospects of developing the port for the future so as to effectively handle september 2020 | 55

©Wilhelmshaven JadeWeserPort

these ships which are turning super king-size from a giant-size with every passing year.

At present, we do not have any plans to expand the size and capabilities of the port. One reason is we still have a lot of capacity to accommodate; at present, we are only at 20 per cent of our total capacity. The other reason is uncertainty on how big these ships would continue to grow. Would it be a 26,000 TUEs vessel of 430 metres length and 70 metres width or a 30,000 TUEs vessel of 460 metres length and 100 metres width, nobody knows.

Sometimes, it’s not only about investing money but waiting and watching the market as long as possible and then reacting to it. Besides, we are not in a hurry because we still have the potential to grow.

Nevertheless, we have started conducting a permanent market study in order to be prepared and informed about the right time to start with the concrete plans for an extension of the port.

What about the railway network?

Does it need to improve?

Well, we don’t have any problems with access to free slots on the trains, which is actually one of our advantages. Currently, 23 railway operators are calling our port per week with 3-5 trains operating daily to and from the port. Also, we are well-connected to more than 100 destinations within Germany. Now, this is a good beginning.

For the current three main liner services which call our port from China, India and the Middle East, the railway service has been sufficient and adequate to meet transportation re56 |

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quirements. We are not receiving any queries from the shipping parties.

However, the only requirement that we await is the electrification of tracks and for which we had been urging state-owned German Railway for a long time. Finally, they have promised and are on track to accomplish the same by 2022.

JadeWeserPort Wilhelmshaven signed a marketing agreement with APSEZ to collaborate in areas that will help promote trade and container shipping business between the two entities.

What kind of collaboration mode are you working with Adani Ports & Special Economic Zones (APSEZ)?

Last year in June, JadeWeserPort Wilhelmshaven signed a marketing agreement with APSEZ to collaborate in areas that will help promote trade and container shipping business between the two entities. Under the agreement, we are continuing to conduct marketing activities such as campaigns and roadshow events in India together with APSEZ. They are also invited to do the same with us in Germany, promoting their portfolio and reaching out to one of the leading European markets for cross-border trade.

We feel really grateful to have such a strong and well-reputed partner here on our side.

Will you break the one million TEU mark this year?

This year, it would be very difficult. In fact, this year, it is nearly impossible for any port to cross such a record mark.

In the next 3-4 years though, we are confident to be able to achieve such a feat. Recently, we signed a leasehold contract for 20 hectares in the Wilhelmshaven Freight Village with China Logistics, one of China’s largest logistics companies, and this will certainly help us to reach the goal sooner. The contract will see the construction of the “China Logistics – Wilhelmshaven Hub” offering a total of 60,000 m 2 of hall space plus 110,000 m2 of open storage area for handling Chinese goods.

The project has an overall investment volume of around Euro 100 million.

The long-term goal of the Chinese partner is to raise a turnover of around 100,000 TEUs per annum.

How have the investments been since origination?

We had investments amounting to Euro 650 million poured into the development of the overall port infrastructure, and Euro 350 million by terminal operator EUROGATE in the construction of superstructures including 16 container bridges.

How has JadeWeserPort Wilhelmshaven contributed to the economic development of the regions it serves?

JadeWeserPort Wil helmshaven is owned by the Government of Lower Saxony. The port, following its successful establishment, has acted as a catalyst for economic development by creating jobs for the local population.

Additionally, the government has offered large sums of money as investments to the port to improve the economic viability of the region and ensure additional growth in forms of new service markets.

Recently, we had the chance to reevaluate how many jobs have been created so far in the area since the establishment of the port, and we were surprised to know that 1100 people are currently employed directly or indirectly at the port. This is a collective outcome of the efforts of the port and motivation of the government to invest in it.

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tomas rais

H

ow are you reacting and responding to the pandemic?

The current situation faced by the world has almost no equivalent. Of course, there have been unwanted events witnessed in the past, but the current level of measures to control the spread of the disease is unprecedented.

With the relaxation offered for industries to operate, we have to cautiously weigh our options to continue with prolonged pause, or to step in and set new standards of operations where life and livelihood have equal priorities. Together

with our medical team, we have setup a 60 point detailed SOP which defines our new way of operations - with built in social distancing, hygiene measures and a strict protocol to keep track of anyone who might display any symptoms of the disease. We are also ensuring there is lot of awareness that is communicated to everyone we are working with including the employees of our suppliers as that is the key to a rapid reset.

Not only auto industry but other business ventures too are still holding on to see what will be the long-term repercussions of this pandemic. One cannot just assume that things will get back to normal suddenly in 2021. The auto industry had started witnessing a decline since 2018, and over the next few months, we have to continue to watch out for signs of recovery.

What are the practical challenges you are facing with right now and what have you adopted as the correct solutions to keep sales strong during tough times?

Challenges like business continuity, liquidity, cost overruns, shrinking market demand are putting pressure on revenue. From a logistics perspective, we cannot permit interruption of supplies to ensure continuity of production. This means planning mater ia l dispatc hes with suppliers in advance to take into account delays that may be faced due to en-route checks or interstate travel restrictions.

Working to get better visibility to supplier performance can be very beneficial to predicting potential supply disruptions and working proactively to alleviate the impact. Companies that aren’t electronically connected to key direct suppliers and don’t have real time data on the inbound flow of products and materials, should move quickly to implement programs to access data and enhance management and decision making capabilities. Tomas Rais, Head of Logistics, Škoda Auto Volkswagen India in an exclusive interview with Ritika Arora Bhola, talks about reorienting programming to rapidly support firm capacity, supply chain linkages, and ensure production continuity.

As an industry, the only way to stay relevant in the business is to be agile to the changes and be prepared to be flexible in response to whatever new situation that we may come to face. We also had to review investment decision, redrafted contracts with providers, prioritised spending, and checked the entire value chain and costs to look for optimisation.

What do you make of the stimulus package announced by the government? Any other measures you think the government should implement to strengthen the Indian auto industry?

Supply chain design has measures in place to keep business afloat 58 |

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The stimulus package announced by the government is a welcome move as it will give right boost to demand and growth of the economy. While it’s primarily a mix of fiscal and monetary support, the overall sentiment towards Ease of Doing Business processes and fundamental reforms is the highlight of the work done by the government.

Continued support by the government will only ensure that the right skills and technology will benefit in the development of a stronger component ecosystem which is less dependent on import. While that will not happen overnight, the critical volume required for such an industry to flourish is available in India and hopefully we will see more fulfillment in that direction.

How helpful has been the modernisation of Skoda’s manufacturing with inclusion of advanced robotics and automation?

We employ high level of automation in production, ensuring an adequate balance of modernisation of the manufacturing and logistics processes without taking away the critical human touch necessary for optimal quality. We have rolled out the Volkswagen Audi Seat Skoda (VASS) communication standard in our shops that allow for easy maintenance, standardised communication protocols and interfaces. High precision processes like welded and glued joints are over 60 per cent automated as this allows stable production process, more uniform and symmetrical dimensions of car bodies. We have also increased automation in the paint shop in both sealing and panting areas that significantly reduces material consumption thus bringing environmental benefits.

By collecting data from automated stations we have the opportunity to analyse potential risks in part nonconformities, monitor material consumption, keep data for every vehicle manufactured, apply predictive maintenance of our equipment, and potentially reduce the requirements for ad hoc transportation of extra parts or spares.

Do you think technology helps in reducing significant turnaround time and freight cost? What are the key initiatives that Skoda has spearheaded as part of the larger industry?

Non-availability of information and data blindness were major factors affecting turnaround time. This leads to inefficiencies in value chain thus increasing the freight cost. Technology has helped improve the efficiency of maritime and

Technology has helped improve the efficiency of maritime and air traffic turnaround time which has helped reduce the freight cost for global supply chains.

air traffic turnaround time which has helped reduce the freight cost for global supply chains.

Electronic exchange of information has infused transparency, better visibility and reliability in supply chain. Combined with tracking technologies such as GPS, resource planning has become more precise and thus improved overall efficiency of supply chains, benefits of which reflects in terms of turnaround time and freight cost.

Automation of processes in material flow chain is also increasing production efficiency and helping us reduce costs. Use of non-conventional energy driven vehicles for transportation are being evaluated to reduce carbon foot print and fulfill our operational vision of achieving carbon neutrality by 2025.

The need is to be continuously skilled, and it is a key framework for all our employees.

With the pandemic situation in purview, how are you looking to reskill people to fill up the key roles?

We have made sure that the skillset of our employees are updated and upgraded amidst the pandemic. Our HR has taken many initiatives like online training, skill development sessions, technological support to help our employees’ practice remote working.

How have you forged a supply chain that can withstand and recover from severe shocks with little insight on proactively developing resiliency?

Over the last two decades, global supply chain has matured and has become leaner. While the main drivers of disruptions are known, supply chain design has measures in place to keep business afloat. We are able to tap into a complex global network of suppliers to cater to the best quality products, while offering ourselves the cost benefit of volume sourcing.

While pandemic as the current one can affect our manufacturing operations, a geo singular event can impact supply chain and hence the advantage is to retain a plan ‘B’ for every scenario.

This has been our approach to ensure production continuity and while we also practice high-level of localisation going up to 95 per cent for the upcoming MQB A0 products as part of the India 2.0 project, as supply chain experts, we have provision for a wide range of contingency, including accepting disruptions as a part of business temporarily and devise ways to minimise it. september 2020 | 59

C P Jayakrishnan

We continue to operate at encouraging pace

Angre Port, the most sheltered all-weather port in the Konkan region, has been bucking the trend amid COVID-19 by efficiently handling 138,000 tonnes of different types of cargo from March till June. Recently, the port completed its first and highly successful year of operations during which it handled more than 500,000 tonnes of cargo, made possible due to the several capabilities the port has built to enable hassle-free movement and storage for all types of cargo.

C P Jayakrishnan, Chief Executive Officer, Angré Port in an exclusive interview with Ritika Arora Bhola, informs more on the port’s role as an end-to-end logistics services facilitator, ensuring timely movement of cargo and helping optimise material handling costs, as they continue to support over two dozen large and small local businesses across the state of Maharashtra.

W

hat’s the current situation at AngréPort following the COVID-19 lockdown?

How are you reacting and responding to the scenarios?

At the start of the outbreak, we were quick to enable business continuity planning to optimise our fixed cost base to the tune of 40 per cent during the lockdown, with no effect on service levels to clients.

The entire business development, procurement, accounting, and legal teams have been set up with the requisite collaboration tools to work from home across multiple geographies. This has yielded success to the extent that we are still continuing with the remote working model as much as possible.

Additionally, the downtime has allowed the otherwise busy port staff to undergo online trainings, evaluate their effectiveness over the past year, and define targets, objectives and key responsibilities for the coming season.

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We continue to operate at encouraging pace, largely handling essential commodities. We expect cargo movement through the port to pick up as the country continues to unlock markets in a phased manner.

How are you managing your logistics network and supply chain operations in terms of creating value for customers?

From March to June 2020, Angré Port has handled 138,000 tonnes of different types of cargo. The port has been supporting over 20 large and small local businesses across the state of Maharashtra, ranging from sugar, cement, manufacturing and industry raw materials.

We have always been working as an end-to-end port operator for customers, ensuring timely and safe movement of their cargo, and helping them optimise their material handling cost. Our performance in H1 2020 has been good, with 241,000 MT of cargo being handled. We now aim to achieve 400,000 MT of cargo movement in H2 2020, considering postCOVID forecasts.

Kindly elaborate on the types of cargo being moved both nationally and internationally since lockdowns started.

We are currently handling bulk, breakbulk, steel and liquid cargo. Sugar and cement raw materials were major commodities that we handled just before the COVID-19 outbreak. Since monsoons started, sugar handling has stopped.

The next season will commence from September, again depending on the rains. Cement sales have also taken a hit, forcing manufacturers to slow down production. All this, in turn, has impacted port volumes.

How is the port handling pressure during these times of emergency?

Conversely, what do you see as the biggest untapped opportunities?

Angré Port, like any other trade establishment is going through challenges that it has never envisaged. This is also a time when we could introspect at our internal activities like fixed costs, insurance, manpower training, operational optimisation, etc. in more detail. As such, we have used this opportunity to fine tune our internal processes and SOPs.

Our performance in H1 2020 has been good, with 241,000 MT of cargo being handled. We now aim to achieve 400,000 MT of cargo movement in H2 2020, considering postCOVID forecasts.

We feel supply chain management and costs are going to be much more significant, than it is already, as items on the risk dashboard for majority of companies. Angré Port could be a partner to such companies in its hinterland and bring the much-needed assurance and stability in the long-term service, price and deliverables.

Ports will no longer be a place where cargo just transits through, but it will evolve to become an integral part of the larger value chain where it will also contribute in a way partnering with clients in areas of cost management.

That said, we are also working with our clients to introduce an integrated logistics solution to their requirements, ultimately taking care of everything from origin to destination.

What you see as the major challenges the global maritime sector is currently facing?

It wasn’t until March that the global shipping sector started to really feel the impact of the COVID-19 pandemic. It was from then that all sectors including shipping, which was hit by slowing demand in goods’ production, exports and oil, tumbled to new lows. The most significant affected are the large crude tankers and bulkers.

China is a major importer of crude oil, usually through VLCCs, so the reduction in economic activity in China had a negative demand effect on crude tankers.

The container sector also significantly relies on China; it too was impacted by the shortfalls. Containers are the most closely linked to economic activities which is down globally.

The container sector is naturally less liquid, but the world has seen a reduction in rates.

I believe the coming months will be increasingly harsh for the global maritime sector, forced to operate in constraints and limited ways. This is not going to be the sole result of the coronavirus pandemic but rather a ripple effect of its spread, the introduction of the 2020 sulphur cap by the International Maritime Organisation (IMO), and the failed implementation of the US-China Phase I trade agreement.

Tell us about the superior infrastructure and technologies installed at the port for supporting efficient supply chain operations– cargo handling and movement.

Angré Port boasts of a robust infrastructure to ensure hassle-free movement and storage for all types of cargo. The september 2020 | 61

ment in economic consumption had a knockon effect on curtailing clients’ sourcing plans for the near-to-medium term.

port, since commencement of its operations, has developed 500,000 square feet of open storage yards for receiving cargo; 200,000 square feet of covered warehousing space; 100,000 square feet of paved open storage yards for handling sensitive cargo; and over 32,000 kilolitre of liquid storage capacity.

The port is well-equipped to provide top-notch marine, cargo and storage facilities, and in-house services that enable clients to enjoy a single-window, end-to-end service from the port right up to their factories or markets. We have moved 80,000 tonnes of cargo during the past year, with the port taking end-toend responsibility for movement of shipments from origin to destination. Services under this model include managing transportation, storage and cargo operations at third party ports, chartering of vessels for coastal cargo movement, and ensuring delivery or pickup within a guaranteed lead time of the required quantity to an operational client location, thereby eliminating client’s storage needs.

Apart from the COVID-19 led lockdown that had an adverse impact on cargo movement, what were the other factors responsible?

The nationwide restrictions imposed on the movement of manpower and goods during the lockdown impacted the smooth movement of cargo to and from the hinterland. We faced shortage of equipment operators and drivers as a sizeable percentage of the on-ground workforce were travelling back home.

The challenge was compounded by uncertainty over the expected duration of the lockdown and the resulting economic slowdown thereafter. Postpone62 |

september 2020

Looking at the current changing environment, what’s most critical to your mind for Angréport to succeed?

We anticipate an upsurge in the demand for pharma and agriculture products, food products, garments, chemicals, once the pandemic is over. The increase in infrastructure spending by the government will result into larger order books for clients in allied sectors, such as the cement industry.

The port, since commencement of its operations, has developed 500,000 square feet of open storage yards for receiving cargo; 200,000 square feet of covered warehousing space; 100,000 square feet of paved open storage yards for handling sensitive cargo; and over 32,000 kilolitre of liquid storage capacity.

Over the medium term, demand will stabilise close to pre-lockdown levels, with increased shipments and greater reliance on ports for quick and efficient handling of cargo. Angré Port is wellpositioned and amply equipped to cater to the increase in demand post-lockdown and remains committed as ever to serving its clients in the best possible manner.

By when do you anticipate the port to achieve pre-COVID levels of business and volumes? How will you strategise to sustain this growth?

Unlike large ports, Angré Port’s customer base is a niche and focussed group of industries in the immediate hinterland. Although it is difficult to put

an exact date to when we will be able to handle cargo to our projected level for this year, we are sure that when the overall economic activity in the region moves ahead from the current slowdown, the demand generated will put in motion the movement of cargo through the port as well.

Our customers have known us for our service and commitment to the deliverables. Even when the outbreak was at its peak, we continued supporting our customers with their daily despatches and movement, as we have the capacity to handle our customers’ requirements efficiently.

We will continue to do that and look for long-term business partners who would want to utilise and subscribe to the port’s advantages and superior infrastructure.

Additionally, we would look to utilising the port’s backup of 280-acre industrial land available for setting up strategic businesses such as mega warehouses, port-based industries, logistics parks, and tank terminals.

The Ministry of Shipping had announced a host of measures for stakeholders across the port sector to boost ocean trade. What are your expectations from the Centre and subsequent suggestions?

When it comes to a private port, there is very little that it can ask as support from the government. However, for trade lanes to be opened sooner and to be more efficient, we request the decision makers to enable them through technology.

We suggest the industry to accept electronically generated trade documentation, we urge moving on to a digital platform where issues of physical documentation like original bill of lading (BL) and final invoice, or payment by cash are taken care of as they are currently slowing down the process and also evidently risking staff to a person-to-person contact.

Also, the stakeholders of the trade industry such as carriers, exporters and importers should be issued a mandate to adopt and use platforms for electronically generated trade documentation. On a wider note, this could be across stakeholders and across nations. Though some of the larger players have developed and moved on to their own systems, the need is greater integration with other third party or government systems.

COVID-19 has exposed the vulnerabilities of complex global supply chains built on lean manufacturing principles.

The impact of China’s lockdown and its dominance in key areas of manufacturing further highlighted the problem with modern supply chains. Vikash Khatri, Founder and CEO, Aviral Consulting, in a brief conversation with Upamanyu Borah, elaborates the transition to a new model for supply chains which will be underpinned by a decentralisation of manufacturing capacity and wholesale digitisation of the paperwork that accompanies global trade.

vikash khatri

W

hat do you feel are the biggest challenges companies in the supply chain space face and how is risk monitored and overcome?

Currently, the vulnerability of supply chains along with the unavailability of manpower is the biggest challenge the industry is facing. The historical timeseries analysis of movement and inventory is no longer valid; the ability of supply chains to consume internal and hyper local data on a real-time basis has accelerated. Traditionally, all supply chains were designed for cost efficiency, but in the new normal, this objective is being superseded with the KPI of serviceability. The supremacy of planning function is now being challenged with the function of supply chain visibility/ control tower to monitor the risk and take real-time tactical decisions.

Even if we exclude the unforeseen circumstances due to COVID, there are some perpetual challenges for supply chain functions.

One of biggest challenge has been to create a balance between lowest possible cost and flexibility of capacity as per demand variation. On one side of the supply chain, increasing expectations of customers is posing challenge.

Another challenge is the lack of talent. Challenges of talent exist on white collar and blue collar.

Besides, poor level of standardisation across the supply chain is also a challenge, leading to inefficiency, rigidity, weak portability, and ultimately increased cost.

As a consultancy, there is a high value placed on empowering companies to make better decisions, how important is keeping up with the latest trends to ensure you are delivering exactly what your customers need?

Supply chain consulting requires the ability to assimilate and operate in either presence or absence of specific data sets. A multivariate optimisation problem is both a design as well as a computational challenge.

Consulting today has undergone transformation; it has moved away from 64 |

september 2020

We would see a movement towards localisation just advisory services based on past knowledge from engagements with clients. Today, most clients expect the advisor to be part of the journey and hence looking for recommendations to be executed for them. In such a scenario, we need to remain domain focussed and connected with the industry to keep on updating our knowledge base. However, the satisfaction of daily execution and results is what drives this niche practice of consulting across our clients.

In order to assess inefficiencies of logistics in any organisation, what practices or tools are available?

In order to assess and optimise inefficiencies, there are multiple simulationbased tools but none provide one stop holistic assessment of logistics efficiency.

At Aviral, we have introduced ‘Logistics Audit’- a comprehensive audit of processes, practices, and network. The objective is to examine competitiveness and robustness of logistics operations, efficiency and cost. Optimisation is the next step to it. This activity also provides recommendations and guidelines on logistics management to improve overall efficiency.

As industries restart with constrained liquidity and cost pressures, how can organisations drive initiatives to cut supply chain complexity?

In the past few months, we have witnessed a change in demand patterns, challenges in maintaining supplies, liquidity, and pressure of cost optimisation. Across the world, supply chains have connected source of lowest cost manufacturing to the centers of consumption.

The crisis has exposed the risks and vulnerabilities of the cross-border supply chain with single-source dependence, which is now expected to realign.

As we redesign/redirect the global supply chain, we would see a movement towards localisation, distributed manufacturing, and the cross-border supply chain problem will morph into smaller localised problems like links in a chain.

What do you envision for the future of the Indian supply chain industry to look like?

Maturity of supply chain industry depends on infrastructure, technology and volumes to support sustainability. Almost all the indications on these parameters are favourable for India. With rapid investments by the government in rail freight corridors, airports, expressways, and adoption of more digitalisation, the future for supply chain industry is very bright. Additionally, there will be manifold opportunities in the market with the shifting of global supply chains from China.

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special feature

India as global

production hub

it's time for action ‘Respond, Recover, Thrive’ captures the spirit of the Indian government’s reactions to the pandemic, the economy and building for the future. This was evident in the announcements in mid-May to revive and restructure India’s economy, with multiple policies that will find common cause due to possible reconfiguring of the global supply chain by multinationals. The two are linked and is likely to become more so.

Simply put, it makes sense for India’s domestic market of 1.32 billion consumers to be viewed as an opportunity.

Upamanyu Borah 66 |

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T

he COVID-19 pandemic has exposed the fault lines in global trade and its financial roadmap, dislocating global manufacturing value chains, almost irrevocably. This sudden disruption has raised a fervent clamour to diversify the existing global supply chain.

First, multinationals are looking at ‘China + 1’, effectively hedging against a primary location. Second, and less likely, is an alternative to China. Finally, companies want locations with big local markets and low cost so they can scale up and produce for both, the domestic market and exports.

To leverage this, India would have to accelerate its efforts to bolster its manufacturing capabilities – a weak spot for India’s economy in recent decades but a tremendous opportunity none-

special feature theless. Equally, this is a market that global manufacturers need to target for their long-term viability in a riskier world.

“The most basic rule is to avoid manufacturing or sourcing everything from one location or from one company. This is not simply about reducing reliance on China or any other single country, but also evaluating the upstream sources to lessen the risk of disruption,” says Chandranath Dey, Head of Business Development, Industrial Operations and Consulting at JLL. “A shift from China to Southeast Asia, India or Mexico for example – often referred to ‘China + 1’ or ‘China + 2’ - will require companies to re-evaluate their domestic distribution networks to ensure they are aligned. In some cases, taking a regional approach may be appropriate, with goods sourced regionally to supply demand in the same region – ‘Regionalisation’ of the supply chain. India ranks very high on the list in the regionalisation battle and can come out winners in near to medium term given the following advantages.” (Refer Image I & II) Of the total world exports worth $19 trillion in 2019, China contributed 13.3 per cent while India’s share was a minuscule 1.7 per cent. Depolarisation presents an opportunity for India to become a $1-trillion manufacturing gross value add (GVA) by 2025 by being an alternative to China in the world exports basket and indigenisation of supply chains for domestic consumption.

Advantage India Economy and Ease of Doing Business  GDP of India has expanded by 2.57 times from 2004-05 to 2018-19  India EoDB improvement: Jumped 79 positions to 63 in 2019 from 142 in 2015  Starting a business: 28.4 days (in 2015) to 18 days (in 2019)  IEM implemented/Actual implemented: US$ 105 bn (Apr, 2015 – Oct, 2019) more than doubled from US$ 39 Bn (2010 – 2014)

Image I Consumption Powerhouse  With 18% of world population, India is among the largest consumer market in the world. By 2030, India will be 3rd largest (currently 6th largest) consumers of the world with US$ 6 tn consumption expenditure

Infrastructure  World’s 2nd Largest Network of Roads & 4th Largest Rail Network  7,500 kms of coastline with 200+ ports in India for EXIM Trade.  US$ 1.4 tn investment in infrastructure in the next 5 years which is equivalent to total GDP of Indonesia and Thailand combined (2018)  One of the fastest growing in terms of ‘internet penetration’ in the world: 44X growth in last 5 years (2015-19) Established Sectoral Dominance Processing Hub of the world.

Natural Resources: India is home to  Chemical - India is 3rd largest world’s 3rd largest iron ore reserves producer of chemicals in Asia. and world’s largest copper and  Automobile - India is the largest thorium reserves  Electronics: 2nd largest mobile manufactures (by volume) of tractors, three wheelers and two handset manufacturing nation in the wheelers in the world. 4th largest car world  Start-up: Home to world’s 3rd largest manufacturer in the world and 2nd largest bus manufacturer globally. start-up ecosystem  Pharma: Largest vaccine producer  R&D: Home to 1,140+ R&D centers and largest producers of generic for MNC (Brain capital of the world)  Food-processing: Largest producer medicines globally. 3rd largest pharma industry by volume in the of milk, vegetables and fruits in the world world. Potential to be the Food 

Flex-Manufacturing  For manufacturing industries, apart from acquisition of land and doing construction of building, now there are Flex-manufacturing spaces or built spaces on lease which can be used for light manufacturing and assembly lines.

Image II

september 2020 | 67

special feature The clear differentiator for India, as it was for China two decades ago, is its large domestic market. It is a pathway to local scale, climbing the competitive value chain, as well as building an export base. This is the India that is on global companies’ radar as they consider de-risking their manufacturing in an evolving new world order. There appear to be three strategies, and India is central in each.

The outcome is long-term employment and opportunities that will, in turn, strengthen the economy qualitatively and commercially.

India, with its current manufacturing scale, is perfectly poised to take on this gauntlet. The country has a sizeable manufacturing GVA contributing 15 per cent to the GDP. Its large productive workforce, competitive cost of operations and adapting to new technologies puts the country in a very good stead.

It’s just that India further need to build its critical logistics infrastructure like highways, ports, airports, etc. in order to become the ideal alternate manufacturing destination for the world.

In India, the potential of the logistics sector is such that it can easily chart out the country’s success story, albeit if tapped in the right way. The cost of logistics accrued is high for the Indian economy even though labour costs are relatively cheaper. A look at logistic spends reveals that India’s logistics sector accounts for 13 per cent of the GDP – higher than that in markets like US (9 per cent) and Europe (10 per cent) but lower than that in China (18 per cent). It’s clear that a concerted effort to decrease logistics cost is an important aspect to increase the competitiveness of the Indian economy. According to industry estimates, India loses approximately $45 billion in terms of GDP every year due to inefficiencies of its logistics network.

Moreover, the 2.5 times increase in

68 |

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Chandranath Dey Head- Business Development, Industrial Operations and Consulting, JLL

Government of India has been very pro-active in understanding the requirement of policy support in boosting the manufacturing and supply chain advantage of India. The policy changes that are being brought in now are industry-friendly as these are being discussed with industry players and various stakeholders to understand the lacunae and bridging the gaps. freight traffic, which is expected in the next decade, is bound to further strain the country’s inadequate infrastructure.

Although hurdles exist before the country can scale up to international competitiveness and efficiency, the forecast for the future looks hopeful and bright. Increased investment in infrastructure, last-mile connectivity, and emerging technologies are streamlining the logistics landscape in India. It has been awarded infrastructure status which has made it easier for investment inflows and has become a major growth driver of the logistics industry. Setting up of a logistics division under Department of Commerce, GST implementation, introduction of E-way Bill, development of dedicated freight corridors and logistics parks, technology upgrades are also major moves to upgrade the logistics landscape.

Online platforms have increased competition and lowered freight costs with real-time data availability and a transparent value chain. Aggregators are on the rise in the Indian logistics market, given the need for low entry barriers and less capital investment compared to setting up of an asset-based business model. It has now become all the more important for logistics service

providers to innovate and adapt to the transforming logistics landscape.

Further, manufacturing in India holds the potential to contribute up to 25–30 per cent of the GDP by 2025 which will drive the growth of the warehousing segment in India.

“With the rapidly evolving technology and increasing demand in e-commerce, manufacturing across sectors will boost eventually leading to an exponential growth in warehousing and logistics sector. The lockdown restriction will further propel the use of automation, robotics and digitised operations in warehouses and increase the use of ecommerce channels moving forward,” believes Anshuman Magazine, Chairman and CEO (ISMEA), CBRE. “We are confident that once COVID-19 situation normalises, the market dynamics will change. The global impact could potentially result into delayed decision-making, curtailed capital expenditures, disrupted global supply chain, thereby slowing down portfolio decisions in the short term. From a longterm perspective, we expect the demand to remain stable, with manufacturers looking at expanding their footprint in the market, once the situation is contained,” says Anshuman.

special feature Here and Now

Prime Minister Narendra Modi on May 12 while addressing the nation amid the ongoing third phase of lockdown said that the state of the world today teaches us that an ‘Atmanirbhar Bharat’ – ‘selfdependent India’ is the only path, as he announced a new economic scheme called ‘Aatmanirbhar Bharat Abhiyaan’ under which a `20 lakh crore economic package was sanctioned to aid the country out of the coronavirus crisis by making it self-reliant.

The call for Aatmnirbharta is to ensure India’s position as a key part ic ipa nt i n globa l supply c ha i n s.

Through building domestic capacities at home, the country should intend to contribute to mitigating disruptions in global markets.

It is therefore important to identify products and commodities where India has the ability or potential to expand domestic production and enhance global availability. True, we cannot make everything – but we can certainly make many, many more things than we currently do.

Government Initiatives such as Make in India have already been aimed at boosting manufacturing capabilities, although experts predict that these initiatives will take a number of years to propel India to a leading position on the international manufacturing stage.

However, India’s aspirations have been whetted by its improving EoDB rankings, but more needs to be done.

Of the total world exports worth $19 trillion in 2019, China contributed 13.3% while India’s share was a minuscule 1.7%.

Private sector participation has been given a big push in many sectors including coal, minerals, defence production, civil aviation, power distribution, social infrastructure, space and atomic energy.

New Public Sector Enterprise policy will be a significant step in enabling private participation in a greater number of sec-

tors. Over the years, we may expect to see private players running trains on certain routes and modernising the country’s railway stations.

“The Indian government is making all-out attempt to attract foreign firms that are looking at shifting their manufacturing base to India. In a major push to domestic manufacturing, the government has slashed the corporate tax rates of new manufacturing companies to 15 per cent (excluding Cess and Surcharge), the lowest in South East Asia. It has also identified large sized land parcels across several states in the country that could potentially be offered to new manufacturing entrants,” says Srinivas Nanjundaswamy, Managing Director, Industrial and Logistics, Savills India.

Chandranath specially mentions reduction of corporate tax rates -- for new manufacturing units operationalising before March 31, 2023 -- as a vital step. “At 17.16%, India is now the most competitive tax structure for new manufacturing among MITI-V countries (Malaysia, Indonesia, Thailand, India and Vietnam).”

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special feature

Image III Policy Code

Name of Policy

Sector / Department

Announcement Date

PORT

Major Port Authorities Bill, 2020

Ministry of State for Shipping

12/03/2020

SPECS

Scheme for Promotion of Manufacturing of Components and Semiconductors

Electronics System Design and Manufacturing

1/04/2020

EMC 2.0

Modified Electronics Manufacturing Clusters Scheme Electronics System Design and Manufacturing

1/04/2020

PLI-ESDM

Production Linked Incentive Scheme for Large Scale Electronics Manufacturing

1/04/2020

PLI-MD

Production Linked Incentive Scheme for promoting Department of Pharmaceuticals 28/05/2020 Domestic Manufacturing of Medical Devices

MDP

Scheme for Promotion of Medical Device Parks

Department of Pharmaceuticals 28/05/2020

MSME

Micro, Small and Medium Enterprises definition

Ministry of MSME

Electronics System Design and Manufacturing

1/06/2020 Source: JLL Industrial Services Research

Government of India has been very pro-active in understanding the requirement of policy support in boosting the manufacturing and supply chain advantage of India, says Chandranath. “More importantly, the policy changes that are being brought in now are industryfriendly as these are being discussed with industry players and various stakeholders to understand the lacunae and bridging the gaps.”

Deeper look into some of the policy changes brought in only since March, 2020, will give a fair idea. (Refer Image III) “The recently launched Garib Kalyan Rojgar Abhiyaan by our honorable Prime Minister is a welcome step for the industry,” says Anshuman. “This will not just generate jobs in the country’s rural areas,but would also give infrastructure development and manufacturing a big boost. The mega employment scheme for migrant workers will go a long way in boosting the initiative to build a ‘self-reliant’ India.”

Also critical would be for India’s private sector to identify, on priority, winnable business segments where the scope of localisation and new export opportunities exists. They will also need to develop a local supplier ecosystem and build in-house capabilities. Additionally, the ecosystem to support these manufacturing needs will also have to be expedited urgently.

The manufacturing sector will need to attract investment, and foster innovation. Policies pertaining to land acquisition to avoid delays, further reforms on taxes, financial incentives to ease liquidity headaches for entrepreneurs are crucial at this stage.

The government needs to immedi70 |

september 2020

Anshuman Magazine Chairman and CEO (ISMEA), CBRE

Combined with the `20,000 crore subordinate debt, these measures will go a long way in providing liquidity to stressed MSMEs and enable them to retain employees as well as kick-start production. The government has also provided MSMEs `50,000 crore through ‘mother fund-daughter fund’ to enable them to expand capacity. ately bring in the right policies that will move manufacturing to India. This is once in a lifetime opportunity for the country to look at import substitution in terms of what China is contributing to global exports and how much of that market could be brought to India.

“Though several incentives have been announced in the recent past to encourage manufacturing of bulk drugs, medical devices and electronic goods, the government needs to introduce policies from a long-term perspective to further improve India’s competitiveness,” explains Srinivas. “For instance, the government should look at further relaxing FDI norms and bring investorfriendly land reforms to boost manufacturing in the country. In the next few months, the government should focus on upgradation of infrastructure, reduction in approval timelines and providing financial incentives/benefits for companies relocating to India.”

However, Chandranath was hopeful that the government is further delving into the policy subject to further relax

bureaucratic red tapes and overhaul the EoDB hurdles by bringing in several initiatives including and not limited to fair assessment on a competitive environment of state’s performance in attracting investments within stipulated time frame.

Focus sector - MSME

In the short term, the focus remains should remain on containing the crisis, and protecting the most vulnerable segments in the country such as micro, small and medium enterprises (MSMEs), start-ups, agriculture, education, farmers, migrant workers and labourers, and small businesses.

Naturally, the focus is always be to look at the domestic market and what needs to be done – build capability, fix the supply chain and logistics processes, etc. and then look in terms of what can be exported that would bring the mega business. But certain sectors that the industry focuses on should also as part of the supply chain bring back MSMEs into the system.

special feature “At present, MSMEs are facing challenges to get back to business due to the impact of prolonged lockdown.

Under such a situation, MSMEs need liquidity support in form of providing f resh loa n s or i nterest wa ivers scheme,” says Srinivas.

MSMEs are the backbone of the Indian economy, and considering that, of the 16 measures under the Prime Minister’s Atmanirbhar Bharat Abhiyaan, six were targeted at them, including providing more funding to small businesses, amending definition, and timely payment of dues by government enterprises.

The measures for MSMEs through guarantees, equity infusion and debt support will incentivise bank lending to MSMEs as well as providing crucial support to stressed entities in the current situation.

“Collateral-free automatic loans worth `3 lakh crore will be provided to these enterprises with a time frame of four years and a 12-month moratorium.

Combined with the `20,000 crore subordinate debt, these measures will go a long way in providing liquidity to stressed MSMEs and enable them to retain em-

ployees as well as kick-start production.

The government has also provided MSMEs `50,000 crore through ‘mother fund-daughter fund’ to enable them to expand capacity,” informs Anshuman.

Although the extended moratorium will simply help small enterprises get their business back to normal, industry experts point out that the measures do little to change the outlook for the MSME sector. There are also concerns on the execution of the government guarantee-backed lending scheme, given that it involves a supply push at a time of subdued demand.

“Some of the other ways that government can support MSMEs could be reducing their power tariffs or making buy back arrangement of the products,” says Srinivas.

Taking a cue from the same, Chandranath suggests, the following policy changes, according to JLL, can ensure that MSMEs are seamlessly brought back into the system:  Offering rent free periods/rental holidays to MSMEs working out of government lands or Industrial Development Corporation (IDC) premises.

 Offering capital influx or soft loans (0% interest) to MSMEs with at least 6-9 months of moratorium period.  Offering tax holidays wherever possible  Increasing percentage of sourcing of government essential and non-essential commodities from MSMEs to provide them immediate opportunities

Re-engineering skills and talent

The idea of promoting ‘Atmanirbhar Bharat’ is to ensure our demographic dividend finds meaningful employment, but our labour conundrum has ensured that in labour-intensive manufacturing, China, Vietnam and other East Asian countries have a massive lead. Our past track record is very uninspiring.

World Ban k’s Logist ics Performance Index observes that the logistics and supply chain sector in emerging economies such as India has a considerable skill gap, especially at the managerial level.

As Indian logistics industry is now adopting the digital technologies and harnessing its potential, clearly evident from the digitalisation of export and

special feature import transactions and popular use of electronic tagging technology, there is a recurrent demand of skilled talents.

Every business today is in need of welltrained and qualified professionals who can manage their inventory and warehouses, keep tracks of accounts, and handle the customs and regulatory compliance, and other processes depending on the skills availability.

This makes it imperative for the government, training institutions, logistics companies and sectoral skill council to build training capacity and offer industry-relevant skills to candidates. Apprenticeship is one of the proven models of training that ensures skilled workforce as per the demands of the industry and emerging job roles. A notable step in this direction was the launch of the ‘First Apprentice’ programme under the National Apprenticeship Promotion Scheme (NAPS) by the Logistics Sector Skill Council in 2017 to boost apprenticeships in the logistics sector; this aims to train 3 lakh youths by 2020.

Similarly, at the industry level, CII has also set up a Centre of Excellence in logistics and supply chain management, with enhancing the competitiveness of the Indian Industry through supplychain and logistics excellence being the objective.

Even the government is keen to equip the youths with the optimal skillset and empower the existing employees in the logistics and supply chain management sector through the specialised training centers. NITI Ayog, the policy think tank of Government of India, has established skill development and training centres all across the country to upskill the job candidates.

While all these initiatives are steps in the right direction, more concerted effort is required of industry, academia, policy-makers and trade-bodies if the supply of skilled logistics resources is to be enhanced.

“Re-skilling plays an important role in bridging the skill gap and paving the wave for next phase of development and manufacturing. In the current situation, re-training and re-skilling will enable the workforce to understand the new ways of doing things that will emerge in the post-COVID era,” considers Anshuman.

Chandranath says over the last few years, the Indian job market has changed in several aspects. “Thus, it becomes 72 |

september 2020

Srinivas Nanjundaswamy Managing Director- Industrial and Logistics, Savills India

The government should look at further relaxing FDI norms and bring investorfriendly land reforms to boost manufacturing in the country. In the next few months, the government should focus on upgradation of infrastructure, reduction in approval timelines and providing financial incentives/benefits for companies relocating to India. important to reap the demographic divided to increase manufacturing competitiveness.”  With the median age of 29 in 2020, India entered the 37-year period of demographic dividend in 2018. India’s working age population is anticipated to expand to almost 1/5th of the global labour force within the next 10 years.  Future Ready Skill Force: 14,602 Industrial Training Institutes (ITI) in India.  Highest Science and Engineering Graduates in the world: 8 mn students enrolled in Science, Technology and Engineering.

In a world where supply chain security, and not just costs, could determine location, India feels like a good long position.

“India has no dearth of white and blue collared workforce which are mostly English speaking and also available at very competitive wages when compared to many developing and developed nations of the world,” states Chandranath.

Srinivas is hopeful that large output of technical graduates and Skill India programmes are likely to further fulfil the growing needs of skilled labour, although he does not see availability of skilled labour as a constraint to improve the manufacturing competitiveness.

“Low labour costs and sustained availability of high skilled workers have continued to provide competitive advantage

to India’s manufacturing industry as compared to the rest of the world.”

What’s on the other side?

India has followed a peculiar growth story over the years. While China focussed on cheap, high volume commodity production, India has seen high growth in the services sector. The present government is hitting the right notes with the Prime Minister personally putting his weight behind the ‘Make in India’ campaign.

Right from creating a single window facility for addressing investor concerns, identifying key manufacturing sectors, to creating a common platform to unite state governments, bureaucracy and corporate leaders; the government seems serious in its intent to elevate India’s EoDB rank internationally.

In a world where supply chain security, and not just costs, could determine location, India feels like a good long position. Our information technology industry has demonstrated this during the pandemic.

The country is blessed with a large labour pool and admirable levels of judicial transparency. It can leverage its territorial position to play a critical role in the global supply chains. Doubling up as a potential high consumption market can keep demand fluctuations in check as well as save up on the logistics costs. Thus, in the post-COVID era, if we can internally strengthen on three fronts: reducing process friction points for inward investment, empowering the workforce with essential knowledge and skills, and developing a supply chain network robust to disasters, India can rightly call itself the next global factory in future.

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Resource optimisation has always been IOLCP’s key focus area

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rganisational background

In today’s technology-driven world, by standardising resource management processes, companies can improve visibility and control, which in turn can lead to significant benefits for their business.

As companies manage a network of projects, they must be able to allocate the resources available in the most efficient way possible, always bearing in mind that they have to achieve the final goal- optimised service levels and enhanced customer satisfaction. Bhupendra Kumar, Head– Logistics, IOL Chemicals & Pharmaceuticals (IOLCP) informs Upamanyu Borah, about the tools and techniques they adopt for resource optimisation which are strictly linked to the systemic vision of their company so as to achieve desired results within a set timeframe.

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Established in 1986, IOLCP is India’s leading generic pharmaceutical company and a major manufacturer in the speciality organic chemical space. The company has a wide presence across various therapeutic categories like pain management, anti-diabetic, anti-hypertensive, anti-convulsants, etc. Its products also cater to key industrial sectors- flexible packaging, paint and lamination, ink, pesticides, etc.

IOLCP’s success is built on the strong pillars of innovation, quality, and dedicated customer service. By incorporating these and other business strengths, the company has boosted its capabilities to maintain the leading edge in the industry and earn the loyalty of customers by responding to their diverse requirements.

IOLCP’s production capabilities are nurtured by pursuing and implementing high standards of excellence. The company’s operations are in compliance with US & EUFDA standards and follows good manufacturing practices at its manufacturing facilities.

Efficient teamwork and strong associations have guided IOLCP to new heights of success. The company has earned the admiration of industry stakeholders, and accolades for its environmental policies have come from the highest levels of authority.

The company has been consistently acknowledged and conferred National Energy Conservation Award (Drug/ Pharma/Chemical sector) multiple times by India’s Ministry of Power.

Best practices for optimising SCM

Building efficiency is the key mantra to benefit operations in the longer term. Right processes, practices and tools can help in achieving the goal of supply chain management.

Organisations should strongly focus on the below parameters in order to succeed:  Setting up a team of experienced supply chain professionals to lead  Structured staffing of experienced people with interpersonal skills  Right technology to improve and streamline processes  Total cost approach instead of the product price  Healthy supplier collaboration  Inventory optimisation  Regular review and verification  Implementing new process trainings  Assessing and addressing social responsibilities

Alignment of demand and supply planning according to market trends analysis helps in real-time decision making and service optimisation.

Task management techniques

As a part of a growing economy, resource optimisation has always been IOLCP’s key focus area and results are achieved by following:  Focus on technology and database creation– guide to research, review and follow up  Real-time tracking and control over processes for smooth operations and more visibility  Value-based services provider collaboration  Infrastructure and optimisation by restructuring the supply chain model  Risk and security management

Project management and coordination

Proper planning and integrated approach to the supply chain ensures smooth coordination. The integration of the logistics model with a company’s

financial and procurement system helps in resource optimisation, ensuring smooth coordination between suppliers, transporters, and other departments.

Efficient and technology-based data pool helps in assessing and evaluating every perspective. Regular staff training on operations and safety measures is key to ensuring smooth workflow. Transparency, record keeping, tracking, and considering safety as a priority are the other important components.

Creating value for customers

Needs and demands vary from sector to sector. Customising the supply chain network based on service requirement and profitability of customers ensures long-term sustainable relationships.

Alignment of demand and supply planning according to market trends analysis helps in real-time decision making and service optimisation.

Continuous satisfaction leads to value creation. Ensuring consistent forecasts derived from data insights and optimising resource allocation helps in fulfiling customer demands on time.

Overcoming challenges

The major issue we face is geographical location disadvantage. Being situated far from transportation hubs, we usually face challenges in the availability of on-time part-load options and special equipment like standard and specialty ISO containers. Therefore, we keep ourselves efficient with proper advance planning and multiple service provider resources as back up.

Besides, constant change in the market (demand and supply), political agendas, global sourcing, and unprecedented situations like COVID-19 cause major setbacks. We are always prepared with a risk management plan and long-term contracts with service providers. The integration of modes of transport to single-source helps us to better coordinate and plan.

Building systems efficiency

As part of building up supply chain efficiencies, we are exploring and developing an alternative multi-modal transport model for our bulk liquid movements from port to factory which

needs to be eco-friendly, energy-efficient and sustainable. The current model for inbound bulk liquid products totally depends on surface transport as we are far away from the ports, while procurement is being done in bulk and break-bulk vessels.

In the same connection, while aggressively exploring the possibilities, we recently hired an entire train, loaded 90 ISO containers with liquid cargo at Mundra Port and transported them to Ludhiana in Punjab. A train carrying about 2000 MT can potentially replace about 100 tanker trucks plying on the road, helping clearing up congestion apart from increasing efficiency and reducing pollution.

This multimodal transport system will prove beneficial to the industries situated far away from seaports and inland logistics centers. The concept can definitely help many industries to secure supply of raw materials in time, with end-to-end cost-optimisation while mitigating seasonal constraints in road transportation.

We are always prepared with a risk management plan and long-term contracts with service providers. The integration of modes of transport to single-source helps us to better coordinate and plan.

Outsourcing logistics

This is an industry where manufacturers, importers and exporters, the port authorities- terminal operators, Customs, customs agents, CFSs, ICDs, LSPs and freight forwarders (ground, air and maritime), airlines, shipping lines, and finally end-users co-exist.

LSPs play an important role in moving supplies to/from our valuable customers/suppliers. Maintaining the quality of products during transit and delivering them safely to our customers/factories is purely in their hands. It is mandatory for service providers to follow the assigned SOPs while regular vendor evaluations play an important role in keeping service levels at par with the standards.

We have a mix of vendors including multinational and domestic and accordingly outsource our export-import

requirements based on their strengths.

We work on long-term contracts with both on major routes as well as on the basis of spot freight procurement.

LSPs as partners

Reduced turnaround time and improved process efficiency are key expectations from LSPs. As the global supply chain moves towards an integrated model, LSPs should focus on effective ownership of the work assigned to create value. They should leverage their people, technology, processes and knowledge to tap into complex warehousing and shipping solutions.

Infrastructural strength, cost efficiency, and service reliability are the factors we look for when choosing an LSP. Besides, tax due diligence, financial sustainability, customer due diligence, geographical and strategic fit are the other major parameters we evaluate while selecting any service provider.

Special commodities demand more planning and experienced handling. As a manufacturer of pharmaceutical and chemical goods, we expect our LSPs to be more efficient and build services based on transportation management systems and business intelligence.

Future innovation pathways

Automation and infrastructure strengthening is the main focus now.

However, building brands through customer satisfaction is something that major industries in India still need to look into.

The past half-decade has been a time of turbulent change in the supply chain and logistics industry. There has been an increased demand for accuracy, timeliness, convenience, responsiveness, quality and reliability.

The industry is eventually reshaping towards perfection.

The major differentiator in logistics is meeting customer expectations through technology deployment, transportation competitiveness, and human resource management. But lack of focus on them as a whole makes companies more vulnerable to situations like COVID-19. Companies should create a holistic approach to resilience and take all aspects of the business into consideration, from employees to external partners. september 2020 | 75

n ews India seeks investments from UAE in infra, energy and defence sectors

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ccording to a statement issued by the Indian foreign ministry, India is seeking investments from the United Arab Emirates (UAE) in key sectors such as food parks, logistics, highways, ports, airports, renewable energy and defence. In a virtual discussion recently, Indian foreign minister SubrahmanyamJaishankar and his UAE counterpart Sheikh Abdullah Bin Zayed Al Nahyan discussed extensively about a joint strategy to offset the social and economic impact of the pandemic on both

countries. The meeting took place under the aegis of the 13th Joint Commission Meeting on Trade, Economic and Technical Cooperation, said the statement.“​Both countries expressed optimism over the growing trade, economic and investment cooperation be-

tween the two countries. The UAE side conveyed appreciation for the significant contributions made by the Indian expatriate community and expressed its willingness to further strengthen links in energy and food security,” the statement read.

NHAI forms SPV to fast-track Delhi-Mumbai expressway development

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he National Highways Au t h o r i t y o f I n d i a (NHAI) has formed a Special Purpose Vehicle (SVP) – DME Development – for financing, construction and operation of the Delhi-Mumbai ‘Greenfield’ Expressway.

The NHAI’s wholly-owned SPV is aimed at diversifying the developer’s ‘resource base and initiating a sustainable and self-liquidating approach to raise finances’.

Currently, the NHAI is implementing about 28,000 k m of h ig hways u nder ‘Bharatmala Pariyojna’ PhaseI, and the Delhi-Mumbai Expressway is one of the flagship corridors. Spanning 1,275 km, it will be an eight lane expressway, with provision to expand to 12 lanes in the future. Along with a design speed of 120 km per hour, it

will be India’s longest Greenfield Expressway.

“The corridor will be completely access-controlled with closed tolling. A network of 75way side amenities is also planned on either side of the expressways at an interval of 50 km,” NHAI said in a statement.

The project has a capital cost of `82,514 crore, which includes land acquisition cost of `20,928 crore. “Considering the significance of the project, the authority has decided to invest the full equity and proceed with the development,” the statement said.

India, Bangladesh operationalise a new riverine trade route promote regional and trade Thaveoconnectivity, India and Bangladesh reportedly opened a new trade

route. The motive is to expand the scope of inland water transport mechanisms which will further boost trade between both the regions.

According to the reports, Bangladeshi vessel carried 50 metric tonnes of cement from Bangladesh-based Premier Cement Ltd to Tripura as a part of the efforts to boost connectivity between the two countries.

The route which is connecting Sonamura in Tripura to Daudkandi in Bangladesh has been operationalised under the agreement signed by the two countries in May 2020 to boost riverine trade, says reports.

IAG ups frequency on cargo-only India services

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AG Cargo is updating its India schedule for cargo-only flights.

The cargo airline has introduced additional service to and from Indian cities Delhi and Hyderabad.

To maximise capacity, IAG Cargo has increased its frequency to five times a week by adding an extra frequency to the capital city. A Boeing 787 will land in Delhi’s Indira Gandhi International Airport (DEL) every Friday and leaves for London Heathrow Airport (LHR) every Saturday, effective August 16, 2020.

IAG Cargo has also launched an extra frequency to the South Indian city of Hyderabad with utilising a B787, to arrive from LHR every Saturday and will fly back every Sunday. With this, the cargo carrier now operates four times a week to Rajiv Gandhi International Airport (HYD).

The carrier’s B777s also flies to and from Mumbai International Airport daily.

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n ews In a strategic partnership, DP World acquires three units of Transworld Group

DB Schenker opens new warehouse in Singapore worth 101-million-euros

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n order to strengthen its position as a leading shipping line and logistics conglomerate, Transworld Group has announced a strategic partnership with DP World a nd its subsidiar y Unifeeder Group. The latest development has proved to be a historic milestone for both the companies.

According to the press release, Unifeeder, through its Unifeeder ISC platform, will acquire three business units of Transworld Group, i.e. Transworld Feeders FZCO, Avana Logistek Limited (including its subsidiary Avana Global FZCO), and Transworld Feeders Pvt. Ltd. (the containerised Indian coastal and EXIM feeder shipping operations of Shreyas Shipping and Logis-

D

tics Ltd, excluding vessels and bulk operations).

Ramesh S. Ramakrishnan, C ha i r ma n of Tra n sworld Group and Shreyas Shipping and Logistics Limited said in a statement, “Our strength lies in our strong customer relationships, local expertise and network across the Indian sub-continent, which have allowed us to deliver an efficient product to the market. The acquisition of three of our

portfolio companies will provide DP World and Unifeeder ISC a robust platform to jointly deliver a more complete range of solutions to our customers. We are excited to be part of the DP World family and look forward to building on our continued legacy as a globally renowned independent shipping and logistics conglomerate. We look forward to our partnership and a prosperous future together”.

Safexpress unveils ultra-modern logistics park in Uttarakhand’s Rudrapur

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afexpress recently launched an ultra-modern logistics park at Rudrapur in Uttarakhand, strategically located on National Highway 109. With this, Safexpress now owns and operates a chain of 54 logistics parks across the country.

The state-of-the-art facility is spread over 1 lakh sqft and enabled with best-in-class log ist ics i n f rast r uct ure for transshipment and 3PL operations. The facility was jointly inaugurated by the company’s Vice President SK Jain, Re-

gional Manager Piyush Jain and Area Manager Mohit Rai. The Safexpress logistics park will serve as a nodal point for supply chain and logistics requirements in the region and will boost industrial growth by minimising the infrastructure gaps.

The Rudrapur logistics park enables loading and unloading of over 100 vehicles simu lt a ne ou sly a nd h a s a columnless span of over 80 feet, ensuring smooth and uninterrupted movement of goods and the fastest transit time from Ru-

drapur to over 1,131 destinations across India. Safexpress has developed robust IT systems to increase operational efficiencies and gain total inventory visibility – from the facility to the store shelf.

To enable all-weather loading and unloading of goods, the logistics park is equipped with 16 feet wide Cantilever Shed, as well as state-of-the-art firefighting equipment and trained manpower to adequately deal with any emergency.

Safexpress has also taken special environment-friendly initiatives at the facility by investing in a rainwater harvesting system, developing a special green zone, and using natural sunlight during the daytime to conserve energy.

B Schenker has started operations at the Red Lion warehouse in Singapore, a regional hub for automated high-speed logistics. It is worth €101 million and the single largest investment in any site globally in Schenker’s corporate history. The facility is strategically located in the Airport Logistics Park of Singapore (ALPS) at Changi Airport.

With the opening, DB Schenker reinforces its commitment to the city state as the booming gateway to the Asia Pacific region and celebrates its 50th anniversary in the ‘Lion City’.

Jochen Thewes, DB Schenker’s Chief Executive Officer, said, “We are happy and proud to reinforce our commitment to Singapore as the heart of our logistics operations in Asia.”

A P Moller, Maersk introduces changes in sea & logistics to boost customer experience

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P Moller – Maersk introduces strategic changes that will further improve customer experience and end-to-end service delivery. As part of this, the Safmarine brand will be integrated into Maersk to enhance customers’ access to the global integrated offering. In addition, the Damco brand’s Air and LCL (Less than Container Load) offering will be combined with Maersk’s logistics and services products to complement its end-to-end offering.

Also, a more simplified and customer-centric global Ocean & Logistics organisation is being introduced stated press release.

These changes represent a major step towards becoming an integrated container transport and logistics company connecting and simplifying customers’ supply chains. september 2020 | 77

Saudia Cargo expands scheduled freighter flights to Shanghai

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audia Cargo has expanded its robust cargo network with the addition of Shanghai station to its flight schedules which commenced last Saturday, August 15.

Saudia Cargo now operates two flights a week, every Saturday and Tuesday, originating from Riyadh’s King Khalid International Airport and Jeddah’s King Abdulaziz International Airport to the new destination using a Boeing 777 Freighter which has 95 tonnes capacity.

The Saudi national air freight carrier’s

MSC adds new calls to improve India-US East Coast service network expansion was in response to the growing demand for air cargo capacity. In July, Saudia Cargo operated over 1,500 flights, of which 500 were done using passenger aircraft dedicated for international cargo operations.

Saudia Cargo, CEO, Omar Hariri said that the company took proactive and practical steps to ensure the continuity of cargo operation to the Kingdom through non-stop charter flights despite the challenges COVID-19 has posed.

The company, he added, operated 29 unscheduled all-cargo flights from Shanghai International Airport to the Kingdom to meet the growing demand for cargo.

CSP Abu Dhabi Terminal starts direct services to India and Europe

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SP Abu Dhabi Terminal, the first overseas Greenfield project of COSCO SHIPPING Ports Limited (CSP) announced the start of a direct, weekly service to the Indian subcontinent and several ports across Europe.

The new direct service will be served by a fleet of eight vessels on rotation, ranging in capacity between 10,000 to 13,000 TEUs. The vessels will operate from Abu Dhabi Ports’ flagship deepwater Khalifa Port, where the terminal was established as part of a 35-year agreement with CSP, and serving as a regional base for COSCO SHIPPING Ports’ global network of 37 ports.

Within the Indian subcontinent, the ports covered by the service include NhavaSheva and Mundra in India, and

Karachi in Pakistan.

The direct services are expected to lend additional support to customers across markets in the Middle East, Africa and beyond the region, as well as clients of the Khalifa Industrial Zone Abu Dhabi, providing faster transit and competitive rates for their import and export activities.

With expectations that the new offering will increase CSP Abu Dhabi Terminal’s weekly handling of cargo, the development is also expected to help add more feeder services from the terminal.

Emirates establishes airbridge between Dubai and Lebanon, to deploy over 50 cargo flights

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o show solidarity and support for the people of Lebanon in the wake of the Port of Beirut explosions, Emirates SkyCargo is ramping up its freighter operations by dedicating over 50 flights to deliver much needed mission critical shipments to the coun78 |

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try. For every donation, cargo capacity will be provided for humanitarian organisations to transport critical medical equipment and supplies, food and other emergency relief goods directly to Beirut through Emirates SkyCargo. Work is underway to mobilise recog-

nised humanitarian partners.

Additionally, Emirates SkyCargo will contribute by providing a 20 per cent reduction on air freight transportation charges for approved shipments, underscoring its commitment to expedite emergency relief efforts to Beirut.

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eader in global container shipping, Mediterranean Shipping Company (MSC) has enhanced its Indus service with a new port call at Colombo in Sri Lanka.

The addition of Colombo will reinforce offerings for cargo shippers in Southeast India, Sri Lanka, and Bangladesh and facilitate new business in these markets. The new rotation will offer US customers the possibility to import cargo from anywhere in India on a single MSC service, boosting predictability for effective supply chain planning.

The service will continue to operate as a standalone MSC service offering a competitive transit time from the Middle East and Indian subcontinent region to the US East Coast.

Maersk rejigs Europe to Middle East and Indian subcontinent network

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P Moller – Maersk has made improvements to its network between Europe and the Middle East and Indian subcontinent. The aim is to enhance reliability while building a network that helps customers with more resilient and agile supply chains.

The North Europe and West Mediterranean regions will be served via Maersk’s AE1 and AE7 services which offer a direct connection with Salalah (Oman) and Colombo (Sri Lanka).

The updated Maersk network will connect more cargo via the Maersk hub in Colombo, allowing customers to do consolidation from different origins and better connect their cargo from both Asia and West Central Asia.

Furthermore, by better linking Middle East to Maersk key hubs in Europe, the changes provide customers additional flexibility and agility to move cargo between different markets.

Meanwhile, the new ME2 service between the West Mediterranean and West India will offer a direct connection with Jawaharlal Nehru Port Trust (JNPT) in Mumbai and Adani Mundra port in Gujarat.

FORWARDING FASTER FOREVER

Freight Forwarders initiative with CARGOCONNECT

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appointments

Rémi Maillard promoted to President for India and MD of South Asia at Airbus

Airbus has promoted Rémi Maillard as President for India and Managing Director of South Asia, effective September 01, 2020.

Rémi is currently Head of Airbus Services.

In his new role, Rémi will lead Airbus’ business in South Asia. He will be responsible for commercial aircraft sales and business development, and he will manage Airbus’ regional footprint, which includes engineering, innovation, customer support and services as well as training. He will also help progress Airbus’ top defence and helicopters campaigns and boost the company’s ‘Make in India’ programmes.

Pfizer’s Angela Hwang appointed to Board of Directors at UPS

UPS announced the name of Angela Hwang as new member to have joined the Board’s Audit Committee.

Hwang is a member of Pfizer’s Executive Team and is Group President of the Pfizer Bio pharmaceuticals Group.

Prior to leading the Pfizer Biopharmaceuticals Group, Hwang held more than 10 different positions in the company, spanning strategy, product development, marketing, sales, and general management. Hwang also sits on the boards of European Federation of Pharmaceutical Industries and Associations (EFPIA), as well as the Pfizer Foundation.

DP World’s Ranjit Ray appointed World FZO’s National Contact Point for India

Ranjit Ray, who heads free-trade zones (FTZs) for DP World India subcontinent has been appointed as the National Contact Point (NCP) of the World Free Zones Organisation (World FZO) for the Indian region. A certificate to this effect has been issued to DP World by WFZO. As an NCP, Ranjit Ray will be the focal point to facilitate the development of FTZs ecosystem in India along with World FZO and cooperation of the Indian Government.

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M Sanjeev is the new Head of Ford Global Centre of Excellence

M Sanjeev has moved to a new role of Vice President of Ford’s Global Centre of Excellence from his current position as General Manager of Supply Chain Management and Material Flow & Packaging Engineering for Ford’s Asia Pacific and Africa (APA) region.

M Sanjeev has been with Ford in India for more than 20 years and held a range of material and supply chain management roles. Prior to his role overseeing the supply chain for Ford APA, he was material, planning and logistics launch manager for Ford South Africa.

ANA Cargo elevates Sadami Sugimoto as new VP for EMEA

ANA Cargo has appointed Sadami Sugimoto as its new Vice PresidentCargo and Mail, for Europe, Middle East and Africa (EMEA) region, effective

July 01.

In his last role, Sugimoto was Vice President of International Cargo Support Operations at ANA Cargo, which he held for two years. Sugimoto has 11 years’ of experience in cargo, having worked in marketing, alliance, revenue management, mail sales and operations.

He also spent seven years in Jakarta on non-cargo assignments.

Geodis names Gary O’Connor as new Managing Director for Ireland

GEODIS has appointed Gary O’Connor as new Managing Director for Ireland.

His appointment was effective in June and is aimed at driving the company’s growth in this important market.

The strategy will be to develop business in the healthcare sector while expanding GEODIS’s influence over well-established verticals, including e-commerce, high tech and FMCG. O’Connor joins a GEODIS team that recently established itself in a new state-of-the-art logistics facility at Dublin Airport Logistics Park.

Pieter Van den Nieuwenhuizen appointed CEO of Swissport Belgium

Koen Gouweloose has been appointed Head of Swissport Cargo Belgium from July 01, 2020. In his new position, Gouweloose will oversee the strategic and operational management of Swissport’s cargo activities in both Brussels and Liège, with a strong focus on navigating the company through the post-COVID-19 recovery phase.

Koen Gouweloose started his career with Swissport in March 2020 as COO. He has extensive experience in the logistics sector and held several senior management positions throughout his career.

Tigers appoints Jana Schebera as Managing Director for China

Global logistics provider, Tigers has appointed Jana Schebera as its new Managing Director for China. Jana will be based in Tigers’ Tsing Yi e-commerce fulfilment facility in Hong Kong.

Prior to this move, Jana has held the position of Managing Director for Hong Kong and South China at Rhenus Logistics, and business development roles at M + R Spedag Group. She holds a Master’s degree from Humboldt University of Berlin, Germany, in Economics and Chinese Studies.

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INDIA

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17-18-19 A global event on DECEMBER 2020 warehousing, material handling, storage, INDIA EXPO CENTRE logistics & Supply Chain GREATER NOIDA, DELHI-NCR

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Report

Post-pandemic growth opportunity analysis of the Indian Logistics industry Infrastructure upgrades, policy reforms, and digitalisation will transform the logistics ecosystem

Overview

COVID-19 has been a disruptive force across every industry. India is facing several challenges amid its country-wide lockdown: laour shortages, cargo capacity challenges, a manufacturing slowdown, order delays and stuck shipments, and demand and supply shocks.

India's real gross domestic product (GDP) is at its lowest in 6 years because of the COVID-19 standstill adversely affecting consumption and and investment in the Indian economy. The manufacturing halt has reduced demand for logistics services,

which will result in downward pressure on prices across warehousing, freight, and logistics.

Growth environment

The driver shortage is one of the biggest challenges that the road freight transportation segment is facing. Logistics service providers are expected to adapt to changing market conditions because transportation is considered an essential service.

This special re-forecast of the Indian logistics industry has the base year of 2019 and a forecast period from 2020 to 2025.

The industry size is measured in US dollars.

India's GDP to be impacted by lower sectoral growth

forecast trends

High Impact Finance and Real Estate Hotels and Passenger Transport Manufacturing

foreign trade declined

Export Growth Trends, India vs. Global, Q1 2016-Q1 2020

Construction

Medium Impact Agriculture Public Administration Mining 2016

2017

2018

Strong recovery from an era of lower commodity prices and exchange rate fluctuations

2019 US-China trade war, Brexit uncertainty

2020

Electricity, Gas & Water Supply

COVID-19 disruptions

Source: Frost & Sullivan 82 |

september 2020

Cargo Connect_ September copy_option 1.pdf 1 25-08-2020 12:43:26

First Air Freight Transhipment Centre strategically located within ICD Irungattukottai, Sriperumbudur State of the Art Infrastructure facilitating safe handling of cargo with nil damages / pilferages Quick Cargo Turnaround using owned vehicle to move the ULDs from Airport – AFS – Clearance Part Clearance possible with Bonded Movement to all South India locations C

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Kerry Indev Logistics Pvt. Ltd. Corporate Office : Arihant Nitco Park, 6th Floor, No.90, Dr. Radhakrishnan Salai, Mylapore, Chennai – 600 004 Landline Number : 044-40909090 | Email : corporate@kerryindev.com | Website : www.kerryindev.com