cargo connect magazine may 2016

VOL VII ISSUE VI may 2016 `20www.surecommedia.in

Postal Registration No.: DL (S)-01/3372/2016-18Postal at IPmBC on the 4th-5th same monthRNI No.: DELENG/2009/31040Published on the 2nd of the same month

Roadmap foR Logistics

megatRends & oppoRtunities

Cabotage Relaxation

Supply Chain Complexities in Emerging Markets

Young Blood Rules the Roost in Logistics

SPECIAL FEATURE

ANNIVERSARY ISSUE

Contents

COVER STORYMegatrends & Opportunities: Roadmap for Logistics

SPECIAL FEATURECabotage Relaxation: Why So Much Uproar in Logistics Industry?

EVENTS ............................96-101

PEOPLE CONNECT ................102

16 44

Volume VII • Issue VI • may 2016

INTERVIEW

Manav Sachdeva, Country Head, Everfast Freight Forwarders Pvt Ltd ....................74

Samir Kumar, Director (FM), Railway Board ...................................................66

Bhupinder Kumar Kaushik, Cargo Manager-Sales & Operations, Malindo Air ................72

Ananya Ray, Member, Central Board of Ex-cise & Customs and S R Baruah, Commis-sioner of Customs ................................70

Harpreet Singh, Managing Director, CWC ..68

SURECOM MEDIA 6/31-B, Jangpura-B,New Delhi-110014Tel: +91-11-24373365, 24373465 Mob: 9711383365, 9810962016Email: [email protected]@surecommedia.in Website: surecommedia.in

Editor and PublisherSmiti Suri

Assistant EditorDr Kirti Mudgil Pathak

Principal CorrespondentRitika Arora BholaRoselin Kiro

Special CorrespondentJoydeep Banik

Feature WriterKiran Sabherwal

ReporterShikha Sourav

Director MarketingAjeet Kumar

Manager MarketingNiti Chauhan

Marketing ExecutiveChetan Pathak Rajesh BasuAsad Mohammad

Marketing SupportSheetal Singh

AdministrationVipin MarwahLavish Thakur

Designer & VisualiserShaique AhmadMayank Bhatnagar

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

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

Editor–Smiti Suri

FOCUS

FEATURE

• Supply Chain Complexities in Emerging Markets ........................52

• Young Blood Rules the Roost in Logistics .........................................60

• ’Rhythm and Blues’ of Indian Mari-time ................................................10

TOTAL PAGES: 104 (inclusive of covers)

PROFILE ..................................96

GUEST COLUMN ................78, 80

SUPPLY ChANGE ...............82-83

NEWS ...................................8 & 84-95We bring you a wide spectrum of updates that will keep you informed about the in-dustry’s plans, performance and initiatives.

of supply chain & logistics industryMaster BrandMaster Brand

INDUSTRy FEEDBACK

Bharat J Thakkar, Co-Founder & Joint Managing Director, Zeus Air Services Pvt Ltd

Aditya Gupta, 3PL Business Development Head, DIESL

Gur Prasad Kohli, Managing Director, Head of India, WWL

T Venkatataraman, Managing Director, Goodrich Maritime Pvt Ltd

Raja Gupta, Manager Sales & Marketing, Celebi Delhi Cargo Terminal Management Pvt Ltd

Dr P. Alli Rani, Director-Finance, CONCOR

Congrats to CargoConnect on the seventh anniversary. Every year CargoConnect team has a new feather in its hat. The conference which was organised by the CargoConnect along with CeMAT in December was one of the best conferences. Keep it up and continue to innovate.

Three things make CargoConnect the leading publication. One, relevance of their cover stories-if one is looking for information on any important topic; one discovers CC addressing it most of the times. Secondly, richness of coverage-detailed cover stories, reports, news, interviews, and guest columns. Thirdly, comprehensiveness. I wish CargoConnect much more success.

CargoConnect addresses topical issues that are relevant to the industry and reflects views of its contributors, without editorial interference. Going forward, it would be great to seek industry wide solutions to common problems as the publication commands sufficient respect in the industry.

Yours is one magazine that transcends all aspects of the Indian logistics scene in totality. One can gather this viewpoint from the different types of cover stories that you have had. The information will benefit the users of logistics services immensely.

We have been assoc ia ted wi th CargoConnect since last 6 years. We must admit that Cargo Connect is a complete magazine with the right blend of trade related news/information/statistics and views from eminent personalities of the trade. We wish CargoConnect success!

The quality of coverage of logistics sector by CargoConnect magazine is admirable. It is a pleasure to read and at the same time helps to keep one updated of the latest developments.

Words of Appreciation

Connecting Cargo Professionals

CargoConneCt - may 20166

DGCA has issued an advisory that it could change regulations to allow aircraft upto 18 years old to be imported into the country. Current regulations put a 15-year old cap on the import of commercial aircraft. The proposed revision has a caveat that an imported aircraft can only be upto 18 years if it has completed no more than 50 per cent of its specified design life or operating cycle. For cargo aircraft, regulations will be relaxed even more with imported aircraft now permitted up to 25 years old, as long as they fall belowa 75 per cent design cycle limit.

Maersk Line India has taken a major leap towards simplifying the Landing Certificate process by drastically reducing the time of issuance to just 12 hours. The process requires customers to request for the certificate and they will receive it via email. This simplified process of issuing the Landing Certificate will be effective from May 1, 2016 and will provide a hassle-free transaction experience for the customers.

Japan International Co-operation Agency (JICA) recently said it will provide an assistance of `6,170 crore for a Dedicated Freight Corridor project. JICA signed an agreement with the Government of India to provide 103,664 million Japanese Yen (ap-

prox ̀ 6,170 crore) Official Development Assistance (ODA) loan for the DFC Project Phase 1 (III), Tranche 3. The main feature of the project is the construction of new double track electrified railway lines for the sole use of high speed freight cargo trains. The agreement was signed by Takema Sakamoto, Chief Representative, JICA India and S Selvaku-mar, Joint Secretary, DEA, Ministry of Finance. Sakamoto said, “JICA is committed towards development of infra-structure in India. This loan will support to cope with the huge and rapid increase of freight transport demand in India by constructing new dedicated freight railway system.”

India may relax import re-strictions on older aircrafts

Maersk Line reduces land-ing certificate issuance time

JICA gives `6,170 cr loan for DFC project

nEWS

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indian maritime

FoCuS

With a sound GDP growth rate of more than seven per cent, India is one of the fastest growing econo-mies at present. IMF and World Bank have indicated even better prospects in the days to come.

Indians are the inheritors of a glorious maritime heritage and the present government is stressing a lot on the opportunities in the maritime sector.

Maritime India Summit (MIS), a maiden initiative of the Ministry of Shipping, Government of India, aimed at exploring new opportunities by attracting potential global investors from the maritime sector was recently held at Bombay Convention and Exhibition Centre, Mumbai. More than 4,500 dignitaries and delegates from around forty countries participated in this Summit that played a key role in highlighting the role of port-led development for fast and sustainable economic growth. For the first time ever, a global event of such a large scale was being organised in India. The National Perspective Plan of the Sagarmala project was also unveiled on the inaugural day of the summit, underlining the Government’s seriousness in boosting port-led infrastructure development.

Round Up of Maritime India SummitThe summit began on April 14—the auspicious day of Ambedkar Jayanti. Commemoratising Dr Babasaheb Ambedkar’s vision and foresight of developing national waterways, Prime Minister Narendra Modi in his inaugural speech emphasised on the importance of the new waterways policy in order to lay the foundation of a prosperous regime. This summit was another step to realise Babasaheb’s dream of an economically strong, socially empowered and technologically equipped India, told the PM.

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The summit provided a platform for participation, engagement and interaction for national and international stakeholders in the maritime sector. The three day exhibition organised during the Summit drew enthusiastic response from 197 exhibitors including 81 international companies, 80 Indian private sector companies and 36 Government-owned entities. Thirteen thematic sessions and three special sessions on various aspects of maritime sector were organised, where more than 80 eminent speakers from across the globe deliberated and shared their vision and experience. A significant session on ‘Maritime Nations’ highlighted the global nature of the shipping industry and the importance of collaboration between maritime nations and the focus sessions on ‘Maritime States’ brought threw light on the opportunities in various maritime states and union territories of India. In addition, there were sectoral seminars on shipbuilding and ship repair, skill development through maritime education, inland waterways development, cruise shipping and lighthouse tourism, fisheries development, maritime security, and so on.

A special session on partner country for the summit—Republic of Korea, highlighted the strength of Korea as a

maritime nation, especially in ship building, maritime technology, port-led development, maritime financing and security. On the side-lines, high level bilateral meetings were held with at least 12 participating countries. The enriching discussions, suggestions and learn-ings paved the way for a sustainable roadmap for the sector. Nitin Gadkari, Union Minister of Shipping personally interacted with over 100 foreign delegates and ensured them the ‘Ease of Doing Business in India’.

The summit showcased around some 240 projects presenting investment opportunities during the next five years. The Ministry of Shipping also established an Investment Facilitation Cell with Indian Ports Association to follow up on these opportunities with potential investors and materialise the intents expressed during the summit. The summit resulted in business agreements for ̀ 82,905 crore investments this year.

Apart from the delegate sessions, the event

also held a closed CEO Forum participated by most prominent faces in the logistics industry. Shashi Kiran Shetty, Founder and Chairman, Allcargo Logistics who was invited to share his insights about India’s maritime sector said, “It was a privilege to be a part of such a great initiative launched by the Government of India and the Shipping Ministry to boost investments and business in the shipping sector. The summit brought together industry tycoons and delegates from across the world which provided a great opportunity to partner and explore various business opportunities. The two day summit saw some important announcements which will help promote the shipping and logistics sector. It opened doors to various initiatives like transformation of ports, development of industrial clusters, etc. ultimately driving economic activity in coastal areas.”

However, the extravaganza was not only about seminars and conferences. One of the top

attractions at the summit was the Maritime Heritage Museum, built like a container ship and interiors resembling a Spanish Galleon. The museum depicted the 5000 year rich maritime heritage of India, beginning from the earliest port at Lothal to the modern advancements in the shipping industry, in the form of artefacts, replicas, photographs, maps and navigation equipment.

Sagarmala Project: Boost to Maritime EconomyThe Union Cabinet chaired by the Prime Minister Narendra Modi gave its ‘in-principle’ approval for the concept and institutional framework of Sagarmala Project a year back. The National Perspective Plan of the Sagarmala Programme was released by the PM at the recently held Maritime India Summit, which mentioned that Sagarmala could lead to annual logistics cost savings of `35,000 crore and boost India’s merchandise exports to $110 billion by 2025.

The prime objective of the Sagarmala project is to promote port-led direct and indirect development and to provide infrastructure to transport goods to and from ports efficiently and cost-effectively. The project shall, inter alia, aim to develop access to new regions with intermodal solutions and promotion of the optimum modal split, enhanced connectivity with main economic centres and beyond through expansion of rail, inland and road services.

The PM also said that plans to integrate ports with SEZs, smart cities, industrial parks and logistics parks were on the agenda.

Shipping Minister Nitin Gadkari said, “It has been decided to finish Sagarmala project in five years instead of 10 years to create 10 million jobs. The project will boost exports to $110 billion.” Gadkari also informed, “This plan is based on four strategic levers: optimising multimodal transport to reduce the cost of domestic cargo, minimising the time and cost of export-import cargo logistics, lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports.”

Nirmala Sitharaman, Minister of State, Ministry of Commerce & Industry commented at an event in Delhi, “At the moment, there are a lot of investments in terms of money, resources, time and planning in the maritime sector. I should not forget to mention the wonderful

FoCuS

“We are looking at

developing a ‘Blue

Economy’ and ushering

in a ‘Blue Revolution.”

Nitin Gadkariunion Minister of Shipping


scheme that our PM is availing on Sagarmala Project. Sagarmala is a dream project of PM, wherein we would have all the major and minor ports in India interconnected. Once the project is complete, connected movement of freight is going to be far easier, cheaper and quicker, and movement from one port to another is going to take away a lot of cargo from surface transport.

As the ports get connected with better waterways and roadways, movement of goods is going to be quicker and cheap. Most of our export and import cargo have had this issue of concern—the cost of moving goods from port to port adds to the cost of Indian manufacturing. To make the project successful, the priority of the government is to ensure the lowering of costs so that it does not have any such implication on the EXIM trade.”

Sagarmala aims to deliver the desired result through over 150 projects spanning four broad areas including modernisation of existing ports and establishment of five to six new ports to augment capacity, focus on port connectivity through the heavy-haul rail corridor, freight-friendly expressways, and development of strategic inland

waterways. And all this, thanks to the vision of the Prime Minister himself, who seems highly ambitious about the project and says, “This is just the beginning. We want to do more. We are enhancing our own capacities of execution and implementation. During the last two years, major ports have awarded 56 new projects involving an investment of more than 250 billion rupees. This will create an additional port capacity of 317 million tonnes per annum. Our vision is to increase port capacity from 1400 million tonnes to 3000 million tonnes by 2025. We want to mobilise an investment of one lakh crore, or one trillion rupees, in the port sector to enable this growth. Five new ports are planned to meet the increasing demand of the EXIM trade which will rise in proportion with the fast-growing Indian economy. New ports are also being developed by several coastal states of India. The multiple measures to promote coastal shipping coupled with the anticipated rise in domestic production of coal, is expected to enhance coastal transportation of coal by at least four fold by 2025. We are engaging with our immediate and regional neighbours to promote shipping and maritime security.”

He continued saying, “I am informed that the Ministry of Shipping is showcasing about 250

projects with investment opportunity in the maritime sector. These projects include various infrastructure development opportunities in twelve major ports, projects in eight maritime states and other agencies. Of these, over 100 projects have been identified under the Sagarmala Programme. With more than 14,000 kilometres of navigable inland waterways in the country, there is tremendous potential for development in this sector. My government is committed to integration in infrastructure. We are also committed to creating an enabling

environment for investors and to facilitate investments with an open mind.”

ConclusionIndia’s maritime agenda will complement the ambitious infrastructure plan for the hinterland which is going on in parallel. Maritime India Summit, the first-of its-kind called upon global business community to partner with India to give shape to our process of port-led development.

The government has liberalised the licensing regimes which include the defence sector and shipbuilding. Most of the FDI sectors are now put on automatic approval route. Shipyards are being given ‘Infrastructure’ status at par with the ports and rebate of service tax on coastal shipping has been increased to seventy per cent. This has resulted into a rise in FDI inflows In fact, the year 2015-16 has seen the highest ever

FDI inflow into India. India’s highest ever quantity of cargo handled by major ports was in 2015, and the port efficiency parameters have shown good improvement. In the last two years, our major ports have added 165 million tonne ca-pacity with record additions each year.

The traffic in major ports has shown a healthy growth of more than four per cent in the last two years, despite global slowdown. Similarly, India’s flagship companies like the Shipping Corpora-

tion, Dredging Corporation and the Cochin Ship-yard have registered higher profits as compared to the previous year. A lot has been happening and a lot more is supposed to happen. Simultaneous improvement in both major and non-major ports is required to address the needs of the country, and the Sagarmala Project is bound to do the same. Gadkari rightly concludes by saying, “There is immense potential in this segment, and is possi-bly even higher than roads. What we are looking at is developing a ‘Blue Economy’, ushering in a ‘Blue Revolution’.

FoCuS

“Sagarmala is a dream

project of PM wherein

we would have all the

major and minor ports

in India interconnected.”

Nirmala SitharamanMoS, Ministry of Commerce & Industry

The pRime objecTive of The SagaRmala pRojecT iS To pRomoTe poRT-led diRecT and indiRecT developmenT

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CoVER StoRY


Roadmap foR Logistics

megatRends & oppoRtunities

May 2016 - CargoConneCt 17

CoVER StoRY

may 2016 - CargoConneCt 17

Indian Logistics Industry has witnessed an exponential growth in the last few years.

If we go by the statistics, the logistics market in India is expected to be worth US$

301.89 billion by 2020. Key initiatives like government’s ‘Make in India’ campaign,

DFC, boost in e-commerce Industry, increasing number of multi-modal logistics

players, development of inland waterways etc., have led to this significant growth.

Ritika Arora Bhola, with the help of experts jots down key megatrends and

opportunities in logistics and related sectors


Logistics Sector: Overview

Indian logistics industry has evolved in last two three decades from a basic transportation service with some value-added service provider to a truly com-petent partner at par with global supply chain standards. Oliver Bohm, CEO, Schenker India Pvt Ltd highlights few megatrends that have benefitted logis-

tics industry as a whole. 1. Make in India - This initiative is excellent news for India. India is the country

which can provide an alternative to China as a manufacturing base is India. We have abundant land, people and unutilised resources. The challenges are infrastructure and Ease of Doing Business. Fortunately the government is focused on the same and the winds of change have gradually started blowing in the right direction and all stalled infrastructure projects are being revived. The country is already witnessing a spike in investments in domestic manufacturing which will have an enormous positive impact on the logistics industry, thereby opening up endless opportunities in domestic supply chain management.

2. Dedicated Freight Corridor – Dedicated Western Freight Corridor from Mumbai to Delhi and Eastern Freight Corridor from Kolkata to Ludhiana, meeting Western Freight Corridor at Dadri, would become the backbone of India freight transportation. Apart from connecting major industrial hubs throughout India, it will make transportation more cost-effective and reduce the turnaround time for our customers. The government is trying its level best to improve railway network and increase the railway freight to reduce the burden on Indian roads which move almost 64 per cent of total freight.

3. Infrastructure Projects - The recent budget has clearly focused on large scale infrastructure development with a slew of incentives. Further improvement in infrastructure like four to six lane highways, new ports, inland waterways, Sagarmala Project etc., will reduce turnaround times and fuel consumption which would result in reducing logistics cost and bringing in efficiency.

4. IT in Logistics Sectors – Information Technology will be the deciding factor in the cutting-edge competition. Faster responses and efficient execution to the ever changing demand of customers will decide the bigger share of pie of the supply chain market in India. GST would be a game changer and industry is waiting for its implementation expecting to transform India into an uniform market.

5. Ease of Doing Business/Political environment – The Government of India has been making sincere efforts to make India business friendly. With further improvements in the Ease of Doing Business and a stable political environment; the logistics industry will certainly thrive with new initiatives.

6. Domestic and Export/Import Patterns – Improvement in the global economic scenario and continued domestic growth will be a major driver for the logistics industry in the years to come.

Agreeing with Bohm, Mark Martyn–Fisher, Managing Director, UPS India, also shares his viewpoints and reiterates, “India is well-positioned to enable and capture the opportunities presented by the following trends:1. Retail e-commerce growth: With the growing internet access and e-commerce,

retailers are reaching customers across markets and geographical boundaries. While domestic e-commerce is at its growth stage, cross-border e-commerce is also gaining momentum, creating new international markets for consumers and retailers. E-commerce is not only receiving heavy investments but also driving online retailers to compete harder on prices, logistics cycles, coverage area, and developing strong domestic as well as international markets. Many online marketplaces have devised solutions to address their last mile delivery challenges. The growth of e-commerce is creating an environment where supply

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INTRODUCTION OF SINGLE WINDOW SySTEM By CUSTOMS

DEVELOPING INDIAN MAJOR AIRPORTS INTO INTERNATIONAL AIR CARGO HUBS

MAKE IN INDIA

DEDICATED FREIGHT CORRIDOR

IT IN LOGISTICS SECTORS

EASE OF DOING BUSINESS

RETAIL E-COMMERCE GROWTH

LOGISTICS OUTSOURCING

ExPECTED IMPLEMENTATION OF GST IN THE FISCAL OF 2017-18

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tREnDS & oPPoRtunItIES

CoVER StoRY

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While the logistics sector could be among the primary bottlenecks in driving economic growth, it will also act as a catalyst to realising India’s vision to be a manufacturing hub over the next decade. opportunities for realising this dream will come from a more connected global marketplace and economies around the world.

Mark Martyn–Fisher, Managing Director, uPS India

CoVER StoRY

chains are adapting to new models. 2. Emerging market growth: Emerging

market opportunities continue to expand. Over the next 15 years, these markets will represent nearly three quarters of global GDP growth and, thus, increasing proportion of global trade. These markets are gradually creating new hubs and trade

lanes, creating substantial opportunity for international service providers. With increased focus from the global operators, many emerging markets need to focus on building stronger infrastructure and adopting business-friendly policies in order to foster further growth.

3. Logistics outsourcing: Logistics plays a

major role in business strategy. Customers today want to depend on trustworthy expertise in solving complex supply chain challenges. Supply chain management is thus becoming more prevalent. The 2016 Logistics Market Research Report believes that the global outsourced logistics market was valued at over US $760 bn in 2015,

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having grown by almost five per cent in 2015. The growth is primarily driven by increased economic activity and the continued trend in outsourcing logistics activities to third parties.

Meanwhile Vikas Anand, Managing Director, DHL Supply Chain presents a different viewpoint. He states, “Demographic changes and urbanisation can be considered the most influential megatrend. These trends will shape countries and businesses as well as many other industries over the next few decades. The global population is expected to increase from 6.9 billion people in 2010 to 8 billion in 2025, with growth found almost exclusively in developing countries. At the same time, the population in almost all coun-tries is aging. The average age in Germany will rise from 44 in 2010 to 48 in 2025, while the median age in China will increase from 35 to 40 during the same period (UN 2010). This megatrend will lead to rising incomes in the emerging world and rising export op-portunities for life sciences manufacturers. This will be accompanied by a growing de-mand for products and services. Apart from

population growth and aging, mankind will witness an unprecedented migration from rural to urban areas.

By 2025, the share of people living in cit-ies, globally, is expected to increase to 58 per cent from 52 per cent in 2010 (UN 2011). This shift will have direct consequences for the supply chain industry. Cities are also the place for modern lifestyles, which are at the core of the consumerism megatrend. This underlines that economic growth in the emerging world is much faster than in industrialised countries. At the same time, we will see a changing competitive landscape with India and China trying to become more influential in global trade and politics.”

Expert logistician Samik Chakraborty, Business Head East, DIESL also explains the factors which are significant to the growth of logistics Industry in India:1. The expected implementation of GST in

the fiscal of 2017-18: Due to consolidation of many direct and indirect taxes levied by state/central government, the manufacturing and trading organisations may re-look at the present structure

of state based distribution model and consolidate further. This requires an alignment of logistics infrastructure and a complete revamping of distribution network for service providers. Some strategic locations may stand-out as consolidation points for storage, to support which creation of associate infrastructure would be required.

2. Revised Land Acquisition Policy: It would facilitate industrial and commercial infrastructure development programs which will act as a catalyst for supply chain realignment post GST.

3. For consumer products, the growth rate of rural markets is higher than the saturated and competitive urban areas. So, service providers are working on creating a deep delivery network and last mile capabilities to reach larger geographies.

From a researcher’s viewpoint, J Sivan, Senior Consultant, Supply Chain & Logistics Transformation Practice, Frost & Sullivan briefly rounds up the key emerg-ing trends.• Globalisation – On one hand, global

supply chain for many companies is becoming increasingly complex due to sourcing from different regions. On the other hand, companies increasingly focus on core competencies thus opting for logistics outsourcing. As India becomes more open to trade and investment, the need for logistics services increases propor t ionate ly, prov id i ng more opportunities for service providers.

• Demography and Demand – India is expected to reap the benefits of the demographic dividend–young workforce, rapidly expanding middle income, increasing market expansion of many

CoVER StoRY

the Government of India has been making sincere efforts to make

India business friendly and with further improvements in the Ease

of Doing Business and a stable political environment; the logistics

industry will certainly thrive with new initiatives.

Oliver Bohm, CEo, Schenker India Pvt Ltd

demographic

changes and

urbanisation

can be

considered the

most influential

megatrend.


products and services such as consumer durables, education and healthcare. Due to low penetration levels, India will remain attractive in the next ten years.

• Industr ia l isation a nd Focus on Manufacturing – Make in India opens up new market opportunities for industrial expansion in both traditional and hi-tech industries. The Government reforms are targeted towards removing restrictions on business environment to improve Ease of Doing Business which will make India more attractive for international investment.

• Digitalisation – Mobile and internet p e n e t r a t i o n h a s b e e n g r o w i n g exponentially in recent years, increasing d ig it a l l ite racy a nd ope n i ng up opportunities for mobile based business services such as e-commerce, education and healthcare. Traditional delivery

models are being transformed to meet changing expectations of consumers.

• Trade – Trade policy efforts focus on increasing exports upto $900 billion by 2020. This will have a direct impact on transportation and warehousing, as more

than 80 per cent of foreign trade is done through sea trade.

• In fra str uct u re E x pa nsion – Infrastructure constraints are a key factor determining competitiveness. To keep up with growing demand from both industrial and consumer/household dema nd ; energ y, construction and transportation sectors wi l l continue to be prioritised, providing a strong b a s e fo r l o g i s t i c s -r e l a t e d infrastructure development.

A i r C a r g o S e c t o r : K e y MegatrendsIndian air cargo industry has grown con-siderably in the last few years. With the in-creased participation and interest of foreign freight forwarders and international airlines in India, the cargo share and movement in India hasn’t seen a downfall.K S Kunwar, Director General, Air Cargo Forum India (ACFI) jots down few mega-trends and opportunities that are certainly going to benefit the air cargo sector in the coming years: 1. The implementation of Electronic

Data Interchange (EDI) supported by digital signature in the processing and documentation of EXIM trade at gateway airports by the government agencies like customs, other ancillary regulatory agencies and stakeholders of air cargo logistics trade, will assure that the required hardware shall be procured and placed in bring Ease of Doing Business with paperless transactions, processing will become faster, inconvenience due to human interference will be negligible,

and transaction cost in the processing shall become reasonable. On its full implementation, the existing bottlenecks of the users shall be minimised and it will boost the growth of air cargo.

2. Introduction of Single Window System by customs for all the stakeholders including other ancillary regulatory agencies. This will provide a facility of filing EXIM documents by importers and exporters at one point online and transmission of NOC clearance by all other regulatory agencies to customs online i.e. paperless. This will infuse total paperless processing of international cargo through one access point and help in fast clearance.

3. Developing Indian major airports into international air cargo hubs: One of the key components of any successful world-class airport is that it works as a hub in-terms of better flight connectivity, fastest transit time, simplified procedures and least interference of regulatory authorities. Such ingredient could only be achieved in a cargo village which works under free zone environment where all

CoVER StoRY

In the next few years, changes in the world of airfreight in the form of e-commerce, staff turnover, competition and belly capacity will be seen and LSPs should be prepared for these biggest disappointments because of the lack of interest that current supply chain professionals are showing for training the next generation.

Bharat J Thakkar, Co-Founder & Joint Managing Director, Zeus Air Services Pvt Ltd

developing

indian major

airports into

international

air cargo hubs.


the stakeholders including the regulatory and the facilitating agencies like airport operators, cargo terminal operators, airlines and freight forwarders, integrators are under one Free Zone Authority.

Meanwhile, Anand Yedery, Regional Cargo Manager–South Asia, Middle East & Africa, Cathay Pacific Airways focuses on the growing e-commerce and phar-maceutical industry and says, “E-commerce and pharma are two key segments that are growing rapidly. Use of technology and automation in logistics will play a key role in changing the face of the industry in the coming years and hence will be a space to watch out for. Oil prices are expected to stay relatively low for some time, and thus boosting some increase in air freight volumes in this region. However, yields are likely to fall further.”

Automotive Sector: Key MegatrendsSushil Rathi, Chief Operating Officer, Mahindra Logistics shares latest megatrends and opportunities that will benefit the Indian automotive sector in the coming years:

The Automotive Mission Plan 2016-26 (AMP 2026) AMP is the collective vision of Government of India

and the Indian Automotive Industry on where the vehicles, auto compo-nents, and tractor industries should reach over the next ten years in terms of size, contribution to India’s devel-opment, global footprint, technologi-cal maturity, competitiveness, and institutional capabilities. AMP 2026 also seeks to define the trajectory of evolution of the automotive ecosys-tem in India including the glide path of specific regulations and policies that govern research, design, technol-ogy, testing, manufacturing, import/ export, sale, use, repair, and recycling of automotive vehicles, components and services. With this initiative, the Indian automotive industry is expected to contribute around 13 per cent to the national GDP.

‘Make in India’ CampaignThis campaign presents a great op-portunity for the Indian automotive logistics sector. There will be a signifi-cant increase in the movement of capi-tal goods, raw materials and finished goods. It will also create a demand for domestic and international transpor-tation, warehousing and distribution. Today, the transaction costs are high in India. The ‘Make in India’ cam-paign will encourage usage of technol-ogy like latest community platforms which will enable better shipment visibility and reduce inventory costs. Administrative costs will go down as the duplication of data entry will be eliminated. Technology adoption and infrastructure development expected to be brought about by the ‘Make in

India’ campaign will make the Indian logistics industry globally competitive.

Increased focus on making India an automotive manufacturing as well as export hubThe Indian government’s focus on mak-ing India an automotive manufactur-ing as well as export hub is drawing investments and attracting the atten-tion of automakers from around the globe. Global MNCs are setting up new plants and expanding existing ones to ramp up production in anticipation of a rise in demand, both in domestic and export markets. A lot of established players have also increased their focus on the export market.

Public-private investments in transport infrastructure Transport connectivity within India is still quite poor. Multiple initiatives to strengthen the same are in the process. However, there is a need for coordination between transport cor-ridors being promoted to maximise network integration and provide a major boost to economic activities. The PPPs are also expected to improve the quality of Indian automotive logis-tics operations through better speed and connectivity.

Entry of global playersSeveral global players view the Indian automotive logistics market favourably and have announced intentions to in-crease their capacity of transporting goods from/to Indian markets. Several large global logistics companies have entered India by the way of mergers

CoVER StoRY

“We can expect a paradigm shift in the quality and scale of logistics infrastructure due to advent of e-commerce business. GSt will also change the scenario in the logistics sector, creating a huge demand for Multimodal Logistics Parks and especially rail-connected Multimodal Logistics Parks.

P Alli Rani, Finance Director, ConCoR


with or acquisitions of Indian logistics com-panies and joint venture agreements.

Increasing number of multi-modal lo-gistics players The demand for multi-modal transport ser-vices by the end users is increasing, because it results in the reduction of overall transpor-tation costs and quicker movement of cargo. It also requires less documentation. Several Indian 3PLs have formed joint ventures with other global and local players so as to provide multi-modal logistics services extending to air, rail, road and water.

Increasing importance of JIT & Lean LogisticsJust-In-Time is the key element in lean logis-tics. It is a philosophy and a way of work-ing involving eliminating all forms of waste (where waste is defined as anything that does not add value in the production process and supply chain). JIT is aimed at reducing waste, maximising cost efficiency, and secur-

ing a competitive advantage in the process. JIT typically involves small lot sizes, short set-up and changeover times, efficient and effective quality controls, and most impor-tantly, designing the whole production pro-cess to minimise backups and maximise the efficiency of human and machine labour.

JIT supports lean manufacturing & logis-tics by reducing the inventory holding costs and ensuring visibility and availability of goods at the right time and place.

M a r i t i m e S e c t o r : K e y MegatrendsC apt . At u ldutt Sh a r m a , He ad of Operations, Sarjak Container Lines Pvt Ltd states, “The rapidly growing industrial sector, coupled with the healthy progress of the agricultural sector, has led to the rise of extensive supply chains across the country to facilitate sourcing and distribution of pro-duction. The distribution network in India comprises of multiple level of intermediaries.

Organisations find it increasingly difficult to work in such an intricate market. This is en-couraging many LSPs, who are experienced in complex logistics operations, to enter and gain a strong foothold in the market. Moreover, the trend of outsourcing logistic activities to organised third-party logistics (3PLs) is finding favour among domestic companies, as it leaves them free to focus on their core competencies. Foreign companies doing business in India prefer to outsource all their major logistics requirements due to the unfamiliarity with the local policies, regulations and market.

He continues, “Logistics companies are taking to expanding across geographical boundaries, a trend that is expected to gain much importance in the years to come. 3PL is anticipated to increase in future as col-laborating efficiently and strengthening al-liances are two factors which are expected to be looked up in the logistics industry. It is notable that companies with specialisations have excelled to a considerable extent in the logistics sector. However, success of these companies will be determined based on how effectively these companies make use of the opportunities available to them. Studies re-veal that logistics capability is related to a firm performance in the market, and is not affected by logistics outsourcing.

“The transportation sector is evolv-ing with multimodal transportation solu-tions being set-up and the development of inter-modal transportation infrastructure facilities. Dedicated Freight Corridors by the railways and improvements in coastal shipping facilities along with the construc-tion of massive state-of-the-art logistics parks at key distribution hubs are helping

CoVER StoRY

According to a market research data, e-commerce business is expected to grow to $220 billion by 2025 with a CAGR of 12 per cent. Based on the requirement of e-commerce business, the service providers require separate set of capabilities, which is different from conventional B2B distribution model.

Samik Chakraborty, Business Head East, DIESL


CoVER StoRY

AMP is the collective vision of GoI and Indian Automotive Industry on where the vehicles, auto components, and tractor industries should reach over the next ten years in terms of size, contribution to India’s development, global footprint, technological maturity, competitiveness, and institutional structure and capabilities.

Sushil Rathi, Chief operating officer, Mahindra Logistics

to meet the specialised warehousing needs of industries. The non-major ports are driving the traffic growth, with traffic at these ports growing at a very healthy rate. This strong growth is expected to continue, with the share of the non-major ports increasing further.”

Indian Railways Sector: Key Megatrends P Alli Rani, Finance Director, CONCOR affirms, “Firstly, we anticipate a paradigm shift in the quality and scale of logistics infrastructure due to the advent of e-commerce business. Secondly, GST is round the corner and is going to change the scenario in the logistics sector, creating a huge demand for multimodal logistics parks, especially rail connected multimodal parks. Thirdly, Dedicated Freight Corridors. DFC may open completed sections for rail transportation before it is ready to flag it off in its entirety. These three mega events would roll out in such a way that two definite outcomes will happen - one, the volumes for logistics would go up as never before and two, the cost for logistics would come down. It will again be driven by large scale economies. In India, logistics has been fragmented. You

will have to go to different logistics players for different logistic services. That’s something which is going to be in the past now. Soon you will find a single window available for all kinds of services available under one roof like warehousing, distribution, packaging, transport services – rail, air, road etc.”

Cold Chain Sector: Key Megatrends Mihir Mohanta, General Manager, Supply Chain, Mother Dairy stresses on the trends in the Indian cold chain industry and he indicates a shift from single commodity uses like potato based cold store to multi-commodity uses cold stores. He says, “The distribution of fruits and frozen products are on the rise. There is also increase of imports of fruits like apple, orange, kiwi and other temperate fruits. The number of frozen peas units has also gone up to about 60. The quantum of frozen peas processed today is about 1.2 lakh mt. Similarly the frozen sweet corn production in the Pune area has gone up to about eight units which used to be only three units ten years ago. Grapes exports from India to Europe, Middle East & Russia is on the rise.” He continues, “Another trend that is catching up is small cold stores of the size 10-50MT. These are particularly utilised for short haul distribution for largely medicines or used as ripening chamber for fruits. A pattern of 200-500MT capacity of cold chambers is increasingly in demand for better capacity utilisation and savings on power cost. These facilities would im-prove the quality of the food/drugs delivered to the consumers. This would further improve the availability to rural towns.”

current challenges hindering the growthLogistics SectorLogistics industry is currently facing various major challenges like uneven taxes across the states, poor infrastructure, logistics and transportation, high cost, lack of financial support by banks, and so on. Commenting on the same, Bohm whines, “An unorganised sector and limited availability of skilled human resource make the job much tougher. Inter-state trade is a complex and critical issue, thus one has to have a registered warehouse in each and every state. This increases the cost of doing business and brings in much inefficiency. The lack of sound inland transport infrastructure – national and state highways, port infrastructure, dedicated logistics parks and world-class warehousing facilities, have been hindering the growth of

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CoVER StoRY

In India, we are already very late in the introduction of Single

Window system and this is the main cause of delay. our trade

partners are not ready to accept 24x7 workings of customs and

regulatory authorities, as they think it will add up to their costs.

K S Kunwar, Director General, Air Cargo Forum India (ACFI)

the industry for a long time and need im-mediate attention.

According to him, “The lack of alterna-tives for inland transportation creates a lot of pressure on state and national high-ways resulting in higher cost and transit times. The industry in India is dominated by unorganised players resulting in high barriers to enter new technologies and in-novations, potential investments and global supply chain models. These components are a prerequisite for a successful supply chain model and therefore affects operational ca-pabilities. The industry is facing shortage of skilled human resource with sound opera-tional and technical knowledge of supply chain management and practices, which in-turn make it difficult to employ the lat-est technologies to benefit the customers.”

Stressing on the e-commerce market, Martyn–Fisher explains, “The e-commerce industry has disrupted the market. It has brought about its fair share of challenges into the Indian logistics industry, which re-quire immediate attention, with the critical ones being: the high cost of entry, result-ing from the soaring and differential real estate prices across country. This levitates the cost of warehousing as well, which is a critical element of the logistics industry.

“With 65 per cent of freight moving on road, transportation delays which, not just impacts the transit time, but also add on the costs. Truck delays by five to seven hours at inter-state checkpoints combined with other delays due to road blocks, tolls, stoppages etc., keep the trucks from mov-ing during 60 per cent of their transit time. Curbing just these road blocks could cut freight time by 20-30 per cent and logistics cost by approximately 30-40 per cent.

“These high cost and delays are also a result of high regional concentration of manufacturing and geographically diver-sified distribution activities and customer base. This variance and many other fac-tors create high degree of unpredictability and variability, which according to World Bank, further pushes the logistics cost by two to three times of the global benchmark.

Adhoc taxes levied at the central and state level have contributed largely in the costs surging on the warehousing and lo-gistics. Unorganised activities in the sec-tor are growing mainly due to the taxes. A unified tax structure is one of the solution to reducing warehousing prices, logistics costs and unorganised activities in this sec-tor; exactly why Goods and Services Tax reform is critical for India”

On the other hand, Anand insists that poor quality of warehousing activities, lack of trained manpower and higher dwell time are the main challenges. He continues, “The main challenge is the quality of warehous-ing, which is the most significant aspect of a distribution system, is of very low stan-dard. The overall design and smaller sizes also add up to the inventory cost. This is the reason why we are investing in large Multi-Client Site (MCS) warehouses. The other challenge is transportation. Most of the long-haul transport vehicles in India have very low carrying capacities. This is why we are investing in large capacity long-haul vehicles. On an average, the waiting time at state borders is six to seven hours and then there are waiting at toll gates as well. Compared to western countries, where cargo carriers move at an average speed of 60-70 kmph, in India they move at 30-40 kmph, which delays delivery of

• Online selling of cars and two-wheel-ers – This will necessitate expertise in ecommerce logistics along with automotive logistics.

• Electric/Hybrid cars – With the increasing awareness about sustain-ability, environment-friendly alterna-tives like electric / hybrid cars are gaining popularity and hence, LSPs need to gear up for handling them.

• Adherence to CMVR (Central Motor Vehicles Rules) – CMVR has laid down rules related to safety and size of car carriers which will be mandatory for automobile logistics users and provid-ers to follow. Once fully implemented, these rules will require new capacity to be created which are CMVR compli-ant. In the short term, there might be a huge gap in the supply of such car-riers. Hence, OEMs and LSPs need to planjointly to address this issue and bridge the deficit.

• Liberalisation of import of CBUs (Com-pletely Built Units)

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CoVER StoRY

E-commerce and pharma are two key segments that are growing

rapidly. use of technology and automation in logistics will play a

key role in changing the face of the industry in the coming years

and hence will be a space to watch out for.

Anand Yedery, Regional Cargo Manager–South Asia, Middle East & Africa, Cathay Pacific Airways

cargo. All this adds up to the overall logistics cost. The recently launched e-toll collection system is one positive step towards bring-ing down average transportation time in the country.”

Anand further adds on, “Moreover, there is a scarcity of quality manpower in the sec-tor. Most of the companies in India hire qual-ity manpower for manufacturing, however, when it comes to logistics and warehouse management they don’t care about quality since they consider this to be non-core to the overall production cycle. This is the rea-son why we are putting in a lot of effort on manpower training. Another challenge for the sector is application of information tech-nology (IT). In India, the use of IT for inven-tory and warehousing management is still very low and things are managed manually, which means the efficiency level remains low and a lot of time is wasted. Despite the slow progress in terms of infrastructure develop-ment, we ensure that we continue investing in setting up our facilities.”

In the meantime, Chakraborty suggests solutions and says leveraging the railway net-work and creation of more freight corridors are required along with encouragement to PPP projects.

He explains by citing figures, “The 65,000 km long railway network of India is one of the largest in the world, but other than bulk cargo (majorly coal), commercial usage of railway is limited. Improving the capacity of the major ports is also an area of improve-ment. India’s 7,500 kms long coastline and inland waterways are definitely areas from which the logistics industry could benefit. Waterways are the cheapest mode of trans-portation but as the minor ports are not well-equipped the 12 major ports of India stay

congested handling traffic beyond the limit and face higher turnaround time of vessels. Government recently announced an invest-ment of `1 lakh crore to increase the port ca-pacity from the current 1,400 million tonnes to 3,000 million tonnes by 2025. Road trans-portation may not be the cheapest is still its most acceptable mode of transportation in India. The national highways constitute only 1.7 per cent of the Indian road network but carry 40 per cent of the national traffic. The speed of highway expansion has to be faster with simpler interstate documentation and regulations.”

Gathering important facts and figures

from what experts have mentioned above, Sivan underlines some of the key challenges:1. High Logistics Costs – Logistics costs is

estimated at 14 per cent of GDP, compared to other countries, this is high and affects the competitiveness of India. For sectors like automotive, logistics cost can be as high as 30 per cent and could have significant impact on competitiveness.

2. Tax Structure – Lack of uniform taxes across states complicates movement of freight across the borders, thus increasing costs and frequent delays in freight deliveries.

3. Lack of Single Window Clearance – Indian ports perform poorly in terms of customs clearance and other administrative procedures associated with loading and unloading in ports causing significant delays in freight movement across states.

4. Logistics Infrastructure – Lack of cold storage and warehousing, increasing congestion in ports adding to cost.

5. Regulatory environment is complex and lacks transparency resulting in administrative delays in approvals and clearance.

6. E-Commerce Logistics – With the evolving nature of e-commerce, last mile delivery remains a key challenge for many e-commerce companies.

Air Cargo SectorThough air cargo sector is fast adopting lat-est technologies and welcoming whopping investments from Indian and foreign players, it is still struggling with few issues which need immediate government attention. Kunwar underlines: 1. Our regulations, policies and procedures

govt

announced an

investment of

`1 lakh crore

to increase the

port capacity.


CoVER StoRY

Megatrends will shape countries and businesses as well as many

other industries over the next few decades. the global population

is expected to increase from 6.9 billion people in 2010 to 8 billion in

2025, with growth found almost exclusively in developing countries.

Vikas Anand, Managing Director, DHL Supply Chain

are framed with a mindset which is cumbersome, complicated and protective.

2. Government policies are outdated like Customs Act 1962 need sea changes keeping in mind the requirements of the modern world.

3. In this electronic age, EDI, e- trade and e- freight are common tools in the international trade and commerce and the world believes in paperless transactions saving lots of time. However, we still believe in hard copies in spite of our IT Act 2000.

4. Dwell Time of import and export cargo is high at Indian airports which is ranging from 4-5 days for imports and 36-48 hours for export against maximum 12 to 18 hours for both import and export cargo worldwide.

5. Main causes are free period of 72 hours given to both import and export cargo by the government, delay in clearance, late filing of papers by importers/agencies and late payment of customs duties.

6. Single Window system is yet to happen and is the main cause of delay.

7. Our trade partners are not ready to accept 24x7 workings of customs and regulatory authorities as they think it will add up to their cost.

Yedery shares, “Complicated and incon-sistent regulatory processes and proce-dures, high taxes raising operating costs, sub-standard infrastructure and unavail-ability of trained resources are the basic challenges faced by the air cargo industry in India and the same have been raised on various forums.”

Veteran freight forwarder, Bharat J Thakkar, Co-Founder & Joint Managing Director, Zeus Air Services Pvt Ltd, who has been significantly contributing to the air freight industry since last 43 years talks about the boost in e-commerce industry and its progress. He opines, “It is amazing the way globally retail high street shops that are closing due to e-commerce boom, for ex-ample Radio Shack in the USA, Mexx fash-ion, Target Stores in Canada, Jacob clothing closed over 200 retail outlets and will offer via e commerce only. E-commerce companies like Ali Baba invest billions in logistics; La Poste in France certifies itself as an IATA freight forwarder. This scenario is no dif-ferent in India. It is matter of time before the post offices take over, the lower part of supply chain completely and the integrators the higher part. This will cause more threat and grief to forwarders and scheduled air-lines. In the logistics chain, the new reality will be Shipper - post office or Integrators - consignee and the scheduled airlines and forwarders will lose out.

“In the next few years, there will be changes in the world of airfreight in the form of e-commerce, staff turnover, competi-tion and belly capacity, this may be coming

faster than shippers, forwarders, carriers and airports are prepared for the biggest disap-pointment because of their lack of interest, current supply chain professionals are show-ing for training the next generation. One of the most important innovations for which we are largely unprepared is e-commerce business, most of which is going to the inte-grators. While forwarders and airlines keep blaming each other and refuse to change, the logistics and transportation space is going to be taken over by the likes of Amazon, Google, Uber etc., as my pears warn ‘watch it is mat-ter of time.’

Those who control the last mile delivery will be the winners of the future. In some places, such as Shanghai, e-commerce facili-ties are located next to airport with a sched-uled airline in the working in tandem, others airports will follow the model soon. The effect of e-commerce will affect our operations.”

Thakkar continues and stresses, “Excess capacity is another long-term problem that must be addressed. Totaling up the back-log of production of freighters, we find 230 wide-body freighters coming on stream in the next three years, using a modest market growth of less than three per cent. It looks as if there will be excess main-deck capacity in the market during 2016. Passenger growth has increased steadily since 2008, due to ris-ing travel by middle class in Asian countries, which has added to the demand for more air-crafts with belly space. It is estimated that the wide body aircraft ordered will add belly space equivalent to 450 777Fs. Over 3rd E U carriers would not have benefitted without cargo revenues. The ultimate effect of these trends appears to be the inevitable exit of all-cargo carriers. Belly capacity will determine the future.”

With the

evolving

nature of

e-commerce,

lmd remains a

key challenge.


CoVER StoRY

the trend of outsourcing logistics activities to 3PLs is finding favour among domestic companies, as it leaves them free to focus on their core competencies. Foreign companies doing business in India prefer to outsource all their major logistics requirements due to unfamiliarity with the local policies, regulations and market.

Capt. Atuldutt Sharma, Head of operations, Sarjak Container Lines Pvt Ltd

Automotive SectorRathi says the key challenges faced by the automotive industry are in its fragmented and unorganised nature, insufficient and inefficient transport infrastructure, trade regulations and bureaucratic policies, lack of adequate skilled manpower and training institutions, poor warehousing and storage facilities, reluctance to adopt technology, etc.

Rathi states, “Factors that are affecting the truck transport in India include low capacity utilisation, poor road quality, ve-hicle overloading, high transit times, and issues like road safety and obstacles to free movement. Truck accidents and fatalities are dangerously common and frequent. Enforcement of overloading and licensing regulations are not being sufficiently done and there are no incentives for using multi-axle trucks. Fluctuating fuel prices and high toll charges increase the running costs of the trucks. Tyre maintenance is also major factor in deciding operator profit.

“Over-dependence on roadways as a mode of transport is another problem faced by the Indian automotive logistics industry. Lack of suitable rail infrastructure is also driv-ing the growth of road freight. Sub-optimal rail capacity, difficulty in last-mile reach and commodity-dependent cost economics have been pushing the share of road from around 60 per cent in 2005–06 (in BTKM units) to more than 64 per cent in 2009-2010. For in-stance, when a customer outsources their transportation requirements to 3PLs like us, even if we were to look at including railways as one of the modes of travel, we would end up using road for point-to-point connectiv-ity, reducing overall cost efficiency. The first mile and last mile connectivity, and the in-

frastructure available with railways inclu-sive of customised wagons etc., are the key constraint which is why we are not able to use railways effectively.”

Indian Maritime SectorTalking about the Indian maritime sector, Sharma says the key challenges are lack of human resources followed by infrastructure in terms of logistics, power, and water.He reiterates, “Infrastructure is one of the biggest challenges faced by the Indian lo-gistics sector and has been a major deter-rent to its growth. Infrastructural problems like bad road conditions, poor connectivity, inadequate air and sea port capacities and lack of development of modes of transport like railways and alternates like inland water transport and domestic aviation have been constant irritants. Due to the infrastructural

bottlenecks, costs per transaction in Indian logistics sector, is very high as compared to those in the developed markets. Less econo-my of scale due to high fragmentation of in-dustry, lack of skilled labor and manpower are also one of the major challenges for the lo-gistics sector. Indian subcontinent faces dif-ferent challenges vis-a-vis developed nations. In foreign countries the problem is demand; in India, demand management has been a great challenge. India still has a long way to go in terms of best practices. Maturity level of most of the companies on demand driven value network is low.”

Challenges Faced by Cold Chain SectorMohanta adds, “The distribution of cold stores in India is skewed. These are largely concentrated in UP, West Bengal and Punjab.

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CoVER StoRY

Make in India opens up new market opportunities for industrial expansion in both traditional and hi-tech industries. the Government reforms are targeted towards removing restrictions on business environment to improve Ease of Doing Business which will make India more attractive for international investment.

J Sivan, Senior Consultant, Supply Chain & Logistics transformation Practice, Frost & Sullivan

Around 65 per cent of India’s cold chain stor-age capacity is contributed by the states of Uttar Pradesh and West Bengal. Further, if you analyse the commodity wise storage ca-pacity, you will find that major cold storages have been set up to cater to single commodi-ties and this creates a bottleneck for other perishables. With the rising real estate price, the cost of setting up a cold storage units is also rising. In India, the agri-supply chain is poorly integrated, posing challenges at each step. There are huge gaps in the system, both in terms of capacity and integration. Critical linkages like reefer transport and on farm in-frastructure are almost non-existent.”

Experts Opine: Solutions & Way OutIndian logistics industry definitely has a long way to go. Be it air cargo sector, maritime sector, railways or road, significant develop-ment has been witnessed by the industry as a whole in the last few years. Though, there’s progress happening, there are certain issues

as well which hinder the growth of indus-try like inadequate infrastructure, lack of trained manpower, GST implementation, under-utilisation of resources to name a few however, experts from varied walks of life suggest some apt solutions to improve the current situation.

Logistics Sector: SolutionsBohm figures out, “First, GST implemen-tation within earliest possible time frame should address the uneven tax structure challenge as it will bring the entire country under a common tax umbrella to enable the free flow of goods across India. Also, this will reduce the paperwork and waiting periods for operators, and will make India a single market which is easy to access and operate. Second, from an infrastructure standpoint, development of roads, state and national highways will increase the average speed and reduce fuel consumption, thus saving the cost of logistics. Port infrastructure should be upgraded to handle more capacity and reduce the turnaround time as per global standards. New dedicated logistics parks, SEZs and warehousing zones near the tran-sit area will significantly improve efficiency and coupled with GST implementation, will bring huge cost benefits to the logistics in-dustry and end users.”

Appreciating the recent budget session, Bohm says, “The recent budget has done a remarkable job in providing a large scale boost to infrastructure projects which will certainly address the above mentioned chal-lenges and spur growth. Granting indus-try status to logistics companies will solve the problem of an unorganised sector since there will be lot more benefits in terms of FDI, more favorable policies and incentives

from the governments. Skilled human re-source problems can be addressed with the industry-government collaborative efforts by introducing in-house training centers and supporting the skill development centers for logistics.”

On a positive note, Martyn-Fisher says, “At a macro level, policy reforms, improved infrastructure, technological advancements with integrated and enhanced warehouse and transportation management systems for more agility and predictability are key to improve cost effectiveness and develop an efficient logistical environment. The logistics industry is in the state of positive transition with such reforms and changes already in pipeline. However, such changes are gradual and long term. Few of them are:• I nte r n a l ly d eve loped i nte g rated

technologies;• Leveraging our multimodal and global

network for express, air and ocean transportation options

• Supporting the customers through a solution-oriented approach.”

Meanwhile, Anand affirms, “It is important that private companies take the mantle to in-vest and change things to make a difference. In fact, the government has announced several measures in developing ports, roads and also in setting up a dedicated rail freight corridor. This, we believe, will strengthen the scope for logistics players to further invest in making India a strong trading hub. A little regulatory boost would go a long way in helping build world-class supply chains in India. Delays which increase cost and lead to the wastage need to be addressed even more aggressively by the industry and the regulatory authorities. Tax breaks, encouragement of FTZs, added focus on the sector to make it even more or-

gst will bring the

entire country

under a common

tax umbrella to

enable the free

flow of goods

across india.


CoVER StoRY

Small cold stores of the size 10-50Mt are new in India. these are utilised for short-haul distribution of medicines or used as ripening chamber for fruits. these facilities would improve the quality of food/drugs delivered to the consumers. this would further improve the availability to rural towns.

Mihir Mohanta, General Manager, Supply Chain, Mother Dairy

ganised, development of world class ports, expressways, e-tolls, single window clearance etc., are all steps in the right direction. Apart from the above, developing industry-ready tal-ent and making logistics an attractive sector for graduates should be the top agenda of every logistics player in India. Above all; a workable GST that could be implemented at the earliest would provide a solid boost to the logistics in-dustry and the economy of India.”C h a k r a b o r t y a l s o s u g g e s t s s o m e imperative solutions:• More Dedicated Freight Corridors

(DFCs) and coastal corridors could be created which can be supported by cargo handling capacity and operations. This can be achieved by higher level of privatisation. The road to rail balance in logistics can help the industry to optimise the cost. Presently, almost 60 per cent of the cargo is shipped through road which should ideally be evenly shared with rail in next few years.

• The highway expansion plan should be consolidated and executed faster. The highways should be well connected with all the DFC’s.

• Development of state highways and

district roads are important for last mile deliveries. The road maintenance contracts should be made for longer stretches. Again, more private investments should be encouraged to enable this.

• Backing the service providers with policies and rebates to create logistics parks with multimodal transportation facilities.

Observing the same, Sivan, lists down some solutions for the logistics industry which may help to bring a change in the coming years:1. Allocate more funds and encourage

alternate funding options: Lack of funds is one of the factors affecting the transportation in frastr ucture development which requires huge investment to improve and modernise e x i st i n g i n f r a st r uct u r e . P ubl ic-private partnerships for logistics and infrastructure development are an important source through which the government can fast track project clearance and implementation. For this to be successful, transparent regulatory environment and easing of administrative bottlenecks are critical.

2. Reduce Administrative Burden: 24*7

availability of services and facilities including customs clearance is important for quick processing and clearance of export and import cargo. Process simplification needs to be addressed to reduce transaction costs. Greater accountability and transparency by the regulating agencies and paperless clearance process is expected to reduce the speed of customs clearance.

3. Land Transport: The government expects the freight tons per kilometre to grow 6.5 times between 2012 and 2032. To meet this target, road transport congestions and modernisation related projects should be given priority to increase efficiency, reduce cost, and upgrade tolling stations. Rail freight has been losing share in land transportation. By offering competitive freight rates and providing supportive infrastructure, share of rail in freight transportation can be increased.

4. Port Congestion: Steps need to be taken to improve dwell time, policy changes should be oriented towards making free movement of goods through any port, traffic restrictions need to be relaxed for prioritised consignments, technologies need to be upgraded and aligned with international ports.

5. Air Transport: Increase in dedicated cargo terminals in major airports, increased number of air freight stations, adoption and implementation of the IATA initiative of paperless for the air cargo supply chain etc., to reduce delays.

Air cargo sector: Solutions Kunwar shares some significant solutions for the air cargo sector: a) Remove free period of 72 hours for both


import and export cargo and give maximum 12 hours.

b) Bring drastic changes in the Customs Act 1962 as per the requirement of the time.

c) Make the AEO policy attractive and beneficial to the trade.

d) Make customs RMS more attractive. The withdrawal/suspension of RMS to be affected only when the violations/defaults are proved and penal actions are initiated.

e) Trained staff of customs and other regulatory authorities to be posted for 24x7 operations for both imports and exports.

f) Amendment procedures in import for part-shipment/short landing to be made online with decentralised delegation of powers so that advance filing of Bills of Entry is encouraged.

g) Known shipper and regulated agents’ policy of BCAS to be made more simplified and attractive so that there are takers for this concept and the movement of export cargo becomes faster and cost effective.

Focusing on the air cargo sector being award-ed ‘Industry Status’ Yedery insists, “Air Cargo being accorded ‘Infrastructure’ status as per the Draft National Civil Aviation Policy 2015 means a positive step forward once the policy is formally passed and implemented. A lot of investment in the form of time, expertise, au-tomation and money along with patience will be the key to overcome the challenges.”

Railways Sector: SolutionsRani avows, “We are one of the front runners here as we have already acquired adequate land where we are setting up large scale Multimodal Logistics Parks to provide a one stop solution for all kinds of logistics ser-vices. The first stage is getting the land and setting up infrastructure. The state govern-ments have been very supportive. Firstly, we have to create suitable state-of-art infrastruc-ture which involves huge investment. We have taken major steps and completed few LPs. Now we are in talks with our custom-ers to ensure what we are making ultimately suits the requirements of customers. We have to tailor our infrastructure according to the needs and requirements of the custom-ers like specialised processing, packaging, warehousing etc.”

Automotive Sector: SolutionsRathi highlights some solutions: 1. 3PLs who provide end-to-end integrated

supply chain solutions can change the fragmented and unorganised nature of the Indian logistics industry.

2. G o v e r n m e n t i n i t i a t i v e s fo r t r a d e liberalisation and logistics infrastructure development as mentioned earlier are also

expected to resolve the issues related to trade bureaucracy and infrastructural bottlenecks.

3. Ph a s i n g out o f old c om me r c i a l vehicles will not only reduce pollution but a lso smoothen out transport operations in India.

4. Focus on development of transporters and drivers are another important solution which will go a long way in ensuring the real growth of the Indian automotive industry.

Maritime Sector: SolutionsSharma suggests few imperative solu-tions for the problems faced by Indian Shipping industry:

He says, “The transportation market in India is expected to continue offering signif-icant opportunities to all concerned stake-holders. However, for the sector to reach its full potential, the timing and economics would depend on how the various drivers and inhibitors evolve in future. While the qual-ity of road infrastructure is certainly likely to improve, the pace of infrastructure devel-opment is critical to minimise losses, both economic and environmental. In particular, delays in meeting project timelines should be minimised, given that only around 52 per cent (10.39 km as against the target 20 km in 2011–12) of the daily target of average road length to be constructed has been met. However, not only has the demand for road connectivity been rising, but focus on improving basic road infrastructure as well as technology adoption has also increased in recent years. The number of expressways and highways has increased; many roads have been widened; electronic toll collection is becoming increasingly common; the ‘green channel’ concept is gaining ground, and inter-state check posts are becoming au-tomated, with Gujarat serving as an example.”

Cold Chain Sector: SolutionsMohanta suggests, “Stringent implementa-tion of Food Safety (FSSAI) regulations is indirectly forcing food companies to rede-fine their cold supply chain strategy. What India needs is the spread of the cold chain facilities, cold chain/ transport linkages and retail level cold chain dispensing mechanism. Smaller units with low capital intensive and energy efficient storage would be more ap-propriate. These would improve capacity utilisation and can become viable. Use of so-lar energy is another area which could play a big role in promoting low cost cold chain.”

1. High Logistics Costs – Logistics costs is estimated at 14 per cent of GDP, compared to other countries, this is high and affects the competitiveness of India. For sectors like automotive, logistics cost can be as high as 30 percent and could have significant impact on competitiveness

2. Tax structure – Lack of uniform taxes across states complicates movement of freight across the borders, thus increasing costs and frequent delays in freight deliveries

3. Lack of Single Window Clearance – Indian ports perform poorly in terms of customs clearance and other administrative procedures associated with loading and unloading in ports causing significant delays in freight movement across states

4. Logistics Infrastructure – Lack of cold storage and warehousing , increasing congestion in ports adding to cost

5. Regulatory environment is complex and lacks transparency resulting in administrative delays in approvals and clearance

6. E-Commerce Logistics – With the evolving nature of e-commerce, last mile delivery remains a key challenge for many e-commerce companies

chALLenges in LOgisTics indusTry

CoVER StoRY


cabotage

Much Uproar in Shipping Industry

Under the Merchant Shipping Act 1958, the cabotage policy in India offered prefer-ence to the Indian flagships over cargo and foreign ships; they were allowed only when no suitable Indian flag vessel was available. With the new amendment which calls for the relaxation in cabotage law, vessel operators will be allowed to bring foreign flagged vessels on coastal routes. Shikha Sourav brings in the reaction of experts on the cabotage relaxation law in Indian shipping industry

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the cabotage policy plays a vital role in the coastal shipping of a country. Cabotage means reserv-ing the coastal trade for national f lag vessels. Cabotage restrictions are applicable in most

countries to protect the domestic shipping industry from foreign competition as well as for the purpose of national security. However, many countries like Indonesia and Malaysia have relaxed their cabotage policy and many others are following their footsteps.

Despite the fact that India has a great mar-itime tradition and a long coastline of about 7,517 kilometres with 13 major ports and 200 notified minor and intermediate ports, the prospect of coastal shipping has not been potentially explored. To deliver the potential success in this sector, the Union Shipping

changes are brought in the regulation of the coastal shipping lines. The provisions are: 1. Relaxation in cabotage restrictions for

ports which tranship at least 50 per cent of the container handled by them.

2. It will enable shipping lines to consolidate Indian EXIM cargo and empty contain-ers at transhipment ports in India for the transportation to destination ports by the main shipping lines.

3. With the cabotage relaxation, foreign ves-sels can transport EXIM cargo and empty containers from any port in India to tran-shipment port and vice versa.

hub-and-Spoke Transhipment ModelHub-and-spoke is a system of distribution of cargo in which the items to be distributed are routed in/out through a central point. The official estimates bring clarity in the picture

of the cargo transhipped through International hub ports and do-mestic hub ports. Accordingly, now, about 34 per cent of Indian cargo is transhipped through international hub ports such as Colombo and it results into loss of revenue for Indian ports as well as incur high costs on the customer side. According to maritime ex-perts, it is difficult to foresee the acquisition of sufficient container

ships by Indian companies. Though it is argued that the relaxation will

upset the growth of the Indian shipping in-dustry, but in the longer run, it can create de-mand for the coastal shipping which would be extremely beneficial for the economy. There is an absolute requirement of an internal hub and spoke model which will allow smaller ports to feeder cargo to the hubs. But, under-developed ports and lack of sound infrastructure has cre-

Ministry has recently announced relaxations on the cabotage restrictions for container tran-shipment port. Speculations are that this will help to promote transhipment at Indian ports upto a great extent.

Cabotage Law: Key Points The Parliament of India has amended the Merchant Shipping Act 1958 in March 2016 under the Indian Waterways Bill. Through this game changing move, various significant

SPECIAL FEAtuRE

ated the situation where the Indian ports are incapable to compete with the region-al hubs such as Dubai, and Colombo.

While addressing the business class at an event held recently in New Delhi, Nitin Gadkari, Union Minister for Transport shared his vision to transform India’s waterways and said, “We will set up 2,000 water ports and Roll-on-Roll-off (RoRo) services at five select places in India to transport goods and vehicles across India. The country has huge po-tential for water transport. Under this project, Varanasi, Haldia and Sahibganj will be developed as multimodal hubs with roadways, waterways and railways.”

Uproar in the Shipping IndustryThe Indian National Ship Owners Association (INSA) considers cabotage

relaxation law as a major reason for low investment in coastal shipping. They strongly opposed the move of relax-ing the cabotage law and argued that the cabotage relaxation will not give a level playing ground to the Indian Ships. Disappointed with the move, Captain Vivek Anand, President, Nhava-Sheva Ships Agents Association, Mumbai re-acts, “The relaxation should have been for all types of cargo and not restricted to containerised cargo which would have brought in competition and would have led to the lowering of logistics cost to the economy. In the present context, Indian ship-owners do not want to engage in coastal movement and they do not want anybody else to do so either, which does not fit in with the norms of a liberalised economy and hence is not conducive to promote trade. The relaxation of cabo-tage seems to be taken essentially from

BINAIFER JEhANI, DIRECtoR, InDuStRY AnD CuStoMISED RESEARCH, CRISIL

While the intentions and objectives of relaxing cabotage

are positive for Indian container trade in general, the

suggested terms and modalities indicate significant

challenges for the relaxation to take off meaningfully."

300

Utilisation at major ports, by commodity

Source: Indian Ports Association, CRISIL, KPMG in India analysis

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a port operator’s perspective and not from a shipping line’s perspective. A port operator cannot decide transshipment of containers unless he engages the shipping lines and their respective customers’ to do so. Eventually, it

He continues, “The main point of conten-tion in the new rule relates to a stipulation that once cabotage relaxation is granted to an existing container handling port, it should be able to transship at least 50 per cent or more

of the total containers handled during the first year, while a new port will have to do this level in the second year after a gestation period of one year. Otherwise, the relaxation granted would be revoked and the ports will not be considered again for such relaxation for the next three years. But, even after cabo-tage is relaxed, we cannot expect that foreign container lines will immediately start using the relaxation on a large scale. Many factors such as container volume available, depth restrictions, facilities available at the Indian transshipment hubs compared with those at nearby foreign transshipment hubs and regulatory issues will decide the deployment of foreign container ships for moving trans-shipment containers along the Indian coast. Global container carriers have been lobbying with the government for relaxing the cabotage law, arguing that lack of adequate Indian ships was hindering the growth of transshipment ports that need large volumes to attract main-line container ships with bigger capacities.

Overall, the government has taken a step in the right spirit but would need further tweaking on the law in order for it to be successful at the ground level.”

Binaifer Jehani, Director-Industry

and Customised Research, CRISIL shares another approach, “The inclina-tion of ports with larger container traffic (having strong hinterland based volumes) to apply for a transhipment port status may be limited due to the high threshold of transhipment container traffic that is entailed e.g. JNPT, which handled around 4.1 million TEUs (till February 2016) might need upward of 2 million TEUs of transhipment traffic in the very first year to continue with the status of tran-shipment port. On the other hand, ports with lower container traffic volumes have a lower transhipment traffic threshold and so might feel encouraged to pursue the strategy of becoming transhipment ports. Similarly, greenfield ports can also benefit due to the one year gestation peri-od provided. Clearly, the government has placed the onus of applying for tranship-ment port on the port itself and which ports decide to apply for the same is a

remains a half-baked solution for a complex business problem.”

However, Capt. Atuldutt Sharma, Head of Operations, Sarjak Container Lines Pvt Ltd shares a different point of view about the amendments in cabotage. According to him, “The relaxation in the cabotage law is wel-comed by one and all in the Shipping Industry as this was something which was really the need of the Indian Shipping industry for a long time. Whilst the intention of the government is very well-appreciated, the existing policy has some inherent clauses which will make the policy very difficult to carry out and succeed. The purpose behind the government’s objec-tive of cabotage relaxation is to attract Indian containers transshipped through foreign hub ports to Indian ports. However, the conditions imposed for availing cabotage relaxation are so stringent and unrealistic that none of the existing ports/terminals/new ports will be in a place to meet them. Thus, the entire move will be hit a road block in the first phase itself.”

CAPT ATULdUTT ShARMA, HEAD oF oPERAtIonS, SARJAk ContAInER LInES PVt LtD

Even after cabotage is relaxed, we cannot expect that foreign

container lines will immediately start using the relaxation on

a large scale. Hence, sufficient time should be allowed for the

cabotage relaxation policy to succeed."

about 34% of indian cargo

is transshipped through

international hub ports such as

colombo and it results into loss of

revenue for indian ports as well as

incur high costs on the customer

side.

SPECIAL FEAtuRE


focusing on how to lower and cut empty repo-sition costs,” says Sharma.

On the other hand, Jehani views that the cabotage relaxation will help to cut the dis-tance travelled by empty containers, with emergence of transhipment hubs across Indian coastline instead of transhipment hubs in the region. However, the real impact on move-ment of empties would depend on a number of factors such as real transhipment hubs and associated limits of those transhipment hubs such as the laden-empty profile, export-import mix near ports as well the empty repositioning hubs for global shipping lines participating in this movement.

ConclusionIn 1990s, the Indian economy opened the doors for the foreign competition as part of globali-sation. Theoretically, economics suggest that wherever restrictive practices prevail, there are chances of downward mobility in growth and

on a decline globally and profit margins are dwindling, control over such costs are impor-tant for any shipping line. However, on the flip side, no shipping line can live without repo-sitioning empty containers due to the nature of the trade in certain parts of the world. An ideal situation for a shipping line would be to move their boxes laden on all legs. Whilst this is possible on certain trade routes, this cannot be achieved on most trade routes. For example, there is a lot of demand of commodi-ties and various other cargoes into Africa but very little demand for any containers out of Africa due to lack of exports. This leads to a lot of equipment surplus in this region for all shipping lines and they do not have any option but to empty reposition their boxes to loca-tions where there are outbounds. Thus, empty repositioning costs are inevitable for any ship-ping line and all major lines have to account for them into their revenue model. However, due to the current scenario all lines are constantly

key monitor. In this background, the annual cycle of determining the transhipment status of the relevant ports can impact the planning cycles of global container shipping lines. This can act as a deterrent to adoption by such con-tainer shipping lines particularly given India’s proximity to established transhipment hubs as Colombo, Singapore and Jebel Ali. While the intentions and aim of relaxing cabotage are positive for Indian container trade in general, the suggested terms and modalities show sig-nificant challenges for the relaxation to take off meaningfully.”

Repositioning of Empty Containers and Revenue ManagementEmpty container repositioning costs today accounts for at least 22 per cent of the gross freight earned by shipping lines by moving laden containers. “As you can see, in the cur-rent market scenario where freight rates are

potential of that sector of the economy remains untapped. Cargo reservation has encircled the Indian shipping lines into a comfort zone. And this is why; the transhipment traffic and development in coastal lines are retarded.

The cabotage relaxation law has put the coastal trade, especially the container shipping sector to open competition with the foreign companies. Competition is expected to deliver reliability, quality, speed and reduction in costs. It will cut India’s dependence on Colombo, especially when the biggest terminal, CICT is con-trolled by a Chinese state-owned entity. It also entails the development of a major deep water port at Vizhinjam, a southern coastal town in the Indian state of Kerala which further means cost savings. On a whole it can be said that for the purpose of strategic and economic development, the relaxation in cabotage law is necessary.

CAPT VIVEK ANANd, PRESIDEnt, nHAVA-SHEVA SHIPS AGEntS ASSoCIAtIon, MuMBAI

The relaxation of cabotage seems to be taken essentially

from a port operator's perspective and not from a

shipping lines perspective."

Cabotage means reserving the coastal trade for national flag vessels. Cabotage restrictions are applicable in most countries to protect the domestic shipping industry from foreign competition as well as for the purpose of national security.

SPECIAL FEAtuRE

“Con

tinua

lly In

nova

tive”


FEAtuRE

Supply CHaIn ComplExITIES In EmErgIng markETS

Global economy is probably in the midst of its most defin-

ing churning with the arrival of new economic magnets re-

ferred to as emerging markets. But what does it mean for

the supply chain domain and how will it play out in the new

economic hotspots which have common as well as peculiar

problems of their own? Dr Kirti Mudgil Pathak with inputs

from industry experts underlines some of the key supply

chain challenges and their solutions which companies and

businesses will have to surmount in near future



FEAtuRE

Businesses have become more global as they outsource to a network of suppliers, factories, warehouses, trans-porters and others. Hence the supply chain process has become even more complex and vulnerable than in years past. Technological advances, particularly in information technology, the increase of intricacy and shrinking time horizons are driving changes in the

management of supply chains. Unfortunately, many businesses still apply outmoded processes and technol-

ogies to their supply chain operations. Often, existing systems are not capable of meeting modern demands, which can become a problem and result in higher costs and decreased efficiency. As an organisation’s logistics expand, so must its ability to quickly see the cost and service implications of every decision.

Though there are certainly a lot of success stories of outstanding supply chain integration, at the same time, there are also numerous cases of failures and breakdowns in integration. There are a few crucial challenges organisa-tions need to fulfill in order to accomplish real supply chain integration.

need of the Hour: Plan Demand BetterDiscussing what the arrival of new economic magnets or emerging markets means for the supply chain domain in general, Chander Agarwal, Joint Managing Director, TCI shares, “Emerging markets not only present huge opportunities, but also come with unique characteristics and challenges due to the constant for business growth, volatile demand and low maturity of supply chain processes. The ability to plan demand better is a tremendous ad-vantage, as accurate demand plans help supply chain leaders align end-to-end chains correctly, and forecast predictable outcomes and profitable responses to demand. In terms of challenges, developing talent in the region and adapt-ing the supply chain to local market needs are also major issues to be tackled. Businesses attempting to capitalise on demand from emerging markets can gain a competitive advantage by strengthening supply chain operations.”

Speaking on the same note, V Raju, Vice President – Logistics Parks & 3PL Contract Logistics, Adani Logistics Ltd opines, “Global economy is probably in the midst of its most defining churning with the arrival of new economic magnets referred to as emerging markets which are also eyeing for a global footprint apart from consolidating their position in their own backyard where intense competition exists. The tested supply chain formula in developed economies may not prove to be efficient in emerging markets with the same degree of success.”



FEAtuRE

B i g g e s t S u p p l y C h a i n ComplexitiesSupply chain managers have increasing challenges to meet and keep efficient and effective supply chain methods. Some of the biggest supply chain challenges are:Customer service – As economies around the world step back from the financial brink and begin adjusting to a new nor-mal, companies face a different set of supply chain challenges than they did at the height of the downturn. The toughest challenge is the increasing volatility of customer demand which is a result of the sharp drop in consumer spending that has reverberated throughout all sectors across the globe. Also, there is increasing pressure from global competition.

Supply chain management is all about providing the right product in the right quantity to the right place and the right time. Seems simple, but can get compli-cated quickly.Planning and risk management – In order to stay as efficient and effective as possible, periodic assessments and re designs are needed. These adjustments are in re-sponse to changes in the market – chang-es such as new product launches, global sourcing, credit availability and the need to protect intellectual property. These risks must be identified and quantified in order to control and mitigate.Supplier/partner relationship management – It is important to create, understand and follow mutually agreed upon standards to better understand the current perfor-

pressure by rising energy/fuel and freight costs, increasing labour rates, new regula-tions and rising commodity prices. Smart players are gearing up to face this in the current fiercely competitive scenario.

Agarwal says, “Service/ quality and cost control are the two most important factors necessary to ensure a smooth supply chain cycle. Today, the major competitors are the hyperlocal/niche players who are luring customers by giv-ing them cost advantage. They can afford to do so because they don’t have over-heads to work on. But, at the same time, as the markets are getting developed in various locations across the country; the need for a national, reliable and transpar-ent service provider is inevitable. It is a great challenge to maintain quality and cost simultaneously.”

Maintaining Flexibility and VisibilitySupply chains are becoming increas-ingly complex and dynamic with sourc-ing locations being changed increasingly quickly and purchase orders becoming smaller and more frequent. These devel-opments have their effect on day-to-day logistics and companies need to prepare for ‘the new normal’ in supply chain man-agement. Today’s logistics customers de-mand flexibility and visibility.

Differentiation in the global market-place has as much to do with what hap-pens in the supply chain as it does with product innovation. When the market dampens, businesses must instead meet their profitability goals by re-designing and enhancing their supply chains and then use those improved operations to deliver value-added services to more sophisticated customers. Increasingly, logistics leaders are charged with de-livering legacy products while also sup-porting the development, production and transport of new offerings. Flexibility: Meeting consumer’s require-ments at multiple locations with mul-tiple transport modes at different times requires a flexible supply chain that can adapt easily to unexpected changes and circumstances.Multi-channel sourcing: End-consumers increasingly source via multiple chan-nels, ranging from brick and mortar shops to e-commerce. The logistics in-

sOciAL mediA, mObiLe

TechnOLOgy And

Access TO infOrmATiOn

AcrOss every

imAginAbLe chAnneL

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cusTOmer which hAs

chAnged The dynAmics

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Chander AgarwalJoint Managing Director, TCI

Businesses at-tempting to capi-talise on demand

from emerging markets can

gain a competi-tive advantage

By strengthening supply chain op-

erations.”

mance and opportunities for improve-ment. Having two different methods for measuring and communicating performance and results wastes time and effort. Talent –Supply chain leaders need an extensive understanding of the key competencies and duties needed for supply chain management roles and the ability to efficiently source specific skill sets and methods for developing future leaders.

Quality and Cost ControlOperating costs are under extreme

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feels, “The new generation of leadership should focus on the changing nature of the customer/supplier relationship and alliance. Today, the customer is very well aware of the technological developments in the sector and hence would look forward to avail the ser-vices of a company that acknowledges and understands growth and the use of internet to facilitate e-business. It is crucial to learn to deal with the chal-lenges of technology selection, imple-mentation and application, and be alert to the next-generation of technol-ogy tools, as well as being wise to the implementation challenges inherent in the complexity of today’s supply chain software solutions.

Apart from building a strong un-derstanding of the technological space, it is vital to imbibe the best global practices that are being under-taken on a global level in the supply chain management sector. Supply chain executives must learn to man-age an enterprise that extends across continents and must deal effectively with suppliers and customers world-wide. The supply chain executive must also learn to comprehend the connec-tions and interdependencies across

procurement, logistics, manufactur-ing and marketing/sales. In addition, they must understand and absorb the complexity of interfaces with suppli-ers and customers outside of the firm.”

Suggestions & SolutionsGone are the days when pricing and brand recognition sufficed to set a business apart from its competitors. Raju opines, “Competition in proj-ects has forced us to think about the need to work even more closely with a close group of suppliers, delay expen-ditures, keep innovating new skills, keep working on reduction of costs, merge supply bases from different company divisions, system integra-tion, controlling the variables, develop minority suppliers, not to depend only on tested methods and solutions, etc.”

Agarwal says, “SCM is constantly evolving and there are always new trends that can be followed in the re-tail industry. Some of the innovations in SCM that can be practiced by the retail industry include • Vendor Management Inventory

(VMI): It is a distribution channel operating system whereby the in-ventory at the distributor/retailer is

FEAtuRE

suppLy chAin inTegrATiOn chALLenges

Strategic Flexibility Management• Customer Order Management• Strategic Planning Management • Logistics Management• Operation Flexibility •MeasureofSCbenefits• Procurement Management • Enterprise Integration

Business macro environment• Business Process Integration • Culture and Change Supplier Com-

petence Requirement • Business Transformation Oriented

to Globalisation • Effect of Globalisation

BuSInESS MICRo EnVIRonMEnt

Technical Challenges• Data and Information Integra-

tion• Application Integration• Extranet Adoption

dustry needs to support the multi-channel strategies of their customers. To be able to secure speed to market and to reduce the risk of delays, alternative transport modes and routes are required to support the continuing trend of outsourcing of logistics services.Information technology: The growing complexity and dynamism of supply chains requires increasingly ad-vanced information technology solutions.

Rapid changes in supply chain activities, tools and goals call for new skills in management and leadership. Agarwal

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monitored and managed by the manu-facturer vendor.

• Collaborative Planning Forecasting and Replenishment (CPFR): A collabo-ration where two or more parties in the supply chain jointly plan promotional activities on the basis of which produc-tion and replenishment processes are determined. CPFR reduces inventory costs while improving product avail-ability across the supply chain.

• Cross Docking: A system in which the vendor’s ship merchandise to a distri-bution centre in pre packed quantities required by each store. It is a process to avoid the need to store and prepare order replenishment.

• Radio Frequency Identification (RFID): A technology that uses com-munication via electromagnetic waves to exchange data between a terminal and an object such as product, animal or person for the purpose of identifi-cation and tracking. It is a device that contains a chip and an antenna, which can be physically inserted or stuck to a product. The basic informa-tion about the product can be stored in this chip. The tagging of this chip enables companies to identify and track their goods at various levels in a distribution chain.”

Future Megatrends in Supply Chain StrategiesSharing his views on the megatrends that will be ruling the supply chain in the coming years and how to deal with them, Raju opines, “Some of the mega-trends that shall rule the supply chain in coming years are as follows:a) Move towards centralised procure-

ment/logistics and tracking of costs.b) Rationalisation of the supply chain

base to a small set of strategic sup-pliers.

c) Outsourcing the procurement of non-strategic items.

d) Stress on real time response to cus-tomer requirements.

e) Greater emphasis on better forecast-ing, sales and operations planning and information sharing across the supply chain.”

Speaking of megatrends, Agarwal says, “Over the coming years, some of the megatrends that will take centre stage

V Raju Vice President-Logistics Parks & 3PL Contract Logistics , Adani Logistics Ltd

the tested sup-

ply chain for-

mula in developed

economies may not

prove to Be effi-

cient in emerging

markets with the

same degree of

success.”

a higher level of a joint business planning, while companies which share informa-tion with their trading partners are set to benefit as well.”

new Learnings for the Supply Chain The new learnings for the supply chain according to Agarwal are, “a demand-driven approach. This would require so-phisticated technology infrastructure, smarter data collection techniques, bet-ter aligned metrics and incentives, ef-fective management of costs and service tradeoffs as well as recalibrating organ-isational and staff behaviour.

By effectively optimising supply chain processes and performance, companies can deliver exceptional customer service without compromising on quality. Cost-reduction efforts are always considered within the context of their bottom-line impact of service levels, manufacturing flexibility and inventory levels.”

Raju shares, “New supply chain ap-preciates shorter lead times across busi-nesses. Aging workforce need to change and adapt to modern changes quick and fast. Changes are a must. These are the days of mergers and re-organisation. E- business is the norm of the day. One has to learn the same to stay in the com-petition that supply chain has adopted in the modern era. Change in customer demographics is the biggest challenge that supply chain faces today to adapt to the changing face of technology, or else, one gets faded out in the modern day competition.”

Conclusion Addressing the challenges companies have identified—improving service and responding to new expectations and pat-terns of customer demand requires more and better information, regardless of the geographical scope or the length of sup-ply chains. As the marketplace becomes increasingly fragmented, keeping better track of customer information and costs, which can inform and support interper-sonal, cross-functional discussions, will help companies prepare for the supply chain uncertainties that lie ahead. Supply chain managers have increasing challeng-es to face and urgently require efficient and effective supply chain methods.

would be a shift from customer ser-vice to relationship management. As a new business environment evolves and economic value addition concepts are introduced, there is also a need for constant innovation in the processes and practices employed. There will be an increased focus on the bottom-line changes which will help in enhancing and creating value. There will also be a shift from Virtual integration to vertical integration. Demand sharing among players will also contribute to

Group Companies

OMTRAXRelocation

FEATURE

It is certainly imperative to encourage young professionals to join the logistics industry, as they will surely bring in innovation, new ideas and the vitality that our industry needs to meet the growing challenges and complexities related to this sector in near future. CARGOCONNECT talks to few young and dynamic logisticians who have successfully made a place for themselves in this industry, their experiences, mantra of success, hobbies and interests, and traces their journey so far

60

Young Blood Rules the Roost

in Logistics


PINKCITY LOGISTICS LIMITED Registered Office:

V5 04, Ansal Garg Enclave, 122/235, Sarojini Nagar, Kanpur – 208012

Tel: +91-512-2224641, 2217001, 2216976, Fax: +91-512-2234911

Corporate Office: 216 Chawla Complex, Sector – 15, CBD Belapur, Navi Mumbai 400614

Tel: +91-22-27562739, 49, +91-22-61400500, Fax: +91-22-27565396

Agra Aurangabad Bhopal Bhiwadi Bhilwara Delhi Gwalior Gandhidham IndoreJaipur Jodhpur Kutch Kanpur Kolkata Ludhiana Mumbai Nagpur Nashik Varanasi

PCLLPINKCITY LOGISTICS LIMITED

SERVICES: Freight Booking | Clearing & Forwarding | Multimodal Transportation

Delivering Safe in the pink of condition

www.pinkcitysilica.com


Rishabh BirlaManaging Director, Air Shagoon

Group

Amit KumarSupply Chain Specialist, Amway,

India

Journey So FarI entered the industry in the early 1990s. It was indeed a blessing in disguise because choosing the right line of work is one of the biggest challenges

in a person’s life. It has truly been a pleasure so far.

Challenges Logistics industry is dynamic in nature. The challenging as well as the most interesting part is that one has to face new challenges everyday and adapt accordingly.

Mantra of SuccessI would like to give the credit to my parents for giving me all the support, knowledge and freedom to enable me to make decisions on my own and stand by them. I firmly believe that opportunity is often lost by deliberation. Efficiency and quick decision-making are the backbone of any dynamic business

environment.

Climbing the Ladder of SuccessOur organisation has some key strategic moves planned for the year 2016; hopefully they fall into place.

Beliefs and Values Ethics are of utmost importance. Our family culture has always taught us to respect people and relationships more than material gains. Taking care of your environment is another way of showing respect to nature and the people around you.

What is Success for You?Success is Happiness and vice versa.

Interests and HobbiesI’m a cricket fanatic. I love watching and playing cricket.

Message for ReadersWhat I have experienced from my journey so far is that any business that just makes money is a poor business.

Journey So FarI have found logistics to be so immense and enormous that there is always a scope of advancement and enhancement of its efficacy and that is what keeps me charged. My experience has been incredible so far, and when I look back at my contributions, it truly gives me a sense of pride and also works as a springboard for gaining higher sense of expectation from self.

Challenges I have always seen challenges as an opportunity. Since I am fortunate enough to work with both sides of the table, i.e. in a 3PL company and in a principal company, my share of challenges have been little tall. But then, that connects complete value chain. • As a role player of a 3PL, it is more to keep mining best value for clients, differentiating service, and improvising scalable solutions without long term contracts.• As a role player of a principal company, it is more to align with the ever changing customer demand and ensure appropriate supply, keeping a close cost-centric approach. • Visibility in end-to-end supply chain is another challenge as connecting supplier to plant to warehouse to store to home delivery.

Mantra of SuccessMy mantra of success is to set a higher benchmark for myself which is beyond my level. I believe it’s not about how many years of experience that you have but about the quality of your years of experience. I am a firm believer in helping people and asking for help from them wherever required; that, in turn, brings a lot of positivity in my profession and network.

Climbing the Ladder of SuccessOne should invest in himself. I have clear cut map of what are my success points and more importantly what are the resources, and the skills required to back it up. My immediate plan is to be equipped with Business Analytics Tools and Tableau. Going forward, I have earmarked certain specialised and leadership progressions.

Interests and HobbiesI am a voracious reader and I like to pick any title on business, self-improvement and read it back-to-back. I have a mini library of around 180 books in my study.

Message for ReadersRise and Shine! No Negotiations. The Sun is the daily reminder that we too can rise again from darkness.

FEATURE

PINKCITY CARGO & LOGISTICS SERVICES407, Chawla Complex, Sector – 15, CBD Belapur, Navi Mumbai 400614

Tel: +91-22-27562739/49, +91-22-27565382/4/5Contact Person: Mr. Ramchandra Yadav: +91-8693099923, Mr. Pankaj Pandey: +91-9702999239

PINKCITY CARGO & LOGISTICS SERVICES

Fleet of More Than 200 + Vehicle with Vehicle Tracking System (GPS) Specialist in Export / Import Container & Destuffed Cargo Movement

Real Time Information to Client & Close Co-ordination We are also Accepting Cargo for Surat / Ahmedabad / Delhi We have started from Mundra, Hazira to Madhya Pradesh

Containerised movement to Madhya Pradesh, Gujrat

& Uttar Pradesh


FEATURE

Rahul SagarAssistant General Manager-Marketing, Maini Materials

Movement Pvt Ltd

Gopal RGlobal Vice President, Supply

Chain & Logistics Transformation Practice, Frost & Sullivan

Journey So FarIt has been an exciting and eventful journey for last three years. The industry is witnessing lot of change and it’s always good to be at the realm of things. Being in the intra-logistics space, it gives me an opportunity to not only understand the market from the service provider point of view but also from end-customer side. I work with a great team which helps me to come out with innovative marketing routes to success.

Challenges This is a dynamic industry and requires lot of agility and pro-activeness to be successful. The main challenge in material handling and warehousing industry is to create awareness about your brand and right positioning among the target audience. As most of the players are into product-selling mode, we adopt a ‘solutions approach’ to offer customers comprehensive range of solutions and services. Aligning with the right business partners is also one of the challenges.

Beliefs and Values I strongly believe in learning every day. As a

marketer, it’s important to understand consumer behavior and develop marketing strategy and plans around it. Working with right ethics and honesty defines who you are.

What is Success for You?Success for me is the amount of value addition that I am able to do for my organisation, and of course, recognition from peers and industry colleagues.

Interests and HobbiesI am a complete foodie and a big travel buff. Travelling to new destinations, both within India and abroad, knowing different cultures, meeting new people and most importantly, feasting new cuisines are some of my interests.

Message for ReadersLogistics industry is all set to see a boom in a couple of years. This industry will become the fulcrum for the economic growth of the country. It is imperative for companies to be ready with right mindset and strategy to be able to win a bigger pie of the cake.

Journey So FarInvolvement in the logistics industry started with an opportunity to implement a strategy engagement for a leading 3PL. The intricacies of logistics and supply chain management along with supporting the needs of user industries and trade envelop a wide spectrum of functions. This wide spectrum of the logistics domain was an interesting learning environment and acted as the motivation to be part of this industry as an analyst. Experience of supporting the logistics industry participants in gaining market insights and offering strategic guidance has been quite interesting so far.

Challenges • The main challenge is to keep pace with the

technology developments supporting the logistics domain. Technology is changing the way information is shared, and to be on top of the developments is critical.

• Addressing client needs with market relevant growth strategies in the right way is also a challenge.

• Working in diverse markets across regions brings its share of learning and challenges.

Mantra of SuccessAs an analyst for the logistics industry, the key mantra for success has been to deliver practical and implementable strategies for logistics industry clients. This has been achieved by leveraging industry intelligence and keeping track of evolving business dynamics.

Climbing the Ladder of SuccessI would say that success is a journey. Enjoy the journey and put aside the thought of falling off the ladder!

Beliefs and Values I believe in maintaining integrity in what is pursued. This is very important to build long term client relationships. My belief is that success should be defined by our contribution to help build an ecosystem of people to let companies grow.

Interests and HobbiesTravel, history, running and creative pursuit.

Message for ReadersInnovate simple tasks to be different and make a recognisable impact.

101, 1st Floor, Parvati Estate Premises, Sun Mill Compound, Off Tulsi Pipe Road,Lower Parel ( West ), Mumbai - 400 013, Maharashtra, INDIA.Tel: +91 22 6716 6000 / 6716 6060 Fax: +91 22 6716 6001Email: [email protected] Website : www.impactfloors.co.in

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Impact Ad Resize Aug-15.pdf 1 28-07-2015 21:14:35


Railway Board is the apex policymaking body of Indian Railways. Despite being responsible for rec-ommending steps to improve facilities in the passenger sector, the Freight Marketing Division of Railways also looks after the policy measures and simplification of rail freight handling. Samir ku-mar, Director(FM), Railway Board in a one-on-one conversation with Joydeep Banik gives a clear picture of the rail cargo sector in India and the significant initiatives taken by the Ministry that are going to benefit the industry in the coming years

INTERVIEW

What are the major takeaways of the logistics sector from Railway Budget 2016?The budget 2016-17 had several firsts. For the first time, we have mentioned about time table freight trains. Transit time is a crucial aspect for business of the freight customers. There is a lot of time-sensitive cargo that needs to reach the market before a certain time. Operation of time table freight train will assure fixed transit times. Besides, there has also been a decision about long term tariff contracts with freight customers with pre-determined price escalation factors. The Hon’ble Railway Minister has also focussed upon the commissioning of 100 new sidings in the next two years; so, that’s a mission for us. Also, there will be a key customer manager from the Railways nominated for the different sectors of industry who will look after issues and address suggestions of their respective sectors. These are the notable things from the Rail Budget which I think will help the logistics sector in the years to come.

Are you reviewing freight tariff and frequency of freight trains? What are the other measures taken by the Railway Board for

the simplification of rail freight handling in India?Tariff rationalisation was the main focus of this year’s budget. It is a constant exercise. Every year, depending upon the economic situation, the requirements of the industry, and the Railways’ own costing, freight tariffs are decided. The change in tariff is done with the approval of the Parliament. Besides, we have a definite classification structure wherein for different commodities different rates are there. It is believed that railway has a huge social cost. There are certain commodities which are very important from the economic point of view. So, for commodities like salt you cannot charge as high as petroleum. Indian Railways is not here to make profit. For instance, there is right now a drought in Maharashtra and Railways is carrying water.

The agenda of freight tariff rationalisation has been spelt out in this year’s budget. However, from time to time, the classification of cargo, surcharges, etc. need to be reviewed. Despite increase in other costs, there has been no increase in freight tariff this year. Regarding the frequency of freight trains, as I said earlier, a time table freight train has been introduced. We have already developed a high capacity rolling stock (wagons) which travel at higher speed.

At the moment, almost 30 MT of coal has been stocked in power houses. Indian Railways is currently moving the cargo as per demand. Many other policy decisions are being contemplated to simplify freight handling facilities. There is a specific mention in the Budget about new delivery models for the industry like Roll-on /Roll off model. We are also going to permit parcel cargo in containers. More and more containerised traffic is being promoted. Market studies are being done by the Railways to identify and expand the freight basket and get newer commodities.

tell us about the advantages of Indian Railways’ Freight operations Information System.Freight Operations Information System (FOIS) has been in use in Indian Railways for more than a decade now. It is a beautiful online monitoring system wherein our freight customers are able to track the movement of their cargo online at any point of time. That is one of the major advantages from the tracking of cargo point of view. Besides, FOIS brings about technology in the commercial aspect also like freight calculations, calculation of weight, collection of money, e-payment, etc. There are many modules of FOIS such as terminal management system, rake allotment

“Railways linked to the overall growth of the economy”


system, e-payment and so on. So, it’s a very comprehensive software. Indian Railways has pioneered this kind of an initiative. Just as PRS (passenger reservation system) is there for its passengers, FOIS is the counterpart for the freight sector. It brings about a lot of transparency, and expedites decision-making. It is a win-win for our customers, as well as Railways internally. It is an MIS platform as well. Data from FOIS is analysed to arrive at policy decisions.

DFC projects by Indian railways have the potential push railways’ share of freight from existing 36 per cent to 45 per cent by 2019. Which are the main regions to be benefited and how?Right now, the Dedicated Freight Corridor Project is underway in two sectors, the Western Corridor and the Eastern Corridor. The Western Corridor is starting from JNPT, Mumbai and going upto Dadri. The Eastern corridor is starting at a place called Dankuni in West Bengal and going upto Ludhiana. The majority of the existing cargo of Indian Railways is running on these two segments. The work is going on in full swing. In the first phase, these two corridors have been identified. Subsequently, three more regions are to be surveyed and freight corridors will come up in other parts of the country also.

So far, we used to have a common corridor on which both the passenger and freight trains used to run. The line capacity had been heavily choked and IR was not in a position to introduce any new trains. With the coming up of these dedicated freight corridors, the existing freight trains would shift to the freight corridor and it will release the capacity in the passenger segment. It will benefit not only the freight customer but also the mobile passenger population of the country.

the Indian Government has put thrust to modernise and expand the nation’s railway network so that the rail cargo sector can emerge as an engine for economic growth. How can the construction of rail-linked logistics parks and warehouses across the country act as a boost to this sector?The idea behind having logistics parks and warehouses along railway tracks is to provide complete logistics solutions to the industry. It has been noticed that if the actual factories or consumption centrers are little far off from the railway track, first-mile and last-mile issues are there. Very often, even if the rail cargo has reached a certain point, it has to be further unloaded. This creates lot of time lags and cost overheads. So, the concept of having logistics parks and warehouses along the railway track would necessitate that secondary logistics is also taken care of and the cargo is distributed from there only, and

warehouses itself become distribution centres. Secondly, these logistics parks would come up as complete

packages wherein there will be integration between trains, roadways, godowns, etc. It will create employment and result in the growth of ancillary industries as well. It is going to be a very holistic solution. This, of course, Railways is doing in consultation with other economic ministries. Overall, this will be of great benefit for the transport sector and will help in decongestion of our urban centres. If we can develop rail-linked warehouses and logistics parks away from the cities, it can develop as separate centres of economic activity.

the Government has decided to implement 500 PFt projects in the next five years. How beneficial will be PFts for the industry at large?The Private Freight Terminal policy is almost a four year old policy. It has witnessed huge interest by the logistics players. It’s going to be one of the biggest PPP models ever implemented as cargo will be carried by Railways, but terminals will be developed by private players, and Railways will give connectivity and all necessary logistics help. PFTs are going to be a major game changer for the future. They are the biggest hope, because like logistics parks, PFTs will be a single window solution for all logistics issues like secondary logistics, transportation, consumption centres, warehousing and even manufacturing activities. So, PFTs have the potential to do that. We already have 81 different PFTs at different stages, out of which 45 have started working and others are in process of construction. The biggest advantage of PFT is that there is no restriction of commodities. Everything can be handled at a PFT-every commodity and every kind of wagon like covered wagons, open wagons, container traffic, etc. We have also permitted the existing ICDs to be converted to PFTs.

Anything else that you would like to add on....We are not considering Roadways, Shipping sectors as our competitors. Indian Railways believes that all the transport players are complementing the overall economic growth. At the end of the day, railways cannot reach every doorstep; hence, the last-mile obviously needs to be carried by the trucker only. The national economy demands that all sectors work hand in hand. These are changing times and there has been a slowdown in economy recently. Railways is linked to the overall growth of the economy. These are changing times, or rather difficult times but Railways shall always be in the forefront of all economic activity in the country.

tariff rationalisation was the main focus of this year’s budget. It is a con-stant exercise.


Established in 1957, Central

Warehousing Corporation (CWC)

is one of the biggest public ware-

house operators in the country

offering logistics services to a

diverse group of clients. CWC

operates over 448 warehouses

across the country with a stor-

age capacity of 11.17 million

tons. Harpreet Singh, Managing

Director, CWC in an exclusive

interview with Ritika Arora Bhola

discusses the current scenario of

warehousing and logistics sec-

tor, increasing usage of smart

automated warehouses, initia-

tives taken by the CWC for the

development of industry, role of

GST and effective ways to ensure

minimum wastage of perishable

products. Excerpts:

INTERVIEW

What is the current scenario of warehousing and logistics sector? Do you foresee any progress happening in the coming months for the industry as a whole?On a long term basis, the scenario of warehousing and logistics sector in the country is bright. However, on a short term basis, especially the logistics and warehousing industry connected with international trade may be passing through a difficult phase due to international business scenario. Further, the storage requirement may also get affected due to drought like conditions prevailing in many parts of the country currently. However, a good monsoon is predicted and this shall be good for warehousing and logistics industry as production in the coming months appears to be on the rise which will require more preservation, storage, warehousing and cold storage requirements. Therefore, on a long term and medium term basis, the prospects of warehousing and logistics industry as a whole appear bright and promising.

today, warehouse experts are operating smart automated warehouses. What would you like to comment on the warehousing design and working models used to operate warehouses at CWC?CWC is also going in for modern design warehousing with galvalume sheets, concrete roads and truss less roof with ventilators to preserve on energy. Automation of any particular warehouse is need based. For example, it may be feasible for a warehouse attached to a particular industry where sizes of packages are standard to have some sort of automation. The same may not be applicable for warehousing of different commodities of different sizes for different customers and especially for agri-products. However, CWC has also undertaken a study on automation of food grain warehouses and is currently examining a report submitted by IIT, Delhi.

Please elaborate on the recent initiatives taken by the CWC for the development of warehousing/logistics industry.Government of India is in the process of setting-up of food grain Silos, which will help storage of food grains with minimum losses in bulk and also transportation

“GST will be a game changer for Logistics Industry”


CWC’s first Silo will be constructed rail siding at nabha. A Collection Centre for corn is also being set-up as a pilot project with modern drying techniques.

of food grains in bulk. CWC is also setting up of Silos in some of its rail connected warehouses. The first Silo will be constructed rail siding at Nabha. Further, possibility of setting-up of Silos at 2-3 other places is also being examined in consultation with the railways. CWC is also examining the possibility of owning/leasing railway rakes to provide complete service from its terminals. This will enhance the revenue of the corporation considerably. CWC has been interacting with the farmers near its warehouses and educating them for modern warehousing and preservation techniques. Further, a Collection Centre for corn is being set-up as a pilot project in predominantly corn producing area with modern drying techniques which will increase the shelf life of corn and also result in reduced wastage to the benefit of the farmers. Efforts are on to collaborate with e-commerce companies with all India presence to provide them with

warehousing space as per their requirement.

Apart from traditional storing services, warehouses now provide value-added services like merging and breaking up of cargo, packag-ing etc. What are the value-added services offered by CWC?The new business areas CWC has entered into is providing warehousing to e-commerce companies. As far as CFS business, CWC is also into Less Than Container Load (LCL), which employs merging and breaking up of

cargo packaging and classifying, etc. However, in warehousing business, we are providing storage and logistics services to the users, who undertake these operations.

According to the reports, lakhs of tons of perishable products gets spoiled every year because of inadequate cold storage facilities and reefer vehicles. Since CWC supports logistics activities in agriculture sector. How do you ensure minimum wastage of perishable products? As far as warehousing capacity is concerned large capacities have been developed for storage of food grains under PEG Scheme of the Government of India. There is no shortage of warehousing space for storage of food grains on the whole. As far as perishables are concerned, a study has been undertaken by National Centre for Cold Chain Development under the Ministry of Agriculture. CWC is also examining the report and seeing the feasibility of setting-up of cold storages as suggested in the report at a few locations to begin with in addition to five centres being operated currently. As far as food grains preservation is concerned, the storage techniques adopted by CWC are scientific and it is ensured that the losses are well within the permissible norms. This has been achieved through regular inspections and adoption of preservation techniques.

How do you manage your ware-house and inventory manage-ment systems in terms of creat-ing value for customers?For management of food grains in warehouses, Management and Information System is being set-up by FCI, of which CWC is also a partner. This shall be commissioned in the near future, which will cover online storage of food grains for FCI by CWC. We are also going in for Integrated Business Management Solutions for all its operations, which will also take care of inventory management in its warehouses. However, CWC has robust system in place for inventory management, which gives value to customers through robust ISO Certified procedures. Complete operations are expected to be computerised within a year.

How do you think GSt will benefit Indian warehousing industry?GST will be a game changer as far as CWC is concerned. GST will result in requirement for large warehousing space at centralised locations, whereas small areas required in all states for the purpose of tax planning as is currently the case. CWC has large warehousing space spread throughout the country, which is its USP, to meet the requirement of companies that will require large centralised warehouses in the country after the GST is implemented. Therefore, CWC is well-placed in availing the opportunities that will be offered with the rollout of GST.


EDI: Convenient, Transparent, Cost-Effective

INTERVIEW

Celebi Delhi Cargo Terminal inaugurated

Import Cold Storage Facility and Gems and

Jewellery facility in the Capital recently.

Ananya Ray, Member, Central Board of

Excise & Customs was invited as a chief

guest at the ceremony. She was accompanied by kamal Jyoti, Chief

Commissioner Customs and S R Baruah,

Commissioner of Customs along with

customs officials, trade partners, airlines

and other important stakeholders. In an

exclusive conversation, Ray and Baruah talks about switching from

manual procedures to EDI and importance

of single window clearance at airport terminals. Excerpts

from an interview with Ritika Arora Bhola:

Development of FacilitiesBaruah: The development is going on for a long time now. For precious cargo per se, the work started in 2012. Storage of luxury cargo and perishables is much better here at Celebi. Previously at the Jhandewalan complex, it was not upto the mark and there was no security; private reefers or special vans could bring the cargo at the terminal. Here, they have three-tier securities, access control and CCTV cameras installed all over. Ultimately the cargo has to go from the airport, so this is a much better location. Customs department is there at the terminal itself. Now the entry and examination take place at the same place. It’s much more convenient for the customers.

transformation from Manual to EDIBaruah: Earlier all the operations were done manually and now we use Electronic Data Interchange (EDI). Previously, the customer had to come with the consignment and documents and there was a lot of human interface involved. But now since it is EDI, a customer can sit in his office and file it online as per his/her convenience.

Earlier they had to bring the consignment to the Jhandewalan, New Delhi complex and officer would examine it, sale it, councilor would arrange a van, and they used to wait till evening to load all the consignments in the van. So, the whole day the person used to be occupied. But now, it has straight away come to the air cargo complex. Now the customer needs to come only once, the officer does the examination and cargo is handed to the custodian and later loaded when

the flight is ready to depart. So, it is time saving and the dwell time and transaction costs have come down.

There are other benefits that government gives like the ‘drawback’ is sanctioned online and it is also credited to his/her bank account online. So, it happens much faster, even when the monetary transactions are done online. EDI is more convenient, transparent, and cost-effective and there’s more accountability. So, whatever the report the examination officer is giving is there in the system for everyone to see. Earlier, when manual process was followed, it wasn’t there. EDI is a major trade facilitation step. The trade gets facilitated and clearance is faster. It is now easy to capture the data and is also being shared by other online department like RBI for foreign remittance, DGFT online, and hence, monitoring becomes easier.

Single Window Clearance Ray: At present, we are focusing on single window clearance. We are going to send a proposal to the cabinet for the improvement of infrastructure in the systems as it needs to be upgraded. Our infrastructure is already saturated since 2007. Once the proposal gets required approval from the authority, we will proceed further. Single Window Clearance is our priority now. Our entire resource is working on it. But there are other things like extending the EDI system to other airports which are non-EDI right now. Some of them are located in remote places, so having remote connectivity is an issue there and we are working on that as well.

Ananya Ray, Member, Central Board of Excise & Customs Kamal Jyoti, Chief Commissioner Customs and S R Baruah, Commissioner of Customs at Celebi event recently.


Inland Shipping:In Search of the Lighthouse

PFT:A FILLIP TO COST-EFFECTIVE LOGISTICS

Bonded Trucking:Rough Roads Ahead?

Pharma Logistics: One Mistake Can be Fatal

AEO: Securing the Supply Chain

Budget 2016: Great Expectations

www.surecommedia.in

Postal Registration No.: DL (S)-01/3372/2016-18Postal at IPMBC on the 4th-5th same monthRNI No.: DELENG/2009/31040 Published on the 2nd of the same month SPECIAL FEATURE

VOL VII ISSUE IV MARCH 2016 `20


Malindo Air, an airline

based in Malaysia, is a

joint venture between

National Aerospace

and Defence Industries

(NADI) of Malaysia and

Lion Air of Indonesia.

Malindo, deriving its

name from the coun-

tries Malaysia and

Indonesia is relatively a

new airline, and yet is

doing well in the mar-

ket. Bhupinder kumar

kaushik, Cargo Manag-

er-Sales & operations-

India, Malindo Air in a

candid interaction with

Roselin kiro was glad

to share about the

potential that the airline

holds and foresees bet-

ter days to come its way

When did Malindo Air start its op-erations in India?It started in December 2013. We started with seven flights a week in Delhi, and now we are having around eleven flights in a week from Delhi, seven flights from Amritsar, seven flights from Mumbai, seven flights from Cochin, four flights from Trivandrum and fourteen flights from Trichy in a week.

tell us about your cargo operations in India.We are having around five ton per flight capacity from each of our stations and we get good load. We get major loads for our flights for station like Kuala Lumpur, Dhaka, Singapore, Jakarta and Colombo.

How is the market scenario of your airlines in India? How crucial and challenging it is for your cargo op-erations?Indian market is good for our operations because at this stage though we have very limited space, but we get good load. Although the market is very low from the past two years but it is not hampering our business and we manage to get good load for our sector. But, if we see the overall market, it is very low.

What is the cargo capacity of Ma-lindo Air in India?We have five tons per flight capacity. 737 series generally uplifts around two to three tons, but

with extended wings, we get around five tons per flight.

What are the various products ex-ported and imported through Ma-lindo Air Cargo to and from India?For Malindo, Indian market is having good load for Singapore, Dhaka, Kuala Lumpur and Jakarta, so it depends from sector to sector. For Dhaka, products like garments, buttons, accessories are exported from India. For Jakarta, products like handicrafts, machinery parts and from Trichy or from the South Indian market, it is mainly perishables and sea food.

Since e-commerce space is ex-panding in India, are you serving any e-commerce players at the mo-ment?Yes, we are planning to serve the e-commerce players very soon.

What are the new projects and ser-vices in the pipeline?We are going to start operating from Hyderabad and Ahmedabad. We will be altogether in around nine sectors from India. These days we are having around 60 departures in a week which would increase upto 90 in a week soon which means 360 departures in a month; I think it is a good potential. Internationally, we cover Nepal, Pakistan, Sri Lanka, Bangladesh, Australia, Singapore, Hong Kong, Vietnam and Indonesia. We are going to start Paris and London as well.

INTERVIEW

Baby Steps Towards Success

101, 1st Floor, Parvati Estate Premises, Sun Mill Compound, Off Tulsi Pipe Road,Lower Parel ( West ), Mumbai - 400 013, Maharashtra, INDIA.Tel: +91 22 6716 6000 / 6716 6060 Fax: +91 22 6716 6001Email: [email protected] Website: www.impactfloors.co.in

C

M

Y

CM

MY

CY

CMY

K

Impact Advt Aug-2015.pdf 1 29-07-2015 15:42:46


A young and spirited log-

istician Manav Sachdeva,

Country Head, Everfast

Freight Forwarders Pvt

Ltd, in a tête-à-tête with

Roselin kiro gives a

ringside view about the

changing dynamics of

freight forwarding busi-

ness in India and what

interests him to be a part

of the logistics sector.

Excerpts:

INTERVIEW

Everfast Freight Forwarders Pvt Ltd has almost completed two decades of its operations in India. tell us about the growth story so far. The journey has been good and we have seen a very organic growth in the past years. The organisation has diversified into various verticals at subsequent stages. We started our journey as a traditional freight forwarder with the vision to extend the footprints in various other activities required in logistics. EFF have got IATA accreditation, CHA License, warehousing facility and transportation services which enables us to give the clients a one window solution. Now we have our own offices in Delhi, Mumbai, Chennai, Calicut, Kochi, Trivandrum and Bengaluru. Going forward, EFF plans to extend operations in East India. Year-on-year, we are growing our turnover, business and our clientele.

Everfast works with the motive ‘to offer peace of mind’. Can you explain how?We give one window solution to our customers. We give solutions to all the customers having any type of cargo, be it a small parcel to OD projects, etc. We have an efficient team, which is always on toes to give best possible handling for the clients’ valuable goods. EFF takes the full responsibility from the booking to the safe delivery of the merchandise. By doing so, the customers need not get tangled in the supply chain, thus giving ‘peace of mind’.

You provide multiple services to meet the customers’ needs. Which is the strongest segment you cater to?I believe all the services goes hand in hand and it is little difficult to specify any particular activity. All the activities that Everfast provides complement each other.

Having pursued a degree from the foreign university, what made you come back to India and take up a profession in the supply chain sector? How do you see the business dynamics changing in the current scenario of the logistics sector in the country?Before I went abroad for my education in shipping and logistics, I had an idea of how things run in India in shipping industry, freight forwarding and customs.There are still

“We have seen organic growth over the years”


We started as freight forward-ers and time to t ime we have diversified our services.

many aspects where India is lacking. Being a developing nation, the infrastructure, the facilities and the government policies are yet to see a change which is at par with the western world. After completing the degree, I could relate to the global market on how supply chain is designed in the western market. The idea to replicate the same in India keeps me motivated.

In Indian companies, the multinational culture is developing with the young talent venturing in freight forwarding. The business dynamics has definitely changed in the past decade. The EXIM business has grown for India in particular. We are now a part of the global competition and to sustain the business we need to compete with companies who are established in other parts of the world.

A report named ‘Freight forwarding market in India 2015’ stated that India is expected to witness considerable growth in freight market provided freight companies diversify their business to other logistic segments. What according to you are the various segments that freight forwarding companies can venture into?We started as freight forwarders and time to time, EFF has diversified services and have added new feathers in cap. Now we are

focussing more on warehousing. We have bought a few warehouses in different locations in the past two years. This is the only way out because the traditional freight forwarding is not the demand of time. We need to have the entire package under one roof. We are also developing our team for chartering break bulk vessel and aircrafts. We are also growing our market share in perishable goods.

It is also talked about that freight companies will benefit from the rapid growth in warehousing infrastructure in the country. What is your take on it?As mentioned earlier, I am totally in agreement with this statement. EFF has already taken steps towards the expansion in warehousing sector.

Government is talking out various initiatives like FDI regime to sectors pertaining to freight forwarding industry, development of the dedicated freight corridor, shift to GSt tax regime etc. Do you think that government is doing enough for the development of freight forwarders?In any part of the world, growth takes time and when we talk about GST, freight corridor, etc., all these will take time. So, we as freight forwarders need to have patience and have to wait till things are on the track. Once these are sorted and are rightly placed,it will definitely give a boost to the freight forwarding business.

Multinational

culture is

developing

with the

young talent

venturing

in freight

forwarding.

VOL VI ISSUE I DECEmBER 2014 `20www.surecommedia.com

Indian Ports Seek Betterment, Sustainability

Postal Registration No.: DL (S)-01/3372/2013-15Licensed to Post without prepayment No.: U(S)-81/2011-12Postal at IPmBC on the 4th-5th same monthRNI No.: DELENG/2009/31040 Published on the 2nd of the same month

Replicating International Success in India

Smart Warehousing, Smarter Productivity

Bridging the Road Ahead

Opportunities Galore

Multimodal Logistics in India:

VOL VI ISSUE XII NOVEmBER 2015 `20www.surecommedia.in

Postal Registration No.: DL (S)-01/3372/2013-15Postal at IPmBC on the 4th-5th same monthRNI No.: DELENG/2009/31040 Published on the 2nd of the same month

Robomation: One-Stop Warehousing Solution dangerous Goods: No Scope for Neglect

TURNING POINTS

VOL VI ISSUE XI OCTOBER 2015 `20www.surecommedia.in

FMCG Logistics:Towards a WIN-WIN Scenario

E-Customs Clearance:Assuring Transparency

7 up!

Postal Registration No.: DL (S)-01/3372/2013-15 Licensed to Post without prepayment No.: U(S)-81/2011-12Postal at IPmBC on the 4th-5th same month RNI No.: DELENG/2009/31040 Published on the 2nd of the same month

VOL V ISSUE X SEPTEmBER 2014 ` 20www.surecommedia.com

Lending Greenhue to the logistics industry

Role of ports in economic development

Time to turbocharge India’s air cargo sector

NVOCCtakes front seat, offers excellent

supply chain solutions

VOL VII ISSUE IV maRCh 2016 `20www.surecommedia.in


Inland Shipping:In Search of the Lighthouse

PFT:A FilliP To CosT-EFFECTivE logisTiCs

Bonded Trucking:Rough Roads Ahead?

Pharma Logistics: One Mistake Can be Fatal

AEO: Securing the Supply Chain

Budget 2016: Great Expectations

SPECIAL FEATURE

VOL VI ISSUE IX AUGUST 2015 `20www.surecommedia.com

E-com Logistics: Road Ahead for Doorstep Delivery

Missing the Fifth Gear

Logistics Industry Needs Easy EXIM Policy

Postal Registration No.: DL (S)-01/3372/2013-15Licensed to Post without prepayment No.: U(S)-81/2011-12Postal at IPMBC on the 4th-5th same monthRNI No.: DELENG/2009/31040 Published on the 2nd of the same month

Warehousing Industry: Forging an Era of Growth

Cover JULY-2015.indd 1 30-07-2015 13:18:53

Miles to Go7 up!

Our heart elates with joy when we turn back and look at the journey of CargoConneCt over the years. We have left no stone unturned to reach the paramount position which the magazine enjoys today in the logistics industry. On this auspicious occasion of our anniversary issue, we escort you to a com-pilation of the best ‘Cover Stories’ in the magazine which were highly appreciated by the industry

Roadmap to the Future

Cold Shouldered ‘Gold’ Chain

E-AWB: Cutting Out the Paper Trail


SPECIAL FEATURE

Supp

ly C

haiNavigatioN 2016

VOL VII ISSUE II JaNUaRy 2016 `20www.surecommedia.in

www.surecommedia.in


Domestic Air Cargo

VOL VI ISSUE X SEPTEmBER 2015 `20

Freight Containerisation:Rising above Troubled Waters

Secure the Cargo: Pack it, Lash it

Pharma Warehousing: Smart Storage, Smarter Productivity

Reaching for the Skies

CARGOSSOCIATION:Together We Soar

www.surecommedia.in

Reaching for the Skies

FOCuS: AIR CARGOSPECIAL FEATURE

Clipped Wings of Dedicated Freighter

Ground Reality

Indian Airports await ‘acche din’

Opening the Skies for Air Charters

aCaaI CONVENTION 2015 ISSUE aCaaI CONVENTION 2015 ISSUEwww.surecommedia.in


waterways - Key to india’s economic ambition

The success of inland ports in countries like China or the European Union is clear evidence of the merits of leveraging inland waterways. Today, China is known as a global manufacturing hub, much to the credit of its inland

waterway transport (IWT) network. China’s IWT is the world’s largest in terms of length and freight tonnage. With over 1,00,000 km of navigable inland water-ways, over 47 per cent of China’s total transport is driven by this route. The use of waterways as a medium of transportation has also increased in other areas of the world including Japanand Korea (44 per cent), Europe (40 per cent) and Bangladesh (35 per cent). On the contrary, inland waterways in India constitute a paltry three per cent of total transport usage. India still largely depends on its road and railway network for transportation purposes. Most Indian ports are unable to realise their full potential due to hinterland connectivity. There is an urgent need to take steps to improve this connectivity in order for ports to prosper and to grow the economy.

The passing of the crucial National Waterway Bill, 2015 in parliament earlier this month has helped turn this dream into a reality. By declaring 111 rivers across the country as National Waterways, the parliament has paved the way for the development of these stretches as transport routes. In light of the government’s ambitious ‘Make in India’ programme, country bound manufacturing is expected to receive an added push. The government has recognised the impact of escalating logistics costs and the introduction of National Waterways is a step in the right direction. The government is now looking to harness the country’s 50,000 kms of sea and river fronts, to enhance efficiencies in supply chain management. In most door-to-door transport chains, the costs of hinterland transport are higher than maritime transport costs and port costs combined.

Today, it costs approximately `1.5 a km to carry cargo by road or `1 via rail in comparison to the 25 paise per km through waterways. Moving forward, the shipment of cargo both within India and overseas will be more cost efficient ship-ping via road or rail routes. Nitin Gadkari, Union Minister of Road Transport and Highways and Shipping, recently stated that by promoting waterway transport, logistic costs, which stand at 18 per cent in India compared to just 8-10 per cent in China and 10-12 per cent in European countries, will decrease significantly. He further added that one litre of fuel can move 105 tonnes per km by inland waterways compared to 85 tonnes per km by rail and 24 tonnes per km by road. Inland waterway transportation is the most environmentally friendly mode of transport and shipping more goods on water will help to reduce greenhouse gases and traffic congestion. In addition to the advantages it will bring to the transport industry, the National Waterways Bill will have huge potential for other sectors, including cruise tourism, water sports, fisheries development and feeder routes, proving inland navigation is by far the safest, most environmentally friendly and profitable choice.

GuESt CoLuMn


(The writer is the Territory Director, Peel Ports)

By declaring

111 rivers as

national

waterways, the

parliaMent

has paved the

way for the

developMent

of these

stretches as

transport

routes.

Ravindra Gandhi

41A, AJC Bose Road, Kolkata- 700017Ph. 91-33-22640046Email: [email protected] www.innovativelogistics.in

Offer a complete range of supply chain services that reduce costs and increase profit potential. The integrated services provide complete aspects of logistics planning, control and execution. From point of origin to consumption, Innovative Logistics design services that turn your supply chain operations from a challenge into a substantial competitive advantage.

Pan India Services500 to 5,00,000 sq. ft. WarehouseAutomated and Well Equipped WarehousesPrimary & Secondary Transportation: Air, Rail, RoadRound The Clock ServicesOnline Consignment Tracking

Regional Office: Kolkata, Delhi, Bangalore & Mumbai

WE OFFER LOGISTICS AND WAREHOUSING SERVICES FOR SMALL BUSINESS AND BIG CORPORATES TO MOVE THEIR BUSINESS AHEAD

Warehouse ManagementDistribution ManagementClearing & Freight Forwarding

Product Distribution / TradingValue Added ServicesSingle Window Solution

Facilities


safety processes followed by indian ground handling companies

India is the world’s ninth largest civil avia-tion market. Currently on a high-growth trajectory, it aims to become the third-

largest aviation market by 2020 and the larg-est by 2030.

As airports contribute directly to the coun-try’s international competitiveness, upgrading the airports’ infrastructure is of prime impor-tance. While air cargo in India constitutes less than one per cent of the total cargo exported from India, it accounts for 35 per cent of the total value of exports. These trends suggest that airport authorities need to scale up air-port infrastructure in line with the escalating needs of air transportation.

Safety and quality of ground handling are two of the core essentials of the aviation in-dustry. Ground handlers adopt and follow all the processes and procedures to achieve safe ground operations, and undertake operational efficiency improvement initiatives.

To address safety concerns of the airlines, the International Air Transport Association (IATA) conducts safety audits based on prin-ciples of the IATA Operational Safety Audit (IOSA) programme for various ground han-dling agencies. Ground handlers who suc-cessfully comply with this audit programme are certified with the IATA Safety Audit for Ground Operations (ISAGO) certification. ISAGO certification ensures safer ground op-erations, fewer accidents and injuries, reduced number of audits, better understanding of high-risk areas and also aids implementation of Safety Management Systems (SMS) by the ground handlers.

Apart from safe ground operations, safety of cargo at air cargo terminals is assured by the Transported Asset Protection Association (TAPA) certification. The TAPA audit is con-ducted on various parameters like perimeter security, cargo facility’s various tight access controls, secure handling of high-value prod-ucts, high-tech equipment for cargo handling, installation of vital surveillance and alarm sys-tems, safe and secure freight handover process and workforce integrity, which indicates imple-

mentation of high security standards for the car-go warehouse facility’s operations. TAPA aims at reducing losses from national and international supply chains and its FSR (Facility Security Requirements) aims at ensuring safe and secure in-transit storage and warehousing for global manufacturers, logistics providers, freight carri-ers, law enforcement agencies and other stake-holders. There is a pressing need for the ground handlers to stay abreast of the fast changing needs of the industry in order to remain com-petitive. They need to be well versed with the entire gamut of the aviation value chain in India in order to raise the level of service excellence.

Apart from ISAGO and TAPA certifications, ground handlers also have their own SMS to manage safety, which includes organisational structure, accountabilities, and policies and procedures. Various Foreign Object Detection (FOD) programmes, Safety Standard Operating Procedure (SOP), Risk Assessment and Hazard Management, Intoxication Policy, Voluntary Hazard Reporting (VHR)/ Operational Hazard Reporting (OHR) programmes, safety audits and internal audits form part of the SMS. It can be implemented through the process of conducting periodic reviews or audits of the SMS and safety promotion in order to create safety awareness through safety briefings, safe-ty workshops, safety fliers, safety quizzes, etc. All these key disciplines enhance the quality of the ground handling customer experience.

Ground handlers contribute towards building world-class airports by making their operations safe and secure, energy ef-ficient and upscaling their Ground Support Equipment (GSE), thereby improving On Time Performance (OTP).

In the current scenario, where the Indian economy is all set to achieve greater signifi-cance on the global platform, upgrading and modernising airports and air cargo infrastruc-ture is critically important. Finding solutions conducive to business sustainability and to de-velop safe airports and cargo infrastructure will be a step in the right direction for the growth of the Indian aviation market.

GuESt CoLuMn

Mike Chew

CargoConneCt - aPRIL 201680

(The writer is the CEO, AISATS)

air cargo

in india

accounts

for 35% of the

total value

of exports.

Monopoly Carriers And Cargo Private Limited is a nationwide freight forwarder and logistic solution provider.

The Company is the registered lease holders for the Indian

Railways and a leading authorized agent of Air India,

Indigo, AirAsia and Go-Air.

The Company provides these services through a network of branch offices and associate Introduction concerns

spread across India

Today Monopoly is one of the largest domestic cargo

company in India

Door to Door | Express Cargo | Air Cargo | Train Cargo | Consolidation | International Cargo

Monopoly Carriers & Cargo Pvt Ltd2nd Floor Bhagwagar Complex, Behind Shivraj Hotel Opposite Devani Dharmashala,

Central Avenue, Nagpur, Maharashtra 440018Phone : +91-712-2769290, 2774409 Mail id: [email protected] Web: www.monopolycargo.com

SERVICES:


“SCM is the backbone and

decides the speed of the organisation”

“SCM is the backbone and

decides the speed of the organisation”

Bajaj Electricals Ltd, an electrical equipment manufacturing company and a subsidiary of the Bajaj Group, is the undisputed leader in turnkey

illumination projects. The EPC business unit of Bajaj has over 300

engineers performing complete design, engineering, marketing,

procurement and site management tasks. Prashant Bhatmule, Head-CPG/SCM-EPC, Bajaj

Electricals Ltd in an interview with Joydeep Banik discusses

about the significance of logistics and supply chain management in EPC business and the technology

enablers that lead to innovation

Logistics for GrowthLogistics is a blend of art and science, both of which needs to be balanced for successful results. Earlier, logistics function was a neglected function. However, today the situation has changed and logistics has surely taken a front seat. The logistics potential, if understood properly, can act as an aid to have the real high growth in business. Today, the level of logistics support is the deciding factor for growth.

Emerging technologies Lead to Innovation Once the right strategies, processes, and organisation are in place to embrace new ideas and initiatives, there is an opportunity for IT departments to leverage technology to enable innovation. In fact, 75 per cent of the highly innovative companies agree that their IT investments are made primarily to support growth initiatives and leverage emerging innovations such as mobile devices and social media.

There are four key technologies that have converged to drive innovation: social networking, mobile computing, analytics, and cloud computing. While each of the four technologies has its unique impact, they are complementary in support of getting the work done.

Social media helps people find colleagues with whom to collaborate and co-create. Mobile devices give people access to each other, applications stored in the cloud, and other data sources. Analytics help them make actionable sense of all that data. Cloud computing increasingly stores more information and applications that people use. All these are used at our workplaces nowadays to meet the challenges and probably make the stage ready for tomorrow.

Coordination in SCMThe name SCM is itself talks about CHAIN whose links are supplier, transporter, and other departments. We use more of technology for smooth coordination between the supplier and other departments like accounts/sales, etc., through the web portals. Transporters are connected generally in EPC business to the supplier directly, instead of having the control through purchase department. This is done for effective control on despatches made through any multimodal transport to make the supplies more cost-effective.

SuPPLY CHAnGE


In-House Vs. outsourcingIt is difficult to separate the functions of logistics service providers and internal control led areas. They go hand-in-hand. Unless you have the concern for expectation internally, the LSP cannot really deliver it. We try to get the mix of requirements for EPC business and also try to have a control on the activity.

Cost-effectiveness is definitely realised by outsourcing as compared to in-house facility. But in my opinion, the external service provider takes its own time to deliver what the OEMs need. So it is important for an LSP to understand the exact requirement and work with focus. Internal support is a must. However, there are few functions which are managed externally like warehousing, kitting etc., and functions like bill passing, are also outsourced completely.

Inventory ManagementOur warehouse management is the same as made by others on a common platform. Even the vendors are a part of the business management partially through portal, and hence, they become part of warehouse management. The same is practiced under the Theory of Constraint (TOC), making inventory control much tighter than normal warehousing. The TOC concept not only deals with requirement but also deals at every stage on extra inventory (if any). TOC concept really makes people ‘fit and fine’ to the inventory.

Significance of Regional Logistics CentresThe concept of RLC or centralised warehousing has both advantages and disadvantages. The supply chain process for EPC division is more towards supplies to direct site, but at the same time, it is essential for all of us to ensure the delivery is happening based on the TOC requirements. What would be thrown as requirements is not only based on the MRP planning, but also based on the actual consumption happening at site. Thus, the process of logistics and warehousing management is managed just like a factory even though it is for the interior site.

The SCM process of EPC has a critical factor of management of inspection through third party authorised inspection team. This creates the multimodal requirements more essential and also makes the process more robust through TOC concept. RLC is practiced a lot in our case and is helping us drastically and pays off well with the minimum secondary transport cost.

Signi f ic ance of L SPs and ExpectationsToday, building up an internal team is becoming costlier day by day. Hence, outsourcing of logistics services is more essential and is an aid to success. SCM function may become redundant without LSPs. Thus, LSP plays the most crucial role to make the SCM function more effective.

The quality of LSP decides the output quality of the organisation and hence good LSP partner is a key to success.

Any small mistake by LSP becomes an issue, whereas an efficient LSP becomes the backbone of growth of an organisation. The effectiveness of LSP can be determined by the percentage of complaints received. The expectations per se thus become crucial to be specified critically in the agreement or SLA.

The various expectations from LSPs start with basics such as on-time delivery, and ends only with positive and responsive delivery of services and products. The expectations defer from time-to-time, and hence expectations are never ending. The LSP should be available for varied requirements nowadays, starting from e-commerce credentials, repacking of goods, kitting, etc. Thus, the service levels are defined in such a way that the business needs are met from time-to-time, be it a project or a product.

Way ForwardI believe in ‘continual improvement.’ Timely need makes you to look for new initiatives. I strongly believe that today, warehousing is not only the old-school stocking of goods, but it also acts indirectly as a centre for profit to keep the profit margins growing through strict inventory control and value added services to meet customer expectations. New upgrades on ‘Digital India’ thinking would lead us towards more visibility on the screen and at the table.

The various expecta-tions from LSPs start with basics such as on-time delivery, and ends only with positive and responsive delivery of services and products. The expectations defer from time-to-time, and hence expec-tations are never ending.

The new door-to-door air cargo delivery charges from Muscat to New Delhi have been increased to RO1.300 per kg with effect from April 1.The price rise was announced by representatives of 35 cargo agencies in Muscat recently. Increased cargo rates by airlines and hike in transportation costs are some of the reasons cited by agents for the decision. “We are left with no choice but to pass on the additional costs to customers,” said Mohammed Ali, one of the representatives.

The government is set to kick off an ambitious scheme to track the movement of freight containers through a smart chip as it looks to speed up cargo movement and decongest ports. In the first phase beginning May 1, it will track all containers moving along the Delhi-Mumbai corridor to identify the hurdles on the way to JNPT in Mumbai, which handles 50 per cent of the container traffic in the country. Each container that will land in JNPT will be tagged with a smart chip-like gadget and will be tracked across the country until it leaves Indian shores.

The Centre’s green panel has given clearance to Adani Petronet for the third phase expansion of its Dahej Port in Bharuch district of Gujarat with an investment of `464.32 crore. Adani Petronet (Dahej) Port Pvt Ltd (AP-PPL) has developed the Dahej Port in phased manner.

The third phase expansion would entail raising cargo handling capacity from 11.7 million metric tonnes per annum (MMTPA) to 23 MMTPA besides development of additional area to store coal, back up equipment, coal storage silo at railway siding and other supporting infrastructure. “The Expert Appraisal Committee under the Union Environment Ministry examined the APPPL’s proposal in a recent meeting and recommended granting of environment clearance and coastal regulation zone clearance for phase III expansion,” a senior Government official said in a statement. The EAC has proposed EC subject to certain conditions. Based on the recommendation of the EAC, the Ministry will take a call on the proposal, the official added.

Increase in door-to-door air cargo charges to India

Smart tags to track freight containers

Adani Petronet gets green nod for Dahej Port expansion

nEWS

Head Office: LG-10, Gyan Deep Complex, Munirka, New Delhi-110067Corporate Office: 319/2, Badam Singh MarketRangpuri Mahipalpur, N. H. 08 New Delhi-110037T: +91-11-41211111, 41838081 M: 9871168684, 9891168684E: [email protected] W: www.rworldexpress.com

International & Domestic Services

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Our Services :• Priority Services• Premium Services• Economical Services• Special Service (Freight)• Warehousing &

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Customers doing business in the buoyant US Midwest market will have an even wider choice of services this summer with the re-introduction of Virgin Atlantic Cargo’s seasonal daily flights to and from Chicago. The addition of Airbus A330-300 services

ex Chicago will boost its capacity offering by a further 16 tonnes a day and help customers in the US achieve fast connections with the UK and Europe as well as prime markets such as India and South Africa.

John Lloyd, Senior VP, Virgin Atlantic Cargo said, “We are pleased to welcome back our very popular Chicago route and with the addition of Detroit last year, has enabled us to strengthen our year-round presence in the US, Midwest, where are have very strong support from our customers on both sides of the Atlantic. Typical cargoes ex-UK will be wide ranging, such as fresh fish, flowers and perishables. For customers in the US, the early morning arrival of our Detroit and Chicago services into London means we help them to quickly connect to markets across Europe and other online destinations such as Johannesburg and Delhi.”

Eicher Trucks & Buses, India’s fourth biggest com-mercial vehicles player, might look at entering the mini truck segment to compete with Tata Ace, the warhorse of the segment.

The Delhi-based company, which is a part of VE Commercial Vehicles, moved a notch below its smallest offering and has launched the Eicher Pro 1049 truck, a 4.9-tonne (gross vehicle weight) in the light commercial vehicles segment.The company has kept away from the mini truck segment while focusing on medium and heavy vehicles, backed by technology from Swedish giant Volvo, its partner in India.

Shyam Maller, Senior Vice President (Sales and Mar-keting), VE Commercial Vehicles said, “We will see how it goes, and on the basis of that we will take a call. We want to be indeed a full-scale player in the CV segment.”

“During an upswing in the economy, the medium and heavy commercial vehicle (MHCV) segment is the first to show growth, followed by the LCV segment. MHCV sales have been very promising and the LCV segment has also begun to show some revival,” added Maller.

Virgin Atlantic Cargo begins daily Chicago service

Eicher Motors might enter mini truck segment

nEWS

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NEC Corporation and the DMIC Trust have established a joint ven-ture company, DMICDC Logistics Data Services Limited, for providing

logistics visualisation services inIndia. NEC and DMIC Trust will each hold 50 per cent of the joint venture’s total capital of approximately eight million Indian Rupees (INR). This is the first commercial project to originate from the Smart Com-munity initiatives of the Delhi Mumbai Industrial Corridor, which is being promoted jointly by the Indian and Japanese governments. Since 2010, the Japanese Ministry of Economy, Trade and Industry (METI) has played a key role in helping NEC and DMIC Trust to establish this new company.

The new company will provide shippers and transport operators with logistics visualisation services, enabling them to perform real-time searches based on accurate posi-tional information, showing the location of containers being transported by rail or road between Delhi and Mumbai.

In a major initiative to benefit the EXIM trade in Coimbatore, the Container Corporation of India (CONCOR) has announced a special scheme to transport empty containers from Kochi Port to Irugur ICD free of cost. This will ensure that empty containers required for stacking export cargo from Coimbatore will be mobilised free of freight cost. It will reduce the overall transport cost of containers exported through Kochi. The movement of empty from Kochi was one major contributor to the cost.

Quikr has established its own logistics arm, even as it continues to work with external logistics partners. The company had launched online doorstep pickup and delivery called Quikr Doorstep some time back. The complication of consumer at both ends (buyer and seller) necessitated Quikr to do the logistics in-house adding in the past six months.

NEC-DMIC joint venture for Logistics Visualisation

CONCOR announces new scheme in Coimbatore

Quikr sets up its own logistics arm

nEWS

A Memorandum of Understanding (MoU) was signed between the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of Islamic Development Bank (IDB) Group and Export-Import Bank of India (EXIM Bank), a specialised financial institution, established under an Act of the Indian Parliament, wholly-owned by the government of India with a mandate to finance, facilitate and promote India’s foreign trade.

The MoU envisages cooperation to explore the feasibil-ity of extending a commercial line of credit of $100 million to ICD with the aim of facilitating the export of goods and services from India to ICD’s member countries. Typically, the recipients of EXIM Bank’s commercial lines of credit act as intermediaries and on lend to overseas buyers for the import of Indian goods and services. Under the agreement, cooperation will also be achieved through the exchange of information on trade-related matters and the identification of business opportunities for Indian companies to pursue in ICD’s member countries. The MoU was signed by Khaled Al Aboodi, Chief Executive Officer and General Manager, ICD and Tarun Sharma, Regional Head, EXIM Bank at the ICD headquarters in Jeddah.


THE ANNUAL MEETING PLACE FOR WAREHOUSING, MATERIAL HANDLING & SUPPLY CHAIN INDUSTRY

Pragati Maidan, New Delhi8-9-10, June, 2016

Warehousing | Material Handling | Storage | AIDCAutomation | Packaging | Supply Chain | e-Commerce

Are you looking for e-commerce logistics solution?

Are you looking for storage solutions for your factory?

Do you want to see the latesttechnology inmaterial handling?

Are you looking for a warehousing facility?

For delegate booking, contact: Bharani Prasad | +91 98 7162 8542 | [email protected]

Free visitor registration @ www.IndiaWarehousingShow.com

let’s address this most common question on9th June 2016, 4.00 pm onwards

"I have land and I wantto open a warehouse"

INDIA WAREHOUSING CONFERENCESTART-UP WORKSHOP @ SPIRITZ CAFÉ8-9 JUNE, 2016

Pragati Maidan, New Delhi

“Exploring New Opportunities in Supply Chain Sector in Changing Times’’

Visitor Helpdesk:Janish Jafri +91 9999686007 [email protected]

Organised By

Co-located ShowSupported By

Media Partner

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Silver PartnerMHE PartnerOfficial Supply Chain Partner

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THE ANNUAL MEETING PLACE FOR WAREHOUSING, MATERIAL HANDLING & SUPPLY CHAIN INDUSTRY

Pragati Maidan, New Delhi8-9-10, June, 2016

Warehousing | Material Handling | Storage | AIDCAutomation | Packaging | Supply Chain | e-Commerce

Are you looking for e-commerce logistics solution?

Are you looking for storage solutions for your factory?

Do you want to see the latesttechnology inmaterial handling?

Are you looking for a warehousing facility?

For delegate booking, contact: Bharani Prasad | +91 98 7162 8542 | [email protected]

Free visitor registration @ www.IndiaWarehousingShow.com

let’s address this most common question on9th June 2016, 4.00 pm onwards

"I have land and I wantto open a warehouse"

INDIA WAREHOUSING CONFERENCESTART-UP WORKSHOP @ SPIRITZ CAFÉ8-9 JUNE, 2016

Pragati Maidan, New Delhi

“Exploring New Opportunities in Supply Chain Sector in Changing Times’’

Visitor Helpdesk:Janish Jafri +91 9999686007 [email protected]

Organised By

Co-located ShowSupported By

Media Partner

VIP Partner Warehouse Partner Gold Partner

Silver PartnerMHE PartnerOfficial Supply Chain Partner

Foundation Partner

In its sixth edition this year, India Warehousing Show (IWS) is set to be held on June 8-10, 2016 at Pragati Maidan, New Delhi. The USP of IWS has always been the perfect mix of buyers coming to the show. The show hosts buyers from 3PL/4PL companies, automobile, OEM, FMCG, electronics, manufacturing units, retail companies, government departments, architects and consultants. This is an unmatchable congregation of industry leaders from these sectors in any show on logistics and this makes IWS, the ultimate market place for warehousing, materials handling and supply chain. “This year’s event has over 180 international and Indian companies showcasing their latest products and technology for the sector. IWS is a must attend event,” said Anuj Mathur, Managing Director, Reed Manch Exhibitions.

Government considered two new proposals from Infosys and Wipro, for setting up Special Economic Zones (SEZs).The proposals will be taken up by the Board of Approval (BoA) for SEZ, chaired by Rita Teaotia, Commerce Secretary.Infosys Ltd has proposed to set up an IT/ITeS zone in Ben-galuru over an area of over four hectares. Chhindwara Plus Developers Ltd has proposed to set up a multi-product SEZ in Madhya Pradesh over an area of 1,320 hectares. Further, as many as 19 developers and units have sought more time to com-plete their projects which are under different stages of comple-tion. Wipro Ltd has also requested for further extension of its letter of approval for setting up an IT SEZ in Bengaluru.

Transport Corporation of India (TCI) recently announced the incorporation of a wholly-owned subsidiary in Bangladesh. “The company has successfully incorporated a wholly-owned subsidiary by the name, ‘TCI Bangladesh Limited’ in Bangladesh,” a company official said in a statement.

Government is set to invite bids for developing eight rivers as National Waterways within a month, a move that will boost movement of goods and passengers through rivers. The development comes barely a month after Parliament gave its nod to a Bill to convert 106 rivers across the country into National Waterways. Prior to this, the country had only five river stretches designated as National Waterways. The work includes removal of hard strata between Ghazipur and Varanasi and construction of multimodal terminal at Varanasi on National Waterways No 1 (1,620 kilometres stretch of Allahabad-Haldia on Ganga), an official said in a statement.

IWS to start June 8-10, New Delhi

Govt considers two new SEZ proposals

TCI incorporates subsidiary in Bangladesh

Govt to invite bids to develop waterways

nEWS

To fast track development of major ports, government is giving land parcels of state-run ports to private players ‘on lease’ for various cargo projects. India’s top 12 major ports have an estimated 2.4 lakh acres of land, a substantial chunk of which could be utilised for port projects.“There are separate plans for Kolkata and Mumbai ports. We are making two smart cities at Kandla and Paradip, studies for which have begun. Private players could be part of our projects but land to them will be strictly on the basis of lease,” said Shipping Minister Nitin Gadkari in a statement.

Govt mulls leasing port land

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Comprehensive Event Focusing on Logistics Infrastructure

& Services Development

Highlights of the expo

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India Supply Chain Summit: Know the latest advancements, trends and strategies of the sector

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19/20/21 May 2016Bombay Exhibition Centre

Goregaon (E), Mumbai, Maharashtra

Comprehensive Event Focusing on Logistics Infrastructure

& Services Development

Highlights of the expo

An in-depth plunge into the current logistical needs

India Supply Chain Summit: Know the latest advancements, trends and strategies of the sector

India Multimodal Logistics Summit: Addressing the needs of the entire of logistics community of end users, intermediaries & service providers.

Be CSCA certified during the three-day exhibition

After the Centre’s boost to develop the ambitious Sagarmala project, Maharash-tra is going to benefit with a new port at Wadhwan near Da-hanu and a national

highway connecting Jawaharlal Nehru Port Trust with Hy-derabad.The announcements were recently made by Nitin Gadkari, Union Minister for Shipping and Ports. Gadkari also claimed the Sagarmala project would be completed in just five years time, aiming to make logistics cheaper in the country by using waterways.

“We are developing eight new ports in the country of which Wadhwan in Maharashtra, Sagar in West Bengal and Colachel in Tamil Nadu are on the priority list. The Sagarmala project has a 10-year period for development. But I will make it possible in five years time. Major ports have registered profits of `4,200 crore in 2015-16. We have launched an ambitious program ‘Project Unnati’ to moder-nise our major ports and investment is of USD 50 billion,” Gadkari said in a statement. Unfolding his plan for port development, Gadkari said six multimodal logistics parks are planned.

India’s only definitive and complete logistics event, India Logistics Expo is scheduled for May 19-21, 2016 at Bombay Exhibition Centre, Goregaon(E), Mumbai, Maharashtra.The exhibition will not only showcase the topmost product and services but will also be a one-of-its-kind by inclusion of logistical solutions for projects, contracts, agriculture and food, e-commerce, IT, intralogistics, multimodal and anything that that comes under the purview of logistics. This exposition is an extension of what we have all been hearing for the last one year or so and what our government has initiated– ‘Make in India.’ The summit will focus on bringing to the forefront the latest developments, trends, strategies in the area of supply chain management. The summit will cover strategic topics like Algorithmic Supply Chains, Bimodal Logistics, Supply Chain Simulation, Supply Chain Analytics, Supply Chain Visibility, Designing Omni-channel Networks, etc.

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nEWS

MT Krishna Babu, Chairman, Visakhapatnam Port said, “Once work on Elevated Freight Corridor to divert goods vehicles from highway which criss-crosses in the city and Integrated Logistics Park near Anakapalle is completed, evacuation of cargo will become very fast giving freight advantage to the trade.”

Visakhapatnam port recorded 16 per cent growth in container traffic by handling 291,000 Twenty Foot Equivalent Unit (TEU) during 2015-16. This is expected to grow go up to 3,20,000 to 3,40,000 TEU. Sushil Mulchandani, COO, Visakha Container Terminal said, “Our performance is quite encouraging, mainly due to focus on coastal shipping. We could bring containers from Kolkata-Haldia in small vessels and transship them to Mundra in Gujarat.”

For the first time in its history, Kandla Port achieved 100 MMT cargo throughputs in 2015-16 after it registered 8.17 per cent increase in cargo volumes during the just ended fiscal compared to 2014-15. Kandla is the second port in the country to touch this mark after Adani Group’s Mundra port in 2012-13. In the year 2014-15, KPT had clocked 92.5 MMT in cargo volumes.

“This throughput at Kandla Port was accomplished despite Essar Refinery shutting down on account of maintenance, rain and bad weather affecting routine port operations, maintenance at cargo berth number six, idling of container terminal at the port and the continued industrial slowdown in the country,” stated a release from Kandla Port Trust. This year, Kandla port handled over 2030 ships. During the year, the average turnaround time at the port improved to 2.19 days from the earlier 2.53 days. Also, idle container facility began operations at the port and boulder stone exports resumed.

The Mumbai Metropolitan Regional Development Authority (MMRDA) is considering an increase in the Floor Space Index (FSI) in Bhiwandi near Mumbai in a bid to develop the town into a logistics hub, said two officials aware of the proposal. The agency has prepared a development plan for more than 2,000 hectares of land, around 500 hectares of which will be used for the hub. This will be part of MMRDA’s strategy to create more growth centres in the Mumbai Metropolitan Region (MMR).

The government has drawn up plans for capacity augmentation of the existing berths in Kolkata Port and Haldia Dock, setting up of new berths and jetties based on viability, as well as by way of encouraging port-based investment on the land belonging to Kolkata Port. This information was given by the Minister of State for Shipping, Pon Radhakrishnan, in the Rajya Sabha.

Vizag port gears up to become transshipment hub

Kandla port touches 100 MMT cargo handling mark

Bhiwandi may get FSI bounty

Plans drawn up to revamp Kolkata Port

nEWS


PRoFILE

High Speed Self-Repairing Door by Gan-dhi AutomationsPrime Reset is a unique high speed self-repairing door with latest technology that prevents downtime of the door system. In case the curtain is impacted accidentally, it will cause the curtain to move out of the guides without damage. The movement of the door is designed in such a way it can be recovered with a simple opening and closing operation. Gandhi Automations manufactures doors of the highest quality that meet the issue for greater flexibility desired by clients. High speed self-repairing door in PVC is the most suitable solution in the field industries; it lowers the time of transition from one facility to another, avoiding any human error which can cause damage to the high speed door, and all this thanks to the innovative ‘anti-crash system’.Gandhi Automations provides world class products with great security. Below are the features of self-repairing high speed doors offered by Gandhi Automations:• Flexible and self-repairing door• Functional, safe, quick and resistant• Innovative anti-crash system • Can be equipped with PVC vision windows • Self-lubricating maintenance free guide • Smooth and silent opening and closing • Protects traction unit, enables rapid wiring and safety photocell• Flexible curtain in self-extinguishing material • Self-resetting without intervention• Quickly back to operation • Control panel designed for an intensive continuous service

AAI wins ‘Golden Peacock Award’ for Innovative Product/ServiceAirports Authority of India (AAI) has been awarded the prestigious ‘Golden Peacock Award’ for Innovative Product/Service for the year 2016 for second consecutive year under Innovative Product/service category for Aerodrome Safeguarding application system also know as NOCAS (No Objection Certificate Application System) Version 2.0 in Aviation Sector.

The award function, held in Dubai recently saw His Highness Sheikh Nahyan Bin Mubarak Al Nahyan, Hon’ble Cabinet Minister of Culture and Knowledge Development, Government of UAE in the presence of distinguished gathering of business leaders, academics, boardroom professionals and policy makers.

EVEntS

S.Raheja, Chairman, AAI (in centre) with the award presented by His Highness Sheikh Nahyan Bin Mubarak Al Nahyan, Hon’ble Cabinet Minister of Culture & Knowledge Development, Govt of UAE.

EVEntS

AAI wins ‘India Pride Awards’ for ‘Excellence in Infra Development’Airports Authority of India (AAI), an organisation which is working tirelessly towards India’s sustainable growth and renowned for providing state-of-the-art infrastructure, passenger facilities and air navigation services at all the airports across the nation has recently won Dainik Bhaskar ‘India Pride Awards’ – 2015-16 for ‘Excellence in Infrastructure Development’ in the category of Public Sector Undertaking – Central, for which all leading PSUs of India participated.

The winners were felicitated and congratulated by the Chief Guest M Venkaiah Naidu, Hon’ble Union Minister for Urban Development, Housing and Urban Poverty Alleviation and Parliamentary Affairs, Ravi Shankar Prasad, Hon’ble Union Minister for Communications and Information Technology and Radha Mohan Singh, Hon’ble Union Minister for Agriculture.

The award was received by S Raheja, Chairman, Airports Authority of India from M Venkaiah Naidu, Hon’ble Union Minister for Urban Development, Housing and Urban Poverty Alleviation and Parliamentary Affairs.

G a n g a v a r a m Port Limited started drinking water distribu-tion program for the nearby vil-lages of Srinagar colony, and Gan-gavaram which

are severely hit by water shortage. The program was inaugurated by Palla Srinivasa Rao, MLA, Gajuwaka con-stituency at Srinagar colony and presided over by Tippala Gurumurthy Reddy (Ex MLA), Cheekati Appa Rao and other village elders. K Raja Ratnam Naidu, Senior Vice President and L P S Ramu Naidu, Vice President, Gan-gavaram Port Limited were also present at the occasion.

The initiative which is a part of port’s CSR program is a step to provide essential elements like drinking water to the neighbouring villages.

Gangavaram Port begins ‘Water Distribution Program’


EVEntS

ACCD organises last luncheon of 2016

FedEx Express wins Logistics Award

The Air Cargo Club of Delhi (ACCD) managing committee organised the last luncheon of this year recently. More than 110 members graced the occassion. The guest speaker was Dilshad Master, a renowned personality with car rear spanning 22 years in the television industry. She shared her views on how important it is to balance work and pleasure. She shared some incredible natural adventures that can not just be fun but also teach us various important lessons of life that can be handy in the corporate world too.

FedEx Express was the recipient of the ‘Express Logistics Provider of the Year’ at the annual Supply Chain and Transport Awards (SCATAs) 2016.

FedEx Express received the award based on its solid network and its ability to reach 220 countries and territories worldwide, according to the judges.

Its portfolio of solutions includes a wide and innovative range of services that are designed to meet the needs of all industries in the region, including those who may have critical requirements such as the healthcare and aviation sectors. “We have consistently developed and innovated through our services and offerings,” said Nathalie Amiel-Ferrault, Vice President of Customer Experience, Marketing & Communications, FedEx Express Middle East, Indian Subcontinent and Africa.


JBS Academy Pvt Ltd, Ahmed-abad and TeamLease Skills Uni-versity, Vadodara have signed a Memorandum of Understand-ing to jointly conduct training programs in several verticals of the logistics sector such as cus-toms clearance, freight forward-ing, shipping, port management, international business, export and import procedures and documentation. The objective of conducting short and duration

courses is to work jointly in creating talented and skilled personnel in the logistics sector nationally by 2022. JBS Academy Pvt Ltd, Ahmed-abad is part of the 59-year old JBS Group of Companies. The academy has been constantly creating a skilled workforce for the logistics sector since last five years.

JBS Academy and TLSU sign MOU

Samir J Shah, Partner, JBS Group of Companies Estd


Ethiopian Airlines voted as ‘Best African Airline of the Year’Ethiopian Airlines has been voted as the Best Cargo Airline of the Year from Africa at the ‘2016 Cargo Airline of the Year’ Air Cargo News awards held at the Lancaster London Hotel, London recently. The awards are based on the voting results of more than 18,000 supply chain professionals over a two month period. Ethiopian Airlines has been pioneering African cargo by introducing the latest technology and fostering the growth of air cargo transport by providing convenient cargo import and export. Ethiopian was the first in Africa to receive and operate the B777-200 LR freighter, which has exceptional uplift, range and fuel efficiency, and is perfectly suited for the transport of Africa’s growing import and export of freight.

EVEntS

Freight Systems breaks ground for advanced logistics center at Sanand

Freight Systems, Dubai-based global freight forwarding, logistics and supply chain company recently broke ground for an advanced warehouse and distribution center

at Sanand. The ceremony was attended by various senior representatives of the trade–clients, strategic partners and employees. The Guest of Honor P Shiva Prasad Reddy, Manager Material Flow Engineering, Material Planning & Logistics, Ford India Pvt Ltd, Sanand addressed the gathering. The keynote address was given by David Phillips, Managing Director, Freight Systems Group.

Freight Systems is building a state-of-the-art world class logistics and distribution centre. The facility will be constructed

over approximately 19,250 sq m of land, and will have a built-up area of approximately 11, 250 sq m. The logistics centre will provide

just-in-time and just-in-sequence logistics and value-added services to the automotive, engineering and other industries in the region. It will also feature a cool storage zone to maintain temperature-sensitive goods, primarily related to retail, pharmaceutical and healthcare. The facility will have approximate 10,000 pallet locations. It will deploy cutting-edge technology and automation solutions to optimise workflow processes and minimise delivery times.

Phillips said, “At Freight Systems, our approach is simple: identify customer needs, provide timely solutions, measure customer satisfaction and improve the service speed. Our planned facilities at Sanand are calculated to help us achieve higher degrees of excellence and allow us closer collaboration with our customers by offering them services that are always top of the line.”


From Left to Right- David Philips, Sameer Shah, Manu Raj Bhalla, P. Shiva Prasad Reddy, Rahul Vakil


EVEntS

Kelley organises Golf TournamentKelley India recently organised a Golf Tournament with active support from their local dealer Aman Aircon at Aravalli Golf Club, Faridabad. Aravalli Club is a beautiful Golf Course situated in the heart of the industrial town Faridabad. The idea of this event was to popularise healthy life style through Golf among young students, women and business owners in tier 2 cities.

There was an unexpected response from various educational institutes too. Anand

Mehta of Dayanand Schools and Deepak Yadav of Vidya Sagar International School were also present there to grace the occasion. Rohit Bhalla, Managing Director, Wings Auto, Faridabad, presented the awards to the following categories as chief guest:1. Group Winners2. Longest Drive3. Nearest to the Pin4. Straight Line Drive5. Eagles

6. Net Winner7. Gross WinnerTotal 63 players ranging from industrialists to doctors to young kids, made their best efforts to win the title. Raman Singh was adjudged the winner of the tournament, who hit 74 (2 over).

Rohtas Singh (the 14 times national champion) was honoured with the Life Time Achievement Award. It was indeed a successful tournament.



EVEntS

Kerry Logistics raises stake in Indev LogisticsKerry Logistics Network Limited, a leading logistics service provider in Asia recently announced its entry into Memorandum of Understanding to increase its stake in Indev Logistics Pvt Ltd. The announcement was made at an inauguration ceremony held recently in New Delhi with Nirmala Sitharaman, Minister for Commerce and Industry of India, as the esteemed Guest of Honour. Also in attendance were the top managements from Kerry Logistics and Indev. The strategic move will see Indev rebranded as Kerry-Indev. S Xavier Britto, Chairman, Kerry Indev Logistics said, “Indev stands for Indian Development, and during the last 32 years, it has grown into a pan-India logistics service provider from its base at Chennai. We are excited about the ‘Make in India’ and other development programs initiated by the GOI and the opportunities emerging for logistics services. We are entering into this strategic partnership with Kerry Logistics to offer our customers customised cost-effective logistic solutions across the globe.”

DHL Group,UNDP begins GARD workshopDeutsche Post DHL Group and the United Nations Development Programme (UNDP) recently began its four-day ‘Get Airports Ready for Disaster’ (GARD) workshop with Chennai International Airport (CIA) to help enhance its function as an aid and relief hub during natural disasters.

“The frequency and severity of natural disasters will continue to rise in the years to come,” said Marina Walter, Deputy Country Director, UNDP. “Practical experience gained through other disasters, can help us ensure that the most critical functions during any relief effort–particularly airports, which act as the gateway for emergency aid are able to operate with life-saving speed and precision, even under extremely testing circumstances,” she added.

Chris Weeks, Director of Humanitarian Affairs, DHL said, “The GARD workshops have seen DHL and the UNDP collaborate with authorities all over the world to analyse and define the capacities needed at airports in case of natural disasters. That gives us a uniquely informed perspective when it comes to understanding how airports like Chennai can best adapt their resources to seamlessly enter relief mode.”

S Xavier Britto, Chairman, kerry Indev Logistics

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With an experience of over three decades, Samir J Shah, Partner, JBS Group of Companies Estd advices logisticians not to run after money, but after domain knowledge.This versatile personality is involved in many things like writing, community services, skill development and lot more. In a candid conversation with Ritika Arora Bhola, the veteran shares his experience, mantra for success and also gives a logical message

PEoPLE ConnECt

“success is an inspiration, failure is an experience”

and importers of this new mode of transport, developing new transporters, packing agencies, fumigation agencies, convincing people around the ICD that their children could have great careers here, setting up trade associations and interacting with bewildered officials in state government and Railways amongst others was the most interesting phase and the memory lingers.

Beliefs & Values I live by Consistency in working and thinking knowing that many observe and follow my actions, here are some of the beliefs and values I live by:• Belief that I am here to work as a professional and not doing a business• Not being an owner but a Senior Management person• The importance of domain knowledge of the areas where one works• Helping others grow both professionally and personally • A belief that the industry will prosper only if there are many players

here–small, medium, large

Mantra for SuccessSuccess to me is that I am in a position to make a difference to others. The fact is that many persons are dependent on my activities that over 150 families are working along with me. Success is also a feeling one gets when someone compliments the work done and appreciates the contribution.

Hobbies & Interests I am involved in a number of community actions, both in logistics and non-logistics. It involves a lot of travel. Skill development takes a lot of my time. I also write books on my domain. Whenever in Ahmadabad, I spend time with my family and pets. Whenever possible we go for movies, dinners and other things.

Message for Aspirants My father believed that ‘Success is an inspiration and failure is an experience’–I am guided by the same. Be true to what you are doing. Do it to your satisfaction, since that alone will satisfy your client. Do not run after money but after domain knowledge, consistency and excellence, and money will follow.

Journey So FarMy father was a customs broker, so I grew up with the talk of customs and cargo visits, with a lot of travel across the country with my parents for conferences and meetings that my father had to attend. I started in the early eighties. The experiences I have had – the good, the bad and the very nasty, have been great contributors to my personality. I was also fortunate to have been active when the entire way EXIM happens in India underwent a change. So far, I have handled bulk, loose cargoes, projects, diamonds etc., and then made a transition into container traffic at old Mumbai port. I saw the beginning of Nhava-Sheva port and then had the good opportunity to see firsthand the development of the various ICDs in western India and the multiple ports in Gujarat. Since I had an interest in community work, this period also gave me an opportunity to participate and contribute to all the changes. The development of this segment outside of the traditional ports, new markets, new entrepreneurs, new career options for the youth – all very exciting and interesting.

Biggest Challenge I would not consider it a challenge. I shifted to Ahmadabad before the ICD was set up. The initial years in making customs in inland India understand how the ports worked–the difference between a preventive approach and an appraising approach, getting DGFT to change the definitions of export, etc., convincing the exporters


cargo connect magazine may 2016

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