transport & logistic hub july 2016 edition

July-Aug. 2016

Less ismore.Featuring Transport in SupplyChain: Can find ways to cut cost

Featuring on TransportManagement Solutionsfor the entire shippingoperation

TRANSPORTLOGISTIC HUB&

Editorial

The crucial shower of adversity should not make us cynical, but wise!A piece of wisdom having the power to turn adversity intoopportunity. Incidentally, it has a similar impact on our sector aswell… and why not?It’s the people who make companies and companies do businessand business & companies form a sector. Transportation is healthierthan the economy on which it depends, and has learned the lessonsof the crisis well. It still faces economic, capacity and supply chainrisks, but has renewed energy in tackling them. Caution appears tohave pushed the sector towards renewed interest in industrycollaboration and efficiency. From redesigning inbound networksthrough new fuel-saving techniques, and from pooled IT to sharingbackloads for vehicle distribution, there is evidence that thetransport sector has indeed learned the lessons of the crisis.

There have been many avenues from where the transport sector hasbeen benefitting. E-commerce, pharma, auto industry and consumerdemand from tier II and tier III cities have been good. Nevertheless,supply chains do grow more complex every year, because of the factthat almost every company is getting more global, which is one ofthe reasons, if not the only reason. Then again, companies are tryingto optimise their supply chain performance, while, at the sametime,increasing their focus on risk management year-over-year. If it is afact that a majority of the Indian population lives in the rural India, itis also a grim reality that healthcare and critical medicine supply areseldom available in this part of India, again, with logistics and supplychain sharing some part of the guilt. When ‘transportation & logistics’gets resounded as the limiting factor towards nation building, thescope of this segment also gets transcended into more than justbusiness and service. It is the need of the nation, which whenresponded promises positivities for all…the nation as well as thetransport and logistics sector.

In this reality, the Indian Transportation industry is finally warming tothe hot opportunity. No wonder then that this segment is attractinghuge investments from domestic as well as international investors.

Indian Transportation industry

Editor

3 Transport & Logistic Hub JulyAug. 2016

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JulyAug. 2016

is finally warming

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table of contents

06

Supply Chain12

News

14 Transport Status

18

Rail Analysis

16

Freight Forwarding

26

Performance

Measurement

20

New Standard

22 Intermodal

24 Bus Transport

28

Technology

28

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Event Calemdar

INTERNATIONAL CONFERENCE

FIVE - Fires in Vehicles5 - 6 October 2016 • Baltimore, USA

www.iresinvehicles.com

Electric,Hybrid, and Hydrogen Vehicles

Trucks Buses

TrainsCars

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GOVERNMENT PERMITS CENT PERCENTFDI IN DEFENCE AND CIVIL AVIATION APM TERMINALS INLAND

SERVICES, SOUTH ASIA SIGNSEXCLUSIVE AGREEMENT WITHVOLVO IN CHENNAIJune 21, 2016: The Indian government announced sweeping reforms to

rules on foreign direct investment, opening up its defence and civilaviation sectors to complete outside ownership and clearing the way forApple to open stores in the country. The reforms also loosen restrictionson inbound investments in pharmaceuticals and retail. Apple is expectedto be a beneficiary of a three-year relaxation India is introducing on localsourcing norms with an extension of up to five years possible if it can beproven that products are “state of the art”. Other single-brand retailerslike furniture giant IKEA are also expected to benefit.

Defence contractors that have been reluctant to transfer technology tomanufacture equipment in India would get the right to own localoperations outright, up from 49 percent previously. In other changes,India allowed 100 percent foreign direct investment (FDI) in civil aviation,following on from the previous launch of a new policy that loweredbarriers to entry for airlines that want to fly international routes. Thegovernment also allowed foreign companies to own up to 74 percent in‘brownfield’ pharmaceuticals projects without prior governmentapproval. India already allows 100 percent ownership of greenfieldpharma businesses. The reforms announcement comes shortly afterIndia’s central bank governor Raghuram Rajan, feted by foreign investors,announced he would not be available for reappointment when his termexpires in September. Rajan’s decision, whose reforms have

APM Terminals Inland Services,South Asia has signed an exclusiveagreement with Gothenburg,Sweden-based Volvo Cars toprovide a dedicated, specializedwarehouse facility in Chennai. Thecustomised warehouse will providean integrated Inland Servicessolution for the Volvo CompletelyBuilt Up Units (CBUs) importedfrom Europe to India through thePort of Chennai.“The 102,000 square foot facility willinclude bonded and non-bondedareas with an overall capacity of 500vehicles. This specialisedwarehousing solution by APMTerminals Inland Services is a steptowards expanding its portfolio ofcustomized solutions forcustomers. “We are pleased to bethe exclusive Indian partner forinland logistics and servicessolutions for Volvo Cars, one of theworld’s best known and highlyrespected automotive brands,” saidAPM Terminals India Pvt. Ltd.managing director, AjitVenkataraman.

22 June, 2016

Fastrackerz FT0009 a boon for vehicle real timemonitoring

June 21, 2016: Fastrackerz, a renowned name in segment of fleetmanagement and solutions has proved itself yet again as one of the driving forces in being true pioneers in the field of transportation. Completing adecade in the industry with an admirablerange of products and solutions, the company has successfully tried and tested FT0009 with 10000 vehicles, which is a GPS/GPRS Enabled device that is usedspecifically for Vehicle Real time Monitoring. The product which has beenoperational in the market for the last one year has been growingcontinuously due to its exceptional features that includeImmobilisation,SOS,Alerts on Over Speed,Engine ON/OFF, Tow alarm, ACON/OFF apart from real-time tracking.

FT009 is equipped with real time vehicle tracking and updates, InternalGPS/GSM antenna provision and replaying Route taken by the vehicle.Other attributes include history data that can be stored up to sixmonths, route taken by the vehicle that can be managed via tracker andfacilitating bird view mapping of vehicles. Some additional benefits thathave made the product popular in the marketplace include amenitieslike tow alarm, over-speed alarm, SOS panic alarm and External powercut alarm.

News

6 Transport & Logistic Hub JulyAug. 2016 www.behlmedia.net

21 June, 2016

UBER TOEXPAND TO 50INDIAN CITIES

JET AIRWAYS STARTS HYDERABAD TODAMMAM FLIGHT

June 17, 2016: Jet Airways, will operate new daily services fromHyderabad to Dammam and from Mangaluru to Sharjah fromAugust 7. The addition of these new services will bolster Jet Airways’offering to the Arabian Gulf region, further strengthening airline’sgrowing network and significantly enhancing connectivity forpassengers. Dammam will be the second city in the Gulf region tobe connected with Hyderabad by Jet Airways after Abu Dhabi. Withthe addition of Sharjah, Jet Airways will operate to three cities in theGulf region from Mangaluru. The airline currently operates dailyflights to Abu Dhabi and Dubai from Mangaluru. The new flights willbenefit large number of Indians travelling from to the Gulf region toHyderabad and Mangaluru, from where they also have a choice ofdomestic connections to other Indian destinations. Jet Airways flight9W 504 will depart Mangaluru at 9.30am and arrive into Sharjah at11.45am (local time). The return flight Jet Airways 9W 503 will departfrom Sharjah at 12.45 (local time) and arrive into Mangaluru at5.55pm.

June 17, 2016: Uber shall be available in50 cities in India by the end of thecurrent year and is looking to partnerwith local companies to expand itsbusiness.

Uber currently has operations in 27cities in India and “we will try to be 50cities by the end of year. Our goal is toreach everybody and we have to this instages,” said Eric Alexander, head ofbusiness, Uber Asia.He was talking toreporters on the sidelines of an eventwhere Uber announced partnershipwith Tata companies.

Replying to a query, Alexander said theincentives offered to driver partnerswas not hurting their business in India.Uber, through its technology, is enablingdrivers to be more efficient and makemore trips per hour to make moremoney. “At the end of the day we havemake our driver partners make money,”he said.He, however, said the companywas trying to make the business standon its own. When you start the businessin any city, you have to invest heavily butovertime you tune it. Our goal is tomake business stand alone,” he said.

Uber, which recently announcedpartnership with Paytm, State Bank ofIndia (SBI) and Indian Army welfarebody, is looking at partnerships withmore local companies to give flexibilityand options to driver partners andconsumers.

June 16, 2016: Jawaharlal Nehru Port Trust is intensely focusing onproductivity improvements as India’s largest public container handlerexperiences a healthy pickup in cargo movements after sluggish growthlast fiscal year.The top port expanded its “inter-terminal truck transfer” proceduredesigned to speed drayage by connecting APM Terminals-operatedGateway Terminals India to DP World’s Nhava Sheva InternationalContainer Terminal, and vice versa. “As part of the port’s continuousendeavor to create more value for the trade and ensure better servicecoupled with reduction in congestion on the approach roads leading tothe terminal gates, the final leg of the procedure under ITT has nowbeen implemented,” JNPT said in a trade announcement. The inter-terminal procedure allows truckers to drop off laden export containersat one terminal and pick up import units from a neighboring facility witha single gate transaction. The system was initially set up between port-owned Jawaharlal Nehru Container Terminal and GTI, and buoyed by apositive impact on gate movements, authorities introduced the programbetween JNCT and NSICT toward the end of March 2015.

News


JNPT LOOKS TOWARD OPTIMISATION

DP WORLD EYES INVESTMENTSIN ARGENTINA’S PORTS

DHL GLOBAL FORWARDING SEESKEY INDIAN MARKET WITH A NEWCEO APPOINTMENTJune 06, 2016: DP World plans to serve

the Argentinian economy through itsinvestments in ports and maritimeservices. DP World plans to increase itscontainer and cruise business in the Port ofBeunos Aires featured in the discussions.DP WorldBuenos Aires has invested $250 millionin the last 20 years and currentlyoperates the Terminales Rio de la Plata(TRP) container terminal with throughputof 600,000 TEUs per year, 37 percent ofthe market. The company’s Buenos Airesterminals also provide cruise capacity ofmore than 300,000 passengers ayear. TRP is the main terminal in the cityand is located in the heart of thedowntown area with railway access. It isthe largest container terminal in thecountry, handling general cargo andcruise vessels alongside its containerbusiness.

INDIA TO INVEST RS 3.3LAKH CR ON THREE NEWRAIL FREIGHT CORRIDORS

All earnings from freight corridors to go toIndian Railways, which would then share35-40 per cent of it with DFCC as TrackAccess Charges. India will spend Rs 3.3lakh crore to set up three new arms of thededicated rail freight corridors,crisscrossing the length and breadth ofthe country over the next eight years. The5,500-km-long new corridors wouldsupplement the existing plans to lay3,300-km-long two dedicated freightcorridors (DFC). “The feasibility study ofthe three corridors has been completedand submitted by RITES. The threecorridors would be developed at a cost ofRs 3.3 lakh crore in around eight years,”said Adesh Sharma, managing director,Dedicated Freight Corridor Corporation(DFCC), an arm of Ministry of Railways,implementing the Rs 82,000-crore DFCCproject.

News


June 06, 2016: DHL Global Forwarding, the leading internationalprovider of air, sea, and road freight services, appointed GeorgeLawson as chief executive officer and country manager for India,effective June 1, 2016. George is now based in Mumbai. In his newrole, as a member of the Asia Pacific Management Board, Georgereports to Kelvin Leung, CEO, DHL Global Forwarding Asia Pacific.“With the Indian economy expected to grow at 7.5 percent in FY 2016-17, India remains a key strategic region for DHL and we seetremendous opportunities in the country,” said Kelvin Leung, CEO,DHL Global Forwarding Asia Pacific. “George has successfully executedglobal strategies to drive growth and has a deep understanding of ourbusiness through the last two decades he spent with DHL. Hisexperience will be beneficial in bringing our business growth to newheights in India.”

George joined DHL in 1992 and has held roles across different fieldsincluding Sales, Operations, Marketing and General Management inAsia and Europe, including a stint as chief operating officer, Singapore.Most recently, George was the senior vice president – Global Head ofMarketing and is the key architect of DHL Global Forwarding’s CertifiedInternational Forwarder program that engages employees anddevelops their expertise to drive outstanding customer experienceand financial results. “With India gathering momentum to hold itsranking as the world’s fastest growing large economy in the firstquarter this year, it’s an exciting time to be here,” said Lawson.In India, DHL Global Forwarding provides sector-focused solutions forTechnology, Engineering & Manufacturing, Fashion, Life Sciences &Healthcare, Automotive, Energy and Chemicals. The company alsosupports the growth of SME segment in India by offering access to theworldwide markets through the extensive DHL global network. DHLGlobal Forwarding has also made significant investments in its FreeTrade Zone facilities in Mumbai and Chennai.

India and Brazil opening upaviation industry

ELEKTRANS GROUP APPOINTSNEW MD

June, 2016 Elektrans Group announced thepromotion of Deepak Arora to managing directorof Elektrans Shipping. Arora has been with theElektrans Group for 4 years during which he hasserved in several executive positions withinElektrans, proving himself as a committedcompany advocate. He is thought to have apositive influence on his team with a leadershipstyle that combines poise and great customerservice skills has been truly appreciated, asrecognised, both within Elektrans as with ourmany stakeholders. Deepak will successfully takethe helm and lead our growing Shipping portfoliowhich is going through an important phase ofconsolidation, organisational adjustment,internationalism as rapidly expansion of itstanker owned fleet.

Two BRIC states introduced sweeping reforms for theirnational aviation sector in the past two weeks. On the onehand India rescinded its 5/20 rule that required domesticairlines to operate in the domestic market for five years andown a fleet of 20 aircraft before being allowed to commencecross-border services. Carriers which have been in businessfor over five years are still obliged to fulfil the secondcondition, unfortunately. On the other hand, foreigninvestors will be allowed to acquire an up to 100% stake inIndian airlines in the near future. The sole condition is thatthey do no stem from the airline sector. Up until the newreforms, the upper limit was 49%.Brazil’s parliament also passed a similar regulation. To date,foreign investors were only permitted to hold 20% of theshares in a Brazilian airline. The original proposal to raisethe maximum holding to 49% was discussed and rejected.This means that there will be no upper limit in LatinAmerica’s largest country in future.

June, 2016

News


INDIA EYEING BANGLADESH’SPAIRA PORTAfter bagging the strategically important Chabahar Port in Iran,the government is looking eastwards and is in discussions withBangladesh to develop a similar facility in Paira. India PortsGlobal, the joint venture between state-run JNPT and KandlaPort for overseas ports, is interested in the expressions ofinterest which have been invited for construction of Paira/Payraport in Bangladesh, the Shipping Ministry said in a release onFriday. Talks are on between our Foreign Ministry and them(Bangladesh). Dhaka also wants us. We have sent a team therefor studies,” union shipping minister Nitin Gadkari toldreporters, but did not disclose the port’s location. A mediareport in February had said China had evinced keen interest inbuilding the Paira port. In what was taken as a reflection of thegrowing Indo-Bangladeshi ties, Dhaka had cancelled the dealand was about to award it to New Delhi. The Narendra Modigovernment has been talking about an ‘Act East’ policy, asagainst the previous regime’s ‘Look East’ policy, and

Four airfreight carriersreceive new industry awardJune, 2016

DHL has recognized the performance of fourmajor air cargo carriers with the presentation ofits first DHL Carrier Award for Reliability andExcellence (DHL CARE award). The accoladeaims to set a new industry standard for reliabilityand quality for transporting temperature-sensitive life sciences products by air. The firstrecipients of the new award were: AmericanAirlines, Cathay Pacific, Swiss International AirLines and United Cargo. The awards were waspresented at the 16th DHL global life sciencesand healthcare conference in Miami FL (USA),this week. The event brought together majorpharmaceutical and medical devicesmanufacturers to discuss industry logistics andsupply chain trends.

Celebi handling SIA inMumbai

GEODIS MOVES TO NEW MUMBAIOFFICE

June 2016

The Qube at M.V. Road in Andheri (East) is toset to house the service provider Geodis. Thecompany, which has been present in Indiasince 1998 and operates 14 locations there, isstrengthening its presence Mumbai byrelocating its premises to the Qube. The moveis driven by the continuous growth of Geodis'India business and the expansion of theMumbai team. "The relocation will foster ahigher level of service excellence to ourcustomers and also accentuates ourcommitment towards increasing our businessdevelopment focus in India’s western regionof India," says Leif Voelcker, Geodis' clustermanaging director South Asia. The mainservices Geodis provides in this region arefreight management, industrial projectmanagement, buyer's consolidation, and afree trade warehousing zone. Moreover,Geodis India offers tailor-made solutions fordifferent vertical markets.

New container trainintroduced in India

June 2016

India has launched its first scheduled container train service.It starts from the Okhla container terminal in Delhi and runsto Whitefield ICD in Bangalore. The train runs once a week ineach direction, with a transit time of 70 hours.

A wide range of domestic groupage traffic is being targetedby the new option, including steel tubes, grains, electronicgoods, chemicals, cars and automobile spares. The ContainerCorporation of India (Concor) expects the volume ofcontainerised traffic in this sector to improve by 25-30% withthe introduction of assured transit times.


News

From (8 June 2016), Singapore Airlines is entrusting itsground handling needs in Mumbai (India) to Celebi NasAirport Services India. The ground handling agent is part ofCelebi Aviation Holding.www.celebinas.in

Fulsunge directing inIndia's western region

PATEL INTEGRATED LOGISTICSCOLLABORATES WITH SAUDI-BASEDNATIONWIDE GROUP TO FLOAT JV

Sushma Fulsunge has been named regional director western region of Geodis India. Prior to joining the company, Fulsunge heldseveral positions at MNC in India. She has more than 20 years of diversifiedexperience in the industry and comes with an in-depthknowledge of the local market. In her new position herpriorities will include, inter alia, the implementation ofan extended business development plan. Geodis, partof the French SNCF Logistics group, has been presentin India since 1998. The company currently operates14 locations and offers integrated logistics solutionscovering freight services, warehousing managementand local distribution. In India’s western region, Geodisruns offices in Mumbai, Pune, Ahmedabad andBaroda.

June 2016: After the recent visit by prime ministerNarendra Modi and the sweeping economic reformsby the Arabian country, India’s logistics behemothPatel Integrated Logistics (PILL) has teamed up withSaudi Arabia’s renowned Nationwide Group todevelop Pivot Logistics.

The joint venture, harnessing the synergies of twoleading groups with legacy and experience, has beenfloated to tap the emerging opportunities in thelargely-fragmented logistics sector of GCC and at thesame time to add new dimension to the ecosystem.Nationwide Group was founded by Saudi’s firstbusinesswomen Abeer Bint Mohammed, who isranked 11th on last Forbes Most Powerful ArabWomen list while PIL was launched by Asgar Patel asa one-truck entity back in 1959 and transformed itinto a global leader.

Under the Memorandum of Understanding, PILL willshare its know-how, manpower and technology toset up and manage the end-to-end operations of theventure. In the innovative collaboration, PILL will notmake any capital investment, but will earn 19.85percent sweat equity for applying their superiorknow-how in managing the venture’s operations.

Pivot Logistics will set up a network of 50+destinations with operations in warehousing andlogistics software to begin with and is expected tomake a make a revenue of around Rs 40 crore in thenext 2-3 years. Further, they are in the process ofdeveloping a technology that will grow their networkmany-fold and ease scalability. Due to their patent-pending technology, the details have remainedclassified.

AIR INDIA SET TO COMMENCEBHOPAL-PUNE-RAIPUR OPERATIONS

May 28, 2016: In a bid to enhance regional connectivityAir India has commenced operations to Pune viaRaipur from Bhopal. Flight, AI 9865 operating with a 70seater ATR-72 took off from Raja Bhoj Airport, Bhopalfor Raipur on schedule with almost full load. Present onthe occasion to launch the flight minister of Home andJail, Madhya Pradesh, Babulal Gaur, said “Wecongratulate Air India for starting this flight as it willsave travelling time for passengers commuting toregions like Raipur and Pune from Bhopal. The 100percent occupancy on the first flight is a testimony ofthe demand for such flights to push regionalconnectivity.” At Raipur the flight was received andflagged off by minister for Agriculture, Chhattisgarh BrijMohan Aggarwal. The passengers arriving at Pune weregreeted by the airport director Ajay Kumar who alsogave the boarding card to the first passenger to check-in for the return flight to Raipur.

News


ost of the times the term supply chainmanagement seems to be confusing andpeople may wonder what exactly supplychain management is. For many people,the term supply chain management is like ajargon that could only be meaningful tothose working in certain industries, but inreality, supply chain management issomething that affects almost everyone inthe world and we can find the concept inthe manufacturing and distribution of anyproduct that we use today. If simply put in,Supply Chain Management (SCM) is theprocess of managing the supply chain of anorganization. So here the question is, whata supply chain is all about? A supply chainis a system of organizations, people,activities, information, and resourcesinvolved in moving a product or servicefrom supplier to customer. Supply chain

activities transform natural resources, raw materials,and components into a finished product that isdelivered to the end customer. The first impressionthat a layman may draw from the term supply chainmanagement may be the management of themovement of goods. But obviously the term is muchabove that inference. The overall scope of Supply .Chain Management typically includes many factors,such as: procurement, planning, logistics andtransportation management, freight and inventorymanagement, materials handling, order fulfillmentand more. Supply Chain Management deals with thecoordination of resources in an organization. Logisticsmanagement focuses on the organization as a wholeand not to individual units and departments. It is aboutthe planning and allocation of resources which may bein the form of men, machines, materials, money andtime.

Supply Chain


Supply Chain education Concerns and opportunities

M

Top companies always look forward to keep their goods and services flowing tomarketplace effectively, quickly, and cost effective as possible. That’s why, they arerelying on the skills on supply chain professionals with the right amount of skills

Need for Supply Chain EducationCompanies around the world, engaging insupply chain operations, prefer to hiresomeone with formal training in the areaof supply chain management for relatedroles. Unfortunately, we don’t have muchhuman power to satisfy the needs. Therearises the importance of skilling andtraining the people to occupy such rolesand to fill the gap in the supply chainindustry. Formal supply chain educationis the stepping stone in that process whichenables the students to put their basicplatform to dig into the ocean of supplychain management.

Supply Chain as a Career has alreadystarted during the industrial era, but nowdue to the clubbing of the supply chainwith technology, as a result scope forSupply Chain Education becameprominent creating a huge demandamong management graduates and alsoamong technical graduates. By knowingthe vast area of supply chain manyorganizations are providing education onsupply chain. Top companies alwayslook forward to keep their goods andservices flowing to marketplaceeffectively, quickly, and cost effective aspossible. That’s why, they are relying onthe skills on supply chain professionalswith the right amount of skills. So supplychain management is a bright spot thosewho want to build to make a promisingcareer. It opens up the goldenopportunities for growth and financialfreedom with freeness of mind and socialstatus. But the question is how can anaspiring supply chain manager preparefor a career in this growing, competitiveand complex field? What you gonna needis not only an outstandingcommunication skills, but also aleadership and negotiation skills/abilitiesalong with competent core basicknowledge in supply chain management.In addition to that wide

range of specialized knowledge in areaslike lead-time management, logistics,import and export, globalization and riskmanagement will serve you well to growup to an amateur level. That is why, theprofessionals in supply chain operationsare in rush to enroll in professional Supply Chain courses which will update them asindustry ready resources so as to capturethe aspiring opportunities in this field.

Career Opportunities in Logistics andSupply Chain ManagementEntry-level positions may include suchtitles as Operations Assistant, WarehouseExecutive, Transportation Assistant,Transport Coordinator, Warehouse Binner,E-commerce Delivery Executive, AssistantBuyer, Assistant Purchasing Agent andinventory clerk and the like. Some mid-level positions requiring additionalexperience and training are WarehouseSupervisor, Warehouse Manager,Transport Controller, Materials Manager,Procurement Specialist and PurchasingAnalyst. Leadership roles may includeStrategic Planning Director, Contracts andProcurement director and Vice Presidentof Supply Management.After acquiring a degree in supply chainmanagement, graduates no need to worryabout to start their career. Latest 2016Agility Emerging Market Logistics Indexshows that, logistics and supply chainexecutives consider India as the topemerging market with the most growthpotential. The good news is there is no needfor our SCM graduates to fly outside Indiafor looking a career, and it is for the firsttime supply chain professionals surveyedby agility ranked India in this top rank,beating china. A developed globalizedlogistics and supply chain managementsystem is also vital for the success of thegovernment of India’s ‘Make-In-India’plan. Hence SCM as a career in India is notjust a hope, it is going to real. Make sureyou are on the right spot

Supply Chain


Supply Chain as aCareer has alreadystarted during theindustrial era, butnow due to theclubbing of thesupply chain withtechnology, as aresult scope forSupply ChainEducation becameprominent creatinga huge demandamong managementgraduates and alsoamong technicalgraduates

Mr. Manish Kumar GuptaFounder & CEO, IndoGlobal

Institute of SupplyChainManagement:

eviewing the current status and performance of thetransport sectors i.e. road rail, inland waterways, airand maritime transport in ASEAN Member States(AMSs). the chapter is divided by sectors in 4sections i.e. Land Transport, Air Transport, MaritimeTransport and Transport Facilitation.LAND TRANSPORT Efficient land transport playsa vital role in fostering international trade with andwithin ASEAN region. The removal of barriers totrade in the land transport sector is therefore doublyimportant. First, the land transport sector is in itself

an important area of economic activity, and furtherliberalization in transport will therefore make animportant contribution in trade and services.Secondly, by enhancing efficiency and reducing thecosts of trade in goods, removal of barriers in theland transport sector will in turn lead to freer andmore open markets in the trading of physical goodsand movement of natural persons. To do this in waysthat protect the natural environment, promotegrowth, and meet the complex demands arising fromnew safety requirements will require anunprecedented commitment of skills and resources,

"Without transportation services and infrastructure such asautomobiles, railways, aircraft, and ships, the range of activitiesavailable to us would be severely limited, and it is fair to say that

modern society could not function"

Transport Status


R

STATUS OF ASIAN TRANSPORT SECTOR

and new levels of cooperation. In addition tophysical hardcore development, the softcomponent such as legal, regulatory,institutional, human resource, operationaland technological developments will alsoplay a vital role in facilitating the efficientand effective transport system.

AIR TRANSPORT The air transport sectorin the ASEAN region, which has a vasttransportation area, has become an importantmode actively supporting with air activeregion flow. As people, money andinformation move in a rapid and wide rangeglobal scale, the role of the air transportsector has become significant with thedevelopment of the liberalisation of airtransport sector.MARITIME TRANSPORT The maritimetransportation takes the fundamental role intrading. Especially, liquid cargo (petroleum,oil products) and bulk cargoes (grain,fertilizer, cement, coal, iron ore and otherminerals) have relied on maritimetransportation. Recently, container terminaloperation has been a beneficial business.Consequently, international hub ports such asSingapore Port, Tanjung Pelepas Port havesharply expanded their cargo throughput.Port serves as a gateway for freight andpassenger to and from foreign countries, andhas a function of connecting othertransportation mode such as road andrailway.TRANSPORT FACILITATION Well-facilitated transport is essential to create anefficient and integrated logistics andmultimodal transport system for seamlessmovement of goods, connecting air,maritime, railway, inland-waterway and roadtransport. Transport facilitation and tradefacilitation are very linked/overlapped toeach other. To achieve the goal of thetransport sector, it is necessary to cooperatewith other authorities as ATAP includesconcerted actions with customs procedure.The following section will discuss issues oftransport and trade facilitation as well as

detailed current status of three principalagreements and their protocols.Transportation is fundamental in enablingpeople to go about their lives, and iscrucial for achieving economic or socialobjectives. Without transportation servicesand infrastructure such as automobiles,railways, aircraft, and ships, the range ofactivities available to us would be severelylimited, and it is fair to say that modernsociety could not function. Meanwhile, theenvironments surrounding transportationare continuously changing, and theresulting issues are becoming moreapparent and complex.

Shortage of Revenue and Capacity inDeveloping Countries The capacity ofdeveloping countries to deal with theabove mentioned issues is restricted to lowlevels. Since governments’ budgets forimplementing transportation measures arelimited, securing new sources of revenueis of course a crucial issue forconsideration along with the utilization ofprivate-sector funds. Therefore,environmental improvements thatfacilitate the provision of transportationinfrastructure and services by the privatesector are essential, as is a shift in the roleof government from provider to regulator.In general, public transportationorganizations in developing countrieshave been experiencing chronic problemsdue to low profitability resulting from lowutilization and inefficient operation, withsome of them heavily indebted. Therefore,since revenue required for expanding andimproving services cannot be ensured orare absorbed by debt payments,transportation needs cannot be suitablymet. On the other hand, there is a largesupply of transportation and alternativemeans from the private sector, includingthe informal sector, either complementingor competing with public transportationmodes. However, there are concernsrelated to the safety and reliability of suchservices.

Transport Status

www.behlmedia.net

Transportation isfundamental in

enabling people togo about their lives,and is crucial for

achievingeconomic or social

objectives"

"


"Ra i lways , pe rhaps a long wi th pos t o f f i ce s ,a r e t he on l y two i n s t i t u t i ons i n I nd i a wi th adeep ne two rk wh ich i f t apped j ud i c i ous l ycan c rea te subs t an t i a l imp rovemen t s i n t heh in te r l and . Ra i lways was a lways cons ide redon l y as a mode o f t r anspo r t i n ou r coun t r y ,we wan t t o see Ra i lways as t he backbone o fInd i a ' s economic deve lopmen t "

R A I L F A C I L I T A T E SU R B A N I Z A T I O N

ndian Railways is the lifeline of the nation. Ittraverses the length and breadth of the countryproviding the required connectivity andintegration for balanced regionaldevelopment. The system never rests; it hasbeen up and working unceasingly for the lastseveral decades. It is an integral part of everyIndian’s being. It is one of the pillars of thenation. In an earlier era, the Indian Railwayshave been described as “imperium inimperio”, an empire within an empire. Thesize and scale is gigantic. The United States,China and Russia are the only countries thathave longer railway lengths, measured inkilometers. Indian Railways has suffered fromconsiderable under-investment during the lastseveral years. As a consequence, capacityaugmentation has suffered and so has thequality of service delivery. Resources havebeen insufficient for improving customersatisfaction and introducing technologicalimprovements. Investments in safety havealso been insufficient. This is a vicious circlewhich I desire to convert into a virtuous circleby bringing in greater investments which willgenerate higher revenues and better servicedelivery. Despite its problems, IndianRailways is not down and out; it is the onlyorganization in the Government of India thatpays for its wage bill, pensions and workingexpenses in its entirety. It also accounts for

replacements and depreciationlike any commercial concernshould and pays a dividend onthe capital it gets from theGovernment of India. Railways,perhaps along with post offices,are the only two institutions inIndia with a deep networkwhich if tapped judiciously cancreate substantialimprovements in the hinterland.Railways was alwaysconsidered only as a mode oftransport in our country, wewant to see Railways as thebackbone of India's economicdevelopment.The rail industry is benefitingfrom environmental concerns,rapid urbanization and the needfor greater and faster mobilityof people and freight, especiallyin emerging economies. Rail isalso proving a popularalternative to road transport in aclimate of volatile fuel prices.Studies on the impact ofdifferent modes of transportshow that railways perform beston a wide range of measures.These include CO2 emissions,


I

Rail Analysis

energy consumption, noise pollution, capacity inurban and intercity transport, footprint and security.Such benefits have triggered renewed interest in therail industry, providing governments and privateinvestors with an impetus to invest further ininfrastructure, rolling stock, control systems andservices in recent years.The main drivers for this 12 percent increase aremassive orders in China for the build-up of VHS(very high speed), mainline and urban networks.Many other countries, notably France, Italy andSpain, have also expanded their VHS networks,while countries such as Russia and Turkey haveinitiated the construction of theirs. It is, however,the accelerated expansion of China’s network thathas had the greatest impact. So rapid is the growthin the Asia/Pacific region, that it has not onlyovertaken North America but also Western Europeto become the largest total market for rail supply, adevelopment thought. However, since only about 70percent of the current market is accessible to non-domestic companies, Western Europe remains thelargest rail supply market in the world, followed byAsia/Pacific, where China and India show limitedaccessibility for some product segments. Overall,the Commonwealth of Independent States (CIS) ie,former Soviet Republics, exhibits the lowestaccessibility rates.1Rail facilitates urbanization and cuts in urbanpollution Between 2005 and 2030, the world’surban population is expected to grow by an averageof 1.78 percent annually, nearly twice the rate of theworld’s total population.Over the last 30 years Europe has experienced avery strong growth in mobility. Every Europeancitizen now travels an average of 35 km per day,compared with 17 km per day in 1970. Thisincreased mobility can be attributed mainly to roadtravel and is having a detrimental effect on airquality, especially in urban areas. Emissions fromroad vehicles, such as nitrogen oxides (NOx) andparticulate matter less than 10 microns in size(PM10), are harmful to both the environment and tohealth. The big advantage of electric train systems isthat they generate no local emissions and can meetmass transportation needs in a variety of urbansituations, from local tram networks, to commuter

systems and high-speed rail links. Newcombustion technologies, efficient transmissionsystems and exhaust after-treatment also ensurethat rail diesel traction will remain moreenvironmentally friendly than transport by roador inland waterways

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Rail Analysis


"The rail industry is benefitingfrom environmental concerns,rapid urbanization and the needfor greater and faster mobility ofpeople and freight, especially inemerging economies. Rail is alsoproving a popular alternative toroad transport in a climate ofvolatile fuel prices"

reight forwarding and contractlogistics continues to be a growthindustry. Though such growth isexpected to slow somewhat(from a high of 3 percent overthe past five years to about 1.5percent in the near term), thatrate will still likely outpace thatof global GDP—a good situationto be in, considering currenteconomic circumstances.Even so, freight and logisticscompanies will need to deal withnumerous issues in the yearsahead. For example, as traderoutes become more competitiveand as freight rates fall, theindustry’s traditional bargainingpower with its shippers—volume—will be challenged. Oneimportant strategy to counter thischallenge is to use balance sheetstrength to acquire niche playersin important trade routes andgeographies, especially inemerging markets.Another key to growth and

profitability will be the ability toanalyze customers’ needs andthen respond quicklywithdifferentiated and advancedlogistics solutions. Thatwill require better IT tools toimprove internal processefficiency and to generateanalyses that result in deeperunderstanding of customers’industries and business processes.

Freight Forwarders: The VitalLink in LogisticsCommunication

Building a logistics system fortoday’s sourcing needs requires aquantum leap from past shippingpractices, in which companiestoo often neglectedtransportation in their strategicplanning. A poorly constructedor outdated supply system withinadequate communication cancreate unnecessary delays andexpense caused by information .


Vital Link in LogisticCommunication

"A poorly constructed oroutdated supply system

with inadequatecommunication cancreate unnecessarydelays and expensecaused by informationsnags, missing or ill-prepared shippingdocuments, and

inappropriate cargorouting. "

F

snags, missing or ill-prepared shippingdocuments, and inappropriate cargorouting.One resource, however, can serve as themissing link in supply chaincommunication: a professional freightforwarder that represents the interests ofall supply chain participants.Here is what freight forwarders bring tothe supply chain communicationdynamic:� Logistics understanding. A freightforwarder should be familiar with thecustoms rules and regulations of everycountry through which freight will pass,in addition to understanding theassociated service parameters and costs.Equally important is the forwarder’sknowledge of Incoterms (the standardinternational shipping terms) anddemonstrated ability to managetransportation, risk, and costs, and toestablish advantageous transport anddelivery terms.� Customer service emphasis. From adoor-to-door service backed by customsclearance, storage, and distribution to astraight one-off transaction, a freightforwarder should understand and adaptto meet shippers’ needs. The objective iscost and time efficiency, with minimumdowntime and as few obstacles todelivery as possible, complemented bymaximum uptime for freight delivery.� State-of-the-art technology.Sophisticated online trackingtechnology is a must for a competitivefreight forwarder. Shippers shouldreceive protected system passwords forcomplete confidentiality, enabling themto access accurate real-time data aboutshipment location. Simply by entering apurchase order number, shippers shouldbe able to see the whole picture.� Global capabilities. The best freightforwarders are an integral physical partof the global supply chain, with officesin centers of world commerce, such as

New York City, London, and HongKong. Equally important, theyshould maintain a comprehensiveglobal network of agents chosenfor their expertise, rigorousprofessional standards, insight intomultinational standards, andenthusiasm for customer service.� Professional certification.Freight forwarders should meetISO 9000 international processquality certification standards.They should also be approved toparticipate in cargo securityprograms and the TransportationSafety Administration’s CertifiedCargo Screening Program (CCSP)for air cargo.With highly volatile freight ratesand oil prices, the freightforwarding market is undergoingstructural changes and an uncertainglobal economic situation meansthat forwarders need to be attunedand responsive to macro-trends

www.behlmedia.net19 Transport & Logistic Hub JulyAug. 2016

Freight Forwarding

"With highlyvolatile freight

rates and oil prices,the freight

forwarding marketis undergoing

structural changesand an uncertainglobal economicsituation meansthat forwarders

need to be attunedand responsive tomacro-trends"

TESTING FIRE SUPPRESSION SYSTEMS INENGINE COMPARTMENTS OF BUSES AND

COACHES

New Standard

P has over the last 5 years developed the firetesting standard SP method 4912 as well asthe P-marking certification in accordance withSPCR 183 for fire suppression systems inengine compartment of buses and coaches.One part of the pre-normative researchconducted as input to the standarddevelopment has been the promulgation ofthis standard at the UN ECE Working Groupon General Safety Provisions (GRSG) inGeneva. GRSG is the subsidiary body of theWorld Forum for Harmonization of VehicleRegulations (WP.29) that prepares regulatoryproposals on general safety to WP.29. Thisgroup of experts conducts

S

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Iresearch and analysis to develop generalsafety requirements for vehicles, inparticular buses and coaches. The WorkingParty is open to the governmental expertsfrom any member country of the UnitedNations, and to any regional economicintegration organization set up by membercountries of the United Nations, and toexperts of governmental organizations.

SP has participated at GRSG in a consultativecapacity as an Experts as part of the Swedishdelegation. Based on the development of SPmethod 4912 SP submitted a proposal for


•amendment of UN ECE Regulation 107.The amendment of UN ECE Regulation 107regarding fire testing of fire suppressionsystems in engine compartments of buses(http://www.unece.org/fileadmin/DAM/trans/doc/2015/wp29grsg/ECE-TRANS-WP29-GRSG-2014-06r1e-track.pdf) was adoptedat the 108th GRSG session (4–8 May 2015)in Geneva and also approved in November2015 at the World Forum WP.29 level.

The amendment of UN ECE Regulation 107will require the installation of firesuppression systems in enginecompartments of all single-deck, double-deck, rigid or articulated vehicle ofcategory M2 or M3 and specifically vehicleshaving a capacity exceeding 22 passengersin addition to the driver, "Class III" (vehiclesconstructed exclusively for the carriage ofseated passengers) - coaches - followingthe transitional provisions. We are nottotally sure about the formal timing butmost likely June 2018 for new types ofvehicles and June 2019 for all existingtypes.

The next step will be to work on theproposal for amendment of city buses i.e.single-deck, double-deck, rigid orarticulated vehicle of category M2 or M3and specifically vehicles having a capacityexceeding 22 passengers in addition tothe driver “Class I and Class II”.

In Europe this will be legislated but I amnot sure for the rest of the countries whohas signed off to Reg. 107.

In parallel SP continues to offer P-markingof fire suppression systems. As a furtherextinguishment system quality assurance,

SP has established the voluntarycertification and quality mark – theP-mark – according to SPCR 183(SP Certification Rules). A firesuppression system tested inaccordance with SP method 4912has shown its functionality againstrealistic bus engine fires. A P-marked system, tested inaccordance to SPCR 183, furtherdemonstrates a high degree ofrobustness as it is also tested forresistance to harsh environmentsin internationally accepted vehiclestandards, in addition to the SPmethod 4912 fire tests. Qualityassurance and control over time ismaintained through anindependent, approved auditorthat reviews factory productioncontrol. An innovative andimportant component of the P-mark process is a risk assessmentrequirement based on the fire testresults to optimize the firesuppression system design in realbus engine compartments.

The P-mark will facilitateprocurement processes for bothbuyers and sellers. By adoptingthe P-mark the industry can beassured that the systems maintainan acceptable level of quality andsafety. At the same time it will beeasy to spot and excludesubstandard systems from themarket. You can find a list of

New Standard

certificate holders here:www.sp.se/safebus/certified


The AutomotiveResearch Association ofIndia – ARAI has been incharge of developing anew Indian Standard fortesting fire suppression

systems in enginecompartments of busesand coaches. There isnow an available draft

AIS 135:https://araiindia.com/hmr/Control/AIS/282016123611PM4_Draft_AIS_135_D

F_FDSS.pdfThe work has been

based on UN ECE Reg107 and consequently SPmethod 4912 as well asthe Israeli Standard I.S

6278

LIFTING IN THEWAREHOUSE

he term intermodal refers to moving a containeror trailer by more than one mode oftransportation—generally truck plus rail, oceanplus rail, ocean plus truck, or all three modes.Some recent freight industry trends—such aslong-haul trucking capacity shortages, higher fuelcosts, and a drive to reduce environmental impact—have sparked new interest in intermodal,especially pairing truck and rail as an alternative toover-the-road (OTR) trucking for domestic moves.BEST PRACTICESFor companies that want to gain the efficiencies ofintermodal transportation, carriers and shippersoffer plenty of advice:Consider intermodal transport when choosing sitelocations. "When companies build amanufacturing plant or distribution center, they

Intermodal

Intermodal Transportation


need to consider the distance to the closestintermodal facility," "The farther it is from the plantor warehouse, the higher the cost of dray—and thatnegates any savings a shipper would net frommoving freight by intermodal."Periodically re-evaluate the advantages ofintermodal and over-the-road for specific lanes. "Anannual bid is not frequent enough," "The pace ofchange is so fast—there are technologicalinnovations and new services, and the railroads areintroducing new routes at an unprecedented rate."Companies should look for opportunities to convertto intermodal every six to nine months.Place the burden of proof on OTR. Whether toconvert from OTR to intermodal isn't always thequestion. Some companies start by assuming allfreight will travel intermodal unless a specific laneclearly works better with OTR. "Shippers move to anintermodal method because they reach the end

T

One of the top supply chain trends impacting the transportationindustry today is intermodal transportation. Over the past fewyears, capacity has been squeezed with driver shortages,increased demand, increased fuel prices, and heightenedgovernment oversight

Intermodal

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goal much faster than addingincremental improvements yearafter year,"Stay flexible. To take advantageof railroads' shipping schedules,shippers might need to adjusttheir departure and deliverytimes. For example, railroadstend to accept loads at theirramps until late in the evening.One of the top supply chaintrends impacting thetransportation industry today isintermodal transportation. Overthe past few years, capacity hasbeen squeezed with drivershortages, increased demand,increased fuel prices, andheightened governmentoversight. All these extenuatingcircumstances affect everythingfrom pricing to timing of loads,and executives are looking forthe answer in maintaining a cost-effective supply chain.Intermodal transportation hasprovided one such solution.While traditionally carriers strictlysell the advantages of their ownmodes, this approach totransportation is quicklybecoming outdated in our globalsociety. It’s becoming clearer thatshippers need to take a moreintegrated approach to keeppace with economic expansionand consumer demands.Today, logistics executives aretaking the same approach toaddressing the capacity squeezeby integrating the differentmodes of transportation: rail,truck, air, and sea. With theeconomy going through one ofits slowest periods of expansionin history, shippers are exploringdifferent ways of integrationbefore everything ramps backup. The most successful integrationundertaking has been withintermodal rail. Shippers acrossthe nation discovered in recentyears that intermodal railproactively addresses the needto meet both current and futurebusiness demands as theeconomy continues to expand.

With intermodal transportation,shippers can take advantage oflower rates, more predictablepricing, and the flexibility ofloading and unloading goods ina dropped trailer environment,which reduces handling costs.This significant cost savings cangreatly outweigh the speed bywhich shippers can move theirgoods via truck alone. Further,with fewer drivers on the roadand fewer hours by whichdrivers are allowed to work,companies need to maintaintheir level of efficiency withpick-ups and drop-offs, whichin many cases can no longer behandled by truck alone.Intermodal transportation alsoprovides shippers with moreaccess to equipment andstandardized transit schedules.This translates into reliability,capacity, and safetyadvantages. As companiesmove their freight tointermodal, they will also beable to streamline their reverselogistics.


"With IntermodalTransportation,shippers can takeadvantage of lowerrates, morepredictable pricing,and the flexibility ofloading and unloadinggoods in a droppedtrailer environment,which reduceshandling costs. Thissignificant costsavings can greatlyoutweigh the speed bywhich shippers canmove their goods viatruck alone"

BUSTRANSPORT

BUS TRANSPORT IS THE MOST DESIRABLE AND SUSTAINABLE SYSTEM FROM SOCIETAL PERSPECTIVE.A WELL PLANNED BUS SYSTEM CAN PROVIDE A HIGH LEVEL OF MOBILITY TO A LARGE SECTION OF THEPOPULATION WITH LEAST COST. HOWEVER, A POORLY PLANNED SYSTEM CAUSES INCONVENIENCE TOTHE USERS, LOSES RIDERSHIP, ENCOURAGES USE OF PRIVATE VEHICLES AND IMPOSES FINANCIALBURDEN ON THE OPERATOR.

ransportation demands in urban areascontinue to increase rapidly as a result ofboth population growth and changes intravel patterns. In the era of environmentconcerns and limited space available incities, transport planners have to providea system, which can ensure safe and cleanmobility to all city residents. Thisrequires planning a system, which isaffordable, reliable and efficient fromthe users’ as well as operator’s

perspectives. A road based bus systemoffers an opportunity for creating asystem capable of meeting multipleneeds of users and operators.Indian cities, of all sizes, face a crisis ofurban transport. Despite investments inroad infrastructure, and plans for landuse and transport development, all citiesface the ever increasing problems ofcongestion, traffic accidents, air, andnoise pollution. Large cities are facing a

T

rapid growth of personal vehicles (twowheelers and cars) and in medium andsmall cities different forms ofintermediate public transport provided bythe informal sector are struggling to meetthe mobility demands of city residents.Public transport is a critical element ofurban transport system. A great emphasisneeds to be given to the public transportsystem because it offers the most efficientutilization of limited resources – energyand land. At present, a range of publictransport options are available fordifferent city sizes. A careful analysis isrequired to select the most appropriatetechnology for a given city size. Railbased systems have often beenrecommended based on their capacity tomove large number of people (> 30,000passengers/phpd). However, they arecontroversial options of public transportbecause of the large financial burden theycan impose on city budgets. Also, theexisting rail based systems have shownlow ridership, low capacity utilization andhigh operating subsidies. Bus transport isthe most desirable and sustainable systemfrom societal perspective. A well plannedbus system can provide a high level ofmobility to a large section of thepopulation with least cost. However, apoorly planned system causesinconvenience to the users, losesridership, encourages use of privatevehicles and imposes financial burden onthe operator.A flexible, comfortable, easily availableand reliable bus service may encourageshift from private vehicles to publictransport. Since travel demand varies overtime and space, public transport systemsoften have under utilized capacity at nonpeak hours and high load factor in peakhours. The objective of an efficientsystem is to meet the diverse demands andminimize operator’s loss. This requiresthat the optimizing, routing, schedulingand synchronizing problems are givenspecial attention,


Bus Transport

while designing an efficient bussystem.The demand for public transport isdependent on both physical andsocio economic characteristics ofurban areas. Availability of roadinfrastructure, geographical spreadof the city, mixed land use patterns,population density, and incomedistribution are some of theimportant characteristics thatinfluence public transport demand.As these characteristics change withtime, the public transport demandalso changes. The different level ofpublic transport demand can bebroadly divided in four major levelsfor bus transport planning:For a bus transit service, it is alwayspreferable to expand its catchmentarea as much as possible. But asdemand varies with time it is notfeasible to provide best services atall the time. Low demand at non-peak hours and high operators’costs result in excess capacity ifservice levels are not changed. Allmajor destination points should becovered in the route. Thereforeservice should be provided in a way,which satisfies the majorrequirements without increasingoperating cost. This process usuallyprompts more modifications, whichin turn must be evaluated. Recentpublications on operationalstrategies of bus transit servicehave addressed the followingareas: 1) Route optimization 2) Transfer optimization 3) Feeder buses 4)Timetable preparationBus systems have evolved fromsingle route operations in small tomedium size cities to high capacitysystems in large urbanagglomerations. Improvement incapacity utilization and

operating costs have comefrom incremental changes inbus stop locations, scheduling,route operations, routeplanning, fleet management,special infrastructure designs,and institutional structures.This shows possible capacityimprovement because ofincremental changes in variousaspects. Bus transportation is apredominant mode of urbantransit. As cities grow the bussystem is required to cater to aspatially and temporallydiverse demand. The presentliterature review shows thatsubstantial improvement inservices and performance ofthe system is possible byemploying better methods forroute optimization andsynchronization of feederservices. However, with thegrowth in the geographicalextent of urban areas, GISbased decision support systemshave been found to be veryeffective in designing optimalbus services. Bus transportservice should providecomfortable traveling,reasonable fare and minimumtime for traveling. Providingefficient road network, optimalrouting and minimum delaycan ensure these attributes. Thesystem efficiency can beguaranteed by totalsynchronization with all otherrelated factors i.e. routeoptimization, transferoptimization, and feeder busservice co-ordination.

Port Performance Measurement

easures of port efficiency or performanceindicators use a diverse range oftechniques for assessment and analysis, butalthough many analytical tools andinstruments exist, a problem arises whenone tries to apply them to a range of portsand terminals. Ports are very dissimilarand even within a single port the current orpotential activities can be broad in scopeand nature, so that the choice of anappropriate tool of analysis is difficult.Organizational dissimilarity constitutes aserious limitation to enquiry, not onlyconcerning what to measure but also howto measure. Furthermore, the concept ofefficiency is vague and proves difficult toapply in a typical port organizationextending across production, trading andservice industries. Ports are complex andmultipart organizations in whichinstitutions and functions often intersect atvarious levels. This paper distinguishesbetween logistics, trade and supply channels. The interaction among thesethree channels makes it difficult toidentify which institutions are (or couldbe) performing what

functions in the port system. The logisticschannel consists primarily of specialists thatfacilitate the efficient progress of cargothrough a supply chain (e.g. shipping lines,freight forwarders). Both the trade channel andsupply chain are associated with ownership ofgoods moving through a system of interactingorganizations, with the difference that the tradechannel is normally perceived to be at the levelof the sector or industry (e.g. the oil trade) andthe supply chain at the level of the firm. It isimportant to make this distinction because,although there are industry-wide conventionsbased on factors such as the nature of theproduct or the structure of the industry, it isalso true that individual companies have theirown corporate culture based on a variety offactors. Industry-wide conventions are oftenassociated with regulation, enforcing standards,reducing uncertainty, information exchange,supporting mutual interests, or developing acommon identity. Traditionally, bulk maritimetransport tends to be analysed by trade (crudeoil, iron ore, fertilizers, etc.) and even smallerconsignments are merged into a

M

"A logistics andsupply chainmanagementapproach to portsmay prove of greatbenefit in underliningthe strategic role andfuture potential ofports within theframework ofinternational businessin general"


‘trade’ category traditionally called‘general cargo’. Industry- or trade-wide markets have existed forcenturies. More moderndevelopments attempt to enhancethe supply chain performance ofindividual members at the tradechannel level making use ofdevelopments in e-commerce. Forexample, since 2000, major carmanufacturers have combinedefforts to form a single globalbusiness-to-business supplierexchange working withmanufacturers, suppliers andindustry trade groups to ensuresupply chain efficiency.Nevertheless, much literature onsupply chains is oriented at the levelof the firm. A supply chain isdefined as a set of firms that passmaterials forward ,an alignment offirms that brings goods or servicesto market or a network oforganizations that, throughupstream and downstream linkages,produce value in deliveringproducts or services to the ultimateconsumer. The emphasis on thelevel of the firm means that theterm ‘supply chain management’ isfrequently used, although it isdifficult to find a universally agreeddefinition because it has emergedfrom a number of disciplines.Indeed, the terminology has not yetstabilized and alternativeexpressions such as networksourcing, supply pipelinemanagement, value chainmanagement, and value streammanagement are also used. Productsor services can move through oralong networks, channels, chains,pipelines or streams. Ports have animportant role to play in theintegration of all three types ofchannel. There are manyorganizations occupied (orpotentially occupied) with logistics

and supply chain integrationwithin and around ports,mainly in the role of logisticschannel facilitators (oceancarriers, land-based carriers,port operators, freightforwarders, port agents, etc.),but also as public institutionssuch as Customs authorities.This paper seeks to adopt anapproach that incorporateswithin a valid framework ofanalysis existing measures ofport performance andefficiency, the association ofports with logistics and supplychain managementFinally, a logistics and supplychain management approach toports may prove of greatbenefit in underlining thestrategic role and futurepotential of ports within theframework of internationalbusiness in general. It can serveparticularly as a valid analyticalframework allowing anunbiased assessment of portperformance measurement andmanagement. The enquirydescribed in this article standsas an initiative requiringfurther research andinvestigation.

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Performance Measurement


TMS capabilities to supporteverything

ransportation managementsystems are becoming lessexpensive and easier to own.Now, companies of any size canget in the game. Thanks torecent advances in technology,transportation managementsystems (TMS) promise todeliver more bang for thetransportation buck to moreshippers. Vendors keep addingfeatures and functions, andoffering easier and moreeconomical ways to implementTMS solutions.Many businesses that shipproducts use transportationmanagement systems (TMS)for visibility and control withintheir supply chain operations.The introduction of cloud-based TMS has also opened thedoor to many small and mid-sized companies to find greattools that fit their budgets.While using TMS capabilitiesto support everything fromcarrier rate management,

shipment planning and tracking,and mode selection to carrierassignment and invoicing,shippers sometimes overlook thevalue of using data from a TMSto benchmark and gain insightinto transportation performance.Transport benchmarking isessential to attain a thoroughunderstanding of how yoursupply chain performs versusyour competitors. The mostcommon benchmarked area iscarrier rates, but savvy shippersalso evaluate a variety ofprocesses and key performanceindicators (KPIs).Additional long-term benefitsto benchmarking include:- Strategically plannedcontinuous improvements:Insights derived frombenchmarking supply chainactivities and gathering marketinformation can helpstrategically manageperformance for continuous

Technology


improvement.- Enhanced service levels: Bybenchmarking differentcustomer service-relatedactivities, companies candetermine how they compare toothers and make appropriatechanges.- Identified performancegaps: Assessments conductedas part of benchmarking helpidentify potential gaps insupply chain operations, as wellas areas for improvement insupplier relationships, soshippers can focus continuousimprovements.- Competitive advantage: Byunderstanding how yourcurrent market positioncompares to best-in-classstandards, you can improvepractices to gain thecompetitive edge.- Change culture:Benchmarking is not a one-time activity, but rather anongoing learning process that

T

"When used inconjunction with TMScapabilities,transportationbenchmarking offers avaluable way for shippersto gain a competitiveedge within their logisticsoperations in today'schallenging landscape"

can help generate new ideas for youto share and implement.Benchmarking efforts can stimulateorganizational learning, and enhancebusiness performance and industrycompetitiveness.When used in conjunction with TMScapabilities, transportationbenchmarking offers a valuable wayfor shippers to gain a competitiveedge within their logistics operationsin today's challenging landscape.Ask your current or prospectivetransport partners and providerswhat they can offer in the area ofbenchmarking.

A TMS can take many forms. Itmight be a standalone product, or acomponent of a broader supplychain management or enterpriseresource planning suite. Simply put,a TMS is technology for managingthe part of the supply chain that putscommodities in motion."A TMS helps companiesefficiently, reliably, and costeffectively move freight from originto destination,FEATURES AND FUNCTIONSThe functions included in a TMSvary from one product to the next,but systems often include thefollowing:- Procurement: Conducts biddingevents and manages contracts withcarriers.- Planning and optimization:Chooses the most efficient modesand routes, and finds opportunities

Technology


to implement efficientstrategies such as loadconsolidation.- Execution: Conductsday-to-day shippingactivities, such asmatching loads withappropriate carriers,tendering and dispatchingloads, generatingshipping documents,exchanging informationwith carriers, andmonitoring freightprogress.- Freight bill auditingand settlement: Managesthe financial aspects of afreight transaction.- Reporting andanalytics: Analyzescarrier performance,internal performance, andtransportation costs.

MOBILE TMSGiven the impact ofmobile technology ingeneral, it's no surprisethat the TMS world isalso feeling pressure toput business functions inthe palm of the user'shand.That's particularly true asmore millennials enterthe workforce."Millennials don't usedesktop computers, andthey don't use laptops,""The era of the big officeof cubicles with PCs for

people who are running freightdepartments is coming to anend." With transportation appson tablets and smartphones,people can work remotely, orthey can manage and monitorshipments while walking thewarehouse floor."It minimizes the workshippers previously had to doto update those tariffs," "Webservices also allow carriers andshippers to exchange otherdata—such as trackinginformation, pickupappointments, proofs ofdelivery, and invoices—in realtime through the TMS."These features, and many newones, will continue to movesmall companies towardembracing the benefits of TMS

"A TMS can take manyforms. It might be astandalone product, or acomponent of a broadersupply chainmanagement orenterprise resourceplanning suite. Simplyput, a TMS is technologyfor managing the part ofthe supply chain that putscommodities in motion"

Rail Infrastructure 2016

18-20 July, 2016

Sydney, Australia

www.rail-infrastructure.com.au

Last Mile Fullfilment India

22-23 July, 2016

The Lalit Mumbai, India

www.lmf-india.com

Port Development & Connectivity Asia

14-15 September, 2016

Sydney, Australia Mandarin Orchard, Singapore

www.portdevelopmentasia.com

Telematics India 2016


Hotel Park Plaza, Bengaluru, India

www.telematicswire.net/conf/2016/blr/

Qatar Transport Safety Forum 2016


ST. Regis Hotel, Doha, Qatar

www.transportsafetyqatar.com

NSW Transport Infrastructure Leaders


Sydney, Australia

www.nswtransportinfrastructure.com.au

FIVE 2016

5-6 October, 2016

Baltimore, USA

www.firesinvehicles.com

TOC AMERICAS

11-13 October, 2016

Cancun ICC, Cancun, Mexico

www.tocevents-americas.com

TRANSBALTIC

30 November- 2 December, 2016

Russia

www.transbaltic-expo.ru

Logistics Asia Expo

2-4 December, 2016

Ahmedabad, Gujrat

www.logisticsasiaexpo.com

TOC MIDDLE EAST

6-7 December, 2016

Le Meridien Hotel, Dubai

www.tocevents-me.com


Transportation

Event Calendar 2016

transport & logistic hub july 2016 edition

Documents