Cargotalk October 13

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No.1 in Circulation & ReadershipoCtober 2013

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Vol XIII No.11Pages 56

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By DDP Publications

First Gainer from economic bounce back?

ExprEss Cargo Industrylosing pace due to hassles in transit

Cargo WIsE Software gets 3,600 new users

Cass IssuEIATA underlines cost benefits and efficiency

International Air Cargo

WWW.CaRGOtaLk.IN4 i CaRGOtaLk i OCtOBER 2013

CargotalkSOUTH ASIA’S LEADING CARGO MONTHLY

No.1 in Circulation & Readership

OCTOBER 2013Postal Reg. No.: DL (ND)-11/6002/2013-14-15. WPP No.: U (C)-272/2013-15,

for posting on 25th-26th of advance month at New Delhi P.S.O.

RNI No.: DELENG/2003/10642

Date of Publication: 22/9/2013

Vol XIII No.11

Pages 56

Rupees 50

cargotalk.in

By DDP Publications

First Gainer from economic bounce back?

EXPRESS CARGO INDUSTRYlosing pace due to hassles in transit

CARGO WISE Software gets 3,600 new users

CASS ISSUEIATA underlines cost benefits and efficiency

International Air Cargo

editorial

SanJeetEditor

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CARGOTALK is a publication of DDP Publications Private Limited. All information in CARGOTALK is derived from sources, which we consider reliable and a sincere ef-fort is made to report accurate information. It is passed on to our readers without any responsibility on our part. The publisher regrets that he cannot accept liability for er-rors and omissions contained in this publication, however caused. Similarly, opinions/views expressed by third parties in abstract and/or in interviews are not necessarily shared by CARGOTALK. However, we wish to advice our readers that one or more recognized authorities may hold different views than those reported. Material used in this publication is intended for information purpose only. Readers are advised to seek specific advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the readers’ particular cir-cumstances. Contents of this publication are copyright. No part of CARGOTALK or any part of the contents thereof may be reproduced, stored in retrieval system or transmitted in any form without the permission of the publication in writing. The same rule applies when there is a copyright or the article is taken from another publication. An exemption is hereby granted for the extracts used for the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publications reproducing material either in part or in whole, without permission could face legal action. The publisher assumes no responsibility for returning any material solicited or unsolicited nor is he responsible for material lost or damaged. This publication is not meant to be an endorsement of any specific product or services offered. The publisher reserves the right to refuse, withdraw, amend or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian and International Advertisements Code. The publisher will not be liable for any damage or loss caused by delayed publication, error or failure of an advertisement to appear. CARGOTALK is printed & published by SanJeet on behalf of DDP Publications Private Limited. and is printed at Cirrus Graphics Pvt. Ltd., B-62/14, Phase-2, Naraina Industrial Area, New Delhi – 110028 and is published from 72 Todarmal Road, New Delhi – 110001.

the air cargo industry across the globe is going through testing times. And that is visible from the trends that

the price-sensitive market is showing. There are lukewarm responses to the air cargo industry in particular, though there are signs of a reviving world economy, especially in the major markets in USA and Europe. Multiple reasons, such as escalating fuel costs, increasing security hassles, over-capacity and declining yields are continuously bleeding air-cargo operators and service-providers. The scenario in India is more critical now, owing to the unprecedented slide and volatility of the Indian currency. As a result, while the export market has shown double-digit growth during the last couple of months, the same was not translated into an increase in air cargo traffic from the country. A prolonged uncertainty is looming over this segment for quite some time now. Interestingly, the immediate gainer from the surge of Indian export is sea cargo. General cargo, which is the base of cargo traffic for majority of the carriers, is now making a beeline to shipping lines. This is happening primarily because of two factors: less cost and no urgency in view of the sluggish demand from international buyers.

Significantly, express cargo (which is essentially air cargo) is growing fast in and out of the country. Many airlines (apart from express cargo carriers) are reportedly being fed by this vertical. The industry is one of the fastest-growing segments of the logistics industry. It is poised for high

growth in the future, though the same is constrained by inadequate transport infrastructure and procedural delays at gateway checkpoints (airports, state border checkpoints) in addition to threats from regulatory restrictions and the economic slowdown. A study says that, in these times, major customer industries include auto components, banking and financial services, garments, pharma, telecom products and IT components. Other segments like organised retail and e-commerce are also emerging as large customer segments. These products generate high value in revenue terms for the carriers.

Unfortunately, India does not possess the required physical infrastructure and a clear policy framework to support the fast movement of cargo from airport and check posts on the surface network. In spite of modernisation and privatisation of airports here, the transit time is still a lot as compared to other international airports. It is time to fast-track government policies for the greater interest of air cargo industry and hence the country’s economy. Will MoCA and the Air Cargo Logistics Promotion Board take some more pro-active initiatives and fast actions?

ThE fUTUre IS expreSS

EditorSanJeet

Sr. Assistant EditorRatan KumaR Paul

Sr. Sub EditorHRitvicK Sen

Asst. Vice PresidentGunJan SabiKHi

Deputy General ManagerHaRSHal aSHaR

Regional Head: North & WestSHiv KumaR

Assistant Manager: WestRoland diaS

Sr. Marketing Co-ordinatorGaGanPReet KauR

DesignRucHi SinHa

Photo JournalistSimRan KauR

Advertisement DesignerviKaS mandotia, nitin KumaR

aaRuSHi aGRawalProduction Manageranil KHaRbanda

Circulation ManageraSHoK Rana

Cargotalk


SECTORS natIonal nEWs8 I AAI installs new radar system at Cochin and Thiruvananthapuram Airport

IAG Cargo adds capacity to seven from six flights a week for London-Hyderabad sector

Container movement from North India to Pipavav Port to get a boost

10 I GATI-KWE conferred with ‘Best 3PL Logistics Company 2013 Award’

OM Logistics honoured at Tata Motors Supplier Conference in Macau

CrWC organises seminar on vendor management

12 I MOCA updates on forthcoming airports in India at ASSOChAM conference

IntErnatIonal nEWs14 I TIACA Expresses Concerns over eU Cargo Security Deadline

logIstICs sErvICEs18 I 30th Year of Skyways Group: family-owned Indian company thrives on values

20 I UTi Worldwide India conferred Best Hr Strategy Award

40 I BVC Group tie-up Brinks India for door-to-door services

aIrlInE nEWs21 I South African Airways witnessing gradual progress in India

Cargo pErformanCE34 I Airlines wise exim cargo performance from Delhi International Airport for August 2013

35 I Airlines wise exim cargo performance from Mumbai International Airport for August 2013

36 I Airport wise domestic cargo performance from Indian airports for June 2013

38 I Airport wise international cargo performance from Indian airports for June 2013

famIly album42 I Saudi Arabian Airlines Cargo hosts Award Winning Evening to honour top agents

43 I Air Cargo Club of Madras organises ‘Car Treasure Hunt’

44 I ACCD’s new Managing Committee hosts lunch to think beyond business

45 I hS Arora elected as President of ACCB at its AGM

skIll dEvElopmEnt46 I Million Minds meet management colleges to promote ‘LTH-2014’

grEEn InItIatIvEs48 I Gati lends support to Uttarakhand victims to

strengthen CSr

shIppIng & ports50 I Dighi port: On the way to be a multimodal logistics hub

EmErgIng tEChnology52 I CargoWise software gets 3,600 new users

ExportErs’ pErspECtIvE54 I On The Growth Trail: Indian Exports

witness 13% rise in August

COLUMNS

CurrEnt IssuEs16 I CASS will reduce cost, enhance efficiency: IATA

lEad story28 I Express Cargo Industry: Decreasing pace due to hassles in transit

ContentsOctober 2013

n CovEr story22 I International air Cargo: Is it reviving?The air cargo movement, that is said to be the first gainer of the economic bounce back, is still in doldrums. The latest survey published by the International Air Transport Association (IATA) in August too reveals the marginal improvement in the air cargo traffic though there is a sign of economic revival in some major and emerging markets. In India the scenario is more critical due to unprecedented fall and fluctuation of its currency in terms of dollar, an impending General Elections and huge rise of production and transaction costs. An analysis of the current and forthcoming scenario by some industry veterans…


National NewsNews in Brief

n aaI installs new radar system at Cochin and thiruvananthapuram airport

a new state-of-the-art radar system has been installed by Airports Authority of India has been inaugurated at Cochin

International Airport. KC Venugopal, Minister of State for Civil Aviation has dedicated the system to the nation on September 13, 2013. Implementation of radar at the airport will provide significant benefits to the airlines and travellers. The use of radar will aid the air traffic controllers to give direct and shorter routes for aircraft thereby reducing the delays for flights landing and taking off from the airport as well as minimising the fuel consumption and environmental impact.

Later, the new rL-2000 ASr (Airport Surveillance radar) co-located with MSSr-1 rSr (route Surveillance radar) is supplied and installed at Thiruvananthapuram International Airport. Airports Authority of India has undertaken the project of replacing the eighteen-year old ASr and MSSr with the new state-of-art technology radar.

n yes bank and blue dart tie up to increase e-Commerce market share

t he Home Delivery Model of e-tailing with “Cash on Delivery”

as the USp has seen tremendous growth in last few years; however, it

carries the inherent risk of fraud, counterfeit, mutilation and theft which increase the operational cost of the company. Significantly, recently Yes Bank has further simplified its e-Commerce, Cash on Delivery platform through its Mobile point of Sales (MpOS) mechanism. According to Blue Dart sources, the MpOS is a first of its kind payment mechanism that uses mobile device based GprS connectivity to facilitate debit/credit card payments and it has proven extremely beneficial for Blue Dart. Yogesh Dhingra, COO & finance Director, Blue Dart express informed that this solution from Yes Bank was an ideal fit in Blue Dart’s delivery system and another opportunity to add value to customer services.

n Iag Cargo adds capacity to seven from six flights a week for london-hyderabad sector, effective october 27

IAG Cargo recently announced increased flights between

London Heathrow and rajiv Gandhi International Airport in Hyderabad, offering the city’s booming pharmaceutical industry additional export capacity to global markets. The number of flights will rise from six to seven a week, with the new daily service starting on October 27. The route will also see

capacity increased by 50 per cent with the introduction of the larger B777-200, a model which boasts increased cargo capacity of six pallets, up from

the current four. The pharma industry in India is expected to reach $35.9bn by 2016, with Hyderabad a key manufacturing

base fuelling this growth.Commenting on the additional flight, John

Cheetham, regional Commercial Manager for Asia Pacific and India, IAG Cargo said, “This announcement is excellent news for businesses in

Hyderabad, offering customers more cargo space and schedule flexibility than ever before. Businesses in

Hyderabad are always looking for ways to connect their production facilities with markets across the globe.”

n Container movement from north India to pipavav port to get a boost

recently, ApM Terminals pipavav and Concor officials met at Pipavav Port to strengthen the container train operations

from North India and Gujarat. The visit of the Concor officials was organised to showcase the recently-launched ApM Terminals Pipavav double-stack high-cube capabilities which, coincide with the commencement of Concor’s’s double stack hub at Kathuwas (rajasthan). The hub is a strategic facility for Concor, which is expected to spur volumes in North and North-western India for Concor and in turn for ApM Terminals pipavav. Gujarat pipavav port is one of India’s fastest growing gateway ports located in Amreli district of the state belonging to the AP Moller-Maersk Group.


n gatI-kWE conferred with ‘best 3pl logistics Company 2013 award’

gATI-KWe was awarded as the Best 3pL Logistics Company 2013 in the large enterprise category at ‘e & Ne India Supply Chain & Logistics Summit and

excellence Award 2013’ held recently in Kolkata. The Award function was organised by Bengal Chamber of Commerce and Industry. According to the Chamber, the Award is a recognition of the companies who have made significant contributions in the field of logistics by offering best-in-class services to their clients. Vikash Khatri, Head - product Development & Marketing, GATI-KWe, received the award on behalf of the company. The Gati-KWe sources said that currently, the company has a reach of 99.3 per cent covering 653 districts out of 657 districts in India. The company also has a large fleet of 4,000 vehicles and tie-ups with airlines for 28 airline sectors. “following the joint venture, GATI-KWe offers an unmatched service offering that brings in local experience with global expertise,” added the sources.

n om logistics honoured at tata motors supplier Conference in macau

om Logistics has recently been conferred with ‘Special Citation of Distinction’ to honour and recognise its extra ordinary contributions that bring value to the

partnership between Om Logistics and Tata Motors. Ajay Singhal, CMD, Om Logistics, was present at the Annual Tata Motors Supplier Conference organised at Macau. The event was graced by the presence of Cyrus Mistry, Group Chairman, Tata Sons and Karl Slym, MD, Tata Motors, along with the top management of Tata Motors. According to the Tata Motors officials, the event was to celebrate the essence of the company’s long relationship. The annual event not only aimed at creating a formidable team to beat the ever-growing competition, but more importantly to resolve and break their own limitation.

n CrWC organises seminar on vendor management

recently, CrWC organised a ‘Vender Development Meet’ to develop new vendors for its warehouse, as well as to interact with existing vendors for better

performance of its warehouse. The interactive session was chaired by Vinod Asthana, Managing Director, CrWC. He emphasised on developing ‘end-User Solution’ provider for customers. A significant number of representatives of the stakeholders/services providers/vendors attended of the interactive session. CrWC is presently operating railside Warehousing Complexes across India. The company is also expanding and diversifying into other related logistics segments. CrWC also organised a seminar on communal harmony. The seminar dwelt upon the importance of healthy relationship among people to strengthen harmony and the nation. All officers and staff of CrWC attended the seminar.

n Cargo fraternity extends support to uttarakhand victimsrecently the Air Cargo fraternity of Delhi represented by KS Kunwar, eD, ACfI;

Yashpal Sharma, Director, Skyways Air Services and Sundreysh Sarup of SGE Logistics participated in a mission to the devastated areas viz Tafana, Batoli and Chameli Villages in Uttrakhand. The mission was organised by Seemant Welfare Association Delhi(SWAD) which was established by the people from the border district of Chamoli working and residing at various parts of Delhi. They reached up to these disaster affected villagers at the top of the Uttarakhand hills. They shared the feelings and distress of these villagers and expressed sympathy towards their hardships and distributed relief material(food & blankets) and cash to the affected villagers for their emergency needs. The team also interacted with the gathering of the villagers on the school ground and promised to extend all possible help to the Chameli villagers.

National NewsNews in Brief

Ajay Singhal CMD, Om Logistics


National NewsEvents & CSR

t he government has decided to set up 50 new low-cost airports this year and 50

next year, with an aim to give boost to civil aviation sector and increase air connectivity to Tier-II and Tier-III cities and also able to deliver on timeframe given by prime Minster. Speaking at 6th International ASSOChAM Conference on Civil Aviation & Tourism, which was recently held in New Delhi, KN Srivastava, Secretary, Ministry of Civil Aviation said that the state-owned airport operator, would set up the low-cost airports in 50 cities in Andhra pradesh, Jharkhand, Bihar, punjab, Uttar pradesh,

Arunachal pradesh, Assam, Madhya pradesh, rajasthan and Maharashtra. Later, on September 10, the ministry called a meeting of ministers and secretaries of states to finalise policy of regional connectivity.

The conference was well-attended by the industry practitioners related to travel and tourism, cargo and logistics services. Inaugurated by Chandresh Kumari Katoch, Union Minister for Culture, the Conference had three business sessions on regulatory Challenges, regional and

remote Connectivity and Air cargo Industry Scenario. The session on Air Cargo was addressed by K Narayan Rao, Chairman, Assocham Civil Aviation Committee; Kapil Chaudhary, Secretary, AerA; Pradeep Panicker, CCO, DIAL and Deepak Dadlani, Advisor, ACAAI.

At this conference, ASSOChAM felicitated several companies for their outstanding contribution towards the aviation, tourism and air cargo logistics industry. Safexpress won the award for “Best Air Cargo Logistics Company”.

n siddhi vinayak logistics celebrates drivers’ day

s iddhi Vinayak Logistics recently announced the launch of ‘Drivers’ Day’

campaign, a one of its kind CSr initiative in appreciation of truck drivers. Actress Karisma Kapoor and industry veterans graced the occasion in support of the noble cause.

As part of its CSr initiative, the company celebrated as ‘Driver’s Day’ on September 17 to recognise the hard work and contribution of thousands of drivers towards the growth of the logistics sector in India and their role in nation-building. Commenting on the occasion, RC Baid, Chairman & Chief Mentor, Siddhi Vinayak Logistics Ltd. said, “The Logistics sector is the backbone of the Indian economy,

and drivers play a pivotal role in shaping the future of this industry. Our company is very concerned about the situation of Indian drivers who face a serious challenge as the infrastructure, security and support provided for drivers in India is close to non-

existent. There is pressing need to orient these drivers, accord them the security, dignity and respect they truly deserve for their relentless day-to-day struggle and contribution towards economic development of the country.”

n moCa updates on forthcoming airports in India at assoCham conference


under the new eU rules, all carriers wishing to transport cargo or mail into the eU/efTA from a non-eU/EFTA airport must ensure that

an eU aviation security validation of their cargo and mail operations has been carried out, at each such airport, by an independent expert. Successful independent validation of a carrier’s non-eU airport operations will allow the carrier to be designated as an ‘Air Cargo or Mail Carrier operating into the Union from a Third Country Airport’ (ACC3). Airlines that have not obtained the necessary validation before July 1, 2014 will therefore not be allowed to continue transporting cargo or mail into the eU.

“While the eU views these ACC3 regulations as an important step towards ensuring a more secure and efficient supply chain over the long term, there are significant challenges to implementing them so quickly. Although we welcome the

european Commission’s recent outreach to industry stakeholders, there is still little consistency among eU/efTA Member States regarding the implementation process, and significantly more outreach is needed between the eU and non-eU civil aviation authorities,” stated Oliver Evans, Chairman, TIACA.

TIACA supports the process of developing standards on a global, rather than regional or unilateral basis. “We also fully support recognising the audit methods of other countries’ civil aviation authorities, similar to the mutual recognition between the eU, Switzerland, the USA, and Canada as a logical means to accomplish global security effectively and efficiently,” said Evans. According to the association, it is critical to find ways forward that enhance security but which do not disrupt vital commercial air cargo flows.

TIACA appeals to the European Commission to maintain vigilance over the regulation’s implementation and continue engagement with the industry, in order to avoid the air cargo supply chain being disrupted. “It is essential that airlines and cargo handling organisations continue to take steps to obtain validation before July 1, 2014, in order to continue transporting cargo into the eU, but they should advise the eU immediately of any significant impediments to undertaking the validation process,” observed evans. He also pointed out that as airlines of different nationalities mostly operate out of multiple user facilities in foreign countries, validation and accreditation should be a matter of international recognition to avoid the huge cost and disruption of multiple audits.

TIACA has expressed its commitment to participate in continued dialogue between the European Commission and industry stakeholders on the development of risk-based air cargo supply chain security.

International NewsTrade Associations

tIaCa Expresses Concerns

Over eU Cargo Security Deadline

It is essential that airlines and cargo

handling organisations should obtain

validation before July 1, 2014, in order to

continue transporting cargo into the eU, but they should advise the eU immediately of any

impediments”Oliver Evanschairman, tiaca

The International Air Cargo Association (TIACA) expressed concern that the new EU Regulations on cargo security, which will be effective on July 1, 2014 fall outside industry goals of a common, unified approach to global security standards. Although TIACA welcomes the European Commission’s recent meetings with industry stakeholders in preparation for the launch of the new regulations, it says, much work remains to be done.


CT: According to the fact sheet, the CASS Programme helps airlines

and cargo agents to reduce costs, and at the same time improve efficiency. However, the Air Cargo Agents Association of India (ACAAI) has maintained that CASS will not be beneficial for the air cargo agents in India (please see Cargotalk September 2013 issue). According to ACAAI, implementation of CASS is a unilateral decision of IATA. Also, they say that the terms and conditions of IATA are ‘inequitable and unfair’ to the forwarders. What is your opinion?

Khosla: We are aware that ACAAI has

a different view on CASS. The fact is that CASS has been serving airlines and agents since 1979, and is now operational in over 80 countries around the world. CASS processes over 18 million air waybills each year on behalf of over 300 carriers and general sales agents, sending billings to over 8,000 agents and freight forwarders around the world.

CASS has been introduced under the auspices of resolution 851, which has existed for several decades. every change to the resolution is discussed within the IATA / fIATA consultative Council, of which ACAAI is a long-standing member.

CT: ACAAI has argued that there is no requirement of CASS in India to

improve cash flows in collecting funds, since in India the success rate of agent payments to airlines has been on-time and in full for last 40 years without CASS.

Khosla: CASS isn’t just about payments. CASS is an industry-based tool

designed to make both the invoicing and settlement process more efficient for all

parties. Through a single platform, agents can receive common layout invoices from all participating carriers, have a standard process and tool to query any billings, and process payments efficiently as a single payment is made that will cover all carriers.

CT: ACAAI mentioned that most of Indian air cargo agents have already

automated operations. ACAAI has also introduced technology platform called UpLIfT (Universal platform for Logistics and Integrated freight Transport), an eDI platform or CCS for the air cargo

stakeholders. Hence, they say CASS is not required from adoption of technology’s point of view as well.

Khosla: ACAAI has done a lot of good work to

increase the use of technology within the Indian air cargo market. UpLIfT and CASS are complementary services with little overlap. UpLIfT provides a tool to increase automation with the agents’ operational activities. On the other hand, CASS enhances

the technology interface between carriers and their agents in the transaction billing process.

CT: How are you addressing the concern of ACAAI on adequate

data protection arrangements at the IATA system?

Khosla: CASS has a long standing history of operational success

and processes millions of transactions each year. Data integrity is of paramount importance and the highest level of security is built into CASSlink, which is the internet-based data processing and customer management system for CASS, to ensure that data is fully protected.

Industry AssociationsCurrent Issues

n RATAn KR PAUL

Amitabh KhoslaCountry Director - India

IATA

IATAThe issue of IATA’s CASS (Cargo Account Settlement System) implementation in India has created commotion among the agents’ community. In their latest statements in Cargo Talk (September 2013 issue), ACAAI raised some points pertaining to CASS. As an industry platform, we present explanations from Amitabh Khosla, Country Director - India, IATA. Cargotalk invites more viewpoints on this important issue.

Cass will reduce cost, enhance efficiency:


headquartered in New Delhi, Skyways Group is one of the leading freight forwarders in India and has its presence in Ahmedabad,

Bangalore, Bhadoi, Chennai, Hyderabad, Jalandhar, Jaipur, Kolkata, Mumbai and pune. recently, it has expanded its operations internationally and has opened an office in frankfurt in 2012. It has now strength of over 200 employees.

“I feel the success of a company depends largely on its values, ethics, commitment, customers and team members. from the inception, we always ensured that these five attributes were given the highest importance. Our dedicated team and customers have always stayed with the company, due to our values and ethics. This continued connection has ensured that the company has grown consistently over the past three decades,” said Sharma. Skyways believes in short and long-term goals. According to Sharma, the periodical review

of the plans ensures the company never loses sight of its goals. “We involve our Senior Managers in the effective creation of the plans. each and every team member including the promoters has a role to play, and they ensure they carry out their role to perfection, while respecting the roles performed by other team members. We have always believed in vertical growth and that helps the company through rough waters, if any,” he added.

past and presentAccording to Sharma, the world of logistics has changed drastically over the years. Since the formation of the company in 1983, the needs and demands of customers and the industry have changed drastically. Customers had little options and competition was very little in those years. Though, execution of shipments took much time and the transit took far longer than today. The communication is one area which has seen a world of change.

Logistics Services Success & Achievements

30th Year of Skyways Group

Skyways Group completed its 30th year of operations on August 8, 2013. In an exclusive interview with Cargotalk SL Sharma, CMD and Yashpal Sharma, Director reveal the success mantra of a family-owned Indian freight forwarding company. Starting with a small office and a team of five members at nehru Place, new Delhi, the Group is now one of the leading freight forwarders in India with presence in 11 cities in the country.

Family-owned Indian company thrives on values

p SL Sharma (3rd from left) along with Team Skyways

p Yashpal Sharma (2nd from left) adressing the people


Logistics Services Success & Achievements

It used to take hours to put a message across to someone and now the same can be done in a matter of seconds. Over the years, the role of a forwarder has expanded into various related activities. The customers expect a one-stop shop and want all facilities to be provided by the same service provider. From being a mere broker or a forwarder, now the service provider is known as a Logistics Service provider (LSp) and should offer the full spectrum of services.

message to young entrepreneurs“The world is becoming highly competitive and commercial. At times, the personal touch is seen to be missing and so are the values. everyone only talks about numbers. If your customer wins more business, you will get an automatic growth without looking for new customers. If you are sincere and committed to your work, results are sure to happen. Professionalism

should bring more efficiency and discipline and not just a numercial growth” said Sharma.

the generation next“All family-owned businesses start with the passion of one entrepreneur (SL Sharma). The growth of this company over the years depends on the principles and values of this person, and subsequently they are passed on to various team

members. he ensured the team and further encouraged other family members follow these effectively over the years. Another aspect of growth for family-owned businesses is the acceptance to ‘change’. The world changes very quickly now, and one needs to adapt to these changes,” shared Yashpal. In his opinion, the companies who do this will surely grow and that is what Skyways has done effectively— ‘evolve and change constantly’.

“All Indian companies will need to either create their own niche or scale up to compete with the global players,” he said.

Yashpal also mainly believes in organic growth. “In the initial years, it is always advisable that companies grow organically. This makes them get a better grip of the business, and get the ‘connection’ with their customers and suppliers. They are also able to create a brand through this,” he argued. According to him, after some years and reaching a certain size, a bigger growth requires each company to look at more options. “One of the high growth-rate options is the inorganic route. We, as Skyways, have spent 30 years in business growing on our own. We are now looking at opportunities to acquire certain strategic businesses over the next 5 years,” he underlined.

Currently, Skywas offers an array of services to its customers that include Air Freight, Ocean Freight, Custom Brokerage, fairs & exhibitions, Door-to-Door and 3pL / Contract Logistics.

uTi Worldwide India has recently been recognised at the 4th Asia’s Best Employer Brand Awards

2013 held in Singapore, amongst over 600+ companies who participated in these awards across various categories this year. The award for ‘Best HR Strategy in Line with Business’ was given to UTi Worldwide, India, for their commendable HR initiatives.

The ‘4th Asia’s Best Employer Brand Awards’ is a well-known forum in the HR conclave. These awards are organised every year jointly by Employer Branding Institute, World HRD Congress & Stars of the Industry Group and is endorsed by Asian Confederation of Businesses. The Employer Branding Institute is a virtual organisation where senior HR leaders from over 100 partner countries interact in the cyberspace to share the best practices in Employer Branding and reward companies for their outstanding efforts.

The award for ‘Best HR Strategy in Line with Business’ recognises the contribution of an organisation across

Asia where its HR, as a function, has contributed immensely by aligning the HR strategy with Business.

Commenting on the award, Rohit Hasteer, Director, People Management & Human Resources - Indian Sub-Continent, UTi Worldwide India, said, “We at UTi have centred our HR strategy on the three pillars of transparency, collaboration and accountability with the

underlying mantra being to make the HR and the senior leadership team more approachable. The initiatives taken by us may be basic hygiene related when it comes to service industry. However, such initiatives are unheard of in the logistics industry.”

UTi Worldwide India Conferred Best HR Strategy Award

Rohit HasteerDirector, People Management & Human Resources - Indian

Sub-Continent UTi Worldwide India

SL SharmaCMD

Skyways Group

WWW.CaRGOtaLk.IN OCtOBER 2013 i CaRGOtaLk i 21

Airline NewsRegional Focus

sAA has the largest network in rSA and Africa operating schedule freighter services to many airports, besides regular passenger

flights and 11 weekly flights between Johannesburg and Sao paulo with A343/A332 aircraft and three weekly flights between Johannesburg and Buenos Aires with A343 aircraft. SAA also has a fleet of four dedicated cargo aircraft (two Boeing 737-300fs and two Boeing 737-200fs).

The airline started its operation in India as an online carrier from 1995 and now operates daily flights from Mumbai to Johannesburg with A332 aircraft having weekly capacity of about 100 tonnes.

SAA announced an addition to its existing Johannesburg-Mumbai frequency

(four flights a week) from June 16, 2012. Due to a stronger demand on this route, one more frequency was added from August 21, 2012. The frequency was further increased from six a week to daily from October 4, 2012.

The gradual increase of frequency on Johannesburg- Mumbai route was prompted by the consistently huge demand. “The increase in frequencies echoes SAA’s commitment to the Indian market. This is also SAA’s response to market demand as over the past three years, where there has been a consistent growth in the market between Southern Africa and India,” said the airline sources.

SAA is the only direct carrier between Mumbai and Johannesburg. The route is being serviced with an Airbus A330-200 with a cargo capacity of 15-16 tonnes per flight.

service offeringSAA has a commendable storage and logistic facilities, including Unit Load Devices (ULDs). for those who plan to use the airline’s services on a regular basis, it offers frequent freighter programme (applied to South Africa based market only).

Its hub at Johannesburg International Airport SAA Cargo offers a 23,830 m² ground and first floor semi-automated warehousing with dedicated Build Up Unit

acceptance and delivery areas. exports build up and imports check-in bays are fully fitted with roller-beds to ensure proper handling of ULDs.

SAA’s cold rooms cover an area of 156 m2 and are divided into five sections with a storage capacity for 38 pallets or 114 tonnes.

SAA has a very robust IT system for cargo operation. To ensure safe and efficient movement of cargo, SAA cargo employs some of the most technologically-advanced systems and facilities. It not only provides the exact status of cargo to the airline, but also to the shippers.

SAA Cargo also offers freight forwarders an electronic invoicing solution. By registering on the site, they can access the faster and more accurate electronic waybill (e-waybill) at their own convenience, and locate reverse collections with greater ease.

SAA Cargo implemented an electronic air-waybill system for the domestic market, offering customers a fast lane for cargo check-in. In addition, SAA Cargo has introduced a new integrated web-based system called i-Cargo, which keeps the businesses up to date with technological developments within the cargo environment. The system replaces the legacy system called Safron and Zebra.

faCt-shEEtSAA’s cold rooms cover an area of 156 m2 and are divided into five sections with a storage capacity for 38 pallets or 114 tonnes. SAA is the only direct carrier between Mumbai and Johannesburg. The route is being serviced with an Airbus A330-200 with a cargo capacity of 15-16 tonnes per flight.

South African AirwaysWitnessing gradual progress in IndiaSouth African Airways (SAA) is the national flag carrier and largest airline of South Africa. It has a strong network of important destinations within the Republic of South Africa, regional African destinations and is a gateway hub to South America over Sao Paulo and Buenos Aires.

Cover StoryInternational Air Cargo

The air cargo movement, that is said to be the first gainer of the economic bounce back, is still in doldrums. The latest survey published by the International Air

Transport Association (IATA) in August too reveals the marginal improvement in the air cargo traffic though there is a sign of economic revival in some major and emerging markets. In India the scenario is more critical due to unprecedented fall

and fluctuation of its currency in terms of dollar, an impending General Elections and huge rise of production and transaction costs. An analysis of the current and

forthcoming scenario by some industry veterans…

n RATAn KR PAUL

InTernATIonAl AIr CArGo


revivalrevival


the IATA study says that airline cargo businesses are starting to see an improvement in forward looking demand indicators, but continued increases in capacity have placed downward pressure

on yields and revenues over recent months. The demand environment and drivers are showing some positive signs, despite sluggish world trade growth and high jet fuel prices. There are indications that finished goods inventories are falling and business confidence has started to increase in Q3 after several months of no change. Consumer confidence in Europe is at the highest levels since 2011, following the first quarter of eurozone growth in Q2 after 18 months of contraction, and US consumer optimism continues to increase. Some of this improvement is being offset by slowdown in the Chinese economy where confidence has slipped, suppressing demand for air-freighted commodities like semi-conductors. But most notably, the better demand conditions are being countered by capacity increases which have caused yields to decline. The trend could continue if future demand fails to meet capacity expansion in coming months. Nonetheless, cargo heads surveyed in July 2013 are broadly optimistic, saying they expect yields to remain stable and volumes to increase over the next 12 months.

or a Case of Uncertainty?or a Case of Uncertainty?

Iata Insightsn The global economic outlook for 2013

remains weak, despite recent positive improvements in the Eurozone

n Traffic Growth has shown some early signs of improvement, in line with positive developments in business confidence, but growth remains weak and the upturn has been modest so far

n Demand environment has started to show signs of improvement. Business confidence has picked up although world trade growth remains slow, several emerging market regions continue to see solid trade expansion

n Demand Drivers look a bit better. Consumer confidence in Europe is now the highest it has been since 2011 and US consumer optimism is also on the rise

n Weakness in emerging Asia is reflected in the decline in demand for air-freighted commodities like semi-conductors. But in Japan, economic stimulus has helped support capital investment

n Freight load factors remain weak as capacity continues to rise

n Decline in air freight rates has intensified over recent months

n Although there has been some improvement in air freight demand over recent months, capacity growth has kept load factors low

n Owing to surge in jet fuel, cargo profitability continues to face downward pressure from high input costs

n however, the outlook for air freight is broadly optimistic according to heads of cargo surveyed in July 2013. According to them, traffic volumes to increase over the next 12 months but yields to remain unchanged

Indian market scenarioAccording to Carsten Hernig, regional Director, South Asia and Middle east, Lufthansa Cargo, there was a decline in air cargo growth rates at Indian airports in the past two years. This development has two reasons—a deterioration in the global economic environment and international and domestic investors have lost a degree of trust into the economic policies of the government and hence are holding back their investments. This is in particular hurting the growth of air freight since the industrial production is growing with lesser

speed than in the years before. “The country will also need a solid development plan for industrial production to achieve sustainable economic growth and wealth,” he said.

he does not see an immediate turnaround of the Indian market. “The current rupee development reflects to some extent the expectations of the future of trading. In fact, the rupee development is not the problem, but a symptom of the problem. however, while India is facing some head winds, there might be some positive factors which will stimulate economic demand in US and europe, which will have impact on the Indian exports,” he argued.

Commenting on the demand side in future, he maintained that the pharma sector is expected to continue its growth in the next twelve months as well. “It remains to be seen, however, to what extent competitive pressure and further government regulations will affect the development of the pharmaceutical industry in India,” he was quick to make a caution.

Nevertheless, “Lufthansa Cargo remains committed to the Indian market. Our capacity offer will continue to meet the requirements of the market and so is our commitment to highest quality standards,” said hernig. Lufthansa Cargo is investing in a fleet of new Boeing 777f, the world’s most efficient and environmentally friendly freighter, in a new logistics hub at its home base Frankfurt, which will further improve capacities and transit times. “In addition, we will continue our drive to push for e-cargo,

in particular for e-booking and e-AWB implementation in India in order to modernize and ease the business transactions of our industry. The implementation of CASS in the Indian market will be another key focus,” shared hernig.

Keki Patel, Cargo Manager, India and Nepal, Emirates too appeared to be cautious in making any forward looking statement. “The air cargo market from India is still gloomy, despite some sign of recovery in the US and eU market. Ideally there should have been a surge in air cargo export because of the decline of the value of ` against US$. However, we are witnessing inconsistency of air cargo


Ashish KapurRegional Cargo Manager-S.Asia, Middle East and Africa,

Cathay Pacific Airways

Keki PatelCargo Manager, India and

nepal, Emirates

Cyrus KatgaraPartner, Jeena & Co

Anurag BirlaMD, Air Shagoon


Carsten HernigRegional Director, South Asia and

Middle East, Lufthansa Cargo

JP SinghArea Cargo Sales & Operation Manager-India, Thai Airways


trafficfrom Indian airport, and which is a declining mode in general,” he underlined. Except pharmaceuticals, chemicals and perishables, Emirates has witnessed decline of volume for other traditional goods like auto, telecom and garments. According to him, because of the price factor and less urgency from customers, air cargo is being shifted to sea transport.

Taking cue from Patel, JP Singh, Area Cargo Sales & Operation manager-India, Thai Airways, said that because of the unstable ` and government policies air cargo, export hadn’t seen any improvement. In the near future too, there is very bleak possibility of any revival. “At this time, we are struggling for maintaining the load factor for our allotted capacity for cargo. fortunately we are able to maintain it at an satisfactory level, thanks to the increase in of courier volume. We are also focussing on yield rather than volume, and of course new clients to maintain our revenue flow,” he added.

Ashish Kapur, regional Cargo Manager-S.Asia, Middle East and Africa, Cathay pacific Airways, maintained that though the overall market scenario is not very promising, the airline witnessed

growth primarily because of additional capacity it has for this market. Cathay pacific Airways is enjoying 90 per cent load factor in its freighters and about 80 per cent in passenger aircraft. “We are confident that we will be able to sustain our load-factor and growth in the months to come as well,” he emphasised. he, however, declined any possibility of increasing capacity at this moment, because of the prevailing uncertainty in the market. In addition, managing the yield is very challenging now. “At present, we have the right amount of capacity across the country and especially from Hyderabad, which is the emerging hub for pharmaceuticals,” said Kapur.

“In the first quarter of 2013, the market trend was favourable to all those who are into cargo business. however, in the prevailing circumstances wherein the Indian rupee is fluctuating against the US dollar, the market become volatile,” said Anurag Birla, MD, Air Shagoon.

According to him, both importers and exporters have interest in the promotion of their products, and there are chances for further enhancement in their cargo productivity. Therefore, in order to meet the growing overseas customers’ demand, the shortest way is to transport the same by air.

however, there are still problems prevalent in order to fulfill the requirements in time.

Cyrus Katgara, Partner, Jeena & Co also highlighted that air cargo handles roughly 25 per cent of the total exports and import and is very critical for developing exports of products with high value addition. however this sector does not get the requisite attention.

“Our facilities remain extremely poor particularly in Mumbai and Delhi that account for over 50 per cent of the export by air. presently, it’s the indirect costs due to poor infrastructure and delays causing huge damage in terms of tangible and intangible costs such as inventory carrying, uncertainties in meeting delivery schedules and loss of confidence of buyers,” he added.

“With such delays, air freight mode coupled with increasing costs due to currency depreciation, more and more buyers are turning to sea mode of transport,” explained Katgara. The situation in imports is much more critical and causes higher imports costs for the inputs and compounds the factors present in the economy causing delays and uncertainties in the production cycles.



On the MoveAppointments

dhL Global Forwarding,

the air and ocean freight specialist within Deutsche post DHL, announces the appointment of Samar Nath as Chief Executive

Officer and Country Manager for its Indian operations, effective September 10, 2013.

Having served for more than 15 years with various organisations, Nath brings a wealth of experience and knowledge to the position. Prior to this appointment, he has worked as Executive Vice President and

Managing Director for India & South Asia at CeVA Logistics and Managing Director for India & South Asia at APL Logistics.

In his previous roles, he has an impressive track record in leading companies through various growth stages with a strong proficiency in business development, establishing startups and business integration.

Nath holds a Bachelor’s degree in Commerce and an Executive MBA in Marketing Management from Jamnalal Bajaj Institute of Management, University of Mumbai. he will be based at the company’s corporate office in Mumbai.

lufthansa Cargo AG’s Supervisory Board has

extended the contract of Executive Board member Dr. Karl-Rudolf Rupprecht. The 57-year-old, who has headed Operations at Lufthansa Cargo AG since April 2011, has been reappointed for two more years until March 31, 2016. As Executive Board Member Operations, Dr. rupprecht is responsible for the Flight Operations & Transport Management, Freight handling and Security & environmental Management divisions. Born in Kassel in 1955, the manager has been employed at Lufthansa for 25 years. After obtaining a mechanical engineering degree at Aachen Technical University, he

was a senior engineer at the university’s Hydraulics and Pneumatics Institute, where he earned his doctorate in 1988. Dr. rupprecht joined Lufthansa in the same year, initially as an assistant to the head of Aircraft Maintenance and Overhaul in Frankfurt. Between 1989 and 1994, he held various managerial posts

in the same division. At the beginning of 1995, Dr. rupprecht moved to Hamburg as Corporate Manager in Corporate Development. In July 1995, he was appointed Deputy Head of Marketing and Sales at Lufthansa Technik. From October 2000 to September 2004, Dr. rupprecht was also Managing Director of Lufthansa Technik Logistik Gmbh.

SArInI SACHDeVAsarini Sachdeva is the CEO

of Cargo Channels India. Prior to this, she held various key assignments including Director Sales & Marketing (Indian Sub-Continent) for an Austrian freight forwarder cargo partner, Director (Sales) Indian Sub-Continent for HTL Logistics, National Route Development Manager for Europe-Germany and Benelux of Hellmann Worldwide Logistics –India.

Sarini started her career with Apex, a division of Aptech and thereafter worked with NIIT, prior moving into the field of international freight forwarding and logistics 15 years ago. Starting as a Deputy Manager- Sales with the French MNC Geodis Overseas Pvt Ltd, Sarini worked with the US freight-forwarding company BAX Global Ltd as a Business Development Manager and National Route Development Manager for Europe.

Samar nath is new DHl Global Forwarding Ceo (India)

Dr. Karl-rudolf rupprecht’s contract extended

Lead Story Emerging Segments

Express Cargo

IndustryThe growth of the express cargo industry is supplemented by several emerging

verticals like organised retail and e-commerce. However, plenty of inherent challenges have been creating obstacles before industry players, resulting in

poor performance, despite huge opportunities. Cargotalk spoke to a few trade practitioners to underline the key issues.


Decreasing pace due to hassles in transit

Express Cargo

Industry


a recent study by CrISIL risk and Infrastructure Solutions (CrIS) and express Industry Council of India (eICI) reveals

that while multiple industry segments use express delivery services, certain industry segments like auto components, banking and financial services, IT components, readymade garments, pharmaceuticals, and telecom products are the largest customer segments for the express industry in India. The business from other industry segments like organised retail and e-commerce is expected to grow in the future as these industries grow in reach and size. The express industry serves the need of domestic as well as international business through their global networks.

The study also unveiled that the Indian express industry size was estimated at `10,870 crore (about US$ 2.2 billion) in 2011-12 and the industry is expected to grow at 17 per cent per annum to `17,450 crore (about US$ 3.5 billion) by 2014-15. As a labour-intensive industry, the express industry is estimated to presently employ about 11.9 lakh persons, directly and indirectly. Based on the growth estimates for the industry, the employee base of the industry, direct and indirect, is expected to grow to 17.2 lakh by 2014-15.

According to the study, the express industry is a fragmented one with large number of players, estimated at about 2,500. however, there has been considerable consolidation of the industry over the years and the large organised players, including government postal department, presently have about 72 per cent share of the

industry revenue with the semi-organised players estimated to have another 15 per cent share while smaller players have the residual market share. The larger players have presence in national and international locations. The medium-size players have regional focus with limited presence across other regions. The smaller players are mostly unorganised and have networks limited to few cities and towns.

opportunities & ChallengesVijay Kumar, COO, eICI, says that Ecommerce is a segment which is gaining strength in the express delivery services. However, the major challenges that the industry faces continue to be lack of good infrastructure as well as regulatory challenges. road and airport infrastructure remains major issues. “We do have challenges of space constraints for express operators at Mumbai airport. Added to that is the huge costs charged for such infrastructure by various operators across the country. In fact, this would be a major barrier to growth of the express industry,” he said. In terms of regulatory barrier, the major issues are on the state regulatory front leading to substantial loss of time and consequent transaction cost increases.

According to Anil Khanna, MD, Blue Dart express, the express industry is a key enabler in facilitating trade and commerce because of the time-sensitive nature of most goods and the increasing demand for reliability, efficiency and speed. Commenting on the present market scenario for express cargo he maintained that there are certain sectors that do not get impacted by a slowdown - sectors like life sciences and health care, the after-market segment of the auto sector and high-growth verticals like e-tailing.

We have challenges of space constraints for express operators at

Mumbai airport. Plus, there are charges

for such infrastructure by various operators across the country”

Vijay Kumar COO, EICI

shipment profile: share of domestic & international destinations

Source: Primary Survey

Vijay Kumar COO, EICI

Anil KhannaMD, Blue Dart Express

Areef PatelExecutive Vice Chairman, Patel Integrated Logistics



Currently, the industry faces infrastructure issues, high operating costs, bottlenecks in state border clearance and other disadvantages like the Carriage by road Act, Local Body Tax, etc. This is coupled with high fuel costs, controversial Airport Development fees (ADf), regulatory hurdles, delays in state border checkpoints and customs, etc.

The air infrastructure in the country is inadequate in terms of cities covered and cargo handling capacities leading to significantly higher dwell-time as compared to international standards. Insufficient aircraft bays, truck docking stations, limited space for express terminals, clearance processes lead to delays and impact operational cost. post the privatisation of major airports, the operating cost at those airports have also multiplied manifold without any significant improvement or differentiation in services offered. “The Aviation Turbine fuel (ATf) price with its high price volatility and multiple rates across states directly impacts operating margins. The drastic fall in the value of rupee versus the dollar also affects our business planning,” he observed.

In his opinion, to enjoy the full benefits of integrated air-express services, the government needs to address cumbersome customs clearance procedures, and restrictions on investment in ground transportation operations. “While the Airports economic regulatory Authority (AerA) is focussing on various matters related to airport economics, there is no designated official to study issues that govern economics of the air cargo industry, especially how airport operators levy

charges and change them at will,” Khanna observed. “The ministry should address the increasing cost of ATF and also give it a ‘declared goods’ status to attract a uniform VAT of 4 per cent across India,” he added.

Areef Patel, Executive Vice Chairman, Patel Integrated Logistics, viewed that the game-changers for express cargo industry are the changing demographics, infrastructure development, process efficiency, and inter-sector coordination. The express cargo and logistics industry is the backbone of the economy, and although this sector has witnessed significant change over the past years, it hasn’t kept pace. “There is a need to speed up the pace and bridge the gaps that exist in each segment of this sector. There has to be a paradigm shift which will eliminate hurdles and promote smooth functioning and uniform progress across segments in the Indian logistics scenario,” he said.

Rakesh Shalia, Managing Director, Marketing, Middle East, Indian

The Aviation Turbine fuel (ATf) price with its high price volatility

and multiple rates across states directly impacts

operating margins”Anil Khanna

MD, Blue Dart Express

growth outlook for the express industry in India

Figures in Rs. crore

Rakesh ShaliaManaging Director - Marketing - Middle East, Indian Subcontinent

& Africa, FedEx Express

Diljeet SinghChief Sales & Marketing

Officer, GATI-KWE

Deepak MoreManaging Director, SD Cargo

There has to be a paradigm shift which will eliminate hurdles and promote smooth

functioning and uniform progress across segments

in the Indian logistics scenario”

Areef Patel Executive Vice Chairman, Patel

Integrated Logistics


Subcontinent & Africa, FedEx underlined that with evolving markets, customers are looking for ‘value-added services’ in express logistics sector. More and more customers want to deal with single service provider for all their requirements as it is simpler to integrate with their systems. “The biggest challenge faced by the express cargo industry is the infrastructure. Due to inadequate infrastructure, the industry is not really able to utilise its full potential. for instance, airports are a big challenge as they are congested”, Shalia said.

Diljeet Singh, Chief Sales & Marketing Officer, GATI-KWE was of the opinion that increased globalisation has led to highly competitive markets, thereby resulting in shortening product life-cycles. In such scenario, the success of the company is highly dependent on timely delivery of its products and customer support throughout transit. As a result, this has increased the need for express logistic companies that can offer such support coupled with additional VAS – door pickup/online tracking/payment on delivery, etc. Moreover, the E-tailing boom has brought more focus on the concept of express delivery services than ever before. “Apart from infrastructure challenges, skilled manpower scarcity is another challenge. As the industry is still in an evolving stage, it does not attract quality manpower. The biggest challenge lies in recruiting workforce for middle level or shop floor level,” said Singh.

highlighting the current trends in the express cargo market Deepak More, Managing Director, SD Cargo highlighted that the express logistic market has indicated a very good encouraging upward trend after a long period. Gazing at the scenario and customer cost-effective

approach, new avenues of express logistics routes such as rail and surface express have got a boost. “It’s a customer-oriented market where they require single-window solutions to meet their logistics requirements. It’s a great challenge to cope up with customer’s expectations,” More said. He also pointed out that margins are shrinking to maintain the service levels. Challenges are in terms of rising fuel prices that is a major component in costing. Costing has also gone up due to various airport-levied charges, which again is varying from airport to airport. “Major concerns towards airport-levied charges are, in spite of paying these charges, there are no proper infrastructure and facilities, resulting in delay of retrieval of cargo thus impacting the lead-time,” he lamented.

pragmatic solutionsInfrastructure up gradation and looking at express industry as a vital part of the economy would be the major task before the country. “As part of our trade facilitation initiative, we (eICI) set up Common User Express Terminals at Mumbai, Bangalore and Delhi terminals. We have a ppp with Indian Customs to jointly develop eDI for express clearances. We have been working with various government and other agencies to ensure better facilitation of the trade,” Kumar stressed.

“The implementation of the proposed uniform Goods & Service Tax (GST) may see a shift in trend in the movement of goods and will make it economically viable to simplify distribution network and result in economies of large scale operations,” said Khanna.

“I think this industry is very competitive, has witnessed significant growth, and can progress further, provided the Government of India works hand-in-hand towards reforming transparent and regulatory policies, better labour

and outsourcing laws, viable solutions, innovative management, dedicated freight corridor, introduction of better financial instruments, electronic toll collection, development of national highways, improved and urban infrastructure in the hinterland, better facilities in terms of equipment and advanced technology introduction and adoption in this segment,” Patel supplemented.

According to Singh, automation and policy changes are two immediate pragmatic solutions to the problems being faced. On the technology front, using electronic toll gates with automated clearance processes could considerably save time, while a more unified policy and tax structure across states will greatly help in reducing delays. In addition, said Singh, “The Government needs to have a single uniformed policy across the country; this will reduce delays and increase the average speed of trucks significantly. Also the government must push for faster implementation of GST.”

Shalia urged for entry of private players. “If the government brings in attractive policy for private players to build the infrastructure on PPP model, it can do wonders for the express cargo industry. Delhi airport is an excellent example of PPP model. Though the operational charges have gone high for airlines, express cargo will benefit the business in the long run and increase efficiency of the companies,” he argued.

He also emphasised on early implementation of GST. “It will not only simplify our business model but will also reduce paperwork and streamline our business,” he maintained. More also stressed on a uniform government policy pertaining to documentation, across the nation for hassle-free movements of goods.

n Ratan Kr Paul (with inputs from Anita Jain)


Due to inadequate infrastructure, the

industry is not really able to utilise its full potential. For instance, airports are a big challenge as they

are congested”Rakesh Shalia

Managing Director, Marketing, ME, Indian Subcontinent & Africa, FedEx

The express logistic market has indicated

a encouraging upward trend after a long period”

Deepak More Managing Director, SD Cargo

As the industry is still in an evolving stage, it does not attract quality

manpower”Diljeet Singh

Chief Sales & Marketing Officer, GATI-KWE


DELHI InTERnATIOnAL AIRPORT CARGO DEPARTMEnT, IGI AIRPORT, nEW DELHI

(AIRLInE-WISE IMPORT/ExPORT CARGO PERFORMAnCE FOR THE MOnTH OF AUGUST 2013)

Total 14185 2454 16640 14641 31281 100.00%Cargo handled in August ‘12’ 10698 2960 13658 11976 25634 % VARIATION 32.60% -17.08% 21.83% 22.25% 22.03%

1 CathayPacific 1018 31 1049 2153 3202 10.24%2 Jet Airways 1081 141 1222 1715 2937 9.39%3 Emirates 638 1133 1771 637 2408 7.70%4 Air India 846 199 1044 1127 2172 6.94%5 British Airways 1145 63 1207 927 2134 6.82%6 Singapore 767 23 790 729 1519 4.86%7 Thai Airways 289 48 337 966 1303 4.17%8 Lufthansa Cargo Airline 603 81 684 568 1252 4.00%9 Qatar Airways 547 136 683 359 1043 3.33%10 Uni-Top Airlines 0 0 0 890 890 2.85%11 fedex express Corpation 517 2 520 356 876 2.80%12 etihad Airways 405 48 452 349 801 2.56%13 Swiss Intl Airline Ltd 502 9 512 281 792 2.53%14 Kalitta Air 433 0 433 355 789 2.52%15 KLM 445 52 497 199 696 2.23%16 Uzbekistan 416 36 452 162 614 1.96%17 Malaysian Airline System 226 32 258 355 613 1.96%18 Air france 399 7 406 194 601 1.92%19 Virgin Atlantic 351 1 352 206 558 1.78%20 All Nippon Airways 315 0 315 224 539 1.72%21 Turkish Airlines 350 14 364 104 468 1.49%22 Japan Airlines 141 11 152 276 428 1.37%23 Saudia 198 163 362 12 373 1.19%24 China eastern Airlines 191 0 191 177 368 1.18%25 Aeroflot Cargo Airlines 257 81 338 29 367 1.17%26 finnair 199 9 207 143 351 1.12%27 China Southern Airlines 62 0 62 244 306 0.98%28 Lufthansa Cargo Ag 146 20 165 119 285 0.91%29 United Airlines 197 0 197 41 238 0.76%30 Spice Jet 147 1 149 65 213 0.68%31 Martin Airline 91 8 99 114 212 0.68%32 Air China 102 1 102 93 195 0.62%33 China Air 94 0 94 83 176 0.56%34 Indigo Cargo 136 1 137 24 161 0.51%35 Hercules Aviation 117 0 117 27 143 0.46%36 Asiana Airlines 37 1 38 78 116 0.37%37 Blue Dart 92 0 92 23 115 0.37%38 Dhl express 0 0 0 114 114 0.36%39 Mahan Air 97 7 104 9 113 0.36%40 Air Arabia 85 0 85 6 91 0.29%41 Gulf Air 65 23 88 1 89 0.28%42 ethopean Airlines 50 5 55 29 84 0.27%43 Oman Air 57 22 79 1 80 0.26%44 Air Mauritius 68 9 77 1 78 0.25%45 Sri Lankan Airlines Ltd 37 0 37 9 47 0.15%46 Air Shagoon pvt. Ltd. 44 0 44 0 44 0.14%47 Kuwait Airlines 2 30 33 6 38 0.12%48 Ariana Afghan Airlines 37 0 37 1 38 0.12%49 Biman Bangladesh 16 0 16 20 36 0.11%50 Air Astana 24 5 29 1 30 0.09%51 Mihin Lanka Airlines 12 0 12 8 20 0.06%52 Kam Air 18 0 18 2 20 0.06%53 royal Jordanian Airlines 17 0 18 0 18 0.06%54 Kenya 16 0 16 2 18 0.06%55 UpS 0 0 0 16 16 0.05%56 pakistan International 5 0 5 9 13 0.04%57 Turkmenisthan Airlines 12 0 12 0 12 0.04%58 Tajik Air 7 3 10 0 10 0.03%59 Spice Jet 8 0 8 0 8 0.03%60 flywell Aviation pvt. Ltd 7 0 7 0 7 0.02%61 Safi Airways 2 0 2 1 3 0.01%62 Jetlite 0 0 0 1 2 0.00%63 Iraqi Airways 1 0 1 0 1 0.00%64 Druk Air 0 0 0 1 1 0.00%65 eva Air 0 0 0 0 0 0.00%66 Kyrgyzstan Air Company 0 0 0 0 0 0.00%67 Air Moldova 0 0 0 0 0 0.00%68 Abakan Avia 0 0 0 0 0 0.00%69 flywell Aviation 0 0 0 0 0 0.00%

S. No. Airlines Export With- Export Export with Import Total Cargo % Out Peri- Perishable Perishable (MTs) (MTs) of Total shable (MTs) Cargo (MTs) (UPL) (MTs)

Cargo Performance Export/Import


MUMBAI CSI AIRPORTExPORT/IMPORT CARGO TOnnAGE HAnDLED

In AUGUST 2013

S.No. Airlines Export Export Total Import Total General Perishable Export Exp+Imp

1 Jet Airways 1118.35 1035.72 2154.07 2019.36 4173.43 2 Emirates 1134.29 971.47 2105.76 924.98 3030.74 3 Lufthansa 622.00 589.34 1211.34 1368.27 2579.61 4 Air India 791.34 986.29 1777.63 617.76 2395.39 5 Singapore Airlines 803.84 214.54 1018.38 1168.92 2187.30 6 CathayPacific 981.42 47.91 1029.33 1064.66 2093.997 British Airways 532.73 705.86 1238.59 672.97 1911.56 8 Etihad Airways 814.34 88.57 902.91 680.59 1583.50 9 Qatar Airways 497.78 355.05 852.83 522.03 1374.86 10 Saudi Arabian Airlines 658.23 184.29 842.52 89.26 931.78 11 Swiss Intl. Airlines 368.83 126.24 495.07 363.59 858.66 12 Turkish Airlines 580.93 44.41 625.34 229.23 854.57 13 ethopian Airlines 832.35 5.18 837.53 6.77 844.30 14 Malaysian Airlines 300.01 25.06 325.07 316.24 641.31 15 Air france 376.01 53.76 429.77 211.13 640.90 16 Thai Airways 233.03 51.09 284.12 338.96 623.08 17 federal express 292.84 68.70 361.54 182.38 543.93 18 Virgin Atlantic 297.83 22.88 320.71 214.72 535.43 19 Delta Airlines 240.37 98.84 339.21 137.98 477.19 20 fin Air 220.92 18.41 239.33 221.00 460.33 21 UpS 111.87 0.00 111.87 332.90 444.77 22 Martin Air 0.00 0.00 0.00 366.33 366.33 23 Kenya Airways 313.73 1.58 315.31 10.60 325.91 24 South African Airlines 300.76 1.55 302.30 16.93 319.24 25 Kuwait Airways 112.71 184.24 296.95 5.21 302.17 26 Air Cargo Arologic C/O Lufthansa 0.00 0.00 0.00 221.50 221.50 27 Gulf Air 63.84 146.74 210.58 1.35 211.93 28 Air Mauritius 169.16 3.18 172.34 1.84 174.18 29 Air Arabia 29.51 129.21 158.72 1.66 160.38 30 Oman Air 58.55 72.59 131.14 3.10 134.24 31 NorthWest Airlines 0.00 64.22 64.22 64.00 128.22 32 Korean Air 52.35 1.41 53.76 70.73 124.49 33 eL-AL Airlines 58.54 2.26 60.80 39.09 99.89 34 Indigo Air 42.64 45.48 88.12 0.15 88.27 35 Air India + Air India Carriers 0.22 79.87 80.09 7.97 88.05 36 United/Continental Airlines 63.27 6.58 69.85 13.09 82.94 37 Srilankan Air 53.53 7.64 61.17 13.06 74.23 38 Bangkok Airways 60.77 3.66 64.43 2.39 66.82 39 Blue Dart 40.29 0.00 40.29 19.14 59.43 40 Yemenia Airways 48.59 8.47 57.07 0.01 57.07 41 Iran Air 29.66 5.24 34.90 14.40 49.30 42 pakistan Intl Airlines 14.32 6.40 20.71 5.05 25.76 43 royal Jordanian 17.29 1.47 18.76 0.27 19.03 44 egypt Air 9.50 0.00 9.50 0.67 10.17 45 Air China 5.23 0.00 5.23 0.54 5.77 46 Austrian Air 0.00 0.00 0.00 0.00 0.00 47 Baharin Airlines 0.00 0.00 0.00 0.00 0.00 48 Kingfisher Airlines 0.00 0.00 0.00 0.00 0.00 49 Qantas 0.00 0.00 0.00 0.00 0.00 50 Island Aviation (Maladvian) 0.00 0.00 0.00 0.00 0.00 51 royal Joradian 0.00 0.00 0.00 0.00 0.00 52 Charters 0.00 0.00 0.00 0.00 0.00 53 Others 83.90 4.61 88.51 220.00 308.51

TOTAL 13437.66 6470.03 19907.69 12782.79 32690.48

Airlines Handled By MIAL & AI


(E) Other Airports 127 115 10.4 324 443 -26.9 Grand Total 65999 66447 -0.7 191449 203871 -6.1 (A+B+C+D+E)

TRAFFIC STATISTICS D O M E S T I C F R E I G H T

1 Chennai 5943 6935 -14.3 17282 20652 -16.3 2 Kolkata 6951 6472 7.4 20079 20184 -0.5 3 Ahmedabad 2992 3015 -0.8 8453 8905 -5.1 4 Goa 180 245 -26.5 534 753 -29.1 5 Trivandrum 95 145 -34.5 303 402 -24.6 6 Calicut 18 10 80.0 50 36 38.9 77 Guwahati 542 453 19.6 1572 1456 8.0 8 Lucknow 181 171 5.8 632 510 23.9 9 Srinagar 622 430 44.7 1194 930 28.4 10 Jaipur 671 524 28.1 1725 1586 8.8 11 Coimbatore 503 562 -10.5 1450 1626 -10.8 12 Mangalore 18 21 -14.3 62 85 -27.1 13 Amritsar 13 5 160.0 40 16 150.0 14 Trichy 0 0 - 0 0 - 15 Varanasi 30 19 57.9 79 79 0.0 16 portblair 176 88 100.0 563 415 35.7 Total 18935 19095 -0.8 54018 57635 -6.3

(A) 16 International Airports

(B) 6 JV International Airports

(C) 7 Custom Airports

(D) 17 Domestic Airports

17 Delhi (DIAL) 15298 15654 -2.3 45215 49903 -9.4 18 Mumbai (MIAL) 15216 15983 -4.8 43800 47431 -7.7 19 Bangalore (BIAL) 7485 7077 5.8 21231 21176 0.3 20 Hyderabad (GHIAL) 2918 2719 7.3 8511 8315 2.4 21 Cochin (CIAL) 692 767 -9.8 2197 2236 -1.7 22 Nagpur (MIpL) 412 431 -4.4 1120 1211 -7.5 Total 42021 42631 -1.4 122074 130272 -6.3

23 pune 1513 1502 0.7 4566 5733 -20.4 24 Visakhapatnam 190 198 -4.0 466 462 0.9 25 patna 477 176 171.0 1134 538 110.8 26 Chandigarh 132 224 -41.1 742 723 2.6 27 Bagdogra 96 140 -31.4 336 427 -21.3 28 Madurai 127 60 111.7 336 184 82.6 29 Gaya 0 0 - 0 0 - Total 2535 2300 10.2 7580 8067 -6.0

30 Bhubaneswar 250 272 -8.1 809 790 2.4 31 Indore 359 363 -1.1 1199 1078 11.2 32 Jammu 121 87 39.1 376 297 26.6 33 raipur 270 215 25.6 775 682 13.6 34 Agartala 498 483 3.1 1570 1528 2.7 35 Vadodara 155 182 -14.8 461 622 -25.9 36 Imphal 294 289 1.7 901 1046 -13.9 37 Bhopal 74 80 -7.5 213 241 -11.6 38 ranchi 188 132 42.4 534 405 31.9 39 Aurangabad 47 63 -25.4 166 223 -25.6 40 Udaipur 0 0 - 0 0 - 41 Leh 87 97 -10.3 321 378 -15.1 42 Tirupati 0 4 -100.0 0 6 -100.0 43 rajkot 16 17 -5.9 44 71 -38.0 44 Jodhpur 1 1 0.0 4 3 33.3 45 Dehradun 0 0 - 0 0 - 46 Dibrugarh 21 21 0.0 80 84 -4.8 Total 2381 2306 3.3 7453 7454 0.0

Freight (in Tonnes) For the Month For the period April to JuneS. No. Airport June 2013 June 2012 % Change 2013-14 2012-13 % Change

Cargo Performance Airports in India


Customers moving outsize and heavyweight air cargo with Volga-Dnepr Airlines can now track their

cargo using SMS. The airline is using the short message service to customers’ mobile telephones to provide updates on the progress of charter flights and this is also supported by email alerts.

According to Vitaly Andreev, head of Customer Service for Volga-Dnepr Airlines, this new service will allow them to inform their customers about

aircraft movement, including the date and flight number, airport information and estimated time of departure and arrival.

“SMS messaging enables us to provide customers with important updates on their cargo movement, irrespective of the time of day, at weekends or over holiday periods when they are away from the office, or in situations where they may have limited internet access. We hope customers will see this as another valuable service benefit,” he said.

Volga-Dnepr launches SMS messaging for air charter updates

TRAFFIC STATISTICS I n T E R n AT I O n A L F R E I G H T

17 Delhi (DIAL) 31439 29669 6.0 95285 92039 3.5 18 Mumbai (MIAL) 38761 40491 -4.3 116714 119161 -2.1 19 Bangalore (BIAL) 12762 12632 1.0 38137 36573 4.3 20 Hyderabad (GHIAL) 4396 3868 13.7 12932 11341 14.0 21 Cochin (CIAL) 3330 2743 21.4 10251 8796 16.5 22 Nagpur (MIpL) 23 29 -20.7 99 99 0.0 Total 90711 89432 1.4 273418 268009 2.0

(B) 6 JV International Airports

(C) 7 CUSTOM AIRPORTS

(A) 16 International Airports

23 pune 0 0 - 0 0 - 24 Visakhapatnam 0 0 - 0 0 - 25 patna 0 0 - 0 0 - 26 Chandigarh 0 0 - 0 0 - 27 Bagdogra 0 0 - 0 0 - 28 Madurai 0 0 - 0 0 - 2929 Gaya 0 0 - 0 0 - Total 0 0 - 0 0 -

Freight (in Tonnes) For the Month For the period JuneS. No. Airport June 2013 June 2012 % Change 2013-14 2012-13 % Change

(D) 17 Domestic Airports 0 0 - 0 0 -(E) Other Airports 0 0 - 0 0 - Grand Total (A+B+C+D+E) 120198 124258 -3.3 359865 367799 -2.2

1 Chennai 19524 22835 -14.5 56177 63613 -11.7 2 Kolkata 3584 3596 -0.3 10063 10293 -2.2 3 Ahmedabad 1500 1143 31.2 4422 3007 47.1 4 Goa 150 119 26.1 457 457 0.0 5 Trivandrum 2183 4145 -47.3 6648 13273 -49.9 6 Calicut 2009 2427 -17.2 6764 7585 -10.8 7 Guwahati 1 0 - 8 0 - 8 Lucknow 86 106 -18.9 220 246 -10.6 9 Srinagar 0 0 - 0 0 - 10 Jaipur 10 16 -37.5 56 69 -18.8 11 Coimbatore 69 49 40.8 206 136 51.5 12 Mangalore 0 0 - 0 0 - 13 Amritsar 23 120 -80.8 296 332 -10.8 14 Trichy 348 270 28.9 1130 779 45.1 15 Varanasi 0 0 - 0 0 - 16 portblair 0 0 - 0 0 - Total 29487 34826 -15.3 86447 99790 -13.4

Cargo Performance Airports in India

News in BriefCharter Services


Alliances and JVsLogistics Services

the company sources informed that, through this joint venture, BVC Group will be using Brinks Global Services network for its Diamond

and Jewellery (D&J) International Shipments to more than 100 countries (door-to-door secure delivery). BVC Logistics will cater to all the domestic logistics and customs clearance of D&J for Brinks Arya, the Indian arm of the international major. Further expansion of infrastructure and use of sophisticated technology such as expansion in the number of armoured vehicles, security equipment, erp and tracking devices are also part of the new partnership.

“The partnership with Brinks will help us access some of the best global practices and technology,” said Uday Chinai, Chairman and Managing Director, BVC Group Logistics.

According to Samir Hosangady, Managing Director, Brinks India; by leveraging BVC Group’s exceptional sales and customer service culture on top of Brink’s global infrastructure, the JV will be able to support India’s position as the leading centre for the global Diamond & Jewellery industry.

BVC Group ties up with Brinks India bvC group logistics servicesn Custom Clearance, Logistics

Transportation, Tours and Travels n Specialised in Gems and Jewelry

handlingn Offers Invaluable Asset

Movement Solutionsn Also handles General Cargon BVC has a domestic network of

over 120 citiesn International delivery to over 100

countries

With an objective to strengthen and enhance the market share of ‘door-to-door secure service’ BVC Group and Brinks India has recently entered into a strategic partnership. BVC Group Logistics is the world’s leading player in providing logistic solutions to the gem and jewellery sector and the tie up with Brinks India is to provide a seamless service throughout India and internationally.


Family AlbumAgent Award

hosts award Winning Evening to honour top agentsSaudi Arabian Airlines Cargo recently hosted ‘Award Winning Gala Function’ to felicitate its ‘Top India Clients 2012’ in Mumbai. The event was presided by Keku Bomi Gazder, Regional Director India Sub Continent, Saudia Cargo. Apart from the airline officials, a large number of cargo agents and industry stake-holders attended the function to enjoy the evening.

saudi arabian airlines Cargo


Family AlbumClub Event

air Cargo Club of madras

organises ‘Car treasure hunt’For the first time in the history of Air Cargo Club of Madras, the car racing event called ‘Car – Go’ was organied on August 4, 2013 at Madras Race Club. Amanullah Khan – Vice Chairman of Madras Race Club and flagged off the event, which was participated by 69 members with 23 cars. The first, second and third prizes were won by the Team FedEx Trade networks & Transport, Team Visesh Cargo & Travels and Team Seawaves Shipping Services respectively.


Family AlbumClub Event

new managing Committee hosts lunch to think beyond businessThe Air Cargo Club of Delhi (ACCD) organised its first event by hosting a serious discussion on “Beyond Business-But Business — Taking the next Step on Your Path to Success”. The renowned motivational speaker and trainer, Him-eesh Madaan was the Guest Speaker of the event. This was followed by sumptuous lunch at nidra in Delhi.

aCCd


Family AlbumAnnual General Meeting

air Cargo Club of bombay

hs arora elected as president of aCCb at its agmRecently, the Air Cargo Club of Bombay (ACCB) elected its new managing committee with HS Arora, Hon. President; Conrad Aranha, Hon. Vice President; Raju Mehandarkar, Hon. Secretary and Gopal Devadiga as Hon. Treasurer. The managing committee members include S Venkatraman, Hariharan, Bradley Dlima, Balakrishnan R, Vineet Agarwal and Ajit. Earlier, Arora was the Hon. Treasurer of ACCB.


Skill DevelopmentTalent Hunt

The effort of ours will help to bridge the skill

gap existing in the logistics sector”

Dr. Veni Mathur dean, million minds

The Indian logistics industry needs young professionals as future

leaders”Amit Shankhdhar director, million minds

We are coming up with ‘LTH-2014 Season 3’,

which will be larger than the previous season”

Premprakash director, million minds

Million Minds meet management colleges to promote ‘LTH-2014’In view of the emerging skill gap in the logistics sector and the growing demand of young professionals in the logistics industry, Million Minds Management Services recently organised a meeting of training and placement officers of management colleges and industry experts in new Delhi.

the topic of discussion was ‘Opportunities for Young professionals in Logistic Industry’. The training and placement officers

represented the student community and put forward the students’ perception about the logistics industry.

Speaking at the meet, Premprakash, Director, Million Minds said, “We are coming up with ‘Logistics Talent hunt-2014 Season 3’, which will be on a larger scale than the previous season.” He also maintained that this season will involve more colleges and will aim to minimise skill gaps in the logistics industry. explaining the importance of LTH-2014, he said that it is an idea to raise awareness among students about logistics industry.

Amit Shankhdhar, Director, Million Minds, pointed out the gap in logistics

education in many colleges and how it impacts the placement of students in logistics companies. He said, “Today, the Logistics industry is most shy in recruiting management students because of many issues like lack of understanding and focus on logistics by most of management schools. It results in students being deprived of exposure to this growing sector. The Indian logistics industry needs young professionals as future leaders who will bring in more innovation and technology to make this industry globally competitive and agile to changing needs of customers.” Million-Minds, through its flagship programme (LTH) is striving hard to bridge this gap and bring industry and institutes closer,” he emphasised.

Dr. Veni Mathur, Dean, Million Minds, elaborated on the courses developed by Million Minds, with an objective to improve the employment opportunities for

the candidate. “The effort will help to bridge the skill gap existing in the logistics sector,” she asserted.

According to Mathur, the training and placement officers offered valuable suggestions as to how Million Minds can become a strong bridge between the student community and the logistic industry.

The training and placement officers and experts who attended the meet include Rakesh Singh, Deputy Director, Amity University, Noida; Shakshi Arora, Manager Corporate relation, JIMS, Kalkaji; Manik Katyal, head Training and Placement Cell, Shikshapeeth College; Bikash Sharma, Manager placement, IIMT, Gurgaon; VIKAS SAINI, placement Head, DITM college and CS KHANDeLWAL, ex-faculty IMr, Million Minds.


gati will contribute a sum equivalent to double the employee’s contribution, and this amount will be used to carry out development

work at Uttarakhand.

green officesAs a step towards its internal green initiatives, GATI has made it mandatory for all its express Distribution Centres across the country to plant and maintain a green stretch in and around their premises.

recycling of E-WasteSince the last three years, GATI has been disposing off its old IT hardware in an organised and environment friendly way. All the old IT hardware is consolidated and handed over to eco-recycling Limited for recycling. This initiative is aimed at reducing air and water pollution caused by hazardous disposal. Additionally, recycling also reduces the amount of greenhouse gas emissions caused by the manufacturing of new products and helps keep the environment green.

Wealth out of Waste projectGATI is supporting ITC-pSpD LTD Wealth out of Waste (WOW) project .This project aims to protect the environment and reduce global warming by creating awareness among the people on the importance of ‘recycling’ - encouraging them to segregate waste and dispose it responsibly. GATI is supporting this environmental cause by collecting recyclable material at all its office locations and giving it for recycling.

the sunderban projectThe Tagore Society for rural Development (TSrD) has been running six projects in the state of West Bengal to create awareness among the Sunderban communities. To

help the TSrD in its mission, GATI has sponsored the publication of study material (books and journals) which will be distributed to schools, colleges and self-help groups so that necessary steps can be taken to preserve the eco-harmony of Sunderban.

harith andhra pradesh initiativeGati partnered with the AP Government towards turning the state into ‘harith Andhra pradesh’. This first of its kind initiative to plant a million trees on a single day had been taken up by the state government to fulfill the dream of late Chief Minister, YS rajasekhara reddy in turning the state into ‘harith Andhra pradesh’, and in turn towards the larger cause of ‘Global Warming’. As part of this historic tree plantation program, GATI provided the complete logistic support needed for organising transportation of the saplings from nurseries to various plantation sites

plantation of green belt under metro trackGati strongly believes in its responsibility towards the environment. One such initiative undertaken by Gati in the year 2010-11 was the plantation and maintenance of the Green Belt under the Metro Track in Gurgaon, Delhi to offset carbon emissions. As part of this initiative, Gati had planted about 150 tall trees and 300 shorter trees over a stretch of one and a half kilometres to offset carbon dioxide emission.

The trees which were planted included ficus panda (perennial green tree), Bottle Brush (flowering tree), Badelia (ground cover- to prevent evaporation and top-soil loss and soil-cover for less dust). This would offset approx 1,500 to 2,500 tonnes of carbon emissions.

Green InitiativesCSR

As a step towards its internal green initiatives, GATI has made it mandatory for all its Express Distribution Centres across the country to plant and maintain a green stretch in and around their premises

Gati lends support to Uttarakhand victims to strengthen CSRRecently, to strengthen the relief efforts in Uttarakhand, Gati has deployed its vehicles to transport relief material to the affected people. In addition, Gati employees across the country have voluntarily donated 2 days’ salary.

p Gati branding on a Metro support pillar


the port has handled approximately two million MTs of dry bulk, and break-bulk cargo. At the present, two multi-purpose berths having a

single quay length of 650 metres are under operation. All berths constructed are multi-purpose and multi-cargo ones and the two mobile harbour Gottwald cranes are also capable of handling containers. The mobile cranes (6-series) having a rated handling capacity of 1,000 MTs per hour. A dedicated container terminal is being developed on the North Bank (Agardanda) of Dighi port. There are three more berths having a total quay length of 1,100 metres under development, which shall be commissioned in a phased manner. “The berths for the container terminal are under construction and will be ready by first quarter of 2014. The Dighi port at present offers a depth of 12.5m which will

be further dredged to 14.5m by the end of phase I,” said Kalantri. The 3 berths are of linear quay length of 1,100m and will be used primarily for handling containers, rOrO and other Clean Cargo.

He also informed that as Dighi port has a total waterfront of nearly 5 kms, the development of Dighi port can be scaled up to a capacity of 90 million MTs of cargo with a uniform depth of up to 20m.

“Once the container terminal is operational, we expect most of the shipping lines to be calling this port,” said Kalantri. As of now, the port has handled panamax sized and capsized bulk cargo vessels, which have been chartered by importers.

port Connectivity and amenitiesDighi port is not connected to National Grid of Indian railways as yet. The rail connectivity from the port to the nearest Konkan rail Head, which is at a distance of 47 kms from the port, is being established. The port has tied up with rail Vikas Nigam for creation of this dedicated railway line connecting the port to the National Grid of Indian railways.

Dighi port is being developed by Balaji projects Ltd. (BIpL) under a 50 year ‘Build, Own, Operate, Share, Transfer (BOOST)’ concession agreement signed with the Maharashtra Maritime Board, the Government of Maharashtra.

Shipping & PortsNew Initiatives

The Dighi Port is all set for establishing itself as an all-weather, deep-draft, direct berthing port in Maharashtra. The port is located at a distance of 42 nautical miles (160kms by road) south of Mumbai. The port is capable of handling bulk, break-bulk, liquid and LnG, and soon will be ready to handle RORO and containerised cargo. In an interview with Cargotalk, Vijay Kalantri, Chairman & Managing Director, Dighi Port, provides more details.

Vijay KalantriChairman & Managing

Director, Dighi Port

usps of dighin A multi-cargo, all weather, direct

berthing port with state-of-the-art cargo handling equipment

n Having a land bank in excess of 1,600 acres

n A natural harbour and an exclusive channel offering a depth of 14.5m

n Dighi Port is being developed on two banks of Rajpuri creek, which allows the port to segregate Clean Cargo from Dirty Cargo

n Capable of handling bulk, break-bulk, liquid, LNG, RORO and container cargo

n Offers a port based SEZ and FTWZ

on the way to be a multimodal logistics hubDIGhI PorT


the ambitious rollout plan, which has seen the ediEnterprise database adopted at the rate of one country per month every month since

December 2010, was built around a series of production pilots which enabled the Geodis Wilson staff to gain a strong understanding of how the system would function in real-life situations. As a result, the project has been able to maintain an extraordinary pace with a minimum of challenges.

“The larger part of our Asia-Pacific structure is now fully onboard, enabling us to cover the bulk of our export platform with ediEnterprise software. We have been reaping the benefits of a single file concept from Day One, especially in the importing countries, because we only enter customer data once and it can be shared across our entire network,” said Håkan Nilsson, CIO, Geodis Wilson.

Announced in December 2010, the €20 million project is gradually replacing separate software applications and databases with a single, centralised corporate database. The project is already well on track toward very ambitious productivity targets. full global deployment is expected by April next year.

Nilsson also informed that the major challenges of the implementation have been operational, and based on the transition from country-based processes to a single global system supported by common processes. However, he says, the tireless work of project Leader Henri Parisse and project Director and Chief Operations

Officer Eric Martin Neuville have enabled the rollout to maintain momentum over a sustained period.

According to Richard White, CEO, CargoWise, the Geodis Wilson project is an excellent example of the benefits of a Production Pilot to software assessment and acquisition. “The Production Pilot is an agile approach that enables logistics companies to accelerate the evaluation process because it provides realistic insight into how the software will function in a real life environment,” he said.

CargoWise is a global leader in logistics technology solutions that improve visibility, efficiency, quality of service and profitability. It is renowned for its next-generation solutions, including ediEnterprise, an integrated single platform supply chain logistics management system with global capability.

Emerging TechnologiesNews Update

The larger part of our Asia-pacific structure is now fully onboard, enabling us to cover

the bulk of our export platform with

edienterprise software”Håkan Nilsson

CIO, Geodis Wilson

CargoWise software gets

3,600 new users

The Production Pilot is an agile approach that enables logistics

companies to accelerate the evaluation process

because it provides realistic insight into

how the software will function in a real-life

environment”Richard Whiteceo, cargowise

CargoWise, a global leader in technology solutions for logistics service providers announced globally that freight management company Geodis Wilson has transitions for over 3,600 users across 22 countries onto the ediEnterprise platform.


E xports during August, 2013 were valued at US$ 26,135.94 million (`1,65,202.15 crore) which was 12.97 per cent higher in dollar terms

(28.53 per cent higher in rupee terms) than US$ 23,134.47 million (`1,28,534.68 crore) during August 2012. The cumulative value of exports for the period April-August 2013-14 was US$ 1,24,426.07 million (`7,24,733.44 crore) as against US$ 1,19,771.91 million (`6,54,859.77 crore) registering a growth of 3.89 per cent in dollar terms and growth of 10.67 per cent in rupee terms over the same period last year.

“The world economy appears to be getting back on its feet. risks from advanced economies have eased, with Europe reporting modest growth in last quarter. Growth in the developing world will remain solid, albeit slower as developing countries grapple with home-grown challenges brought on by capacity constraints in many middle-income countries,” said Ahmed. “We expect that the double-digit growth recorded in July and August will continue with better results from October onwards. We will cross the export target of US$ 325 billion for the current year with ease,” he maintained.

however, FIEO urges the government to fix the export target for the next three years and keep monitoring the export performance to meet the target. The Foreign Trade policy provisions are also required to be extended beyond March 31, 2014 to provide continuity and stability.

According to Ahmed, the availability of credit is a big concern for all particularly for the small and medium enterprises. The share of export credit in total exports is constantly on decline and has come down from 19 per cent to 11 per cent in last five years. “exports should be brought under priority Sector Norms

both for Indian and foreign Banks over 20 branches,” he maintained.

FIEO also recommended that the Interest Subvention Scheme should be extended to all the left-over sectors like pharma & chemicals, leather, gems & jewellery and engineering (other than 235 products).

Ahmed emphasised on aggressive marketing through an export Development fund, as suggested by Indian exporters earlier. “The initial corpus equivalent to 0.5 per cent may be provided by the government, and the annual corpus may be partially funded by the government and the rest by exporters by imposing export cess of 0.25 per cent. With a view to exploit the market opportunity gained through fTA and CeCA/CepA, the benefit under focus Market Scheme and MLfpS Scheme may be enhanced to 5 per cent, so that more and more exports take place to these countries/regions,” he observed.

Ahmed underlined that operational problems are affecting exports on a day-to-day basis, without any effective redressal in a time-bound manner. “We would like the Cabinet Secretary to head an Inter-Ministerial Committee to resolve Inter-Departmental issues affecting exports,” he added.

Import scenarioImports during August, 2013 were valued at US$ 37,053.85 million (`2,34,212.93 crore) representing a negative growth of 0.68 per cent in dollar terms and growth of 12.99 per cent in rupee terms over the level of imports valued at US$ 37,307.27 million (`2,07,278.42 crore) in August, 2012. The cumulative value of imports for the period April-August, 2013-14 was US$ 197,792.14 million (`11,46,140.26 crore) as against US$ 194,442.45 million (`10,62,866.95 crore)

Exporters PerspectiveMarket Trends

We will cross the export target of

US$ 325 billion for the current year

with ease Rafeeque Ahmed

President, Federation of Indian Export Organisation

On The Growth TrailIndian exports witness 13% fillip in August The depreciation of Indian rupee against the dollar and gradual improvement in US and Europe markets has had a direct impact on exports from India. According to the latest statistics unveiled by the Ministry of Commerce, exports from India registered double digit growth in July and August. Rafeeque Ahmed, President, Federation of Indian Export Organisation (FIEO) foresees further growth October onwards.

Documents

Cargotalk October 13