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IN 4 CARGOTALK

APRIL 2012
DEPARTMENTS
National News
DACAAI Convention 2012:
Emphasises on collaborative
approach and skill development
Uniworld and GEFCO create
single brand across Asia
Civil Aviation Minister assures
better infrastructure for air cargo
International News
Mercator provides low cost cargo
management technology
Emirates SkyCargo receives
fourth B 777 F to strengthen
global operations
Trade Opportunities
FIEO meets Belgium delegates to
explore the Gateway to Europe
Logistics Services
OM Logistics: focussing on full truck
express and air cargo
Mercurio Pallia to launch
Car Compounds to comply with
post GST regime
Cargo Performance
Airlines wise cargo performance
from Delhi International Airport for
February 2012
Airlines wise cargo performance
from Mumbai International Airport
for February 2012
Express Cargo
UPS announces to buy TNT Express
Family Albums
ACCD Annual Ball 2012
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contents
April 2012
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APRIL 2012
Opinion
The Union Budget 2012-13 has once again refrained
to take any concrete step on the much desired
implementation of Goods and Service Tax (GST).
Instead, the finance minister has announced that the
pilot programme in this regard called GST Network
(GSTN) would be implemented in August this year.
However, experts are skeptical about the possibility of
starting GSTN in August because of some ifs and buts
still remaining.
It is worth mentioning that the Constitution Amendment
Bill, a preparatory step in the implementation of GST
was introduced in the Parliament in March 2011 and
is before the Parliamentary Standing Committee. The
government is waiting for the recommendations of
the committee for drafting of model legislation for the
Centre and the state GST in concert with the states.
However, in the meanwhile, the structure of GSTN has
been approved by the empowered committee of the state
finance ministers. Hence, the finance minister is optimistic
about its implementation by August 2012.
GSTN will be set up as a National Information Utility.
According to the pilot GST programme, GSTN will
implement common PAN-based registration, returns
filing and payments processing for all States on a shared
platform. The use of PAN as a common identifier in both
direct and indirect taxes, will enhance transparency and
check tax evasion.
Interestingly, the finance ministers positive intent might
not find support from many of the state governments, who
have already raised objections against curving states own
ways of revenue generation mechanism. In addition,
there are some gray areas in regards to technicalities and
federal norms, barring the finance minister to take a firm
step on GST. The result is that the logistics industry has to
live with the existing irrational tax regime prevailing across
the country, until a common consensus is developed for
the greater interest of the country!
Rupali Narasimhan
Editor
Its GSTN,
not GST now!
DACAAI Convention 2012
Air Cargo Club of
Madras Annual Ball
Industry Events
Logistics Talent Hunt 2012: A
quest for skilled manpower
Cargo fraternity urges for
nodal point for growth
India Aviation 2012 India
will be the third largest aviation
market by 2029: ACI
Shipping & Ports
Pradeep Kumar Sinha takes
over as secretary shipping
Cochin Steamer Agents
Association urges for 30%
reduction on feeder cost
COLUMNS
Face of the Month
Ramesh Agarwal, Agarwal
Packers & Movers: Mission is to
establish Drivers Seva Kendra
View Point
Wait and Watch: The Air Cargo
Policy and its desired results
CEO Talk
National Aviation Policy needs a
strong implementation plan: IATA
Study Report
KPMG Report recommends for Air
Cargo Promotion Board
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COVER STORY
Union Budget 2012-13: Industry welcomes ECB
initiatives for strengthening logistics infrastructure
The Union Budget 2012-13, which has set the guidelines
for entering into the 12
th
five year plan, has largely been
lauded by the industry people including the logistics industry.
This years budget has been commended for its intention
of capital generation for the much needed infrastructure
building for every sector
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April 2012
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APRIL 2012
he 3
rd
Annual Conventi on
of DACAAI was attended by
a large number of domestic
cargo agents from across the
country along with several
officials from airlines, airports, terminal
operators, ministry of civil aviation and
industry experts.
The speakers included Arvind Nayak,
the then presi dent, DACAAI , Gaurav
Ghuwalewala, the then vice president,
DACAAI, M Kannan, economic advisor,
mi ni str y of ci vi l avi ati on, Vi kr am
Jai si nghani , CEO, GMR Hyderabad
International Airport, Arindam Banerjee,
global head, airport services, Jet Airways,
I vor Ll ewel l yn, CEO, Hyder abad
Menzies Air Cargo, Chitra Shinde, COO,
Gati and Sumeet Nadkar, CEO & MD, Kale
Logistics Solution.
In his keynote address Kannan stressed
the growing importance of time sensitive
domestic air cargo movement for the growth
of the countrys economy. Over the years
domestic air cargo is growing faster than
i nternati onal cargo i n Indi a, Kannan
poi nted out. He, however, underl i ned
the challenges including infrastructure,
regulatory, systems and processes, uses of IT
and skilled human resources. He urged for
collaborative initiatives from the government
and industry stakeholders to fight those
challenges. Earlier, Nayak also maintained
that the domestic air cargo industry is facing
tremendous problems owing to the lack of
appropriate infrastructure. He stated that
there is no parity of the government policies
as far as movement of domestic cargo is
concerned. According to Ghuwalewala, air
cargo is becoming expensive and facing
challenges from surface and rail mode
due to multiple handling and excessive
dwell time at the airports. Cargo handling
should be simple with proper utilisation
of modern techniques and information
technology. The process should also be
transparent. Transit time should be reduced
remarkably, he appealed.
Banerjee emphasised on the easy access
and seaml ess cargo movement to and
from the airports. In India I am sure 99
per cent of the domestic cargo is carried
by passenger airlines in the belly space.
The sooner one realises that cargo can
make a vi tal contr i buti on to r oute
profi tabi l i ty the better the chances
of survival of all such passenger airlines.
he concl uded by addi ng a cr uci al
perspective in view of the beleaguered
airlines industry in India.
National News
Indust ry Associat ions
DACAAI Convention
2012
The 3
rd
Annual Convention of the Domestic Air
Cargo Agents Association of India (DACAAI), which
was held recently in Hyderabad, discussed about
the urgent requirements of the development of air
cargo facilities both at metro as well as non metro
airports. It also emphasised on joint initiatives of
the stakeholders to bring in efficiency. Ratan Kr Paul
T
emphasises on collaborative
approach and skill development
DACAAI ELECTS NEW EXECUTIVE COMMITTEE
At the DACAAI Convention 2012 in Hyderabad the association members have
elected a new managing committee for the year 2012 and 2013.
Office bearers: Gaurav Ghuwalewala-president; Suraj Agrawal- vice
president; Amit Bajaj- general secretary; Inderjeet Sehrawat- joint secretary
and Ravijeet Sehrawat- treasurer.
Executive committee: Anand Prasad Agrawal, Hari Nair, Rajkumar Ghosh,
Sajjan Sharma, Ismail Khan and V. Raghunathan.
Arvind Nayak will be actively associated with DACAAI as immediate
past president
l bannan address|n the convent|on
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APRIL 2012
News in Brief
Supply Chain Management
EMIL-SCS meets Future
Group
ecentl y, top executi ves
at Future Suppl y Chai n
Solutions hosted a visit from
Georgi a Techs Executi ve
Masters i n I nternati onal
Logi sti cs & Suppl y Chai n Strategy
(EMIL-SCS), to discuss Future Groups
retail logistics challenges and innovations
i n I ndi a. The vi si tors i ncl uded vi ce-
presidents, directors and senior managers
of companies such as Dell, Tiffany & Co.,
LOral, UPS, etc., from USA, Canada,
Thailand and Venezuela.
Incorporated as a separate company
in 2007, Future Supply Chains is Indias
first fully integrated IT enabled end-to-
end supply chain services provider, with
expertise in managing supply chains across
categories like fashion, FMCG & food,
home, consumer durables, electronics & IT,
pharmaceuticals, automotive and general
merchandise. EMIL-SCS is an executive-
format masters degree programme offered
by Milton H. Stewart School of Industrial
& Systems Engineering at the Georgia
Institute of Technology.
discusses retail logistics
R
CARGOTALK

APRIL 2012

11
National News
Airlines
Lufthansa Cargo
ufthansa Cargo has announced
the appoi ntment of Japneet
Maki n as dedi cated offi ci al
for i ts product Cool /td for
temperature sensitive shipments
for India and the Middle East region. Makin
who has been trained in all aspects of the
product functionalities and processes.
According to the airline sources, Cool/
td targets the needs of the life science and
health care industry for airport to airport
transportation within defined temperature
limits. Under the umbrella of the Cool/td
services, Lufthansa Cargo provides a range
of additional processes, infrastructure,
information and trained personnel to enable
smooth handling of such shipments. Cool/td
offers with several variants (Cool/td-Active,
Cool/td-Passive and Cool/td & DG) a wide
option for air transport of temperature
sensitive cargo.
Makin has graduated as Mechanical
Engi neer from Del hi Uni versi ty and
also holds a Masters degree in Business
Admi ni strati on wi th speci al i sati on i n
Marketi ng from Pune Uni versi ty. Hi s
career span with Lufthansa Cargo started
in 1998 as customer service function till
2006 followed by five years as external
sales for northern India. His current tasks
include business development and would
be a l i nk between the regi onal market
and Competence Center for Temperature
Control in Frankfurt.
appoints dedicated official for Cool/td
L
Japneet lak|n
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APRIL 2012
National News
New Launch
peaki ng at the 10
th
year
cel ebr ati on pr ogr ammme
Kumar mai ntai ned that
Uni wor l d L ogi sti cs has
grown beyond the market
trend i n the l ast 3 years wi th a CAGR
of 18 per cent to become more than
US$ 100 million company.
Uniworld has created a base to take
a leap in the next five years. In future,
the focus will be mainly on automobiles,
pharma and farm fresh cold chain, fashion
retail, IT and ITEs and engineering, said
Kumar. He also maintained that tough in
freight, Uniworld is open to all sectors across
the verticals and with its specialisation in
project cargo, the company will be looking
forward to participate more in projects in
the coming years.
Kumar announced that Uniworld has
entered into collaboration with GEFCO,
a 100 per cent subsidiary of PSA Peugeot
Citroen, to create a single brand across
Asia and Europe. The aim of this brand
i s to offer a competi ti ve advantage
to gl obal customers who need a si ngl e
provider to deliver integrated solution
across the supply chain, said Kumar. He
asserted that GEFCO and Uniworld have
complementary networks and expertise
in different verticals in delivering freight
management, transportation and logistics
sol uti ons. The col l aborati on, across
the Uni worl d network i n Asi a ai ms at
bringing GEFCOs 60 years of expertise in
automotive logistics to car manufacturers
and automotive suppliers in India. Another
key area of focus i s gl obal accounts i n
Europe and Asia, he added.
He hi ghl i ghted a few areas whi ch
have been earmarked for the next 5 years.
The areas include cold chain solutions
for pharma companies and e-commerce.
With all the infrastructure and expertise
i n pl ace, we ar e al so gear ed up to
take assi gnment for compani es who
want to redesign their supply chain to
ensur e that they can make i t agi l e
and sustai nabl e to adapt to the ever
changing needs of the growing economy
of India, Kumar said.
At present Uniworld has a workforce of
more than 750 employees and 6,50,000 sq
ft of warehouse space. It has CAGR growth
of 15 per cent in its freight volumes with
an increasing client base.
Uniworld and GEFCO
On the occasion of the 10
th
year celebration of
Uniworld Logistics, M Prem Kumar, chairman
and managing director of the company unveiled
the future growth path of Uniworld. The company
started its journey in 2012 with its headquarters
in Bengaluru. It presently has 30 offices across
India as well as Asian countries. Ratan Kr Paul
S
l lrem bumar
create single brand across Asia
Blue Dart Express recently presented the inaugural Global CSR Awards. The awards
recognised corporate social responsibility (CSR) champions across various industries and
were part of the first World CSR Day. M Veerappa Moily, union minister of Corporate
Affairs, was the chief guest at this event. The World CSR Day/Global CSR Awards were
in conjunction with DHLs first Corporate Responsibility Day in India and comprised
of two panel discussions - CSR: The Way Forward and Public-Private Partnership for
a Greener Planet. Speaking on the occasion Malcolm Monteiro, SVP & area director
- South Asia, DHL Express said, As a responsible organisation, we firmly believe in
striking the right balance between economic benefits and social responsibility.
BLUE DART PRESENTS GLOBAL CSR AWARDS
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APRIL 2012
National News
Indust ry Associat ions
ccording to Singh the new
ci vi l avi ati on pol i cy wi l l
attract i nvestments and
improve infrastructure for
the air cargo operations in
India. He also maintained that the new
policy will position India among top five
markets in the world by providing access
to safe and affordable air services with a
strong regulatory framework and world
class infrastructure facilities.
Commenting on the present scenario
Narayana Rao, chairman, ASSOCHAM
commi ttee on Ci vi l Avi ati on sai d that
upgradi ng i nfrastructure, attracti ng
domestic investments and easing norms
on foreign direct investments are essential
so that the sector can grow annually by
eight per cent and raise freight traffic from
23.5 lakh tonne now to 70 lakh tonne in the
next ten years. ASSSOCHAM emphasises on
Indias potential as global trans-shipment
hub. It urges for simplification of procedures
like 100 per cent electronic approvals.
There shoul d be i nter- l i nkages
with airlines, airport operations and air
freight stations, customs, banks, clearing
house agents and other allied agencies for
greater mobility of processes. Land should
be demarcated for ai r
cargo villages at airports
or nearby regions, said
Rao. The chamber al so
r ecommends that ai r
freight stations should be
established in hinterlands
to decongest warehouse
and offset limitations of
space. They should have
facilities for palletisation,
customs examination and
X-ray screening.
ASSOCHAM highlights the facts that
the dwell time at Indian airports is 40 to
120 hours as compared to international
average of 4 to 12 hours. There is need
for establishing an air cargo promotional
board for further organi sed growth
and depl oyment of ai r car go hubs
across the country.
Civil Aviation Minister
Recently, speaking to a delegation from
ASSOCHAM, Ajit Singh, minister of Civil
Aviation reiterated that apart from the proposed
Civil Aviation Policy, the ministry will also
consider the proposal to work out a separate
air cargo policy. It is estimated that some 200
freighter aircraft will be required in the next 20
years to meet the industrys demand. CT Bureau
A
assures better infrastructure for air cargo
|lb) b Narayana bao, /j|t 8|nh, 08 bawat and /jay 8harma
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APRIL 2012
Southern Asia Ports Logis-
tics & Shipping Srilanka
April 26-27, 2012
Cinnamon Grand Colombo
Colombo, Sri Lanka
Tel.:+(60)-(3)-80235352
Transport Logistic China
June 5-7, 2012
Shanghai New International Expo
Centre(SNIEC)
Shanghai, China
Tel.:+(60)-(3)-80235352
Logistics Transport 2012
May 9-12, 2012
Helsinki Exhibition and Convention
Centre, Finland
Contact: Finnish Transport and Logis-
tics SKAL
Tel.: +358 9 4789 9336
e-mail: jari.pietila@skal.fi
CILT(UK) Annual Confer-
ence
June 13, 2012
TBA, London
The Chartered Institute of Logistics
and Transport, UK
Web site: http:/ / www.ciltuk.org.uk/
pages/ logisticsevent
Air Cargo China
5-7 June 2012
Shanghai New International Expo
Centre
Contact : Messe Mnchen GmbH
Tel.: +49 89 949-20277
e-mail: info@transportlogistic-
china.com
ACF 2012
October 2-4, 2012
Georgia World Congress Center
285 Andrew Young International Blvd.
N.W.
Atlanta, Georgia 30313-1591
Tel.: 1 786 265 7011
e-mail: secgen@tiaca.org
8th Trans Middle Esat
Bahrin 2012
November 20-21, 2012
Gulf International Convention And Ex-
hibition Centre, Kingdom of Bahrain
Tel: +60 87 426 022
e-mail: enquiries@transport
events.com
FIATA 2012 World Congress
October 8-12, 2012
Hyatt Regency Century Plaza
Los Angeles, CA
FIATA2012@vrsevents.com
Tel.: 202-373-4174
India Maritime 2012
October 17 -20,2012
Panaji, Goa, India
Contact: Federation of Indian
Chambers of Commerce and
Industry (FICCI)
e-mail: s.sundli@ficci.com; rishi.
arora@ficci.com
International News
Indust ry Associat ions / Calendar of Event s
AGM of TIACA is in
Moscow
osted by Volga-Dnepr, the
Executi ve Summi t and
AGM of The International
Ai r Cargo Associ ati ons
(TI ACA) wi l l be hel d i n
Moscow from May 23- 24, 2012. The
theme of the Summit will be Air Cargo
in the Rising Economies: East Balances
West. The event will see business leaders
from both Russia and other major global
markets di scussi ng the fast- growi ng
opportunities to do business in Russia.
Wi th sustai ned growth momentum
supported by a home market of 143 million
consumers, rich oil and gas reserves and its
imminent membership of the World Trade
Organisation (WTO) and its influential
economi es, Russi a has become one of
the most attractive destinations for air
cargo professi onal s across the worl d.
Moscow is situated midway between the
Asian and north American markets. It has
a thriving air cargo industry of its own.
The conference will explore the importance
of the Russi an ai r car go mar ket i n
the global economy.
Accor di ng to Dani el Fer nandez,
secretary General of TI ACA, Russi a i s
al ready a strong pl ayer i n the gl obal
air cargo industry and the growth and
devel opment of Vol ga- Dnepr Group
i s one of the countrys great busi ness
success stories. We believe this will be
a fascinating event for businesses already
doing business in Russia, for those that
want to enter the market and for members
of the local Russian cargo industry.
with the theme Air Cargo
in the Rising Economies
H
0an|e| lernandez
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APRIL 2012
International News
Technology
Mercator provides low
cost
er cator , par t of the
E mi r a t es Gr ou p ,
compri si ng Emi rates
Airline, dnata and their
subsi di ary compani es
and a provi der of busi ness technol ogy
sol uti ons and servi ces to the gl obal
airline industry has signed a pact to offer
technology to a LCC carrier (flydubai)
for the first time. The solution, SkyChain,
enables flydubai to fully automate its cargo
operations. In addition, flydubai has also
engaged Mercator to provi de revenue
accounti ng servi ces, usi ng RAPI D, to
process and account for cargo transactions.
This application will also enable flydubai to
automate its Cargo accounting processes,
r esul ti ng i n accur ate
calculation and analyses of
the airlines data.
Commenti ng on the
importance of the solution
Duncan Al exander, vi ce
presi dent, Mercator sai d,
The ability for an airline
to be able to capture and
anal y se accur ate and
consistent revenue records,
and to manage i ts cargo operati ons i n
an i ntegrated and paperl ess fashi on,
places it at distinct advantage amongst
its competitors. He also asserted that
the companys technol ogi es are used
to manage the passenger and cargo
operations of airlines in 79 countries and
flydubai is now the first low cost carrier
i n the worl d to i mpl ement Mercators
SkyChain product.
cargo management technology
M
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APRIL 2012
International News
New Launch
Emirates SkyCargo
receives fourth B 777 F
AirBridgeCargo
starts services
mi r ates Sky Cr ago has
further strengthened i ts
fleet size by adding one more
freighter, Boeing 777F. DAE
Capital, the aircraft leasing
division of Dubai Aerospace Enterprise
(DAE) del i ver ed to the ai r l i ne the
fourth Boei ng 777 frei ghter under a
long-term lease.
Commenti ng on thi s acqui si ti on,
Shei kh Ahmed bi n Saeed Al Maktoum,
ch ai r man an d ch i ef ex ecu ti v e,
Emirates Airline and Group said, The
arrival of this Boeing 777F is a valuable
addi ti on to our frei ghter fl eet now
comprising four Boeing 777Fs and four
Boei ng 747Fs. Thi s wi l l enabl e us to
facilitate even more international trade
between points on our expanding route
network, further consolidating Dubais
position as a global trade hub. Emirates
SkyCargo took delivery of its first Boeing
777F in early 2009.
El aborati ng on the reason behi nd
sel ecti on of Boei ng 777 the chai rman
maintained that the aircraft is the most
technol ogi cal l y advanced fr ei ghter
i n operati on, has excel l ent l ong- range
capabi l i ti es and provi des i ncreased
fl exi bi l i ty to offer customer- centri c
sol uti ons, speci al l y for the heavy and
oversized shipments.
i rBri dgeCargo Ai rl i nes
(ABC) has i ntroduced a
new cargo l i nk between
nor ther n Eur ope and
Chi na, from Hannover
Airport in Germany to Beijing via Moscow.
The new weekly Boeing 747-400 freighter
service will primarily transport engineering
and automotive parts from the industrial
region in north Germany to the far East.
The global logistics company Khne +
Nagel will be the main customer for the
new ABC operation.
Commenti ng on the new servi ces
Ludwig Hamburger, vice president and
regional director EMEA, AirBridgeCargo
Ai rl i nes sai d that the ai rl i ne
could include north Germany,
northern and northeast Europe
i n the gl obal di stri buti on of
goods through its central hub
i n Moscow. The ai rl i ne al so
recently opened new bases in
Asia at Chengdu and Zhengzhou
in addition to Beijing.
According to Klaus Jger,
a member of the management
team at Khne + Nagel, Central European
Air Freight, the company is establishing a
door-to-door product with this route. The
launch of the regular cargo link between
Hannover and Bei ji ng i s an i mportant
sign for all the logistics companies in the
region that freight traffic is becoming more
important at Hannover Airport not only
from a European point of view, but also
across Asia, he observed.
to strengthen global operations
between northern Europe and China
E
A
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& operat|ons dur|n the de||very ol a Boe|n ///
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22 CARGOTALK

APRIL 2012
gar wal acqui r ed hi s
pri mary and secondary
education at government
school , Nal wa, and di d
hi s gr aduati on f r om
Kurukshetra University. He started his
professional career in 1980 as an Airman
with Indian Air Force (IAF).
During his stint with IAF, Agarwal was
conferred with The Best Airman Award
in Chennai. From the very beginning I
wanted to work with the IAF and serve my
nation, says Agarwal.
From a defence background, Agarwal
has given a new shape to the countrys
logistics and household goods segment,
maki ng i t an establ i shed i ndustry. He
has been in the limelight for introducing
advanced packing technology and Double
Door Home Carrier in this segment that
has created a niche in the market. After
taking his VRS from IAF in 1986, Agarwal
started his new journey.
Agarwal started his career in packing
& transportati on at Hyderabad al ong
wi th hi s younger br other Raj ender
Agarwal. The company, Agarwal Packers
and Movers Ltd., soon became a leading
name in the business.
What prompted hi m to enter i nto
packi ng & movi ng busi ness? Duri ng
my tenure in the Air Force, while shifting
from Chennai to Sri nagar, I had to
face the daunti ng task of packi ng my
goods on my own. The probl ems and
trauma I had to face during my shifting
compel l ed me to start a servi ce where
peopl e coul d shi ft thei r homes wi th
complete peace of mind. When I shared
thi s i dea wi th my younger brother i t
went on to become a foundati on of a
compl ete new i ndustry i .e. packi ng
& movi ng of goods. Later on we
converted i t i nto a l ogi sti cs company
wi th total sol uti ons under one roof,
shared Agarwal.
According to Agarwal, today 88 per
cent of the industry is unorganised but it
is gradually getting organised. Once
the companies gain momentum
towards adopti ng and
adapting to the best
practices in logistics in order to remain in
the business, then sky will be the limit,
he observed.
He al so showed concer ns over
the exi sti ng i nfr astr uctur e. Our
i nfrastructure i s not compl etel y ready
to fulfill modern requirements. We need
quality warehouse, highway security force
and proper shelter at National Highways,
Agarwal viewed.
Aga r wa l emp h a s i s ed on th e
short suppl y of ski l l ed dri vers. I n hi s
opi ni on, thi s has been a seri ous i ssue.
Sav e the Drivers, Save the
I ndustr y, i s the
message that Agarwal
WWW.CARGOTALK.IN
Quiet and Firm
Ramesh Agarwal, chairman cum managing
worker, Agarwal Movers Group, and a
humble industry leader, is well known for
his social commitments with regard to
the development of domestic logistics
industry in India. Born on September 6, 1962,
in village Nalwa, district Hissar in Haryana,
Agarwal today is a man of action, vying for
discipline the industry thanks to his solid
defense background. Ratan Kr Paul
A
bamesh /arwa|
Mission is to establish Drivers Seva Kendra
Face of the Month
Ramesh Agarwal, Agarwal Packers & Movers
WWW.CARGOTALK.IN 24 CARGOTALK

APRIL 2012
wants to convey. As for trade practitioners,
they should take a pledge that no unorganised
activity will exist in the logistics industry.
There may be initial losses but then there
will be permanent relief in the long run,
he argued.
He also maintained that government
authorities should frame proper policies for
toll tax. The journey on National Highways
should be made safer and there should be a
special highway protection squad which
should be like a facilitator to the user rather
then being an authority. Goods and Service
Tax (GST) should be made applicable as
soon as possible and also the drivers job
should be given a work status, as he plays a
very important role in the logistics cycle.
Moreover the trade should be recognised
as a full fledged industry, Agarwal added.
His devotion
My vision is to make our company
a gl obal l y recogni sed corporati on that
provi des best rel ocati on and l ogi sti cs
solutions, stressed Agarwal.
I try to devote qual i ty ti me to my
childrens learning and be with them at
the dinner table whenever I come home
earl y . My area of i nterest i s readi ng
books and shari ng experi ence wi th
new, young entrepreneurs, Agarwal
informed. Agarwals emphasis has always
been on i nnovati ons waste cutti ng
and not cost cutting. He firmly believes
that unl ess the l ast man manni ng the
transport chain is happy and satisfied, the
industry cannot flourish.
Taking this forward for the development
of drivers community, a model Driver
Seva Kendra wi l l be Agarwal s next
milestone. He wants to open up Drivers
Sewa Kendra on the National Highway, at
every 150 km, for resting and other welfare
activities for drivers. Establishing logistics
parks will be next on the agenda.
Agarwal i s the Nati onal Presi dent
of All India Transporters Welfare Association
(AI TWA) and represents the transport
sector at vari ous government, non-
government national and international
agenci es. Agarwal i s al so known to
be acti ve i n soci al , educati onal and
religious activities.
My vision is to make our company a globally
recognised corporation that provides best
relocation and logistics solutions
Face of the Month
Ramesh Agarwal, Agarwal Packers & Movers
CARGOTALK

APRIL 2012

25
International News
News in Brief
c c or d i n g t o t h e JV
agreement, Gati will hold
70 per cent stake and 30 per
cent will be held by KWE in
the new company. As a part
of the transaction, Express Distribution
and Supply Chain (EDSC) business of Gati
will move into the JV company through a
business transfer agreement.
According to the Gati sources, the JV
will combine Gatis expertise in 3PL and
express distribution in India with KWEs
freight forwarding expertise and global
customer base. The JV company wi l l
support large customer base of KWE who
have operations in India, simultaneously
str engtheni ng KWEs di str i buti on
capabilities into the Indian market. The
sources also maintained that it will also
invest in high end 3PL facilities, including
temperature control l ed warehouses.
Commenting on the JV Mahendra Agarwal,
founder and CEO of Gati said, KWE is one
of the worlds leading logistics solutions
provi ders. Our partnershi p wi th thi s
company wi l l hel p us l everage KWEs
global customer base, develop world class
infrastructure capabilities, enhance our
distribution services and further strengthen
our leadership position in India.
Key Points
!\ is lor ibe express disiribuiiou aud
supply chain business
Caii io bold 70 per ceui aud |wl io
hold 30 per cent stake
|wl io iuvesi IXR 2.o77 milliou lor 30
per cent stake in joint venture
Caii esiimaies iis balauce sbeei io be
significantly deleveraged
!\ io be cousolidaied iu ibe liuaucials
of Gati
Gati and Kintetsu
World Express
In order to strengthen its global services, the
Board of Gati has approved a proposal to form a
joint venture (JV) with Japanese global logistic
company Kintetsu World Express (KWE) under
the name Gati-Kintetsu Express. CT Bureau
A
form joint venture company to offer global
express services
|lb) lahendra /arwa| a|on w|th 8antosh| lsh|zak|
|CL0 ol bwL)
lhe lrelghl lorwordlng communlly ln lndlo hos losl o veleron ond ocllve lnduslry prolesslon
ol. KL Aroro, monoglng dlreclor, Dello Alr Frelghl, possed owoy on Februory 8, 2012. Born
ol Amrllsor ln 1P3, he would be remembered lor hls remorkoble guldlng oblllly, pleoslng
personollly ond dlsclpllned woy ol llle. Corgo lnduslry would olso be lnsplred by hls dedlco
llon lor lnduslry couses ond common lnleresls. He conlrlbuled llve decodes [1P22012| lo
lhe corgo lrode. Aroro hod olwoys provlded hls voluoble llme by remolnlng os o guldonce
lorce behlnd lhe Alr Corgo Club ol Delhl [ACCD|.
KL ARCRA PASSES AVAY
bl /rora
WWW.CARGOTALK.IN 26 CARGOTALK

APRIL 2012
n hi s budget speech Pranab
Mukherjee, fi nance mi ni ster
made it clear that there should be
no room for complacency, keeping
in mind Indias growth story. We
wi l l be mi sl ed i f we i gnore the ground
realities of the world. The global crisis has
affected us, he cautioned. Indias Gross
Domesti c Product (GDP) i s esti mated
to grow by 6.9 per cent i n 2011- 12,
after having grown at the rate of 8.4 per
cent in each of the two preceding years.
Though India has been able to limit the
adverse impact of this slowdown on our
Cover Story
Budget Analysis
Union Budget 2012-13
The Union Budget 2012-13, which has set the
guidelines for entering into the 12
th
five year
plan, has largely been lauded by the industry
people including the logistics industry.
This years budget has been commended for its
intention of capital generation for the much
needed infrastructure building for
every sector. An analysis. Ratan Kr Paul
I
Industry welcomes ECB initiatives for
strengthening logistics infrastructure
bajkumar 0hoot l baleeque /hmed
lranab lukherjee a|on w|th other d|n|tar|es alter present|n the 0n|on Budet ZCZ3
CARGOTALK

APRIL 2012

27
economy, this years performance has been
disappointing. But it is also a fact that
in any cross-country comparison, India
still remains among the front runners in
economic growth.
We are now at a juncture when i t
is necessary to take hard decisions. We
have to i mprove our macroeconomi c
envi ronment and strengthen domesti c
growth drivers to sustain high growth in
the medium term. We have to accelerate
the pace of reforms and improve supply
side management of the economy, said
the finance minister.
Mukherjee underlined that the country
is about to enter the first year of the 12
th
Fi ve Year Pl an whi ch ai ms at faster,
sustainable and more inclusive growth.
The pl an has to be l aunched wi th the
Budget 2012-13. The finance minister
identified five objectives for the fiscal year
2012-13. These are: Focus on domestic
demand driven growth recovery, creating
conditions for rapid revival of high growth
in private investment, addressing supply
bottl enecks i n agri cul ture, energy and
transport sectors, parti cul arl y i n coal ,
power, national highways, railways and
civil aviation, intervening decisively to
address the probl em of mal nutri ti on
especi al l y i n the 200 hi gh- bur den
di stri cts and expedi ti ng coordi nated
implementation of decisions being taken
to improve delivery systems, governance
and transparency and addressi ng the
problem of black money and corruption
in public life.
Export Scenario
Mukher j ee poi nted out that the
developments in Indias external trade
in the first half of the current year were
encouraging. During April-January 2011-
12, exports grew by 23 per cent to reach
US$ 243 billion, while imports at US$ 391
billion recorded a growth of over 29 per
cent. Remarkably, India has successfully
achi eved di versi fi cati on of export and
import markets. The share of Asia, including
ASEAN, i n total trade i ncreased from
33.3 per cent in 2000-2001 to 57.3 per
cent in the first half of 2011-12. This has
helped the country weather the impact of
global crisis emanating from Europe and
to a lesser extent from USA.
Goods and
Service Tax
Mukherj ee al so poi nted out that
the Consti tuti on Amendment Bi l l , a
preparatory step in the implementation
of Goods and Servi ce Tax (GST) was
introduced in Parliament in March 2011
and is before the Parliamentary Standing
Committee. The government is waiting for
the recommendations of the committee. As
a result, the drafting of model legislation
for the Centre and the state GST in concert
with the states is under progress.
It may be recalled that the structure of
GST Network (GSTN) has been approved
by the empowered commi ttee of state
finance ministers. Mukherjee maintained
that GSTN would be set up as a National
Information Utility and would become
baj|v bumar 0Vb beddy
Indias GDP is estimated to grow at
6.9 per cent in real terms in 2011-12.
The growth is estimated to be 2.5 per
cent in agriculture, 3.9 per cent in
industry and 9.4 per cent in services.
There is a significant slowdown in
comparison to the preceding two
years, primarily due to deceleration
in industrial growth, more specifically
in private investment. Rising cost of
credit and weak domestic business
sentiment, added to this decline.
Taking a birds eye view of the entire
economy and keeping in mind the
difficult global environment, I expect
Indias GDP growth in 2012-13 to be
7.6 per cent, +/- 0.25 per cent.
Finance Minister
WWW.CARGOTALK.IN 28 CARGOTALK

APRIL 2012
operational by August 2012. The GSTN
wi l l i mpl ement common PAN- based
registration, returns filing and payments
processing for all the states on a shared
platform. The use of PAN as a common
i denti fi er i n both di rect and i ndi rect
taxes, wi l l enhance transparency and
check tax evasion. I solicit the support
of al l my col l eagues cutti ng across
party lines for an early passage of these
landmark legislations.
Capital
Investment
Dur i ng the year 2011- 12, the
government took a seri es of steps to
deepen the capital market and encourage
i nvestment i n the i nf r astr uctur e
sector. These steps i ncl uded rai si ng
of FI I i nvestment l i mi t i n l ong- term
i nfrastructure bonds, corporate bonds
and government securi ti es. The l i mi t
on External Commerci al Borrowi ngs
(ECB) was al so rai sed and qual i fi ed
foreign investors were allowed to invest
i n speci fi ed I ndi an mutual funds and
directly in equities.
In the Budget 2012- 13 the fi nance
minister proposed to take the next steps in
deepening the reforms in Capital market
by (a) Allowing Qualified Foreign Investors
(QFIs) to access Indian Corporate Bond
market (b) Si mpl i fyi ng the process of
issuing Initial Public Offers (IPOs) and
(c) l oweri ng thei r costs and hel pi ng
compani es reach more retai l i nvestors
i n smal l towns. To achi eve thi s, i n
addition to the existing IPO process, the
minister proposed to make it mandatory
for compani es to i ssue I POs of ` 10
crore and above i n el ectroni c form
through nationwide broker network of
stock exchanges.
Lack of adequate i nfrastructure
i s a major constrai nt on our growth.
The str ategy we have fol l owed so
f ar i s to i ncr ease i nv estment i n
i nfrastructure through a combi nati on
of public investment and Public Private
Partnerships (PPP). During the 12
th
Plan
peri od, i nfrastructure i nvestment wi l l
go up to ` 50 lakh crore. About half of this
is expected to come from private sector,
said Mukherjee.
The minister informed that for the year
2011-12, tax-free bonds for ` 30,000 crore
were announced for financing infrastructure
projects. He proposed to double it to raise
` 60,000 crore in 2012-13. This includes
` 10,000 crore for NHAI, ` 10,000 crore
for I RFC, ` 10,000 crore for I I FCL,
` 5,000 crore for HUDCO, ` 5,000 crore
for National Housing Bank, ` 5,000 crore
for SIDBI, ` 5,000 crore for ports and
` 10,000 crore for power sector.
Roads and Civil
Aviation
The Ministry of Road Transport and
Highways is set to achieve its target of
awarding projects covering a length of
7,300 km under NHDP during 2011-12.
This would be 44 per cent higher than
the best ever length of 5,082 km awarded
in 2010-11. Of the 44 projects awarded
during 2011-12, 24 projects have fetched
a premium. The finance minister proposed
to set a target of coveri ng a l ength of
8,800 km under NHDP next year. The
al l ocati on of the mi ni stry has been
enhanced by 14 per cent to ` 25,360 crore
in 2012-13.
To encourage PPPs in road construction
projects, the minister proposed to allow
ECB for capi tal expendi ture on the
maintenance and operations of toll systems
for roads and highways so long as they are
a part of the original project. The airline
i ndustry i s faci ng fi nanci al cri si s. The
high operating cost of the sector is largely
attributable to the cost of Aviation Turbine
Fuel (ATF). To reduce the cost of ATF, the
Government has permitted direct import
of ATF by Indian carriers, as actual users.
To address the immediate financing
concerns of the ci vi l avi ati on sector,
Mukherjee proposed to permit ECB for
working capital requirements of the airline
industry for a period of one year, subject
to a total cei l i ng of US$ 1 bi l l i on. He
also highlighted that a proposal to allow
forei gn ai rl i nes to parti ci pate upto 49
per cent in the equity of an air transport
undertaki ng engaged i n operati on of
scheduled and non-scheduled air transport
services is under active consideration of
the government.
Ease of Taxes
Accordi ng to the fi nance mi ni ster,
disbursement of taxes that go i nto the
export of services has been an irritant for
long. Accordingly, the finance minister has
announced a new scheme that will simplify
refunds without resorting to voluminous
documentati on or veri fi cati on. As an
added incentive, such refunds will also be
admissible for taxes on taxable services
that have been exempted.
Duty Exemption
The fi nance mi ni ster has decl ared
that full exemption from import duty on
specified equipment imported for road
construction by contractors of the Ministry
of Road Transport and Highways, NHAI
and state governments is being extended
to contracts awarded by metropol i tan
development authorities.
Accordi ng to hi m, I ndi a has the
potential for establishing itself as a hub
Cover Story
Budget Analysis
0autam /dan| /n|| bhanna
CARGOTALK

APRIL 2012

29
for third-party Maintenance, Repair and
Overhaul (MRO) of civilian aircraft. To
actualise this potential, he proposed to fully
exempt from basic customs duty parts of
aircraft and testing equipment imported
for this purpose.
Industrys
Reactions
M Rafeeque Ahmed, president, FIEO
expressed his disappointment over non-
extension of Interest Subvention Scheme
for exports particularly when there has
already been over 50 per cent increase
in interest cost for exports. Ahmed added
that he was expecting an announcement
of some firm date for GST as well which
could have given some hope to the export
sector for zero rebating so as to impart
competitiveness to export.
However, he said that the focus on
infrastructure will benefit manufacturing
as well as exports. Target of covering a
length of 8,800-km under NHDP next
year, ful l exempti on from basi c duty
provi ded to certai n fuel s for power
generati on, tax free i nfra bonds and
reduction of tax on ECBs in power, roads,
airlines will benefit the export sector. The
setting of two new mega cluster one to
cover Prakasam and Guntur districts in
Andhra Pradesh and another for Godda
and neighbouring districts in Jharkhand
and strengthening of existing ones will
boost exports of handloom textiles and
leather. The concession give to cold chain
facilities will help in backward integration
and will ensure adequate surplus of food
products for exports. The reduction of
customs duty on textile machinery like
shuttleless loom will help the sector to
withstand competition from Bangladesh,
Sri Lanka, Vietnam, Turkey.
The clarity on export of services would
reduce the litigation. Services exclusively
used for exports should form part of the
negative list of services should be notified
shortly, Ahmed suggested. The Associated
Chambers of Commerce and Industry of
India (ASSOCHAM) said the Union Budget
for 2012-13 is well-balanced and pro-
active with well-defined measure to bring
back the economy on higher growth track.
Despite current economic situation
coupled with domestic political compulsions
and challenges like elevated inflation, the
government has tried to tread the path of
fiscal consolidation with prudent macro-
management, sai d Rajkumar Dhoot,
president, ASSOCHAM.
The Budget attempts to i mprove
subsidy deliveries with direct transfers to
bank accounts for targeted distribution.
I t al so emphasi ses the need for fresh
i nvestments for capaci ty creati on and
i nfrastructure bui l di ng on the PPP
model. It enlarges the scope for external
commercial borrowings in several areas
i ncl udi ng ci vi l avi ati on. Thi s shoul d
encourage flow of funds from overseas in
key infrastructure sectors, said Dhoot.
Rajiv Kumar, secretary general ,
FICCI, also added that there has been
no revival of investment allowance, no
restoration of tax exemption on dividend
income or capital gains for infrastructure
capi tal fund/company and no hi ke i n
the depreci ati on rate. These had been
expected as fi scal steps for i mprovi ng
i nvestment. However, the reducti on
in withholding tax on interest payable
on External Commerci al Borrowi ngs
(ECBs) in certain sectors and extension
of concessi onal tax treatment on the
repatriation of overseas dividends, are
indeed welcome features. The raising of
the ECB limit for infrastructure sector will
also encourage investment in the sector.
According to GVK Reddy, chairman
and managing director GVK Power &
Infrastructure, the Budget 2012-13 is a
balanced budget during the challenging
times. It is positive, broad-based and
an inclusive budget that endeavours to
address crucial reforms for development.
Overall, the budget is growth-oriented and
aimed at sustaining the growth impetus
seen in 2011, while giving main emphasis
to sectors such as agriculture and industry.
This, according to me is integral to support
Indias development ambitions in the long
term, said Reddy.
Gautam Adani, chai rman, Adani
Group, mai ntai ned that the budget i s
close to realism and still exudes cautious
optimism. The finance minister has made
1ushar Jan| /mber 0ubey
J br|shnan 8ush|| J|warajka
WWW.CARGOTALK.IN 30 CARGOTALK

APRIL 2012
candid statement on fiscal situation and
clearly articulated directional intent on
containing the subsidy. Tax concession
for retail participation in equity market
will broaden retail equity participation.
Eligibility for viability gap funding is
extended to wider set of projects. This
wi l l boost i nfrastructure i nvestment
i n several areas hi therto non- vi abl e
for private sector, he said.
He also pointed out that the reduction
in withholding tax from 20 per cent to 5
per cent on ECBs would enhance ECB flow
to the infrastructure projects.
According to Anil Khanna, managing
di rector, Bl ue Dart Express, from a
logistics perspective, the decision to boost
the road infrastructure with 8,800 km
of roads being added during the coming
fiscal is noteworthy. The proposal to allow
domestic carriers access to ECBs up to US$
1 billion for a period of one year and active
consideration of allowing 49 per cent equity
participation by foreign airlines, will give
some respite to the cash-strapped aviation
sector. Also, with direct import of ATF by
airlines termed as end user consumption
there has been some much needed relief
fr om state VAT whi ch r anges fr om
3 to 33 per cent.
Sushil J iwarajka, pr esi dent,
Infrastructure and Logistics Federation
of India (ILFI) said that the Budget has
a strong i nfrastructure focus. 100 per
cent increase in tax free bonds committed
to fi nanci ng i nfrastructure projects,
relaxation of viability gap funding under
the scheme for support to PPP encouraging
external commercial borrowing (ECB)
for capi tal expendi ture for roads and
highways, airline industry, etc. would go
a long way in toning up the infrastructure
sector.
However, he fel t that the much-
awai ted proposal of al l owi ng forei gn
airlines to participate upto 49 per cent
in the equity of an airport undertaking
should have been announced in the budget
rather than postponing it to a future date.
The ai rl i ne i ndustry i n Indi a i s at
very l ow ebb and a fi nanci al support
would have eased the pain for this vital
sector. The budget to some extent has
belied the expectations of the industry.
We natural l y l ooked forward to have
the roll out of Direct Tax Code and GST
in the budget announcement. However,
given the current political environment
there was not much leeway for the finance
minister, maintained Jiwarajka.
In hi s opi ni on, GST needs a strong
infrastructure backbone and it is not very
clear whether the government can put in
place a system before the cut off date for
the launch of the GST by August 2012,
as mentioned in the budget speech by the
finance minister.
He also pointed out that increase in the
service tax rates from 10 to 12 per cent and
bringing in all services in the service tax
net barring the 17 items in the negative
list will adversely affect the savings of the
household sector.
J Kri shnan, i mmedi ate past
president, ACAAI lauded ECBs initiative
to meet working capital needs of domestic
ai rl i nes. He al so commended vi abi l i ty
gap fundi ng extended to warehousi ng
and CFS, i ntroducti on of
advance pricing arrangements
f or tax cer tai n ty an d
simplified service tax refund
mechani sm for exporters.
However, Krishnan expressed
some ar eas of concer ns
that i ncl ude i ncr ease of
indirect taxes increase and
no fi xed ti me fr ame for
GST i mpl ementati on and
concerns about negative list
in service tax.
Amber Dubey, director,
Aviation, KPMG opined that
it is very positive that 49 per
cent FDI for foreign airlines
is under active consideration
of the fi nance mi ni ster .
This is good news. Though,
the industry was expecting
that this to be announced as
accepted policy, he said.
He also hailed the ECB
announcement. According to
him, allowing an ECB limit of
USD one billion for working
capi tal for ai r l i nes i s a
welcome gift from the finance
mi ni ster . Pr el i mi nar y
esti mates are that thi s may save 150-
300 basis points for working capital loans
for airlines. Key challenges would be the
banks reluctance to lend to the sector and
the hedging costs, he said.
The finance minister expects Indias
global trade to grow. This will be good
for the air cargo sector, which expects
new- ri se sectors l i ke mobi l e phones,
el ectroni cs, automoti ve, pharma and
perishables to be the key growth drivers,
Dubey added,
In conclusion Tushar Jani, chairman,
SCA Gr oup of compani es ter med
the budget a Neutral Budget. According
to hi m, wi thi n hi s ambi t the fi nance
ministers efforts are welcome in respect
of the development of logistics industry in
the countr y, especi al l y for por ts,
airports, ICDs and AFSs. He appeared to
be optimistic that the budget proposals
on the negati ve l i st of ser vi ce tax
and ECB programme for the benefi t
of i nfrastructure devel opment woul d
pave the way for a new journey.
Statement about ownership and other particulars about newspaper
CargoTa|| lo oe puo||sred |r lre lrsl |ssue every year aller lre
|asl day ol Feoruary
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New Delhi - 110001
2. Per|od|c|ly ol |ls puo||cal|or : Vorlr|y
3. Pr|rler's Nare : 3arJeel
Nal|ora||ly : lrd|ar
Address : Z2, Todarra| Road,
New Delhi - 110001
1. Puo||srer's Nare : 3arJeel
Nal|ora||ly : lrd|ar
Address : Z2, Todarra| Road,
New Delhi - 110001
5. Ed|lor's Nare : Rupa|| Naras|rrar
Nal|ora||ly : lrd|ar
Address : Z2, Todarra| Road,
New Delhi - 110001
. Nare ard address ol |rd|v|dua|s : 3arJeel,
Wro oWr lre reWspaper ard Z2, Todarra| Road
partners or shareholders holding New Delhi - 110 001
rore lrar ore percerl ol lre
total capital
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lo lre oesl ol ry |roW|edge ard oe||el.
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Cover Story
Budget Analysis
CARGOTALK

APRIL 2012

31
Trade Opportunities
Export and Import
he seminar was addressed by
Pierre Vaesen, ambassador of
Belgium to India, Ajay Sahai,
di rector general & CEO,
FIEO and P Ratna Rao, vice
president, BLBA. Besides, senior global
logistics experts from Belgium Ports like
Antwerp, Zeebrugge and Liege and a large
number of senior representatives from
leading SMEs and logistics companies were
also present at the seminar.
Speaking at the seminar, Vaesen said,
Belgium is located at the very centre of
purchasing power in Europe and acts as
the access gate to Europe for Indian goods.
He invited Indian companies looking to
invest in Belgium, which is the fourth largest
recepient of FDI, to make use of the new
trade and opportunities as the Broad-based
Trade and Investment Agreement between
India and EU will be concluded by the
end of this year.
Ajay Sahai observed that EU i s an
important trading partner of India and as a
region EU is one of Indias largest trading
partner in the world. Indias trade with EU
grew at a CAGR of over 15 per cent during
the last decade from US$ 21 billion in 2000-
01 to over US$ 91 billion in 2010-11.
He hi ghl i ghted that today, EU has
a share of nearly 15 per cent in Indias
total trade of US$ 620 billion. Although,
the growth of trade has been sluggish in
comparison with Indias trade with regions
like LAC, West Africa and WANA where
Indian trade recorded a CAGR of over 30
per cent in the last decade, but the trade
consi stency and ri si ng trade vol umes
between India and EU brings back the
confidence for a deeper trade partnership
between the two in future.
FIEO meets
Belgium delegates
Recently the Belgium Embassy, in association
with Federation of Indian Export Organisations
(FIEO) and Belgian-Luxembourg Business
Association (BLBA), has organised a seminar
in New Delhi to focus on the scope and
opportunities being offered by Begium to
Indian exporters. CT Bureau
T
to explore the Gateway to Europe
/jay 8aha| speak|n at the sem|nar
EUROPE-INDIA
OPPORTUNITIES
Europe today is a continent
undergoing tremendous changes
Impact on society of
globalisation; immigration is
huge
Indian industry is faced with
continuous high internal growth
and yet it is ambitious to become
a global player
The wind is blowing more and
more from the East in Europe
Countries, regions and private
industries should be prepared for
this new global trend
Belgium is ready to
welcome India
Belgium is at the heart of Blue
Banana and surrounded
by airports
Belgium is an ideal location from
where whole of the European
market can be served
Setting up strategic partnership
in Europe is the key to success for
Indian companies
WWW.CARGOTALK.IN 32 CARGOTALK

APRIL 2012
oon th e comp an y wi l l
i ntroduce ful l truck l oad
expr ess ser vi ces and put
mor e emp h asi s on ai r
cargo traffic for the domestic
as well as international markets.
Akash Bansal, head logistics, Om Group
informed that the company is now gearing
up to cope up with the present market
trends and future challenges. He appeared
to be bullish about the companys success
of attaining the groups turnover target of
` 1,000 crore plus by 2014. At present Om
Groups turnover is ` 850 crore per annum
and Om Logistics contribution in the total
turnover is ` 600 crore.
According to Bansal, Om Logistics, the
flagship company of Om Group, has been
instrumental in providing innovative and
value added solutions for Indian corporate
and multinationals. It has been primarily
deal i ng wi th the automobi l e i ndustry
and has pi oneered
i n transportati on,
war ehousi ng and
l ogi sti cs support to
the sector.
Howev er , the
company is now all
set to offer services to
other segments as well.
In Bansals opinion,
through its innovative
and cost sav i ng
methods, Om Logistics
has consi stentl y
added v al ue f or
its customers, which
can be complimented
by its competence.
Presentl y, our
aim is to offer fast and
cost effective services
for our customers, to
make their bottom-
line solid. We should
keep it in mind that
despite our input cost
is increasing day by
day, we cannot pass
it onto our customers.
Rather we shoul d
introduce innovative
logistics methods for win-win benefits,
explained Bansal.
Elaborating further on the innovative
methods Bansal mai ntai ned that Om
Logistics is using its assets (eg. trucks) at
the optimum level by creating new means
of delivery, hub and spoke network, proper
uti l i sati on of space i n both ways and
efficiently managing the whole operation.
We do regular analysis about the fault
l i nes, trai n operati onal staff i ncl udi ng
dri vers, so that they can manage the
cargo operation skillfully and add value,
shared Bansal . He al so i nformed that
Om Logistics cargo operation is completely
IT enabled and trucks are GSM-based
GPS connected.
Currentl y the company has 3,000
plus trucks plying across the country to
connect more than thousand destinations
all over the country. It has 446 own offices
in India. Besides, it has its own offices in
New York, Toronto and Shanghai apart
from representative offices in Thailand
and Japan. The company is also planning
to open offices in Detroit (USA) and Dubai
in the near future.
OM Logistics
Om Logistics has decided to enhance its
product range by adding more express services
in its content. Ratan Kr Paul
S
focussing on full truck express and air cargo
/kash Bansa|
Logistics Services
New Init iat ives
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APRIL 2012
Cargo Performance
Import / Export
DELHI INTERNATIONAL AIRPORT CARGO DEPARTMENT,
IGI AIRPORT, NEW DELHI
(AI RLI NE-WI SE I MPORT/ EXPORT CARGO PERFORMANCE
FOR THE MONTH OF FEBRUARY 2012)
All wt. in mt.
Export(MTs) S. No.
Export
Perishable
Cargo (MTs)
Export
(with Peri.)
(UPL)(MTs)
Import
Total
Cargo
%
of Total
## Cargo Handled at Centre for Perishable Cargo
1 Jet Airways 1175 285 1460 1725 3185 11.25%
2 Cathay Pacific 812 6 818 1421 2239 7.91%
3 Emirates 685 894 1579 383 1962 6.93%
4 Air India ................................ 404 ............. 379 .............. 784 ..............772 ..............1556 ......... 5.50%
5 British Airways 732 39 770 734 1505 5.31%
6 Singapore Airlines 602 28 631 647 1277 4.51%
7 Lufthansa Cargo Airline 550 18 568 603 1172 4.14%
8 Fedex Express Corpation 834 33 868 278 1146 4.05%
9 Thai Airways 182 48 229 822 1052 3.71%
10 Kingfisher Airlines Ltd. ............ 343 ...............30 .............. 373 ..............507 ............... 880 ......... 3.11%
11 Etihad Airways 488 28 516 298 814 2.88%
12 Qatar Airways 429 125 554 211 765 2.70%
13 Swiss World Cargo(India) 437 27 464 221 685 2.42%
14 Malaysian Airline System 239 82 321 352 673 2.38%
15 Turkish Airlines 484 27 511 107 618 2.18%
16 Virgin Atlantic ................................335 .................... 0 .................. 335 .................213 ...................548 ............1.94%
17 Uzbekistan 332 33 365 182 547 1.93%
18 Air France 341 18 360 174 533 1.88%
19 Finnair 321 9 330 184 513 1.81%
20 KLM 242 45 288 177 465 1.64%
21 Aerologic 67 0 67 296 363 1.28%
22 Austrian Airlines .............................183 .................. 15 .................. 198 .................154 ...................352 ............1.24%
23 Air Asiax 156 12 168 164 332 1.17%
24 Saudia 141 151 292 22 313 1.11%
25 Japan Airlines 61 2 63 243 306 1.08%
26 Air China 207 2 209 90 299 1.06%
27 American Airlines Cargo 172 2 174 102 276 0.97%
28 Aeroflot Cargo Airlines 129 25 155 70 224 0.79%
29 China Air ..........................................95 .................... 1 .................... 96 .................123 ...................219 ............0.77%
30 China Eastern Airlines 71 3 74 132 206 0.73%
31 Continental Airlines 123 4 126 41 168 0.59%
32 Eva Air 42 7 49 85 134 0.47%
33 Gulf Air 115 14 129 2 131 0.46%
34 Ariana Afghan Airlines 81 1 81 49 130 0.46%
35 Blue Dart 122 0 122 5 127 0.45%
36 Kuwait Airlines .................................33 .................. 71 .................. 104 .................. 18 ...................122 ............0.43%
37 Sri Lankan Airlines Ltd 54 4 58 33 90 0.32%
38 Mahan Air 75 5 80 10 90 0.32%
39 Air Mauritius 50 22 72 2 73 0.26%
40 Aerosvit 45 6 52 12 63 0.22%
41 Oman Air 55 6 61 2 63 0.22%
42 Air Arabia .........................................56 .................... 1 .................... 57 .................... 1 .....................58 ............0.21%
43 Ethopean Airlines 8 4 12 36 48 0.17%
44 China Southern Airlines 25 0 25 20 45 0.16%
45 Asiana Airlines 19 0 19 22 41 0.14%
46 Air Astana 30 1 30 2 32 0.11%
47 Pakistan International ........................ 5 .................... 2 ......................7 .................. 12 .....................20 ............0.07%
48 Turkmenisthan Airlines 8 9 17 0 17 0.06%
49 Royal Jordanian Airlines 8 0 8 2 10 0.03%
50 Jetlite 3 2 6 0 6 0.02%
51 Druk Air 1 0 1 0 1 0.00%
52 Deccan Express Log .......................... 0 .................... 0 ......................0 .................... 0 ...................... 0 ............0.00%
53 Indian Airlines 0 0 0 0 0 0.00%
54 Royal Nepal Airlines 0 0 0 0 0 0.00%
55 MIS 880 16 896 921 1817 6.42%
Total 13086 2544 15630 12683 28313 100.00%
Cargo handled in February11 14396 2251 16647 12980 29627
% VARIATION 13.00% -6.11% -2.29% -4.64%
Airlines
CARGOTALK

APRIL 2012

35
MUMBAI CSI AIRPORT
EXPORT/ IMPORT CARGO TONNAGE HANDLED
I N FEBRUARY 2012
WEIGHT IN TONNES
Airlines S. No.
Export
General
Export
Perishable
Total
Export
Import
Total
Exp+Imp
(Including TP Cargo)
1 Jet Airways 1311.39 968.40 2279.79 2357.23 4637.02
2 Emirates 1187.62 1325.06 2512.68 843.06 3355.74
3 Air India 748.09 1517.08 2265.17 692.93 2958.10
4 Lufthansa ..................................... 496.03 ............. 467.61 ............. 963.64 .............1453.78 ...........2417.43
5 Cathay Pacific 820.68 36.15 856.83 1260.37 2117.20
6 Singapore Airlines 687.85 177.88 865.73 940.74 1806.46
7 British Airways 747.26 412.95 1160.21 630.32 1790.53
8 Etihad Airways 710.72 33.33 744.05 498.80 1242.85
9 Air France 344.56 183.17 527.73 465.01 992.75
10 Kingfisher Airlines ...................... 326.62 ...............31.89 ............. 358.51 .............. 609.53 .............968.04
11 Qatar Airways 226.42 345.03 571.45 329.81 901.26
12 Swiss Intl. Airlines 306.32 131.82 438.14 440.22 878.36
13 Turkish Airlines 398.45 66.85 465.30 276.21 741.51
14 Thai Airways 210.17 126.18 336.35 401.57 737.92
15 Federal Express 363.89 107.96 471.84 258.51 730.36
16 Malaysian Airlines ....................... 376.16 ...............39.38 ............. 415.54 .............. 263.51 .............679.05
17 Ethopian Airlines 574.10 12.92 587.02 7.55 594.57
18 Saudi Arabian Airlines 323.04 74.13 397.17 122.09 519.26
19 UPS 88.23 5.87 94.10 273.00 367.11
20 Korean Air 181.16 31.90 213.05 30.60 243.66
21 Kuwait Airways 69.47 155.54 225.01 14.91 239.92
22 Qantas 103.22 4.65 107.87 131.93 239.80
23 Air Cargo Germany.........................0.00 .................0.00 ................. 0.00 .............. 229.48 .............229.48
24 Delta Airlines/ KLM 61.08 15.20 76.28 148.36 224.65
25 Kenya Airways 214.08 0.00 214.08 7.74 221.82
26 South African Airlines 196.58 2.37 198.95 11.73 210.68
27 Oman Air 100.44 85.18 185.62 1.03 186.65
28 Austrian Airlines 0.00 9.68 9.68 176.90 186.58
29 Gulf Air 52.31 129.78 182.09 1.73 183.82
30 Charters ..........................................0.00 .................0.00 ................. 0.00 .............. 156.07 .............156.07
31 Continental Airlines 69.30 1.80 71.10 81.92 153.02
32 EL-AL Airlines 48.34 1.93 50.27 81.91 132.18
33 Blue Dart 78.05 0.00 78.05 51.39 129.44
34 Air Mauritius 120.08 0.33 120.41 5.98 126.39
35 Fin Air 112.90 9.02 121.93 0.00 121.93
36 Indigo Air ...................................... 50.65 ...............26.02 ............... 76.68 ................ 38.62 .............115.29
37 Air Arabia 25.88 82.17 108.05 0.94 108.99
38 Srilankan Air 63.12 4.62 67.74 23.36 91.10
40 Bangkok Airways 67.28 0.48 67.76 3.61 71.37
41 Pakistan Airways 24.56 32.77 57.33 12.06 69.40
42 Yemenia Airways ........................... 28.33 ...............10.73 ............... 39.06 .................. 0.82 ...............39.89
43 Iran Air 18.06 8.66 26.72 1.36 28.08
44 Baharin Airlines 26.27 0.00 26.27 0.00 26.27
45 Egypt Air 16.48 0.80 17.29 1.06 18.35
46 Royal Jordanian Airways 7.32 0.80 8.12 0.63 8.74
47 NorthWest Airlines ..........................0.00 .................0.32 ................. 0.32 .................. 0.00 ................ 0.32
48 Airasia 0.00 0.00 0.00 0.00 0.00
49 Jade Cargo 0.00 0.00 0.00 0.00 0.00
50 Others 35.90 86.92 122.81 751.21 874.02
Cargo Handled in January12 11320.49 6922.75 18243.24 13808.82 32052.06
EXPORT/ IMPORT CARGO TONNAGE HANDLED
I N J ANUARY 2012
GRAND TOTAL 12018.47 6765.35 18783.81 14089.58 32873.40
WWW.CARGOTALK.IN 36 CARGOTALK

APRIL 2012
Cargo Performance
Indian Airport s
TRAFFIC STATISTICS
I NTERNATI ONAL FREI GHT
(A) 11 International Airports
1 Chennai 23131 25264 -8.4 211412 223179 -5.3
2 Kolkata 3411 3822 -10.8 34216 33879 1.0
3 Ahmedabad 936 1068 -12.4 9046 10211 -11.4
4 Goa 343 330 3.9 1417 1410 0.5
5 Trivandrum 4341 2912 49.1 33854 28930 17.0
6 Calicut 1959 1622 20.8 18235 15822 15.3
7 Guwahati 0 0 - 0 0 -
8 Jaipur 6 13 -53.8 161 359 -55.2
9 Srinagar 0 0 - 0 0 -
10 Amritsar 774 275 181.5 5170 3765 37.3
11 Portblair 0 0 - 0 0 -
Total 34901 35306 -1.1 313511 317555 -1.3
(B) 6 JV International Airports
12 Delhi (Dial) 29101 30128 -3.4 279200 292774 -4.6
13 Mumbai (Mial) 38182 38229 -0.1 355888 351041 1.4
14 Bangalore (Bial) 12236 11893 2.9 105693 98760 7.0
15 Hyderabad (Ghial) 3782 3476 8.8 33156 31171 6.4
16 Cochin (Cial) 2468 2390 3.3 27002 23954 12.7
17 Nagpur (Mipl) 53 31 71.0 288 237 21.5
Total 85822 86147 -0.4 801227 797937 0.4
(C) 11 Custom Airports
18 Pune 0 0 - 0 0 -
19 Lucknow 44 9 388.9 575 447 28.6
20 Coimbatore 32 18 77.8 347 284 22.2
21 Mangalore 0 0 - 0 0 -
22 Patna 0 0 - 0 0 -
23 Trichy 92 94 -2.1 1633 1319 23.8
24 Bagdogra 0 0 - 0 0 -
25 Chandigarh 0 0 - 0 0 -
26 Varanasi 0 0 - 1 0 -
27 Madurai 0 0 - 0 0 -
28 Gaya 0 0 - 0 0 -
Total 168 121 38.8 2556 2050 24.7
(D) 18 Domestic Airports 0 6 - 0 76 -
(E) Other Airports 0 0 - 0 0 -
Grand Total (A+B+C+D+E) 120891 121580 -0.6 1117294 1117618 0.0
December
2011
For the Month
Freight (in Tonnes)
For the period April to December
S. No. December
2010
%
Change
2011-12 2010-11
%
Change
Airport
Etihad Airways, along with its Unit Load Device (ULD) partner Jettainer, has embarked
on a program to replace 3,000 containers from the original aluminium ULD fleet with
environmentally friendly lightweight versions. The new lightweight containers are
manufactured from a range of composite materials including Kevlar, the material used
in making bullet-proof jackets.
This composite is tougher and much lighter with an average weight saving of 17kg per
ULD or over 200kgs per average wide-bodied flight. This weight reduction will lower
fuel consumption, costs and CO2 emissions. It is estimated that the implementation of
the new containers will cut emissions by approximately 5,000 tons in 2012.
According to David Kerr, vice president cargo, Etihad Airways, The introduction of these lightweight units into our cargo operations is
evidence of our innovative approach to sustainable logistics and ensures that our cargo services remain among the best in the world.
ETIHAD INTRODUCES LIGHTWEIGHT CARGO CONTAINERS
CARGOTALK

APRIL 2012

37
Express Cargo
Current Development
Mergers & Acquisitions
nited Parcel Service(UPS)
h a s d eci d ed t o b u y
Netherl ands- based TNT
Express for $6.77 billion in
a cash deal. The deal was
unveiled at a press conference in Amsterdam.
UPS i s consi dered as the worl ds
l argest del i very company, whi l e TNT,
headquartered in Hoofddorp, Netherlands,
is considered as the second-biggest express
mail company in Europe behind Germanys
DHL. According to the company sources, the
combination will have 4,75,000 employees
worldwide and increase UPSs international
sales to around 36 per cent of its total from
26 per cent at present.
Commenti ng
on w h y U PS
wants to expand
i n Eur ope at a
time the continent
is facing economic
hardshi p due to
debt cri si s, Kurt
Ku e h n , c h i e f
financial officer,
UPS said, It shows
the companys long-standing commitment
to Europe. He also maintained that the
deal will add to earnings per share in the first
year and that by 2015 the companies will
save at least Euro 440 million annually from
combining operations, including air fleets, as
well as software and logistics systems. The
deal wi l l now have to wai t for the
regul atory approval . However, UPS
has decl ar ed that i t woul d awar d
TNT Euro 200 million if the deal fails to win
regulatory approval.
UPS announces to buy TNT Express
U
WWW.CARGOTALK.IN 38 CARGOTALK

APRIL 2012
Cargo Performance
Indian Airport s
TRAFFIC STATISTICS
DOMESTI C FREI GHT
(A) 11 International Airports
1 Chennai 7104 8180 -13.2 63404 70219 -9.7
2 Kolkata 6970 7501 -7.1 61984 63748 -2.8
3 Ahmedabad 1454 1388 4.8 11173 11466 -2.6
4 Goa 447 452 -1.1 2990 3076 -2.8
5 Trivandrum 132 105 25.7 1015 1177 -13.8
6 Calicut 13 9 44.4 143 238 -39.9
7 Guwahati 557 598 -6.9 6234 6588 -5.4
8 Jaipur 530 763 -30.5 4971 6271 -20.7
9 Srinagar 185 175 5.7 1836 1469 25.0
10 Amritsar 6 10 -40.0 63 147 -57.1
11 Portblair 252 203 24.1 1751 1708 2.5
Total 17650 19384 -8.9 155564 166107 -6.3
(B) 6 JV International Airports
12 Delhi (Dial) 18013 18052 -0.2 149768 155006 -3.4
13 Mumbai (Mial) 16407 18317 -10.4 143794 150432 -4.4
14 Bangalore (Bial) 7371 7846 -6.1 62861 66584 -5.6
15 Hyderabad (Ghial) 2993 3432 -12.8 26087 27586 -5.4
16 Cochin (Cial) 801 616 30.0 6369 6548 -2.7
17 Nagpur (Mipl) 418 355 17.7 3609 8012 -55.0
Total 46003 48618 -5.4 392488 414168 -5.2
(C) 9 Custom Airports
18 Pune 2316 2307 0.4 17237 21282 -19.0
19 Lucknow 291 317 -8.2 2934 2478 18.4
20 Coimbatore 569 571 -0.4 5613 4896 14.6
21 Mangalore 24 18 33.3 204 226 -9.7
22 Patna 271 299 -9.4 2728 2507 8.8
23 Trichy 0 0 - 0 0 -
24 Bagdogra 171 108 58.3 1230 832 47.8
25 Chandigarh 219 90 143.3 1396 367 280.4
26 Varanasi 28 55 -49.1 274 333 -17.7
27 Madurai 77 59 30.5 595 410 45.1
28 Gaya 0 0 - 0 0 -
Total 3966 3824 3.7 32211 33331 -3.4
(D) 20 Domestic Airports
29 Bhubaneswar 165 245 -32.7 1679 2053 -18.2
30 Indore 386 441 -12.5 3731 4117 -9.4
31 Agaratala 516 574 -10.1 5301 5311 -0.2
32 Visakhapatnam 44 56 -21.4 698 583 19.7
33 Jammu 105 164 -36.0 873 1071 -18.5
34 Vadodara 240 209 14.8 1620 1586 2.1
35 Imphal 299 479 -37.6 3896 4447 -12.4
36 Raipur 249 200 24.5 2102 1773 18.6
37 Udaipur 0 0 - 0 0 -
38 Ranchi 145 122 18.9 1281 909 40.9
39 Bhopal 70 118 -40.7 618 891 -30.6
40 Aurangabad 102 145 -29.7 985 1540 -36.0
41 Leh 136 137 -0.7 1100 1106 -0.5
42 Rajkot 75 85 -11.8 549 736 -25.4
43 Dibrugarh 34 23 47.8 246 219 12.3
44 Jodhpur 7 2 250.0 37 16 131.3
45 Tirupati 3 0 - 24 6 300.0
46 Silchar 34 50 -32.0 419 357 17.4
Total 2610 3050 -14.4 25159 26721 -5.8
December
2011
For the Month
Freight (in Tonnes)
For the period April to December
S. No. December
2010
%
Change
2011-12 2010-11
%
Change
Airport
(E) Other Airports 122 94 29.8 1125 1007 11.7
Grand Total 70351 74970 -6.2 606547 641334 -5.4
(A+B+C+D+E)
CARGOTALK

APRIL 2012

39
Logistics Services
Get Toget her
t may be r ecal l ed that Atl as
Logistics became a member of the
Japanese company, SBS Group,
by the way of the acquisition of 80
per cent of issued shares in Atlas
Logistics in October 2011. SBS Group
looked at this acquisition as a part of its
long-term strategy to substantially capture
overseas market in logistics. The group
expects to make inroads into the Asian
market and become an international third-
party logistics business group.
The Japanese group also has plans to
provide their know-how and expertise in
land transportation, warehouse business
and third-party logistics services to all
Atlas Logistics Group members globally.
In just a few months ti me we are
well on our way to reap full rewards of the
acquisition. During the short period since
the formation of the new entity we have
successfully created an environment that is
extremely conducive to reap wide-ranging
benefits, said Rao.
Kamata maintained that since in Japan,
the economic growth is currently sluggish,
Japanese compani es are conti nuousl y
movi ng thei r busi ness bases to other
countri es such as Asi a. I was al ways
thi nki ng about enteri ng the overseas
business in order to earn 20-30 per cent
of our total sales from the international
l ogi sti cs acti vi ti es by consi deri ng the
current situation in Japan. Especially, I
believe the Indian market is one of the
most important by following the economic
growth of China, he said.
Rao, however, expressed concerns over
the present infrastructure, which creates
hindrances for the logistics industry in the
country. Indias logistics infrastructure
is lagging behind when compared to the
global standards. To make the sector more
vibrant and cost-effective, infrastructure
projects need to be given a boost besides
encour agi ng pr i vate par ti ci pati on
i n i nf r astr uctur e dev el opment,
mai ntai ned Rao. Accordi ng to hi m, as
of now the sector is handicapped by the
l ack of faci l i ti es for i nterconnecti vi ty
and integrating business processes with
sophisticated technologies.
Atlas Logistics Global
Meet 2012
Recently, Atlas Logistics organised its Global
Meet in Goa. Along with the company officials,
Digambar Kamat, the then chief minister of Goa,
Pramod Kamat, law secretary, Goa and several
customers attended the gracious event, which
was addressed by Venkatesh Rao,chairman &
managing director, Atlas Logistics and Masahiko
Kamata, president, SBS Holdings. CT Bureau
I
SBS Group focusses on
India to offset slowdown in Japan
WWW.CARGOTALK.IN 40 CARGOTALK

APRIL 2012
ercurio Pallia is all set
for a great leap forward
in the near future. The
recent developments in
the company and the
countrys economy as a whole, has made
Vipul Nanda confident enough to chalk
out some ambitious projects, to ensure
25 per cent year-on-year growth for the
next coupl e of years. Wi th more than
50 years of experience in the transport
logistics domain, Pallia Transport has now
its own niche in the automobile logistics
arena. The company formed a 50: 50
joi nt venture company wi th an Ital i an
partner, Mercuri o, i n 2009. Mercuri o
has global dominance in the automotive
logistics sector and is expected to make
a difference in the automobile logistics
business in India. Significantly, recently
Mercurio has tied-up with another logistics
major in the world, viz Gefco Group, by
offloading 70 per cent stake to it. As a
result, the takeover will have an impact
on the services of Mercurio Pallia, both in
domestic market at present as well as the
proposed international expansion plans.
Gefco Group, is a worldwide automotive
Logistics Services
New Init iat ives
Mercurio Pallia to launch
Car Compounds
Mercurio Pallia Logistics, the 50:50 joint
venture company between Pallia Transport
Logistics and Gruppo Mercurio SPA, is planning
big for the financial year 2012-13. With a target to
grow by 25 per cent, as compared to the previous
financial year, Vipul Nanda, managing director,
Mercurio Pallia, unveiled the growth plans in an
interview with Cargotalk. Ratan Kr Paul
M
V|pu| Nanda
to comply with post GST regime
CARGOTALK

APRIL 2012

41
logistics provider with a global turnover
of Euro 3.5 billion.
Automobi l e transportati on i s the
core function of Mercurio Pallia. In the
financial Year 2012-13, the company is
expecting at least 25 per cent increase in
business. The year 2011-12 witnessed
several challenges, like tsunami in Japan,
strikes in Maruti and high rate of interest.
These factors are now no more affecting
the automobile logistics. This sector will
see a significant growth in 2012-13, said
Nanda confidently.
In addition, thanks to the infrastructure
strength and the combined experience of
Mercurio Pallia and Gefco, there would
be a consol i dati on i n the market, i .e,
more customers will be included in the
companys fold. The company will also be
expanding its service portfolio in the days
to come. In the year 2012-13, our first
focus area will be on two wheeler business,
including Hero Honda Scooter, Mahindra
two wheeler and other customers. The
second focus wi l l be transportati on of
heavy commerci al vehi cl es by trai l ers
(Ashok Leyland) and the third focus area
wi l l be starti ng transportati on of cars
in containers through railways, shared
a quiet and firm Nanda. Meanwhile the
company has signed a memorandum of
understandi ng wi th ETA Frei ghtstar,
whi ch i s one of the l eadi ng pri vate
container train operators in India. The
objective is to offer multimodal connectivity
to automobile manufacturers or OEMs
(Ori gi nal Equi pment Manufacturers).
The operati on wi l l start i n the second
quarter of 2012.
Mercurio-Pallia is preparing to become
GST enabled. After the introduction of
the proposed GST, the company i s
expecting a quantum jump in long haul
goods movement in the country. To tap
the logistics and warehousing market in
post GST era, the company has decided
to launch Car Compounds to cater to
the demand of car stori ng at di fferent
regions in India. The first one is likely to
be either in east or north India. Mercurio-
Pallia is also planning expansion of its
operational area globally, initially with
south and southeast Asian countries viz
Nepal, Bangladesh, Thailand, Indonesia
and Vietnam. Already the company has
a liaison office in Singapore, to explore
business opportunities in that region. The
company will strengthen its fleet size by
adding 100 more trailers by the financial
year 2012-13. At present, the company
has 400 trailer trucks plying across the
country. I n addi ti on, i t has 200 sub-
contractors trailers to fulfill the demand
from customers. The present yearl y
turnover of the company is ` 120 crore
and Nanda is expecting 25 per cent year-
on-year revenue growth in the ensuing
4- 5 years. It i s worth menti oni ng that
prior to the formation of the joint venture
(Mercuri o- Pal l i a), Pal l i a Transports
yearly turnover was ` 25-30 crore.
The JV company, Mercuri o- Pal l i a,
since its inception in India in 2009, has
covered considerable ground in terms of
increasing volume, pan-India presence,
addi ng new cl i ents and expandi ng as
per the future automoti ve l ogi sti cs
trend in India. Its major clients include
Mahi ndra&Mahi ndra, Tata Motors,
Maruti Suzuki, General Motors, Nissan,
Honda, Toyota (through Transystem),
Hyundai (through Glovis) and Renault.
Mercurio Pallia also developed transpor
Mercurio Pallia
Autoworks
According to Nanda, future business
prospects i n I ndi a i ncl ude mul ti use
stocky ar d, PDI and mul ti modal
transportati on. I n vi ew of thi s, the
company has set-up a trailer fabrication
uni t, thr ough a new 100 per cent
subsidiary company called Mercurio Pallia
Autoworks, for its own requirement as well
as for markets in India and abroad.
Mercurio Pallia Autoworks is built on
a 4-acre campus in Rewari (Haryana),
whi ch i s 40 km away from Mercuri o
Pallias Gurgaon office.
I t has a manpower of about 100
ski l l ed workers and has put adequate
emphasis on research and development,
value engineering, prototyping & testing,
fi el d fai l ure anal ysi s and new concept
designs, to offer multiple choices to its
customers. For i nstance, Mercuri o-
Pal l i a wi l l be abl e to offer servi ces to
two wheel ers and four wheel ers at the
same trailer whenever required, without
compromising the load factor.
We are al so keen to manufacture
reefer contai ner trai l ers i n vi ew of the
burgeoni ng demand of transporti ng
perishable cargo and pharmaceuticals,
added Anand Khattar, CEO, Mercuri o
Pal l i a Autoworks. He al so mai ntai ned
that Mercurio Pallia Autoworks is open
to manufacture tai l or- made trai l ers
for any transport operators or logistics
company. Presently we have a capacity to
manufacture one trailer a day, which can
be further enhanced if required. We have
a huge capacity now and have the option
to expand further, he said.
/nand bhattar
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View Point
Air Cargo
ndia is one of the fast emerging
economi es of the wor l d and
ai r cargo i ndustry i s matchi ng
the economi c gr owth. Our
domi nance i n the worl d i s best
illuminated in the acquisitions of large
industrial houses world over; automobile,
tel ecom, pharmaceuti cal s, hospi tal i ty
amongst others.
Air cargo is a growing sector in spite
of the economi c down trend vi si bl e i n
several countries and the existing market
uncertai nti es, whi ch have dampened
business since Sept 2011. There are new
l anes that have devel oped for I ndi an
exports. The trade agreements and co-
operation between India, Africa and South
Ameri ca wi l l see exports grow. I ndi an
forwarders will have to focus on costs and
yield management, putting in place cost-
effective logistics outsourcing mechanism.
For fast cargo clearance our airports have
to be decongested. For instance, Air Freight
Stati ons (AFSs) have to be i ntroduced
near al l our major ai rports. ACAAI has
Wait and Watch
Any cargo facility is the economic window to
showcase the capability of a country. First
impression of a country is created by the airports.
Bharat Thakkar, president, Air Cargo Agents
Association of India (ACAAI), however appears
to be critical of present state of affairs. He says
that though there are certain airport-related
developments in the recent years, they may
not be adequate to propel India to the next
level of growth. Ratan Kr Paul
I
Bharat 1kakkar
The Air Cargo Policy and its desired results
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43
al ways been espousi ng for off l ocati on
cargo processing centres i.e. AFSs and
cargo villages. Commendably, Chennai
and Mumbai have already implemented
the regulations to make the AFSs working
at these two metros, wi th an ai m to
decongest airports.
All airports should be well-equipped
to meet the growing demand for imports
and keep transaction cost down, in view
of the rapid annual growth which is over
20 per cent. Significantly, the ministry
of civil aviation, has made commendable
progress by announcing a Working Group
on Air Cargo /Express Industry, under the
chairmanship of M.Kannan, Economic
Advisor to MOCA, by inviting stakeholders
to participate in the meeting to draft a
policy on Air Cargo/ Express Industry,
which will be first of its kind in India, in
the 100th Year of Indian Civil Aviation.
Dr. Nasim Zaidi, secretary, MOCA,
recently announced in Mumbai that the
chairman of working group had finalised
i ts draft report for submi ssi on and
the Air Cargo Policy will be announced
soon. We awai t i ts announcement and
posi ti ve outcome wi th an ai m towards
long-term benefits.
Air cargo as
an economic
indicator
The PPP (Public Private Partnership)
model was a turning point in the Indian
history of economic growth, especially in
the case of ports and airports. Thanks to
this PPP model, we have privatised ports,
container terminals and airports and air
terminals. Be it green field like Bangalore
or Brown filed like Delhi and Mumbai,
significant changes have been brought in
by PPP models.,
There i s a consi stent doubl e di gi t
growth of cargo year-on-year despite the
global meltdown. To move on to challenges
in infrastructure and our perspective, the
goal should be simple: Reduce dwell time,
i mprove effi ci ency, enhance faci l i ti es,
provide better procedures and move over
to a system-driven process.
Dwell time is the cumulative result of
various factors, some even before arrival
of the aircraft primarily the triggering
point for dwell time is the filing of IGM or
Import General Manifest with Customs.
ACAAI has been advocating that this can be
from the point of wheel up of the aircraft
at the origin airport (like followed in US
and most of the EU).
Despi te stati sti cs bei ng produced
that operation take few hours, reality is
that this activity consumes about a day.
In developed countries, there is a clear
benchmarki ng that i t shoul d take 4/6
hours to complete the entire operation;
flight landing to cargo ready for delivery
even for charter flights.
We do not have benchmarking nor do
we endeavour to make the cargo available
within hours of landingthis is an area of
concern which is possible to address with
right equipment, manpower, machinery
and monitoring mechanism.
We need to take a new look at the entire
customs process which should be driven by
systems. Non traceability and damage to
cargo increases dwell time and both are
controllable if proper system is in place
and is monitored.
One more chal l enge i s restri cted /
congested approach both i nsi de and
outsi de the ai r termi nal s for vehi cul ar
movements that slows down clearance
process and increases dwell time. Proper
and smooth movement of vehicle is needed.
Improve
Efficiency
Even i f hal f of what i s suggested
to reduce dwel l ti me i s i mpl emented
then automati cal l y effi ci ency wi l l
i mprove. Further effi ci ency woul d be
the cumul ati ve resul t of output of al l
activities covering cargo handling; even
if one link is weak the whole system will
tend to be delayed hence there should
be a monitoring system to ensure that the
output at every stage is measured against
a predetermined target. Today there is no
time bound / time determined operations
and hence i t i s di ffi cul t to measure
performance l evel s. There shoul d al so
be tr ai ni ng and or i entati on to the
fi l ed for mati ons to i mpr ove thei r
performance and to make them understand
the value of a customer.
ENHANCE FACILITIES
Almost all major Airport Cargo Terminals across the country have the problem of short supply of equipment, manpower,
and storage capability and of course system.
During peak hours it is common practice that the users scramble for manpower and equipment which are always under
short supply. As a result efficiency comes down and unethical practices go up. Air Terminal Operators should split the
entire activity in to different components, fix responsibility for each activity, add a definite time frame for all actions and
make this document transparent for the users to know the process, procedure and the time it would take
We are yet to break out of the shackles of manual interventions as our mindset is more on policing than on trust based
acceptance. We should create a proper interlinked EDI platform capable of handling without human involvement. Such a
system should be allowed function independently
Most of the system, be it hardware or software are stand alone architectures be it Customs, Carriers or Custodians or
other users. In the absence if a nodal agency to oversee the entire development of a comprehensive EDI platform these
stand alone systems serve a limited purpose. Effort should be to move to a complete / comprehensive mode of safe /
secure data transfer that can be shared by the different players of the air logistic chain.
WWW.CARGOTALK.IN 44 CARGOTALK

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Family Album
Club Funct ion
ACCD Annual Ball
/| |\||||C || ||/|
The recently held Annual Ball of
the Air Cargo Club of Delhi
(ACCD) in New Delhi was a
great opportunity to interact
with the who is who of the air
cargo industry. The club
members and their spouses
enjoy the evening in a big way
thanks to fabulous arrangements
of dance and music.
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DACAAI Convention 2012
DC/|S|C C/|CC S/||HC|D||S /|| / H`D||/|/D
The 3rd Annual Convention of the
Domestic Air Cargo Agents
Association of India (DACAAI),
which recently held in Hyderabad,
brought the industry stakeholders to
discuss the issues for mutual
benefits and the growth of the
domestic air cargo industry in India.
Apart from business sessions,
DACAAI also organised a cultural
function in the evening.
Family Album
Glimpses
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47
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APRIL 2012
Family Album
Glimpses
Uniworld, the leading logistics player in the country, recently celebrated its 10
th
year
of operation. Hosted by M. Prem Kumar, chairman and managing director,
the company organised a spectacular function in Bengaluru for its customers,
business partners and special guests on this occasion.
Its celebration time
U||\C||D |CC|S|CS CC/||||S 0H `|/|
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49
Family Album
Indust ry Event s
Recently, Air Cargo Club of Madras organised its annual ball in Chennai.
The function was attended by a large number of air cargo agents, airlines, air cargo
terminal operators and airport officials. Amidst full of delight the gathering was
welcomed by G Muralidhar, president, ACCM.
Air Cargo Club of Madras
/||U/| |/|| || CH|||/| \|H U|||/||D |U|
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APRIL 2012
Industry Events
Conference and Awards
he primary objective of the
programme is to address the
seri ous mi smatch between
requirement and availability
of talent in logistics cadres.
Speaking at the curtain raiser ceremony
for the Logistics Talent Hunt-2012, Amit
Shankhdhar, director, T2P Consultants,
i nfor med that i n thi s pr ogr amme,
management students i n the form of
team wi l l parti ci pate to prepare the
pr oj ects on cer tai n topi cs r el ated
to logistics industry.
The topics include Green Logistics -
The Indian Route; Logistics, the Indian
Sol uti ons; Future of 4 PL i n I ndi a;
Popularising Study of Logistics in India
and Careers in Logistics.
Some 50 teams from various business
management institutes teaching logistics
and supply chain are working on these
topics to prepare projects. These teams
will submit their projects to the jury for
evaluation. Out of these 50 teams the jury
will select five teams one from each topic.
Winning teams will give a presentation
on their projects at the Logistics Talent
Hunt-2012, International Conference &
Awards function to be held in New Delhi.
The curtai n rai ser ceremony was
attended by top professionals like CMD,
CEO, MD, and l ogi sti cs heads & HR
heads of the logistics industry and leading
management institute of northern India
along with member of National Council
of CILT- Indi a. Dr. PK Goel , secretary
general, CILT-India, emphasised on the
requi rement of educati on i n l ogi sti cs.
Also present on the occasion were Prem
Prakash, Sanjay Priye, directors of T2P
and Lt. Gen. (Retd.) DV Kal ra, jury
chairman and vice chairman, CILT.
Kalra highlighted the present scenario
of l ogi sti cs i ndustry i n I ndi a and the
difficulties in hiring qualified personnel,
to compl y wi th the ri se of demands
such as regulatory compliance, security
i ni ti ati ves and constantl y changi ng
i ndustry standards. He emphasi sed
on the i mpor tance of suppl y chai n
and l ogi sti cs sector and i ts abi l i ty to
attract younger generation as logistics
pr ofessi onal s. Thi s awar d i s al so
recogni si ng the l ogi sti cs professi onal s
individual achievements.
Logistics
Talent Hunt 2012
Supply of skilled manpower for logistics industry
seems to receive a boost, thanks to the motivation
programme called Logistics Talent Hunt 2012
that has been initiated by T2P Consultants and
Chartered Institute of Logistics & Transport
(CILT) on April 7 in New Delhi. CT Bureau
T
A quest for skilled manpower
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51
Industry Events
Logist ics Services
peaking to Cargotalk, Vijay
Gover dhandas Kal antr i ,
president, All India Association
of I ndustri es (AI AI ), vi ce-
pr esi dent, Wor l d Tr ade
Centre Mumbai and a member of the
board of directors, World Trade Centres
Associ ati on, New York, i nformed that
World Trade Center Mumbai and AIAI had
participated in six Allia events in Canada,
Qatar, Burkina Faso, Poland, USA and
France and were therefore convinced of
the potential of this event. That is why
we have decided to organise Indiallia for
the first time in India as it is a strategic
location between the East and the West.
He also maintained that after 20 years
of international experience and having
successfully organised 80,000 individual
business meetings, it is being held with
the vi ew to connect I ndi an i ndustri es
with overseas partners so that strategic
alliances can be formed.
Accor di ng to Kal antr i , I ndi al l i a
2012, a B2B forum, will help over 600
I ndi an and i nternati onal compani es
from over 30 countries to forge business
al l i ances wi th each other i n Mumbai .
I ndi al l i a i s based on the concept of
Futurallia, the fastest and most efficient
gl obal l y recogni sed forum, to provi de
compani es the opportuni ty to grow i n
newer markets worldwide.
The forum wi l l faci l i tate busi ness
al l i ances from vari ous sectors such as
agri busi ness, food processi ng, auto
components, ser vi ces, hospi tal i ty,
chemicals, pharmaceuticals, infrastructure,
vocational training, electrical, energy,
en v i r on men t, gems, j ewel l er y ,
I CT, bi otechnol ogy, metal l ur gi cal ,
texti l es, l ogi sti cs and trade promoti on
organi sati on. I t woul d connect l arge,
medi um and smal l scal e i ndustr i es
an d h as s o f ar b een r ecei v i n g
overwhelming response.
We are expecti ng a good number
of parti ci pants from l ogi sti cs sector,
both from I ndi a and abroad. Some of
the countries who are bringing delegations
i n the l ogi sti c i ndustry are Canada,
France, Cameroon, Nigeria, China, etc,
said Kalantri.
He pointed out that the logistics sector
in India has been identified as the one
with the largest potential for growth in
India; from agro to manufacturing and
services. Indian logistics market is likely
to cross $ 200 bi l l i on fi gure by 2020,
fuelled by the consistent growth of the
economy and key i ndustri es such as
automotive, engineering, pharmaceuticals
and food processing.
The countries participating in Indiallia
2012 are Argentina, Algeria, Australia,
Burkina Faso, Cameroon, Canada, China,
Colombia, USA, France, Hungary, Iran,
Italy, Lebanon, Mauritius, Mexico, Nigeria,
Nepal, Netherlands, Poland, Qatar, United
Ki ngdom, Russi a, Senegal , Sri Lanka,
Turkey. Indian Companies besides the
SMEs and officials from corporation such
as Maharashtra Industrial Corporation
(MIDC), Madhya Pradesh, Karnataka,
Gujarat and Andhra Pradesh would be
participating in the forum.
Futurallia comes
to India
Come April 23-25, 2012 and Indian logistics
players will witness the first ever event, Indiallia
2012 in Mumbai. The organisers of the event,
World Trade Centre and All India Association
of Industries, have informed that the event
will benefit the logistics companies in the
country immensely. Ratan Kr Paul
S
The international B2B forum
to benefit logistics companies
V|jay 0overdhan 0as ba|antar| |4
th
lrom the |elt) a|on w|th other d|n|tar|es
WWW.CARGOTALK.IN
Shipping & Ports
News Updat e
Prodeep Kumor Slnho, recenlly
look over os secrelory, Mlnlslry
ol Shlpplng. He succeeded K
Mohondos, who rellred on Feb
ruory 2P, 2012.
Slnho ls on lAS olllcer ol 1PZZ
bolch ond belongs lo lhe llor
Prodesh Codre. Belore |olnlng
lhe Mlnlslry ol Shlpplng, he wos
speclol secrelory ond llnonclol
odvlser, Mlnlslry ol Pelroleum
ond Molurol Gos.
PRADEEP KMAR SlMHA lAKES
CVER AS SECRElARY SHlPPlMG
Recently, Martin Sieg has taken over as
the global head, ocean freight, Damco.
He will be responsible for more than
6,00,000 TEU of ocean freight that Damco
manages every year. Prior to this Sieg
was the managing director at German
logistics company SDV Geis and has
previously held several managing
positions with Hapag-Lloyd. He is a
Diplom-Kaufmann from the University
of Hamburg.
Martin Sieg appointed as
Damcos global head for
ocean freight
Cabinet Committee
approves
he Cabi net Commi ttee on
Infrastructure has approved
the project of deepening and
widening of Mumbai Harbour
Channel and Jawaharlal Nehru
Port Channel (Phase-I) of Jawaharlal Nehru
Port Trust (JNPT) at an estimated cost of
` 1571.60 crore.
The Mumbai Harbour Channel and JN
Port Channel will be deepened and widened
to handle vessels up to capacity of 6,000
TEU and upto draught of 14 metre by using
the tidal window. The channel length will
be increased from existing 29 km to 33.54
km to meet the natural water depth of
14 metre at sea.
In addition, the width of the channel will
also be increased to maintain a minimum
wi dth of 370 metre from the present
dimension of 325 metre in the straight reach.
Completion period of the work is 25 months
including mobilisation period after awarding
of work.
The key
benefits
Haudl i u, bi ,,er s i ze ves s el s upi o
a dr aught of 14 metr e by usi ng
tidal window
\iiraciiu, iuieruaiioual couiaiuer vessels
and enabling JN Port to develop as Hub
Port on the west coast
Iucrease iu luiure irallic
-avi u,s i u s bi p wai i i u, cos i aud
ocean frei ght costs per TEU due to
larger volumes
\voidiu, cosily aud iime cousumiu,
feedering operation
0piimum uiilisaiiou ol capaciiy
Iasier iuruarouud ol lar,er vessels
I uc r e me ui a l r e , i o ua l e c o uo mi c
development and spin-off economic benefits
including employment generation
deepening and widening
of Mumbai Harbour and JN Port Channel
T
ppppppp llllra lra lra lra lra ra llra ra lra ra lllllr lll dee dee dee dee dee dee dee dee dee eee eep b p b p b p b p b p bb pp b p bbbum um um um mma ma um m um m umm uuum um r r
lart|n 8|e
52 CARGOTALK

APRIL 2012
Shipping & Ports
Indust ry Associat ions
ccor di ng to Santosh
Kumar, president, CSAA,
the cur r ent economi c
situation has forced many
mai nl i nes to termi nate
unviable services. He also maintained that
about 302 feeder vessels had called Kochi
port during April 2010 and March 2011,
whereas it has reduced to 289 during April
2011-Feb 2012.
However the arri val of mai nl i ne
vessel s to the I nternati onal Contai ner
Tr ansshi pment Ter mi nal r emai ned
unchanged at 61 ships. Remarkably, with
a view to attract main line container vessels
to ICTT Vallarapadm port management
decided to offer 60 per cent concession
in vessel related charges till migration
of operations to ICTT Vallarpadam. On
Jul y 5, 2010 the port management
regularised this concession in the board
meeting and extended the concessional
period till September 2011 thereby leaving
the regular feeder vessel operators with
a very steep i ncrease to thei r vessel
operational cost.
Now i f we revi ew the vessel cal l
statistics for 2010-11 compared to 2009-
10, it may be noted that there was almost
1.72 per cent drop i n the number of
vessel that called Kochi port with almost
8 per cent drop i n feeder vessel cal l s.
During 2009-10 the port reported that
390 container vessels had called Cochin
whereas in 2010-11 this has dropped to
363 vessel calls, Kumar pointed out.
Kumar poi nted out that contai ner
shipping industry is going though a very
tough phase due to the European recession
with many main lines deciding to terminate
unviable services. Accordingly, it is the
need of the hour that port management
should consider to extend the 30 per cent
concessional tariff to feeder vessel calling
at ICTT till March 31, 2013.
Interestingly, various steps initiated by
Kochi port after commissioning of ICTT
Val l arapdam i s a cl ear i ndi cati on that
the port management has attached value
to thei r Exi m customer and i s wi l l i ng
to give an all out support by providing
adequate i nfrastructural to meet the
customers requirements.
Accordi ng to Kumar, rel axati on of
the I ndi an Cabotage Law i s another
i mportant i ssue, to turn around ICTT
Vallarpadam to boost the economy of Kochi
as well as India. The port management
has already taken drastic steps to get this
matter resolved through various ministries
including shipping, commerce and finance.
We are optimistic that port management
will be able to get this matter resolved by
April 2012, said Kumar.
Cochin Steamer
Agents Association
In view of the crises being faced by the
container shipping industry due to the
European recession, the Cochin Steamer Agents
Association (CSAA) has urged the Kochi port
management to extent 30 per cent concessional
tariff to feeder vessels till March 2013. The plea
was made at the associations recently held
3
rd
Annual General Meeting. Ratan Kr Paul
A
urges for 30% reduction on feeder cost
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Industry Events
India Cargo Summit
Cargo fraternity
he summi t di scussed on
the i ssues per tai ni ng to
Warehousing infrastructure
& Gl obal Suppl y Chai n
Effi ci ency, Empoweri ng
Logistics through Reforms in the Road
Transport Regulations, Rail Reforms:
Providing Impetus to Investment, Ports
and Airports: Process Simplification for
Maximising Efficiency and Domestic Cargo
Movement: Implications of GST.
The summit was addressed by a number
of speakers representing the industry and the
Government of India.
Setting the tone of the summit, Tushar
Jani, chairman, SCA Group of Companies,
highlighted the gradual development of the
infrastructure for cargo movement in the
country. He however, stressed on the fact that
the country has miles to go to attain global
standard as far as logistics and supply chain
management is concerned. Cumbersome
procedures and exorbitant cost transaction
have put India into a disadvantageous
position, despite its potential to be a cargo
hub in the region. Who is responsible for
this? Is it the custodians, the carriers, the
service providers or the Government. We will
have to take the common responsibility for
this lacking. We will have to work hand in
hand for the greater interest of the countrys
economy, said Jani. He pointed out that
the logistics industry has employed two
million people in India and has enormous
potential to grow. Logistics industry has to
be recognised by the Government of India
by creating a nodal point (separate board)
under the aegis of the Prime Minister of India
for it, so that it can function without any
hassle, advocated Jani.
Maki ng the theme pr esentati on
Manish Puri, CEO, Quant Partnership,
hi ghl i ghted the i mpact of economi c
liberalisation on the countrys infrastructure.
Accor di ngl y, gover nment has al so
changed i ts mi nd set by i nvi ti ng
pri vate pl ayers to bui l d the requi red
i nfrastructure through PPP mode. He
however, suggested, In an ideal environment
PPP should shift the onus of successful
outcome to the pri vate sector partner
through its superior project management and
efficiency skills, while providing adequate
reward commensurate with the risk to
which the private sectors get exposed in
the process of infrastructure development.
He also pointed out the positive impact
of private sectors participation, especially
i n the por t sector . Pr i vate sector
participation in port sector re-positioned
the port services as market-driven, cost
sensitive and operational standards-driven
business activity benchmarked to globally
accepted norms of market competition and
efficiency, he maintained.
He al so r ai sed some i ssues that
are yet hi nderi ng the growth of port
sector. These i ncl ude mul ti pl i ci ty of
concession agreements, policy guidelines
(changed goal posts), uncertainty over
tari ff setti ng phi l osophy, coordi nati on
between central and state governments,
hinterland connectivity, etc.
Puri i denti fi ed the key chal l enges
to infrastructure development in India
as government pol i cy, i nsti tuti onal
capacity, regulation, project development,
l and acqui si ti on, f i nanci ng and
equity investments.
Recently, the Confederation of Indian Industry
(CII) hosted a conference in New Delhi called
India Cargo Summit. The objective of the
summit was on the issue of Infrastructure &
Logistics. CT Bureau
T
urges for nodal point for growth
bound 1ab|e: lmpact ol 081 on 0omest|c Caro lovement
lan|sh lur|
CARGOTALK

APRIL 2012

55
afael Echevarne highlighted
the growth trajectory of
avi ati on i n I ndi a duri ng
the last five years in which
the countr y i mpr ov ed
i ts rank from 101
st
i n 2007 to 12
th
i n
2010 in terms of airport maintenance and
traffic handling.
In order to sustain this, India would
requi re to put i n pl ace a regul atory
framework that encourages investment,
ensur es safety and faci l i tate the
development of tourism.
Tony Tyl er, di rector general and
CEO, IATA made the key note address at
India Aviation 2012. He recommended
for infrastructure expansion, rationalisation
of airport charges, investment policies
which enable 49 per cent direct investment
by foreign carriers.
Amber Dubey, di rector avi ati on,
KPMG, which is the knowledge partner of
India Aviation 2012 said that the initiatives
like formulating an air cargo promotion
policy, proposal to set up a full-fledged
aviation university, investments in MRO
hubs are posi ti ve steps taken by the
Government of India.
At thi s conference Nasi m Zai di ,
secretary, mi ni stry of ci vi l avi ati on
released two Knowledge Reports on Indian
Civil Aviation Industry titled India: The
Emerging Aviation Hub by KPMG and
Economic Benefits from Air Transport in
India by Oxford Economics.
Earl i er, Aji t Si ngh, ci vi l avi ati on
mi ni ster i naugurated the show at the
Begumpet Ai rport i n Hyderabad i n
presence of a large number of government
representatives and industry stakeholders.
He sai d that the growi ng i nterest i n
the fl agshi p avi ati on event was a
reflection that India was fast becoming an
aviation hub.
The gl obal economy faced rough
weather in 2011 with rising fuel costs,
European debt cri si s, etc. European
airlines will be hit the hardest in 2012 and
Aisa-Pacific (APAC), specifically Indian
and Chinese markets, would provide the
boost, he added.
The government, he stated, was
commi tted for the devel opment of the
sector and was introducing several policies
and regulations to encourage private sector
parti ci pati on and i nvestments. Our
government has been expressi ng i tsel f
forcefully in the infrastructure area both
on the ground and in the air, he said.
He al so mai ntai ned that the ci vi l
aviation ministry is formulating an Air
Cargo Promoti on pol i cy whi ch wi l l be
discussed with the industry.
The Ai rports Authori ty of I ndi a i s
gearing up, to meet the challenges of rapid
growth in aircraft movements.
To bri dge the shortage of ski l l ed
per sonnel i n avi ati on sector , the
government proposed to set-up a full-
fledged aviation university which would
enhance the supply of trained pilots and
other skilled personnel.
Industry Event
Report
India Aviation 2012
Speaking at the India Aviation 2012, Rafael
Echevarne, director, economics and programme
development, Airports Council International
(ACI) said that India is likely to emerge as
the third largest aviation market by 2029.
The 3
rd
civil aviation show recently organised
at Hyderabad by the ministry of civil aviation,
government of India. CT Bureau
R
India will be the third largest
aviation market by 2029: ACI
1he l|n|stry ol Commun|cat|ons re|eased commemorat|ve postae stamps and co|ns ol centenary
ce|ebrat|on ol c|v|| av|at|on |n lnd|a.
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APRIL 2012
n Tyl ers opi ni on the proposed
National Aviation Policy would
need to re-build competitiveness by
addressing the difficult issues of tax,
cost, investment and infrastructure.
Aviation is responsible for 0.5 per cent of
Indias GDP and supports 1.7 million jobs.
Aviations contribution to the India economy
could be much more, said Tyler.
Tyler suggested a four pillar agenda
to bui l d competi ti veness i .e. taxes,
infrastructure, cost and investment policies.
Tyler highlighted the damaging effects
of jet fuel taxes in India. All fuel is subject to
an 8.24 per cent excise duty and domestic
flights face state fuel taxes of up to 30 per
cent. As a result, fuel represents an average
of 45 per cent of operating costs for Indias
airlines, compared to a global average of 32
per cent. The high cost of jet fuel has been
hijacking the competitiveness of the Indian
air transport industry for over a decade. It is
now clearly recognised by all that fuel taxes
are sucking the life blood from the Indian
aviation sector, he cautioned.
Tyler highlighted the need for capacity
expansion in Mumbai. Mumbai is bursting
at the seams. The first phase was meant to
open in 2014 but construction has not even
begun. Land acquisition is not yet complete.
We need a coordinated effort across all
government ministries to facilitate success
without further delay, Tyler suggested.
Tyler urged MOCA to intervene in the
discussion of proposed charges increases
at Delhi International Airport. The new
terminal and third runway have been a
much needed boost. But if the 340 per cent
increase in charges over the next two years
is implemented, it will make Delhi the most
expensive airport in the world and destroy
its competitiveness, said Tyler.
Accordi ng to hi m, gi ven the broad
economic implications that this would
have, it is important that the government
takes immediate action. First, 340 per cent
increase of airport charges by next two years
is unacceptable. The ministry cannot stand
by and let this happen. It must intervene
with a broader context. This should take into
consideration the long-term development of
Indian aviation at its hubs, observed Tyler.
Tyler urged the positive consideration
of MOCA proposals to allow up to 49 per
cent direct investment by foreign carriers in
Indian airlines. This would allow strategic
tie-ups with foreign airlines similar to
the arrangements that have successfully
strengthened airline groups in other parts
of the world, he said.
, made it clear that merely allowing
foreign airlines to invest in Indian aviation
wi l l not sol ve the purpose. Wi thout
addressing the other three pillars - costs,
taxes and infrastructure - it may only be
a theoretical exercise. Under the current
conditions, the odds are stacked against
any i nvestor maki ng a posi ti ve return
on i nvestment i n the I ndi an avi ati on
sector. And no one is likely to come forward
unl ess they see themsel ves maki ng a
profit, Tyler argued.
He expressed optimism and believes that
India has a promising aviation future if these
issues can be addressed.
View Point
CEO Talk
National Aviation Policy
According to Tony Tyler, director general and
CEO, IATA, Indian aviation has tremendous
potential to drive economic growth in the
sub-continent. But to realise this, India needs
a common vision for aviation, expressed in a
National Aviation Policy strongly linked to an
implementation plan. CT Bureau
I
1ony 1y|er
needs a strong implementation plan: IATA
Aviation is responsible for 0.5 per cent of
Indias GDP and supports 1.7 million jobs.
Aviations contribution to the India economy
could be much more
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APRIL 2012
Study Report
Air Cargo
he study points out that in
India total cargo throughput
has increased by more than
50 per cent over the last five
years. Whi l e the domesti c
cargo throughput has i ncreased by
12.1 per cent CAGR, international cargo
throughput has grown by 10.3 per cent.
International cargo tonnage is almost 64
per cent of the total cargo handled.
The international cargo is projected
to reach around 3.5 mi l l i on metri c
tonne per annum (MMTPA) and
domesti c cargo to around 2.4 MMTPA
by FY 2020.
However the study says, Indian air
cargo i ndustry faces a magni tude of
chal l enges. These i ncl ude hi gh dwel l
ti mes, congested car go ter mi nal s,
i neffi ci ent use of bel l y cargo capaci ty,
missing/damaged/non-traceable cargo,
manual processing, etc.
Key reasons behind these include, lack
of enabling infrastructure, complicating
procedures, i nadequate technol ogy
and shortage of ski l l ed manpower. I n
vi ew of thi s scenari o, the study report
recommended a few short term and
medium term actions.
Short term and
medium term
actions:
Establish an Air Cargo Promotion
Board (ACPB)
Develop of Air Freight Stations (AFS)
Promote professional training
programmes for air cargo
Ensure 24X7 customs operati ons
in phases
Extend Risk Management System
(RMS) facility for exports
Ensure flow of information between
airports, airlines and operators
Standardise and simplify
transshipment procedures
Allow ramp to ramp transfer for pre
sorted containers cargo
Promote e-freight
KPMG Report
The KPMG study report, which was released at
the recently held India Aviation 2012 in
Hyderabad, underlines the huge potential of air
cargo industry (both domestic and international)
in India. It also emphasised on some crucial
tasks before the government as well as the
industry people to make India an air cargo
logistics hub in this region. CT Bureau
T
recommends for Air
Cargo Promotion Board