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CargoTalk.in
ANNUAL
Issue „ Air cargo springs suitable growth: AAI.............................................................................03
„ Ensuring a favourable business climate........................................................................... 10
„ Indian logistics sector: Poised to grow and eliminate bottlenecks................................12

Project Cargo: On the move


A cargo, sometimes, require its own unique solution, by means of sensitivity of risk with sheer weight or odd
size. CARGOTALK unravels the nuances of ‘Project Cargo’, for the industry.
KALPANA LOHUMI seen good increase in the
OD cargo business as people

E very cargo doesn’t fit


in a standard logistics
solution. High level of
have started exporting plant
and machinery making
goods from India. This is a
risks is associated with good sign for the country
cargo shipments due to its to expand its horizon to all
nature. Cargo with larger those countries that were not
dimensions requires a importing goods from India,”
completely different set of tells Malani.
equipment, infrastructure
and experienced Infrastructure boom
personnel. Dealing “The last five years or so
with cargo of peculiar has surely witnessed a boom
dimensions is always a in the Indian infrastructure
challenge for a transporter. industry particularly in the
Last year, a transparent setting up of large scale
system for movement power projects, installing
of cargo through over of telecom equipments,
dimensional vehicles was setting up industrial plants
launched and an online in different sectors such
nod for movement of 5,000 as automobiles, cement,
such vehicles including Amit Tandon, Managing Raj Malani, Director, provided on fertilizers, minerals and
machinery was given by Director, Asia Shipping Shree Balaji Shipping & the cargo for safe handling metals, as a consequence,
the government to prevent India, shares, “Over Projects, says, “A project cargo. So, we definitely need of the cargo till the time demand for moving ODC.
middlemen and lengthy Dimensional (OD) cargo is cargo is something where people who can handle this cargo is handed over to In the past three to five
and time-consuming defined based on weight we cannot take chances cargo with utmost care using shipping line/airline.” years, there has been a
paperwork involved in the and dimension. Anything in handling the cargo each appropriate equipment to sudden surge in the power
process. Exploring the above 40 feet length, with time. The cargo, if damaged stuff it with proper lashing/ “The OD cargo business sector although one to two
intricacies of transportation 8.25 feet height, and while stuffing, loading or chocking, etc. Additionally, has seen tremendous growth refineries are in the pipeline.
of project cargo, CARGOTALK 8.25 feet width would be unloading, will be of no use the cargo handling team in India over the past few The manufacturing industry
decodes the potential of considered as OD cargo. to consignee and it will be needs to be present from years. Especially over last has witnessed a rising
this segment for the Indian The industry is witnessing a a loss of time and money manufacturing stage itself year, ever since ‘Make in demand in both domestic
logistics industry. 15-20 per cent growth.” for everyone involved in this to ensure proper hooks are India’ was launched, we have and export market and in turn
Contd. on page 6 X

PAN INDIA

Government gives logistics sector infrastructure status


I n a major push to
developing an integrated
logistics framework in the
help the sector get credit
at competitive rates and
on a long-term basis as
level post in the Commerce
Ministry to coordinate with
all the ministries concerned
Supplies and Disposals
(DGS&D) as Special
Secretary In-charge of
(ICD) with a minimum
investment of `50 crore
and minimum area of 10
Logistics costs of
exports are very high in
India and due to this, Indian
country including industrial rising logistics cost impacts and departments. To adopt logistics in the Commerce acre, a cold chain facility goods are less competitive
parks, cold chains and the global competitiveness a coherent approach and Industry Ministry. with a minimum investment in global markets. According
warehousing facilities—the of exporters. for the development of The government of `15 crore and minimum to a report, about 14 per
government has granted Realising the logistics infrastructure, the has defined “logistics area of 20,000 sq. ft and a cent of the total value of
infrastructure status to the importance of the logistics government appointed infrastructure” to include warehousing facility with a goods goes into the logistics
logistics sector, enabling the sector to promote trade, the Binoy Kumar, Former a multimodal logistics minimum investment of `25 cost. On the other hand, in
industry to access cheaper government has created a Director General of park comprising an crore and a minimum area other major economies, this
finances. This status would separate special secretary- Directorate General of Inland Container Depot of 100,000 sq ft. is just six to eight per cent.
AVIATION DECEMBER 2017 CARGOTALK 3

Air cargo springs suitable growth: AAI


Airports Authority of India (AAI) is increasing cargo footprint facilities at most of the airports.
Guru Prasad Mohapatra, Chairman, AAI, talks about the achievements in 2016-17 and about the future plans.
CT BUREAU
How much cargo is
being handled at AAI
airports presently?
The current volume
of cargo being handled at
AAI airports is 8.08 lakh
metric tonnes. And, there
is 34.53 per cent increase
in tonnage and 19.55 per
cent rise in revenue during
financial year 2016-17 as
Guru Prasad Mohapatra
compared to last year. Chairman
facilities at Kolkata and cases where cargo/courier documentation services wit the specific
airports with AAI
Please brief us Chennai airports. facilities are outsourced on behalf of airlines to time line.
about the air under O&M model at the old, be rendered by AAICLAS
cargo facilities We have augmented redundant, under-utilised by Q2-2018-19, development Name of Time line (PDC)
commissioned during 25 X-ray machines /dual passenger terminal buildings of Air Cargo Community the Airport There is 34.53 per
the year 2016-17? image and 17 single view at both metro and non-metro System for air cargo sector Pune Q-4 2017-18
cent increase in
We have commissioned at the existing/upcoming airports, so as to make cargo by 2021-22, and exploring Guwahati Q-3 2017-18
domestic cargo facilities cargo facilities at Tier-II/ facilities economically viable. the possibility of end-to-end Tirupati Q-2 2018-19 tonnage and
at Ranchi, Ahmedabad, Tier-III cities besides 25 processing of shipments Lucknow Q-1 2018-19
19.55 per cent
Raipur, Aurangabad, explosive trace devices for What are your moving completely in Trivandrum Q-3 2017-18
Bhubaneshwar, Goa cargo facilities. future plans? electronic form at air Varanasi Q-3 2017-18 rise in revenue
Amritsar Q-2 2019-20
and Srinagar (interim) We have plenty plans cargo terminals at AAI
Surat Q-2 2018-19
during financial
airports. International cargo A path breaking decision to focus on; development airports – partially ongoing.
facilities at Indore and has been taken by AAI of Free Trade Warehousing We are planning to launch Rajahmundry Q-2 2018-19 year 2016-17
Bhubaneshwar airports board to reduce the 50 per Zone by 2023, development common user domestic air Srinagar Q-1 2019-20
and international courier cent space rentals in the of complete range of cargo terminal at following Vijaywada Q-3 2017-18
#1 IN CIRCULATION & READERSHIP
REPORT

EDITORIAL CII to transform industry


Taking a step towards transforming the industry, CII’s Maritime, Ports, Logistics
Wave of hope & Warehousing exhibition and conclave 2017 held in Mumbai outdid itself
this year by raising pertinent issues that are hampering the sector’s growth.
I ndia is a vast country and so is the
dynamics of its logistics sector. As
the government has started initiating HAZEL JAIN To meet the increasing demand for
EXIM trade, which will rise in pro-
solutions to the problems that cargo November has been a great portion to the fast-growing Indian
agents, airlines, shipping lines, air and month for the sector with all the economy, the port-led develop-
announcements including getting ment model focuses on energising
sea port operators are facing, it is also the industry status. This has been the coastal economy and the in-
the responsibility of the industry to our demand for a very long time. frastructure development by mod-
deliberate and turn up with the solutions. We also heard that a logistics desk ernising our ports and integrating
has been set up under the Ministry them with SEZ’s port-based smart
The industry has finally received the long of Commerce. Finally, we will have cities, industrial parks, warehous-
pending ‘infrastructure status’ this year. a nodal entity who will string all of es, logistics parks and transport
us together and hopefully we will corridors. There is an immediate
This will not only develop an integrated see all the changes that we have been asking for. India has been need for remedial measures to prevent further decline of exports..
logistics framework in the country but at the forefront of the trade facilitation agreement. Between CII,
also enable the industry to access FFFAI, Customs, ASSOCHAM and FIEO we have done more than Khalid Khan
30 contact programmes across India to educate people about this. Regional Chairman,
cheaper finances.
Federation of Indian Export Organisations
Samir Shah
As the year comes to an end, there is (Western Region) & Director
DDP Game Changer 2017 & Conclave
a wave of hope in the industry for better Geco Trading Corporation
Chairman & Partner, JBS Group
yields and more innovations. Despite the
Today, we are at six per cent of our The biggest threat today is a slow-
challenges like implementation of GST GDP but we are not a competitive down of investment and about
and demonetisation, the Indian logistics country cost-wise. Moreover, most 4.5 per cent growth in port traffic.
industry seems to be ending on a decent of the minor ports have connectiv- The biggest thing we see emerge
ity issues. The second issue we now is innovation and birth of new
note. It was not a smooth ride to face face is about funding. We saw one ideas. This can be a great threat
the cash crunch in the economy due to more notification that the logistics but it can also be a great oppor-
sector now has the infrastructure tunity. What we see is the emer-
demonetisation and the GST tax regime;
status and will receive all the ben- gence of the renewables, the elec-
it was rather an achievement to survive efits of this. There are more than tric vehicles, hyperloops, robotics,
and run the business successfully. The 37 permissions that are required. drones, emergence of products
We don’t have a single-window clearance. This year, we will grow of Uber, etc. We need to increase
industry now is ready with new goals for at 6.7 per cent. If we want to grow at 7.5 per cent, we will need 20 traffic in the rail and port sector. This will happen only by mak-
2018, including many reforms that would more ports. Most ports in India are operating at 100-110 per cent ing these routes flexible and hassle-free. Ease of accessibility and
ease business for the players. capacity, while world over it is at 60 per cent. ease of doing business is important.

Vijay Kalantri Rajiv Agarwal


On the shipping front, with the
Chairman & MD Managing Director & CEO
Bharatmala project, the government has Dighi Port Essar Port
taken a major step towards economic
growth with regards to logistics. The vision For the Sagarmala Project, we Under the Sagarmala Project, 33
of constructing 83,000 km of highways understand our role well. Ports are projects worth `3,261 crore have
not confining only to loading and been completed in the last one
will connect almost all the border states unloading of cargo. Whether it is year. Twenty-three projects under
of India including the remotest areas. a multi-model logistics park to be port augmentation worth `967
The government has also put in a set up, setting up SEZ in the port crore are going on. Eight projects
area, or creating a new route, we under port connectivity worth
huge investment to strengthen the are looking at how to promote the `2183 crore are going on. Sagar-
logistics infrastructure. coastal areas. JNPT is coming up mala has very big plans. Under
with a new coastal berth dedicated port connectivity, a new corpora-
Along these lines, there is to coastal cargo which probably no tion has been set up - Port, Road,
improvement in every vertical of the private player will do. Ports have Railway Corporation – headquar-
worked out total demand until 2025. Ports are taking a lead in tered in Mumbai. They have already started 57 projects. Under
logistics industry which is a sign that creating more value. We are trying to unlock capacity without in- port-led development, a very serious SEZ project is going on at
the industry and government both are vesting anything. JNPT, at Kandla and Paradip.
making efforts to make the sector on a Neeraj Bansal Sanjay Bhatia
par with international standards. Deputy Chairman Chairman
Jawaharlal Nehru Port Trust Mumbai Port Trust

SanJeet Gunjan Sabikhi Jaspreet Kaur CARGOTALK is a publication of DDP Publications for information purpose only. Readers are advised to for our records. Publications reproducing material either CARGOTALK is printed, published and edited by
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NEWS DECEMBER 2017 CARGOTALK 5

Blue Dart initiates green mobility drive


To reduce carbon footprint, while progressing towards a greener India, Blue Dart has introduced Electric Vehicles
to optimise last-mile deliveries in the Gurugram region.
CT BUREAU Framework Convention on The electric vehicles are large degree on employee
Climate Change (UNFCCC). being piloted in Gurugram commitment and expertise,

S trengthening
GoGreen
Blue Dart Express has
its
mission, The launch of electric
vehicles is in line with
and will be subsequently
inducted
Dart country.
across Blue
we will train 80 per cent
of our employees to become
certified GoGreen specialists
piloted electric vehicles in Deutsche Post DHL (DPDHL) and actively involve them
Gurugram, making it another Group’s Sustainable Strategy “Because the success in the group’s environmental
step towards operating and climate protection goal of these sustainability protection activities,”
its last mile e-tail delivery ‘Zero Emissions 2050’.” measures depends to a he added.
service with clean pick-up
and delivery solutions. The
launch was inaugurated
by Sukhwinder Singh,
Regional Head – North,
Blue Dart. With Delhi/NCR
reaching the hazardous
PM2.5 levels that are 10
times higher than the safety
limit prescribed by the World
Health Organisation (WHO),
the company has decided
to launch this first initiative
in the National Capital
Region (NCR).

Anil Khanna, Managing


Director, Blue Dart, says,
“With the introduction of
electric vehicles to our fleet,
we move one step closer
towards our GoGreen
mission. We will continue
working towards identifying
every opportunity that
can be capitalised on for
strengthening our mission.
Blue Dart’s GoGreen
Mission is aligned to the
Government of India’s
NEMMP (National Electric
Mobility Mission Plan, 2013)
and FAME (Faster Adoption
and Manufacturing of
Hybrid & Electric Vehicles,
2015) submitted under
the Intended Nationally
Determined Contributions
(INDC) to the United Nations

Trivia
Virtually noiseless with
a Payload capacity of
500 kg.
Capacity to carry
around 100 average
sized shipments.
Three wheeler,
powered by efficient and
environmentally friendly
batteries.
Comfortable to drive
and maintain than a
traditional vehicle.
Less driver fatigue.
Top speed of 40 kmph
and has a range of
approximately 80 km on
a single charge.
6 CARGOTALK DECEMBER 2017 COVERSTORY

Project Cargo to ease business dealing


X
Contd. from page 1
equipment imports into
project cargo movement has India and metro coach
increased, e.g. boilers, heat transportation projects in
exchangers, melting pots, India are typical examples
crucibles, windmill blades, of managing ODC cargo,”
structures, monuments etc,” adds Tandon.
informs Tandon.
Intricacies involved
“Project cargo would Sharing the intricacies
involve a variety of cargo; involved, Malani points,
some sensitive to handling “Every ODC that is
and others sensitive to transported by road has to be
transportation or both. D.S. Bharara Shama Mathew Raj Malani Amit Tandon loaded properly on a truck/
Vice President – Logistics Senior Manager -Projects India Cargo Award winner 2016 & India Cargo Award winner 2016 &
Handling of cargo would ACTL NDLI Jeena & Co. Director, Shree Balaji Shipping & Managing Director, Asia Shipping India
trailer with proper support
always require special types Projects like dunnage, lashing etc. We
and capacities of crane or fork also need to check for center
lifts and related lifting gears. of gravity of the cargo while
Similarly, for transportation by The Central Only an experienced We also need to Though we now have loading on the truck or even
road, special types of pullers while stuffing on container
with right capacity and trailers Government has team with specific check for center of better roads from to ensure safe movement
would be required to ensure framed a policy for skill sets and gravity of the cargo many ports, there of cargo. One also needs to
safety of the cargo en route,” ensure that while transporting
explains, D.S. Bharara, granting permissions core competencies while loading on the are always the ODC cargo by road, road
Vice President – Logistics, for movement of can make truck or even while challenges for safety norms are taken care
ACTL NDLI. of like, providing red lights at
ODC packages by project handling stuffing on container movement to a the extreme ends (right /left
“The market for heavy road in India successful for safe movement plant location side etc.) of the cargo, use
and oversized cargo is proper routing via road, etc.”
fast expanding on account
of Indian government’s According to Tandon,
special thrust on developing manager are knowledge, industry is not consistent, “For instance, bidding “Loading and unloading “India lacks road, rail and air
infrastructure. Project proven experience and there are times when the for EPC contract requires of such cargo requires expert connectivity to the regions
cargo movement is rising personality. From aggressive market is sluggish and there past experience as tender supervision, because of the where huge industrial projects
in industries like power, negotiation to closing are times when there is a will have lots of terms & greater risk of damage or are being constructed or
oil and gas, mining, etc. post sales fixtures to using boom due to sudden influx conditions and one has to accidents. Customers usually installed. Though we now
The government’s decision right equipment for the of orders mainly in the study this document minutely are large thermal power have better roads from many
to attain self-sufficiency right cargo, the key lies in import of capital machinery,” along with legal or insurance plants, the nuclear power ports, there are always
in power generation has the confidence of the team shares, Shama Mathew, team to understand the sector, sugar factories and challenges for movement to
resulted in the sanction of during execution level. The Senior Manager -Projects, pitfalls and to ensure due fertiliser units. Managing a plant location. Also, there
power plants, - small, large growth in the OD cargo Jeena & Co. diligence,” states Mathew. the transportation of power is lack of technology and
and very large - to be set availability of equipment,
up across the country. The trucks and container systems
heavy items of cargo to be to handle these ODC. One
handled include wind turbine, has to depend on road
refinery equipment, power transportation only as in India
components, and defence the coastal ways is neither
related equipments, etc. It well defined nor developed.
could even be fragile and Many old bridges are
dangerous goods that need decades old with no proper
specialised handling. The maintenance, which, makes
ODC packages, constituting the ODC/OWC transportation
equipment and machinery for difficult. The condition of
these projects are fairly large the road, its load bearing
and they weigh from 150 capacity and axle weight
to 450 metric tonnes,” limitation, the capacity of the
notes Tandon. bridges/culverts en route to
be able to take the weight/
“Only an experienced dimensions of the cargo
team with specific skill sets are important parameters
and core competencies to be considered. Moreover,
can make project moving OD cargo requires
handling successful. Core clearances from multiple
competencies of a project agencies. There is an urgent
Contd. on page 8 X
8 CARGOTALK DECEMBER 2017 COVERSTORY

A sunrise for the logistics segment


X
Contd. from page 6
should ideally be 300 km per
need for the government to day enabling faster movement
set standards and regulations of cargoes. For this, we will
for this sector.” need wider and better roads.
The present road conditions
We require clearances too are not good.”
from multiple agencies
such as the Public Works Bharara thinks the
Department, the National demand over the next few
Highways Authority of India years for project cargo could
for using roads and bridges; be going up with FDIs and
the State Electricity Boards ‘Make in India’. He continues,
for overhead wires; and the “The demand for OD cargo
Railway Board for railway could be declining further
bridges. Lack of uniform in view of the intricacies/
and standardised rules regulations involving
across the states make this handling and transportation
more difficult. of ODC packages, while the
technology in assembling
Rules and regulations and manufacturing the
“The Central ODC packages in India is
Government has framed a rising and getting better
policy with stringent rules in years to come.” “Faster
and regulations for granting making transportation of transporting OD cargoes to segment in the logistics On the other hand, Malani implementation of policies
permissions for movement ODCs within India, a very these destinations is risky sector. The market for heavy feels, “As per the current and makeovers will enable
of ODC packages by road cumbersome and tedious to both the equipment and and oversized cargo is scenario, we are looking us to meet the future surge
in India. However, over and task and with heavy costs,” man. So, development of fast expanding on account at a considerable growth in project logistics demands.
above these regulations, says Bharara. good roads is a primary of Indian government’s in this industry in coming For this, trade leaders must
the state governments concern especially to ODC special thrust on developing years. However, the present have regular interaction
with their respective RTOs Adding to that, transport operators.’ infrastructure. Project infrastructure needs to be with respective government
and highways add on to Mathew says, “Most of the cargo movement is rising more developed like in Far officials along with the
the confusion of these power plants or projects Outlook in industries like power, East countries. Even today, the various regulatory bodies
regulations and implement are located in highly “Project cargo is already oil and gas, mining etc,” movement of ODC cargo is at cou
to make them accountable,”
them with their own riders inaccessible terrains and being considered as sunrise believes Tandon. 160-170 km per day, which suggests Mathew.
10 CARGOTALK DECEMBER 2017 EXPERTSPEAK
Ensuring a favourable business climate
Keku Bomi Gazder, CEO, AAICLAS, talks about the present state of ‘ease of doing business’ in the Indian
logistics industry and how the company is following suitable steps to set a benchmark.
CT BUREAU Reduction in Impact of GST structural nature of this tax still lies outside the ambit
Transit time With GST, government reform is likely to create of GST and the concept of

T he government has
made considerable
inroads into ensuring a
After having a unified
market under the new GST
regime, the flow of goods
reform initiatives, promotion
of manufacturing
trade, improving investment
and
a better environment for
doing business in India
over time, which would
E-way bill, while promising
better regulation
monitoring of the logistics
and

favourable business climate within the country became climate are expected to create a platform for higher sector, may still come under
in Indian logistics Industry. smoother. Scrutiny at the transform the industry and economic growth. It will the scanner for inviting
The recent initiative, to borders checkpoints has also drive growth between 2016 bring down costs within the needless bureaucratic
implement the Goods and been reduced. This change and 2020. Development of system, give better control intervention, the very thing
Services Tax (GST), which has brought the logistics transportation and logistics- to government on taxation, plaguing the segment at
promises to integrate India’s companies to deliver goods related infrastructure reduce unaccounted part of this point of time. However,
multi-layered indirect tax more efficiently and optimise such as dedicated freight the economy, thus adding while to weigh the pros
Keku Bomi Gazder
system into a single unified delivery times as compared corridors, logistics parks, to government resources. and cons of the reformed CEO
one, unshackling India to the earlier arrangement. free trade warehousing This benefit could be tax policy, it would come AAICLAS
from its bureaucratic web The reduction in delivery zones, and container freight then used to fund India’s to light that the benefits far
and improving the ease of time has lead a reduction in stations are expected to development and increase outweigh the negatives.
doing business. distribution costs by 10-15 improve efficiency. its competitiveness within GST is a disruptive force on
per cent, thereby lowering the global economy. the surface of the current GST spells much
The changes in the the final price of the goods. Steady Increase in ecosystem that spells
hope, efficiency
indirect tax system has Tax Base Uniformity in Tax Rate much hope, efficiency and
reduced the transportation Petroleum products GST is a multi-stage Standard tax rates will prosperity for the entire and prosperity for
cycle times, enhance required tax, it provides for an allow corporations to move logistics sector in general the entire logistics
supply chain decisions, Although GST brings input tax credit mechanism, away from the practice of thereby easing the way
lead to consolidation of a sense of respite for and since every link in building a warehouse in forward for doing business in sector in general
warehouses, etc. which the logistics industry, there the value chain, including different states to adhere Indian logistics industry. thereby easing the
helps the logistics industry is one major drawback – dealers and distributors, to each state’s tax code.
reach its potential in terms of keeping petroleum outside will require evidence A big packaged consumer In order to make the way forward
service and growth. the purview of GST. of compliance by its goods company could thus processes easier and hassle
If corrected in time, this preceding link to claim make do with one large free in respect of EXIM
Multiple warehouse could give the logistics the required set-offs, it mother warehouse at critical cargo movement from the
strategy industry another reason to is likely to broaden the points in the country and AAICLAS facilities, efforts To take up the issue
India became a appreciate the GST regime. tax base by increasing employ logistics companies are on to simplify and to set of waiver of customs cost
common market without After much deliberation, voluntary compliance. to manage distribution and a benchmark in the following recovery charges for
any differentiation between petroleum has been brought supply chains. areas of operation:- the customs manpower
inter-state and intra-state under the purview of GST As the GST payments To bring down the 20 deployed at smaller AAI
sales, thus ensuring a but it will be exempt until by tax-payers will be linked to Conclusion stages of import cargo airports.
cumulative tax incidence a date announced by the their respective Permanent The GST is expected to clearances and 16 stages Transfer of Customs
with both the transactions GST Council. In the defence Account Number (PAN) increase efficiency in inter- of export cargo processes to Custodianship from AAI to
being taxed equally. of the logistics industry, and the National Securities state transportation of good the minimal. AAICLAS.
as petroleum is one of Depository Limited (NSDL), at reduced costs and to act Customs EDI facility at Flight Connectivity
Thus, the multiple the major inputs for this which maintains the Tax as a formidable deterrent all AAICLAS cargo terminals. issues at Surat, Aurangabad,
warehouse strategy industry, it would be a Information System (TIN), to across-the-border 24x7 International Amritsar, Guwahati airports.
becomes ineffective in welcome move if petroleum will also look after the GST corruption and monopoly cargo clearance facility at To house the offices
reducing the inter-state were to be ‘non-exempt’ right database. This integration of local booking agents, by Chennai/Kolkata and other of some of the Regulatory
tax incidence. It has also from the start. of the indirect tax system allowing broader scope for airports. Authorities viz. Animal
shift the pattern of supply with the income tax system fair play which benefits all To synchronise the Quarantine, Plant
assignments, supplier This would enable will enable authorities to parties involved – business, deployment of manpower in Quarantine, FSSAI/Wild
channels which lead to logistics companies to avail triangulate information, consumers, states and the respect customs, facilitating Life Authorities, APHO,
a change in transport credit for the petroleum used thereby automatically Centre. There may be some agencies and other Drug Controller and Textile
routes for logistics in the course of providing leading to improved negatives of the GST policy stakeholders for 24x7 cargo Committee under one o e roof
on
companies, accordingly. logistics services. tax buoyancy. Also the like fuel, a prime element, clearance. at cargo terminals.

GLOBAL

Jet signs MoU with Air France KLM Cargo


J et Airways Cargo and
Air France KLM Cargo
has signed Memorandum
codeshare
between the
agreements
partner
carriers. Pradeep Kumar,
work closely to co-create
new and industry-leading
products and services for
and gateways, both in
India (Mumbai and Delhi)
and in France (Paris-
of Understanding (MoU) Sr. Vice President, Jet our clients.” The MoU will Charles de Gaulle) and The
to shape and further Airways Cargo, said, “We enable the partners to Netherlands (Amsterdam
strengthen their existing share the ambition to jointly offer a comprehensive set Schiphol).
cargo cooperation. The explore and exploit the of higher value services
signing of the MoU is vast opportunities in the that are complementary Marcel de Nooijer,
especially significant, as it air cargo market via mutual including those on high EVP, Air France KLM Cargo
complements the positive synergies in the areas frequency routes as well said, “This agreement
developments that have comprising our routes as bringing in new and stipulates again the
been evolving on the and networks, as well as unique destinations into importance of strong
passenger side of the warehousing amongst the servicing framework partnerships in the air
business via the ongoing others. We also intend to via their respective hubs freight market.”
12 CARGOTALK DECEMBER 2017 OPINION

Indian logistics sector : Poised to grow


Globally, India jumped 30 spots this year on the World
Bank's ease of doing business ranking list, securing
a place among the top 100 countries. CARGOTALK takes
a look at the current scenario and how government
initiatives has helped the industry to grow efficiently.

KALPANA LOHUMI
Ashish Asaf
MD-CEO, S.A. Consultants & Forwarder

India has jumped to number 100 in the latest ‘ease of


doing business’ report for 2018 released by the World
Bank but if we shed light on logistics industry, there are
various bottlenecks. The regulatory environment in India
is clearly not business friendly. Many of the regulations
are unnecessary and dispensable. There is a multiplicity
of governmental authorities at the national level, state
level and the local level. And there are too many agencies
at each level. The compliance with the laws gets complex
with the vagaries in implementation. The administrative
delivery mechanism still relies heavily on the subjective approach of officials; technology
platforms for service delivery are available only in a few places. Infrastructure is also
a critical element and undoubtedly the government is working on to make it easy like
the recent implementation of GST scheme, dedicated freight corridors which is still
in process. It would benefit the sector more if the ‘Make in India’ gets an edge over
the period. But that is not enough, the systems must facilitate seamless movement
of cargo within the country, as well as at the ports, which handles more than 90 per
cent of the export, complete digitalisation, promotion of coastal shipping also needs
governmental intervention. Apparently, the central government is working on all these
fronts, and some results would become visible soon.

Amar More
India Cargo Award Winner 2017 &
CEO, Kale Logistics Solutions
In the wake of globalisation, the Indian logistics
industry has attained immense significance owing to the
increase in the volume of pan global trade. India has stood
out this year registering a phenomenal index rise in the
‘ease of doing business’ report and is currently ranked at
the 100th rank. With India scaling high on these rankings,
the logistics sector is expected to be poised for a rapid  
growth in future. The Indian government’s strategic and J The regulatory environment in India is clearly not business friendly.
focused approach has been incredibly instrumental in Many of the regulations are unnecessary and dispensable.
achieving the current ‘ease of doing business’ rankings.
To support these rankings, government has undertaken several initiatives like J The systems must facilitate seamless movement of cargo within the
establishing logistics parks, improving rail/ road and aviation infrastructure. They country, as well as at the ports which handle more than 90 per cent
have also adopted several policy reforms like GST implementation, ‘Make in India’ of the export.
initiative, National Integrated Logistic Policy, 100 per cent FDI in warehouses and food J Developing a robust logistics infrastructure to eliminate industry
storage facilities, e-commerce penetration, economy revival etc. to boost the logistics
bottlenecks should be the focus.
sector. From the logistics industry perspective some of the notable changes at ground
level have been introduction of SWIFT (Single Window for Foreign Trade), electronic J Government can drive standardisation in the logistics industry by
delivery orders, usage of digitally signed documents to eliminate unnecessary paper, making paperless transactions and use of single window platforms, a
SVB branch process simplification, promotion of AEO, successful implementation of mandate at ports and airports
DPD/DPE, deferred duty payments, reduction in number of mandatory documents J The Integrated Risk Management System will ensure that agencies
for import/export, advance filing of documents, etc. These initiatives have resulted
don’t select consignments routinely for examination and testing.
in improvement in dwell times, drastic reduction in demurrage, better working capital
management for exporters/importers. J Another major initiative is the reduction of standard documents
which are required for the import and export.
Developing a robust logistics infrastructure to eliminate industry bottlenecks J With the government agreeing to include warehousing under the
should be the focus. The adoption and emulation of technology in the logistics domain infrastructure umbrella, the logistics sector has received a much-
needs to be encouraged. Government can drive standardisation in the logistics
required boost.
industry by making paperless transactions and use of single window platforms, a
mandate at ports and airports. National air, rail, port and road community systems are J On the transportation side, improvements on the road networks,
required to bring the stakeholders together on a single platform to eliminate unwanted availability of organised transporters, enablement of IT platforms
paper and delays in shipment processing. Allocating pertinent budgets and human for visibility and the shortage in availability of drivers leads to
capital to plan and strategise the development of logistics sector must be considered. huge complexities.
Setting up logistics parks and offering them concessions like SEZ get, can be some
options for driving ‘ease of business’ across this domain.
OPINION DECEMBER 2017 CARGOTALK 13

and eliminate bottlenecks

Vikram Mansukhani
Head - 3PL Division, TVSLSL
With the ‘Make in India’ and GST centered reforms
coming into force over the last two years, it is absolutely
clear that OEMs will deeply partner with their logistics
service partners to make their vision of growth and
market share, a reality. With the government agreeing to
include warehousing under the infrastructure umbrella,
the logistics sector has received a much-required boost.
However, this is only the beginning of the journey to make
doing logistics business truly easy in India.

There are multiple approvals and compliances required to be in place separately


as a warehousing service provider and as a transportation service provider. The
warehousing infrastructure in the country has not kept pace with the requirements
either in terms of quantity or quality. On the transportation side, improvements on the
road networks, availability of organised transporters, enablement of IT platforms for
visibility and the shortage in availability of drivers leads to huge complexities.

Logistics in India as an industry is going through the same metamorphosis that


IT went through almost 20 years back. We need to learn from that experience and
proactively create a complete eco system around logistics to make it a successful
industry which attracts new and best talent. We are still about five to seven years behind
most developed nations in terms of ease of doing logistics and business. The good part
though is that the current government too is mindful of this and is heavily engaged in
PPP initiatives to improve the overall scenario.

Huned Gandhi
Managing Director – India, Dachser
Under the ‘ease of doing business’ umbrella, a lot of
initiatives have been taken to facilitate international trade.
These steps and actions conducted by the Central Board of
Excise and Customs (CBEC) are not only regarded as very
beneficial by Dachser.

The SWIFT clearance is as a major positive contributor to


making business easier. It enables importers and exporters
to file a common electronic 'integrated declaration' on a digital
portal, considering the numerous customs requirements. Bharat J Thakkar
This does not only facilitate customs clearance but also makes the supply chain Past President and Permanent Member - Board
more transparent. of Adviser, ACAAI and Co-Founder & Joint
Managing Director, Zeus Air Services
Since July 2016, the increased use of electronic and mobile platforms also
contributes to accelerate clearing for importers acting under the Authorized Economic It’s the stakeholders’ responsibility to overcome and
Operator (AEO) programme. accept the changes that has come across the board with
‘Digital India’ dream. Digital business solutions must be
At the same time, CBEC introduced an Integrated Risk Management facility aimed at aiding companies in their growth and helping
for Partner Government Agencies (PGAs). The Integrated Risk Management them to understand their offline and online requirements.
System will ensure that agencies don’t select consignments routinely for This spectrum of expertise should cover through PHP
examination and testing. The choice will be based on principles of risk ASP(active server page) and development with JSP (java
management. This will greatly expedite clearance from all concerned parties and help server pages)with backend as well. Solutions delivered
to channelise resources. must be cost-effective at the same time.

Another major initiative is the reduction of standard documents which are required for E-business is future of all the verticals. In my opinion, e-commerce solutions must
the import and export. If no specific compliance requirements apply, only three documents be collaborated with tailor-made solutions which will enable companies to reduce time
have to be issued, namely the Bill of Lading, the invoice cum packing list and the import and get closer to their customer by web connecting solutions.
declaration. This approach contributes a lot to reduce complexity.
At customs, single window has brought transparency and reduced dwell time for
Considering these developments, the Indian Customs is amongst a few select imports. The same must be implemented for exports of pharma and leather products
countries that have a functional single window clearance including multiple PGAs and so that these can move faster, by doing away with regulators, insisting for manual ‘No
integrated risk based selection criteria which is a crucial step to ease business on an Objection’. The next step is becoming paperless by 2018. Our industry demands all
international scale. processes should be system-driven.
14 CARGOTALK DECEMBER 2017 AWARDTALK
What Bharatmala entails for logistics sector
The outlays under the Bharatmala project covers improved connectivity particularly on economic corridors and
border areas. Our esteemed India Cargo Awards winners share their views on this ambitious project.

CT BUREAU Best Logistic Service provider- Ocean (North & East 2016):
Asia Shipping India
Improving connectivity
Amit Tandon, Managing Director, Asia Shipping India, feels, “With the stress on ‘Make in India’,
‘Skill India’ and other developmental initiatives, India is poised to become a leading economy
in the world. For this to materialise, a robust network of roads to connect the far-flung areas of
the country is most essential for movement of raw materials and finished products. With this
objective in view, government has launched the Bharatmala programme with a vision to connect
the far-flung, tribal, backward and underdeveloped parts of the country to the developed cities
and gateway business centres.”
“The scheme also proposes to undertake completion of the 10,000 kms of stretches remaining
under NHDP launched by Atal Bihari Vajpayee government in 1998. Total outlay proposed is
`5,35,000 crores. With this programme in place, India could bring down the logistics costs.”

Best Air Cargo Terminal Operator (North & East 2016):


Delhi Cargo Service Center
Empowering existing transport system
Venugopal Bangera, CEO, Delhi Cargo Service Center, shares, “Bharatmala project is one
of the major decisions taken to empower our existing transportation system as well as a major
step towards the economic growth of our country with regards to logistics. The vision of con-
structing 83,000 km of highways which will connect almost all the border states of country and
even the areas which are untouched as of now. It would be a huge investment to strengthen the
logistics infrastructure which would help in further increase in employment, development of new
industries, new business setups and so on. It will cover a vast Indian coastline and also ensure
construction of roads where there are no roads. And once the connectivity would be there
between the ports, coastal areas, hilly areas and the states, manufacturers will get the options
to connect themselves with the international market. This project of improving the connectivity
between Rajasthan, Tamil Nadu, West Bengal, Odisha, Uttrakhand and many more states will
not only ensure growth of business at domestic level but also at the international level.”

Indian logistics to multi-fold Best Multimodal Transport & Logistics Company (West & South 2017):
Bullet Logistics India
Biju Jacob, Managing Director, Bullet Logistics India, says, “Bharatmala
project will make Indian logistics industry grow in multi-fold because it has
been designed in such a fashion that most of the untouched and undeveloped
states and destinations will come in easy access and fruitful connection with oth-
er part of the country. In logistic business, it is better to take a merry-go-round
for distribution instead of multiple up and down trip to reduce the operational
cost as well as transit time with availability of alternate options of new routes.”
“Bharatmala connection will compress transit times and free flow of commer-
cial vehicles as earlier, the Golden quadrilateral has reduced the transit times,”
he adds.

Best Global Logisti


Logistics Company (North & East 2016):
Cargo Movers

Bridging infrastructural gaps


J.K. Arora, Managing Director, Cargo Movers, believes, “Today within India, movement of truck
containers take too much time as compared to developed countries, by means of world class
highways transport time and less cost, less exporter transit time, increases the efficiency.”
“Optimising efficiency of road traffic movement across the country by bridging critical
infrastructure gaps will increase the business competitiveness, less traffic congestion and
accidents along with a surge in tourism,” he adds.
16 CARGOTALK DECEMBER 2017 TRENDS
2017: A year that witnessed ups and downs
As the year comes to end, CARGOTALK delves into the year that was and the projections by eminent industry experts of
what the upcoming new year has in store for the logistics industry.
KALPANA LOHUMI
Dileepa B.M
India Cargo Award Winner 2017 &
CEO - Bonded Trucking
Shreeji Translogistics

2017 was very good as compared to the previous years. There


is growth in tonnage and turnover. After two to three years down
fall, we have seen some growth in cargo movements this year.
We are expecting the same growth in future also. At the same
time, we need some relaxations from customs side to operate
bonded trucking. Rules for bonded trucking are not friendly to trade. We have bought this
matter to the concerned custom officials.

We are planning to start our bonded trucking operations from Amritsar and Jaipur in 2018.
In November 2017, we started our bonded trucking movements from Vishakhapatnam to
various other airports in India to achieve 25-30 per cent growth in tonnage and turnover Stanley Gomez
compared to 2017. Managing Director – Indian Subcontinent
Navigator Visa Global Logistics
Transportation industry is one the most affected industries after demonetisation. We need
cash of two to three lakh daily in each station, to give amount to drivers for their diesel For NVGL, it had been a fantastic year with our new Joint
and toll charges. As cash withdrawal limit was there, our business became stand still. But, Venture with the Visa Global Group. We surpassed our own
somehow immediate arrangement was made with Petrol Pump Owners to give diesel to our record by growing almost 35 per cent in the first half of 2017
trucks. We made payments to Petrol Pump Owners directly by bank. Later it got streamlined. so for us the reforms worked out as a blessing and positive. Of
After GST implementation, the transit time has drastically reduced, as there is the any course, we also expanded with own offices in over 12 countries,
check post in the state borders. Earlier, our trucks use to stand hours together to cross the becoming one of the largest freight forwarder specially in Italy
check post, verifying the documents, etc. Now, it’s been removed and free flow of trucks into – India trade lane.
the city has helped us a lot.
An easy CAGR growth of around 35-40 per cent is very well planned and established with
long term contracts and projects we have signed with our global clients. We will continue to
grow and expand our network in Indian subcontinent, specially Colombo and Bangladesh,
etc. 2017 was not a very endearing year for the industry as a whole with various new
changes and reforms by the government especially with demonetisation and GST all being
enforced in very short intervals, but I personally feel these measures are aimed towards
building a more structured and well stable and regularised economy, so I think it would be
very beneficial for India and recovery and growth should be good in 2018.

R Shankar
CEO
TVS Logistics Services India

2017 has been a roller coaster year for logistics industry


but for the most part I would say it was positive. GST has
been a progressive step in the right direction and the
recent announcement to grant infrastructure status to
warehouses is encouraging.

Barring the initial uncertainties during the early implementation


of GST, overall it has been a good year for TVS Logistics. In terms of revenue, we had a
high-teen growth spurted by the underlying volumes of our customers and also due to Jaideep Raha
the new contracts signed in this period. TVS Logistics also realigned their India structure Managing Director
to consolidate the business in this region and provide a stronger seamless supply chain Jetex Oceanair
suite to our customers. We were recognised for our operational excellence and expertise
in supply chain management by the industry and our peers in the form of 12 awards in the 2017 was very turbulent for the entire industry. We had to cope
last 8 months. From an auto sector perspective, we are growing faster than the industry. up with lots of unpresented issues like demonetisation and
GST. This impacted the industries cash flow systems greatly.
India is the fastest growing economy in the world and as the reform impetus continues, the There has been a slowdown. 2018 seems to be better and
surging GDP is expected to grow even faster in the coming months. I expect 2018 will see much steady as we don’t have any more bouncers from the
stronger 3PL performance, and realignment of supply chain in favour of optimisation of government in 2018. I feel that the next year will be a beginning
warehousing space and network capabilities to drive greater efficiency – in line with GST. In of a turnaround for the freight Industry, though the total turn
the long term the government and industry should partner to introduce initiatives to reduce around would take least five years. We expect to have a steady growth of about 20 per cent
the cost of logistics and bring it on a par with international standards at 8-9 percent of GDP. in turnover and better yield.
I therefore, look forward to more investment in better road networks, higher adoption of rail
networks and waterways, more mechanised operations and development of supply chain Despite challenges like demonetisation and GST, we are still carrying on our business and
professionals and skilled ground staff across all levels. being on track is the biggest achievement.
Contd. on page 18 X
18 CARGOTALK DECEMBER 2017 TRENDS
X
Contd. from page 16

Thoughtful changes expected for 2018


Rahat Sachdeva
India Cargo Award Winner 2016 &
Vice President
Rahat Continental

2017 has been a great year. The industry has experienced


better volumes and higher revenues as compared to the last
year. There is a lot of positivity around and speculations are
that 2018 will be even more better. DIAL has opened doors for
transit shipments via Delhi airport which was the most excellent
move. It made Delhi airport transit hub for freight generating out
Bangladesh, Sri Lanka and China to Europe and USA. This opened doors for many airlines
in and freight forwarders holding capacity to cater more beyond the local originating freight.
I am predicting at least 15 per cent growth in air freight and 10 per cent growth in ocean
freight segment in terms of tonnages, whereas the revenue would be approximately 25 per
cent in 2018 as compared to this year. India as a country is going strong and has great
years lined up ahead for the manufacturing and supply chain industry. Puneet Srivastava
Regional Manager Cargo
Aeeroworld Aviation India

Cargo industry saw growth in 2017 after two consecutive years


of slowdown. Specially, air cargo increased due to congestion
at port. India has good export for pharma/leather goods/spare
parts to Russia and CIS. We in Uzbekistan Airways saw around
25 per cent growth of these products to Russia. 2018 again
looks promising for export and we are hopeful to increase
our market share in the next year. The next year seems very
promising for air cargo trade. Industry will see more reforms in coming months. Exporters
are hopeful to increase the orders. Pharma export is going to increase ex-India to Russia
and CIS sectors. Though introduction of GST and demonetisation made some effect on
cargo industry, but, for a time being only. In my view, if government can decrease the GST
rates on air export, it will be more beneficial to promote export in India. Uzbekistan Airways
is a leading carrier for CIS, in 2017 we were fully focused to increase our market share and
position of product. We have seen remarkable growth in cargo tonnage ex-India. We also
Kushal Nahata operated charter flights which made us carry extra tonnage.
Co-founder & CEO
FarEye

Technology revolution has taken over every industry and


supply chain is no exception. Although 2017 has seen logistics
companies experimenting with PUDOs, rising demand for
time-slot deliveries and parcel lockers, the adaptation to these
models have not been faster as expected, especially in India.
With the advent of AI & digitalisation, logistics & supply chain
industry is getting a makeover, altogether. Most of the trends
in 2018 have been started in 2017 itself, the once-future technology like google glasses
and drones have are already hit the industry and making progression for improving speed,
convenience and delight to the customer. The industry is expected to grow at the CAGR of
16 per cent between 2018 to 2020. With a new government, many policies are expected to
be implemented which will give a fresh impetus to India’s growth engine particularly in the
corporate and SME sector which in turn will expand demand for the logistics sector. Overall,
the trend is moving towards simplifying the cumbersome process, eliminate mundane and
repetitive tasks to enhance the effectiveness of the organisation and improving customer
delight. To handle the changing demand and the fluctuations in the orders, logistics
companies are making their operations elastic to plan the capacity according to the
requirement. This has emerged the need for elastic logistics.

Ajay Khosla
Business Head
Emiza Supply Chain Service

In 2018, companies will need to make thoughtful changes into


processes and SOPs to match with the pace of these trends.
This ever-big competitive environment putting company’s
culture on alteration and the backbone of all industries, the
‘LSPs’, are not expectations, here it can be tough to change
where traditional ways are being fundamentally changed or
even vanished. LSPs are now focusing on digital suitability, cost
competence, asset yields and innovation so they can meet changing expectations of trade.

GST implementation will also support LSPs by consolidation of warehousing locations and
move towards 'hub and spoke' system. LSPs are now spending a significant amount of
money on adaptation of cloud computing, Internet of Things (IoT), robotics. The development
of transportation and logistics infrastructure, dedicated freight corridors, logistics parks, free
trade warehousing zones, port modernisation, development of inland waterways are adding
to competence and will be the driving force to growth.
20 CARGOTALK DECEMBER 2017 INTERVIEW

Reinvigorating the warehousing sector


Rajesh Jaggi, Managing Partner, Everstone and IndoSpace Real Estate, talks about the trends, growth and the nitty
gritties involved in the warehousing industry post the implementation of the GST regime.
CT BUREAU
From mere brick and In the next five to
mortar shelters to
highly sophisticated seven years, we
stockrooms, the will have around 50
warehousing industry
is getting a quick mn sq ft of modern
makeover. What is developed and
your take on this?
The improving domestic under-development
economy, the fast- growing warehousing park
e-commerce industry and
Rajesh Jaggi
technological innovations Managing Partner
are leading to the makeover Everstone and IndoSpace Real Estate
of warehousing industry. systems available, from
We are also witnessing to upgrade themselves basic bar coding systems
a technological overhaul for greater reliability and to advanced, real-time
in warehousing, such as efficiency, as well as allowing data-streaming ones that
automation. IndoSpace for easier adjustment connect everything – from
designs and builds to customer demands. initial supply to shipment in
warehouse facilities that IndoSpace has planned the warehouse.
cater to the complete modern technological
infrastructure requirements developments and built Better tracking:
of clients and enables them infrastructure that enable Everything in warehouses
to implement the latest customers to introduce can be tracked faster
technologies and automation. latest innovations in our because of technology.
We also provide build-to-suit warehouses. As industry At any time, almost
options for proper planning leader, we are witnessing the anyone in the organisation
and implementation of any following changes: can find out where a
technology required, such specific product is. This
as conveyor belts, in rack are of top quality to allow greater overall efficiency, industrial real estate in India, Innovation in avoids product loss, which,
sprinkler systems, high for easy manoeuvring of especially among larger and has a head start in catering storage and shipping: in turn, makes warehouses
roof for automated racking forklifts for storage or pick modern firms. GST is enabling to the surge in demand. In Warehouses now store more efficient.
systems, etc. and pack. This also allows companies to plan their the next five to seven years, more diverse products.
for abundant creativity manufacturing and distribution we will have around 50 Many organisations have R o b o t i c s :
As stacking heights in laying out plant and locations more strategically. million square feet of modern evolved innovative systems Robots are slowly changing
have increased, floor equipment, be it for a light There is a clear trend developed and under- to facilitate storage and the face of modern logistics/
quality has become even manufacturing factory or a towards larger, more modern development light industrial shipping. One of these is the warehousing resulting in
more critical. Imperfections logistics warehouse. warehouses spread across and warehousing parks from chaotic storage system by more efficiency across
in floors are magnified fewer but better locations. the current portfolio of 30 which new items are placed the entire supply chain.
when products are stored How has the million square feet. on any available shelf to save Robotics in warehouses
up to 30 feet high. Super- consolidation of IndoSpace sees even time. The floor layout seems can help in inspections,
flat floors help here. warehouses helping more robust growth in the What latest to show no logical scheme, security, inventory
IndoSpace warehouses the industry to grow? future as a result of GST. technological but the products can be management, and data
with super-flat floors are The uniformity in taxes There will be more organised developments could tracked technologically. gathering. With the surge
structured in such a way and removal of interstate players in the business as be expected in the in e-commerce activities,
that their vast floor spaces checkpoints is leading to demand increases and near future? Software upgrade: robotics can help people
are available, unhindered consolidation of warehouses IndoSpace, being the largest Advanced technology There are many inventory asste
and companies work faster
by walls or columns and into bigger spaces and and most modern player in has enabled warehouses management software and boost productivity.

An entry to efficient loading and unloading


Gandhi Automations is the leading automated entrance automation and loading bay equipment company that offers
high speed doors. It is certified under the ISO 9001:2008.
CT BUREAU with innovative and the curtains, assembled time. The alternating metal high volume traffic. Sturdy
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igh Speed Doors aluminium extrusions, inserted ensures high is the intelligent door for
H designed
manufactured by Gandhi
and Fast moving functional
and reliable doors are
provides for a wide range of
polyester sections available
wind-resistance. medium and large entrances.

Automations are sturdy, needed in industrial and in a variety of colours. Wide, Prime High Speed High Speed Doors
dependable and are the commercial contexts. Gandhi full-width window panels Doors are the ideal solution for external entrance are
ideal solution for medium designed and manufactured ensure a safer traffic and for internal and external equipped with spring steel
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and technology The modular structure of tearing, saves money and blowing and in rooms with curtain stability.
22 CARGOTALK DECEMBER 2017 INTERVIEW

Velogic: Engaging the best of bright India


Nawaz Gobindram, Regional Manager - India Subcontinent, Velogic (the logistics arm of Rogers Group), talks
about his vision for the company and the opportunities that lie in the Indian market.
CT BUREAU Tuticorin; we have 32 dynamic team focused on Have you faced any customers with financial
offices worldwide, spanning customer service. Our team challenge with GST? protection and service.
What services do you eight countries. is very knowledgeable about For GST, exporters and
offer to the trade? the demand of customers. service providers should How has the Indian
We made our presence We were thinking of We believe in training, so we be registered. We had market evolved for
in India 10 years ago. Today expanding to Ahmedabad have built a robust training some difficulty in dealing the group?
we have six offices with and Kolkata, but kept the programme, where we cater with this, but we had made When you look at the
a headcount of 65. We plan on hold because of to all the latest technologies; arrangements to take- bright spots in the world
are offering products like the implementation of GST. we cover digital marketing, up the challenge well in market, India is one of them.
air export/import, sea We wanted to first tackle e-commerce, IoT, artificial advance. Our special IT and India’s 100th rank in ease
export/import, warehousing, GST with registration of our intelligence, etc. We study accounts team in Mauritius of doing business is really
transportation, customs offices in their respective the activity of each and accompanied us during this good. We have extensively
brokerage, project states. Now that we are every customer and then time. Our employees from been promoting the country
Nawaz Gobindram
management etc. Also, GST compliant, we will be provide a tailor-made Mauritius came here to help all around the world. For the Regional Manager - India subcontinent
and most importantly, setting up the two offices by solution for them. In between us in implementing all the first time in history, a country Velogic
we are a shareholder of beginning of 2018. these processes, we also GST processes. has moved 30 places in a
Air Mauritius. In Mauritius we educate our customers; it’s a year. Another advantage
are also into packaging of We also want to do two-way traffic. What is your take on that India has is that it is a
special sugar for exporters. some acquisition of Indian GST implementation multi-product country, quite Velogic has been
Mauritius is known for freight forwarders. This is We educate our internal in India? unlike others. offering quality
sugarcane. We also do under inorganic growth, as well as external customers GST has been going
packaging for big brands which will help us in growing about where we need their on smoothly, however, there What is your take service in India. With
in the UK; we have a and positioning ourselves support and where they are some amendments still on governmental our core values, we
factory there where we buy in the country. We strongly can have our support to to be implemented by the initiatives and
sugarcane and package believe India is a growing streamline the process. No government because in a the attention always try to offer a
it locally. market and we need to be shipment is small for us to country like India, it is difficult they’re giving to single solution to
there. This will help us in handle. We bring attention to get it smooth in one go. this sector?
How many offices do building our network and we to all shipments equally. It Also, these amendments With several initiatives our customers
you have in India and could expand our network in has been 10 years since are helping us streamline in place, the government
abroad? Is expansion more than six cities. Velogic has been offering the process. is trying to bring big
on the cards? quality service in India. structural changes that
We have six offices What is your USP? With our core values, we We are also a WCA will automatically bring journey has begun, the
in India based in Delhi, We are different from always try to offer a single member, which helps us competitiveness to the government is doing all
Mumbai, Chennai, other service providers in the solution to our customers for connect with the world at a Indian market, on a par with it can to bring inng down the
Bengaluru, Tiruppur, and sense that we have a strong, their convenience. click. This also benefits our global trends. Now that the logistics cost.

DCCAA elects new managing committee


The recently-held Delhi Customs Clearing Agents Association (DCCAA) AGM at Siri Fort, New Delhi, elected new
office bearers for 2017-19. PS Atree has been re-elected as the President.
CT BUREAU

T he Delhi
Clearing
Association
Customs
Agents
(DCCAA)
recenlty held its 34th
Annual General Meeting
(AGM) on November 19
at Siri Fort Auditorium in
New Delhi.

At this AGM the


association has elected new
office bearers and managing PS Atree Puneet Jain Gurvinder Singh Bhim Singh Jain Harjit Singh
President Vice President Hony Secretary Hony Joint Secretary Hony Treasurer
committee members for DCCAA DCCAA DCCAA DCCAA DCCAA
the year 2017-19. After
completing his 2015-17 Gurvinder Singh-Hony Devendra Singh issues at its first meeting, represented in all related round the year and assist
tenure, PS Atree has been Secretary Bhadoria which would be the focus fora,” informed PS Atree. equipping our members to
re-elected as President of Bhim Singh Jain-Hony Jogesh Sethi areas for 2017-19. “We will Currently DCCAA is having comply with new trends and
DCCAA. The office bearers Joint Secretary Kuldeep focus more on transparency, 952 members and the new requirements, especially
and managing committee Harjit Singh-Hony Ram Naresh Yadav awareness on various committee has set a target regarding technology and
members are the following: Treasurer Satya Pal Singh issues, trends in customs to increase the membership digitization,” added Puneet
Vaneet Aggarwal clearing business and strength up to 1500 during Jain. In addition, for the
Office Bearers: Managing Committee skill development. To raise 2017-19 tenure. first time the association
PS Atree-President Members: The new managing the industry issues with will also appoint a legal firm
Puneet Jain-Vice Anil Kumar Chand committee of the association an objective for desired “We will work for for benefit and nd support to
nd
President Deepak Kumar Verma held discussions on several solutions DCCAA will be awareness programmes its members.
24 CARGOTALK DECEMBER 2017 NEWS

Haryana joins hands with Verbind


The state government of Haryana has signed an MoU with Verbind for a logistics project worth an investment of
`20,000 crore. This project shall reap in suitable employment opportunities to around 6 lakh people.
CT BUREAU near Gurugram. The public- Commerce, Government manpower, highest per major industrial corridors of Index 2017, Haryana is
private project is expected of Haryana, said, “Haryana capita income, and huge Delhi-Mumbai and Amritsar- ranked fourth among the

G overnment of Haryana
signed pact with
Verbind at the sixth edition
to generate employment for
six lakhs. The HSIIDC will be
the nodal agency to execute
is ranked first among north
Indian states in the Ease
of Doing Business Index of
urban market were the key
factors driving growth of the
state.” Acknowledging the
Kolkata as main contributors
to the growth of the state.
Indian states. The state
also ranks first in terms of
Governance and Political
of CII Invest North 2017 in the project. the Government of India, state’s strategic location, As per the National Stability. Speaking about
Mumbai. The logistics and and sixth in the country. he listed proximity to high Council of Applied Economic the conducive business
trading hub will be spread Sudhir Rajpal, Principal Investor-friendly policies, consumer base of NCR Research (NCAER) State environment, Rajpal spoke
over an area of 600 acres Secretary, Industries and young population, skilled and the passage of two Investment Potential about the online portal ‘Invest
Haryana’ which has more
than 65 business services,
which are completely online
without manual interface,
making the application
process transparent
and clearances faster.
Government of Haryana
has given more than 2,000
clearances through their
online portal in six months.
Terming it as ‘Single
Roof Solution,’ he said 14
state departments work
under one roof to ensure
faster clearances.

Incentives galore
The state government also
gives multiple incentives that
further reduce the cost of
doing business in Haryana.
Through its Enterprise
Promotion Policy, Haryana
government offers SGST
subsidy of up to 75 per
cent for the first five years,
stamp duty refund of up to
100 per cent, apart from
other incentives under
development charges and
employment subsidy.

“Haryana is a progressive
state – a destination for foreign
and domestic investment, and
the structural reforms by the
state government has led to
positivity among investors,”
said Shrivallabh Goyal,
Director of Model Economic
Township (Reliance).
Applauding the central
government’s EoDB initiative,
he said the EoDB model
has increased transparency,
while adding that reforms
such as labour reforms,
GST and RERA have made
the business climate in
Haryana favourable.

On the sidelines of the


sessions, the Government of
Haryana held B2G meetings
with businesses and potential
investors. More than two
dozen companies, including
World Trade Centre, Hinduja
Group, IL&FS among others
approached the state
government team led by
Rajpal to explore business ess
s
opportunities in the state.
26 CARGOTALK DECEMBER 2017 INTERVIEW

A ‘cube’ to cement the supply chain gaps


R Shankar, CEO, TVS Logistics Services India, shares his billion-dollar vision and how the company will push
forward with its ‘CUBE Strategy’ on the three pillars of customer, capability and geography.
CT BUREAU
What are your
further plans?
TVS Logistics is
focussed on providing end
to end value added supply
chain solutions to our
customers by identifying
gaps in the market in terms
of service delivery and
anticipating future trends and
business requirements. We
R Shankar
are the leader in automotive CEO
supply chain in India and TVS Logistics Services India
one of the top service
providers for Consumer
Durables and Engineering
sectors. This apart, TVS The industry at large
Logistics is entering many create a differentiation. As an verticals and our asset light have polished and stabilised advantage in the GST era.
new sectors and introducing Indian company with deep operations are enabling us to over the years. Customers are increasing
is moving towards
specialised capabilities that knowledge of ground level scale quickly and add quality demanding high level of organised 3PL
are enabling us to develop realities of doing business infrastructure as needed. What are your plans transparency, discipline players and that
deeper partnerships with in India but with global To fuel this expansion to leverage post GST to timelines, adherence to
our stakeholders. capabilities and footprint, we phase, TVS Logistics will opportunities in the compliances and investment puts TVS Logistics at
are able to deliver true value push forward with its CUBE Indian market? in technology platforms an advantage in
The model that we are to our customers. All this has Strategy which focusses on We have made a to stay competitive in this
following includes taking enabled us to participate the 3 pillars of customer, head start with respect to scenario. With the steps the GST
a consultative approach with some customers in their capability and geography. GST by staying proactive that we have taken in last
towards our customers’ strategic planning exercises We will expand with and responsive to the few years; we are rightly
supply chain challenges and evolve long-term our existing customers by developments in its rules positioned to form the perfect
and also actually executing contracts with them. entering new geographical and regulations. TVS alliance with customers. and with the aim to
the co-created solutions regions where our clients Logistics took timely steps As an organised 3PL and become the preferred
on ground for them. Home How are you aiming want to grow. to make certain that our IT with the capabilities of partner and one stop
grown customised IT to achieve the target In addition, in our and accounting systems are a 4PL, TVS Logistics is shop for our customers’
solutions, along with mindful of making TVS existing operating locations modified and made capable able to bring in knowledge supply chain requirements.
investment and application Logistics Services, a and with our current to handle the migration into services, understand We have assimilated
of technology to operations billion-dollar player in customer partnerships, we the new environment. The and use technology and capabilities and technology
has further strengthened India alone? will introduce our global/ realignment of processes operate logistics and supply in the form of domestic
our position as one of the In our quest to provide new capabilities in line in anticipation of post- chain more efficiently. and international
preferred supply chain customers with competitive with customers’ developing GST changes helped us to Our wide network footprint acquisitions. In line with
partners in India. advantage, we have set up requirements to service their successfully transition in and proximity to consumption this approach, we will
an enviable footprint in India larger value chain. this period with seamless and manufacturing locations continue to look at future
Our global acquisitions through 300 plus facilities We will proactively enter customer operations. is proving valuable for us expansion and acquisitions
are giving us access to spread across 29 states. new sectors and add new during empaneling decisions. by how they synergise
international best practices logos to our portfolio, in The industry at large is and complement our
and technical know-how and To achieve the billion- regions where we have an moving towards organised Any expansion plans? existing structure
we are continuously applying dollar vision, we are established base and will 3PL players and that TVS Logistics is an and add value to our o
these to the Indian market to entering new sectors and offer capabilities which we puts TVS Logistics at an entrepreneurial company customers’ operations.

SOUTHEAST ASIA

Celebi organises cargo handling workshop


C elebi Delhi Cargo
Terminal Management
India has organised a
Delhi Cargo Terminal
Management India attended
the workshop at Dhaka.
cheaper than in other
airports and the average
staying period of EU bound
six hours to transshipment
cargo. Mamidala informed,
the company is aiming
of cargos a month from
Dhaka. Edward
“Both Dhaka and Delhi
said,
the logistic service in
the airports for smooth
operations of export and
workshop in Dhaka to Since over 54 per cent of goods at Delhi Airport is to handle 4,000 tonnes can collaborate to improve import businesses.”
showcase Celebi Delhi Bangladesh exports are
Cargo and Delhi Airport as destined to EU, the cargo
the exit Bangladesh solution needs to be rescreened at
to Dhaka customers for a third country and Celebi
their export cargo. Ramesh Delhi Cargo has turned
Mamidala, CEO, Celebi into an indispensable hub.
Delhi Cargo Terminal “We have been handling
Management India, Sanjiv Bangladesh cargo at
Edward, Head-Cargo, DIAL Celebi for last six months
and Arvind Aggarwal, and now handle over 400T
Senior Manager – Business per month,” said Mamidala
Development, Celebi adding that the rates are
VIEWPOINT DECEMBER 2017 CARGOTALK 27

Mapping out a holistic regimen for cargo


The Indian logistics sector needs to determine the present and future needs of cargo industry to make it on a par
with the international standards, says Vikram Puri, CEO, Transworld Technology.
CT BUREAU The disorganised is a lack of IT standard, of the logistics industry. continue to show robust downturn. Cloud technology,
nature of the logistics sector equipment and poor With the increase in the growth of 10-15 per cent integration standards for

T he logistics industry
in India is evolving
rapidly; it is the interplay of
in India, its perception as a
manpower-heavy industry
and lack of adequate
systems integration.

Need for optimal


transportation of perishable
products, the logistics
agencies need to give a lot
annually, leading the pace
of growth of the economy at
large. The global economic
data inter-connectivity and
the creation of a secure
block-chain, while causing
infrastructure, technology training institutions has logistics of importance to enhancing outlook, indeed that of India more pain initially, will
and new types of service led to a shortfall in skilled Good storage and the warehousing facilities. is expected to significantly actually stabilise and safely
providers. So far, isolated management and client warehousing facilities are It is estimated that the improve as India Inc begins ind
n
grow the industry, making
silos for transport, storage service personnel. There important for the growth Indian logistics industry will to tackle the economic it saleable.
and inventory management
have governed the mindset
of the players. However,
the challenge faced by the
industry today in India is
a lack of data interchange
standards, inadequate or
no integration of transport
networks, information
technology warehousing
and distribution facilities.
Regulations exist at
several different tiers
but with compliance still

Vikram Puri
CEO
Transworld Technology

The introduction of
Goods and Services
Tax (GST) in India
further compounded
the technological
and compliance
woes of the industry

a major challenge; the


introduction of Goods and
Services Tax (GST) in
India further compounded
the technological and
compliance woes of
the industry.

The logistics
management regimen has
the capability of overcoming
the disadvantages of the
infrastructure in the short run
while providing cutting edge
competitiveness in the long-
term. There exist several
challenges and opportunities
for logistics sector in the
Indian economy.
28 CARGOTALK DECEMBER 2017 ASSOCIATION

Unravelling global trends of logistics


Shantanu Bhadkamkar, Chairman, International Federation of Customs Brokers Associations, shares his opinion
on the increased focus on environment, trade facilitation, and encouraging manufacturing and manufacturers.
CT BUREAU policies adopted by the another, it is a reality of see on the surface. All such as mining, energy, Please throw some
present government that a global economy, as it is these trends affect India manufacturing, transport light on WTO Trade
How do you find the reflected in the massive not growing as fast as a in the same manner as etc. The countries are Facilitation.
future of custom improvement in ‘ease of decade ago. Hence, the they affect rest of the therefore, learning to be The trade facilitation
broking in India? doing business’ and giving third trend i.e. protection of world. The environmental compliant in these matters agreement puts great
I am bullish about infrastructure status to domestic industry is being issues and the country’s along with security and emphasis on facilitation of
the future of customs logistics industry.While done in a subtle manner. commitment on safety, and yet become movement of goods across
broking business in India former two trends seem It is an undercurrent, environmental protection competitive in the global borders. Hence, the Bali
owing to pro-industry in contradiction with one something you don’t has affected sectors marketplace. package goes beyond tariff
barriers and quantitative
restrictions for ensuring that
all barriers for a free market
access are overcome.

The government of
India is taking huge efforts
in facilitating improvement in
‘ease of doing business’ and
the targets set by the Prime
Minister is ranking better
than 50.

Considering that this


journey started from the
point where our ranking was
142, current ranking of 100 is
an excellent achievement in
three years. The government
needs to strengthen each
segment of economy,
particularly, the MSME
sector by constructive

Shantanu Bhadkamkar
Gallery of Legends, India Cargo Awards
2016 & Chairman, International Federa-
tion of Customs Brokers Associations

I am bullish about
the future of customs
broking business
in India owing to
pro-industry policies
adopted by the
present government

reforms. We should think


beyond financial support’s
aspect, to strengthen
trade facilitation supported
by a smooth logistics
& supply chain system
removing operational a and
al
financial blockages.
30 CARGOTALK DECEMBER 2017 SHIPPING

Maersk unveils global centre in Bengaluru


Maersk has opened a new Centre of Excellence (CoE) in Bengaluru with focus on digital, engineering and
marketing. The centre will support Maersk’s global digital drive by tapping local talent.
CT BUREAU engineering, big data and in Bengaluru to support our we look forward to working
data sciences, artificial global digital drive. India is with the best talent in digital,

L ocated at Bhartiya
City on Thanisandra
Main Road, the facility is
intelligence, and creative
marketing capabilities to
deliver customer insights
already home to Maersk’s
largest global service center
operations employing over
engineering and marketing,”
said Soren Skou, CEO, AP
Moller-Maersk.
expected to employ over and benefits. 8,000 professionals handling
200 professionals over the service delivery and Strategically located
next 12 months, experts “I am pleased to open business relationships. This in India’s Silicon Valley, the
who will bring to bear this new Capability Center is a natural expansion, and centre will be a key enabler
in Maersk’s digitalisation
roadmap by tapping into new
technologies and solutions
to significantly improve
the customer experience.
“The Bengaluru centre
will take us further in our
journey to digital innovation,
improved customer
experience and competitive
solutions for the markets
we serve,” explained Jakob
Stausholm, Chief Finance,
Strategy & Transformation
Officer, Transport & Logistics
Division, AP Moller-Maersk.

Soren Skou
CEO
A.P. Moller-Maersk

India is already
home to Maersk’s
largest global service
center operations
employing
over 8,000
professionals

Navneet Kapoor,
Head of the Global Service
Centres, AP Moller-Maersk
,elaborates, “Bengaluru
has played a pioneering
role towards incubating and
enabling some of the best
global-in-house centers,
start-ups. and product
companies. We are excited
to leverage this unique
ecosystem to invest in
developing a world-class
team and partner with the thhe
broader industry forums.”
ASSOCIATION DECEMBER 2017 CARGOTALK 31

DCCAA to open IIFF centre in Delhi


The Delhi Customs Clearing Agents Association (DCCAA) is planning to start regular class room courses of the
Indian Institute of Freight Forwarders (IIFF) which is the training wing of the FFFAI.
CT BUREAU our fraternity will be in impetus on manufacturing, customs broker community our relationship with Congress 2018 in Delhi
serious crisis. Hence, need infrastructure development, in India with my added the government for due would be an unprecedented

P S Atree, the newly


elected one of the six
Vice Chairmen, Federation
of the hour is to set our house
in order to thrive in customs
broking, freight forwarding
‘ease of doing business’ and
trade facilitation initiatives,”
he elaborated.
responsibility as Vice
Chairman of our Federation.
Delhi would be my special
recognition from all ministries
by obtaining professional
status like CAs and lawyers,”
opportunity to Indian
freight forwarders to expand
their horizon and outlook
of Freight Forwarders’ and logistics business. In focus to coordinate with said Atree. owing to close interactions
Associations in India fact, this sector promises “I am feeling very happy all relevant ministries. on new ideas and trends
(FFFAI) and President, tremendous potential and committed to work Also, my emphasis According to him, the prevailing in the he global
DCCAA, informed that thanks to our government’s for FFFAI members and would be strengthening forthcoming FIATA World logistics market.
in the days to come the
association would put more
emphasis on training and
skill development for their
members, customs brokers,
freight forwarding and
logistics community in Delhi
and surrounding areas.
Atree also shared that soon
DCCAA would take initiative
to open northern region
chapter of IIFF in Delhi to
start regular classroom
courses for industry
practitioners as well as
fresh students. At present,
IIFF occasionally conducts
special classes in Delhi
for customs brokers and
freight forwarders.

PS Atree
India Cargo Award Winner 2016 &
Vice Chairman, FFFAI
and President, DCCAA

The landscape of
customs broking and
freight forwarding
are changing rapidly.
We will have to
comply with the new
requirements

“The landscape of
customs broking and freight
forwarding business are
changing rapidly. We will
have to cope up and comply
with the new requirements
from our customers as well
as government policies. With
traditional method of doing
business and without know-
how about new procedural
and regulatory requirements
32 CARGOTALK DECEMBER 2017 SHIPPING

APM Terminals branches out to Pune


APM Terminals Inland Services has expanded to the industrial belt around Pune. The new facility brings services
typically provided near the port, to the fast-growing hinterland.
CT BUREAU fastest-growing hubs for 60,000 containers annually.
industrial development Services include Customs

A
its
PM Terminals Inland
Services inaugurated
new state-of-the-
and manufacturing
in the Pune district
in Maharashtra.
clearance, bonded and non-
bonded warehousing, empty
container acceptance,
art inland container transportation solutions
depot and supply chain The new facility, which and container repairs which
solutions facility designed is over 12 acres in area, are typically offered near
to serve one of India’s can handle more than ports.The facility is located

150 kilometers inland from


Mumbai. Regional industries
and manufacturing will
now benefit from these
local services.

Soren Skou, CEO,


A.P. Moller-Maersk states,
“Maersk Transport &
Logistics is uniquely
positioned to develop a
one stop solution for all
customer’s needs around
container logistics. This
inland container depot and
integrated solutions facility
is an example of how we can
enable our customers to be
even more efficient and give
their business a competitive
advantage in the market.”

Ajit Venkataraman,
Managing Director - South
Asia, APM Terminals Inland
Services, said, “We have
worked closely with our
customers to accommodate
Pune’s significant flow of
imports and exports and we
can help keep the supply
co
chain simple, cost-effective
and efficient”.

NORTH INDIA

Safmarine
exports 1st
block train
S afmarine
exported the first
block train for Store
has

Door product from


Sahnewal, Ludhiana. The
company has enabled
the movement of 90x20
containers (full rake
capacity) for a single
shipper on one single
train. This milestone was
achieved in association
with Flying Trade India
and Gateway Rail.
Bimal Kanal, Cluster
Manager- Safmarine
India, said, “This serves
as a testament for
seamless service.”
34 CARGOTALK DECEMBER 2017 INTERNATIONAL

‘India, a lucrative market despite GST’


Mark Vale, President of High Growth and Emerging Markets, UPS, talks about the opportunities and challenges
in the emerging markets and where the Indian market stands for the group.
CT BUREAU important high growth Highlights - 3Q 2017
opportunities for UPS. The
UPS revenue rose 7 per cent on balanced shipment
Why has UPS chosen world is changing, more We position UPS as
emerging economies to and more trade is going growth and yield expansion.
develop its business? South, goods are coming a trade enabler for International operating profit climbed 8.9 per cent;
The global economic out of Far East into Africa India. We’re currency-neutral profit up 20 per cent.
landscape is shifting. through Middle East and Daily export volume up 19 per cent for third straight
According to PWC, the gap India is supplying heavily making ourselves
quarter of double-digit growth.
between China, India and to western Europe and more visible for U.S. domestic revenue up 3.9 per cent.
the US, the three biggest US. We position UPS as
economies, and the rest of a trade enabler for India. companies in the U.S. operating profit of $1.2B, including $50M of
the world will widen over We’re making ourselves Mark Vale global network negative hurricane impact.
the next few decades. India more visible for companies President of High Growth and Emerging Supply chain and freight boosted revenue of more than
Markets
could have the potential in the global network. UPS 13 per cent; profits up 9.7 per cent.
to just overtake the US as Investing two billion dollars
the world’s second largest in European infrastructure in the Indian market. UPS’s What kind of
economy by 2050 in PPP gives us the ability to take latest integrated facility challenges are are many different markets in India presently. The
terms. We have spent the Indian small and medium in Hyderabad is another you facing? and we have to sit down government is trying to
last four years building a size companies and give step to support local Challenges are and focus where we should move for a change with
network to connect the world them good services into key business and SMEs and everywhere but in emerging invest our capital. Clearly, steps like GST and
through different resources markets which are Europe offer integrated services countries one of the key UPS has made a decision demonetisation. Although
and operations. Despite and US. The transformation for small package, supply things we look into is to invest more heavily on it was a tough decision,
getting strong opportunities is being witnessed in these chain solutions and investment in infrastructure high-growth markets to these steps are expected
in Europe and US, we are E7 countries. contract logistics for faster for smooth movement of grow more quickly and be be very beneficial in the
keen to continue expanding and more efficient access goods flows. In India, the more connected with the long run for the Indian
our business in emerging How has the Indian to international markets. government is doing great needs of government, local economy. And, moreover,
economies because the market evolved for Initiatives like 100 smart to position the country on customs and customers. developing a talented
“Emerging 7” countries like the company? cities and ‘Make in India’ a par with the international India is definitely one of and competent workforce
India, Indonesia, China, With GST, many attract global brands like standards and continues to them. There are so many is another challengee but
Turkey and others represent opportunities are present UPS to invest in the country. grow fast. Secondly, there positive things going on things are improving.

Cathay gets CEIV Pharma AA starts LA-Beijing service


Cathay Pacific has become the first airline in Hong American Airlines now operates six daily services
Kong to be awarded the IATA CEIV Pharma Certification between the US and China. It has launched the new
accreditation. service to connect cargo traffic between the two nations.
CT BUREAU the expertise of the Cathay CT BUREAU
Pacific team and our

T he certification
underlines the carrier’s
network. This certification
is a testament to our
T he inaugural outbound
flight left Los Angeles
on November 5, with the
capabilities in the treatment ability to offer our first return from Beijing the
and transportation of high- customers the best following calendar day. The
value, time-sensitive and possible air-cargo solution flight is scheduled daily as
temperature-controlled to meet their needs.” a 10:55 a.m. departure from
pharmaceutical products The state-of-the-art Cathay LAX arriving into PEK into 4:20
with speed, consistency Pacific Cargo Terminal at p.m. the following afternoon;
and efficiency. In harness Hong Kong International the return departs PEK 6:30
with aviation industry Airport offers a broad pm, arriving back into LAX at
stakeholders and regulators, Anand Yedery spectrum of logistical 3:15 pm the same day.
Regional Cargo Manager, South Asia,
IATA created the Centre of Middle East & Africa solutions for the airfreight
Excellence for Independent Cathay Pacific Airways industry. Combining American believes
Validators (CEIV) with the sensitive and often advanced technology that inbound from the U.S.,
aim of helping organisations life-saving shipments.” with streamlined work business from shippers will based carrier offering non- welcome the chance not
involved in the air cargo flows to set new service include electronics, medical stop service between LAX only to send their goods on
supply chain achieve Anand Yedery, Regional benchmarks for the and pharma products, and PEK. “We are eagerly American’s service to the US
pharmaceutical handling Cargo Manager, South industry, customers benefit perishables and e-commerce looking forward to this start but we are also giving them
excellence. Asia, Middle East & Africa, from extended cut-off shipments. While outbound of service on this new route the ability to open up new
Cathay Pacific Airways, times, last-minute cargo from China automobile parts which complements our markets,” he said.
Ronald Lam, Director said, “The pharma industry acceptance and reduced for the new generations of existing Beijing services
Commercial and Cargo, has seen double digit growth connection times for hybrid cars, liquid crystal from Dallas/Fort Worth and This route is the sixth
Cathay Pacific, said, in India over the years. transshipments. CEIV is displays and parts along Chicago to China,” says addition to American’s daily
“Cathay Pacific Cargo Our Pharma LIFT product supported by Hong Kong with TV and PC parts are Rick Elieson, President, offering to China, which now
adheres to the highest accounts for eight\ per cent International Airport, which expected to be the main American Airlines Cargo. includes nonstop service
operating standards and of our overall India revenue. sponsors community- goods.The new route further to Beijing and Shanghai
this certification highlights Its success has been the wide certification for strengthens American’s “I am confident that from three key U.S. hubs –
our capabilities in handling result of the product’s organisations in the hee air presence in China, making freight forwarders and Foort Worth
Chicago, Dallas/Fort
these precious, time- features, combined with cargo supply chain. American the only US- shippers in China will and Los Angeles.
36 CARGOTALK DECEMBER 2017 INTERNATIONAL

India-UAE to foster trade opportunities


Edwin Lammers, Vice President for Commercial and Business Development, Khalifa Industrial Zone Abu Dhabi,
talks about the trade aspects between India and UAE regarding the food export and import.
CT BUREAU What are the
opportunities for
Kindly highlight Indian exporters?
on the India- The UAE is expected to
UAE investment consume 10.1 million tonnes
prospects? of food by 2021 and the retail
The UAE is a gateway sales value for packaged
to 4.5 billion consumers food goods will grow to a
across several regional projected $ 5.6 billion tonnes.
and international markets
and is the second largest The region continues
economy and the most on the same trajectory, with
important business hub in the GCC being a major Edwin Lammers
Vice President for Commercial and
the GCC. It is also the largest hub for food re-export Business Development
re-export centre for food and the value of its food Khalifa Industrial Zone Abu Dhabi
products serving the entire retail sector estimated to
MENA markets. be $106 billion – opening production industry including How do investors to the UAE itself, the wider Sea, East Africa and other
considerable opportunities Spinneys and Sadia. The benefit from region and international neighbouring countries.
The market trends for Indian exporters. As the Khalifa Port Free Trade Zone KIZAD’S multi-modal markets smoothens trade Given a rising demand for
for the UAE are highly food products market in the as part of KIZAD offers transportation processes, and opens new KIZAD and Khalifa Port
conducive for Indian MENA is expected to grow serviced land plots for food infrastructure? avenues for expansion. Free Trade Zone services,
investments. Fuelled by to $1 trillion by 2030 – the processing and logistics to KIZAD provides we have invested in the
a growing population and potential for expansion will support a wide range of food multimodal connectivity with How is Khalifa construction of 35 new free
increasing disposable hopefully rise. packaging, processing, flour Khalifa Port (fastest growing Port, KIZAD, zone warehouses and 75
income, UAE’s food mills and rice production deep-water port in UAE) that and its free zone Pre-built Light Industrial
imports is estimated to Please give us companies. Both international is connected to 60 different (KPFTZ) supporting Units (LIU). It also offers
be over USD 100 billion. some insights and regional companies ports, four international companies to grow customised free trade zone
There also exists a market on KIZAD’S food benefit from the unrivalled airports in close range, and access more business policies such
for Indian products as manufacturing competitive advantages express-highways and markets? as 100 per cent foreign
approximately 2.8 million cluster. offered by KIZAD including road networks across The location offers ownership, no restriction on
Indian expatriates live in KIZAD’s food its low registration and utility the GCC and a planned shipping lines efficient repatriation of capital and
the UAE and food is the manufacturing cluster is the rates as well as its outstanding railway network. Through transhipment options and an profit, duty free import and
3rd highest commodity largest in the region, and access to international this infrastructure, investors excellent platform to serve re-export etc. that create a
sold between India and has successfully partnered markets and its world-class for the food industry have the entire Gulf Region, the eennt for
competitive environment
the UAE. with big names in the food infrastructure facilities. quick and efficient access Indian subcontinent, the Red operating companies.

Vietnam added CEVA’s new pharma facility


to 1GSA network The renovated site adds to CEVAs investment in the pharmaceutical logistics
industry and will serve a number of customers across the healthcare sector.
1GSA has appointed Transviet
CT BUREAU provider of medical nutrition.
Promotion as its exclusive member Under this agreement,
for Vietnam. C EVA Logistics has
opened a fully
CEVA provides the
warehousing and distribution
refurbished 132,000 of medical nutritional feed
CT BUREAU to airlines, covering sales sqft facility at Redditch. products for a wide variety
and marketing, reservations, Refurbishments at the West of medical conditions for

L e Viet
Promotion
Cuong,
Director,
Transviet, informs, “We are
revenue accounting, load
planning, ULD build-up and
breakdown, and handling-
Midlands site included the
addition of LED lighting
as well as the installation
both pharmaceutical
wholesalers and home-
bound patients. CEVAs site
delighted to join the and ramp supervision. It of a HVAC system has a Registered Pharmacy
growing 1GSA family. also supervises import (heating, ventilation and air to dispense prescriptions
The membership will operations, and assists conditioning). The HVAC and the onsite Pharmacist
enable us to raise our airlines with landing system enables the facility and support team accurately
profile internationally, rights applications. to provide temperature checks all home delivery
and benefit from being controlled areas which is a orders and clinically checks
part of a developing Adds David Lee, requirement for the storage all prescriptions using
network of companies President, 1GSA, “IGSA of certain healthcare items. Healthcare Products Only Medication and bespoke software.
which share our values is very fortunate in There is also a dedicated Regulatory Agency) which the safe storage
of professionalism, securing such a strong and area in the warehouse which certifies it as a safe and of products in relation to "In order to provide
effectiveness and professional member for can store specialist items secure component of a their temperature. logistics service to the
independence. We this important young market. requiring to be kept between medical supply chain. To healthcare market,
look forward to making Transviet Promotion adds the specific range of two and receive this authorisation, The opening of the you must meet strict
our contribution to the substantially to our airline eight degrees Celsius. a potential authorisation/ facility coincides with a regulations and compliance
oganisation’s future success.” proposition, and we look license holder must show new five-year warehousing standards,” states Michael
forward to working together The refurbished site is compliance with a number agreement and a three-year O'Donoghue, Executive
The company provides a citin mutual
to exploit exciting now an MHRA approved of principles including the transport agreement with Ire
Vice President UK, Ireland
full portfolio of GSSA services opportunities.” facility (Medicines and segregation of Prescription Nutricia – the UKs leading and Nordics, CEVA.
38 CARGOTALK DECEMBER 2017 FAMILYALBUM

Bringing logistics community together


India Warehousing Show 2017 in Pune brought together the warehousing and logistics community of Western
and Southern India. The special focus was on ‘Logistics for Manufacturing’ where companies displayed latest
machineries and technologies catering to manufacturing sector in India.

CII expo highlights logistics issues


CII’s Maritime, Ports, Logistics & Warehousing exhibition and conclave 2017 held in Mumbai raised relevant
issues that are serving as bottlenecks for the growth of the logistics sector.
40 CARGOTALK DECEMBER 2017 FAMILYALBUM

Celebrating five years with the fraternity


Asia Shipping has completed five successful years of operations in India. The company celebrated the big day
with the fraternity by felicitating the employees for their contribution.
42 CARGOTALK DECEMBER 2017 INTERNATIONAL

DHL expands network in Central Asia


With an expected 50 per cent increase in annual throughput, the expanded Central Asia Hub will further boost the
company’s global multi-hub strategy. The hub will boost throughput capacity through enhanced systems.
CT BUREAU DHL’s commitment to this its shipping volume in the Pacific shipment volumes.
strategic hub to over 520 past decade. As one of three Ken Allen, CEO, DHL

D HL Express
announced a
million expansion plan
has
335
million, making it the largest
infrastructural investment by
DHL Express in Asia Pacific
global hubs for DHL, the
expanded CAH will continue
to act as the core hub of
Express, said, “Given the
expected rise in international
e-commerce and intra-Asian
for its Central Asia Hub to date. The expansion the DHL Express global trade, DHL is committed to
(CAH), in partnership with is timely as the CAH has and Asia Pacific regional strengthening our global
the Airport Authority Hong recorded an average 12 per network, handling more than network and services.
Kong. This expansion brings cent year-on-year growth in 40 per cent of its total Asia Based in a strategically

important location to DHL,


the expanded Central Asia
Hub in Hong Kong will not
only bolster our operational
capacity in Asia Pacific, but
also facilitate the rapidly-
growing international trade
demands in the region and
around the world.”

The expanded CAH


will be equipped with an
enhanced material handling
system that will improve
productivity and increase the
hub’s throughput capacity
– from the current 75,000
pieces of shipments per
hour to 125,000 pieces per
hour. When operating at
its full capacity, the annual
throughput of the expanded
CAH is expected to go up by
50 per cent to 1.06 million
tonnes per annum.

As a dedicated and
purpose-built air express
cargo facility at the Hong
Kong International Airport,
the expanded CAH will
handle six times more in
terms of shipment volume
than when it was first
established in 2004.

Ken Lee, CEO, DHL


Express Asia Pacific, said,
“Connecting with more than
70 DHL Express gateways in
the region, the Central Asia
Hub plays a significant role
in strengthening our existing
network of hubs in Asia
Pacific, including Shanghai,
Singapore and Bangkok.
The expansion will also help
us capitalise the growth in
intra-Asian trade lane that
currently contributes to 40
per cent of our revenue
in Asia Pacific. Equipped
with fully automated X-ray
inspection machines, it will
increase the speed of our
shipment inspection by
three times – enabling us
to expedite the processing
speed of shipments that
come through the CAH.” The
expanded CAH is expected
to beginn operations in
Q1 2022.
44 CARGOTALK DECEMBER 2017 EVENT
New variants for e-commerce
Eicher Trucks & Buses, part of VE Commercial Vehicles, organised the
Eicher Pro Biz Expo – Smart Solutions, showcasing the largest range of
light and medium duty trucks to the buoyant e-commerce industry.
DECEMBER CT BUREAU
India Cold Chain Show Mumbai 12-14
T he company showcased
five new variants in the
12th annual Cold Chain London 13-14 Pro 1000 and Pro 3000
series range - Pro 1110,
Distribution Conference
Pro 1110XP, Pro 1110XP,
and Exhibition Pro 3012/3014 and Pro
3015 at the expo. The
expo is aimed at bringing
ACCD Annual Ball Delhi 16 together customers and
key stakeholders in the
India Cargo Awards Delhi 20 e-commerce and logistics
space, to provide them a
first-hand experience of
JANUARY 2018 Eicher’s smart solutions like
aftermarket lifetime support
National Conference on PHD House, New Delhi 12 system, telematics, and
high-end technology, among torque, the trucks also offer between the Volvo Group
Cold Chain Infrastructure other features for their a cost-effective run with the and Eicher, has been a great
transportation requirements. longest service interval of These vehicles are success. Specially in the light
Modern Supply San Jose 29-31 These vehicles are 50,000 kms. and medium duty segment
specifically designed specifically designed our trucks, popularly known
Chain Experience keeping in view the specific According to Shyam keeping in view as “Mileage ka Baadshah”
needs of the sector from Maller, Executive Vice for delivering the best in
Supply Chain Frankfurt 31- 01, Feb long haul to short haul and President, Light & Medium the specific needs of class fuel efficiency, have

Finance Summit
last mile delivery. Duty Trucks and Buses, VE the sector from long witnessed a strong and
Commercial Vehicles, “The steady growth over the last
With these new e-commerce industry in India haul to short few years. Backed up with a
FEBRUARY 2018 additions, Eicher has further
strengthened its position
is growing at an exponential
rate of 50 per cent every year
haul and strong after sales network,
our salient features are:
SCM World Live Miami 4-6 in the LMD segment and and we believe in serving last mile delivery Longest cargo body: 24-
now offers the largest and our customers by providing ft long in LMD segment- first
Americas 2018 widest smart range of them with the right and in the industry.
trucks suited for voluminous practical solutions for their Best in class service
goods applications. requirements. Leveraging believe ours is the most interval of 50,000 kms.
Cargo Logistics Canada Canada 6-8
our established strength in compelling proposition for 4 years unlimited km run
The new variants the LMD space, we have this segment of the industry.” warranty on driveline.
RLA Conference & Expo Las Vegas 6-8 offer a 24-feet long cargo widened our offering to cater Further commenting on the Proven, high
body, which makes Eicher to the specific demands Eicher Pro series, he said, performance E494 engines
the leading player in the of the high potential “At Eicher Trucks and Buses, equipped with Volvo group
Supply Chain Technology Mumbai 22-24 industry to do so. Other e-commerce market. Eicher we have always been very EMS 3.0, available in
Conference & Expo benefits include higher now offers the widest and progressive in our approach BSIV variants for best-in-
Volume Space Index with strongest range in the Light towards introducing new class fuel mileage, high
best-in-class payload and and Medium Duty (LMD) products and technologies pickup & acceleration and
Retail Supply Chain Phoenix 25-28 fuel efficiency, offering segment with products to the market. The Eicher turnaround time.
Conference 2018 great value and maximum ranging from 4.9T to 16T Pro Series developed and State of art cabin to
profitability to the customer. GVW, out of which we have manufactured as a result d iv
dr
improve driver efficiency
Delivering high power and displayed 13 vehicles. We of the synergistic working and utility.
Logistics & Supply Dubai 25-1
PAN INDIA
Chain Management

Global Forum Canada Toronto 26-Mar 1


IndiaRAP unveiled for road safety
MARCH 2018 F edEx Express and
the International
supported by the global
International Road
Road Assessment Assessment Programme
Shipping, Marine & Mumbai 1-3 Programme launched that includes partners in
Ports World Expo IndiaRAP in the capital to more than 80 countries.
address road safety. The “Safety above all
IndiaRAP programme is a core FedEx belief
SCOPE Supply Chicago 18-20 aims to address the and, we are committed
Chain Conference highest risk roads towards sharing our
around the country in safety expertise and
partnership with national global reach to make our
Breakbulk China China 26-29 and state agencies. The roads safer,” said Hemant
programme will be led by Pimplikar, Managing
local experts, using local Director – Sales, FedEx
research and resources, Express India.
For more information, contact us at: cargotalk@ddppl.com
46 CARGOTALK DECEMBER 2017 MOVEMENTS
Allcargo Logistics Adani Ports Special Economic Zone Menzies Aviation
Mumbai Mumbai Menzies Aviation has appointed Jonathan Clark as CEO of its
subsidiary Air Menzies International (AMI). He will join AMI in
Allcargo Logistics has appointed Claudio Scandella to drive the next Adani Ports Special Economic Zone (APSEZ) has announced
January 2018. Clark has spent over 30 years in the airfreight sector,
phase of its growth as the Chief Executive Officer (CEO). Scandella the appointment of Mrithyunjay Chandilya as Chief Executive
holding positions with MSAS Cargo lnternational (now part of DHL),
was a member of the DHL Global Officer (CEO) to head its logistics
Lufthansa, Qatar Airways, DB Schenker and most
Forwarding senior leadership team business. Chandilya has global
recently Cargolux Airlines, where he has
as the CEO of their Middle East, experience working in leadership
served as Africa Director since 2016.
Africa & Turkey Region. He will positions in multinational and
be initially based in India for a consulting organisations. He
short period to familiarise with is renowned for his role as
group activities. Four regional CEO, AirAsia India, where he
CEOs of the global firm, having successfully started India’s first
presence in over 160 countries, foreign airline in the domestic
will report to Scandella as part space and was responsible for
of the strategic overhaul of the operational excellence, marketing
senior management structure. & sales, brand management and
organisational growth.

Emiza Supply Chain Service


Ceva Logistics North America Delhi
Houston Michael O’Donoghue, currently Managing Director of Emiza Supply Chain Service has appointed Ajay Khosla
CEVA Logistics has announced the promotion of Jérôme the UK, Ireland and Nordics cluster, will be taking up the as Business Head. He has experience of more than two
Lorrain to Chief Operating Officer Freight Management adding reins as Managing Director for decades in 3PL industry and
the responsibility for air and ocean North America from Lorrain working on strategic planning
freight to his current position as as of January 1, 2018. A & management, business
Head of the ground business replacement for O’Donoghue’s development,
line. Lorrain will continue current role will be announced operations practices
to serve on the company’s in due course. O’Donoghue and expertise in
Executive Board and takes joined CEVA in 2010 following scaling business &
over the air and ocean role a 25 year career in the freight expanding services.
from Helmut Kaspers who and logistics industry which Khosla started with
has left the company. Lorrain included senior management Gati. He has joined
has extensive knowledge of positions in both Contract Emiza Supply Chain
the supply chain, logistics and Logistics and Freight Management Service to develop their
transport industries in almost for DHL and Excel. North India locations.
every market sector. He was
CEO of Wallenborn Transports in
Luxembourg May 2009 to
May 2014

Kamal Dogra, India Cargo Award Winner 2017 & Subodh Sachan, CEO, MLSI, loves gardening. He Vaibhav Verma, Director – Finance, Navigator Visa Glob-
Chairman, Kamal Translink, prefers spending time meditates in his free time to de-stress. His favourite al Logistics, loves spending time with his family. “Staying
with family, going for movies and enjoying different sport is badminton. Not being so particular for food out with them is fun,” he adds. He loves watching movies
cuisines especially when overseas. “The only rea- choices, Sachan likes simple food like Dal. He loves in his respite. Verma’s favour-
son I love different cuisines visting Kanha Shantivanam in ite sport is cricket. Shar-
is because a country’s Hyderabad whenever he ing his favourite holiday
food tells you a lot gets time off from his destination, he says,
about their culture. work. “It has beau- “Holidays anywhere
Food brings people tiful and calming are special, and the
together,” he adds. atmosphere, you best is when you are
Sharing his love become one with away from the world
for cricket, Dogra nature and you with no connectivity.
says, “I love play- forget about My vacations with
ing Cricket because all worries and my near and dear
it complements each learn to love your- ones are memorable.”
other’s’ strengths and self,” he adds. Among food choices,
weaknesses and share he loves Delhi’s cuisine.
the woes and throes
of defeat and
victory.” His
favourite
vacation
spot is
Dubai.

With Talking People, we get you a peek into the lives of who’s who of the Indian and International cargo industry. Contributed by: Kalpana Lohumi

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