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

Postal Reg. No.: DL (ND)-11/6002/2016-17-18. WPP No.: U (C)-272/2016-18 for posting on 04th - 05th of same month at G.P.O. New Delhi-110001 Vol.: XVIII Issue 01; December 2017 RNI No.: DELENG/2003/10642, Date of Publication: 03/12/2017 Pages:48 `50/- ddppl.com 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 very cargo doesn’t fit have started exporting plant Ein a standard logistics and machinery making solution. High level of 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 n a major push to help the sector get credit level post in the Commerce Supplies and Disposals (ICD) with a minimum Logistics costs of Ideveloping an integrated at competitive rates and Ministry to coordinate with (DGS&D) as Special investment of `50 crore exports are very high in logistics framework in the on a long-term basis as all the ministries concerned Secretary In-charge of and minimum area of 10 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 compared to last year. Guru Prasad Mohapatra Chairman facilities at Kolkata and cases where cargo/courier documentation services airports withwit the specific 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 and Srinagar (interim) We have plenty plans cargo terminals at AAI Amritsar Q-2 2019-20 during financial airports. International cargo A path breaking decision to focus on; development airports – partially ongoing. Surat Q-2 2018-19 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 ndia is a vast country and so is the this year by raising pertinent issues that are hampering the sector’s growth. Idynamics 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- sea port operators are facing, it is also announcements including getting ment model focuses on energising 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 The industry has finally received the long them with SEZ’s port-based smart 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 This will not only develop an integrated us together and hopefully we will corridors. There is an immediate 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 (Western Region) & Director As the year comes to an end, there is DDP Game Changer 2017 & Conclave Geco Trading Corporation a wave of hope in the industry for better 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- demonetisation and the GST tax regime; sector now has the infrastructure tunity. What we see is the emer- 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 will connect almost all the border states not confining only to loading and been completed in the last one 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

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Framework Convention on The electric vehicles are large degree on employee CT BUREAU Climate Change (UNFCCC). being piloted in Gurugram commitment and expertise, trengthening its and will be subsequently we will train 80 per cent SGoGreen mission, The launch of electric inducted across Blue of our employees to become Blue Dart Express has vehicles is in line with Dart country. 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

XContd. 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/ Handling of cargo would Vice President – Logistics Senior Manager -Projects India Cargo Award winner 2016 & India Cargo Award winner 2016 & trailer with proper support ACTL NDLI Jeena & Co. Director, Shree Balaji Shipping & Managing Director, Asia Shipping India 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

XContd. 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 to make them accountable,”coou 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.

structural nature of this tax still lies outside the ambit CT BUREAU Reduction in Impact of GST Transit time With GST, government reform is likely to create of GST and the concept of he government has After having a unified reform initiatives, promotion a better environment for E-way bill, while promising Tmade considerable market under the new GST of manufacturing and doing business in India better regulation and inroads into ensuring a regime, the flow of goods trade, improving investment over time, which would monitoring of the logistics 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 system into a single unified delivery times as compared corridors, logistics parks, to government resources. and cons of the reformed Keku Bomi Gazder 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 oneono e roof 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 et Airways Cargo and codeshare agreements work closely to co-create and gateways, both in JAir France KLM Cargo between the partner new and industry-leading India (Mumbai and Delhi) has signed Memorandum carriers. Pradeep Kumar, products and services for 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 constructing 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 other 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 commercial vehicles as earlier, the Golden quadrilateral has reduced the transit times,” he adds.

Best GGloballobal LoLogisticsgisti Company (North & East 2016): CargoCargo 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

XContd. 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 technological innovations Rajesh Jaggi 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 Robotics: 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 and companies work fasterasste 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 creative engineering. and joined by anodized tubular structure there and dependable, Prime igh Speed Doors aluminium extrusions, inserted ensures high is the intelligent door for Hdesigned and Fast moving functional provides for a wide range of wind-resistance. medium and large entrances. manufactured by Gandhi and reliable doors are polyester sections available 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 and large entrances. High Speed Doors are allow more light in. Their entrances and effectively wind lock in curtain pocket The doors are manufactured versatile and solid ensuring fast and easy replacement, operate in any situation, that ensures silent door with European collaboration long-lasting reliability. in case of accidental even when strong winds are travel, higher windnd loads and 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.

Tuticorin; we have 32 dynamic team focused on Have you faced any customers with financial CT BUREAU 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 management etc. Also, GST compliant, we will be provide a tailor-made Mauritius came here to help all around the world. For the Nawaz Gobindram 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 bringinng 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

he Delhi Customs TClearing Agents Association (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 committee members for President Vice President Hony Secretary Hony Joint Secretary Hony Treasurer 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 andndnd support to 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 overnment of Haryana to generate employment for is ranked ﬁrst among north urban market were the key Kolkata as main contributors Indian states. The state Gsigned pact with six lakhs. The HSIIDC will be Indian states in the Ease factors driving growth of the to the growth of the state. also ranks ﬁrst in terms of Verbind at the sixth edition the nodal agency to execute of Doing Business Index of state.” Acknowledging the 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 businessesss 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 are the leader in automotive R Shankar 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. is moving towards new sectors and introducing Indian company with deep operations are enabling us to over the years. Customers are increasing 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 ouro 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

elebi Delhi Cargo Delhi Cargo Terminal cheaper than in other six hours to transshipment of cargos a month from the logistic service in CTerminal Management Management India attended airports and the average cargo. Mamidala informed, Dhaka. Edward said, the airports for smooth India has organised a the workshop at Dhaka. staying period of EU bound the company is aiming “Both Dhaka and Delhi 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.

The disorganised is a lack of IT standard, of the logistics industry. continue to show robust downturn. Cloud technology, CT BUREAU nature of the logistics sector equipment and poor With the increase in the growth of 10-15 per cent integration standards for he logistics industry in India, its perception as a systems integration. transportation of perishable annually, leading the pace data inter-connectivity and Tin India is evolving manpower-heavy industry products, the logistics of growth of the economy at the creation of a secure rapidly; it is the interplay of and lack of adequate Need for optimal agencies need to give a lot large. The global economic 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 grow the industry,indn 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 operationalala and 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, ocated at Bhartiya intelligence, and creative already home to Maersk’s engineering and marketing,” LCity on Thanisandra marketing capabilities to largest global service center said Soren Skou, CEO, AP Main Road, the facility is deliver customer insights operations employing over 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 thethhe 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.

our fraternity will be in impetus on manufacturing, customs broker community our relationship with Congress 2018 in Delhi CT BUREAU serious crisis. Hence, need infrastructure development, in India with my added the government for due would be an unprecedented S Atree, the newly of the hour is to set our house ‘ease of doing business’ and responsibility as Vice recognition from all ministries opportunity to Indian Pelected one of the six in order to thrive in customs trade facilitation initiatives,” Chairman of our Federation. by obtaining professional freight forwarders to expand Vice Chairmen, Federation broking, freight forwarding he elaborated. Delhi would be my special status like CAs and lawyers,” 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 thehe 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 PM Terminals Inland and manufacturing clearance, bonded and non- AServices inaugurated in the Pune district bonded warehousing, empty its new state-of-the- in Maharashtra. 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 chain simple, cost-effectiveco and efficient”.

NORTH INDIA Safmarine exports 1st block train afmarine has Sexported the ﬁrst block train for Store 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.

important high growth CT BUREAU Highlights - 3Q 2017 opportunities for UPS. The Why has UPS chosen world is changing, more We position UPS as UPS revenue rose 7 per cent on balanced shipment 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 the US, the three biggest US. We position UPS as U.S. domestic revenue up 3.9 per cent. economies, and the rest of a trade enabler for India. companies in the U.S. operating profit of $1.2B, including $50M of negative hurricane impact. the world will widen over We’re making ourselves Mark Vale global network 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 CT BUREAU the expertise of the Cathay Pacific team and our he inaugural outbound he certification network. This certification Tflight left Los Angeles Tunderlines the carrier’s is a testament to our 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 thehee air presence in China, making freight forwarders and Chicago, Dallas/FortFoort Worth 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.

What are the CT BUREAU 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 competitive environmentenent for 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. EVA Logistics has CEVA provides the Copened a fully 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 e Viet Cuong, revenue accounting, load Midlands site included the both pharmaceutical LPromotion Director, planning, ULD build-up and addition of LED lighting wholesalers and home- Transviet, informs, “We are breakdown, and handling- as well as the installation 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 to exploit excitingciitin mutual now an MHRA approved of principles including the transport agreement with Vice President UK, IrelandIre 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.

DHL’s commitment to this its shipping volume in the Pacific shipment volumes. CT BUREAU strategic hub to over 520 past decade. As one of three Ken Allen, CEO, DHL HL Express has million, making it the largest global hubs for DHL, the Express, said, “Given the Dannounced a 335 infrastructural investment by expanded CAH will continue expected rise in international million expansion plan DHL Express in Asia Pacific to act as the core hub of 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 he company showcased Tfive 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 the specific needs of Supply Chain Frankfurt 31- 01, Feb long haul to short haul and President, Light & Medium class fuel efficiency, have last mile delivery. Duty Trucks and Buses, VE the sector from long witnessed a strong and Finance Summit 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 is growing at an exponential haul and strong after sales network, strengthened its position rate of 50 per cent every year our salient features are: last mile delivery SCM World Live Miami 4-6 in the LMD segment and and we believe in serving 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 Cargo Logistics Canada Canada 6-8 goods applications. requirements. Leveraging believe ours is the most interval of 50,000 kms. 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 improve driverdrd iv 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 edEx Express and supported by the global Fthe International 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: [email protected]

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