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 New Delhi P.S.O Vol.: XVII Issue 2; January 2017 RNI No.: DELENG/2003/10642, Date of Publication: 03/01/2017 Pages:48 `50/- ddppl.com CargoTalk.in First-of-its-kind export terminal at MIAL............................................ ...............................08 How long will it take for drone deliveries to take off?..................................................... 12 Cargo steps into paperless processing............................................... .......................13 No losing time on dwell time Improved dwell time will enhance the capacity of existing port infrastructure and reduce overall costs, but breaking it down is not an easy task. CARGOTALK explores the consequences of higher dwell time and what can be done to reduce the same. KALPANA LOHUMI Explaining the significance of cargo arrives in the port to the related norms. Although taken some dwell time as an important indicator time the goods leave the port measures for improvement in dwell Trivia: well time, the time cargo of the impact of trade facilitation premises after all permits and time, the time taken by Indian ports Longer dwell time at ports is Dspends within the port between measures, Ashish Mahajan, clearances have been obtained. and airports are still higher than the one of the factors that makes us unloading and pickup, is one of Managing Director, Landmark World Customs Organisation global benchmark.” lose out to countries like China, the most-accurate indicators of Vietnam, Malaysia, Indonesia, etc. efficient logistics. These hours Increased container dwell time have become a major instrument further leads to congestion at to attract more cargo and generate the port revenue. Infrastructure gaps and high transport costs are serious factors that are hindering growth logistics cost in India is high as in the country. Above all, reducing compared to some of the other dwell time is critical. To compete producing economies and if we do with international standards the spend a lot of time at the ports and government needs to come up airports for the cargo movement with best practices to reduce dwell then the Indian production time and cut on free period at and consumption markets will cargo terminals. definitely suffer.” The government has Making the cargo stand undertaken several initiatives to Sharing his perspective on the for longer period at the ports cope with the burgeoning traffic World Customs Organisation (WCO) prescribes dwell same, Yashpal Sharma, Director, makes a country slack as compared of international trade and to bring Skyways Group & India Cargo to other countries. Explaining the country’s logistics on a par time as an important indicator and Indian customs Award winner 2016, says, “High from the exporters’ point of view, with global standards.The Ministry has also adopted the related norms dwell time makes supply chain Cyrus Katgara, Partner, Jeena of Civil Aviation is enthusiastic to ineffective and uncompetitive. The & Company, says, “Longer cargo reduce import air cargo dwell time various producing economies of dwell time at the ports and airports from 72 hours to 48 hours and is Logistics, elucidates, “Dwell (WCO) prescribes this as an the world are today competing affect exporters adversely. On the also consulting stakeholders and time is the measure of the time important indicator and Indian for price of product and for the associations for the same. elapsed from the time the customs has also adopted the order-to-deliver timeline. The Contd. on page 6 X AVIATION JANUARY 2017 CARGOTALK 3 Targeting reduced dwell time Despite a downturn in the European market, the Indian air cargo market is looking up. While talking about the plans and projections for the sector, Dr. Renu Singh Parmar, Senior Advisor, Ministry of Civil Aviation, Govt of India, says it is expected to surge to 7-8 per cent on an annual basis. CT BUREAU is not in line with the international time and cutting on free period at airports. There are benchmarks; where it is 24 to 36 the cargo terminals. issues with security What is the government doing hours or even less. Government clearances which we are tackling can do through road or rail. We can to reduce dwell time? is consulting stakeholders and What kind of investments or with our own Bureau of Civil Aviation develop multimodal hubs with the The ministry is doing a associations for the same. In fact, initiatives are needed from Security of India (BCAS) and DMIC (Delhi Mumbai Industrial detailed study on reduction of various stakeholders have given the government and air cargo Directorate General of Civil Aviation Corridor) projects or a logistics park. dwell time. We must reduce the recommendations as well. To industry to boost numbers? (DGCA) on transhipment modules The transport minister has also overall dwell time on the imports become global, we need to follow It is time to simplify the so that we can make transhipment said that we will develop a logistics side at our major airports as this best practices and the ministry is process with Electronic Data hubs for, say, Delhi, Mumbai and park around Delhi region; such doing its best to help reduce dwell Interchange (EDI). Customs is Chennai but everything takes a initiatives will kick start the growth also improving upon their EDI bit of time. We need to consult the of air cargo. system. All stakeholders should concerned departments. The Air be brought to this platform and Cargo Logistics Promotion Board nobody should resist that. Going (ACLPB) plays a very important role Initiatives It is time to simplify forward, the overall outcome of in making the business easier. We exchange of electronic messaging try to resolve many issues through The government has taken the process with will be improved transparency and inter-ministerial meetings. some steps: accountability thus cutting down on Electronic Data A logistics park will be dwell time. Where do you see the role of developed around Delhi Interchange (EDI). multi-modal connectivity to region Customs is also improving Although volume wise air cargo boost air cargo volumes? hardly carries anything, but value Multimodal is important BCAS and DGCA are together upon their EDI system wise we carry one third of the total because we can’t set up airports tackling issues with security Dr. Renu Singh Parmar international trade. We need to everywhere. So, when one needs clearances Senior Advisor, Ministry of Civil Aviation Government of India set a lot of procedures right at our to transport freight quickly, one # 1 IN CIRCULATION & READERSHIP REPORT Pharma & hi-tech to boost Express EDITORIAL In its recent ‘Indian Express Logistics Market Overview’ report, Research and Markets has announced that there will be a boom in India’s express The way ahead e-commerce logistics. he New Year brings with it new dreams CT BUREAU drivers so far. However, it is expected gets much load but generates fewer Tand ambitions. The industry is looking that the blooming e-Commerce profits. The main disadvantage of the forward to another promising year with s per Research and Markets, India’s market and relating 3PL and hyperlocal unorganised sector is the handling of the Aexpress e-Commerce logistics is a definite upbeat feeling in logistics and likely to witness a boom in the coming cargo. The year 2016 ended on a pleasant years with the advent of mobile The market of express delivery has been on an note and the government has given hope commerce. India’s Express market has increasing trend since 2012 as India started participating to the industry, by giving the desired seen a growth of around 17 per cent during 2010-14. The market of express in the e-tailing business attention to the ‘most-neglected sector’ delivery has been on an increasing of the country. trend since 2012 as India started Mumbai International Airport has participating in the e-tailing business and space will prompt the express market in products. Clearly, the organised express with the increased market penetration coming years. market is expected to constitute faster launched a first-of-its-kind Export Heavy of automobiles. growth in the coming years. and Bonded Cargo Terminal for bonded Shipment wise, the express market and heavy export cargo. This is another Compared to the overall logistics is divided into two segments - documents Industry wise, hi-tech and feather in the industry’s cap. Along industry which is limping at a moderate and non-documents. Documents pharma will be major industry CAGR of three per cent, express industry dominate the market in terms of volume. responsible for the growth of the express with the government, the industry is is nimble in terms of growth in market size By mode of transport, surface express is market in India. The report reveals that also going all out to make logistics better in the country. As the Union Budget month draws near, the sector has a number of demands from the government to make transportation smooth. The industry is desperately looking for the long-awaited GST roll-out which is one of the influential factors that can bring efficiency in logistics. This is also a time to build a proper system and increase the use of Information Technology (IT) in managing businesses. Only an accurate and complete application of IT can transform the existing challenges of cargo industry to the advantages of Indian trade. Adoption of IT will aid the movement along with concomitant improvement in expected to have the largest share in the Gati, Safexpress, Blue Dart and TCI of cargo in the Indian supply chain. On the policies and infrastructure. The industry express market. XPS are the leading players in Indian express side, courier companies are also can be classified broadly based on the express market and their revenue share mode of transport it uses, surface having According to the report, there is a is expected to grow over the forecast coming up with smart applications through predominance.