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Cargo Loaded with Opportunities the Indian Air Cargo Sector, Despite, Growth Through E-Commerce and Government Support, Is Still Not Being Utilised to the Fullest

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Cargo Loaded with Opportunities the Indian Air Cargo Sector, Despite, Growth Through E-Commerce and Government Support, Is Still Not Being Utilised to the Fullest 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 04; March 2018 RNI No.: DELENG/2003/10642, Date of Publication: 03/03/2018 Pages:40 `50/- ddppl.com CargoTalk.in Safexpress to invest in the Northeast................................................................................03 More freighters vs Belly for air cargo................................................................................ 10 Foreign hand uplifts Indian logistics?...............................................................................12 Cargo loaded with opportunities The Indian air cargo sector, despite, growth through e-commerce and government support, is still not being utilised to the fullest. There are challenges galore but the opportunities also need to be capitalised. KALPANA LOHUMI of the airfreight is almost one tenth. Comparing ir cargo sector has to US the performance Acome a long way. is still worse. While US From carrying small airfreight Industry looks to shipments to large-size be stagnant or declining, and extra heavy cargoes, China is showing the the sector has attracted fastest growth; an average many international cargo of 12 per cent and India operators. Despite the only has a modest growth fact that it is the fastest of average of nine per mode of transportation, the cent. It can also be seen sector accounts for less from the second figure that than one per cent of total airfreight has been highly freight carried in terms of volatile and sensitive to both volume and weight. the economic trends, so Undoubtedly, air cargo is a entails a lot of expensive specialised sector and its excess capacity.” development requires deep focus. CARGOTALK explores Vipin Vohra, the journey of air cargo Chairman, Continental in the last decade; game Carriers Group, tells, “The changers, opportunities the segment has grown 2012; Deccan 360 from 2016 with a leased Explaining with the last decade (2008-17) has and challenges. to be one of the key and the old Deccan Aviation 737-400F from Quik- charts, Cyrus Katgara, been very challenging, promising markets globally. though started on a high Jet. It offered overnight Partner, Jeena & Co. eventful and rewarding Sharing his thoughts, The overall trade in the note in 2009 seized its connections to Delhi, says, “To put the growth in for air cargo industry, Keku Bomi Gazder, cargo segment has picked function in 2011. Chennai, Bengaluru and Indian airfreight industry world over. While the CEO, AAI Cargo Logistics up in a big way.” Hyderabad. However, the in a global perspective we beginning of the 21st & Allied Services, says, There was Aryan operations were wounded need to look at reference century promised growth “Indian air cargo segment “Though the volumes Cargo Express which up within a short span of countries with similar scale and opportunities, in 2008 grew in leaps and bounds in kept rising, none of the operated for less than time. That is the history of size, population and the world encountered the past several decades. Indian all-cargo operator a year in 2010. It is a of all-cargo operators in economy. It can be seen the worst recession and The air cargo operations could sustain because of similar story with Sovika India. However, all airlines from the charts (shown slow-down of international started by folding the seats the low yields. The national Group’s domestic freighter still continue to carry above), that while India trade; resulting in sinking in the passenger cabins in carrier’s subsidiary Air operations; started cargo in their bellies,” is one fourth of China in of economy, even for the the 1950s on airlines. Now India cargo operated till operations in February explains Gazder. GDP in PPP terms, its size strong economies of the Contd. on page 6 X Source: World bank WAREHOUSING MARCH 2018 CARGOTALK 3 Safexpress to invest in the Northeast An investment of `100 crore will be made by Safexpress. Out of the 12 focus industries identified by the government for investment in the Northeast, logistics is one of the major industries. CT BUREAU afexpress has Sannounced the biggest- ever investment by a logistics company in the Northeast region. The announcement was made at ‘Advantage Assam Global Investors Summit’. Notably, the Prime Minister of India was the Chief Guest of the global Rubal Jain Vineet Kanaujia summit. Safexpress was DDP Trailblazer 2016 & DDP Face of the Future 2015 & MD, Safexpress representing the logistics VP – Marketing, Safexpress industry at the summit. Rubal Jain, Managing Assam is also a very This facility spans Director, Safexpress, said, “We are pleased to announce crucial location from over an area of an investment of `100 Crore the point of view of more than 1 million in the Northeast region. We whole-heartedly support India with the rest of the Safexpress has recently built India.” Explaining about the logistics connectivity square feet and this wonderful initiative by country. The development of up an ultra-modern logistics massive logistics network of Northeast India is located our Prime Minister to boost strong ASEAN relationships park at Guwahati. We have created by Safexpress in the investment in this region.” with the Northeast is a great invested `30 crore in creating Northeast, Kanaujia said, with the rest strategically on boon for the entire region this state-of-the-art logistics “The Northeast has always of the country National Highway 31 Jain added, “Assam, the and all business entities park at Guwahati. This facility been a very high priority biggest state in this belt, has serving the region.” spans over an area of more region for us. We have evolved itself over the years than 1 million square feet offices across the whole from being a traditional state Vineet Kanaujia, Vice and is located strategically of the region. Our logistics within the area, we deliver of logistics, we intend to to a competitive business President – Marketing, on National Highway 31. This network covers even the to all 1001 Pincodes in the contribute hugely in the hub. Assam is also a very Safexpress, said, “Given logistics facility is functional remotest of the locations, Northeast. With a huge Northeast growth story, crucial location from the the vital role Assam plays 24x7x365 and ensures and we cover every square investment of `100 crores given the massive role point of view of logistics in connecting the Northeast excellent connectivity of the inch of Northeast. Given our planned by the company logistics needs to playy ini the connectivity of Northeast to the rest of the country, Northeast with the rest of massive logistics network for the region in the field growth of this region.” Arena for enabling What’s Trending? business at ease The concept of enabling a multi-modal logistics park is to enable seamless transfer of goods and services, opines Chander Agarwal, Managing Director, TCIEXPRESS. he idea behind multi- How it will benefit of doing business but also Tmodal logistics park is to logistics comes from the has given an opportunity provide specialised storage fact that in the past, the to learn and adapt to best solutions, mechanised opportunity for all the players global practices. One of material handling and across the industries were such developments is that enable seamless inter- minimal. This was primarily the manufacturing plants are modal transfers of goods and because private investment now trying to get into ‘ZERO’ services. The Northeast is in the development inventory holding model. This one of the regions which has of logistics parks was is where logistics will help played a pivotal role in terms restricted due to lack of the customers to order ‘back of logistics connectivity with land availability and hence to back’ with a PO (Purchase the international and national the return on investment Order) and ship end-product corridors of India. was also less. But with the directly to the customer. CARGOTALK went live on Facebook collaboration of government PARTICIPATION OF through Public Private This way of working is at the ACFI event on January PRIVATE PLAYERS Partnership (PPP) model, effectively opening up new 31, 2018, while Civil Aviation We believe ASEAN’s it has witnessed extensive trading opportunities for any Minister of State, Jayant strong bond with the participation from private company. Additionally, all Sinha shared the post on northeast region will players as well. the vendors and suppliers act as a mascot for want to collaborate to take his Facebook page. To know the entire region and for This participation from maximum benefit from more, follow our page: www. the rest of the businesses various players has not only the parks and be near the facebook.com/CargoTalk/ in the region. opened new arenas for ease production unit. # 1 IN CIRCULATION & READERSHIP EDITORIAL years ago Infra all the way 15CARGOTALK projects a flashback to showcase readers some vital trends that were inance Minister Arun Jaitley laid prevalent even then, while focusing on today’s scenario in the industry. Fdown the Union Budget 2018-19 on February 1, 2018. For the logistics segment, the budget has proven to be neutral yet positive in the long-run. The K Ramalingam, Member (Planning), AAI, in his government’s impetus on increasing the interview in January-February 2003 issue of CARGOTALK, efficiency and modernising of ports and talked about questions that attracted much attention th improving the road infrastructure will of the 29 convention of ACAAI held in 2001, that is, Cyrus Katgara, Partner, Jeena & Co, in the have the procedures of cargo handling at the Indian January-February 2003 issue of CARGOTALK, spoke provide a fillip to the sector. The industry airports achieved global standards? about how bureaucracy, procedural delays and has mix reactions on the Budget, where lack of infrastructure are hindrance in normal He opined on the pivotal role played by the air process of change in India.
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