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 08; July 2018 RNI No.: DELENG/2003/10642; Date of Publication: 03/07/2018 Pages 52 Rupees 50 cargotalk.in A DDP Publication Coastal Shipping: Anchoring prospect @ ports Is coastal shipping a sustainable and efficient alternative to road transport? Sagarmala Multi-modal sees fruition vital for port-led after 4 years development Analysing Sagarmala’s procured World Bank states that India needs more achievements for Indian marine industry investments in multi-modal connectivity Shipping Logistics: PORT-LED DEVELOPMENT CARGOTALK editorial EDITOR SanJeet MANAGING EDITOR Peden Doma Bhutia ASSISTANT EDITOR Jessy Iype SR. REPORTER Kalpana Lohumi DIRECTOR Priti Khanna GENERAL MANAGER Harshal Ashar Dear Reader, NATIONAL HEAD - SALES Rajiv Sharma The government is preparing a new National Air Cargo Policy with a focus not only on major aspects like dwell time. Pertinent factors like timing, availability of more airspace for the movement MANAGER MARKETING of cargo, are also being considered. The ministry is giving its final touches on the policy for the Gaagan Dugal logistics sector, as part of a comprehensive plan to boost business and exports. MANAGER On the other hand, the Haryana government is formulating a dedicated and comprehensive Gaganpreet Kaur logistics, warehousing and retail policy to promote and project the state of Haryana as the logistics hub of North India. This shows the level of commitment from the government to procure efficacy in ASSISTANT MANAGER the industry. Ilustrating the achievements of the Sagarmala programme in four years, the Ministry Yogita Bhurani of Shipping has unveiled a report that shows how the initiative has stimulated economic growth by bringing port-driven prosperity to the nation. The logistics market in India is expected to be worth DESIGN US $307 billion by 2020, also, the country’s logistics cost is not cost competitive. Despite being the Nityanand Misra most cost-competitive mode of transport, coastal shipping contributes the least share in movement of goods. CARGOTALK also explores the current state of coastal shipping in India and what more is ADVERTISEMENT DESIGNERS needed to enhance traffic towards this mode of transport. Vikas Mandotia Nitin Kumar Industry experts raise their concern on daily rise of fuel and how the trucking industry is getting affected with this, flip over to read more. Waterways and airfreight are expected to be the big PRODUCTION MANAGER creators of new jobs, according to TeamLease Services report. The report states that logistics sector Anil Kharbanda will create employment for at least three million people by 2022, with the road freight industry alone contributing nearly 63 per cent, or 1.9 million new jobs. We bring you a report on the same. CIRCULATION MANAGER Ashok Rana Keep reading and giving your feedback to us at: [email protected] DDP Publications Private Limited is derived from sources, which we consider specific advice before acting on information Publications reproducing material either in be liable for any damage or loss caused by Mumbai: reliable and a sincere effort is made to report contained in this publication which is provided part or in whole, without permission could delayed publication, error or failure of an 504, Marine Chambers, 43, accurate information. 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The publisher will not Website: www.cargotalk.in www.cargotalk.in JULY - 2018 CARGOTALK 3 contents JULY 2018 12 Cover Design: Nityanand Misra 20 6 NEWS News from the domestic sector 12 COVER STORY Coastal Shipping: Anchoring prospect @ ports 20 INDUSTRY REPORT Sagarmal sees fruition after 24 4 years 24 INDUSTRY OPINION Multi-modal connectivity essential for existing ports 30 LOGISTICS SPEAK SmarTrucks: 30 Skilling, a priority for DHL 34 INDUSTRY TALK Logistics to create vocations for 3 million by 2022? 4 CARGOTALK JULY - 2018 www.cargotalk.in DOMESTIC NEWS ‘India needs precision planning to fuel economy’ The Indian subcontinent’s economic graph is poised to grow substantially, but it requires thorough planning to surge into an efficient economy, feels Suresh Prabhu, Minister of Commerce & Industry and Civil Aviation, Government of India. While addressing the Supply Chain Summit in Delhi, recently, he stated, “We need a good supply chain in place to ensure the accessibility of our products and commodities in an efficient and uninterrupted manner. India, which is poised to be a $5 trillion economy, would require resources twice of what we need today.” He added, “The Japanese concept of ‘Just in Time’ will go a great way in upholding the sector and integrating the vendors and all parties aligned to reduce cost of logistics. However, this will need precision planning and fine implementation in India. We now have a dedicated logistics division for the first time in India, combining the year-round effort collectively put together by the railways, airways and roadways. Additionally, the government is working on a concrete plan to build logistic hubs in India to build a network of better access and digitalise the entire logistics chain.” “The country will soon have a policy on cargo that is being finalised by the new logistics department. For the first time, a logistics division has been created in the country. All the modes in the segment were reaping good results, but, there were no single one-point of contact. The policy is more of a concrete plan, to create new logistics hubs in India. The document is in the final stages of preparation,” he concluded. The minister has asked the industry stakeholders to give their inputs, which could be incorporated in the policy. Another agenda under implementation includes creating a cargo policy for the airline sector. This would especially consider the late evening time, where typically there are not many domestic flights, stated the minister at another meet by the Cargo dwell time reduced by 30-40%: Jayant Sinha MoCA, in Delhi. Jayant Sinha, Minister of State, Civil Aviation, on the implementation of the new cargo policy, “Particularly at night, domestic stated, “There will be a huge change in the Cargo travel is not as much as is during Policy, which we are working on currently. We the day, and the airspace is have done a lot of streamlining in the policy. available for the movement of Cargo dwell times have been reduced by 30-40 cargo. Hence, in the run up to per cent under the new policy. Earlier there was becoming a strong economy, no growth in cargo, but in the last few years, we the quantity of cargo that is have seen a growth rate of 10 per cent in this going to be moved from source sector. Hence, the last four years, Indian aviation has seen unprecedented growth, be it passenger trips, passenger to processing points, and quality or cargo. I believe that it has been a huge success for aviation sector and all of us in the Ministry.” from processing points to the market, is going to increase dramatically,“ he expressed. SOUTH INDIA Kannur airport to be operational by September Kannur airport is expected to directed Airport Authority of India promote commodities trading will also make the foreign become operational by (AAI) to expedite the process for from the region especially those markets available to Indian September 2019, stated its September opening and be in related to marine products. “I fishermen. Our idea is to Suresh Prabhu, Minister of a position to allow operations of spoke to Japanese, Chinese, develop commodities, create in- Commerce & Industry and Civil foreign airlines.