Cargo connect july 2016 by Surecom Media

www.surecommedia.in

SPECIAL FEATURE

Green is In

Evolving Logistics

Sector Seeks Skilled Professionals

Logistics Attractiveness Index

VOL VII ISSUE VIII july 2016 `20

Handling the Super Heavies Right

ALSO CELEBRATES 30 YEARS OF OPERATION FROM DELHI

Contents

Volume VII • Issue VIII • july 2016

Editor and Publisher Smiti Suri Principal Correspondent Ritika Arora Bhola Roselin Kiro Special Correspondent Joydeep Banik Feature Writer Kiran Sabherwal

24 COVER STORY

Handling the Super Heavies Right

SPECIAL FEATURE Green is In

FEATURE

INTERVIEW

Skilled Professionals .....................42

Manager Marketing Niti Chauhan Marketing Executive Chetan Pathak Rajesh Basu Asad Mohammad Marketing Support Sheetal Singh

Rajesh Yabaji, Co-Founder, BlackBuck ..64

Administration Vipin Marwah Lavish Thakur

Rajiv Lal & S K Jaini, Directors, Divine Thermal Wrap Pvt Ltd ..................................................66

PEOPLE CONNECT P Alli Rani, Director–Finance, CONCOR .60 Kruti Jobanputra, Director, Jwc Logistics Park Pvt Ltd ..........................................86

• Logistics Attractiveness Index ...52

Director Marketing Ajeet Kumar

Shubhendu Das, Managing Director, Hellmann Worldwide Logistics India Pvt Ltd ...................62

Dusshyant Arya, Managing Director, Indo Arya Group .....................................................65

• Evolving Logistics Sector Seeks

Reporter Sana Husain

supply change .....................70

Designer & Visualiser Shaique Ahmad Mayank Bhatnagar

All material printed in this publication is the sole property of CargoConnect All printed matter contained in the magazine is based on the information of those featured in it. The views, ideas, comments and opinions expressed are solely of those featured and the Editor and Publisher do not necessarily subscribe to the same. CargoConnect is printed, published and owned by Smiti Suri, and is printed at Compudata Services, 42, Dsidc Shed, Scheme–1, Okhla Industrial Area Complex, Phase–II, New Delhi-110020, and published at 6/31-B, Jangpura–B, New Delhi-110014.

GUEST COLUMN .................68-69

Editor–Smiti Suri

NEWS ................................6-10 & 71-78

appointments .......................80

SURECOM MEDIA

We bring you a wide spectrum of updates that will keep you informed about the industry’s plans, performance and initiatives.

EVENTS ...............................81-85 TOTAL PAGES: 88 (inclusive of covers)

6/31-B, Jangpura-B, New Delhi-110014 Tel: +91-11-24373365, 24373465 Mob: 9711383365, 9810962016 Email: cargoconnect@gmail.com info@surecommedia.in Website: surecommedia.in

news

Emirates SkyCargo adds air freight service to Delhi

New policy at major ports for dry bulk cargo

Emirates SkyCargo, the world’s largest international air cargo carrier, expands footprint in Far East and Indian subcontinent with new weekly freighter service from Hong Kong to Dubai via Delhi from June 1, 2016. This service is being introduced to tap increasing cargo movements between Hong Kong, the world’s top cargo hub and Delhi, India’s busiest cargo hub. Some of the key exports carried by Emirates SkyCargo from Hong Kong to India include pharmaceutical raw materials, electronics and machinery. From Delhi, Emirates SkyCargo connects customers to over 150 destinations around the world via its hub in Dubai. Key exports from Delhi include leather goods, garments, pharmaceuticals and perishables. In addition to providing businesses in both locations with increased opportunities to access new markets, the new service from Hong Kong to Delhi will facilitate growing trade flows between the Far East Asia and India. Emirates SkyCargo also operates freighter services twice a week from Shanghai to Mumbai and onwards to Dubai and 18 dedicated cargo flights from Hong Kong to Dubai.

To increase efficiency of major ports, a new berthing policy for dry bulk cargo will be in place from August 20, the government announced recently. The objective of the new policy is to provide a standardised framework for calculation of norms specific to the commodity handled and the infrastructure available on the berth besides driving higher productivity and achieving near-design capacity of the available equipments and infrastructure. It will reduce berthing time and overall turnaround time of ships, drive higher cargo throughput using the available infrastructure in major ports, and improve utilisation of port assets. Further, the policy aims at increasing competitiveness of major ports by creating value for the trade through reduced logistics cost. “All the major ports will be holding trade meetings between July 1 to July 18 to sensitise the norms, incentives, penalties and charges to be implemented,” a release from the Ministry of Shipping said. Dry bulk cargo currently makes up over 26 per cent of the cargo handled at the 12 major ports while growth in coastal shipping is expected to add about 100-150 million ton per annum of additional dry bulk cargo at ports by 2020-25.

Indian Institute of Management, Ahmedabad Warehouse Design and Management August 8 -12, 2016 This course is designed to develop warehouse management expertize through a set of design, management case modules, and simulation games. Professionals currently managing (or considering to setup) manufacturing distribution centers, export/import warehouses, e-commerce warehouses, courier and packaging centers, cold rooms, bulk storage, 3PL services, agri-warehouses, CFS/ ICDs, who would like to gain a better understanding of warehouse operations, design, and management, will potentially benefit from this programme. Faculty Chair: Prof. Debjit Roy Fees: Rs. 120,000

Legal and Regulatory Issues in Infrastructure

August 29 – September 2, 2016

Infrastructure in India is in a developing phase. With the advent of the concept of PPP, the role of govenrment and the state is being redefined. The main objectives of this programme are to understand the legal issues involved in infrastructure development, study the mechanism of dispute resolution through arbitration and litigation; examine the working of regulators in general and specific to sectors; analyse the role of government in different infrastructure projects; the environment in which civil servants perform in the light of political expectations, and develop an understanding of the Model Concession Agreements of the Planning Commission. Faculty Chair: Prof. Anurag K. Agarwal

Fees: Rs. 120,000

Supply Chain Management

September 5 - 10, 2016

This programme is a one week in-depth practitioner-oriented executive education programme which enables the participants to understand the anatomy of supply chain and explore means and methods by which the supply chain of an organization can be managed to enhance its business competitiveness. The objectives are to expose the participants to the elements of supply chain; understand the challenges in coordinating a supply chain; appreciate the role of supply chain in enabling business competitiveness and explore contemporary trends and issues in effective supply chain management. Faculty Chair: Prof. N. Ravichandran Fees: Rs. 140,000 For nomination forms and more information, please contact: Officer - Executive Education, Indian Institute of Management, Ahmedabad Vastrapur, Ahmedabad 380 015 Phone: +91-79-6632 4471/4472-76 Fax: +91-79-2630 0352 (ExEd)/2630 6896 (General) Email: exed@iima.ac.in Website: www.iima.ac.in/exed - july 2016 6 CargoConnect

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news

New cargo terminal at

MIAL to meet e-com growth Air cargo volumes at Mumbai International Airport Ltd (MIAL) are on the rise, and a new domestic air cargo terminal that opened recently is expected to allow the airport to capture a larger portion of Indiaâ&#x20AC;&#x2122;s booming e-commerce market. The new 60,000 sq. ft. facility will contribute an additional 3,00,000 metric tons of capacity and will be used by all carriers, except for Air India and BlueDart, who use their own cargohandling facilities.MIAL projects medium-term growth in the air cargo business at seven to eight per cent annually, with e-commerce currently making up about 75 to 80 per cent of the airportâ&#x20AC;&#x2122;s total domestic cargo.

Railways starts time table freight service to Delhi Indian Railways has started a weekly cargo train which will run at a scheduled time on the route like express trains. With this, vegetables, fruits and pharmaceuticals can now be transported in specially designed ventilated containers from Chennai to Delhi. A statement from Southern Railway said that the initiative is aimed to streamline freight traffic and attract parcel consignments. Cargo trains operated by a time table are expected to help attract freight traffic from road to rail. Named Cargo Express and run by CONCOR, the first train from Chennai (Tondiarpet) to Delhi (Okhla) was flagged off recently. The trains from Chennai to Delhi will be operated every Saturday at 7pm and will reach Delhi in 61 hours.

Logistics development key to economic growth: RBI RBI in its recent monitory policy has stated that increase in capacity of ports is integral to the growth of the economy. It also recognises development of infrastructure, including ports, roads, and railways as a positive sign of economic revival in the past few years. Statistically, the government has already added more than 20 per cent capacity across the 13 major ports over the last two years.

murthy_krishna@ksrindia.net, , Website : ksrindia.org

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CargoConnect - july 2016

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CONCOR to invest in MMLP in Goa In a bid to provide an impetus the country’s logistics sector, the Konkan Railway Corporation (KRCL) and Container Corporation of India (CONCOR) will enter into a memorandum of understandings (MoU) to set up a multimodal logistics park (MMLP) near Balli railway station in south Goa. CONCOR will invest Rs. 30 crore while KRCL will make available vacant land at Balli for the project for nominal fees on a revenue sharing basis. Minister for Railways Suresh Prabhu recently laid the foundation stone for the MMLP project at Balli. The MMLP facility will be initially spread over 94,000 square meters with a scope for expansion as the traffic may grow in future.

VietJet boosts air cargo capability In a move that could reconfigure the regional air cargo market, VietJet has finalised an order for 100 single-aisle 737 MAX 200 jets. The signing ceremony for the estimated US $11.3 billion deal, conducted by Nguyễn Thị Phương Thảo, President and CEO, VietJet and Ray Conner, CEO, Boeing Commercial Airplanes, concludes the largest-ever single commercial airplane purchase in Vietnam’s aviation history. Vietjet is increasing its international and domestic destinations, adding Ho Chi Minh City and Kuala Lumpur this month. While narrow-body jets carry less cargo than their wide-body counterparts, 100 more aircraft represent a significant cargo capacity increase and positions the carrier as a strong contender in markets that it adds. Once delivered, the 100 additional aircrafts will almost triple the number of jets in service at VietJet, making it one of the largest low-cost carriers in the region.

Torpid airports to be converted into SEZs The Centre is mulling a plan to convert unused airports in India into Special Economic Zones (SEZ) for aircraft leasing companies to park their aircrafts, Civil Aviation Secretary RN Choubey said in a statement. “Leasing companies can park 50-100 aircrafts. The companies can then come, take test flights and place orders,” Choubey said and added that the ministry would pursue the proposal. He said an AAI airport lying unused in Hyderabad can be utilised for the same purpose.

SPECIAL feature

12 CargoConnect - july 2016

SPECIAL feature

For long, ‘Green’ has been a handy catchphrase for businesses and policy wonks, signaling their commitment towards preserving environment, by prefixing it with almost everything. There are many environmental issues in India. Air pollution, water pollution, garbage, and pollution of the natural environment are all challenges for our

ny discussion on green logistics remains confined to transportation, Although it is a major sub-sector of logistics. Logistics includes f ac i l it ie s l i ke wa r e hous i n g, transport terminals, packaging, distribution, material handling and even disposal. If we avoid the fallacy of equating logistics with transportation, then only we can understand the negative externalities of logistics activities. Logistics companies in India are waking up to the global trend of offering green services to their customers and are showcasing what they can do to reduce their carbon footprint. Internationally, logistics firms are already offering such solutions as part of their strategy to reduce their environmental impact. Such a move was prompted by a mix of regulatory requirements and demand for such services from customers, who are keen to be seen as ‘carbonconscious’. Over the world, transportation and logistics are seen as key contributors to global greenhouse gas (GHG) emissions. Globally, the transport sector accounts for ten per cent of total Carbon-Dioxide

country. The logistics sector is one of the major contributors to environmental despoliation. However, the logistics sector is no exception in taking various measures in contributing to the preservation of the Mother Nature. With inputs from the industry maestros, we discuss about the measures and also the initiatives taken by the logistics companies who swear by their commitments in delivering ecofriendly supply chains to support their green strategy

Roselin Kiro

emissions. In India, the sector accounted for seven per cent of GHG emissions in 2007, and this is expected to double to 14 per cent by 2025, according to the Environment Ministry. Around a quarter of global CO2 emissions are due to fossil fuel combustion in transport sector alone, according to International Energy Association. While Europe and the developed world have taken concrete actions to reduce Green House Gas (GHG) emissions from logistics and transportation sector, the developing nations have barely moved beyond paying lip service. As witnessed in the developed world, increase in emission is in lockstep with economic growth; for instance, the CAGR in Indian CO2 emissions from transport sector due to fossil fuel combustion has been around 4.5 per cent compared to 1.16 per cent in Organisation for Economic Co-operation and Development (OECD) and 1.04 per cent in North America in the previous decade. No wonder, environment and growth are often couched in mutually antagonistic terms, especially in India, which is in a great hurry to catch up on growth. Let us find out what the logistics companies have to say about contributing from their end.

july 2016 - CargoConnect 13

SPECIAL feature Srinivas Sattiraju, Chief Executive Officer, Delex Cargo India Private Limited

Delex is the first company in Indian logistics fraternity to become a member of Green Freight Asia, a Singapore based Industry led program with the key objective of helping lower fuel consumption across Asia-Pacific sourced road freight movements."

‘Green’ Initiatives Adopted by Logistics Industry ‘Go Green’ is a buzzword that has found its place in logistics industry off late. Srinivas Sattiraju, Chief Executive Officer, Delex Cargo India Private Limited gives an insight on the matter and says, “Most of the companies involved in transportation have taken steps to reduce the carbon emission by following some of the norms laid down as per the Euro/Bharat Norms/guidelines. Other than managing and reducing carbon emission, SCM companies are taking small initiatives at workplace and warehouses and creating general awareness about the green environment” H i g h l i g ht i n g some of t he m ajor initiatives that are being taken up the SCM companies, he adds, “Companies have started highlighting their green initiatives with their customers. We, at Delex, are regularly calculating the customer-wise carbon emission caused by the transportation activities carried out by Delex for a given customer. These reports are shared with the respective customers if such a customer demands to have such a report, on an annual basis. These reports shall show the CO2 emissions that occurred owing to the transportation activities carried out

14 CargoConnect - july 2016

while transporting and distributing a given customer’s load. CO2 emissions are a major component of any logistics activity that directly impacts the climate.” Logistics companies are offering to work with their customers to identify areas for improvement, across their entire logistics chain and ways to achieve a reduction in greenhouse gas emissions, by identifying opportunities for

‘Go Green’ is not a stand alone activity but needs to be woven into the business and operations tapestry. optimising trade/distribution routes and transportation modes. Ajit Venkataraman, MD, APM Terminals India Pvt Ltd shares about their initiatives and says, “The logistics industry in India has slowly but steadily started realising the impact of its operations on the environment. ‘Go Green’ is not a stand alone activity but needs to be woven into the business and operations tapestry. In a complex set-up of container freight stations,

warehousing, transportation and ancillary services that we have at APM Terminals Inland Services, South Asia, it’s a specialised function that falls under Environment and Operations.Be it chemical or fuel spill, water contamination or pollution, leaking tanktainers/containers, emission of CO2 or any such air pollutants; our approach is to minimise the risk at design stage, by taking control measures. Regular energy audits, monitoring CO2 emissions, Enhanced Preventive Maintenance, re-use and recycling initiatives are some of the tools used.” Every sector of the logistics be it logistics companies, warehouses, railways, roadways, airlines, ports, seaways, etc,; are becoming conscious about the fact that it is high time to take effective measures to preserve our nature. As far as the initiatives by the airlines are concerned, Veli Polat, Regional Director, Lufthansa Cargo says, “Logistics sector is definitely making its contribution to ‘Go Green’. At least in the airline industry, we set the most ambitious targets to reduce our impact on the environment (note: a carbonneutral growth of aviation CO2 emissions from 2020, an average improvement in fuel efficiency of 1.5 per cent per year from 2009 to 2020 and a reduction in net CO2 emissions of 50 per cent by 2050, relative to 2005 levels). But of course, there are still a lot of possibilities in the whole logistics sector, for example, new technologies and materials, which could lead to even more efficiency in the future.” With so much impact given on digitising India and making everything ‘e’, it is high time that every industry, every sector and individual takes up this one major step which is beneficial for all. Sharing more on this, Anand Yedery, Regional Cargo Manager, South Asia, Middle East & Africa, Cathay Pacific Airways avows, “E-freight initiatives at Cathay Pacific are leading the complete transaction from paper based to an e-transaction. The e-airway bill,

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SPECIAL feature Veli Polat, Regional Director, Lufthansa Cargo

Logistics sector is definitely making its contribution to Go Green. In the airline industry, we set the most ambitious targets to reduce impact on the environment." liability e-contracts, digital invoices, e- filing and storage initiatives and the overall process improvement steps are important contributions towards the green initiative.” Waterway is considered as the most environment-friendly mode of transport. They also provide huge amount of freight over longer distance. India has a vast coastline of over 7,500 km with 12 major ports and 187 nonmajor ports that carry nearly 95 per cent of India’s trade volume. It is an important natural resource for the country’s trade. Realising the importance of the maritime sector for economic development, Government of India has announced a number of initiatives to facilitate and grow maritime trade. Ravindra Gandhi, Territory Director, Peel Ports tells his tale and says, “We believe that the use of inland waterways in India will certainly boost both inbound and outbound transportation, thus propelling its economic growth. Given the country’s issues with hinterland connectivity, encouraging waterways would certainly reduce both transportation

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costs and fuel transport consumption. In terms of energy consumption per ton of freight, inland shipping is already regarded as one of the most efficient means of transport. Most Indian ports are currently unable to realise their full potential due to poor rail and road connectivity. Furthermore, in most door-to-door transport chains, the costs of rail/road transport are significantly higher than both maritime and port costs combined. Today, it costs approximately `1.5 per km to carry cargo by road or `1 via rail, as compared to the 25 per km through waterways. Waterways also make it possible to carry much larger quantities of heavy/bulky goods such as coal, timber etc. Inland waterways are hence seen as a viable option for long distance transportation.”

Sustainable Development via Environmental Preservation In order to attain sustainable development through environmental preservation, it is first important to generate awareness and instill a positive attitude towards keeping the environment clean and green. Timely training and programs on energy conservation and environmental preservation play an important role in driving this agenda. Sattiraju shares, “Delex has joined Green Freight Asia initiative, as a member and is closely working with them to learn and align with new initiatives towards contributing to the cause of Green Logistics. A government sponsored initiative with support of various associations or chamber of commerce type independent industry bodies should come forward to unite various logistics players in order to create a platform that discusses and implements a string of measures, mutually agreeable to all the stakeholders, which would enhance awareness and drive everyone towards a set of better Green Logistics initiatives.” The Ministry of Shipping has taken several steps in this direction, the most recent being ‘Project Green Ports’, a programme introduced to help make 12 of India’s major ports cleaner and greener, given that they handle 61 per cent of the country’s total cargo traffic. Adding more information, Gandhi avows, “Some of the initiatives of this programme include acquiring equipment required for monitoring environmental pollution, acquiring dust suppression systems, set up of sewage/waste water treatment plants and introduction of projects for energy generation from renewable energy sources. In addition, the government’s recent move of declaring 111 rivers across the country as national waterways will certainly help in driving economic growth in a sustainable manner.” Yedery adds, “This can be achieved by working with industry partners through

SPECIAL feature Anand Yedery, Regional Cargo Manager, South Asia, Middle East & Africa, Cathay Pacific Airways

Our e-freight initiatives are leading the complete process from paper based to e-transaction. The e-airway bill, liability e-contracts, digital invoices, e-filing and storage initiatives, etc., are important contributions towards green initiative."

operational efficiency, fleet development and addressing climate change through the development of carbon management plan and a carbon offset project.” The key to provide balance of sustainable development and environmental conservation is close collaboration with the stakeholders and communities in which the businesses operate. A conscious and combined effort is the call of the hour to deliver positive results. Venkataraman says, “We partnered with five leading multinationals in the maritime industry under the ‘Go Green’ initiative. The joint effort helped gather and recycle over four tons of material sent into the sea at various beaches in Mumbai along with immersion of idols during the Ganesha festival. Another example of successful collaboration with the community is the setup of a dedicated bio gas plant in Siruvakkam village by APM Terminals Inland Services, South Asia close to our facility in Chennai. While the company is financially responsible for its maintenance, it is the villagers who own the plant and are equally responsible to ensure its sustainability. The plant has the capability to convert bio gas into electricity which lights up the main street in the village. Special education and training in this area has been provided to villagers to

18 CargoConnect - july 2016

ensure it is a sustainable project.” Adding some more information about attaining a sustainable development along with environmental preservation, Polat shares, “In all our activities and decisions, we try to keep the impact on the environment as low as possible. The aspects which we cannot avoid, we try to reduce. It is therefore a matter of course that we have an energy- resources- and waste disposal management, all coordinated in our global environmental management system. On that track, it is important to set own challenging targets across the whole company; for example we aim to reduce specific emissions by 25 per cent until 2020. We had already achieved 13.5 per cent points in 2015. Another important factor is to involve the employees. Without their creativity, engagement, and support, we would not be able to widen the scope of our environmental commitment. We could attain even more if everybody along the value-chain takes responsibility for their action and includes the thought of sustainability in their decision.”

Some Measures Accord i ng to I nte r n at ion a l E ne rg y Association, the CAGR in Indian CO 2 emissions from transport sector due to fossil fuel combustion has been around 4.5 per cent compared to 1.16 per cent in other developed countries. Environment and growth are often expressed as in antagonistic terms, especially in India which is in a great hurry to catch up on growth. Rapid economic growth has brought many benefits to India, but on the environmental front, significant levels of air and water pollution is said to have occurred, especially in and around larger cities and

industrial centers. For any business it is important to identify where it has the greatest leverage to reduce the environmental impact. Polat says, “Years ago, the LH Group has developed together with IATA a 4-pillar strategy. These four pillars are technological progress, operational measures, improved infrastructure and economic measures. Here, as already mentioned, the most important lever of an airline is the investment in new technology – for example Lufthansa Cargo operates five B777, the most efficient and quietest freighter of its class. Another lever for an airline is the reduction of weight on board; to achieve this, Lufthansa Cargo successively completed introduction of e-AWB (digitalisation of air waybill) process worldwide in 2015. This would alone allow the airlines to cut down emissions by 225.3T. Lightweight containers are introduced at Lufthansa Cargo; thus we could reduce 6,800T emissions annually. There are various measures, at Lufthansa Cargo we have a dedicated fuel efficiency team that currently coordinates a 50-measurement-list searching and realising continuous measures for improvement.” Pinpointing some of the environment-friendly measures that can be taken by the airlines, Yedery says, “Cathay Pacific is committed to implementing sustainable solutions such as improved fuel efficiency, modernising its fleet and the use of sustainable biofuels. In fact, all our ground handling agencies and suppliers also abide by our sustainability Code of Conduct. Internationally, we have been busy working with ICAO, other regulatory bodies, airlines and NGOs to design a global market-based measure for CO2 emissions reduction to come into force from 2020. This will be a game changer for carriers because it will place a monetary value on CO2 emissions and we will have to pay for our growth post-2020. Cathay Pacific is actively involved in these international conversations to ensure that

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SPECIAL feature Ravindra Gandhi, Territory Director, Peel Ports

Seeing India's hinterland connectivity, encouraging waterways would certainly reduce both transportation costs and fuel transport consumption. In terms of energy consumption per tonne of freight, inland shipping is already regarded as one of the most efficient means of transport."”

the resultant global offset mechanism is fair, equitable and avoids competitive distortion, and have been calling on governments to establish such a scheme since 2008.”

Is Going Green Economically Feasible? Logistics companies these days are working with an aim to co-ordinate industrial activities in an eco-friendly way that meets customer’s requirements at minimum cost, though it is not so easy to combine economic growth and environmental sustainability, but it is possible, by cutting down on energy consumption, on waste and on recycling of resources. At the same time conserving the resources add value to the company as well as the environment. One has to invest some capital to run the business. So, why not start in an environment friendly way and invest accordingly? As the mindset of people is altered and availability of e eco-friendly material is made easy, it will eventually become economically feasible. Going green does involve considerable investment but substantial reductions in global carbon emissions are urgently required to mitigate the impacts of climate change.

Green Initiatives Different companies have adopted green initiatives at their end as a contribution towards environment safety and security. Talking to few experts from different compa n ies who sha red some of the initiatives, here are some highlighted points. Sattiraju shares, “General awareness in terms of reducing and controlling usage of paper, electricity, waste disposal is periodically circulated through our in house magazine and any suggestion they have on better alternatives is always welcome. All our warehouses have been carefully chosen to

20 CargoConnect - july 2016

weight per aircraft but is extremely durable and strong. employment We have introduced e-AWB in 2014 in competitiveness choice India where the entire process of cargo ECONOMY booking, Airway bill execution and handling is now electronic. Thanks to the extensive support of our trade partners; we now have the highest penetration SOCIETY ENVIRONMENT for e-airway bills in India and globally. climate change safety We even have a number of state-of-theSUSTAINABLE air quality health LOGISTICS art sustainability-driven features in our noise land use access biodiversity cargo terminal in Hong Kong that include equity waste a material handling system functioning on regenerative power – something ensure maximum natural lighting is available made possible by the level differences of the during the daytime and avoid unnecessary use of electricity. All our operations centers operating cargo hoists.” Polat shares, “Cargo Climate Care are regularly guided and reoriented to use energy efficient lighting systems at all our is a corporate objective that we pursue facilities, so as to reduce power consumption. strategically and consistently as our We emphasise on usage of trucks that are commitment to environmental protection. compliant as per the prevailing emission Therefore, Lufthansa Cargo has developed norms set by respective government bodies. an ‘Environmental Cube’ comprising Delex is the first company from Indian of eight action areas which serves as a logistics fraternity to have become a member framework for continuous improvement of of GFA (Green Freight Asia), a Singapore environment performance including ‘Green based Industry led program (member driven) Flying–Reduction of Emission’, ‘Green with a key objective of helping lower fuel Ground-Reduction in Energy and Resource consumption across Asia-Pacific sourced road Consumption’, Environmental Management freight movements, reduce CO2 emissions System-certification according to ISO 14001’ from these movements and lower shipping and ‘Green Philosophy-Green solutions’. In all costs across the supply chain. The membership of our measures, we focus on responding to is awarded based on our initiatives to share shifting requirements and new developments the data on carbon emission and commitment with innovative, environment friendly and made to reduce the carbon emission through economically viable solutions.” Venkataraman shares, “APM Terminals continuous process changes as suggested by the member fraternity of Green Freight Asia.” Inland Services, South Asia contributes Yedery shares,“Cathay Pacific has worked to the environment through its Corporate to reduce Carbon Dioxide emissions by Social Responsibility (CSR) initiatives. modernising its fleet, encouraging our Under our 5S model [Srushti (Environment), suppliers to use battery operated ground Surakshit (Safety Sensitisation), Swasthya handling equipment, adopting flexible (Health and Hygiene), Sudhar (Community routes and continually looking at innovative Development), Swabhiman (Livelihood measures to reduce weight on the aircraft. Generation)] of CSR, one of the programsWe have adopted fiber-made, light-weight Srushti, focusses on environment-led and improved ULDs which not only reduces initiatives in the clusters we are present. The growth efficiency

SPECIAL feature Ajit Venkataraman, MD, APM Terminals India Pvt Ltd

We believe, the key to providing a balance of sustainable development and environmental conservation is close collaboration with our stakeholders and the communities in which our businesses operate. A conscious and combined effort is the call of the hour."”

Traditional Supply Chain Management

Green Supply Chain Management Manufacturer

Retailers Manufacturer

Retailers

Logistics Providers Suppliers

Suppliers

Consumer

Logistics Providers

Consumer

Excessive emission of greenhouse gases, environmental waste, and usage of resources

Traditional Supply Chain Management vs. Green Supply Chain Management selection of environment programs is a result of an in-depth study by APM Terminals Inland Services, South Asia of the community we operate in and its existing state of affairs. The efforts are focussed on initiating projects that are sustainable and deliver a lasting impact.” Gandhi shares, “Globally, Peel Ports has been recognised for its commitment to adopt an environment friendly approach in the UK. The company’s Green Water Highway Shuttle is an innovative, sustainable container service operated by us. It stretches 36 miles from the Port of Liverpool to Manchester right into the heart of the UK, connecting deep sea cargo with the inland container hubs. This offering has generated a saving of 1.8 tons of CO2 per sailing with each round trip from Liverpool to Manchester. The shuttle has attracted significant business interest from major international shipping lines, freight forwarders, cargo owners (both importers and exporters), who are realising both the cost and carbon benefits that the service provides. The efficiency savings offered have encouraged growth of the

22 CargoConnect - july 2016

Minimised emission of greenhouse gases, optimised usage of resources, and huge reduction in waste

Source: http//environment.scientific-journal.com

use of the shuttle from 3,000 containers in 2009, to 22,500 in 2013, with a volume that will only increase with the development of port-centric warehousing along the Manchester Ship Canal. With regular inward and outward sailings and a transit time from port to port of six hours, the shuttle currently saves customers based in Trafford Park over 30 road miles and 30kg of CO2 per container moved on the shuttle as opposed to road.”

Miles to Go While India is managing growth, the green initiatives have not come in to serious focus of the successive governments till recently. Governments, having recognised that serious efforts are needed towards developing green sustenance while promoting industrial growth have also recognised that to break the pattern of environmental degradation and to arrest the rapid depletion of natural resources, it is important to adhere to strict emission norms and an effective environment policy that guides and governs other areas. The cost incurred in reducing emissions levels while driving the

economy growth can be substantially offset by the savings achieved through improving the health of the population and saving the ecology for future generations. The natural environment is central to economic activity and growth, providing the resources we need to produce goods and services, and absorbing and processing unwanted by-products in the form of pollution and waste. Environmental assets contribute to managing risks within economic and social scenario, helping to regulate flood risks, regulating the local climate (both air quality and temperature), and maintaining the supply of clean water and other resources etc. This underpins economic activity and wellbeing, and so maintaining the condition of natural assets is a key factor in sustaining growth for the longer term. Correspondingly, economic growth contributes to the investment and dynamism is needed to develop and deploy new technology, which is fundamental to both productivity and managing environmental assets. Hence, the industry is a part of the problem and definitely a part of the solution too.

cover story

Handling the Super Heavies Right 24 CargoConnect - july 2016

Heavy lift cargos present unique challenges and

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opportunities for transportation. Movement of these cargos to the destination requires a lot of specific and sometimes unprecedented planning. Many factors need to be taken into consideration while moving such cargos. In this story, the industry experts have helped to figure out whether India has the infrastructure and the facilities and the right strategies for the transportation of heavy lift

Roselin Kiro

july 2016 - CargoConnect 25

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n general, heavy lift cargos are generators, fabricated casings, turbines, reactors, boilers, towers, casting, overhead cranes, heaters, presses, locomotives, boats, military equipments, deep sea oil exploration setup, parts of oil rigs and production platforms, etc. These items weigh between approximately 1 to 1000 tons and can be more than 50 meters high and wide. Movement of these heavy lift and oversized cargos are generally difficult and time taking as compared to container movement. Movement of these cargos to the destination requires a lot of specific and sometimes unprecedented planning.

Transport Planning The transportation, handling and installation of heavy items which are indivisible, and of weights generally accepted to be in the range of 1 ton to over 1000 tons and of widths/heights of more than 100 meters that are too large to fit into normal con-

Special trucks or trailers with extra large loading areas often carry out transports by road. For air freight there are special large-volume aircrafts that carry upto 250 tons of freight. tainers or onto conventional transporters, that generally need a lot of pre-planning. Sharmila H Amin, Managing DirectorSouth Asia India, Bertling Logistics India Pvt Ltd says, “Logistics management in India has become complex, with about ten million retail outlets to cater to the needs

26 CargoConnect - july 2016

of one billion people. Indian entrepreneurs are forming new companies and taking advantage of government policies designed to promote greater efficiencies in a sector where large global businesses are yet to make their mark.” Sharing her views on the importance of individual transport planning she adds, “Heavy lift cargoes are specific to a particular industry and are as per customer requirement there is no way to achieve the desired level of standardisation to design a routine transport solution. Heavy lift cargoes are generally meant for various oil and gas and core industry sectors like Power, Petrochemicals, Fertlisers, Infrastructure, etc. Every infrastructure project is unique and requires machinery which is suited only for that project. For transport and handling, you may have standard equipment in the form of loading equipment and transportation equipment but for the actual transport and handling, you will always need to design and implement in a unique fashion.” In the world of heavy lift, each project is unique in terms of the challenges and the requirements are also dynamic. Gautam Raj Prashar, Vice President-Marketing, NTC Logistics India Pvt Ltd says, “To tackle this, our entire fleet of specialised trailers is modular in nature – which means, they can be easily customised to accommodate varying dimensions. Since our Hydraulic trailers are modular in nature, this enables us to customise the combinations in accordance to the customer requirements to ensure safe transportation, timely delivery and more importantly, cost effective reliable logistic solutions.” Giving full consent to the importance of individual transport planning, Praveen Somani, Director, Inland World Logistics avows, “Due to the odd size and weight of the heavy lift cargo; every job requires different set of solutions. Most of these are for new large projects which may/may not have proper road/rail connectivity, making it all the more difficult. At times, these types of movements entail multimodal solutions. However, the general mix of cargo that we have been seeing is within the range of 100-200 MT single size, as not too many large infra projects under development. However, the complexity increases even more with these with respect to various road lengths, terrain, as well project locations.” Different factors need to be taken into account while transporting heavy lift. Sanjay Goel, CEO-India, Bolloré Logistics highlights, “Transportation of

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Sharmila H Amin, Managing Director - South Asia India, Bertling Logistics India Pvt Ltd Heavy lift cargoes are specific to particular industry and as per customer requirements. There is no way to achieve the desired level of standardisation to design a routine transport solution.

Modes of Transportation

special permits are required in matter, Ramesh Babu, heavy lift items depend upon order to move Managing Director, the criticality of cargo. Urgent heavy lift Seashell Logistics says, delivery requirement has to be “Transporting heavy lift airlifted, but considering the cost cargo. cargo can also come with optimisation, sea freight is the most certain restrictions that need to convenient way. Supply chain solutions from shipper to consignee must be designed be carefully considered. For example, some before handling such projects.” In heavy waterways and roads may have bridges that cargo handling, first of all dimensions and will restrict the weight of the cargo. Certain weight needs to be considered when choos- roads may have width and height restricing the best transportation method. Then, tions that needs to be followed, and certain routes through which the cargo will move products may be restricted to how, where, needs to be thoroughly reviewed to ensure and when they can travel. For example, if safety of the cargo, people and the place the heavy cargo has planned to move from a which will come during its movement. crowded place and there is a chance of huge Next comes the time when it needs to be traffic jam due to its transportation, it can estimated to keep the project cost well un- be given permission to move only at night der the estimated budget. Generally, special or may not at all be allowed to move at that permits are required in order to move the route. All of this requires a vast amount of cargo. In some individual transport, special experience, decision-making, planning, catools and equipment may also be needed to pability, and creative thinking to transport get the heavy cargo onto its chosen method on time, within budget and with safety of of transportation. Throwing light on this cargo and others.”

28 CargoConnect - july 2016

It is not unusual that heavy lift cargo requires several modes of transportation.Special trucks or trailers with extra large loading areas often carry out transports by road. For air freight there are special large-volume aircrafts that carries up to 250 tons of freight. Last but not the least, there are heavy lift ships that are designed to carry excessively large loads – anything that is too large or heavy to be easily transported on a conventional ship. These are two types: semi-submerging ships (more commonly known as a flo/flo) that are capable of lifting another ship out of the water and transporting it; and vessels with unloading facilities at inadequately equipped ports. Let us find out that in countries like India, which is the most feasible and cost effective means of transporting heavy lift items? According to Vivek K Kumar, Regional Vice President, India, Expeditors International (India) Pvt Ltd, “The heavy lift business can be broadly classified as anything over 35-40 tons and indivisible, the benchmark being that it cannot ship on containers due to its weight or size. This type of business can be both EXIM (international trade) and domestic. From an Indian standpoint, domestically consumed freight continues to use the road network primarily due to location of buyer and seller and more so due to the paucity of inland waterways and dedicated heavy lift capacity on the railways plus last mile connectivity issues related to facilitators like jetties, heavy lifting gear, floating cranes, heavy duty rail sidings and permits/legislation. Increasingly, the super heavy lifts are taking the ocean route wherever feasible on coastal voyages but in the short and medium term, road will continue to be the most preferred mode. For international freight in and out of India, ocean will continue to dominate as the most feasible. Cost-effectiveness

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Gautam Raj Prashar, Vice President- Marketing, NTC Logistics India Pvt Ltd Infrastructure had posed a severe challenge to the heavy lift industry. Last year, the Ministry of Road Transport and Highways have laid out various guidelines to facilitate smooth process for transportation of heavy lift items.

is a more difficult subject to pin down as it is also linked to time and a combination of both will prevail. The third factor, which is relatively new, is the green footprint of doing business. In terms of carbon effectiveness, ocean/coastal/waterways is a more effective way of transporting heavy lifts.” Some companies also choose the mode of transport according to the requirements of the customers. Oilver Bohm, CEO, Schenker India Private limited explains, “International transportation of break-bulk items is mainly done through air or ocean freight. We select the mode of transport as per the requirement of customers since time and cost factors are inverse and decisive factors for these modes of transport. Ocean freight is cost effective in comparison to air freight but it takes meticulous planning and execution spanning over months. Air freight is the fastest of all modes and used for immediate replacement/ urgent deliveries or any other special requirements with high transit cost associated with it. Typically, most of the project cargo is shipped via ocean freight with well-planned execution plan with special arrangements in place for pickup, transportation and doorstep deliveries.” Airlift, sealift and road transportation (trucks and trailers) are three different modes of transportation and cannot be taken as the substitute of each other. The most feasible solution for transporting heavy lift cargo is to understand the location. A combination of sea/road is something which provides a significant savings. In recent times, many projects have worked on the RoRo model. Harmonising on the same tune, Amin says, “The most suitable equipment for heavy lift is determined by the project location. Thereafter, the type of equipment is planned maybe via road or inland waterway or air. In general, sea/ocean transportation is preferred whilst imports are concerned. Onshore services are followed by transpor-

30 CargoConnect - july 2016

tation using heavy lift trailers equipments. In case a country has a good network of roads this would be the best option. Also, in India, we are looking at using our inland waterways for hinterland projects.” Highlighting on the limitations of airlift, and talking about the preferred mode of transporting heavy lift, Prashar says, “Airlift has severe limitations when it comes to heavy lift items with the largest cargo aircrafts only having a capacity of 150MT. For heavy lift, preferred mode of transport is sealift(barging/heavy lift vessels), both in terms of commercial viability and safety. For first and last-mile delivery, self-propelled modular trailers are utilised for transportation till nearest seaport or jetty.”

The detailed

planning should be done jointly by the shipper’s representative, cargo superintendent and the carrier’s surveyor.

Indian Scenario It is important that lifting operations for heavy cargo are planned properly. Detailed planning should be done jointly by the shipper’s representative, cargo superintendent and the carrier’s surveyor. According to Somani, “Route survey is a mandatory advice for all service providers involved with movement of heavy lift cargoes. We have been getting regular professional survey done to understand the route, complexities and arrive at the right solution, which will not only reduce cost, but also ensure smooth and timely delivery without any damage to equipment, men and machinery. Many companies in the past have foregone this activity and had to pay miserably as the overall cost including movement, damages to equipment and repute is at stake.” Explaining elaborately on the operational procedures followed by the Indian companies who handle heavy lift, Babu tells, “In India also, international practices are followed in heavy lift transportation. For efficient cargo movement, lifting operations for heavy cargo are planned properly. The detailed planning is done jointly by the shipper’s representative, cargo superintendent and the carrier’s surveyor. Then the ship/ trailor owner reviews its safety management systems and performs risk assessment before any heavy lifting operations are undertaken. The detailed information is provided in relation to the cargo, including a description of the cargo, its gross weight and principal dimensions. Wherever appropriate, vital information such as gross weight and centre of gravity is marked individually on each unit so that it is clearly visible to the crew and the owner. A careful assessment of the arrangements at both the load and discharge ports is also completed when sealift is involved.” In India, voyage details, including the weather forecasts and worst case scenarios for stabil-

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Vivek K Kumar, Regional Vice President, India, Expeditors International (India) Pvt Ltd From an India standpoint, domestically consumed freight continues to use the road network primarily due to the location of buyer and seller. More so due to the paucity of developed inland waterways and dedicated heavylift capacity on the railways plus last mile connectivity issues related to facilitators.

ity conditions is also studied to promote safe conditions throughout the voyage. He further adds, “This step becomes more important when cargo is costly and can be damaged in bad weather conditions. One important step that is followed is lashing and chocking. The lashing material is checked to confirm that the strength and design for the cargo is secured. The vessel’s cargo handling equipment (including its on-board cranes) and cargo spaces are also checked to verify that there is appropriate adequacy. When a vessel regularly carries heavy lift cargoes, it is useful to

prepare a standard checklist for loading and discharging such cargoes. Such practices make cargo handling a benchmark and are frequently practiced in India.” Adding into it, Prashar says, “Supply chain management for heavy cargo is a delicate operation involving coordination of several teams for flawless operation. Especially in a developing nation like India, planning is to be done with utmost caution to ensure that no damage is done to public infrastructure. The process starts over six months prior to the start of the project. Engineering teams visit the loading point

and the destination sites along with third party surveyors to study feasibility of lifting operations. Then the route survey team proceeds with detailed inspection of the transit route collecting detailed information regarding the list of hurdles such as bridges, route boards, toll plaza, electric shutdown, etc., based on which detailed proposal is submitted to the customer.” Talking about the operations in their company, Bohm says, “Globally, we have the experience of more than 500 thousand freight tons of project cargo and are the official freight forwarder

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Oilver Bohm, CEO, Schenker India Private limited Projects/break-bulk movement is a 100 per cent customised job from the purchase order issue through international transportation, pre-carriage, port handling, domestic road/rail movements and delivery of goods. Every step in this is riddled with uncertainties, as well as the complexities of the uniqueness of each situation.

Commandments for Heavy Lift Service Providers Customs procedures, documentation and regulations: Since the customs laws, inspection requirements and duties vary from country to country, They need to be very precise for door deliveries of projects. Cargo Dimensions and Route Feasibility: This is very important part of project execution and a major factor for deciding the cost. Project/item specification might also dictate usage of one transport mode over the other. This has to be determined very carefully keeping height/ weight/length etc., specifications in mind since any miscalculation adds to huge delay and additional cost to all involved. Inland Transportation: A project cargo on the public road may create safety and environment concern. This has to be taken care with the government and civic agencies for execution. Delivery/Installation timelines: Sometimes, even the smallest deviations in sourcing locations or amendment in earlier terms can alter the delivery/installations of projects. It is best to work-out potential risk/situations in advance and build flexibility in the plan accordingly. Packaging and Product design: Packaging is an important part of a project supply chain. It has to be maintained for a fool-proof safety during the transit.

34 CargoConnect - july 2016

for the Government of India since 1963. With this background, we follow all the procedures which are required to be done for such shipments as standard operating procedures. Above all, we have our own global quality parameters which are to be followed in executing any special project/breakbulk transport.” Pinpointing why a joint planning is required for all the stakeholders while transporting heavy lift cargo, Kumar says, “In terms of EXIM freight, toolbox meetings, joint surveys and method statements are more or less the norm for handling the super heavies. On the domestic side of the business, there is due diligence exercised by stakeholders but perhaps not as formally as in the case of freight being loaded on an oceangoing vessel. Due to the introduction of new legislation and improved infrastructure, these considerations are becoming more and more important.”

The Risk Factor The safety and workflow in the loading process of heavy lift cargo is very important. Cargo that is not properly secured can cause severe accidents and loss of cargo, the loss of lives, vehicles, or cause environmental hazards. Loading and discharging of heavy lift cargoes requires great importance to avoid any kind of risk. Sharing about the safety measures adopted in their company, the experts shared their tale. Amin avows, “We have predefined HSE policy and procedures as well as an in house HL Engineers’ Team, with engineers at each of our global offices who ensure pre-planning and final execution which is followed along with local rules and regulations. In addition, we have also taken into consideration the safety procedures that our clients instruct us in consultation with their insurance companies. We build ‘for the purpose’ equipment to manage such operations.” Somani adds, “In our company we have created a SOP for handling heavy lift cargoes, which ensures that the equipments can be delivered safely to the destinations. It started with the route survey, proper position of cargo, load balancing, counter weight, multiple pullers if required, lashing of

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Sanjay Goel, CEO-India, Bolloré Logistics Transportation of heavy lift items depend upon the criticality of cargo. Urgent deliveries have to be airlifted; but, considering the cost optimisation, sea freight is the most convenient way. Supply chain solution from shipper to consignee must be designed before handling such projects.

equipment, in between supports, escort vehicles, wiremen team, requisite en route permissions from highway authorities, railway crossing, etc, and finally en-route civil jobs to be handled. Unlike regular transportation, heavy lift cargo movement needs good understanding and study; you can call this science of transportation.” In general, shipper provides cargo details specially dimensions, weight, center of mass of the cargo and delicate parts so that security of the cargo can be planned in advance. If possible cargo drawing is also asked for the pre planning. In addition to these, details of lifting points or slinging positions and if possible information on how best to lift each item is also pre-planned. Gone are the days when heavy lift operations were executed based on experience and thumb-rules by logistics service providers. Talking about the changes that occurr in the heavy lift operations over the period of time, Prashar says, “With significant technological advancements in the past decade, our engineering team is equipped with the latest software and technical capabilities to visualise the entire operation digitally in

36 CargoConnect - july 2016

an accurate manner. Scientific methods combined with practical know-how approach ensures even the most stringent safety norms are met.” Bohm discusses about the safety and security measures adopted by them and says, “We work according to our global QHSSE (Quality, Health, Safety & Security and Environment) standards for such tasks. In India, we have ISO 9001 and ISO 14001 certifications for our facilities and practices. Our QHSSE values comprehensively include global quality parameters, technical expertise to handle the task, and minimal impact on the environment. It also ensures the safest working conditions for all our personnel and subcontractors associated with our operations. Explaining technically about the handling of super heavies, Babu says, “The lifting points should be fitted symmetrically on either side of the centre of gravity and should also be fitted with sufficient spread. Securing points should be of adequate strength and their minimum strength must be advised. The strength and base area of any cradles, foundations or bedding provided, must be known to establish what else is needed for

the support of the load atop the ship’s hatch cover, deck or tank-top, bearing in mind the maximum permissible load. Some heavy-lift items are not fitted with any form of bedding arrangements apart from foundations or legs upon which they would ordinarily stand. Hence it is completely cased in timberwork and is provided with a timber floor that is capable of taking and spreading the weight of the item, while others will be fitted with cradles of limited strength. Information about the construction of base-units is required so that appropriate arrangements can be made on board to bed and support the item adequately and appropriately. If two cranes are used in tandem to lift a heavy cargo then this is done during day only to avoid and miscommunication during lifting. Many fasteners are specifically designed and welded to the ship body specifically for a project. Such measures insure a secure movement of the heavy lift cargo.” Hence, It is very important to explore what-if scenarios to ensure that one is prepared for any eventuality, from investment in new equipment to the temporary closing of a trade lane. All possible risks must be identified, starting with the infrastructure. It is often necessary to conduct a survey and important to plan the proposed route.

Stumbling Blocks The transportation of heavy lift cargo in itself is a challenge because generally two heavy lift cargos may not be same and hence there cannot be a standard procedure to be followed for these cargos. Every heavy cargo movement needs customised solutions. The major hurdles faced by Indian logistics industry are insufficient knowledge and under exposure of logistics solution providers, inadequate infrastructure, and ineffective usage of information technology. Bohm says, “The complex nature of project supply chain starts with the amount of

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Ramesh Babu, Managing Director, Seashell Logistics Airlift, sealift and road transportation (trucks and trailers) are three different modes of transportation of heavy lift items and cannot be taken as the substitute of each other. In most of the cases of long distance movement of cargos, a combination of more than one mode is required without being a substitute of each other.

cost involved which runs in tens to hundreds of [thousands of] dollars. A flawless execution and delivery of cargo requires precise planning, attention to even the minute details, excellent coordination and communication within the different supply chain sections. Additionally, projects/break-bulk movement is a 100 per cent customised job, from the purchase order issue to international transportation, pre-carriage, port handling, domestic road/rail movements and delivery of goods. Every step in this is riddled with uncertainties as well as complexities and uniqueness of each situation.” Addressing the challenges faced both externally and internally, Kumar avows, “This is a subject for detailed discussion but in the interest of brevity, there are factors both external and internal that we could address. Externally, consumers of service could consider engaging the government to invest in making the transport of such goods safer and efficient in terms of time, money, infrastructure and documentation. Internally, this sector could do well to invest in an educational institute that will train a new crop of certified heavy lift operators for various modes of transport. This may improve the performance and efficiency of all stakeholders in the process.” Infrastructure has posed a severe challenge to the heavy lift industry, especially for long haul of tonnages above 200MT where bridges have to be bypassed for safe transportation. Prashar adds on about the polices and says, “Last year, the Ministry of Road Transport and Highways (MoRTH) have laid out various guidelines to facilitate smooth process for transportation of heavy lift items. Additional challenges faced in this sector are the restrictions faced by foreign vessels to perform heavy lift operations with India (coast to coast movements). Once these restrictions are relaxed, we expect more sustainable growth for future mega projects inopower and petrochemical

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Last year, the Ministry of Road Transport and Highways (MoRTH) have laid out various guidelines to facilitate smooth process for transportation of heavy lift items.

sectors where logistics of the heavy components plays a vital role in determining project feasibility.” Explaining about the factors to resolve the challenges faced, Goel says, “Bollore Logistics meets the very specific needs of today’s industrial manufacturers. We design and implement special operations so that the solutions precisely fit the requirements of the main players in the international market, whatever be the scale, origin or destination of their projects.” The challenges vary from location to location. Some basic challenges which need to be worked out is covered in the route survey. A correct and proper study can help in understanding of the movement. If it is higher terrain, one can understand the size of the puller required. Somani thinks a step ahead and talks about natural hurdles. He says, “If it is monsoon, then one needs to understand the water flow as well, as we have had many cases where roads get carried away in heavy lanes. Strengthening of roads, bridges or smaller culverts is required. Many of the Indian highways do not support heavy lift, as they have overhead blockers on route. We have road markers, gates, overhead wires, which at times forces the vehicles to take a detour via in much worse conditions. Even support of local government and villagers needs to be sought in advance to avoid unnecessary hiccups.” Amin adds on “A fragmented market increases paperwork and efforts required to channel resources. The poor condition of roads translates directly to higher vehicle turnover, which increases operating costs and reduces efficiency. These inefficiencies are passed on to the logistics industry, with transportation costs accounting for nearly 40 per cent of logistics costs. As the average fleet size is small, individual truck owners are unable to contract their vehicles directly to companies, and thus freight consolidators and brokers take a commission to provide truck owners

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Praveen Somani, Director, Inland World Logistics Heavy lift cargo is science and not just any transportation. The challenges vary from location to location. Some basic challenges which need to be worked out is covered in the route survey. A correct and proper study can help in understanding of the movement.

cargo requires special kinds of trucks like trailers, flat-racks, open tops and other attached vehicles, all of which are again difficult to find within time and without proper knowledge. These vehicles are not in regular demand; hence, this sector needs more and special investment. Approval for movement of cargo from the desired route. For heavy lift cargo, route permission is required to be taken from the competent authority. This approval is time consuming and has documentation works involved. But, a good initiative has been taken by the Government of India. Now, online permissions can also be taken of the competent authority for the same. Road infrastructure-Cargos having large sizes and huge weights need to be passed through wider roads and strong bridges. Lack of such infrastructure at the shortest route requires a route to be selected which is not shortest and even if that alternative route is selected then that is not risk free. The Role of Advanced Technology-While the freight transportation industry faces an array of challenges, technological advances are being made that offer the potential with consignments. Truck owners lack the bargaining power necesto help address some of the concerns. Besides, in sary for negotiating prices, and provide transportation services the power unit itself, cargo is often monitored, at minimum profit. Increasing costs and dwindling profits afmotivated by carriers desiring to track their challenges fect truck owners’ ability to upgrade and expand their fleets. operations more closely and shippers seekThe most challenging task is to design the supply chain. A can be solved if ing to improve the visibility and manageslightest mistake can cause big damage. Another challenge ment of their supply chains. Emergency is the non-availability of infrastructure in terms of small- proper attention call buttons are also available, utilising er or old bridges, narrow roads, poor connectivity to the a wireless remote device that, when actiis given by the project site etc. Too many compliances and non-availability vated by the operator, provides responders with the precise location of the vehicle. of single window clearance is also a major challenge.” Babu government Additional emergency support technologies elaborates in detail about the challenges and ways to handle it. include automatic vehicle shutdown via the en“Extraordinary dimension and weight of the cargo-Dealing with gine governor, fuel line, or air brake system. Another a cargo of unique dimension is always a challenge for a transporter and a ship-owner. The loading and unloading of such cargo requires expert su- promising technology area is the use of sensors and detecpervision, because of the greater risk of damage or accidents for all involved tors that can monitor both vehicle performance and cargo status. Temperature, pressure and toxic sensors are improvincluding crew and passers-by. ing the safety of hazmat shipments and other fragile cargo. The route through which the cargo moves must be carefully planned. Cargo which exceeds particular dimensions might not be able to pass a low bridge Transportation of heavylift cargo is a biggest challenge, or a narrow passage. If the cargo is too heavy, then its movement must be for which teamwork is absolutely necessary. A well-funcplanned on roads that are in good condition and which can support its tioning team is highly motivated, flexible and can handle critical situations better and faster. Concluding it in the weight. words of Somani, “Movement of heavy lift cargo is science Special type of vehicle for heavy lift cargo-The transportation of heavy lift and not just any transportation”.

40 CargoConnect - july 2016

“Continually Innovative”

july 2016 - CargoConnect 41

feature

Evolving Logistics Sector Seeks Skilled Professionals Good news for those who wish to pursue a career in logistics. According to a report by the National Skill Development Corporation (NSDC), India will need around 28.4 million skilled manpower in the booming transportation, logistics warehousing and packaging sectors. The sector, which currently employs over 16.74 million employees, is slated to employ more than 28.4 million employees by 2022. Ritika Arora Bhola in line with experts, explores the umpteen career opportunities in logistics Sector and highlights qualities required to be a logistics professional

t is that time of the year again, when students have to make important choices that will define their careers. Even if the students have many career choices, making an informed decision is truly a challenge for students. Nowadays, Logistics and Supply Chain Management has become most sought after career options. Logistics is not just about transporting bulk cargo from one destination to another via various modes of transportationâ&#x20AC;&#x201C;sea, air, rail and road, but involves much more i.e. effective supply chain management, warehousing, loading/unloading of products, packing and lashing, etc. Not only men but women are also opting for a career in logistics sector because of the lucrative opportunities it offers. If you are among those who are ready to work all day long, logistics is a perfect career option for you. Going by the statistics, Indiaâ&#x20AC;&#x2122;s logistics industry is currently worth about $300 billion and is set to grow at an annual rate of 12.17 per cent by 2020. According to a report by the National Skill Development Corporation (NSDC), India will need around 28.4 million skilled manpower in the booming transportation, logistics, warehousing and packag-

42 CargoConnect - july 2016

We keep things fresh...

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feature India will lose out in the e-commerce race for quality consciousness if Supply Chain Management is not improved. Hence, education and training through good institutions should be set up in India to complement physical infrastructure that is being created."” P Alli Rani, Director–Finance, CONCOR

• Leadership • Communication • Team Building • Interpersonal Skills

ing sectors. The sector, which currently employs over 16.74 million employees, is slated to employ more than 28.4 million employees by 2022. Hence, in the coming years, this sector will have one of the highest incremental human resource requirement of 11.7 million from 2013-2022, across the 24 sectors that have been mapped for assessing incremental human resource requirement in the country. As of now, according to the National Sample Survey (NSS) 68th round survey, the districts with maximum employment in the transportation and logistics sector are Mumbai, Kolkata,

Hyderabad, Delhi and Ahmadabad.

Eligibility Criteria The aspirant must score at least 50 per cent marks in twelfth standard. If graduate he/she should score at least 50 per cent marks from any recognised university/institution. A bachelors program or short term course in a subject related to the field of logistics would help like Certified Logistics Practitioner (CLP), Business Logistics, SCM, Transport Management etc. One may also opt for an MBA degree or an M.Sc in Supply Chain Management, Transport Management or Logistics. The students are

feature Logistics industry demands education and experience. We offer bachelors and master level programs in Logistics and Multimodal Supply Chain Management. We are working on preparing full-fledged syllabus also for this course." Vimala Britto, Secretary & Correspondent, St. Britto’s Group of

Institutions

also given hands on training in the specific field by the companies itself. You can also get enrolled in universities and colleges which offer straight five year programs that allow students to obtain both a bachelor’s and a master’s degree. Further studies up to Ph.D. level are also an option for anyone interested in research or academics.

4. Ability to think quickly, logically and analytically One should also have leadership and project management skills. Excellent written and verbal skills are also required supported by these abilities and to present thoughts convincingly and clearly.

Qualities and Skills Required

The aspirant should have at least basic knowledge of computers. Information technology plays a key role in the management of the supply chain and is an equally important tool to those involved in transport management and

The essential skills are: 1. Commercial awareness 2. Numeracy 3. Good problem solving skills

• Technology skills

transport planning. Technology-related skills are therefore essential to all logistics managers.

• People skills 1. Leadership – Taking people with you, by being consistently clear on objectives, valuing the contributions of staff and colleagues and gaining their respect. 2. Communication – Ensuring that those you deal with (whether customers or colleagues) always understand what you mean and importantly that you listen to what others says. One of the biggest areas of conflict is ineffective communication.

R. Sai Logistics India Advantage Finished Vehicle Logistics Pan India The trucks/trailers are installed with global positioning tracking system and the location of the trucks/trailers are available on our system via the Internet. Provision for the customer to access this information can be extended. High levels of Expertise and Experience On Line Track and Trace 24x7

R. Sai Logistics India Pvt. Ltd. 603, 604, Vipul Trade Center, Gurgaon-Sohna Road, Gurgaon - 122 018, Haryana, India Tel: 0124-2666080-99, Fax: 0124-2666090, Email: admin@rsailogistics.com

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ANA cargo launched Dreamliner BOM–NRT effective 27th March 2016 Offline Services ex-India Gateways Origin SIN/DEL/BOM/HKG MAA DEL/BOM/HKG BLR/HYD

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feature There is no course available in the country which gives a 360 degrees holistic overview of commercial shipping and related logistics. NMIS has presence in Mumbai Chennai, Kolkata and Delhi." Captain M M Saggi, Director, Narottam Morajee Institute of Shipping

3. Team Building – Motivating and developing people to work effectively together to achieve the desired result, including effective communication, full participation and maximum delegation with appropriate support and guidance. 4. Interpersonal Skills – These are always high on the professional agenda and skills and qualities that are especially important are enthusiasm, energy, drive, perceptiveness, analytical ability, calm, tenacity, adaptability, and resilience.

• General management skills 1. Numeracy – With increasing sophistication, the need for numeracy becomes more essential and whilst not necessarily looking for a mathematics graduate, the ability to understand and analyse data is very important. 2. Problem Solving – The ability to analyse facts, hunches and hearsay, and arrive at a logical, workable conclusion. 3. Decision Making Skills – Having the ability to take often-vital decisions is essential for any management role; this depends on quick and effective appraisal of relevant data, empathy and judgment. Failing to take decisions is never acceptable. 4. Project Management – Such skills are of growing importance across both logistics and transport as people increasingly work in crossfunctional teams.

Roles and Responsibilities As a logistics professional or supply chain and distribution manager, you’ll need to perform the following roles efficiently in order to sustain in this industry: 1. You are required to use computer systems to manage transport costs, stock levels and delivery times. 2. Coordinate with everyone involved

48 CargoConnect - july 2016

Information technology plays a key role in the management of the supply chain and is an equally important tool to those involved in transport management and transport planning. Technology-related skills are therefore essential to all logistics managers.

and control the order cycle efficiently and in an organised way. 3. One should use data from IT systems to evaluate performance and quality and to plan improvements. 4. Allocate and manage human resources according to changing needs. 5. Manage staff and divide work responsibilities in a proper way. 6. Negotiate and liaise with customers and suppliers 7. Develop business by analysing logistical problems, gaining new contracts and producing new solutions. 8. Understand booming e-commerce industry and future prospects 9. Constantly try to improve and develop business performance within the constraints of legislation, fuel costs and rising environmental pressures. You may also be required to do the following: 1. Implement health and safety procedures 2. Manage staff training issues 3. Motivate other members of the team 4. Set objectives 5. Plan projects 6. Work on new supply strategies 7. Plan vehicle routes 8. Use specialist knowledge, such as mechanical-handling systems, to provide consultancy services

Placement Scenario Since logistics is the vital part of any organisation, logistics professionals and supply chain managers are currently being hired in large numbers by corporate houses and multinationals. They are also being hired by the airlines, airports, ground handling sector, warehousing sector, railways, transportation sector, shipping lines, etc. for logistics operations. In India, there’s no dearth of job opportunities for logistics professionals. Though logistics may seem

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feature “The sector clearly sees poor working conditions and low pay scales in comparison to other career options because of poor or non-existent manpower policies. The industry is expected to give a push to Indian economy." Dilip Chenoy, MD and CEO, NSDC

Logistics and Related Fields Warehousing Maritime Packing and Lashing Material Handling Airports and Airlines Ground Handling Railways Infrastructure Supply Chain Management complicated job but it only depends on which facet of logistics you enter. You don’t need any advance degree as such to enter logistics industry. Essential training is usually given by the organisation to their employees. The top-notch logistics companies in India are DHL Express, TNT, Bluedart, DTDC, Allcargo

Logistics, First Flight, FedEx, DB Schenker, VRL Logistics, CONCOR, Snowman Logistics, Agarwal Movers and Packers to name a few.

Pay Packets Logistics professionals are nowadays getting way more than what they used to get ten years back. A

50 CargoConnect - july 2016

beginner logistics professional may expect `15,000-`20,000 per month but experienced Supply Chain Manager earns an average salary of `8,00,000 to `9,00,000 annually. The highest paying sectors include logistics, supply chain, Inventory Management, SAP Materials Management (SAP MM), Vendor Management, etc.

Rising Demand for Logistics Institutes We cannot deny the fact that, at present we don’t have many good institutions that offer courses in logistics and related sectors; but the number is definitely on the rise. At present, we only have a handful of good institutions that offer full-fledged courses namely, CII Institute of Logistics, Narottam Morajee Institute of Shipping (NMIS), JBS Academy Pvt Ltd-Center for Logistics, Maritime and Management Studies and Research, St. Britto’s College, Chennai etc. There are other government and private universities also that offer graduate and postgraduate courses in this specific field like Lovely Professional University (LPU), Jalandhar, School of Petroleum Management, Pand it Deendaya l Petroleum University, Gandhinagar, Gujarat and Asian School of Business to name a few. According to Dilip Chenoy, MD and CEO, NSDC, at present, the biggest challenge for the sector is to attract talent. “The sector clearly sees poor working conditions and low pay scales in comparison to other career options because of poor or non-existent manpower policies. The industry is expected to give a push to Indian economy with emergence of e-commerce, organised retail and Quick Service

Restaurants (QSR). With more organised approach towards transport and logistics activities due to emergence of global third-party logistics (3PL) players, the demand for trained employees with specific skill sets is expected to further increase,” stresses Chenoy. Observing the same, P Alli Rani, Director–Finance, CONCOR avows, “Quality consciousness has to be instilled via good quality training among the workers who enter this sector. India will lose out in the e-commerce race for quality consciousness if Supply Chain Management is not improved. Hence, education and training through good institutions should be set up in India to complement physical infrastructure that is being created in the country to reap the benefit.” Agreeing with Rani, Captain M M Saggi, Director, Narottam Morajee Institute of Shipping (NMIS) avows, “There is no course available in the country which gives a 360 degree holistic overview of commercial shipping and related logistics.” He adds, “NMIS has presence in – Mumbai Chennai, Kolkata and Delhi. Students in other locations can follow this program through correspondence. Video lectures are provided to all candidates at small cost thus offering them a virtual class room. Study material is also made available online.” Vima la Br itto, Secreta r y & Correspondent St. Britto’s Group of Institutions whines, “Logistics industry is growing at a very fast pace and it needs skilled manpower. Logistics industry has become more professional and it demands education and experience. We offer bachelors and master level programs in Logistics a nd Mu lt i mod a l Supply Ch a i n

feature “We are aware of that logistics industry lacks skilled workers. Therefore, we are counseling and giving full information to students about the present and future upcoming opportunities in this sector."” Samir J Shah, Partner, JBS Group of Companies Estd

List of Colleges offering Courses in Logistics CII Institute of Logistics St. Britto’s College School Of Petroleum Management, Pandit Deendayal BS Academy Pvt Ltd-Center for Logistics, Maritime and Management Studies and Research Asian Business School Universal Business School, Karjat JK Business School, Gurgaon Narottam Morajee Institute of Shipping (NMIS) Management. We are working on preparing fullfledged syllabus also for this course which is still not available in India.” Meanwhile, Samir J Shah, Partner, JBS Group of Companies Estd. also complains, “There are only

a handful of institutes offering such course in India.”

Preparing for the Corporate World When asked about how they prepare students to work in the Logistics Industry, Saggi opines, “All our lecturers are either given by hands-on professionals or domain experts in shipping and related logistics sector. So, there is no gap between what is taught and what is expected by the industry. The course covers virtually all aspects of commercial shipping and includes subjects like shipping practice, shipping environment, geography of sea transport, laws of sea transport, multimodal transpiration, chartering, risk management and insurance, etc. NMIS is registered as a non-profit trust and hence the course fees is very economical i.e. `22,000 to `31,000 for the whole year depending on the nature of course. NMIS was established about 50 years back. About 600 students enrolled with us in the first and second year of our course. This institute is run by shipping and related logistics industry. The government,

especially DG Shipping, also sends its representatives to our governing councils. Shipping and logistics is a sector which is growing rapidly offering great opportunity to our students. Almost all our students find decent placements.” On the other hand, Shah asserts, “We do counseling on regular basis and give full information to students about the present and future opportunity in this sector.” Confederation of Indian Industry (CII) along with the National Skill Development Corporation (NSDC) has set up a Logistics Sector Skill council to address issues related to shortage of skilled manpower through a structured skill development program with the following objectives. • Increase Awareness • Create an Investing Environment • Formulate a Skill Development Solution • To be the authoritative voice on Skill Development Through this initiative, over 40 lakh logistics workers are to being trained and certified by the SSC in the next ten years.

july 2016 - CargoConnect 51

feature

x inde

s c i t s s i s g e o l iven t c a r t t a

52 CargoConnect - july 2016

feature

Earlier struggling and crawling, logistics is now an emerging and increasingly attractive market in India. Sana Husain defines the background of Indian logistics, marking the crucial points that have paved the way of success in the logistics sector in the country

ndia is steadily gaining prominence in the Logistics Attractiveness Index list of countries; with a good blend of FDI policies, investments and great advancements in technology. The growth in this sector is primarily dependent on the growth of goods across different sectors within the country and goods traded with other countries. In a recent Inc42 article dated February 10, 2016, it was published that World Bank ranked India 46th among 155 countries in the logistics performance index ranking. India has a long way to go in terms of achieving global standards, which would include exceptional infrastructure and a highly technology driven as well as seamlessly integrated supply chain. However, India is ranked second in road network, by spanning a total of 4.7 million kilometres. Roads offer a logistics lifeline to the economy, accounting for 60 per cent of total goods movement and 85 per cent of total passenger traffic in the country. According to the National Highways Authority of India (NHAI), national highways make up about 2 per cent of the network but account for 40 per cent of road traffic. The index factors comprise of ranking markets on the basis of attractiveness of their logistics investment and deployment opportunities, based on a number of macro, energy market and technology specific indicators; including logistics imperative, policy stability, as well as routes to market.

New Investments Pumped in Logistics Sector Talking about investments, the falling oil prices have been a major boost to Indiaâ&#x20AC;&#x2122;s public finance, as they helped the government save about USD1.7 billion in subsidy bills. Strong economic growth prospects coupled with the implementation of the unified tax system would increase the fiscal headspace for infrastructure investment. Foreign Direct Investment (FDI) policy of Government of India has introduced key reforms to the FDI policy, to help attract further investments. With the governmentâ&#x20AC;&#x2122;s reform agenda aimed at strengthening business as well as economic conditions, domestic deals are expected to accelerate further; sectors related to e-commerce, internet and mobile technology would continue to remain attractive. As for the outbound flows, Indian firms have invested USD2.28 billion overseas in October 2015, with pharmaceuticals, IT and telecom sectors accounting for a majority of that investment. More than 90 per cent of PPP projects in India are in the road sector. A pentagon of industrial corridors is being envisaged to facilitate manufacturing and to project India as a global manufacturing destination. As investments look good on paper, the government strives to materialise them in the future, as economic growth of a country is directly proportional to the development of its infrastructure. Following that principle, the Indian Government allocates funds to sectors and encourages private participation through the PPP route to push for infrastructure developments. It has announced a National Investment and Infrastructure Fund (NIIF) with an expected initial corpus of USD6.2 billion to bridge the investment gap. Additionally, to make the infrastructure sector investor-friendly and easier to administer, the government, with the help of the Kelkar Committee, is reviewing the overall PPP policy. The government plans to focus on the following five major areas for infrastructure developmentâ&#x20AC;&#x201C;Railways, Roads, Sagarmala Project (for ports and coastal development), Housing for All

july 2016 - CargoConnect 53

feature

India - world’s fastest-growing large economy

1.6 1.5

Euro-zone

1.0 0.6

IMF forecast (%)

Japan

2.2 2.5

U.K. -3.8

-0.6

2016 2015

2.3 2.6

u.s.

Russia 6.3 6.8

China

7.5 7.3

India -3.8 -5.0

-3.8

Brazil 0.0

5.0

10.0

Source: IMF World Economic Outlook, October 2015 and Inland waterways. With the necessary growth, the logistics industry in India will look most attractive in the years to come.

Gover nment E x tends It s Powerful Arm The Indian government is aiming to target higher investments through resource mobilisation, prioritise decongestion of heavy haul routes and speed up trains. Providing better amenities for passengers, ensuring their safety and improving railways’ systems through sustainable measures would also be the focus area. As per the project outlay, the railway ministry has earmarked an investment of USD 133.5 billion toward development of the railways sector over the next five years. Foreign Direct Investment of upto 100 per cent under the automatic route is allowed for support services to road transport, cargo handling, construction and maintenance of roads, bridges, and construction and maintenance of roads and highways that will prove beneficial. The major initiatives taken to upgrade and strengthen highways and expressways are: • The Eastern Peripheral Expressway — a 135kmlong, six-lane expressway with

54 CargoConnect - july 2016

a total project cost of USD750 million that would decongest Delhi traffic. An agreement has been signed regarding the same and the expected project cost (EPC) is — USD3.7 billion. • The Delhi–Meerut Expressway— a a 150km project with a total project cost of USD 1 billion) • Vadodara–Mumbai Expressway— a 473 km expressway with a total project cost of USD 4.3 billion would provide faster access to the economic hubs of Mumbai, Vadodara and Ahmedabad. The value of roadways and bridge infrastructure in India is expected to grow at 17.4 per cent CAGR until 2017, to reach USD10 billion. Roads are deemed to be the arteries of the Indian logistics network. The objective of the investment is to develop new road infrastructure and modernise the existing road network, in addition to developing interstate highways or expressways. In the project outlay, the government has earmarked an investment of USD32.4 billion during the twelfth Five Year Plan (FYP) for the development of roads in the period 2012-17. Not only that, but also, Sagarmala, the coastline development project, aims at trans-

forming the existing ports and creating new ones with world-class technology and infrastructure. This project is also expected to integrate them with industrial clusters and the hinterland through rail, road, inland and coastal waterways. The government is expected to invest USD16 billion for its completion. By focusing on port modernisation, efficient evacuation and coastal economic development, Sagarmala would also complement the Golden Quadrilateral project and would provide sea connectivity to major industrial centres approachable through sea route. When the pros and cons of these investments are weighed to understand its impact on the traditional utility business models, they can be perceived as a good move bringing about overall improvement in the structure. Afterall, the liberalised FDI norms under “Make in India” initiative, which include defence, insurance, railways infrastructure, etc., have resulted in a surge of proposals and investments that the country received in FY2015-16.

The Interesting Growth Curve The timeline shows an interesting growth curve for the logistics industry. Today, India has overtaken Brazil and Indonesia and ranked third in an emerging markets logistics index for 2016, which rates countries based on business environment. The rise can be attributed to the country’s new leadership. Doing substantially well in the past one year, India has come up from position five to three. It is the fastest growing economy and just needs more structural reforms. The clarity in rules, taxes and investments coming into infrastructure have a major role to play in it. India’s economy is expected to grow by 7.3 per cent. The index conducts a survey of over 1,200 global logistics and supply chain executives, who say that the logistics industry has to brace up for more uncertainty and volatility in emerging markets in 2016. Sixty-one per cent of those surveyed said they are unclear on the direction of the world economy and expect more turbulence, stating their top concerns to be China’s economic health, oil prices and the direction of the US economy. The 2016 country rankings are as follows: 1. China 7.91—8.09 2. UAE 7.00—6.63 3. India 6.76—6.66 4. Malaysia 6.66—6.36

feature 5. Saudi Arabia 6.62—6.76 6. Brazil 6.40—6.71 7. Indonesia 6.36—6.70 8. Mexico 6.17—6.30 9. Russia 6.16—6.57 10. Turkey 5.95—6.06 Back in 2007, India Inc. was seen as strongly expanding businesses across the world, but when it came to cross-border transportation of goods, the country was ranked below a number of other major economies such as the US, UK and China. India held the 39th position on the Logistics Performance Index (LPI) that is based on the ability to transport goods reliably and in a cost-effective manner to and from a country. However, the country has found a place higher than as many as 111 nations including Saudi Arabia, Poland, Qatar, Cyprus, Pakistan, Bangladesh and Sri Lanka. In terms of timeliness, India was ranked at the 47th place while China is at the 36th position. On a scale of one to five, India scored 3.07 points on LPI reflecting parameters like customs, infrastructure, international shipments, logistics competence, tracking and tracing of shipments, domestic logistics costs and timeliness. According to the World Bank study, “Connecting to compete: Trade logistics in the global economy” report, countries that top the LPI ranking are typically key players in the logistics industry, while those at the bottom are often trapped in a vicious circle of over-regulation, poor quality services, and under-investment. Among developing countries, logistics over-achievers are also those experiencing economic growth led by manufactured exports. On July 15, 2012, an article stated that India’s ranking slipped to 46th in the 2012 World Bank’s Logistics Performance Index. Five years ago, India was ranked 39. The drop in ranking became a matter of concern for the country, which was expecting a lot of foreign investment across sectors that require an efficient logistics system; whereas China improved its rank from 30 in 2007 to 26 in 2012; Brazil from 61 to 45; and Russia from 99 to 95. A detailed evaluation of the performance by category revealed that India’s ratings on logistics infrastructure, international shipments, logistics quality and competence declined significantly. This indicated that the scale and pace of development of logistics

56 CargoConnect - july 2016

WHY is Logistics in India RANKED ATTRACTIVE?

The sector allows for 100 per cent FDI under the automatic route. This includes: construction, operation and maintenance of suburban corridor projects, high-speed train projects, dedicated freight lines, railway electrification and signalling systems, freight and passenger terminals and Mass Rapid Transit Systems (MRTS).

Japan is expected to sign a MoU to develop 400 stations and assist in zero-accident mission of the Indian Government.

infrastructure had seriously lagged behind the required pace and standards, and that growth in international trade shipments had also been below the expected levels. Severe congestion at major seaports resulting in significant delays in cargo clearance as well as vessel turnaround times were also considered as reasons for slower growth of export-import (EXIM) volumes. Nevertheless, the 2013 Emerging Market Survey, conducted by Transport Intelligence, ranked India as the second most attractive logistics market in the future after China. Still, in 2014, despite a phenomenal rise in the volume of freight traffic movement over the last decade, the country’s logistics infrastructure was lagging behind and continues to be characterised by concerns around costs, profitability, availability of trained manpower and adoption of technology, according to a report by Deloitte and the Indian Chamber of Commerce. India’s rank in the LPI fell from 39 in 2007 to 46 in 2012. The country lagged behind other major markets such as Brazil (41), China (26), US (9) and Germany (4). Based on quality of trade and transport-related infrastructure, one of the six criterions for measuring performance, the rank deteriorated from 47 in 2010 to 56 in 2012. The fall in ranking indicated congestion witnessed on roads and ports, longer dwell times in ports, longer overall transit times and overloading of trucks leading to faster deterioration of road infrastructure. In the 2014 LPI, India secured 54th position out of the total 160 countries covered. In terms of infrastructure quality, it was ranked 58th.

The Big Players Chant the “We can’t stop, we won’t stop” Mantra Project Nilgiri (Wi-Fi services at stations) Indian railways has partnered with Google to set-up Wi-Fi hotspots in 400 stations in its first phase, while the second phase would involve providing Wi-Fi connection on running trains.

Overcoming hurdles at every step, India’s logistics market has grown powerful and attractive by joining hands with technology. Road transport may have emerged as the dominant segment in India’s transportation sector but it faces numerous challenges like the unreliability and unaccountability of logistics trucks, which often do not report on time at the destination, resulting in a cascading effect on the operations. Moreover, there is a severe shortage of trained manpower in our transportation and logistics sector. With no requisite skills to handle the entire supply chain, the industry becomes unorganised with non-standardised operating procedures.

feature With so many prevailing issues, technology plays an imperative role in solving some of these challenges and leveraging its convenience to the driver, the customer, as well as the business owners, thereby helping the sector leapfrog. It has the ability to facilitate delivering global business solutions to local geographies. As we concentrate on the attractive areas of the logistics industry in the country, there are also shortcomings that affect its ranking, such as compensation and incentives, when we come to analyse it. Transportation and logistics companies pay lower wages than companies in many other industries. Nevertheless, transportation and storage salaries are 42 per cent lower than in the best paying industry. According to the PWC “Transportation & Logistics 2030” report data, in the important benefits guaranteed to the workforce in logistics industry in the world, the current status shows that America (better than)>Asia> and Europe, wherein America’s Expense reimbursement is 64per cent, Asia’s Variable cash bonus is 50-per cent and Europe’s Pension plans are at 57 per cent. In the same order of countries, healthcare benefits are 56 per cent, transport allowance is 51per cent and expense reimbursement are 42– per cent respectively. Hence, India has to focus on internal growth, while simultaneously managing the outbound one.

The good news is that

India is rapidly catching up with the rest of the world by executing the latest technology solutions available for the Transportation and Logistics sector through its comprehensible vision, strong planning and technical approach to progress.

The Wide Angle Fortunately, the scope of investments will offer our country a wider window for development. The enormous contribution of USD 655 million by the World Bank for the development of five existing national waterways will facilitate new logistics parks and lead to development of road and rail connectivity around the region. The Sagarmala project aims to involve the widening and deepening of channels to accommodate large vessels. Considering that dredging activities constitute at least five per cent of the port development costs, the sector is expected to add an additional revenue of USD78 million every year. The tourism sector will also flourish with the development of marinas and modern jetties along the coastal tourist circuits, which in turn is expected to increase the scope of tourism activities, such as luxury yachting and holiday cruises. Coastline development will boost ship building and related MRO activities across the country. Foreign partici-

58 CargoConnect - july 2016

pation would play a key role here. Skill development centers such as maritime institutes would benefit from this program, since there will be a greater need for skilled manpower to operate modern infrastructure. Organisations these days have started looking at the transportation and logistics function as crucial rather than considering it as merely business-enabling. While the superior players with abundant financial resources have made investments in this function, the smaller or proprietor-driven firms in India are yet to make considerable investments in technology and talent. Moreover, given the global demand for an ideal delivery, technology enables a smarter logistics function. However, its primary objective is to manage operations with improved efficiency.

Keeping it Tech-Savvy Technology intervention can benefit the logistics and transportation companies in

dramatically improving their productivity, end-to-end visibility, warehouse and yard management, fleet management, escalating their customer account management, relationship and accessibility, assimilating the off-road and on-road movement of their consignments and vehicle, ensuring real-time tracking and tracing, condensing labour, fuel and sales management and increasing the transparency and accountability within their organisation. Advancements in technology are shrinking the world day by day, which is also increasing the customers’ expectations, resulting in companies becoming prone to a more uncertain environment. New technologies are influencing the way the world is communicating and the combination of these new technologies in supply chain management has provided important advances in the methods used by the logistics and transportation companies. The good news is India is rapidly catching up with the rest of the world by executing the latest technology solutions available for the Transportation and Logistics sector through its comprehensible vision, strong planning and technical approach to progress. Progressing by leaps and bounds, India is now considered the world’s fastest-growing large economy. The International Monetary Fund (IMF) has predicted that India would retain the status of fastest growing economy until 2020. The developments in lucrative power projects in the north eastern region are expected to generate cargo movements of about 50 to100 million metric tons over a period of 20 years, where IWT could complement the cargo transportation needs. Yet, to be attractive also means to be responsible in one’s operations. Utilising domestic shipping to one’s full advantage over road and rail transport will help reduce fuel consumption for every ton–km of freight shipped upto 15 per cent, instead of 54 per cent, consumed by road and rail respectively, with comparably less emissions. Also, for bulky consignments, coast-to-coast and inland carriage of goods by shipping costs merely 21 per cent and 42 per cent by road and by rail, respectively. Therefore, once the investments are materialised and when development of railway infrastructure takes place, it would lead to considerable development in logistics. It would allow easy and quick transport of coal to the power market, thus greatly helping in meeting the country’s electricity needs.

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PEOPLE CONNECT

“I would like to see more women in Logistics Industry” Having been associated with the Indian Logistics Industry since last 30 years, has made P Alli Rani, Director–Finance, CONCOR a woman of substance, a woman of power and a woman of positive influence. In a candid conversation with Ritika Arora Bhola, the veteran shares her experience of being in this industry, challenges faced, hobbies and interests and mantra for success. She also has an encouraging message for those who wish to join the Logistics Industry. Excerpts:

60 CargoConnect - july 2016

Journey So Far… Thirty years back, when I had an option to choose a career option in Indian Government, I chose Indian Railways because travel has always fascinated me. I saw it as an opportunity to travel across the country. After joining railways sector, I got to learn about both cargo transportation and passenger transportation. Cargo transportation is much bigger activity in the country for any economy than passengers because it sustains life. So, the role of Indian railways is environment friendly and efficient transportation is something which is very stimulating to participate in. I feel that by contributing to any segment of this sector, I have contributed to the economy.

Any Challenges Faced…

I don’t think in my career so far I had to confront failure anywhere. I have achieved fair amount of success in whatever I have taken up. It’s been a satisfying career and journey. One thing I would like to see is more women in this industry. When we see more number of women in any particular sector, there’s overall improvement in the the standards. I think, women as compared to men, are perfectionists.

Hobbies & Interests

I love trekking. I am fortunate enough to have had the opportunity to trek to Kailash Mansarovar, which is known as the mother of all treks. I am very enthusiastic trekker. I like to travel, play games like badminton, jogging, etc. I like to stay fit and positive.

Mantra for Success Self-Confidence

Beliefs and Values

I would like to continue doing right things boldly. Also, I feel one has to keep oneself updated always. These are some of the beliefs and values I live and work by.

Message for Logistics Aspirants The best part of the Logistics Industry is that it is fast becoming a clean industry. For example, warehouse management sector is now more and more machine dependent and less labour intensive; so, there are more opportunities for women. The industry which is used to be known as male-dominated is now going to change and will have more number of women.

july 2016 - CargoConnect 61

Interview

“With every challenge, there is an opportunity” Hellmann Worldwide Logistics is a global logistics services leader headquartered in Germany. The 140 year-old company has its footprints in 56 countries and six inhabited continents. Since genesis, Hellmann has expanded hugely in India. Shubhendu Das, Managing Director, Hellmann Worldwide Logistics India Pvt Ltd discusses with Joydeep Banik the background and USP of his organisation, and also analyses the emerging opportunities in the market Tell us about the background of generations by enabling new team members your organisation in India and the from around the world to share our values. We take care of our employees from hiring to journey so far. What is the scope of training, mentoring, growing and retaining. your growth at the national level as compared to the global scale? Which are the major industry segA little bit of history….our story began in ments Hellmann caters to? Osnabruck, Germany when Carl Heinrich Hellmann started the company in 1871. Today, the same family, Jost & Klaus Hellmann runs the company which is now more than 140 years old and established in 56 countries with more than 13,000 employees. Hellmann Worldwide Logistics is one of the youngest multinational company in India. We have grown from scratch to INR 6 Billion company with 25 offices in India within 10 years, and presently, we are most successful in the mid-segment. My job now is to accelerate further growth and to be among the ‘Top 5 MNCs in India’ by 2020. It is a target which is achievable both by organic and selective acquisitions.

Hellmann both globally and in India has strong focus towards its clientele on various verticals. Some of our strong verticals are: Automotive Logistics, Healthcare Logistics, Renewable Logistics, Fashion Logistics, Beverage and Perishable Logistics. We have recently set up Competence Centre in Mumbai which will design solutions for customers in Middle East, Africa and South Asia.

warehousing engineering to distribution. Now, the question is...are we ready? The transportation networks and infrastructure associated with warehousing and logistics hubs are expected to have the maximum impact as they need to be aligned, from production to consumption. The current regional warehouses need to expand to accommodate large floor plates and state level transportation has to transform for inter-city delivery capabilities. Land availability, road, railways, inland waterways connectivity, power, transport vehicles and last but not least–skilled workforce would be pre-requisites to success. Currently, we are struggling in capacity and efficiency in all areas, and therefore, the government, industry and logistics service providers have to work together to make GST successful.

With the roll-out of GST, logistics is becoming all the more challenging. What according to you are the chal- The success of your business is lenges that Indian logistics industry your diversity. Justify the claim. is facing at present which needs im- Our understanding about the diversity goes beyond attributes such as gender, nationality Tell us about the USP of your or- mediate attention? ganisation. With every challenge, there is an opportu- ethnic background, religion or ideology, disThe USP of the organisation is our people. If you have right people, they make the right product and create USP for the customers. The core of who we are resides in the fact that we are a family-owned company and we are proud of that. We promote the essence of being a family with the whole company. It also ensures our heritage which endures throughout successive

62 CargoConnect - july 2016

nity. GST has the full potential to accelerate growth in the logistics industry. Today, in most companies the decision to hold inventory and distribution models are based on taxoptimisation over logistics efficiency. This will change as tax will be levied on stock transfers and full credit on inter-state transactions. The entire supply chain model will change from

ability, age, sexual orientation and identity. We create a work environment which provides equal opportunities to everyone and is free of prejudice. We encourage an international work environment and actively support our employees to build global networks in order to increase collaboration with different countries and cultures within Hellmann.

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Interview

BlackBuck is re-creating logistics economy Keeping technology at the core, BlackBuck, a new and significant tech-integrated start-up in the logistics space, helps companies move full truckloads between cities. As of now, it has its presence in around 40 cities, and stitches a large number of livelihoods. Rajesh Yabaji, Co-Founder, BlackBuck in an interview with Joydeep Banik discusses the hurdles faced by the logistics and transportation sector in our country and how dynamic start-ups are making this sector reliable and efficient BlackBuck is re-defining the logistics landscape of India. How do you justify the statement?

best way to disrupt these businesses. This is only the start of investments into this sector, and the best is yet to come.

tor, can we hope to see a more efficient logistics network across the country in the next few years?

Logistics in our country is very fragmented and broken. It also cumulates to a cost of 15 per cent of the income of the country, as compared to 7-10 per cent for developed economies. Keeping technology at the core, BlackBuck is making logistics reliable and efficient. The freight movement by road for the country roughly contributes to 6 per cent of Indiaâ&#x20AC;&#x2122;s GDP. Majority of this portion is intercity transportation. BlackBuck is re-creating logistics economy using technology platforms where buyers and sellers of freight engage seamlessly. BlackBuck now has a pan-India Network, servicing over 150 Customers in 200 locations across the country.

From a 96-point checklist for truck empanelment to transparent auction-based pricing to anytime tracking of freight, how does BlackBuck enable logistics be simple and effective with technology at the core of its operations?

Every effort will definitely help move towards this goal. There is a huge gap in infrastructureâ&#x20AC;&#x201C;Road, Technology, People, etc. which is enabling transformation of logistics. Investing in digitising and building technology to enable overall logistics for the country will be the game-changer.

Funding toward logistics startups showed a huge jump recently. BlackBuck has also recently raised $25 million in a Series-B round of investment. What do you think is the prime reason behind this huge round of investments? Logistics continues to be one of the largest unorganised sectors for the country; opportunities to add value are immense. Hence, this sector draws a lot of attention from the investor fraternity. These industries are very communication intensive. Technology is the

64 CargoConnect - july 2016

BlackBuck has built technology, which integrates both demand and supply onto a single platform. BlackBuck works with customers through tech-integrated platforms, where they can place orders very simply. This is done through technology integrations, portalbased and mobile app. Transporters across the country are empanelled after a rigorous audit on the platform through a mobile application, through which they interact with us. Transporters through the platform have real-time visibility of customerâ&#x20AC;&#x2122;s demand. The entire transaction has been made seamless for the ecosystem using technology. Given the low technology penetration in this industry, the scope for innovation is immense.

With big players like Flipkart, Snapdeal, Warburg Pincus and others showing interest and putting in serious money into this sec-

The nature of the trucking industry is highly fragmented. How does the future of this industry seem like? Logistics industry has a huge scope of becoming more effective, which signals opportunities for many entrepreneurs and multiple investments. For the infrastructure to improve, we need some inorganic pushes for this industry. Although the government continues to focus on building right quality infrastructure for this industry, private logistics players have to contribute to this journey. Imagining a world of seamless logistics and then jointly working with the government to get this implemented is important. As we continue to see this trend on logistics companies making in-roads into various spaces within logistics, more and more consolidation of this space would happen. Logistics is all about optimised networks for transportation and warehousing and scale indeed plays a critical role in bringing optimisation into play.

Interview

“Logistics Industry

is moving from brick-andmortar to digital shopping”

In transport and warehousing, we have to be ready for any kind of challenge,” says Dusshyant Arya, Managing Director, Indo Arya Group. In a candid conversation, he talks to Smiti Suri extensively about his journey in the industry, interests and hobbies, plans and strategies and his take on Indian logistics industry as a whole. Excerpts:

How has your journey been in this How do you foresee market post ‘Make in India’ announcement by industry so far? IIt’s been now sixteen years in this indus- our PM? try. It is the second and third generation working in the company now. So far, there were ups and downs; however, the overall journey has been good and satisfying. In future, a lot of automation will happen and I think we are in very challenging and exciting time right now.

I think it’s a fantastic concept. So far, visible growth has not yet happened but these things do take time and I think in the next three to five years, visible change will come into the market and growth will be driven in ‘Make in India’ of course. We have seen an upward trend in commercial vehicles also.

have lean infrastructure, then it is always easy and you are always in a state of flexibility where you want to move. If you have invested heavily in infrastructure, most of your time and energy goes into bringing business for that infrastructure. So, if you have infrastructure, you can do more business and if you have business, you can bring in infrastructure.

What are the values and beliefs that What are your strategies to meet Logistics Industry is growing at a you live and work by and how do you fast pace and there will be huge de- attain the pinnacle of success? the evolving market needs? We will custom ourselves to market need mand for freight forwarders. Is Indo Ethical means and harmonious growth and will upgrade our team according to Arya Group ready to take the chal- through honest hard work are few of the values and beliefs I live and work by. the demands of customers. The market is lenge? growing from brick-and-mortar to digital shopping; so, we will be growing digital. For example, we have recently introduced a new product- ‘Pay Per Pallet Per Day.’ With this, you can buy space online, book your pallet and pay online. So, that’s the direction we are moving towards and I think slowly we will see people buying freight online. Freight marketplaces are coming forward to enable this approach. Also, there has been lot of announcement of new players in the online freight market vertical. I think online booking for transport and warehousing will also come. Let’s see how the market matures and how things move forward.

In transport and warehousing, we have to be always ready for any kind of challenge whether it is upward or downward trend. Whatever trend is coming up, eventually everybody will grow and sync with it. Transport industry is the spine of the logistics industry; so, we have to flex with the industry weather forward or backward.

Please share your hobbies and interests. I like listening to music and interacting with new people. At times, I play musical instruments like drums and keyboards as well. Time management is a must in our business; so, we need to do that in an effective manner.

Are we using lean infrastructure properly? Is there any need to up- Any message for readers.... With strong will power you can achieve grade it? Infrastructure, whether it be lean or hard has its own plus and minus points. If you

anything. Integrity, Honest and Hard Work are the key to success.

july 2016 - CargoConnect 65

Interview

The Best Thermal Wrap Lures Pharma Having earned the brand value of the most modern and sophisticated manufacturing technology with high speed production facility in the country as of now, Divine Thermal Wrap Pvt Ltd has carved its niche in the world. The directors of Divine Thermal Wrap Pvt Ltd, Rajiv Lal and S K Jaini in an interview with Sana Husain talk about their recent encounter at India Warehousing Show 2016, painting a fair picture of Divine’s product line at the disposal of warehouses

placed their orders with us.

Gauging the climate change scenario in the world and especially in India, how are you able to cope with the drastic fluctuations in temperature? Does it have any significant impact on the manufacturing of thermal wrap in your organisation? Rajiv Lal Apart from an interesting set of product line, ranging from ‘Thermal Wrap Single’ to ‘Thermal Wrap Big’, have you thought about diversification of products or expansion? We, Divine Thermal Wrap, are the world’s first and largest manufacturer in providing a thermal wrap product range of 4 mm, 6mm and 16 mm. Recently, we have launched the 20 mm product in the India Warehousing Show 2016 for the cold storage. It has proved very effective for pharmaceutical companies. Many companies, such as Cipla have

66 CargoConnect - july 2016

This product is meant for the Indian climate only, and is compatible to all four seasons. This product can adapt to temperatures ranging between 90 degrees celsius to as low as -40 degrees. We procure high quality international raw material from Korea and Saudi Arabia, where the weather will have no significant impact on its manufacturing.

Silica Aerogel, invented in the 1930s in NASA’s Glenn Research Center in Cleveland, is considered the lease dense solid, combined with exceptional reflectors of audible sound making excellent barrier materials. It caters to any sector dealing in insulation, offering good scope in bio-medical, textile, defence, etc. However, in India, very few companies are trying to make products out of aerogel. Is it true? Yes. Actually, we adapted this thermal wrap superior technology from Israel in 2004, being the first company ever to invest in this.

In today’s e-commerce age, everyone is going paperless. According to a PTI report, scientists in

S K Jaini Singapore successfully converted paper waste into green cellulose aerogels that are nontoxic, ultralight, flexible, extremely strong and water repellent. How would you use this piece of information to your best advantage possible? Will you try to maximise the paper waste in this manner, than not at all? Certainly, we will look into it and might even maximise the paper waste, if anything interesting comes along the way.

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guest column

Digital Revolution in Logistics By Gunjan Sachdev

challenge often faced by the decision makers’ whether their supply chain management is adept to meet the ever-evolving expectations of the consumer market. Businesses today must make the most of technology to meet the needs while remaining nimble for future market demands. Meanwhile, with the implication of Internet of Things (IoT), businesses are gradually embracing automated back-end processes and demand-oriented solutions for the logistics, warehousing and freight transportation industry, thereby, exponentially reducing lead times and expediting delivery projects even further. A connected enterprise enhances decision-making and increases security and productivity, thus aiding in seamless collaboration by providing the right information at the right time. Panasonic offers efficient solutions for businesses across sectors while taking into account economies of scale.

Mobility Technology Solutions in Supply Chain As industry leaders are present in every regional market globally, supply chain management is crucial for the growth of the overall business imprint. As new economies open up, our demand-driven supply chain is contingent upon reducing lead times and making on-time deliveries across our global routes. Customer demands are a meaningful challenge as well

68 CargoConnect - july 2016

as a driver to gain market share. We have adopted an end-to-end supply chain management system based on data on true demand. Demandoriented solutions have closely integrated our marketing and supply chain initiatives, resulting in improved visibility from factory to retail shelf. With point of sale systems becoming increasingly mobile, mobility technology has emerged as the key interface between supply chain stakeholders, from the manufacturer to the end consumer. Lightweight and portable enough to be carried anywhere, Panasonic Toughbook compact computers help transportation professionals manage all aspects of in-transit cargo, from loading and unloading to storage to location and yard management. With two operational modes–tablet and notebook, every Toughbook model features a removable support strap at the base and a swivel hinge for wide-angle viewing and added transportability.

‘Tough’ Factor From rain mode to its glove-enabled sunlight readable screen, Panasonic Toughpads are supporting logistics service providers with a rugged solution to meet the demands of the environments they work in, ensuring that they don’t lose productivity due to downtime from damaged equipment. With drop-tested magnesium alloy construction and shock-mounted hard drives, resistance to liquids and extreme temperatures, military-grade certified Toughbook computers are rugged enough on the loading dock or in the cargo hold. Advanced mobile features, such as long-lasting, hot-swappable lithium ion batteries for continuous uptime make this gadget the toughest device to complete the toughest jobs.

Challenges, Feasibility and CostEffectiveness of Digital Revolution The main challenges are distance, time and costs. Equipped with noise-reduction loud speakers, the Toughpad can be easily docked in the delivery vehicle to facilitate hands-free communication. One can also navigate routes through its GPS-enabled tracking and directions. Enabled with 4G/LTE broadband connectivity, the integrated wireless antennas offer reliable mobile operation for rapid information delivery, which can be directly communicated from the tablet to the server or cus-

tomer. With an 8MP camera which supports LED flash, the coming-of-age tool is suited to capturing customer complaints and product defects on camera. It also features three configurable hardware buttons which can be customised to the handler’s preference or the field requirements.

People-Process-Technology: The Ideal Mix Through our logistics solutions, our labour management tools are built and implemented to capture data from warehouse management and time systems. We conduct distribution logistics with inventory and warehousing and have implemented a vendor-managed inventory (VMI) solution. The Toughbook allows the logistics managers to make strategic decisions by making job routing more intelligent, improving data management and electronic workflows. With an in-built barcode scanner and RFID capabilities that save time spent on paperwork and manual data input, the Panasonic Toughpad is also equipped with digital signage technology for electronically verified acknowledgement of delivery.

Internet of Things and Digital Revolution in Transportation & Logistics Sector The Internet of Things (IoT) has connected physical devices and GPS-enabled tracking, by allowing us to optimise shipping distances, times and costs. We have also adopted supply chain Business Intelligence (BI) tools to analyse the array of data from logistics technologies and supply chain execution systems. While access to data is the key, being able to find, understand, and use that data to make strategic decisions for improved supply chain effectiveness is also crucial. Data analytics help to identify negative trends in cost and performance and conduct analyses to evaluate the service and cost trade-offs of different transportation strategies and tactics. Panasonic Toughpad FZ X1 solves the purpose with Integrated Process using secure Wi Fi connectivity, real-time scanning operation for inbound and outbound delivery, reduced manual operation, high accuracy and improved tracking of serial number. (The writer is the GM and National Business Head, Toughbook, Panasonic India)

guest column

Emergence of CSCO in Bi-Modal Logistics Era By Raman Kaul

Forwarder, etc.’ There was no sign of CSCO! These managers were expected to control the transportation cost of the products to be delivered, perhaps 3 to 6 per cent of the product cost and saving 20 per cent, which is 0.6 and 1.2 per cent of the product cost.

In the Last Thirty Years..

rimarily, there were two kinds of material movement. One was bulk for process industry and another for input/output of manufacturing unit. Taking up the manufacturing industry’s aspect, we can see that initially, manufacturing and consumption were local. With European industrial uplift, some long distance movement commenced. Perhaps, at this point of time the CEO performed as CSCO.

A Century Ago The movement of input and output of a manufacturing unit turned out to be global. During the global movement, the CEO found the cost of movement comprising a large proportion and in some cases even equivalent to the cost of input. So, the focus of the CEO shifted to cost synergy and there walked in the ‘Transportation Manager, Materials Manager, Freight

It was realised that the cost of movement of cargo can be controlled. But, disruption and inefficiencies of the supply chain would cause greater damage. However what would be the cost of disruption when a manufacturing unit is lying idle for few hours, days or even weeks? Well, then the CEO started thinking about ‘Material Manager, Purchase Manager, etc.’ Still, there was no sign of CSCO! But, this was the beginning of acceptance of contribution and creativity of these managers.

Supply Disruption We at Jayem Logistics, controlled the cost of transportation while working on eliminating supply chain disruption. Thereafter, a new factor emerged. When billion dollars’ worth input or output material of a manufacturing unit is not put to use in right away, the manufacturing is an unviable. Then, there came in JIT and other equivalent concepts. The subject ‘Supply Chain’ turned out to be complex, global in scale and encompassing all functions within a manufacturing unit. Well, this was the time of emergence of Supply Chain Manager (SCM), but still the position of CSCO was far away!

Cost of Inventory We have covered three parameters till now. But, what about the inefficiencies of the movement of material within the manufacturing unit? Production Planning/ Industrial Engineers were given the task. But, their focus was on man/machines’ efficiency and not over the movement of material. Then, the Supply Chain Manager needed to transform himself to understand the manufacturing process. This was the time for CSCO and the beginning of continual dialogue between CEO and CSCO.

Production Line With IT in hand, the supply chain moved to order fulfilment and government compliance with respect to material movement as well. Now, the CSCO is first among its equals, being a constant companion to CEO. Hence, the perception of CEO and CSCO merges. But, when the perception differs, perhaps, the right thing to do is to make CSCO as CEO, which Apple has well implemented.

Thereafter Came the New Animal: E-Commerce E-commerce IT platform headed towards consumption and the conventional distribution model. Overall, e-commerce is primarily B2C, but still holds a small percentage in conventional B2C trade. At its infancy stage, B2B business is yet to emerge. What will be the role of CEO/CSCO in e-Commerce as of now and in the next decade? That is adifferent story altogether. (The writer is the Group General ManagerCorporate Planning, Jayem Logistics)

july 2016 - CargoConnect 69

sUPPLY CHANGE

â&#x20AC;&#x2DC;One Moreâ&#x20AC;&#x2122; Logistics Story Conceptualised from the passion for creating high quality culinary creations, One More Foods Pvt Ltd was established in the year 2015. Within a very short span of time, its flavour has astounded the taste bud of the consumers. Let us know more about their supply chain story. Narrates Yogesh Tayal, Assistant ManagerSupply Chain, One More Foods Pvt Ltd in an interview with Roselin Kiro

3. House of Quality (We have converted voice of customer into technical specifications and have filtered it out further into warehouse improvement points) 4. We have worked on projects related to POS (Point of Sale data) 5. Inventory Valuations Projects completed (ABC Analysis) 6. DOI (Days of Inventory) Calculations and Reductions projects

Please give us brief details of your growth and your accomplishments. How important is the role of logistics for your overall growth? The role of Logistics for our overall growth is tremendous. We have learnt to analyse transportation cost and how to optimise it. The analysis has helped us to calculate which transportation strategy is best. We have also learnt the concept of cross-docking.

Is there any unique/specific strategy that you have adopted in One More for the better supply of the products at the right place at the right time? Our strategies include learning SCOR Metrics and trying to quantify perfect order fulfillment as a prime focus. We have created 3R concept in office (Right Container, Right Quantity and Right Place) which is very fruitful. We have also increased better visualisation through cards having details like product no, aging days, UOM, etc.

There are issues and challenges that every company faces during warehousing process. How do you overcome them? I believe that we can overcome the issues and challenges with continual improvement of SWOT analysis and benchmarking.

What are the steps taken to improve collaboration and in the total supply chain process? Please elaborate Collaboration and consideration can be improved in total supply chain process by: 1. Applying CPFR (Collaborative Planning, Forecasting and Replenishment) Model. 2. Selecting partners based on capability, strategic and value potential. 3. Implementing Extended Planning (ERP) and avoiding working in silos.

Apart from traditional storing services, warehouses now provide additional services such as merging and breaking up of cargo, packaging, classifying, bar coding, reverse logistics, etc What are the value added services that you look forward during the warehousing of your products? 1. Cross docking 2. Wave picking (After Analysing ROI)

How do you manage your warehouse and inventory management systems in terms of creating value for customers?

With the role out of GST, there will be a uniform tax regime and therefore no longer the necessity of having a warehouse in every state. How will this simplify the supply chain process of One More and also in building of warehouses?

We have opted the following strategies: 1. Customer Survey 2. VOC (Voice of Customer)

There has always been a tradeoff between transportation cost and warehouse setup cost. After implementation of GST, we can focus directly on transportation cost.

70 CargoConnect - july 2016

news

Airports, highways to boost India’s success story: Jaitley India’s airports, highways and railways will boost the country’s infrastructure success story, Finance Minister Arun Jaitley said at an event held recently. “We have transformed into a fast growing economy. This will be a turning point for India’s infrastructure,” he said during a Delhi International Airport Ltd (DIAL) felicitation ceremony. “The private partnership model has succeeded. Airports have become more convenience centric,” Jaitley added. Following the PPP model in railways, 400 stations are being planned with private partnership, Jaitley told. He also said that 25 new regional airports will be added and over 10,000 km of highways will be built this year.

India announces easing FDI rules India recently announced radical changes in its foreign direct investment rules to attract overseas investment into its aviation and defence industries. Defence and airline industries can now be 100 perc ent foreign owned, after previous rules allowed 74 per cent and 49 per cent foreign ownership respectively. Investments in pharmaceuticals, food products and single-brand retailing were also liberalised. The prime minister’s office said in announcing the changes that the opening of key sectors of the economy would give an impetus to job creation and infrastructure development. The changes were meant to liberalise and simplify the FDI policy to make it easier to do business in India.

MOU for Kaladan Multimodal Transit Project The Kaladan Multimodal Transit Transport Project (KMTTP) was conceptualised and is being administered by the Ministry of External Affairs (MEA) with a view to facilitate connectivity between the mainland and the North Eastern states of the country through maritime shipping, inland waterways and roads of Myanmar. The link between North Eastern states and Myanmar is believed to pave the way for enhanced trade and commerce across the border and enable cultural and social integration at the regional level.

R-World

Express Pvt. Ltd. International & Domestic Services Our Services : • Priority Services • Premium Services • Economical Services • Special Service (Freight) • Warehousing & Head Office: LG-10, Gyan Deep Complex, Munirka, New Delhi-110067 Corporate Office: 319/2, Badam Singh Market Rangpuri Mahipalpur, N. H. 08 New Delhi-110037 T: +91-11-41211111, 41838081 M: 9871168684, 9891168684 E: info@rworldexpress.com W: www.rworldexpress.com

Export & Import Strong Globe Network Door to Door Services

news

Tariffs only won’t stop undesirable imports: Sitharaman Minister of State for Commerce and Industry, Nirmala Sitharaman recently said that tariffs alone will be unable to stop undesirable imports. “Only tariffs can’t stop imports that we don’t desire,” she said at CII’s National Standards Conclave. Emphasising the need to set standards for every sector of the economy, the minister said that not only are these required to meet global demand, but also for Indian consumers. She added that strong standards and regulatory framework would help domestic industry in becoming competitive in the world as well as in the domestic market. Her statement comes in the backdrop of a large number of trade agreements being negotiated among large number of countries leading to a reduction of average global tariff rates along with an increased usage of technical regulations globally.

Nepal to route EXIM cargo through Visakhapatnam Port The Centre has declared Visakhapatnam Port as the second gateway port for export-import cargo of Nepal besides Kolkata/Haldia, according to a press release issued by the Visakhapatnam Port Trust (VPT). Recently, India and Nepal have finalised the agreement. Export-import cargo will be transported from Jogbani or Birgunz in Nepal by rail or through four road routes. The cargo will be in sealed containers and in full rake only.A team headed by Dr Somlal Subedi, Chief Secretary of Nepal, will be visiting Visakhapatnam Port for two days later this week to study the facilities available at the Visakhapatnam Port and to interact with the stakeholders. MT Krishnababu, Chairman, VPT said it was a historic move which would boost trade relations between the two countries and also help the Visakhapatnam Port and Nepal. “Vizag will be the ideal gateway port for export-import cargo from Nepal,” he added.

72 CargoConnect - july 2016

GreyOrange plans expansion to Middle East GreyOrange, a multinational robotics firm that designs, manufactures and deploys advanced robotics systems for automation at distribution and fulfillment centers, ewcently announced its plan to expand into the Middle East market. The company will cater to the fast growing retail, consumer goods and e-commerce sectors with its state-of-the-art warehouse automation solutions for inventory management, order profiling, and sorting. GreyOrange’s entry into the Middle East will mark yet another milestone in the company’s strategic foray into new geographies which began last year with the company expanding into Hong Kong, followed by Japan and most recently the foray into China market.

AAI conferred award for Environment Protection Airports Authority of India’s Chandigarh Airport was recently conferred with two prestigious SKOCH BSE Awards for Environment Management (Green Technology) in two categories of ‘Top Hundred Projects of India’ and ‘Top Thirty Projects of India’ at a glittering award ceremony organised by SKOCH Group and Bombay Stock Exchange in Mumbai. On behalf of AAI, K Hemalatha, Regional Executive Director (Western Region), Engg. Harish Kumar Pandey and Engg. Nilesh Kumar of Chandigarh Airport Project received the awards.

Govt plans incentive to shift cargo to water To encourage shippers to shift cargo to waterways and coastal shipping, the government plans to provide an incentive of Re one per km for a tonne of cargo.The incentive is planned at `one per ton per km which will come out to about “`290 crore for 2.5 years,” a senior government official said. Initially, the government plans including nine commodities that include foodgrain, automobile, cement and marble.Sources said a note on the incentive scheme would soon be sent to the Union Cabinet for its nod.Under the ambitious Sagarmala project, the government has already announced that increasing the water transport share could result in an annual saving of `30,000 to `40,000 crore. Alok Srivastava, Additional Shipping Secretary said the government is working hard to shift the cargo to waterways as not only it is the most environment-friendly mode of transportation but also economises the cost.

A handbook on Rail Freight packed with information, data, trends, projections, views/ articles by senior industry professionals, columns by leading research companies in an easy format. Hand bound, aesthetically designed with superior publishing quality.

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Mumbai Port cuts wharfage charges

Indo-Russia freight train in pipeline

In order to encourage domestic coastal movement of cargo, and especially automobiles via RoRo ships from Mumbai, the Mumbai Port Trust (MPT) on Monday announced reducing wharfage charges by about 60 per cent and further reduction of 10 per cent in shipping charges. This will help in bringing down the cost of cars/truck which may be passed on to the end consumers by the companies. The move is expected to encourage movement of domestic cars/ trucks from manufacturing clusters such as Chennai to Mumbai, Pune, Nashik to southern and eastern parts of India. “This will also reduce congestion on roads and would be not only a cheaper but also environmentally preferred option as it reduces carbon footprint. This would also facilitate faster movement of vehicles meant for distribution and export,” read a statement released by Ministry of Shipping.

The first cargo train from India to Russia passing across the territory of Azerbaijan is scheduled to be launched in late August 2016 as part of the North-South Project, told Javid Gurbanov, Chairman, Azerbaijan Railways. Gurbanov noted that the freight train which will take off from India’s Mumbai will be transported by ferry to the Iranian port of Bandar Abbas in late August and then head to Iran’s Rasht city by rail. The goods will be transshipped to trucks in Rasht city and delivered to Azerbaijan’s Astara city, said Gurbanov, further adding that then the cargo will be delivered to Moscow by railway from Astara city. This multimodal transportation will be carried out together with the railways of Azerbaijan and Russia, he emphasised. Previously, the agreement on the North-South International Transport Corridor was signed among Russia, Iran and India in St. Petersburg in the year 2000. Azerbaijan joined the agreement in September 2005. The Transport Corridor will link Northern Europe and South-East Asia and serve as a bridge to connect the railways of Iran, Azerbaijan and Russia. The corridor is planned to transport 5 million tons of cargo a year in the first phase and over 10 million tons of cargo in the future.

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After Chabar, India eyes ports in Bangladesh

DB Schenker Asia’s Best Rail Freight LSP

Shipping minister Nitin Gadkari recently said that work on a road-cum-rail bridge between the mainland and Sagar Island will start by this year end. This bridge, which is to be built by the National Highways and Infrastructure Development Corporation Ltd (NHIDCL), is a precursor to development of a port facility on the island. While the draft of the port on Sagar won’t exceed 14.5 meters, it will facilitate cargo movement to and from Bangladesh. The initial expenditure for the bridge to Sagar and a jetty has been pegged at nearly `4,000 crore. Gadkari sounded upbeat with the deal clinched recently with Iran for development of the Chabahar port.

DB Schenker has been recently honoured as ‘Best Rail Freight Service Provider in Asia.’ The prestigious prize was presented at this year’s Asian Freight, Logistics and Supply Chain Awards (AFLAS) held in Shanghai recently. After having been awarded with the AFLAS in all major logistics related categories in the past including Best Logistics Service Provider Sea Freight and Air Freight as well as Best Road Hauler, DB Schenker now received the distinction also in the newly added category of Best Rail Freight Service Provider. DB Schenker has been a pioneer in the development of multiple railway transportation services linking China to Europe, Central Asia, Russia and Mongolia since 2011. “We are able to combine our rail doorto-door transportation solutions with other transport modes including air, road and ocean freight, and also offer complementary services such as customs consultation, load planning, consolidation, setc, if required,” says Daniel Wieland, Senior Vice President, Multimodal Solutions, DB Schenker.

news

Panasonic introduces Toughbook CF-20

Patel Logistics teams up with Nationwide Group for JV

Panasonic, the worldwide leader of diverse electronics, technologies and solutions recently launched the world’s first fully rugged detachable notebook-Toughbook CF-20 in India. The Toughbook CF-20 is purpose-built for challenging environments, including field services, utilities, oil and gas, transportation and logistics, healthcare, insurance, public safety and defense. Equipped with Windows 10 Pro or Windows 7 Professional, CF-20 is the first Toughbook to be powered by 6th Generation Intel○RCoreTMvProTM processor technology, 128GB SSD and 8GB RAM. Additionally, it sports a glove enabled touchscreen, and purpose-built Vehicle Mount and Desktop Port Replicator, armed to meet all mobile computing needs at extreme conditions. Commenting on the launch, KenseiIsaki, Manager, Asia Pacific & India Sales Section, Overseas Sales Department, IT Products Business Division (ITPBD), AVC Networks Company, said, “Panasonic Toughbook have been designed to meet the evolving business needs of the enterprises. While enterprises continue to diversify, the need of the hour is mobile computing. Mobility particularly at mission-critical situations give an edge to businesses.” GunjanSachdev, National Business Head –Toughbook, Panasonic India, further added, “Toughbook CF-20 is a validation of our proud legacy. The device comes as an ideal product for a host of usage scenarios in the industry.

In a pioneering Indo-Saudi joint venture after the recent visit by Prime Minister Narendra Modi, Patel Integrated Logistics Ltd has teamed up with Saudi Arabia’s renowned Nationwide Group to develop and form Pivot Logistics. The joint venture, harnessing the synergies of two leading groups with legacy and experience, has been floated to tap the emerging opportunities in the largely fragmented logistics sector of GCC and at the same time to add new dimension to the ecosystem. Under the Memorandum of Understanding, PIL will share its know-how, manpower and technology to set up and manage the end-to-end operations of the venture.

CH Robinson named Best LSP in Air Freight CH Robinson, a global leader in third party logistics (3PL), was named the Best Logistics Service Provider for Air Freight at the 2016 Asia Freight, Logistics and Supply Chain (AFLAS) Awards. The company has been serving customers in Asia for more than 20 years and, as underscored by this award, is a leading global 3PL. “We are proud to receive the AFLAS Award for best logistics service provider in air freight,” said Jack Chang, Vice President, Asia Global Forwarding, C.H. Robinson.

78 CargoConnect - july 2016

Dachser expands Kolkata operations Dachser India has expanded its office in Kolkata to meet the growing demand for services in the East India market. The leading global logistics services provider has had a presence for more than 30 years in West Bengal. The new office is located at the Salt Lake City development which is the new IT hub for the city and is close to both Kolkata and Haldia ports and Netaji Subhas Chandra Bose International Airport (NSCBIA). “I am very confident of further growth in West Bengal and we already see a consistent increase in our business over the last three years. The economy in West Bengal is reviving and we are looking forward to a stronger growth of our business,” said Huned Gandhi, Managing Director Air & Sea Logistics India. Dachser now has 25 offices across the subcontinent with one of the largest countrywide logistics networks of any international company. The Kolkata office provides air and sea import and export services, customs clearance and cross-border shipments to and from Bhutan, Nepal and Bangladesh.

MIA and Brussels Airport alliance for pharma hub MIA and Brussels Airport recently launched an alliance for the development of a global pharma hub. The goal of the alliance is to be a collaborative group of IATA-certified airports that will grow the pharma air transport industry by sharing market knowledge and expertise, supporting implementation of best practices, exploring the development of new infrastructure and equipment for handling pharma products, and fostering joint route development focusing on pharma routes and certified routes. “In the past three to four years, we have been working very closely with the pharma manufacturers, which has resulted in the IATA CEIV Program we organised at Brussels,” said Steven Polmans, Head of Cargo Sales and Marketing, Brussels Airport. He added,“We now want to continue strengthening our approach by bringing it to a global level and create endto-end solutions for the pharma industry. ”

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Start-ups

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E-commerce Boom Surges Warehouse Space Demand Dock Levelers Warehousing Rolls Up Sleeves for GST

APPOINTMENTs

GEODIS India gets new Regional Director GEODIS India recently appointed Sushma Fulsunge as Regional Director - Western Region. Prior to joining GEODIS, Sushma has held several positions at MNCs in India. She has more than 20 years of diversified experience in the industry and comes with an in-depth knowledge of the local market. As Regional Director, her priorities will include the implementation of an extended business development plan as well as the reinforcement of GEODIS’ operational excellence and a swift customer support. “We are delighted to welcome Sushma Fulsunge,” says Leif Voelcker, Cluster Managing Director South Asia, GEODIS, and adds, “I am confident that Sushma’s leadership and proven track record will help us in expanding our footprint and strengthening our positioning in India’s Western region.” GEODIS has been present in India since 1998, operating from 14 locations in the country and offering integrated logistics solutions covering freight services, warehousing management and local distribution. In the country’s western region, GEODIS runs offices in Mumbai, Pune, Ahmedabad and Baroda. As part of its market positioning, GEODIS provides air and ocean freight services, free trade warehousing zone, industry-specific vertical market solutions and industrial project cargo management.

WWL appoints new India Head Wallenius Wilhelmsen Logistics, a global shipping and logistics company, recently announced the appointment of Capt. Pankaj Dogra as the new Managing Director of WWL India. He replaces Capt. Gur Prasad Kohli, who will be moving to Thailand as the Head of South Asia with effect from July 1, 2016. Dogra joined WWL in 2011 as General Manager-Business Development, and was responsible for creating and executing the sales objectives for the ocean and land-based services in India. He later moved to the company’s head office in Norway as Commercial Manager, where he supported the global commercial teams in the development of key accounts across all cargo segments. Pankaj returned to India in the beginning of 2016, and took on the role of Commercial Head for India. He is a master mariner with 14 years seagoing experience, and brings extensive experience from previous operational and commercial roles since stepping ashore in 2004.

80 CargoConnect - july 2016

IATA announces leadership changes The International Air Transport Association (IATA) recently announced leadership changes at the conclusion of the Association’s 72nd Annual General Meeting (AGM) in Dublin, Ireland. • Willie Walsh, CEO, International Airlines Group (IAG) succeeds Andres Conesa, CEO of Aeromexico, as Chairman of the IATA Board of Governors (BoG). Walsh, who represents British Airways (BA) on the IATA BoG, takes up his duties immediately for a one-year term. • Alexandre de Juniac, Chairman and CEO, Air France-KLM, was confirmed to succeed Tony Tyler as IATA’s Director General and CEO. His appointment is effective from 1 September 2016. The 72nd AGM also approved the Nominating Committee’s other recommended appointments to the current BoG.

Lawson appointed DHL’s boss for India DHL Global Forwarding recently appointed George Lawson as Chief Executive and Country Manager for India. Relocated from Bonn, Germany, Lawson is now based in Mumbai. Lawson joined DHL in 1992 and has worked in a number of leadership positions across different disciplines in Asia and Europe. In his new role as a member of the Asia Pacific Management Board, Lawson reports to Kelvin Leung, Chief Executive, DHL Global Forwarding Asia Pacific. “Leung said, “George has successfully executed global strategies to drive growth and has a deep understanding of our business through the last two decades.”

Cargowings appoints new CEO V Ramaswamy recently joined as the CEO of Cargowings Logistics Limited. Ramaswamy carries 34 years of leadership experience in Quality Assurance, Knowledge Management and Logistics and was associated with MRF Tyres and TVS Logistics Services Limited before joining Cargowings.

events

BACC organises Cricket Tournament 2016 Bangalore Air Cargo Club (BACC) recently organised a cricket tournament for the cargo industry persons in Bangalore. The event was sponsored by AISATS Coolport. Mr. Rex, President, BACC handed over the championâ&#x20AC;&#x2122;s trophy to M/s DB Schenker India Pvt Ltd and runnerâ&#x20AC;&#x2122;s trophy to Capricorn Logistics Pvt Ltd, Sovika Aviation, Dhanyata Cargo Movers, Scanwell Logistics, Pride Global Logistics, Svarna Logistics India Pvt Ltd and SV Cargo Movers were the sponsors for the event.

july 2016 - CargoConnect 81

events

IWS 2016 : A Platform for Excellence The sixth edition of the India Warehousing Show (IWS) 2016, an annual meeting place for warehousing, material handling and supply chain industry was held from July 8-10 at Pragati Maidan, New Delhi. The three day program was a combination of exhibition, conference and workshops. A huge number of participants marked their presence which included trade visitors, exhibitors, hosted buyers, and conference delegates from across the globe. Alike every year, this year too proved to be a success for the IWS.

82 CargoConnect - july 2016

events

AAI, NSDC, NSDF sign MoU A tripartite Memorandum of Understanding (MoU) was signed amongst Airports Authority of India, National Skill Development Fund (NSDF) and National Skill Development Corporation (NSDC) recently in New Delhi in the presence of P Ashok Gajapati Raju, Hon’ble Minister of Civil Aviation, Rajiv Pratap Rudy, Hon’ble Minister of State for Skill Development and Entrepreneurship (IC), Rajiv Nayan Choubey, Secretary, MOCA and officers from MSDE, and various other stakeholders. The MoU aims to impart for skill training to the youth which will meet the requirement of skilled force in various sectors.

Frost & Sullivan

Sustainablity Awards

Frost & Sullivan recently concluded the seventh edition of its India Sustainability Summit and the Sustainability 4.0 Awards at the Hyatt Regency, Mumbai. Known earlier as Green Manufacturing Excellence Awards (GMEA), this program was a showcase of the best practices and initiatives adopted by Indian enterprises to incorporate sustainability in their entire value chain. The summit was a remarkable journey about the sustainable practices and their significance across various industries, concluding finally with the awards banquet, recognising India’s most sustainable enterprises.

Maini’s warehousing solutions at IWS

Maini Group recently participated at the sixth edition of India Warehousing Show and showcased comprehensive warehousing and material handling solutions at the show. This included display of various racking and storage solutions for warehouses (pallet racking, mezzanine, shelving) to optimise storage space. 1 Ton battery operated pallet truck, suitable for narrow aisle warehouses and 1.5 ton Yale Maini electric forklift were also on display. Maini Materials Movement also introduced Goods Lift in their stall Rahul Sagar, AGM-Marketing, Maini group commented, “The show helped us to strengthen Maini’s position as comprehensive warehousing solution provider. We received enthusiastic response from all the business visitors for our solutions..”

events

India Logistics Expo 2016 held The premier edition of India Logistics Expo 2016 was held recently at Bombay Exhibition Centre, Goregaon(E), Mumbai. With over 75 exhibitors from across the logistics sector, the exposition was attended by 2,865 visitors from various enduser industries including the ever-growing e-commerce channels. Two world-class conferences, India Supply Chain Summit and India Multimodal Logistics Summit were co-located with the exhibition were attended by 200 participants and addressed by eminent speakers. The conferences saw in-depth discussions on topics like Algorithmic Supply Chains, Bimodal Logistics, Adaptive Responsive Networks, etc., which were of great interest to the industry.

Nestle awarded ‘Best FMCG Co. in Warehousing’ Nestle India Limited recently received ‘Best FMCG Company in Logistics & Warehousing Award’ at the National Logistics Summit India 2016, Hotel Le Meridian, New Delhi. Ashish Pande, Head of Supply Chain & Anurag Dwived, Head of Distribution received the award from Hon’ble Sh. Ram Kripal Yadav, Minister of State, Ministry of Drinking Water & Sanitation.

84 CargoConnect - july 2016

IFCBA World Conference 2016 Four hundred customs brokers from twenty-one countries met at the IFCBA (International Federation of Customs Brokers Associations) 2016 World Conference in Shanghai, China. The theme of ‘Facilitating Trade Through the Customs-Business Connection’ was reflected in speeches, presentations and dialogue on a variety of subjects of relevance to delegates from developed and emerging economies. Special guests included Lu Peijun, Vice Minister and Deputy Director of the Board of China Customs, and Sergio Mujica, Deputy Secretary General of the World Customs Organization

events

Agility Wins BMW Gold Award

AAI & ASI MoU

Agility recently won BMW’s prestigious Gold Award for excellence in warehousing and distribution for their work. The award, presented at the annual BMW Excellence in Parts Logistics Awards in Munich, Germany, marks the fourth time BMW has recognised Agility India in recent years. BMW presented Agility India with Gold and Silver awards in 2011, 2012 and 2014. Yogendra Bellani, Agility India’s Vice President for Domestic Logistics, along with Subramanyam Nanubala, Senior Manager, Parts Logistics, BMW Group India, received the award from Niklas Wagner, Senior Vice President, Aftersales Business Management BMW Group and Wolfgang Baumann, Director, Parts Logistics Management BMW Group.

A MoU was signed by Airports Authority of India (AAI) with Aviation Strategies International (ASI) who are the designated program administrators for the Global Airport Council International (ACI) – International Civil Aviation Organisation (ICAO), Airport Management Professional Accreditation Programme (AMPAP) for capacity building initiatives and other professional areas related to training technology. Speaking on the occasion Anuj Aggarwal, Member (HR), AAI said, “The collaboration with ASI would be in the area of capacity building interventions, training of AAI academics and professionals, especially in the areas of training and learning methodologies, research and policy analysis, research collaboration on emerging aviation themes, development of innovative learning platforms and education programmes with emphasis on e-learning and technical assistance in the form of facilitating opportunities for strengthening AAI’s capacity in terms of providing learning services.”

for capacity building

ACCD Annual General Meeting On May 27, Air Cargo Club of Delhi held its Annual General Meeting at Hotel Radisson, New Delhi. The gathering was addressed by past president of the club Yashpal Sharma who welcomed the newly elected president, Ravinder Katyal. The managing committee bid farewell to the past president and welcomed the new president. The house made active discussion on tasks executed by MC in last year and put forward some valuable suggestions for coming year. Members and past presidents appreciated the work done by entire MC and also complimented newsletters and social media coverage by the sub-branding committee. The current MC was re-elected for coming year and ensured a more promising and fruitful year ahead.

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PEOPLE CONNECT

Calling Success at Her Doorstep... Clinching the Young Entrepreneur of the Year 2016 India Maritime Award, Kruti Jobanputra, Director, JWC Logistics Park Pvt Ltd has come a long way in the logistics segment. In an interview with Sana Husain, she talks about her experiences in the dynamic industry, predominantly governed by men.

What motivated you to be a part of the logistics industry and how has your experience been so far? My inspiration and my biggest motivator is my father, Lalit Jobanputra, who has been a mentor, a guide, a friend and a teacher to me. He has been a part of this logistics industry for more than four decades. He always tells me: • “Keep pushing, Keep hoping, keep trying and success will always come to you” • “Failure is the first step to success, so never get disheartened with failure” My experience in the Logistics Industry has been very different one; “It’s a Man’s world” was the first line I had heard after coming to this industry. I joined the company as a trainee working with all “Men” around me. Here, I got to learn about this magnificent industry, the different culture, about the business and over the time, I took interest and worked in all departments like Operations, Admin, HR, Finance etc. Today, after having a little experience of more than seven years, I am still learning new things and enjoying new experiences everyday.

What was the biggest challenge that you have faced till date? Biggest challenge is the old school of thought

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and the type of mentality the people have. The old system that the government follows is the biggest hindrance to the growth of the country.

How has the industry changed from the time you stepped in? What major transformations have you observed in the industry in terms of technology, manpower, practices, government regulations, etc? Logistics Industry is a system, which is a very fast moving industry. The Logistics Industry is the backbone of any industry in the world; from day to day perishables, fast moving customer goods to luxury branded things, all require logistics. So, with every other industry growing, transforming, changing; the Logistics Industry has to change, has to invent, has to discover and has to adapt change.

Where do you see the graph of the logistics industry moving in the coming decade? As I said, logistics industry is one of the OLDEST industry and will always remain as one of the main industries and will only grow in times to come.

What specific beliefs or value that you live and work by and how do

you define success? a) Dreaming is Wonderful, Goal Setting is crucial but Action is Supreme. B) Courage is doing what you are afraid to do. Courage is not the absence of fear, but rather the judgment that something else is more important than fear.

Apart from work what are your other interests? Our family has always believed in giving back to the society and therefore as a part of our social responsibility, we take care of 40 senior citizens at “Anand Ashram” (our old age home) and we have also built Lord Ram Temple, at the holy place of Vejreshwari (Near Mumbai) at the banks of Natural Hot Springs. And I spend the rest of the time with family and friends.

Any message for those who aspire to work in the logistics industry. Logistic Industry is the base on which any country’s National GDP depends on. This industry does require more understanding, more dedication, more resources and more hard work from the government and from the people.

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