Warehousing industry in India - cargo talk

Cargotalk
Vol XI No. 10
Pages 60
Rupees 50
cargotalk.in
A DDP Publication
SEPTEMBER 2011
SOUTH ASIA’S LEADING CARGO MONTHLY
No.1 in Circulation & Readership
FFFAI
Convention
Special Issue
Warehousing
industry in India
industry seeks recognition and friendly policy

DEPARTMENTS
4 CARGOTALK SEPTEMBER 2011
Airlines News
Emirates SkyCargo
presents Best Performance
Award to its India team
Air Logistics Group:
Committed to expansion
plans in India
National News
‘Indian Logistics 2011’
emphasises on uses of IT
Trade Associations
FFFAI Biennial
Convention 2011: Aim is to
go beyond CHA business
Product Display
Bolzoni Auramo Lift
Tables from
Gandhi Automations
Honeywell introduces
Dolphin 6000 in India: the
mobile scanning technologies
to tap logistics industry
Exclusive Interview
India to witness surge in
Logistics Parks: WDRA
plays the advocacy role
Cargo Performance
Airline wise exim cargo
performance from
Delhi Airport for July 2011
Airline wise exim cargo
performance from
Mumbai Airport for July 2011
International News
Humanitarian aid flown to
Horn of Africa by Chapman
8
16
10
12
20
30
28
34
35
36
contents
September 2011
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COVER STORY
Lufthansa Cargo’s flight
against famine
Richard Theknath elected
as president , ACCB
American Airlines
organises educational
trips to Chicago
Warehousing and Logistics Parks: Industry
seeks recognition and friendly policy
With the advent of foreign manufacturing, retail and 3PL
companies a world standard warehousing with all modern
amenities are on the rise. Add to this the ensuing GST
regime has also necessitates organised and consolidated
warehousing system under scientific logistics parks. An
industry perspective on the requirements to utilise the
opportunities
6 CARGOTALK SEPTEMBER 2011
COLUMN
36
Express Cargo
DHL and Blue Dart introduce 42
Smart Truck technology
Shipping News
DP World’s ICTT in Cochin receives 50
largest container vessel
Family Album
Air Cargo Club of Delhi gets 52
new managing committee
54
56
International News
AAI develops Air Cargo Complex 38
at Amritsar Airport
Young & Emerging
Vineet Kanaujia: Giving a new 44
dimension to marketing for supply
chain and logistics industry
Guest Column
Warehouse Management: A quest 48
for the effective way
Study & Survey
Indian companies increases import 58
from Europe to offset losses
22
contents
September 2011
Opinion
A long way to
logistics parks
According to a recent study released by Amarthi
Consulting and CII Institute of Logistics, by 2012
around 110 logistics parks, spread over approximately
3,500 acres, are expected to come up across India at an
estimated cost of US$ 1 billion. The logistics sector has
been growing at a rate of 8 to 10 per cent per annum since
2002 and was over $100 billion in 2009-10. Warehousing
activities account for about 20 per cent of the total Indian
logistics industry. This market segment is estimated to
grow from US$ 20 billion in 2007-08 to about US$ 55
billion by 2010-11.
Optimism runs high thanks to the growing economy
of India and some recent initiative of the Government
of India. The government has been giving impetus
to the logistics sector by allowing 100 per cent FDI,
eliminating CST, introducing VAT, improving multimodal
transportation through projects such as dedicated
freight corridor, etc.
Challenges, however, remain. Modern warehousing and
logistics parks are still in their nascent stage in India. On
the other hand, the perception about a logistics park in
India has reduced to an extended version of warehousing.
The logistics companies have a long way to go to fulfill the
basic requirements for a world standard logistics park.
They will have to present quality products so that the
customers are encouraged to outsource logistics services
to 3PLs. Add to this, the government has to take firm
steps to facilitate the industry. Fast implementation of
GST, rationalisation of tax regime, adoption of a liberal
land acquisition policy, enhancement of multimodal
connectivity, and above all, providing logistics sector
industry would be the prerequisite behind the success of
logistics parks projects.
Rupali Narasimhan
Editor
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Airlines News
News in Brief
Emirates SkyCargo presents
BEST PERFORMANCE AWARD to its India team
Duncan Watson (Extreme left), regional manager-commercial cargo, Middle East Asia & Africa, Emirates Airline; Ravishanker Mirle (4th from left), regional manager commercial
cargo-W. Asia & Pacific Rim; Ram Menen (7th from left), divisional senior vice president, Emirates SkyCargo; Keki Patel (7th from right), cargo manager–India & Nepal and Robert
Siegel (second from right), regional manager commercial cargo-Europe & Americas along with the entire Emirates SkyCargo India Team after receiving the award.
Emirates SkyCargo recently awarded their India team, Emirates
SkyCargo India, with the Best Performers Worldwide Award for
the financial year 2010-11 amongst all their teams worldwide. The
team was felicitated in a brief ceremony held in Al Bustan Rotana
Hotel, Dubai.
According to the company sources, the India team of Emirates
SkyCargo was awarded for their outstanding work in aggressively
promoting and educating the trade about e-freight in the country.
8 CARGOTALK SEPTEMBER 2011
In 2010, they carried out successful e-freight shipments from all
the major cities in India. They also started offering interline capacity
of 3 tonne from Lucknow. The team had also been putting
continuous efforts to consolidate their agents’ network throughout
the country. The sources also emphasised that they became best
performers worldwide commercially and operationally overtaking
stations like Hong Kong, Shanghai and Germany which have far
more cargo opportunities as compared to India.
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National News
Industry Events
‘INDIAN LOGISTICS 2011’ EMPHASISES ON USES OF IT
Amitabh Panda
The recently held Indian Logistics 2011 conference in New Delhi
stressed upon the need of better infrastructure and use of information
technology for a productive supply chain management. The one-day
conference was organized by ‘mjunction’, which offers a wide range of
eSelling, eSourcing, eFinance and knowledge services across diverse
industry verticals. The conference highlighted the fact that logistics
industry in India is recording a staggering revenue of about $82.10
billion with a growth of about 9.2 per cents in the last fiscal year (2010-
11). However, detrimental factors like inefficient infrastructure, high
distribution costs, and various supply chain intermediaries are affecting
10 CARGOTALK SEPTEMBER 2011
an annual loss of $ 45 billion to the logistics industry in India. During the
conference a report was released by mjunctionEdge – the knowledge
division of mjunction services on the logistics industry in India.
According to the study, the total logistics market size in India represents
around 6.2 per cent of the country’s total GDP. But there are losses in
billions due to poor infrastructure and inept supply chain management
solutions as reflected in more than 1,300,000 tonne of food grains
rotting in storage, in the last decade, due to lack of modern warehouses.
Adding to the wastage is 4-5 intermediaries in the supply chain and high
distribution costs, to the extent of 40 per cent of price of some items.
Amitabh Panda, group director, shipping and logistics operations, Tata
Steel Group and MD Tata Steel Logistics and Shipping said, “Today
information technology plays a huge role across sectors and logistics
management lies in the same purview. But Indian logistics industry
is lagging behind in this aspect due to numerous issues and hence we
have tried to address these concerns today through this platform with
an objective to boost the growth of the logistics industry in India.”
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Trade Associations
Convention
FFFAI Biennial
Convention 2011
Aim is to go beyond CHA business
Freight forwarders in India
are passing through critical
juncture, especially the
Customs House Agents,
who are mainly medium
and small sized. “The theme of the 20th
Convention—CHA-Beyond Customs,
Emergent Global Logistician, has rightly
been chosen, so that our Customs House
Agent members can be enlightened and get
prepared for the future challenges.
Now is the time for each one to consolidate,
innovate and expand his or her horizon for
individual as well as collective benefit,”
said Sud. According to Sud, FFFAI
perceives that globalisation is fast changing
12 CARGOTALK SEPTEMBER 2011
The Federation of Freight Forwarders Associations in
India (FFFAI) is organising its 20th Biennial Annual
Convention at a crucial time when the freight
forwarding business in India is struggling for its
survival. With a dwindling commission system, and
the advent of MNCs to offer all logistics services
under one roof, the traditional CHAs are in quandary.
The Convention will be held from August 25-27, at
Shiv Niwas Palace and Fateh Prakash Palace hotels
in Udaipur. Raman Raj Sud, chairman, FFFAI speaks
on importance of the Convention this year. Ratan Kr Paul
to glocalisation, i.e. global corporations
are forced to accept local thinking,
culture and practices. Those who have
been able to adapt and adopt are seeing
success and would continue to flourish.
FFFAI also emphasises on cooperation
and collaboration among the Indian
freight forwarders. They should learn
different strategies; adopt different models
An interesting thing to note, that all
members associations have collectively come Raman Raj Sud
together to make this convention a grand
success. FFFAI, in more ways than one, stands for and represents
the “unity in diversity” ideology, which is India.
of execution; update and upgrade
their skill sets—above all reinvent
themselves to survive the turbulent
uncontrolled dynamism.
It is evident from the facts that there
is a growing trend of outsourcing of
complete logistics solutions among the
customers. They are now not satisfied with
fragmented logistics solutions. The need
for outsourcing or working with specialised
service providers is ever increasing.
“The need for good, competent,
resourceful, easily accessible, local
service providers are increasing and
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Trade Associations
Convention
becoming absolutely necessary. Ability
to understand legal issues, interpret the
same, realign work in tune with local as
well as international operations are the
qualities industry looks out for in these
service providers,” Sud pointed out.
The business sessions of the Convention
will discuss the changing scenario
and future role of CHAs and freight
forwarders. Eminent speakers include
Sumit Dutt Majumder, chairman, CBEC;
Satish Kumar Goel, member-customs,
CBEC; Alok Sinha, joint secretary, civil
aviation; Anil Gupta, MD, Concor;
Prof Raghu Ram from IIM-Ahmedabad
(Keynote Speaker) and Raj Khalid, Port
of Antwerp representative and several
other dignitaries.
The Convention is also expected to
be addressed by Piero Lazzeri, president,
Italian Federazione Nazionale Imprese di
Spedizioni Internazionali (FEDESPEDI) to
share global experience. It may be recalled
that FFFAI has a fraternal relationship
14 CARGOTALK SEPTEMBER 2011
with the Italian trade association and
was invited by it in September 2010
to explore business opportunity. Some
41 FFFAI members from across the
country went to Italy for mutual benefits.
The visit was sponsored by the Italian
Trade Commission, included a half day
conference and B2B meetings with freight
forwarders in Genoa and Milan. The trip
to Italy was followed by another business
trip to Brussels and Port of Antwerp
to know about the port’s function and
explore business opportunities. The trip
was hosted by Antwerp Port Authority.
The FFFAI chairman shared that
during last two years the federation has
tried to expand its network not only in
the major port areas but also minor and
small port and dry ports. It aims to bring
more CHAs from these areas under its
umbrella. Accordingly, FFFAI organised
its executive committee meetings in places
like Kakinada, Amritsar, Kandla, Mundra,
Cochin, Nagpur, etc. FFFAI’s executive
committee
meetings were
followed by
interactive
meetings with
local CHAs. “This
kind of meetings
are required to
understand the
local issues and to
make them aware
of the activities
and importance
of FFFAI. This
is an important
way to strengthen
our federation,”
said Sud.
H e a l s o
emphasised that
the fast changing
scenario in both
domestic and
international
business in India
offers great
opportunities
to the CHAs to
position himself
well and use this
as an opportunities
to grow. “The CHA has the ability to
work much beyond Customs—he can
guide, service, partner his clientele
much beyond their expectations and
imagination,” he added.
FFFAI is the largest non-governmental
organisation in international transport,
with representations in international
bodies such as FIATA, IFCBA and SAFFFA.
It is the apex body of 24 Custom House
Agents’ Associations in India who represents
approximately 6500 members. The
Federation has a 65 members executive
committee. In addition, organisations
that are directly or indirectly connected
with freight forwarding, shipping and
commerce are associated with FFFAI as
allied members. Currently, FFFAI has
approximately 400 allied members.
FFFAI is recognised by the ministry of
finance, ministry of commerce, ministry
of shipping and ministry of civil aviation,
and many more trade bodies like CII,
FICCI, ASSOCHAM, FIEO, etc. Today
FFFAI has its own institute called Indian
Institute of Freight Forwarders, which
imparts training on freight forwarding
and logistics to promote professionalism
and efficiency in the Indian logistics
industry. The candidates are conferred
with diploma in freight forwarding after
successful completion of the course. FFFAI
is accredited by FIATA.
The main objective of FFFAI is to
organise united action to project and
promote the interests of the profession in
all its aspects at the national level, and for
that purpose to coordinate the activities of
Customs House Agents’ Associations and
their members. It collects and disseminates
information to members on subjects of
common interest.
It takes part in conferences, to help
members and acquaint the authorities
with their common problems, to protect
and improve the common benefits, to
get redresses of legitimate grievances by
all peaceful and constructional means
and procedure to exercise beneficial
supervision over the clearing trade with
a view to maintain a high standard of
integrity and public confidence. FFFAI
emphasises on a code of ethics for the
Customs House Agents and members of
the federation.
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Airlines News
Exclusive Interview
Air Logistics Group
Committed to expansion plans in India
Air Logistics Group (ALG)
was established in the
United Kingdom in
1994 and its India office
commenced operations in
2004. The company is one of the world’s
leading cargo sales and service companies,
with 54 fully owned offices spanning 31
countries. In May 2003, Air Logistics was
the first organisation worldwide to be
awarded an IATA GSSA status.
ALG India was started in 2004
with two offices, in Delhi and Mumbai,
following the inauguration of three weekly
bmi flights ex BOM. The Ahmedabad office
opened in 2008, with the launch of Qatar
Airways daily flights from Ahmedabad. The
Chennai and Kolkata offices were set up
in 2009 and 2010, respectively, following
the launch of Jade Cargo International
B747-400F services.
ALG India’s offline airline partners
include US Airways Cargo, TAM Cargo,
Royal Air Maroc Cargo, Aero Mexico Cargo
and Icelandair Cargo.
ALG has five offices in India - Delhi,
Mumbai, Chennai, Kolkata and Ahmedabad
- with plans to open two additional offices,
in Bangalore and Hyderabad, and other
important gateways in the near future.
ALG, as cargo GSSA to various online and
offline carriers in India, is offering services
to various destinations around the globe. It
represents a variety of airlines, including
16 CARGOTALK SEPTEMBER 2011
Air Logistics Group, which started its operations in
India only seven years ago, has firmly established
its position as a world renowned brand in air freight
market. The company has chalked out extensive
plans and programmes for its expansion in this
growing market. Ajay Kumar Dutta, country
manager-India, Air Logistics Group, unveils the
details to Cargotalk. Ratan Kr Paul
Ajay Dutta
charter solutions. The product offerings
include DGR / Pharma / Express / Fashion
/ Out of Gauge etc.
“To our airline clients, we provide
a range of cargo outsource solutions,
including full operational and customer
support, experienced sales teams, handling
and trucking management, advanced IT
systems, finance and administration,”
said Dutta.
Commenting on the cargo market
scenario in India, Dutta said that in the
next few months, the market trend will
remain steady or witness a slight slowdown
due to the increase in fuel costs and
economic pressure on Europe and USA. In
spite of this, the India market will still be
seen as a potential destination by various
carriers, especially for imports.
Global Strength
Since commencing operations, ALG
has been gradually growing and has shown
positive results year on year. As a group,
the company’s annual revenues exceed
USD 500 million worldwide.
Significantly, the growth into
the African marker is tremendous due
to the high demand for Pharma and
telecommunication cargo.
ALG, as a group, plans to open offices
in many of the major gateways across the
Far East, Australia and Africa, to further
extend its presence around the globe and
to provide a global solution to airlines and
the freight community.
“With recent substantial investment,
ALG continues its aggressive expansion
plans in Asia. Due to the global slowdown
and downward pressure on rates we
see more and more airlines wanting to
outsource in Asia.
Our network of offices in India
has given us a solid footprint, to show
that we can put in place a strong,
reliable GSSA organisation that brings
transparency and revenue improvement at
a variable cost. We are totally committed
to being the GSSA of choice in Asia over
the next ten years,” Dutta concluded by
echoing the recent comments of Stephen
J Dawkins, chief operating officer, Air
Logistics Group.
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Airlines News
New Launch
IndiGo launches
IndiGo started its journey into the
Indian sky in August 2006 and
today, the airline enjoys market
share of 19.7 per cent in the
domestic market. Currently the
airline has 259 flights a day in the domestic
sector, which will soon be increased after
the proposed launch of more flights to
South and East Indian destinations.
Speaking to Cargotalk, Mahesh Malik,
vice president-cargo sales & services,
InterGlobe Air Transport, the parent
organisation of IndiGo, said that the airline
will target all kinds of cargo from and to
India. IndiGo is also planning to carry
cargo beyond the scheduled destinations
it has planned to operate. The airline is in
talk with many international carriers for
interline agreements.
18 CARGOTALK SEPTEMBER 2011
international services from
Delhi and Mumbai
IndiGo has announced its international flights
starting from September 2011. The new daily flights
are Delhi-Dubai, Delhi-Bangkok and Delhi-
Singapore from September and Mumbai-Bangkok
and Mumbai-Dubai from October this year. With
aircraft A320, the belly-hold cargo capacity will be
3 tonne per flight. Ratan Kr Paul
Mahesh Malik
“We are highly optimistic that we
will be able to fill up the aircraft’s bellyspace
(which is 3 tonne per flight). We
are appointing GSAs for all overseas
destinations,” he said. Meanwhile, for
Singapore market IndiGo has signed a
GSA agreement with Globe Air Cargo,
which is under world’s renowned GSA,
ECS Group. Malik, however, discarded
any idea to appoint GSA to look after their
international sales in India. “We will do
the sales and marketing on our own in
India,” he said. InterGlobe has very strong
sales network in India to look after its sale
and marketing for a number of direct and
offline foreign carriers in India.
Asked about the USP of the airline
for their international services Malik
underlined, “It is evident from facts that
IndiGo is a very process oriented airline,
thanks to which the airline is has very
good reputation for its on-time services.
The same procedures will be followed for
the international services,” he asserted.
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Significantly, IndiGo is authorised to carry
customs bonded cargo, presently from 8
major airports to Delhi and Mumbai airports
Commenting on the future plans and
programmes as far as the expansion
of IndiGo’s international flights, Malik
maintained that all depends on the market
scenario and availability of aircraft.
“We are open to explore new markets,
wherever there is demand,” he said. It is
worth mentioning that IndiGo is acquiring
100 A-320 aircraft by 2015 to strengthen
its operations both in domestic as well
as international sectors. Out of them by
March 2012 IndiGo will take delivery of
55 aircraft.
Significantly, IndiGo is authorised to
carry customs bonded cargo, presently
from 8 major airports to Delhi and Mumbai
airports, from where the bonded cargo can
be directly uplifted by its international
flights. “It would reduce the transit time
and accelerate our international cargo
operations. It would benefit our customers
remarkably,” Malik emphasised.
According to Malik, to expedite
air cargo traffic, need of the hour is to
launch more customs airports across the
country. Also, airport cargo infrastructure
has to be strengthened for hassle-free
cargo operations at the cargo terminals,
especially at the small airports.
CARGOTALK SEPTEMBER 2011 19

Product Display
Gandhi Automations
Bolzoni Auramo
Lift Tables
G
andhi Automations has
introduced the wide
range of Bolzoni Auramo
lift tables, with their usual
“safety and reliability
features” to provide an effective solution to
most lifting problems.
According to the company sources, the
tables comply with the European safety of
machinery standards EN 292, Machinery
Directive 98/37/EC and safety requirements
for lift tables EN 1570. All models include:
Aluminium safety bar, stopping descent of
the platform on contact with obstructions;
safety clearance between scissors to prevent
20 CARGOTALK SEPTEMBER 2011
trapping during operation; safety check
valve to stop the lift table lowering in the
unlikely event of the hose break; protection
against overloading; low voltage control box
with up-down buttons and emergency stop;
maintenance props(for safe maintenance
operation) and removable lifting eyes to
facilitate handling and lift table installation.
The company sources also asserted that
they have a wide range of tables and options
available to meet different requirements.
And, Due to their wide experience the
company is able to provide customised
solutions. The company has also launched
Type 1-E Ergo-lift single scissor for evenly
distributed load. It is designed as a “work
station” to provide improved ergonomic
conditions to ensure the health, safety
and comfort of the operator together with
improved productivity.
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Cover Story
View Point
Warehousing and
Logistics Parks
Industry seeks recognition and friendly policy
A
22 CARGOTALK SEPTEMBER 2011
ccording to the survey
report, India has a total
warehousing space of
approx 1,800 million sq
ft, of which only 8 per
Asutosh Gajjar Sanjay Khanna
Ravi Reddy
With the advent of foreign manufacturing, retail and
3PL companies a world standard warehousing with
all modern amenities are on the rise. Add to this the
ensuing GST regime has also necessitates organised
and consolidated warehousing system under scientific
logistics parks. An industry perspective on the
requirements to utilise the opportunities. Ratan Kr Paul
cent (144 million sqft) is in the organised
sector. The current paucity of modern
warehouses is resulting in the colossal
waste of farm produce, reckoned between
20- 40 per cent of the harvest, as well as a
constraint on the growth of futures trading
in farm commodities. This shortage shows
that there is huge potential for a large
amount of quality warehousing space.
With the rapid growth of organised
retail and manufacturing sectors, the
need for warehousing is increasing. Said
Asutosh Gajjar, project head, Shree
Rajlaxmi Logistics Park, “The backend
operation in the form of an efficient
logistics support is imperative for the
growth of retail and manufacturing sectors.
Unfortunately, logistics operations in the
country are largely fragmented and un-
organised.” In his opinion, among other
ogistics components, warehousing is very
vital for the country from a real estate
investment perspective as well.
Sanjay Khanna, CEO, Celebi, India,
added that the warehousing business
contributes a major portion of the logistics
industry in India. This is a fast growing
industry and plays a critical role in a
developing economy like India. Indian
warehousing sector is expected to grow at
a rate of 35-40 per cent every year. And,
the growth potential of this sector is huge.
“The Indian economy in recent years
has seen a huge surge in the services
sector; however it still largely remains
a manufacturing driven economy.
Warehousing plays a crucial role as storing
and handling of commodities are critical
aspects of the supply chain business,”
Khanna said.
He perceives that the market today
is highly competitive and the time gap
between production and consumption
of products is of paramount importance.
Warehousing plays a crucial role in
maintaining the demand supply gaps
and keeps check on the time required
for a product to reach the consumer.
Also, demand for particular products is
low during a certain season therefore
proper storage of products/good becomes
very critical.
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“The growth in international trade
coupled with the rise in containerisation
levels has led to high demand for
warehouses. In order to minimise the
losses due to storage operations it
is essential to have a warehousing system
in place for effective preservation,”
Khanna emphasised.
According to Ravi Reddy, MD, Sri
City, today, the need for large scale
warehousing and logistics is fast catching
up as this fragmented and largely
unorganised industry dominated by small
players with small capacities. It sees over
110 logistics parks being set up across
the country. He also maintained that the
warehousing industry is expected to grow
at the rate of 35-40 per cent every year
with close to 45 million sq ft warehousing
space expected to be developed in the next
five years.
“The Warehousing activities account
for about 20 per cent of the total Indian
logistics industry and offer tremendous
growth potential. At present, the total share
of organised warehousing space is less than
8 per cent of the total warehousing space
in India,” he said.
Ajay Mittal, chairman & managing
director, Arshiya International maintained
that companies look for optimised
warehouse locations that are close to
the suppliers as well as distributors.
Warehouses play a key role in inventory
management, product safety, last mile
value addition etc, and are a major cost
component for the entire supply chain.
“Technologically enabled state-of-theart
warehouses with proper support
infrastructure and trained manpower can
go a long way in maintaining product
sanctity, reducing cost and improving
overall efficiency. Real-time product
visibility enabled with technology helps
to control inventory thus reducing
working capital. Proper handling and
security help reduce pilferage. Efficient
material handling helps to increase
turnaround time. The ways warehouses
are managed have impact from production
to distribution,” he explained. Mittal
Ajay Mittal
Nihar Parida
also underlined the huge impact of the
proposed Goods and Services Tax (GST)
on warehousing industry. “GST will soon
be implemented and will take away all
the inefficiencies arising out of incumbent
complex tax structure as well as interstate
taxes. This will enable companies
to have large mother warehouses feeding
the distributors in the region, rather than
having to maintain warehousing facilities
in different states,” he underlined. He
perceived that companies will then be
able to invest in better warehousing
infrastructure and technology.
Nihar Parida, COO, logistics &
marketing, Uniworld Logistics emphasised
that logistics is an integral part of any
economy. Within logistics warehousing
becomes a basic necessity. The way Indian
economy is growing, the logistics industry
in the country is not able to keep up with
the growth. There is a huge gap between
supply and demand when it comes to
infrastructure. “Look at Delhi which is
supposed to be a huge market as regards
to any commodity. But unfortunately
CARGOTALK SEPTEMBER 2011 23

Cover Story
View Point
Ram Tiwari
Mukesh Rehal
24 CARGOTALK SEPTEMBER 2011
we do not have any legal warehouses
within the state. The infrastructure
available today is not conducive for
warehousing. I would rather call them
‘godowns’ than warehouses,” he said.
The demand for proper warehouses with
the influx of multinational companies or
manufacturers is huge. These companies
(especially Europeans and Japanese)
want to see warehouses that they have
back home. “Good to see lot of PE firms
more interested in putting their money in
warehouse infrastructure,” he pointed out.
Ram Tiwari, director marketing,
Shine Logistics was of the opinion
that warehousing and distribution is
very important part of any country
economy growth. In developed countries
warehousing and distribution is known
and recognised as industry. Unfortunately,
in India it has not been recognised as an
industry or respectable business line.
The Government of India never put clear
guidelines for setting up the warehouses.
He however added, “Since there are no
proper warehouse facilities available in
India, it is a good opportunity to explore
warehousing business in this country.
Most of the Indian and multinational
logistics and warehousing companies are
understanding the demand of modern
warehouses and will be able to invest in
warehouse, if proper support and clear
guide lines are in place.
“This decade belongs to SCM’s
(supply chain management) contribution
to the overall growth of the economy.
Significantly, Indian government is
promoting FDI investment by signing
agreements with like minded economies
like Japan, Malaysia, Indonesia etc. This
promotion definitely will bring lots of
opportunities for traders and manufactures
to utilise 3PL/ 4PL services to the fullest
extent in order to achieve economies of
scale,” added Mukesh Rehal, general
manager – India operations, Yusen Air &
Sea Service (India), 3 PL warehousing,
FTWZ, and bonded warehousing are going
to be used more in future with the support
of the government.
Not only MNCs but local payers
have already concentrated their efforts
for diversifying their focus on vast market
like India. Add to this, logistics Park,
WWW.CARGOTALK.IN

though it is at its nascent stage, would
definitely be the dividing line for future of
logistics industry.
Jugal Kishore Pandey, head (north)-
supply chain, Kaveri Cargo, pointed
out that the growth in large domestic
consumption coupled with the rise in
containerised transportation has led to an
increase in demand for high quality and
professionally managed warehouses.
This growth/demand for good better
managed warehousing services comes
along with a high demand for best
practices and value added services that
are fast developing across warehousing
service providers in the country.
“Logistics and warehouse industry of
India is soon expected to grow at a CAGR
of 12-13 per cent for next 3 to 5 years. At
present, the estimated value of the entire
domestic logistics sector is at around $30
billion and it is expected to grow to $54
billion in 3 years time,” he said. “However
we are yet to see large logistics parks
initiatives in India. Whatever logistics
Jugal Kishore Pandey
Nimish Desai
parks that have come up, are basically
constructed and promoted as real-estate
ventures. Also many logistics parks
promoters do not provide comprehensive
suit of services such as IT connectivity,
electricity, water, tightly managed security
processes,” he highlighted.
According to Pandey, the concept
of logistics parks will largely be limited
to big market cities like Delhi, Mumbai
etc. In these cities too, large companies
having their own critical mass are going
for “built-to-suit” facilities.
In other cities, depending upon the
business need various companies are
opting for tying up with partners who
creates “custom-built” warehouses that are
tailor made for specific requirement. “A lot
depends on how the GST implementation
progresses to determine the future growth
of Logistics Parks,” he viewed.
Taking cue from Pandey,
Nimish Desai, director sales, Infor
India, elucidated that the growth in
international trade coupled with the rise
in containerisation levels has led to high
demand for warehouses thereby creating
a great opportunity for the private sector.
The market, which is valued at INR 20
bn, is expected to grow due to the demand
generated especially by importers and
exporters for specialised services.
According to Desai, the Warehousing
Management System (WMS) applies
right across manufacturing, distribution,
logistics and retail – the specifics of
implementation will change from industry
to industry but they can all benefit.
The leading research and advisory
firm for industry and infrastructure, ARC
Advisory Group ranks the ‘logistics’ vertical
as the biggest area of WMS growth (by
CAGR) between 2009 and 2014, followed
by food and beverage manufacture.
Desai also maintained that government
initiatives such as aiming to move
towards GST tax regime, private
investments in logistics parks, road
infrastructure and freight corridors are
some of the opportunities that have
contributed to the growth of the logistics
and warehousing sector.
Prevailing Trends
According to Parida, the current trend
in warehousing is consolidation and multi
user facilities with modern amenities.
With the advent of GST in the near future
everyone is looking at consolidating their
warehouses may be up to 5 locations in
India. With the pressure of reducing cost
in warehousing, people have realised that
sharing common equipment and workers
is one area that will reduce the cost.
Moreover in a phase of ‘Progressive Supply
Chain’, where the demand fluctuation is
so high everyone is looking at flexi pricing
where they want to pay what they have
consumed. People are moving away from
fixed space idea.
With the private equity firms wanting
to spend on logistics infrastructure it
makes sense for them to acquire larger
piece of land and build huge parks where
they can give it to more than one player
to manage their warehouses.
Reddy added some more trends
that are visible in the warehousing
and logistics parks industry. “Today,
warehouses are increasingly addressing
specific requirements for its customers
such as offering bare storage, storage with
crane facilities, food storage, storage with
multi-level stacking and open storage,”
he highlighted.
He argued that the entry of global third
party logistics players into the country
is changing the face of the logistics
industry as it is fast emerging as a strategic
function that involves end-to-end
solutions that improves efficiencies out
of a combination of transportation and
storage services and logistics.
“It is expected that the creation of the
100 odd Logistics parks (250 – 500 acres)
with all modern facilities especially in port
cities like Mumbai and Chennai will lead
to cost reductions,” he said.
One of the crucial elements
determining the fate of logistics industry
in the country is technology. Said Mittal,
warehousing technology and infrastructure
has moved to very advanced stage in
developed economies across the world
with widespread use of RFIDs, WMS,
ASRS, high end technologies and IT
CARGOTALK SEPTEMBER 2011 25

Cover Story
View Point
infrastructure. He observed that India is
still lagging behind in this regard and looks
at warehousing as a cost center, ignoring
the value it can create in the supply chain.
Companies are maintaining small
warehouses in different states due to
interstate taxes and non-uniform tax
structure, thus increasing the warehousing
cost as well as maintaining sub-standard
warehousing facilities. Moreover due to
the unorganised and fragmented nature
of the logistics and supply chain sector,
companies are dealing with multiple
service providers thus there is little
integration of warehousing function with
the rest of the supply chain.
Desai pointed out that there is an
increased demand for labor management
features from many companies. Labor cost
is single most controllable operational in a
warehouse and it forms approximately 50
per cent of the overall cost of operations.
In addition, integration of WMS with
Transportation Management System is
also becoming very popular. It ensures
seamless, continuous and efficient business
processes in warehouse distribution. The
rapid growth in 3PL providers is forcing
WMS vendors to consider developing
multi-tenant architectures.
Service Oriented Architecture (SOA)
has also become an important trend
even though the concept behind it have
been around for a decade. SOA is an
architectural style that enables a collection
of independent services to communicate
with each other.
Suggestions
Tiwari appealed to the Government
of India to recognise warehousing as an
industry. He expects all kinds of support
including tax benefits from the authorities
concerned to establish warehouses and
logistics parks.
“The first and foremost is government
recognition for logistics as an industry.
Government should announce some tax
benefit for these developers in terms of
tax or capex tax waiver so that it can be
transferred to end users. More and more
states should come out with schemes to
open logistic parks,” endorsed Parida.
26 CARGOTALK SEPTEMBER 2011
Gajjar, on the other hand, put
emphasis on the role of private players
in establishing proper logistics parks.
While developing logistics parks developer
should consider proper complex / building
layout plan and road designing considering
inflow and outflow of vehicle movement.
He maintained that building design
should be in cubic feet not in sq ft; it
should consider whether condition and
proper building drainage plan; water
harvesting; green plantations; solar lights
provision, Fire hydrant / sprinkler system
for safety; heavy duty floor; parking;
security; IT networking; doctor room;
conference hall; dormitory; shopping;
entertainment, etc. “If the developer
consider all above points while developing
logistics park, the growth of the sector
would be phenomenal,” he felt.
Reddy’s suggestions for this industry
to grow after the introduction of GST,
are also prompted by larger perspective.
“Move out of large cities – typically into
areas, which is 90 minute drive with good
road connectivity; reduce the loading
and unloading time of goods to less than
one hour and create adequate parking
infrastructure for trucks - enabling them
to do inbound and outbound goods
transport,” he said.
According to him, if the industry
players give their demand projections
for various types of warehouses, it would
enable developers to choose and create
required capacity resulting in better
planning and reduction in costs of 10 to
15 per cent.
“As India encourages liberalised
economic policies, the logistics industry
needs to have a simple tax structure
for having inter-state and intrastate
transaction,” said Rehal. He urged for
early implementation of GST to reduce
hassles that deterring the growth of
logistics industry in India.
WWW.CARGOTALK.IN

Cover Story
Exclusive Interview
India to witness surge
in Logistics Parks
WDRA plays the advocacy role
Rai highlighted some
landmark initiatives. He
pointed out that Indian
Railway is constructing
dedicated eastern and
western freight corridors in the country and
is in the process of discussion with the state
governments for finalising the locations of
logistic parks along the dedicated corridors.
Besides, it has also plan to set up logistic
parks in big metro cities where Railway
is having its unused land through private
sector participation. The railway is planning
to offer land to private sector for setting up
facilities like warehouses, cold storage,
banks, repair facilities for trucks, godowns,
custom facilities and multi-modal transport
system. The basic criteria for such parks
is that they should be near National
Highways and in metros. These parks has
an objective of catering to the growing
demand of commercial activities in
the cities. The Central Warehousing
Corporation (CWC), a Government of
India PSU is already operating rail side
warehouses in the country.
According to Rai, with the enactment
of the Warehousing (Development
and Regulation) Act, 2007 and since
the establishment of the Warehousing
Development and Regulatory Authority
(WDRA), the negotiable warehouse receipt
system has been introduced first time in
the country. The Negotiable Warehouse
Receipts (NWRs) issued by the warehouses
registered under this Act would help
28 CARGOTALK SEPTEMBER 2011
The manufacturing and agriculture sectors are
growing fast in the country. There is a huge growth
opportunity for warehousing business in the country.
A large number of SEZs being developed in the
country have necessitated the development of
logistic parks, said Dinesh Rai, chairman, WDRA
Dinesh Rai
farmers and traders to seek loans from
banks against NWRs to avoid distress sale
of agricultural produce.
According to Rai, 352 warehouses, both
from public sector and private sector have
applied for registration with the WDRA. Till
date, 120 warehouses have been registered
with the WDRA. These warehouses are
issuing negotiable warehouse receipts
(NWRs) to farmers against the deposit of
their produce in registered warehouses and
are availing the benefits of NWRs.
Rai observed that the warehousing
industry has bright future in India and
now it is growing fast since number of
incentives and business guarantee is being
given by government organisations like
FCI. “The logistic parks provide integrated
facilities for handling, warehousing,
transportation, packing etc. They have their
own importance and provide integrated
services at one location. They have also
good future with the growth of industrial
and agriculture production,” he added.
He, however, maintained that the
logistic parks should have state-of-the-art
facilities for handling, storage packaging
and transportation facilities. They should
have mechanised modern equipment and
machinery for handling, warehousing and
packaging of various goods. Rai shared
that the industry-friendly policies are
conceptualised and formulated by various
Ministries of the Government of India
dealing with warehousing Industry and
financing thereof, while WDRA plays a vital
advocacy role.
WDRA has taken up issues such
as classification of warehousing as a
full-fledged infrastructure status,
extension of tax incentives for the
entire sector which now are available
only for the warehouses at the ports.
Extension of RIDF funds for the private
sector and loan facility at concessional
rate of interest to warehousing sector
are some of the other issues undertaken
by the WDRA. “The WDRA is keen that
warehousing should be accorded the
status of full fledged infrastructure and
all tax benefits and financial incentives
available to infrastructure sector should
be made available to warehousing sector.
Government should also provide cheaper
land for warehousing,” he concluded.
WWW.CARGOTALK.IN

Product Display
New Launch
Honeywell introduces
Dolphin 6000 in India
The mobile scanning technologies
will tap logistics industry
Speaking to Cargotalk,
Shailesh Deshmukh, country
manager for India, Honeywell
Scanning & Mobility (HSM),
informed that the compact
Dolphin 6000 Scanphone automates the
data collection process and delivers realtime
access to business data, leading to
improved productivity, more informed
decision making and lower operating costs.
He also asserted that Dolphin 6000
delivers more reliability, more powerful
scan performance and greater line of
business application support, than any
smartphone in the market.
According to Deshmukh, Dolphin
6000 is an improvement over consumergrade
smartphones, used for enterprise
applications. Hence, it meets the barcode
scanning needs of mobile information
workers. In addition to its basic mobile
phone functionality, Dolphin 6000 offers
advanced productivity features geared
towards today’s vertical enterprise,
including field service, field sales, and
retail and logistics operations.
“An integrated scanner provides
fast and accurate bar code scanning,
greatly simplifying data entry tasks;
30 CARGOTALK SEPTEMBER 2011
Honeywell recently announced the introduction of
the Dolphin 6000, a new mobile device that bridges
the gap between consumer mobile phones,
industrial mobile computers and bar code scanners,
empowering mobile information workers to
connect, collect and communicate at the point of
customer service. Ratan Kr Paul
Shailesh Deshmukh
while Honeywell’s Remote MasterMind
for Mobility device, Dolphin 6000
management software allows
users to manage, update and
remotely diagnose all Dolphin
6000 devices within a
network from one
centralised location.
It helps to lower
development and
maintenance costs.
“More rugged
than a smartphone,
Dolphin 6000 is resistant
to moisture and particle
intrusion, making it suitable for use in
adverse conditions, such as those
encountered by a field service or logistics
worker,” added Deshmukh.
Dolphin 6000 also has an integrated
megapixel camera and is optimised for
voice communication. Multiple wireless
options, including GPS, Bluetooth and Wi-
Fi,
help
users
stay
connected
in a variety of
environments.
Deshmukh
informed that
Australia and India
are the first markets
WWW.CARGOTALK.IN

Product Display
New Launch
HONEYWELL SCANNING & MOBILITY
Honeywell Scanning & Mobility (HSM) is an affiliation of Automation and Control
Solutions Group under Honeywell International. HSM was founded in July 2008 after
Honeywell International acquired Metrologic Instruments, an industry-leading data
capture and collection company, and integrated it with Hand Held Products, another
advanced manufacturer of imaging and mobility solutions that Honeywell acquired
the previous year.
Today, HSM is a leading manufacturer of high-performance image-and laser-based
data collection hardware, including rugged mobile computers and bar code
scanners. The HSM product portfolio is one of the broadest in the AIDC industry,
providing solutions for vertical markets such as retail, manufacturing, healthcare,
transportation and logistics. HSM complements the innovative products with
advanced software, services and professional solutions that enable customers to
effectively manage their data and assets. Honeywell products are sold worldwide
through a network of distributor and reseller partners. In India, a direct presence
was established in late 2005 and in these short few years, HSM has gained a strong
foothold in the Retail vertical, with all first tier organized retailers using our solutions
to enhance productivity. HSM also has a strong and growing presence in the
Manufacturing, Transportation and Logistics verticals. With a solid foundation built
on iconic customers through different verticals, we are poised to ride the prospective
growth wave in India and claim our just share of this strategically important market.
32 CARGOTALK SEPTEMBER 2011
where Dolphin 6000 was launched,
as these are the fast growing markets
holding immense potential for futuristic
products like these. In the meanwhile, the
company organised several road shows in
different cities across the country,
including Delhi, Mumbai, Chennai and
Kolkata. Deshmukh is expecting huge
responses, especially from retail, health
care and logistics industry in India.
Presently, the company has appointed
25 “Resellers” across the country,
which would reach to at least 50 by
this year. Based in Morris Township, N.J.,
USA, Honeywell Scanning & Mobility
is an affiliation of Automation and
Control Solutions Group under
Honeywell International.
It is a USD 600 million company with
its strong presence in USA, Europe and Asia
Pacific region. In India the company has
its presence since 2005 and has achieved
25-30 per cent year-on-year growth.
WWW.CARGOTALK.IN

Cargo Performance
Import / Export
S. No. Airlines
34 CARGOTALK SEPTEMBER 2011
DELHI INTERNATIONAL AIRPORT CARGO DEPARTMENT,
IGI AIRPORT, NEW DELHI
(AIRLINE-WISE IMPORT/EXPORT CARGO PERFORMANCE
FOR THE MONTH OF JULY 2011)
Export(MTs)
Export
Perishable
Cargo (MTs)
Export
(with Peri.)
(UPL)(MTs)
Import
Total
Cargo
%
of Total
1 Cathay Pacific 1107 4 1111 2226 3337 10.42%
2 Jet Airways 1105 277 1382 1528 2910 9.08%
3 Emirates .........................................598 .................985 ................ 1583 .................611 .................2194 ............6.85%
4 British Airways 943 34 977 1037 2014 6.29%
5 Air India 486 249 735 735 1470 4.59%
6 Lufthansa Cargo Airline 471 27 498 949 1448 4.52%
7 Kingfisher Airlines Ltd. 541 39 580 738 1318 4.11%
8 Fedex Express Corpation 750 0 750 433 1184 3.69%
9 Singapore Airlines ..........................456 .................. 21 .................. 477 .................672 .................1150 ............3.59%
10 Thai Airways 225 37 263 699 962 3.00%
11 Swiss World Cargo(India) 383 43 426 390 816 2.55%
12 Qatar Airways 324 193 517 280 797 2.49%
13 Etihad Airways 343 86 429 355 784 2.45%
14 KLM ................................................387 .................. 50 .................. 436 .................274 ...................711 ............2.22%
15 Malaysian Airline System 318 34 353 318 670 2.09%
16 Aerologic 416 3 419 220 638 1.99%
17 Uzbekistan 381 28 409 227 636 1.99%
18 Turkish Airlines 450 20 470 140 610 1.90%
19 Virgin Atlantic 366 0 366 240 606 1.89%
20 Air France.......................................301 .................. 45 .................. 347 .................226 ...................573 ............1.79%
21 Finnair 338 13 352 182 533 1.66%
22 Austrian Airlines 163 20 183 190 373 1.16%
23 Saudia 252 73 325 22 346 1.08%
24 American Airlines Cargo 212 12 224 115 339 1.06%
25 Aeroflot Cargo Airlines 248 40 289 37 326 1.02%
26 China Eastern Airlines 107 0 108 159 266 0.83%
27 Eva Air............................................105 .................... 0 .................. 105 .................143 ...................248 ............0.77%
28 China Air 93 2 95 148 243 0.76%
29 Japan Airlines 60 2 61 165 226 0.71%
30 Air China 119 0 119 96 214 0.67%
31 Continental Airlines 135 1 136 77 213 0.66%
32 Royal Jordanian Airlines 45 116 161 10 171 0.53%
33 Blue Dart ........................................161 .................... 0 .................. 161 .................... 5 ...................166 ............0.52%
34 Asiana Airlines 21 0 21 104 124 0.39%
35 Air Mauritius 55 60 115 7 122 0.38%
36 Ariana Afghan Airlines 83 0 83 31 114 0.36%
37 Gulf Air 86 16 102 4 106 0.33%
38 Aerosvit 65 26 91 1 92 0.29%
39 Mahan Air .........................................52 .................... 6 .................... 58 .................... 7 .....................65 ............0.20%
40 Air Arabia 62 1 63 1 64 0.20%
41 China Southern Airlines 3 5 8 53 62 0.19%
42 Oman Air 50 0 50 1 51 0.16%
43 Pakistan International 16 1 17 28 45 0.14%
44 Ethopean Airlines 8 0 9 33 42 0.13%
45 Turkmenisthan Airlines 32 1 33 0 33 0.10%
46 Jetlite ................................................17 .................... 0 .................... 17 .................... 4 .....................21 ............0.06%
47 Sri Lankan Airlines Ltd 12 0 13 9 21 0.07%
48 Air Astana 16 0 16 3 19 0.06%
49 Kuwait Airlines 1 2 3 4 7 0.02%
50 Druk Air 2 0 2 0 2 0.01%
51 Royal Nepal Airlines .......................... 1 .................... 0 ......................1 .................... 1 ...................... 1 ............0.00%
52 Deccan Express Log 0 0 0 0 0 0%
53 Indian Airlines 0 0 0 0 0 0.00%
54 MIS 1111 54 1165 1388 2553 7.97%
Total 14083 2626 16709 15323 32033
Cargo handled in July‘10 15755 2375 18130 14658 32787
% VARIATION -10.61% 10.59% -7.83% 4.54% -2.36%
## Cargo Handled at Centre for Perishable Cargo
All wt. in mt.
WWW.CARGOTALK.IN

S. No. Airlines
MUMBAI CSI AIRPORT
EXPORT/IMPORT CARGO TONNAGE HANDLED
IN JULY 2011
Export
General
Export
Perishable
WEIGHT IN TONNES
Total
Export
Import
(Including TP Cargo)
Total
Exp+Imp
1 Jet Airways 1739.44 785.83 2525.27 2240.27 4765.54
2 Emirates 1423.88 1099.58 2523.46 1145.17 3668.62
3 Air India .................................... 1174.37 ........... 1436.28 ........... 2610.64 .............. 772.36 ...........3383.00
4 Cathay Pacific 1232.07 6.03 1238.10 2071.30 3309.40
5 Lufthansa 756.37 412.35 1168.72 2033.30 3202.01
6 Kingfisher Airlines 613.81 7.23 621.03 981.39 1602.43
7 Singapore Airlines 653.30 72.27 725.57 832.15 1557.72
8 British Airways ............................ 693.02 ............. 321.37 ........... 1014.39 .............. 458.77 ...........1473.16
9 Qatar Airways 435.22 282.53 717.75 447.59 1165.34
10 Etihad Airways 572.73 52.09 624.82 504.66 1129.48
11 Federal Express 458.41 243.12 701.53 232.05 933.58
12 Air Cargo Germany.........................3.30 .................0.00 ................. 3.30 .............. 912.40 .............915.70
13 Swiss Intl. Airlines 318.15 140.33 458.48 452.55 911.03
14 Thai Airways 266.13 34.58 300.71 573.46 874.17
15 Turkish Airlines 363.60 13.67 377.27 311.77 689.04
16 Saudi Arabian Airlines ................ 433.68 ............. 148.60 ............. 582.28 ................ 53.94 .............636.23
17 Air France 312.73 43.84 356.57 271.21 627.78
18 Malaysian Airlines 343.03 27.19 370.22 235.29 605.51
19 Ethopian Airlines 486.42 20.95 507.37 23.99 531.36
20 Korean Air 366.99 0.60 367.58 95.97 463.55
21 UPS ............................................... 78.05 .................0.00 ............... 78.05 .............. 347.21 .............425.26
22 Qantas 133.00 12.99 145.99 189.98 335.97
23 Kenya Airways 295.80 0.33 296.13 14.71 310.84
22 Delta Airlines/KLM 117.96 9.72 127.67 155.63 283.30
24 South African Airlines 244.01 6.38 250.38 19.34 269.72
25 Kuwait Airways .............................. 97.40 ............. 162.29 ............. 259.69 .................. 7.03 .............266.72
26 Airasia 108.38 0.00 108.38 148.97 257.36
27 Gulf Air 114.92 137.08 252.00 2.32 254.32
28 Austrian Airlines 0.00 0.00 0.00 222.94 222.94
29 Charters 0.00 0.00 0.00 202.49 202.49
30 Continental Airlines ...................... 67.65 .................0.00 ............... 67.65 ................ 86.72 .............154.37
31 Air Mauritius 143.80 0.28 144.09 0.10 144.19
32 EL-AL Airlines 76.94 0.04 76.98 65.86 142.84
33 Air Arabia 87.45 33.05 120.50 2.43 122.93
34 Oman Air 81.06 21.05 102.11 1.19 103.29
35 Blue Dart ....................................... 32.33 .................0.00 ............... 32.33 ................ 65.51 ...............97.85
36 Srilankan Air 52.61 7.34 59.95 20.41 80.36
37 Iran Air 63.58 6.76 70.34 2.10 72.44
38 Pakistan Airways 51.26 6.21 57.47 8.28 65.75
39 Egypt Air 39.59 0.04 39.63 1.21 40.83
40 Yemenia Airways 16.85 7.34 24.19 0.16 24.35
41 Royal Jordanian Airways ................ 13.21 .................0.00 ............... 13.21 .................. 0.78 ...............13.98
42 Jade Cargo 0.00 0.00 0.00 43.43 43.43
43 NorthWest Airlines 0.00 6.65 6.65 0.00 6.65
44 Others 96.79 15.84 112.63 109.25 221.88
GRAND TOTAL 14659.25 5581.81 20241.06 16367.60 36608.66
EXPORT/IMPORT CARGO TONNAGE HANDLED
IN JUNE 2011
Cargo Handled in June’11 14456.78 5201.88 19658.67 15451.86 35110.53
CARGOTALK SEPTEMBER 2011 35

International News
Corporate Social Responsibilities
36 CARGOTALK SEPTEMBER 2011
HUMANITARIAN AID
FLOWN TO HORN OF
AFRICA BY CHAPMAN
Chapman Freeborn Airchartering’s worldwide offices
are involved in the effort to transport humanitarian
relief supplies to help people affected by famine in the
Horn of Africa.
The worst drought in East Africa in 60 years has affected
more than 10 million in Kenya, Ethiopia, Djibouti and
Somalia. The UN has already declared a famine in several
parts of Somalia - the first in the region this century.
The global aircraft charter specialist has overseen the
delivery of relief cargo from Europe and the Middle East
on behalf of charities and international aid agency clients.
Aid cargo has been flown into airports including Nairobi,
Addis Ababa and Mogadishu utilising full and part
charters on IL-76, B767 and B747 aircraft.
Chapman Freeborn’s Germany office also coordinated a
charter on behalf of, a German-based international aid
organisation. Over 30 tons of milk powder and medicines
were flown from Munich to Nairobi on a DC-8 freighter.
LUFTHANSA CARGO’S
FLIGHT AGAINST
FAMINE
Together with the aid organisations, Wings of Help,
and PAYBACK, Lufthansa Cargo has organized a
MD-11 freighter relief flight to Nairobi. On board
were around 90 tonne of relief supplies, principally
medicaments and food, for the famine-stricken people
in East Africa.
Underling the importance of direct aid in the provision
of relief Karl Ulrich Garnadt, chairman and
CEO, Lufthansa Cargo said, “The generosity of the
German people and industry is immense when donations
are needed,” he said.
Frank Franke, president of Wings of Help, was on
the MD-11 flight and on-site when the relief supplies
were distributed. He underlined, “The solidarity
shown in our Country by private donors and industry
is truly impressive. The people in Germany have
not forgotten what it is to suffer need.”
The Lufthansa Cargo MD-11 freighter left Frankfurt
for Nairobi on August 17. The relief supplies were
distributed on arrival in cooperation with the International
Medical Corps.
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International Airport
Terminal News
AAI develops
Air Cargo Complex
at Amritsar Airport
Airports Authority of India,
the main stay of Indian
Civil Aviation has been
according due diligence
to air cargo a vital
ingredient which contributes immensely
to the country’s ever changing economic
scenario and its growth.
In keeping with our objectives on
cargo operations which are simple yet
substantial: excellence, efficiency and
service standards which are second to
none in the world, we have established a
cargo complex at the Golden Opportunity
Airport, Amritsar. Here too, our aim has
been to simplify air cargo movement by
38 CARGOTALK SEPTEMBER 2011
The Airports Authority of India (AAI) has taken
several commendable initiatives as regard to the
development of Air Cargo Terminals, operated by it.
Gp Captain DC Mehta, advisor (MR), AAI gives an
update on the cargo operations at Amritsar Airport.
Ratan Kr Paul
using state-of-the-art technology and
ensuring user-friendly environment.
Expertise in Handling
Air Cargo
Operations
AAI is a ‘Reservoir’ of expertise in not
only providing consultancy in establishing
air cargo complexes but also, in designing
and managing air cargo operations – be it
of international or domestic nature.
Our team has an experience of close
to four decades of cargo operations and
has acquired the competence of creating
integrated - modernised development of
operational terminal of cargo facilities.
AAI cargo is known in the industry for its
commitment in providing the hi-value /
tech goods / cargo movements respectively.
We have established a habit of
excellence and confirming to the
international standards of service.
The bottom line is zero tolerance in
mishandling of cargo. AAI having realised
the importance of developing the
Human Resources to keep pace with the
ever changing technology has invested
intensively on training in various courses
like air cargo management system, DGR
Gp Captain DC Mehta
specialisation course which control the
proper storage of hazardous cargo
worldwide through trained executive team.
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International Airport
Terminal News
CARGO FACILITIES AT AMRITSAR AIRPORT
The Cargo Terminal was constructed by AAI on an area of 2256 sqmt. and a paved area of 2888 sqmt. on 20.11.2004.
The Air Cargo complex at Amritsar Airport has the following facilities:
Customs EDI system is well equipped with EDI 1.5 version for computerised process of all type of shipping bills.
Export and import wings with two X-ray machines installed for scanning of cargo.
Four weighing scales plus two precious items weighing scales are provided for weighing of cargo.
One strong room for keeping the valuable goods at each side (Import & Export).
Examination/bonded and paletasisation are separately earmarked on each side.
The Cargo Terminal has a separate storage area for dangerous goods. Trained manpower is available for
handling the dangerous goods.
The Air Cargo Complex has adequate equipment for handling the cargo.
Spacious truck dock area is available on both sides.
A separate cargo bay is available for parking the cargo aircraft.
The whole cargo complex from city to airside is covered by the CCTV system.
Web-Based EDI
System with
Customs ICES
1.5 Compatibility
The department of customs have
commissioned ICES 1.5 version by issuing
notification no. 43/Customs/2010 dated
15.12.2010 for computerised processing
of all categories of shipping bills for export
cargo. The web based EDI system enables
online registrations, filling of documents
and status check of cargo, accuracy in
information, reduces transactions, time,
facilitates convenience in payment
40 CARGOTALK SEPTEMBER 2011
of charges besides easy tracking and
tracing of cargo. Simultaneously AAI
have commissioned new EDI system
based Customs ICES 1.5 version at Air
Cargo Complex.
Amritsar Airport
Perishable
Cargo Centre
The Air Cargo complex has a separate
perishable center for export of perishable
cargo operated by Council for Value
Added Horticulture of Punjab (CVAHP).
The infrastructure for perishable cargo
includes 2 pre-cooler chambers, 2 X-ray
machines for scanning of perishable cargo
and 4 cold room.
Major commodity export through
perishable center are baby corn, snow
peas, green peas, green chili, coriander,
bottle gourd, bitter gourd, red chili,
mangoes, guava, kinnow, etc. The prime
destination is London for exporting
perishable goods. Indians are London’s
non-white ethnic minority group, with
a population of around 500,000 (which
is more than the number of Indians in
the Netherlands, Germany, France, Italy
and Portugal combined). They are fond
of fresh Indian fruit and vegetables and
get cheaper price in comparison to local
markets of London.
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Potential of Cargo
in the Region
There is a great potential of cargo
in the region surrounding Amritsar city.
It is an industrial hub like Jalandhar,
Ludhiana, Ambala and Baddi.
The World Bank ranked Ludhiana as
the city in India with the best business
environment in 2009. There are thousands
of small scale industry units produce
industrial goods, machine parts, auto
parts, household appliances, hosiery,
woolen garments, bicycle, tractor parts,
and two wheelers parts. Many parts used
in German car like BMW and Mercedes
are exclusively produced in Ludhiana.
Ambala is known as the city of scientific
instruments. It is a hub for products
like glass apparatus, microscopes and
laboratory equipments. It produces nearly
34 per cent of total production of scientific
instruments produced in India. The Baddi
is Asia’s largest pharmaceutical hub. Today
there are over 800 medical and pharma
companies alone in Baddi inclusive of the
giants like Cipla and Dabur. Jalandhar
also has an electrical goods industry. An
international sports market is also situated
in Jalandhar.
Major commodities being exported /
imported from and to Amritsar airport
are tobacco products, pharma, sports
goods, leather products, RMG (readymade
garments), engineering goods, handicrafts,
dry mushroom, aircraft parts and textiles.
Major Airlines
Operators
Major international airlines operating
ex-Amritsar airport are Air India,
Turkmenistan Airlines, Uzbekistan
Airlines, Qatar Airways, Jet Airways and
Hercules Aviation, the non-schedule
freighter operator.
BMI (British Midland Airlines) is to
going to start operations from October
13, 2011. BMI connects destinations
worldwide like London, Birmingham,
Toronto, Doha, Ashkhabad, Almaty,
Moscow, Milan, Kuwait, Singapore,
Colombo, Kabul, Kandahar, Frankfort,
Hamburg, Dubai, Amsterdam, Jonesburg,
Leeds, Riyadh etc.
Conclusion
Keeping in view the enormous potential
of cargo in the region, especially taking
into consideration that this being the
richest NRI belt coupled with the ever
increasing tourist attraction, Amritsar
Airport is provisioning a commensurate
air cargo complex to handle activities
such as Bonded Cargo Trucking, X-ray
screening/certification by AAI, Air Cargo
Community System, courier/ express
cargo handling, etc. The airport is also to
undertake domestic cargo handling with
adequate importance.
CARGOTALK SEPTEMBER 2011 41

Express Cargo
New launch
DHL and Blue Dart
Introduce Smart Truck technology
Smart Truck technology of DHL
is the first deployment outside
Germany. Created by DHL
Solutions and Innovations
(DSI), the DHL Smart Truck
is an “intelligent” pick-up and delivery
vehicle that combines a number of
innovative technologies, including a route
planner. Launched in Germany in 2010,
DHL Smart Truck reduced number of
miles traveled by 15 per cent and length
of average route by 8 per cent, during its
pilot stage, reducing both fuel consumption
and CO2 emission.
For the Indian market, Smart Truck
technology is designed to provide solutions
to urban logistic challenges, such as
traffic restrictions, density and clogging,
while ensuring environmental protection
and fulfilling customer need for timely
delivery. According to the DHL and Blue
Dart sources, these “intelligent” pick-up
and delivery vehicles compute delivery
deadlines to calculate the ideal sequence
42 CARGOTALK SEPTEMBER 2011
DHL and Blue Dart, part of the DHL Group, have
launched Smart Truck technology in
Bengaluru on pilot project basis, with an objective
to improve service quality, cut costs, reduce time
and CO2 emission. CT Bureau
for shipments, and use real-time GPS to
avoid jams and optimise routings, thereby
enabling flexibility and last minute pickups.
This allows the DHL Smart Truck to
spend more time on the road to perform
their pick-up and delivery services.
The Smart Truck technology
also enables a more efficient sorting process
by synchronising the data and physical
flow, while real-time communications
and visibility of services avoid ‘missed’
pickups and delayed deliveries. Together,
this provides better customer service
and a more cost-effective operation, as a
result of optimum use of vehicles with less
wasted miles.
“Adapting Smart Truck technology to
work in a city like Bengaluru, will have far
reaching positive benefits for our clients,
the city’s economy, the environment, and
in the long-term for all emerging markets,”
said Anil Khanna, managing director, Blue
Dart Express. The Blue Dart Smart Truck
pilot, as it is known in Bengaluru, will cover
all Asia-Pacific inbound shipments on five
routes in the city, with the system sorting
deliveries to reduce errors and increase
visibility. “This gives customers an accurate
delivery time. To successfully launch the
pilot here, we are planning to introduce the
technology across the nation, where there
are problems related to pollution and traffic
congestion,” added Khanna.
Present on the occasion, Jerry
Hsu, CEO, DHL Express Asia Pacific,
underlined DHL’s GoGreen initiatives,
which prompted the launch of innovative
solutions to reduce carbon footprint and
provide better services to customers. “In
fast-growing, emerging markets, such as
India, those needs are critical and will
grow. More so as the world continues
to urbanise and megacities proliferate.
To ease congestion, improve services
and cut pollution, we need solutions
that will make a positive impact on the
environment,” he maintained.
WWW.CARGOTALK.IN

Young & Emerging
Face to Face
Giving a new
dimension
to marketing for
supply chain & logistics industry in India
Vineet is one of the most
passionate and finest
m arketing leaders of
India Inc at present. He
received his MBA Degree
in Marketing from Faculty of Management
Studies (Delhi) in 1999. He did his
Bachelors in Engineering from MMM
Engineering College (Gorakhpur) in 1997.
Post his MBA, Vineet started his career with
HCL and went on to work with ConAgra
Foods. Later, he had a long stint with the
world’s largest conglomerate Samsung as
head – marketing. For his tremendous
contribution in building Samsung brand
equity in India, he was honoured with
the highly prestigious Award of ‘Best
Employee of Samsung’.
Vineet joined Safexpress over 4 years
ago. Since then, he has made a colossal
contribution in the rapid growth of the
company. He has been instrumental
in carving out a holistic marketing
strategy for Safexpress, with special
focus on the fundamentals of marketing.
Having commendably positioned Brand
Safexpress as the ‘Market Leader’ and
‘Knowledge Leader’ in the Supply Chain
& Logistics industry, in a very short timespan,
Vineet has managed to radically
enhance Safexpress brand equity in India.
Under his leadership, Brand Safexpress
has won numerous prestigious awards,
44 CARGOTALK SEPTEMBER 2011
Vineet Kanaujia, GM – Marketing, Safexpress, and
an emerging young professional of the supply chain
& logistics industry in India, spoke to Cargotalk
exclusively. The enlightened and dynamic
marketing person has a wide vision and foresees a
huge scope in the logistics industry (read sunrise
industry) for generation next. Ratan Kr Paul
Vineet Kanaujia
including ‘PowerBrand Award’, ‘Master
Brand Award’, ‘Golden Peacock Award’
and ‘Brand Loyalty Award’. However, his
most remarkable accomplishment came
about recently when Brand Safexpress
was rated as ‘India’s Most Promising
Brand,’ in a research by ‘Indian Council
of Market Research’, that included over
40,000 brands in India.
For his incredible contribution in
establishing Safexpress as one of the
foremost brands in the country, Vineet
has been conferred with several highly
venerated awards. These include ‘Brand
Leadership Award’, by World Brand
Congress, ‘Professional of the Year Award’,
by Express Logistics & Supply Chain
Council, as well as ‘Glory of India Award’
and ‘Marketing Man of the Year Award’, by
Institute of Economic Studies. He received
WWW.CARGOTALK.IN

his best-ever accolades recently when he
was bestowed with the highly coveted
‘India’s Greatest Brand Builder Award’
and ‘Best CMO of the Year Award’ by the
CMO Council, USA.
Driving
economic
growth through
Supply Chain
& Logistics:
According to Vineet, supply chain and
logistics industry is a sunrise industry (a
US$ 110 billion industry) and growing
at a fast pace. Interestingly, currently
about 99 per cent of this industry in India
is controlled by unorganised companies.
This presents a huge opportunity to the
specialised 3PL companies for getting the
industry consolidated and more organized.
“The 3PL boom is on the horizon, thanks
to the ensuing GST regime. Sky is the limit
for supply chain and logistics industry in
India,” says Vineet.
He expresses high optimism about
the opportunities for young professionals
in the apparently glamourless sector of
logistics. “Four years ago I perceived huge
opportunity in supply chain and logistics
industry, given the critical role it played
in the growth of the country’s economy.
When I got an opportunity to serve this
industry, I gladly accepted the challenging
assignment,” shares Vineet. Remarkably,
he has added a new dimension to
the supply chain & logistics industry
with his innovative ideas. Safexpress is
now recognized as a “Power Brand” in
this industry.
“Innovative services apart, organised
logistics companies in India must exercise
effective marketing and branding in the
B2B domain too, for long term benefits,”
he maintains. Vineet, however, asserts that
Safexpress does not do “selfish marketing.”
The company’s marketing is invariably
associated with the greater interest of
the industry. For instance, presently
Safexpress has started a massive “Go
Green,” campaign, alongside a campaign
urging enterprises to get GST-ready.
Vineet is equally concerned about the
tremendous crisis of skilled manpower
in the logistics industry. In view of the
fact that logistics is the second largest
employment generating industry (after
agriculture), Vineet advocates for strong
academic institutions for logistics.
Safexpress has already started working in
this regard by establishing “Safeducate,”
its training academy. In the near future,
this academy may be open to the industry
for availing its services. According to him,
in next five years time, the industry will
HIS FAVOURITES
National Leaders: Swami
Vivekananda and Mahatma
Gandhi
Actors: George Clooney and
Tom Cruise
Singers: Michael Jackson,
Madonna, Hemant Kumar and
Kishore Kumar
Sportsman: Didier Drogba
(footballer from Ivory Coast)
Writers: Frederick Forsyth
and Al Ries
Tourist Destinations: Kalpa in
Himachal Pradesh, India; New
Zealand and Italy
Hobbies: Writing for
newspapers and magazines,
reading, music, trekking
and soccer.
be requiring millions of trained manpower,
in the backdrop of the growing GDP (to
the extent of about 9 per cent per annum).
“For our economy to grow consistently
at 9 per cent levels, we need to get the backend
and most importantly infrastructure in
shape. We will urgently need to reduce the
geographical barriers, regulatory barriers,
road infrastructure barriers and skilled
manpower gap,” urges Vineet.
He underlines the fact that presently
National Highways in India consist only
two per cent of total road network,
though 40 per cent of road freight traffic
is being carried on these Highways. “As
a result, there is tremendous congestion
and wastage of fuel as well as time,” he
highlights Safexpress being a pioneer
in developing Green Supply Chain, he
emphasises, “The creation of Green
Supply Chains will depend heavily on the
swift development of road infrastructure,
which our Government is already working
towards. The need of the hour is to augment
the pace of this infrastructure development
to unforeseen levels, in order to achieve our
economic growth targets.”
CARGOTALK SEPTEMBER 2011 45

Guest Column
Expert Views
Warehouse
Management
Unfortunately, few companies
are fully meeting these
objectives. Research on
warehouse and distribution
center productivity suggests
that managers are under severe pressure
to reduce inventory and logistics costs,
to remain competitive, more effectively
manage labour costs and challenges,
Souma Das
support business growth, respond better
to demand/supply fluctuations, meet
customer demands for faster and more
time definite way.
To address these challenges, bestin-class
companies have invested in
advanced warehouse management
systems (WMSs) that automate and extend
their capabilities. Their new strengths
include warehousing/bin-level location
46 CARGOTALK SEPTEMBER 2011
A quest for the effective way
As markets globalise, change, accelerate and
customer expectations rise to new levels, the walls
of the warehouse are coming down. Now,
companies must manage extended supply chains
with increaed precision. They must gain clear
visibility into their warehouse inventories. Souma Das
management; paperless receiving; realtime
put-away; order picking with mobile
devices; and cycle counting. As a result,
top performers have enhanced customer
satisfaction and contained costs by
increasing accuracy rates, shipping order
rates, and perfect order rates to more than
99 per cent. They have decreased labour
costs year-over-year.
Barriers:
Customer demands are increasing.
They expect perfect order performance.
They expect the right product at the right
time and the right price. The pressure
is relentless. In order to achieve high
performance in warehouse management,
the industry must attain top levels in
today’s key metrics. On-time shipments;
order picking accuracy; annual workforce
turnover; fill rates – line-item level; fill
rates – order level, inventory capacity,
dock-to-stock cycle time and distribution
costs as a percentage of sales.
Warehouse and supply chain managers,
challenged to improve performance
on these measurements, confront three
key challenges:
Supply Chain Inefficiency:
Supply chain performance is suboptimal
when there is too much inventory
being carried, too many manual operations,
frequent imbalances between work
required and labour available, inefficient
direction of workers, and a lack of
finer-level visibility into shipments. Supply
chain inefficiency is also characterised
by the lack of visibility into the extended
supply chain, beyond the four walls of
the warehouse.
Order Inaccuracy:
As mass retailers and other large
customers increase their business
leverage, they push manufacturers
and distributors to meet increasingly
demanding specifications, requirements,
and mandates. Indeed, the perfect order
is now seen as one of the best barometers
of customer service. Unfortunately,
warehouses and distribution centers often
prove to be the weak link in the global
supply chain. When they lack visibility into
inventories and automated capabilities,
they are often unable to keep up with these
increasing demands.
Technology Infrastructure
Obsolescence:
In many companies, technology
platforms are aging and difficult to
maintain. These enterprises continue
writing custom codes to meet new
demands, driving up total cost of ownership
in the process. As companies begin to
upgrade their technology platforms or
create strategies for better integration of
disparate platforms, the odds are that their
WWW.CARGOTALK.IN

Guest Column
Expert Views
warehouse management applications will
need to be upgraded as well.
To address such challenges, best-inclass
companies have invested in advanced
WMSs. These organisations have realised
that such investments are critical if they
are to gain visibility into their warehouse
inventories and systematically automate
key functions.
Advanced WMS:
While warehouse management
applications of the past generally improved
the efficiency of operations within the
four walls of a warehouse, advanced
WMSs take organisational capabilities
to a new level. This new generation of
warehouse management applications
offers added functionality that positions
companies and their supply chain partners
to be more operationally efficient and
responsive to customer demand. It helps
companies maximise product placement
strategies, prioritise tasks, implement
fair productivity standards, and increase
logistics efficiency. Among the core
characteristics of this new breed of WMS
applications are as follows: Inventory
management, work and task management,
labour management, forecasting, crossdocking,
slotting, yard management, etc.
Leveraging such capabilities,
companies can become best-in-class
performers in distribution, warehouse,
and supply chain operations. The
potential benefits delivered by advanced
WMS are compelling.
Advanced solutions enable companies
to increase pick accuracy rates, shipping
order rates, and perfect order rates to more
than 99 per cent, eclipsing average and
laggard companies that lack relevant WMS
capabilities and perform at far lower rates.
Reduced
inventory and
logistics costs
In this case goods are held for less time
and move faster through warehouses and
distribution centers. As a result, carrying
costs are reduced. Cross docking and
48 CARGOTALK SEPTEMBER 2011
yard management capabilities help
firms avoid the time and expense of
put-away. Meanwhile, automation
reduces the costs of clerical activities and
administration labour.
Greater
responsiveness
As customer expectations rise, advanced
WMS enables firms to ensure that they
are delivering perfect order performance
while responding to growing demands
and specifications. Meanwhile, firms gain
better visibility, tracking, and traceability
capabilities to support the requirements
of various regulatory bodies. Such
capabilities are increasingly important
in terms of overall risk management and
brand protection.
Key questions:
“upgrade”
versus “rip and
replace”
If a company is now contemplating
an investment in advanced WMS, it may
be facing a critical decision. It may have
to choose whether to upgrade its existing
WMS system or “rip and replace” it to
obtain desired capabilities. Here are the
top questions to consider before making
a decision:
What industry best practices are
critical to profitable growth? To determine
whether to make an investment in WMS,
it is first necessary to recognise what
performance and capability gaps exist that
might undermine the company’s ability
to effectively compete. Does it need, for
instance, full visibility into warehouse
inventories? Does it need upstream and
downstream visibility going beyond the
four walls of the warehouse? Does it need
new labour management capabilities?
If the company identifies these gaps,
it is necessary to then ask—Does the
existing WMS system have the features
necessary to address the company’s
performance gaps? Does it, for instance,
provide such capabilities as labor
forecasting, slotting, and radio-frequency
identification (RFID) functionality?
In some cases, the existing software
may be adequate. The issue may simply
be that certain features or modules are
underused. If the existing capabilities
are adequate, then exploit them. If
not, then the next question is—can the
software provider deliver the features and
capabilities the company seeks.
While there is an argument for ripping
out the existing solution if a particular
technology is obsolete and will not be
supported going forward, the reality is
that most of the time rip and replace is
a more complex and risky endeavour
than it may seem at first. First, it turns
existing systems into stranded assets. Prior
investments in them must be written off
as one takes a new direction. Second,
there is the challenge of implementing
a new system with new requirements
and new interfaces. High learning curves
often can lead to project failure or
underutilisation. Finally, when companies
must revamp their infrastructure and
invest in a whole new approach, they run
the risk of reduced (or negative) ROI and
long payback periods.
Given the growing complexity of
today’s markets, the last thing managers
want to introduce to their companies is
more complexity and confusion. Most of
the time, it is easier to look for incremental
upgrades that can deliver new processes
and capabilities. This approach produces
clear business value and provides a
superior path to performance if the
company’s existing solution provider
can deliver the required capabilities
for best-in-class results. Unmistakably,
companies must now begin to
contemplate these key questions if they
hope to remain competitive in today’s
markets. They should investigate their
options. If incremental upgrades can put
them on the path to better warehousing
and distribution performance, then
stronger supply chains may be closer than
they think.
(Souma Das is VP sales and managing
director, Infor India. The company
makes business software For additional
information, visit www.infor.com)
WWW.CARGOTALK.IN

International News
Statistics
WORLD BANK’S LOGISTICS PERFORMANCE INDEX
COUNTRY COMPARISON
Int. Country LPI Customs Insfrastructure International Logistics Tracking Timeliness
LPI Shipments Quality and and
Rank
1 Germany 4.11 4 4.34 3.66 4.14 4.18 4.48
2 Singapore 4.09 4.02 4.22 3.86 4.12 4.15 4.23
3 Sweden ................................ 4.08 .........3.88 ............4.03 ........... 3.83 ..............4.22 ...........4.22 ...........4.32
4 Netherlands 4.07 3.98 4.25 3.61 4.15 4.12 4.41
5 Luxembourg 3.98 4.04 4.06 3.67 3.67 3.92 4.58
6 Switzerland 3.97 3.73 4.17 3.32 4.32 4.27 4.2
7 Japan 3.97 3.79 4.19 3.55 4 4.13 4.26
8 United Kingdom 3.95 3.74 3.95 3.66 3.92 4.13 4.37
9 Belgium ............................... 3.94 .........3.83 ............4.01 ........... 3.31 ..............4.13 ...........4.22 ...........4.29
10 Norway 3.93 3.86 4.22 3.35 3.85 4.1 4.35
11 Ireland 3.89 3.6 3.76 3.7 3.82 4.02 4.47
12 Finland 3.89 3.86 4.08 3.41 3.92 4.09 4.08
13 Hong Kong SAR, China 3.88 3.83 4 3.67 3.83 3.94 4.04
14 Canada 3.87 3.71 4.03 3.24 3.99 4.01 4.41
15 United States ........................ 3.86 .........3.68 ............4.15 ........... 3.21 ..............3.92 ...........4.17 ...........4.19
16 Denmark 3.85 3.58 3.99 3.46 3.83 3.94 4.38
17 France 3.84 3.63 4 3.3 3.87 4.01 4.37
18 Australia 3.84 3.68 3.78 3.78 3.77 3.87 4.16
19 Austria 3.76 3.49 3.68 3.78 3.7 3.83 4.08
20 Taiwan, China ...................... 3.71 .........3.35 ............3.62 ........... 3.64 ..............3.65 ...........4.04 ...........3.95
21 New Zealand 3.65 3.64 3.54 3.36 3.54 3.67 4.17
22 Italy 3.64 3.38 3.72 3.21 3.74 3.83 4.08
23 Korea, Rep. 3.64 3.33 3.62 3.47 3.64 3.83 3.97
24 United Arab Emirates 3.63 3.49 3.81 3.48 3.53 3.58 3.94
25 Spain 3.63 3.47 3.58 3.11 3.62 3.96 4.12
26 Czech Republic .................... 3.51 .........3.31 ............3.25 ........... 3.42 ..............3.27 .............3.6 ...........4.16
27 China 3.49 3.16 3.54 3.31 3.49 3.55 3.91
28 South Africa 3.46 3.22 3.42 3.26 3.59 3.73 3.57
29 Malaysia 3.44 3.11 3.5 3.5 3.34 3.32 3.86
30 Poland 3.44 3.12 2.98 3.22 3.26 3.45 4.52
31 Israel 3.41 3.12 3.6 3.17 3.5 3.39 3.77
32 Bahrain ............................... 3.37 .........3.05 ...........3.36 .......... 3.05 .............3.36 ..........3.63 ..........3.85
33 Lebanon 3.34 3.27 3.05 2.87 3.73 3.16 3.97
34 Portugal 3.34 3.31 3.17 3.02 3.31 3.38 3.84
35 Thailand 3.29 3.02 3.16 3.27 3.16 3.41 3.73
36 Kuwait 3.28 3.03 3.33 3.12 3.11 3.44 3.7
37 Latvia .................................. 3.25 .........2.94 ...........2.88 .......... 3.38 .............2.96 ..........3.55 ..........3.72
38 Slovak Republic 3.24 2.79 3 3.05 3.15 3.54 3.92
39 Turkey 3.22 2.82 3.08 3.15 3.23 3.09 3.94
40 Saudi Arabia 3.22 2.91 3.27 2.8 3.33 3.32 3.78
41 Brazil 3.2 2.37 3.1 2.91 3.3 3.42 4.14
42 Iceland 3.2 3.22 3.33 3.1 3.14 3.14 3.27
43 Estonia ................................ 3.16 .........3.14 ...........2.75 .......... 3.17 .............3.17 ..........2.95 ..........3.68
44 Philippines 3.14 2.67 2.57 3.4 2.95 3.29 3.83
45 Lithuania 3.13 2.79 2.72 3.19 2.85 3.27 3.92
46 Cyprus 3.13 2.92 2.94 3.13 2.82 3.51 3.44
47 India 3.12 2.7 2.91 3.13 3.16 3.14 3.61
48 Argentina 3.1 2.63 2.75 3.15 3.03 3.15 3.82
49 Chile .................................. 3.09 .........2.93 ...........2.86 .......... 2.74 .............2.94 ..........3.33 ............3.8
50 Mexico 3.05 2.55 2.95 2.83 3.04 3.28 3.66
51 Panama 3.02 2.76 2.63 2.87 2.83 3.26 3.76
(Source: CII Institute of Logistics and Amarthi Consulting Report)
CARGOTALK SEPTEMBER 2011 49

Shipping News
Event Update
DP WORLD’S ICTT IN COCHIN RECEIVES
LARGEST CONTAINER VESSEL
Recently, Cochin’s International Container Transhipment Terminal (ICTT),
which is operated by DP World, witnessed the berthing of the largest
ever container vessel to call a South Indian port – Maersk Sembawang
of Maersk Line. The Singaporean flagged vessel Maersk Sembawang
has a length of 319 metres and with a capacity of 6478 TEU is also
the largest Maersk Line Vessel to call in India. The previous largest
Transpole Group organises Customers Meet
50 CARGOTALK SEPTEMBER 2011
container ship to call South Indian ports was also a Maersk Line vessel,
the Maersk Kalamata at Chennai port (length of 303.83 metres, capacity
of 6,416 TEUs).
Commenting on the occasion Anil Singh, senior vice president &
managing director, DP World Subcontinent said, “The ICTT with its
crucial location in the subcontinent is fast emerging as one of the
important catalyst to India’s growing trade.”
According to KK Krishnadas, chief executive officer, DP World Cochin,
Maersk Line’s decision to bring the Maersk Sembawang to Cochin
reflects the growing faith of global shipping lines in the potential of the
infrastructure we have built in Cochin.
“This is an important milestone for us in Cochin Port, and endorses our
capability to handle large mainline container vessels with the highest
productivity standards,” he added.
ICTT is equipped with four super post-panamax twin lift quay cranes, 15
rubber-tired gantry cranes, 600 meters of quay length and dedicated rail
connectivity with hinterland destinations. Connecting key south Indian
markets like Bangalore, Coimbatore, Tirupur and Salem, the port has
convenient access through rail, road and sea to important south India
ports like Tuticorin and Mangalore.
Recently, Transpole Group
organised its first Customers
Meet in Chennai. The event was
well-attended by its customers,
shipping lines, Airports Authority
of India officials and several other
dignitaries from the logistics
industry. Transpole, a growing
logistics service provider, has
its offices across India and
in Singapore, Malaysia, Korea
and Hong Kong.
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Family Album
Club Function
52 CARGOTALK SEPTEMBER 2011
Air Cargo Club of Delhi
GETS NEW MANAGING COMMITTEE
The AGM of the ACCD has elected
the new managing committee for
the year 2011-12. Sunil Kohli
re-elected as president. Other office
bearers are J.P.Singh, vice president;
Yashpal Sharma, hon. secretary and
Ravinder Katyal, Treasurer.
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Family Album
Club Function
54 CARGOTALK SEPTEMBER 2011
Richard Theknath
ELECTED AS PRESIDENT, ACCB
The Air Cargo Club of Bombay (ACCB) recently elected its new managing committee
for the year 2011-12 with Richard Theknath, president; Clifton Fernandes,
vice president; Gopal Devadiga, secretary
and HS Arora, Treasurer.
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Family Album
Airlines & Logistics
American Airlines organises
EDUCATIONAL TRIPS TO CHICAGO
Recently, American Airlines organised an educational trips to Chicago for its top customers.
During the tours the customers also visited AA Cargo facility at Chicago Airport.
An evening with
DAMCO INDIA’S NORTH INDIA CUSTOMERS
56 CARGOTALK SEPTEMBER 2011
Damco India organised a
meet to honour its North India
customers on 26 July 2011 in
New Delhi. The company also
introduced Damco’s global
CEO, Rolf Habben-Jansen.
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Study & Survey
Market Trends
Indian companies
increases import
from Europe to offset losses
It is pertinent to mention that
the bilateral trade figures that
stand at over USD 67 billion,
makes Europe India’s largest
and most important trading
partner globally. The current economic
situation, though resulting in number of
procedural and regulatory obstacles for
Indian companies to expand and or do
business in the continent, still provides for
needed returns on the investments made
and business relationships forged in the
years to come.
58 CARGOTALK SEPTEMBER 2011
A recent survey by FICCI on “Current Economic
Scenario in Europe and its Impact on Indian
Industry” apprehends an adverse effect on India’s
business prospect. As the industry has seen a
downturn, they have ventured out for exploring
new markets. CT Bureau
EU clearly represents a large consumer
base (close to 500 million potential
consumers) if the entire bloc of 27 countries
is considered to be a single market. Its
economic, trade and investment policies
generally welcome foreign investment
traditionally viewing it as a means to
promote employment and capital formation.
Against the backdrop of the current
economic slowdown, FICCI conducted a
survey among Indian companies that are
doing business and or have invested in
Europe in the past to assess the impact of
the current economic turmoil on Indian
companies with reference to their business
interests and investments made there.
Survey Findings
On the current economic crisis in
Greece, Spain, Ireland, Portugal and
now in Italy, there has been absolute
unanimity in the surveyed companies that
the ongoing crisis is the manifestation of
larger issues and economic ills plaguing the
European economies today. 53 per cent of
the companies have said that the ongoing
crisis has already resulted in their business
prospect in the region adversely impacted.
The concern point is that over 75
per cent of the surveyed companies have
quoted a loss of 10-15 per cent in terms
of business generation from the European
region. Over 30 per cent of the Indian
companies surveyed have already begun
to look beyond Europe. They have begun
to gradually look for greener pastures in
African countries, Middle East, South Asia
and even in North America.
To maximize their benefits and to
alleviate their business losses in terms of
reduced demands in European markets,
Indian manufacturers are aggressively
pursuing new business plans. This includes
increased imports of high-end machinery
and technology from Europe due to
highly competitive prices being offered by
European exporters.
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