E-freight in India - Cargo Talk

Cargotalk
Vol XI No. 11
Pages 56
Rupees 50
cargotalk.in
A DDP Publication
OCTOBER 2011
SOUTH ASIA’S LEADING CARGO MONTHLY
No.1 in Circulation & Readership
E-freight in India
Emirates plans 100 per cent
e-shipments soon
ACAAI raises voice
on cargo handling procedures in
Mumbai International Airport
Toll and Capacity
Constraints
Major concerns for Rail and
Road Transport

DEPARTMENTS
4 CARGOTALK OCTOBER 2011
Airlines News
Emirates SkyCargo: Mission to
achieve a truly green supply chain
Finnair Cargo has started freighter
services to Mumbai
On the Move
Emirates SkyCargo: SD Prabhu
appointed as Cargo
Manager, Maharashtra
TNT Express India: Carry Power
takes over as Managing Director
Trade Associations
DACAAI expresses concern on
reducing profitability and
increasing airport charges
ACAAI and BCHAA collaborate to
resolve issues at Mumbai Airport
Customs House Agents gearing
up to fulfill logistics services
Indian Infrastructure
Summit by FICCI
International Airport
Dusseldorf International
Airport, Germany: New trade
lane in the making
Cargo Performance
Airline wise exim cargo
upliftment from and to Delhi
Airport in August 2011
Airline wise exim cargo upliftment
from and to Mumbai Airport in
August 2011
Airport wise domestic
cargo performance from
April to June 2011
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32
34
35
36
contents
October 2011
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Terminal News
DIAL Cargo certificates for 38
underprivileged trainees
Family Album
Glimpses of FFFAI Biennial 44
Convention 2011
Air Cargo Club of Delhi hosts lunch
to discuss Mystic Science
All India Motor Transport
Congress meets in Hubli for
interactions with members
COVER STORY
South African Airways
Cargo’s new
international flights
Calendar of Events
Calendar of International Events
Toll and capacity constraints: The areas of
major contentions
The surface transport industry consisting of rail and road modes
of transport, is the lifeline of domestic freight movement in India
as well as exim cargo for offering connectivity to and from
sea ports/airports. The industry is under duress owing to
capacity constraint, inconsistency in government policies and
economic pressures on it. An industry perspective.
6 CARGOTALK OCTOBER 2011
COLUMNS
47
48
International News
Emirates SkyCargo starts 50
freighter service to
Far East and Australia
50
52
Exclusive Interview
Explore new markets, accept 26
challenges: Raajeev Bhatnagar
Face of the Month
Ajay Chopra: Working for 28
Indian Logistics; primary focus
on qualitative improvement
Guest Column
From Globalisation to 54
‘Glocalisation’
contents
October 2011
20
Opinion
Fault lines in the
surface transport
The surface transport mode including road and rail
transport networks are in critical state. Despite the two
prime modes playing the main role for transporting
freight in the domestic as well exim sectors, the existing
infrastructure and policies may derail the country from
its growth trail. The national highways occupy only 2 per
cent of total road network, though they take the load of 40
per cent of cargo transported through roads. At present,
there are about 20,000 km of national highways which
have only a single lane.
Significantly, the government of India’s contract awards
exceeded about 4,800 km in the last financial year, and it
is well poised to award of 7,300 km this year, to fulfill its
ambition to build 20 km a day.
Question remains. Will the infrastructure building exercise
yield any benefits to the industry and end users? The speed
of the trucks cannot be assured only through ambitious
road/highway projects. Meanwhile, the bottlenecks like
check posts for collecting Toll has created commotions
among truck owners. Tax apart, other hassles at the check
posts also became the bone of contention.
Private container train operators, on the other hand, are
in disarray because of the arbitrary decisions of the Indian
Railways on frequent increase of haulage and terminal
charges. Congestions at the railway tracks and terminals
are also hampering the growth of the private players.
The targeted GDP growth, which is 9 per cent per annum
for the five year period 2012-13 to 2016-17, is achievable
when the cargo traffic through surface network (including
road and rail) is streamlined by eliminating the ‘fault lines’.
Will the authorities concerned be rational to address the
burning issues?
Rupali Narasimhan
Editor
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Airlines News
New Initiatives and Launches
Emirates SkyCargo:
TKeki Patel
he average air freight
shipment generates up to 30
different paper documents
resulting in increasing the cost
of air freight and lengthening
transport times. On the other hand, the
benefits of e-freight include faster supply
chain transit times, lower cost, regulatory
compliance, environment friendly, better
tracking of the shipment, greater accuracy,
increased security, etc.
E-freight initiative has been taken up
as a high priority by airlines globally. IATA
has estimated that about $4.9 billion of
industry savings could be generated and
about 7,800 tonnes of paper documents
eliminated annually using the e-freight
8 CARGOTALK OCTOBER 2011
Mission to achieve a truly
green supply chain
Supporting IATA’s e-freight initiative, Emirates
SkyCargo recently launched the service in India
and aims to soon become 100 per cent e-freight
operator. Keki Patel, Cargo Manager – India and
Nepal, Emirates spoke about future plans. Anita Jain
corridor.Emirates SkyCargo partnered
with DHL Global to propel its e-freight
initiative across its network including
India. Currently, the e-freight service is
available in Mumbai, New Delhi, Kolkata
and Bengaluru with additional six cities
soon to be added.
With this, the airline is currently handling
5 per cent of its total cargo in e-freight
system from India. “Through our e-freight
service, our partners have experienced
an enhanced booking experience with
more reliability, efficiency, cost and time
saving,” informed Patel. However, to fasten
the implementation of e-freight in India
more carriers, freight forwarders, ground
handlers, shippers, other stake holders and
Finnair Cargo
started allcargo
flights to
Mumbai in cooperation
with
Nordic Global
Airlines from
September 16.
The The new service
between Hel
sinki, Finland and Mumbai is operated once a week on Fridays with
MD-11F aircraft. Commenting on the new launch, Pertti Mero, Vice
President, Global Sales, Finnair Cargo said, “We have achieved recognition
among our cargo customers in India and Europe for Finnair’s daily
government agencies should get involved.
Air Cargo Agents Association of India
launched its own electronic collaboration
platform for Indian logistics industry –
‘UPLIFT’ is one of the steps towards greener
future of cargo industry.
“With booming Indian economy and
mission for greener business, we intend to
double the e-freight usage during 2011-12.
By carrying a freight of 1.76 million tonnes
during 2009-10, Emirates has become
the number one cargo operator in India
and are aiming to hold on the rank in the
current fiscal as well,” added Patel. He
also informed that about 70 per cent of the
airline’s business comes from Mumbai, New
Delhi and Chennai.
FINNAIR CARGO HAS STARTED FREIGHTER
SERVICES TO MUMBAI
passenger flight service (with belly-hold cargo capacity) to Delhi. The
new freighter services offer fast connections between India and Northern
Europe.” According to him, there is a great demand from customers
for cargo capacity especially between Nordic Countries and Mumbai.
“This is in line with Finnair Cargo’s vision to be number one in the Nordic
countries and to be the most desired option in transit traffic between
Asia and Europe. According to our plans North America and India will
be a natural expansion direction”, added Antero J. Lahtinen, Senior Vice
President of the airline.
Finnair Cargo is a minority shareholder in Nordic Global Airlines, a new
all-cargo airline based in Helsinki. NGA started commercial operations
in August 2011. In addition to Finnair’s 11 passenger flight destinations
in Asia and USA, currently Finnair Cargo provides freighter service to
and from Frankfurt, Hong Kong, New York, Seoul and Shanghai.
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On the Move
Airlines and Express Cargo
SD Prabhu
Gerry Power
10 CARGOTALK OCTOBER 2011
SD Prabhu CARGO MANAGER
EMIRATES SKYCARGO MAHARASHTRA
Emirates SkyCargo has recently appointed SD Prabhu as the Cargo Manager Maharashtra and Goa
region. Prabhu brings with him 25-years of industry experience with Kuwait Airways, Air Canada and
Korean Air in India as well as Emirates Airline in Dubai. He has worked in different capacities such
as customer services, freight forwarding, ground handling and cargo revenue optimisation before
joining the Emirates team in Mumbai in August 2011.
Prabhu was among the first batch of Emirates managers to graduate and awarded the
Emirates Management Diploma in January 2011 from the Emirates Aviation College in Dubai.
Prabhu was also felicitated with the ‘Silver Mabrouk Award’ 1998, for his dedicated efforts to
begin cargo operations in Malta.
Gerry Power MANAGING DIRECTOR
TNT EXPRESS INDIA
TNT Express appointed Gerry Power as its Managing Director for India with effect from August 1,
2011. In this role, Gerry is responsible for driving business growth and profitability for TNT Express
India’s operations. Based in TNT India’s head office in Bengaluru, Gerry will report to TNT Asia Pacific
Managing Director Michael Drake.
Gerry began his career with TNT Express in 1985 and has risen through the ranks over his 26-year
career with the company. Prior to his current appointment, Gerry was the Managing Director of TNT
Malaysia (and Brunei), Vietnam and Indochina. He was also the Regional Operations Manager for TNT
in Asia. Gerry has held several senior management positions in UK, Amsterdam, Europe and Asia,
giving him a broad experience across the business.
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Trade Associations
Domestic Air Cargo
DACAAI expresses
concern
on reducing profitability
and increasing airport charges
Speaking to Cargotalk, Amit
Bajaj, Managing Committee
member, Domestic Cargo
Agents Association of India
(DACAAI) explained that
industrial production had lowered to
3 per cent in July and the automobiles
sector was in slump. The domestic air
UNIFORMITY OF TAXES REQUIRED
movement has seen a 10 per cent drop
post June. This has put heavy pressure on
the profitability and revenues of agents
and the airlines.
On the other hand, the private
airports have been improved in terms
of the infrastructure and the handling
charges resulting in additional pressure
on shippers. Previously handling charges
were absorbed by the airlines. Now these
are being passed on to the consumer at
12 CARGOTALK OCTOBER 2011
According to the AAI statistics, in the first 3 months
of the current financial year domestic cargo traffic
has shown a slowdown (4 per cent) as compared to
the same period in 2010-11. Freight forwarders are
in tremendous pressure due to the decline in
profits and increasing costs. Ratan Kr Paul
very high rates. This has resulted in the
reduction in tonnage for cargo being sent
by air for short haul sectors.
In addition, in most of the cases the
cargo acceptance godowns of the airlines
are outside the airport (towards the city),
resulting in early cut-off for outbound
According to DACAAI, the service tax charged on movement of cargo on
airport to airport basis should be the same, as in case of road transportation.
This will reduce cost thus increase tonnage.
TDS is another area of displeasure. The TDS deduction on the agents’
earnings happens in two folds. At the time of the receiving the payments,
which is two per cent of the gross collections and on commissions that
agents get from airlines (10 per sent of the amount received). This creates
heavy shortage of working capital. “For air cargo agents community the
government should remove the condition of TDS deduction on commissions,”
appealed Bajaj.
cargo due to unnecessary transportation
of cargo from the point of acceptance to
the airport. Furthermore, incoming cargo
is delivered at the parking lots as airlines
have not been allocated adequate space at
airport, making cargo prone to pilferage
and shortage.
In Bajaj’s opinion, for smooth, time and
cost effective operations airlines should be
allocated space inside the airport and the
sanitized area should have an entry to the
tarmac. This would help in delayed cut-off
for outbound consignments and faster and
secure delivery of inbound consignments.
“The airlines should be allocated
spaces to handle cargo themselves and an
option for common user terminal should
be given. This will reduce the exorbitant
Amit Bajaj
charges, being charged by the terminal
operators who have monopoly at
some stations. Bajaj emphasised on the
long standing demand of cargo villages
near the metro airports, like the Delhi
Airport. “There has to be a legally
dedicated area where godowns and
offices of cargo agents can be located,” he
said. At present the office and godowns
are scattered around the airport on
unauthorised locations causing security
risk and traffic congestions.
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Trade Associations
International Air Cargo
ACAAI and BCHAA
collaborate
Welcoming the media
Bharat Thakkar,
Vice President,
ACAAI maintained
though GVK-MIAL
took over ACC (Mumbai) from Airport
Authority of India in the year 2006, the
cargo handling services has not been
improved. Since 2006 there has been an
increase in the volume of cargo.
However, there is no improvement
in the infrastructure, manpower and
equipment. This has resulted in delay
in entry of vehicles at ACC; delay in
flight checking and segregation after
landing; non-traceability of packages;
no accountability of available packages
and no immediate plans to decongest
the facility. Damage to packages due to
mishandling and improper storage; acute
shortage of truck docks in exports; lack
of adequate manpower and equipment
and lack of space resulting in accidents
involving CHA boys and Customs staff
are also the other serious issues that are
creating hassles in cargo handling at the
airport. This is also due to inadequately
trained operators.
According to Nailesh Gandhi, President
BCHAA, there is a serious security hazard
prevailing at this airport. In the absence
of CCTV Cameras, cargo is stored on the
tarmac and is not secured properly. In
addition to this heavy rains and pilferage
14 CARGOTALK OCTOBER 2011
Recently the Air Cargo Agents Association of India
(ACAAI) along with Bombay Customs House
Agents Association (BCHAA) and several other
trade associations organised a press meet on
foreign trade suffering at Air Cargo Complex
(ACC) Mumbai due to inadequate infrastructure
and services provided by Mumbai Airport. CT Bureau
cause losses in crores. There is no separate
provision for hazardous cargo resulting in
risk for human life. He also maintained
that the ACC is an accident prone area
without any controls on forklift operators.
“It takes more than half a day or in certain
cases more than one day to trace cargo
causing demurrage which starts from the
time cargo arrives at the Mumbai Airport,”
said Gandhi.
The ACAAI leaders also criticised the
method of calculating demurrage period
(earlier it was 5-3 days, now it is 5-2 days)
thus benefiting the cargo custodian. They
informed that the situation remained the
same even after the visit of Alok Sinha,
Joint Secretary, Ministry of Civil Aviation.
Amit Goyal, Chairman western region,
FIEO, stated that due to the connectivity
to resolve issues at
Mumbai Airport
of Mumbai Airport, lot of major MNCs
operating in Maharashtra and close
by states prefer Mumbai as a landing
point. Unfortunately, despite the increase
in volume of import and export cargo,
it is not going to benefit the trade or
its clients in the long run. Many shipments
due to non-traceability, cargo damage
and additional waiting period at Mumbai
airport causes huge financial losses to
the shippers.
Trends show that in certain cases there
is a possibility of choosing a different
airport as a landing option rather than
Mumbai airport. This has resulted in order
cancellations and loss in business.
Mark Fernandes, Chairman of
shipping and aviation committee, IMC,
pointed out, “There is an old saying that
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cargo never makes noise but the passenger
makes which means that there is a huge
difference between a cargo terminal and
passenger terminal infrastructure. In
spite of having a 100 per cent growth in
cargo business there are very few changes
experienced at the Mumbai Airport Cargo
Terminal.” Underlining the delay in the
clearance of cargo, he said, “The time to
receive overseas cargo, for instance from
UK, London, takes 8 hrs and from USA
it takes 18 hrs, but the moment it lands
at Mumbai Airport, it takes around 3-4
working days for hand over.
According to R.Radha Krishnan
from Western India Shippers Association,
the PPP model, which is supposed to
be an efficient way to serve in general
public, has a lacuna in its functionality
and profit sharing in the case of aviation
sector. “The dynamics of the PPP has been
incorrectly interpreted and in the end it
is showing as a monopolistic area where
there is no other way, the trade will bend
accordingly,” he argued.
Pramod Sant from CII (Import Exim
Panel) pointed out the importance of fast
and efficient clearance of air cargo. “The
preference is still given to move cargo
by air rather than by sea because of its
time sensitivity. The money involved in
transferring goods or material via air
cargo is almost 20 times more than the
sea freight,” he said. In his opinion, air
cargo handling can be done smoothly by
making its process simple.
At this meet the trade associations
announced that they would organise a joint
delegation to the Ministry of Commerce, Civil
Aviation and Finance, Government of India
with an appeal to resolve the issues for the
greater interest of the country’s economy.
CARGOTALK OCTOBER 2011 15

Trade Associations
FFFAI Convention Report
Customs House Agents
gearing up to fulfill logistics services
With the theme of
the convention
‘CHA- Beyond
Customs Emergent
Global Logistician’,
the FFFAI Convention witnessed huge
enthusiasm for searching of new avenues
for business. According to the resolutions
passed at the convention, FFFAI shall
endeavour to augment the transformation
of CHA to a global logistician by imparting
advanced professional training to the
fraternity covering all aspects of logistics.
FFFAI shall also enhance the
professionalism of the members to meet
Raman Raj Sud
16 CARGOTALK OCTOBER 2011
The 20 th Biennial Convention of the Federation of
Freight Forwarders’ Associations in India (FFFAI),
which was held from August 25 to 27 in Udaipur has
adopted some pragmatic resolutions for the
greater interest of Customs House Agents (CHAs)
and freight forwarders across the country. The
FFFAI Convention was attended by about 250
delegates and several eminent speakers (CHAs)
from 20 cities in India. Ratan Kr Paul
Shreeji Arvind Singh Mewar inaugurating the FFFAI Convention
emergent challenges. FFFAI further
resolves to thoroughly examine the new
developments such as self assessment,
KYC and AEO. After the study, FFFAI will
take the findings to the government and all
other stakeholders for representations that
are necessary for protecting the interests
of the trade, in general and CHAs in
particular. The member associations of
FFFAI will work for increased awareness
amongst CHAs.
FFFAI will also work towards
safeguarding CHA members’ interests in
the changing scenarios of self assessment,
KYC and AEO. FFFAI has decided to
pursue with the government to get industry
status for the CHA business.
Earlier, welcoming the delegates,
Guest of Honour Shreeji Arvind Singh
Mewar, Chairman, HRH Group of Hotels
and other guest speakers, Raman Raj Sud,
Chairman, FFFAI emphasised the role
of CHAs and freight forwarders in the
development of India’s economy. He said,
“It would be fair today to acknowledge
the Freight Forwarders’ Association in
the context of the Indian growth story.
On the global front, India has arrived
and now globalisation has paved the way
for ‘glocalisation’, where large global
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Trade Associations
FFFAI Convention Report
corporations alter themselves to fit the
thinking, culture, and practices of the
location where they are doing business.
India too is home to such adaptation, and
thus the role of CHA here has only grown
exponentially in importance.”
Highlighting the changing scenario
Sud maintained that AEO (Authorised
Economic Operator) has become a reality
now. Self assessment and KYC (Know Your
Clients) are sweeping changes.
According to him, the need for
competent, resourceful and easily
accessible local service providers is
necessary. And preparing these local
providers to think ‘glocally’ has become
inevitable. Adaptation, innovation and
overall ability in thinking and execution
are the key to narrowing borders, initiating
change and promoting growth.
In his keynote address G Raghuram,
Professor, IIM Ahmedabad, highlighted
that India’s international trade growth has
been at around 15 per cent, though only 16
per cent of GDP and a little over 1 per cent
of world trade. Many growing countries
do better. “Our competitive advantage
in international trade is compromised,
among a few factors, due to transaction
costs,” he said.
Raghuram also underlined some facts
that cause havoc to Indian exporters.
He pointed out that of the total exports
of $200 billion, transaction costs were
18 CARGOTALK OCTOBER 2011
Samir J Shah
$13 - $15 billion. According to him, of
this, $6 billion are ‘addressable’, due
to excessive regulations, compliance,
certification and delays. In 2009, $100
billion of value were ‘liner’ goods.
Average cost per container on account of
transaction cost to an exporter was $945
in India, whereas it was $625 in Vietnam,
$460 in China and $450 in Malaysia.
The exorbitant costs for a container
movement from India includes time and
cost elements for document preparation,
customs clearance, ports and terminal
handling and inland transportation and
handling. India ranks 94 out of 183
countries in trading across borders.
He appealed the government to develop
infrastructure, facilitate industry-friendly
laws and taxation and put focus on supply
chain (cluster focus).
Emphasising the changing role
of a CHA and freight forwarder (from
customs broker to freight forwarder and
from freight forwarder to freight logistics
player) Rahuram suggested, “Determine
the importance of your role in the overall
supply chain of your customers. Identify
the important factors of your service
affecting your customers and customers’
customers.Work in coordination with your
customers, thereby reducing costs and
improving value. Information technology
is a big help here.”
The FFFAI convention had seven
business sessions which were addressed by
Shantanu Bhadkamkar, Vice Chairman,
FFFAI, CP Talresa, President, Udaipur
Chamber of Commerce and Industry,
Nailesh Gandhi, President, Bombay
Customs House Agents’ Association,
J.Krishnan, the then President of Air Cargo
Agents Association of India, Premkumar,
Group Managing Director and CEO,
Uniworld Logistics, S. Xaviers Britto,
Managing Director, Indev Logistics, Sanjay
Khanna, CEO, Celebi, Praful Talera,
Managing Director, Dynamic Logistics, Raj
Khalid, Representative, Port of Antwerp,
D.S Jha, Convenor, FFFAI Convention
2011, Sumeet Nadkar, Executive
Director, Kale Logistics,Debashish Dutta,
Vice Chairman, FFFAI,Samir J.Shah,
Chairman, Business Session, FFFAI
Convention 2011, SK Goel, Member,
CBEC, Atul Dikshit, Additional Director
General, CBEC and Raghu Shankar,
General Manger, International Clearing
and Shipping Agency.
Major Concerns
At this Convention FFFAI has raised
some questions before the Member
Customs, CBEC. Highlights of those
questions are:
• Anti-dumping notification is
issued with a time frame. However, after
the expiry of the relevant date there is a
investigation period of 6-12 months
• In last one year Government
has brought in many changes like KYC
norms and self assessment and proposed
AEO. CHAs now have responsibilities
identity to Customs officers. However,
treatment meted out during processing
and investigation is different between
officers and CHAs
• All ICDs are working 6 days a
week for all functions including assessment.
• The ports should also work
for assessments on all 6 days instead of
present 5 days a week
• CBEC have introduced Version
1.5 of ICEGATE all over India. There
were many problems noticed and resolved
during the implementation at various
centres. Till date the systems are not
working satisfactory and all stakeholders
including Customs officers are unhappy
working on the system
• IGM are not reflected at the ICD
custom centre under 1.5 EDI system. This
is despite the carrier or his agent holding
a valid number of filing. The Bill of Entry
is thus not accepted by the system, as
the IGM has not been generated into the
system
• Slowness of ICEGATE: Under
version 1.5 it takes hours to complete
simple jobs like filling of Bills of Entry
• In view of the large number
of ICD’s / CFS’s and new ports being
developed large number of Central Excise
officers get posted to customs.
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Cover Story
Rail and Road Transport
Toll and capacity
constraints:
India’s 75 lakh truckers (largely
unorganised) are in serious trouble
now. There are about 20 lakh
National Permit vehicles and 40
lakh vehicles running between
the states, across the country round the
clock. The pressure on the truckers are
caused by several factors that include the
recent increase of Third Party Insurance
Premium (by 68 per cent), the cost of
Tyres from April 2011 (by 70 per cent),
labour charges (by 75 per cent), spares
and lubricants (by 30 per cent) and Toll
tax (by 200 per cent).
20 CARGOTALK OCTOBER 2011
The areas of major
contentions
The surface transport industry consisting of rail
and road modes of transport, is the lifeline of
domestic freight movement in India as well as
exim cargo for offering connectivity to and from
seaports/airports. The industry is under duress
owing to capacity constraint, inconsistency in
government policies and economic pressures on it.
An industry perspective. Ratan Kr Paul
GR Shanmugappa RC Dubey
GR Shanmugappa, President, All
India Motor Transport Congress (AIMTC),
however, showed serious concerns over
the burden of Toll. “Toll policies that are
non-uniform, not transparent and not
friendly for the road users are being
practised across different Toll Plazas/
States across the country, wherein
the collection of Toll is highly underreported,”
said Shanmugapp.
According to him, the private road
builders and private Toll collectors are
reaping the benefit as the increase in Toll
charges are linked with WPI (Wholesale
Price Index), a policy that is logically
flawed. There are 268 Toll barriers on
National Highways in the country and the
revenue collection on these toll barriers
WWW.CARGOTALK.IN

during the last three years was `2699.83
crore (2008-2009); `4151.31 crore
(2009-2010) and `5516.05 crore (2010-
2011) respectively. For the government
to accomplish its zealous target of 20 km
a day or `10,000 crore of Toll revenue,
in the next four years, it will have to
incorporate prudent policy changes for
seamless growth of the road sector in
India,” he said.
In a recent letter to Dr. Manmohan
Singh, Prime Minister, Government of
Budh Prakash
India, AIMTC appealed to take some
pragmatic initiatives as a respite to the
truckers, from day to day hardships, at the
Toll Plazas across the country.
Shanmugappa argues that if their
recommendations are followed, the
government will get more revenue than
at present, even if all other road users
are allowed Toll free movement on the
Highways. In addition, it will help in
seamless transportation and result in
savingus both diesel and time. It will also
reduce the need for drivers to carry cashin-hand
en-route and thus ease pricing
pressure on the trucking industry.
“This will also increase the average
trip of truck, from 250 km per day to 400
km per day, resulting in robust and timely
transportation of goods and material and
avoiding unnecessary inventories and
delays,” he added.
In his opinion, reduction of Toll
hassles will allow barrier free movement
of National Permit Vehicles, on the lines
of ‘Green Channel’ facility. Dedicated
lanes may be allocated for free movement
of commercial vehicles, at all Toll
Plazas having the Smart Card or National
Toll Permit.
Plight of Private
Container Train
Operators
The Indian Railways had decided to
invite private companies to run container
trains to enhance service quality and
competiveness in order to benefit end
users. However, after about three years,
it seems the Ministry of Railways still has
to go a long way to attain its goal. The
ground reality remains the same, with
respect to traffic congestions and unfair
costing imposed on the private players.
Haulage charges, for instance, have
become one of the most critical areas
that need to be addressed, at the earliest,
to streamline both domestic and exim
cargo movement by railways, which is less
than 30 per cent of total cargo movement
in the country.
CARGOTALK OCTOBER 2011 21

Cover Story
Rail and Road Transport
AIMTC’S RECOMMENDATIONS ON TOLL
The Toll charges to be collected annually in advance to curb rampant
corruption/leakages at the Toll Plazas
There should be a Toll Permit Scheme on the lines of New National Permit
Scheme, on per annum per vehicle basis, which will allow all National
Permit vehicles to move freely across the Toll plazas throughout the
country, without stopping to pay Toll
The Toll revenue will increase yearly due to increase in the annual vehicle
population that is increasing at the rate of 22 per cent, every year, on an
average. AIMTC recommends that Government increase the Toll Permit
Fees at the rate of 5 per cent every year
Haulage charge is the fee
charged to private container trains
operators for availing rail lines
and signalling systems of the railways.
According to the industry estimates, the
haulage charge constitutes70-75 of their
operating costs.
According to RC Dubey, President,
Association of Container Train Operators
(ACTO), the aim of privatisation of
railways was to increase the volume of
railway freight with quality services.
Unfortunately, frequent increase of
haulage charge made a dent in the
confidence level of the private operators,
who are currently 14 in number.
22 CARGOTALK OCTOBER 2011
On the other hand, huge congestion
at the railway tracks and terminals
results in low performance of the private
players. Currently, private operators are
enjoying 20 per cent market share of total
containerised traffic. Rest is captured by
PSU company—CONCOR.
He, however, expressed high optimism
about the future of private companies, in
view of the Dedicated Freight Corridors
being built in the near future. He
also appealed to the Indian Railways
to allow the private operators to use
Railways’ terminals, sheds and premises
for loading and unloading purposes, with
rational charges.
Vineet Agarwal
Dubey also emphasised on the
transparency and consistency on the
policies of the Ministry of Railways. “We
are disappointed with the restrictions
imposed on us, as regard to carriage of
commodities. We are allowed to carry only
certain commodities, which is not liberal
in nature. There is also restriction about
the number of containers and wagons
that can be carried by us (the maximum
number is 45),” underlined Dubey. He
also expressed serious concerns about the
proposed policy of introducing’Special
Freight Train Operators’.“It would
jeopardy the future of private container
train operators, who have invested heavily
after signing the agreement with the Indian
Railways. The policy will create unhealthy
competition in the market, because of a
mismatch between demand and supply i.e
over capacity in the market,” he argued.
The ACTO president also emphasised
on the value addition, by the private
operators, to thrive and compete with
other mode of transport. “We should
go beyond terminal services. We should
tie-up with logistics companies to offer
complete and door-to-door services, in
the days to come,” he observed. Dubey
is confident that ACTO members will be
able to double their market share within
the next two years, provided the existing
issues are addressed appropriately by the
respective authorities.
Common Issues
Budh Prakash, Managing Director,
Kutch Railway Company Limited
expressed optimism on surface network
as a whole. “No doubt, rail and road
WWW.CARGOTALK.IN

Cover Story
Rail and Road Transport
transports are playing the most important
role in transporting goods and cargo
in India. In my opinion, both these sectors
are not expanding at the desired pace.
Both these sectors require continuous
expansion and maintenance of the already
created assets. I consider the condition
is not satisfactory in both the sectors,”
he said.
According to Budh Prakash, the road
and rail transport both have bottlenecks.
In case of road, there are barriers at state
boundaries and unsatisfactory conditions
of the roads, shortage of skilled staff
in maintaining and manning the road
vehicles. In case of rail transport in most
of the cases the service is not door to door.
Also rail sector is suffering due to resources
crunch and the capacity enhancement
is not satisfactory. “The Public Private
Partnership (PPP) for mobilising all
financial resources has not taken off in
the rail sector,” he viewed.
In his opinion, for making rail
transport much better, there is an urgent
need of heavy investment in capacity
enhancement and development of logistic
parks. For this purpose there is need for
more dialogue between the private sector
and the Government. PPP is the need of
hour; earlier the better.
24 CARGOTALK OCTOBER 2011
Kutch Rail’s attempt is to provide
hassle-free rail connectivity to Mundra
and Kandla Ports. The company is making
attempts to remain ahead of the demand.
Making a comparison Vineet Agarwal,
Joint MD, Transport Corporation of India,
highlighted that India has the second
largest road network in the world but
National Highways constitute only 2
per cent of the total road network in the
country. In India, roads account for 65 per
cent of the freight traffic while the railways
serve the remaining 35 per cent.
According to him, growth in road
lengths has not been commensurate with
the growth in freight and vehicle traffic
resulting in congestion and excessive
burden on the existing infrastructure.
A joint study report by TCI and IIMC,
conducted in 2009, to assess the operational
efficiencies of the National Highways for
freight transport, show that one of the
biggest impediments has been delays at
check posts and on-road, for filling in
forms required by various government
departments, checking and scrutiny of
documents and physical checking of the
vehicles, drivers and consignment by RTO
and Traffic police and collecting highway
toll and taxes.
“A unified tax system such as the GST
will enable creation of a common market
thus permitting free and unimpeded
movement of goods and services across
the country,” Agarwal feels.
On the other hand, the present rail
network is not adequate as compared
to the burgeoning rail freight business,
which leads to limited focus on the freight
business of railways. Also, there is a
shortage of wagons and rakes.
The share of railways in cargo
transportation has reduced over the years
with the spread of road network. Railways
today are unable to cope up with the traffic
growth of the growing economy.
He, however, appreciated that the
government has recognised the importance
of involving private sector in the
modernisation of the national highways
and has engaged them through concession
agreements for various projects in different
parts of the country. He also commended
the DFC project of the Government.
Agarwal is of the view that the need
of the hour is transportation corridors
and linear infrastructure facilities. With
the GST on the cards, arrangements like
Logistics Park and FTWZs, that would
be built along the corridors, would not
only help companies consolidate their
already scattered storage locations but
also improve the service level considerably,
due to reduction in custom clearance time
and better logistics connectivity.
“There is a need for the railways to
improve in terms of tonnage, net tonkilometres,
line capacity and locomotive
capacity. With high-powered fast
locomotives plying in the freight corridor
and handling of goods for loading
mechanised, onward distribution along
the corridor’s major stations is needed in
order to make it more efficient,” he added.
TCI is one of the few private
sector companies in the country to pr
ovide total integrated Multi modal
Transport Solutions. It is a logistic service
provider for rail and road and also leases
out Special trains for parcels and VPH for
specific customers.
WWW.CARGOTALK.IN

Logistics Services
Exclusive Interview
Explore new markets,
accept challenges
For Bhatnagar last 20 years
have been a great experience
and especially with UTi,
the experience was quite
diverse. “After having joined
the company when it was on downhill
in India, working towards building the
trajectory and achieving the scale, what
we did was and is unprecedented. No one
expected UTi to build the scale to what it
did but I must say that it was driven with
very clear plan which was detailed very
extensively. For me it was a very satisfying
experience,” he said.
When asked on the urgency for a new
venture Bhatnagar was quick to reply,
“Every journey has a life cycle and when
one peaks, it is important to move on to
reinvent and recharged. It gives him a fair
chance to explore, deploy all his learning’s
of year.”
He refrained from unveiling the details
of his next venture. “I have few options
in front. But the most compelling one is
to build a start up,” he said. However he
clarified his inclination, “As one does feel
that this trade has a strong future in the
coming years and logistics will be the key to
India’s growth story in coming decades, it
will be unique to be a part of an endeavour
- to build an Indian MultiNational
26 CARGOTALK OCTOBER 2011
says Raajeev Bhatnagar
After working with leading logistics company
UTi for more than a decade and heading the
company’s Indian operations, Raajeev Bhatnagar
is now exploring new ventures. Speaking
exclusively to Cargotalk, he shared his thoughts
on shaping up a strong Indian logistics company
to offer services to domestic as well as
international markets. Ratan Kr Paul
Raajeev Bhatnagar
company from ground zero.” Commenting
on the future of Indian logistics companies,
Bhatnagar foresees huge opportunity, with
the country providing an atmosphere very
similar to logistics revolution in Europe
and USA about 10-12 years back.
In his opinion, there (Europe
and USA) logistics companies and
buyers went through a major change in
terms of mindset, expectations and
deliverables that changed the landscape
of this business.
Bhatnagar also shared his ideas about
the lacunas where companies build specific
skill sets catering to specific needs of
industries, but fail to integrate them at
operating level. “I would like to focus on
integrated company, eventually. And the
start will be from freight forwarding and
contract logistics solutions.”
According to Bhatnagar, India is
increasingly moving to the centre of
universe from the business point of view.
All global players want to be a part of India
and in good amount.
He observed, “If Indian companies play
their game well they will be setting the tone
for future. Indian companies are doing well
globally in space of IT, pharma, telecom,
steel, etc then why not logistics? Its possible
and there is big room for it. I think if we
bring Global thinking to local working then
we will be setting new standards.”
He further underlined that India is the
only country besides China which is posting
over 6-7 per cent growth, year on year
(conservatively). “Infrastructure is getting
better, GST is round the corner and retail
boom is on an upward swing. Rural India
wants to be part of Urban India action and
internet continues to build awareness. With
all this happening, Indian logistics industry
has great future. I also think, it will not be
long when Government will give its due to
trade by giving it the industry recognition,”
Bharnagar concluded.
WWW.CARGOTALK.IN

Face of the Month
Ajay Chopra-DIESL
Working for Indian
Logistics
Ajay Chopra is recognised
in the logistics industry
for establishing its first
home grown quality model
and also for his focus to
make the industry more and more process
driven. He has been working on creating a
common and cohesive face for the logistics
players in the Indian market and has been
on the forefront of establishing logistics as
an industry.
He started his career as a CA but over
the years Chopra has been involved in
setting up and managing organisations
in diverse areas. Today he is presented
as a logistics expert in various forums.
28 CARGOTALK OCTOBER 2011
Primary focus on
qualitative improvement
Ajay Chopra, CEO, Drive India Enterprise Solutions
Limited (DIESL), is a chartered accountant by
qualification. He has a keen interest in Supply Chain
Management and Logistics and has been working in
the industry for over 20 years now. Ratan Kr Paul
“The only strategy that I have deployed
is to give my best to every challenge in
hand and try and enjoy the work to the
maximum. I believe if one can enjoy what
one is doing or is responsible for then it no
longer is stressful or a burden to execute,”
Chopra added.
Prior to joining DIESL, Ajay Chopra
has worked with organisations like
Amway’s, IndoMobil, RPG-Group and
Pearl Pet and has been involved in creating
and establishing process driven and
system backed operations in the areas of
Commercial, Supply Chain and start up
ventures. In his present role, Chopra’s
major focus is to create a world-class
Ajay Chopra
and an immensely competitive logistics
service organisation with proven focus on
WWW.CARGOTALK.IN

Face of the Month
Ajay Chopra-DIESL
customer services. “We had established
DIESL initially to manage trading and
logistics for a group company. In time, we
also developed capabilities so as to offer
our logistics services to companies outside
the fold and hence established ourselves
as an integrated logistics service provider.
It was the right move at the right time,”
said Chopra.
Chopra believes that India’s growing
footprints on the world map, primarily
after liberalisation have positively altered
its economic landscape by opening up
a number of avenues for progress and
development. “Logistics industry, still
in its nascent stages in India is a sunrise
sector full of opportunities. There are
not many organised LSPs (Logistics
Service Providers) in India and there is
enough business for everyone, without
eating into each other’s pie,” he viewed.
Chopra underlined the fact that the Indian
logistics industry is growing at 14 per
cent, vis-à-vis the average world logistics
industry growth of 9 per cent. And, since
the organised sector accounts for merely
4 per cent of the annual logistics cost,
there is immense potential for growth of
the sector.
He observed that Indian companies on
an average outsource approximately 52
per cent of their overall transportation and
logistics activities. But the trend is changing
with many more companies leaning
towards 3PL (Third Party Logistics)
models, as they seek to optimise costs and
focus on their core businesses. “This is
a catalyst for consolidation and growth
opportunities for organised players. As
more multinational companies and LSPs
are increasing their scale of operations in
India, there is a rising demand for worldclass
logistics infrastructure and services,
even among domestic corporates,” Chopra
argued. Moreover, regulatory changes
like the GST, government incentives to
investors and operators in the form of tax
breaks, the privatisation of the container
rail segment, PPP are driving private
participation and efficiency improvements.
He also highlighted some startling facts:
the Indian government has earmarked
`50,000 Bn in 12 th Five Year Plan, for
infrastructure investment. Planned
expenditure on transport infrastructure is
30 CARGOTALK OCTOBER 2011
expected to be about `12,416 Bn in 12th Five Year Plan (2012 – 17). Assuming the
split remains similar to the 11th Five Year
Plan, it would amount to `6,493 Bn in
roads, `4,679 Bn in railways, `955 Bn
in ports and `859 Bn in airports. “Good
things are happening for this industry.
We just need to focus on delivering quality
services, benchmarking ourselves with
the best globally and to be able to make
use of the opportunities coming our way,”
he suggested.
The Challenges he
Foresees
According to Chopra, in spite of
strong and sustainable growth drivers,
India is yet to achieve a level of logistics
sophistication comparable to its economic
strength and potential. India is usually
placed unfavourably in comparison to
other global economies on the parameters
of logistics efficiency and cost. In India,
lack of efficient alternatives to the roads
for long hauls, poor road infrastructure
resulting in low average speed, significant
cess and tolls, higher rate of damage, etc
contribute to this unfavorable rating. “We
also have a very skewed modal mix with
road freight having the majority share;
and the railways and waterways are not
exploited to their fullest potential,” Chopra
maintained. These challenges are further
magnified by the fact that the sector is
highly fragmented with several small and
middle size players serving small regions,
with few assets and services. Capabilities
for end to end management of logistics
services by 3PL, is another challenge area.
Lack of skilled manpower for this sector is
another serious concern.
Beyond Business
“Books have been a constant companion
in recent years and have played a major
role in my growth as an individual both
in personal and professional capacity,”
he shared.
A family man and an avid photographer,
Chopra also shares a passion for Ghazals
and cricket. Chopra wants to be seen as
a reasonable and trustworthy personsomeone
who is conscious of his role
related to industry issues. He has been
HIS RECOMMENDATIONS
Regulatory changes - a
complete and honest
implementation of GST and
other accompanied reforms
are important. Anything less or
partial will probably harm more
than it would benefit
Complete abolishment of entry
forms and controls across states
in the country
Removal of hidden costs and
inefficient legacy systems of
Octroi and Cess, etc
Effective answer to the toll charges
impact on the freight costs
Creation of one regulatory body,
at government level, to address
all issues of the logistics industry
Solving the infrastructure issues
of power and roads
actively involved in reading various
papers and study lectures at national and
international logistics forums. A recipient
of the ‘CEO of the Year Award’ 2009, he
is engaged in community programmes for
the transport fraternity, with an aim to
create awareness about road safety and
health and education.
In this highly fragmented industry,
Chopra has played an instrumental role
to create a united front – a body that
can push for the interests of the Indian
logistics industry. DIESL along with
some other organisations launched IILF
in May 2011. “IILF will be the unifying
platform, a chief trade association, a
communication channel and a chamber
of commerce for the Indian supply-chain
and logistics industry,” he informed.
DIESL’s chief objectives is to encourage
and further the education and research in
the industry, CSR, Green Logistics, and
representation of the industry’s interests
to the Government of India and to the
national and international organisations.
DIESL also has a CSR arm called ‘Prayaas’
through which it endeavours to benefit the
backbone of the logistics industry – the
truck driver community.
WWW.CARGOTALK.IN

International Airport
Trade Opportunities
Düsseldorf International
Airport, Germany
New trade lane in the making
Currently, the on airport
cargo capacity is 140,000
tonne per annum. At the
moment there are no
direct flights to India
out of Düsseldorf. However, Düsseldorf
catchment area is a high potential market
for Indian carriers who want to open a new
route into Europe. Its direct catchment
area is about 100km around Düsseldorf
and in this radius more than 18 million
people are living.
In the same radius, there are more than
100 Indian companies having their offices.
There are more than 5,000 international
companies in this area. More than 148
million people are living in a radius of
500km, which is a one-day truck drive
from Düsseldorf, which is also close to the
Benelux borders. At this Dutch border there
are a large number of distribution centers
of well-known international companies.
All these aspects are very important for
import shipments from the far East and
India. Düsseldorf is a very high potential
consumer and logistics market.
Düsseldorf is the capital of the Federal
State of North-Rhine Westphalia, which is
produces 20 per cent of the whole German
export volume. Major companies have
their manufacturing around the city and
there are thousands of small and medium
sized manufacturing companies. Often
32 CARGOTALK OCTOBER 2011
Düsseldorf International Airport is the third biggest
airport in Germany, passenger wise and placed
sixth in cargo ranking. There are two cargo
terminals here. Gerton Hulsman, Managing
Director, Düsseldorf International Airport, provides
details about ensuing business opportunities for
Indian companies. Ratan Kr Paul
these companies are global leaders in
their industry. Their products are pure
air freight in most cases. “Please bear in
mind that you will reach all the cities in
the Benelux in a couple of hours, which
enlarges the potential of this region,”
highlighted Gerton.
Connectivity
Düsseldorf is regularly served by
around 80 international airlines, providing
around 185 worldwide destinations on the
passenger side. Full-Freighter business is
only 10 per cent of the total cargo volume.
At the moment, Düsseldorf is served by
only one all-cargo airline on a regular
basis. In addition, there are several charter
companies using Düsseldorf for regular
freighter operations.
“Our target is to attract some more
freighter business to reach a share of 20-25
per cent of cargo tonnage,” said Gerton.
As of now, Düsseldorf Airport does not
have any facilities similar to the “cargo
village.” It has one cargo-center where a
number of forwarders, GSSAs and airlines,
customs, veterinary inspection, etc. have
their offices.
Connected to that is the airport’s
warehouse (12.650 m²). Next to this
facility lies a second, smaller warehouse
of another handling company.
Gerton Hulsman
Düsseldorf is trying to attract Indian
Carriers, to operate directly between
Düsseldorf and an Indian airport and they
try to attract carriers from the far East, to
operate to Düsseldorf with an operational
stop in India. The focus is not only on
airports like Mumbai and Delhi, but also
secondary airports.
Talks are on with Indian carriers
to open up such routes. “We are visiting
India maybe in February 2012, for
marketing purpose,” shared Gerton.
The Duesseldorf forwarder community
believes that great demand for air cargo
capacity, connecting DUS with mainly
Mumbai, exists. “We are keen to attract
carriers to start business flows between
our two markets,” he reiterated.
WWW.CARGOTALK.IN

Cargo Performance
Import / Export
S. No. Airlines
34 CARGOTALK OCTOBER 2011
DELHI INTERNATIONAL AIRPORT CARGO DEPARTMENT,
IGI AIRPORT, NEW DELHI
(AIRLINE-WISE IMPORT/EXPORT CARGO PERFORMANCE
FOR THE MONTH OF AUGUST 2011)
Export(MTs)
Export
Perishable
Cargo (MTs)
Export
(with Peri.)
(UPL)(MTs)
Import
Total
Cargo
%
of Total
1 Cathay Pacific 924 1 924 1806 2730 9%
2 Emirates 484 1629 2113 567 2681 9%
3 Jet Airways......................................998 .................203 ................ 1201 ...............1275 .................2476 ................ 8%
4 British Airways 1004 64 1068 811 1879 6%
5 Air India 536 247 783 650 1434 5%
6 Lufthansa Cargo Airline 471 27 498 756 1254 4%
7 Kingfisher Airlines Ltd. 441 40 481 559 1040 4%
8 Singapore Airlines ..........................461 .................. 21 .................. 482 .................549 .................1030 ................ 3%
9 Fedex Express Corpation 695 9 704 312 1016 3%
10 Thai Airways 265 15 280 707 987 3%
11 Etihad Airways 321 98 419 378 797 3%
12 Aerologic 498 2 500 258 758 3%
13 Qatar Airways .................................288 .................212 .................. 501 .................222 ...................722 ................ 2%
14 KLM 377 87 464 225 689 2%
15 Swiss World Cargo(India) 355 17 371 263 634 2%
16 Turkish Airlines 383 12 395 223 618 2%
17 Malaysian Airline System 264 66 330 264 594 2%
18 Uzbekistan ......................................308 .................. 38 .................. 347 .................208 ...................555 ................ 2%
19 Air France 279 70 350 165 514 2%
20 Virgin Atlantic 322 4 326 188 514 2%
21 Finnair 304 36 340 151 491 2%
22 Air Asiax 188 2 190 212 402 1%
23 Austrian Airlines .............................188 .................. 19 .................. 206 .................141 ...................348 ................ 1%
24 Saudia 249 85 335 10 345 1%
25 American Airlines Cargo 190 1 191 123 314 1%
26 Aeroflot Cargo Airlines 215 19 234 40 275 1%
27 China Eastern Airlines 82 1 83 156 239 1%
28 Japan Airlines ...................................69 .................... 2 .................... 70 .................141 ...................211 ................ 1%
29 China Air 79 1 80 113 193 1%
30 Air China 72 1 73 112 185 1%
31 Continental Airlines 116 1 117 57 173 1%
32 Royal Jordanian Airlines 46 105 151 9 160 1%
33 Gulf Air .............................................92 .................. 33 .................. 124 .................... 2 ...................127 ................ 0%
34 Blue Dart 117 0 117 3 120 0%
35 Ariana Afghan Airlines 68 0 68 43 111 0%
36 Asiana Airlines 24 0 24 84 109 0%
37 Air Mauritius 50 42 91 2 94 0%
38 Ethopean Airlines .............................40 .................... 7 .................... 47 .................. 46 .....................93 ................ 0%
39 Eva Air 27 0 27 65 92 0%
40 Mahan Air 63 5 68 5 72 0%
41 Aerosvit 39 18 57 12 69 0%
42 Oman Air 48 3 51 1 52 0%
43 Air Astana .........................................41 .................... 1 .................... 42 .................... 4 .....................47 ................ 0%
44 Air Arabia 43 1 44 1 46 0%
45 Pakistan International 19 0 19 25 44 0%
46 Sri Lankan Airlines Ltd 29 0 29 9 38 0%
47 China Southern Airlines 4 0 4 26 30 0%
48 Jetlite ................................................19 .................... 1 .................... 21 .................... 6 .....................27 ................ 0%
49 Turkmenisthan Airlines 17 4 21 1 22 0%
50 Kuwait Airlines 1 2 3 3 6 0%
51 Druk Air 2 0 2 0 2 0%
52 Royal Nepal Airlines .......................... 0 .................... 0 ......................0 .................... 2 ...................... 2 ................ 0%
53 Deccan Express Log 0 0 0 0 0 0%
54 Indian Airlines 0 0 0 0 0 0%
55 MIS 800 25 825 1151 1976 7%
Total 13015 3275 16290 13144 29434 100%
Cargo handled in August ‘10 16093 3040 19133 14554 33687
% VARIATION 7.75% -14.85% -9.69% -14.45% 100.00%
## 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 AUGUST 2011
Export
General
Export
Perishable
WEIGHT IN TONNES
Total
Export
Import
(Including TP Cargo)
Total
Exp+Imp
1 Jet Airways 1445.56 816.45 2262.01 2270.57 4532.57
2 Emirates 1419.79 1321.18 2740.97 1118.06 3859.03
3 Air India .................................... 1135.45 ........... 1272.27 ........... 2407.71 .............. 903.08 ...........3310.79
4 Lufthansa 676.36 427.59 1103.95 2153.29 3257.23
5 Cathay Pacific 908.53 27.46 935.99 1843.16 2779.15
6 Singapore Airlines 565.54 241.85 807.39 964.10 1771.49
7 British Airways 686.90 386.83 1073.73 467.57 1541.30
8 Kingfisher Airlines ...................... 567.87 .................0.93 ............. 568.80 .............. 950.37 ...........1519.18
9 Air Cargo Germany 14.96 0.00 14.96 1079.18 1094.14
10 Etihad Airways 519.17 26.43 545.60 527.37 1072.97
11 Federal Express 429.26 196.86 626.12 443.30 1069.42
12 Qatar Airways 343.22 269.78 613.00 377.27 990.27
13 Thai Airways ............................... 254.03 ...............18.96 ............. 272.99 .............. 586.03 .............859.02
14 Swiss Intl. Airlines 277.94 190.46 468.40 388.35 856.76
15 Ethopian Airlines 668.17 9.13 677.30 16.24 693.54
16 Turkish Airlines 428.20 10.85 439.05 232.02 671.07
17 Air France 235.44 95.71 331.15 252.43 583.58
18 Saudi Arabian Airlines ................ 329.15 ............. 143.23 ............. 472.38 ................ 21.57 .............493.95
19 Malaysian Airlines 268.44 24.85 293.29 195.06 488.35
20 UPS 77.50 0.00 77.50 392.82 470.32
21 Korean Air 305.33 0.75 306.08 71.78 377.86
22 Kenya Airways 345.94 1.87 347.81 11.23 359.03
23 Delta Airlines/KLM ...................... 128.13 ...............15.76 ............. 143.89 .............. 155.50 .............299.39
24 Kuwait Airways 96.93 158.36 255.29 20.95 276.24
25 Austrian Airlines 0.00 0.00 0.00 270.74 270.74
26 Qantas 95.32 20.09 115.41 143.93 259.34
27 South African Airlines 235.70 7.03 242.73 11.57 254.30
28 Airasia 133.35 0.00 133.35 79.90 213.26
29 Charters ..........................................0.00 .................0.00 ................. 0.00 .............. 209.13 .............209.13
30 Gulf Air 100.21 97.52 197.73 2.71 200.44
31 Continental Airlines 66.85 0.00 66.85 78.88 145.72
32 Air Mauritius 127.59 7.29 134.88 5.04 139.92
33 Oman Air 89.97 44.73 134.70 3.40 138.10
34 EL-AL Airlines ............................... 75.34 .................0.04 ............... 75.38 ................ 55.69 .............131.07
35 Air Arabia 62.12 40.79 102.91 3.25 106.16
36 Blue Dart 26.29 0.00 26.29 76.38 102.68
37 Jade Cargo 0.00 0.00 0.00 74.75 74.75
38 Srilankan Air ................................. 54.06 .................2.69 ............... 56.75 ................ 16.74 ...............73.48
39 Pakistan Airways 36.44 7.75 44.19 20.71 64.90
40 Iran Air 30.46 2.37 32.83 0.90 33.73
41 Egypt Air 25.38 0.00 25.38 0.36 25.74
42 Yemenia Airways ........................... 11.87 .................7.32 ............... 19.19 .................. 0.04 ...............19.23
43 Royal Jordanian Airways 10.68 0.00 10.68 1.35 12.03
44 NorthWest Airlines 0.00 4.10 4.10 0.00 4.10
45 Others 59.08 23.78 82.86 123.66 206.52
GRAND TOTAL 13368.50 5923.06 19291.56 16620.42 35911.97
EXPORT/IMPORT CARGO TONNAGE HANDLED
IN JULY 2011
Cargo Handled in July ’11 14659.25 5581.81 20241.06 16367.60 36608.66
CARGOTALK OCTOBER 2011 35

Cargo Performance
Domestic Cargo
36 CARGOTALK OCTOBER 2011
TRAFFIC STATISTICS
DOMESTIC FREIGHT
S. No. Airport
June
2011
For the Month
June
2010
Freight (in Tonnes)
For the period April to June
%
Change 2011-12 2010-11
%
Change
(A) 11 International Airports
1 Chennai 7639 7745 -1.4 21604 22515 -4.0
2 Kolkata 6699 6226 7.6 20421 19236 6.2
3 Ahmedabad 1192 1184 0.7 3437 3469 -0.9
4 Goa 287 298 -3.7 848 925 -8.3
5 Trivandrum 144 113 27.4 411 389 5.7
6 Calicut 16 29 -44.8 64 116 -44.8
7 Guwahati 718 755 -4.9 2244 2542 -11.7
8 Jaipur 544 598 -9.0 1763 1879 -6.2
9 Srinagar 298 226 31.9 664 521 27.4
10 Amritsar 9 6 50.0 27 26 3.8
11 Portblair 120 151 -20.5 464 446 4.0
Total 17666 17331 1.9 51947 52064 -0.2
(B) 6 JV International Airports
12 Delhi (DIAL) 12179 16891 -27.9 41944 48324 -13.2
13 Mumbai (MIAL) 16160 16277 -0.7 48725 47703 2.1
14 Bangalore (BIAL) 7002 6870 1.9 20499 21291 -3.7
15 Hyderabad (GHIAL) 2972 3015 -1.4 8622 8572 0.6
16 Cochin (CIAL) 694 705 -1.6 2207 2110 4.6
17 Nagpur (MIPL) 304 1114 -72.7 1154 2787 -58.6
Total 39311 44872 -12.4 123151 130787 -5.8
(C) 9 Custom Airports
18 Pune 1513 2293 -34.0 5648 6881 -17.9
19 Lucknow 304 287 5.9 908 783 16.0
20 Coimbatore 733 481 52.4 1820 1361 33.7
21 Mangalore 19 28 -32.1 66 88 -25.0
22 Trichy 0 0 - 0 0 -
23 Patna 310 266 16.5 822 707 16.3
24 Bagdogra 110 80 37.5 302 240 25.8
25 Varanasi 20 34 -41.2 83 78 6.4
26 Gaya 0 0 - 0 0 -
Total 3009 3469 -13.3 9649 10138 -4.8
(D) 20 Domestic Airports
27 Bhubaneswar 196 198 -1.0 621 539 15.2
28 Indore 401 495 -19.0 1083 1487 -27.2
29 Visakhapatnam 159 93 71.0 349 266 31.2
30 Jammu 63 94 -33.0 243 327 -25.7
31 Vadodara 152 153 -0.7 492 517 -4.8
32 Agaratala 582 490 18.8 1567 1461 7.3
33 Chandigarh 144 17 747.1 270 52 419.2
34 Raipur 218 203 7.4 628 465 35.1
35 Imphal 452 563 -19.7 1338 1484 -9.8
36 Madurai 61 52 17.3 180 137 31.4
37 Udaipur 0 0 - 0 0 -
38 Ranchi 142 88 61.4 402 242 66.1
39 Bhopal 72 94 -23.4 208 242 -14.0
40 Leh 101 99 2.0 471 321 46.7
41 Aurangabad 104 161 -35.4 347 432 -19.7
42 Rajkot 55 83 -33.7 161 207 -22.2
43 Dibrugarh 21 19 10.5 84 69 21.7
44 Tirupati 5 2 150.0 10 5 100.0
45 Silchar 29 29 0.0 90 109 -17.4
46 Juhu 28 29 -3.4 89 87 2.3
Total 2985 2962 0.8 8633 8449 2.2
(E) Other Airports 77 68 13.2 257 212 21.2
Grand Total 63048 68702 -8.2 193637 201650 -4.0
(A+B+C+D+E)
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Terminal News
Corporate Social Responsibilities
DIAL Cargo
certificates
GMRVF is a Section 25
(non-profit) company.
It is governed by a board
headed by GM Rao,
the Group Chairman,
GMR Group. Its thrust areas are:
education, health, hygiene and sanitation;
to empower and provide livelihood for
DIAL officials and industry practitioners at the Valedictory Ceremony
unemployed and drop-out youths of under
privileged class.
The foundation has its own professional
team, with resources drawn from top
academic and social work institutions
across the country. GMRVF works for
less privileged sections of the community
around all GMR Group businesses.
The Delhi training centre was
inaugurated in September 2009 and
is presently functioning from the
accommodation provided by Delhi
38 CARGOTALK OCTOBER 2011
for underprivileged
trainees
GMR Varalakshmi Foundation (GMRVF), the
Corporate Social Responsibility arm of the GMR
Group, recently organised a Valedictory
Ceremony to present certificates to the pass-outs
of the foundation’s training course. CT Bureau
International Airport (DIAL) near Terminal
3 of IGI Airport. Since its inception the
institute has trained and placed more than
450 youngsters, till March 2011.
The institute provides vocational skills
training in basic computer,refrigeration
and air conditioning, basic electrical,
DTH (Direct to Home) and airport
systems apart from training in cargo
handling. There is a huge demand for
the jobs in the sectors of cargo
management, airport terminal operations
and maintenance.
The GMRVF Delhi team did an
assessment to understand this skills gap
which helped the team to understand the
specific skills required for these jobs. The
‘Vocational Training for Cargo Helpers/
Cargo Assistants’ was developed as a result
of this assessment.
The Vocational
Training
The training content has been designed
on the basis of the inputs provided by the
cargo industry experts, airlines, terminal
operators and air cargo handlers. The
training includes theoretical and practical
training on all the aspects of handling and
processing of import and export cargo
by air.
The trainees are additionally trained in
basic computer skills, spoken English and
groomed with personality development
classes. The trainees also undergo a special
practical cargo handling training at the
DIAL Cargo Terminal of IGI Airport, for
15 days.The training is for a period of
two months. The trainees are selected on
the basis of a rigorous selection process.
They mostly belong to the underprivileged
section of the society and are usually the
ones who have cleared 12 th standard, which
is the minimum educational qualification
required for this training.
On the occasion of the Valedictory
Ceremony, I.Prabhakara Rao, CEO, DIAL
said, “India is facing a huge gap in the
demand of skilled/semi-skilled workforce
and its supply for almost all the sectors
including airport sub-sectors. Arranging
such a course for the youth is a novel
initiative taken by GMRVF and DIAL
Cargo, which will not only support but
empower the youth in the communities
near the airport.”
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Trade Associations
Industry Events
India Infrastructure
Summit by FICCI
A
ddressing a huge
number of delegates
who attended the India
Infrastructure Summit,
Singh unequivocally
stated that the terms of service delivery
be clearly defined so that it is amenable
to government scrutiny just as in the case
of public sector projects. “It should be
logical to open the private sector projects
to government scrutiny in terms of
assessing the performance parameters, so
Montek Singh Ahluwalia addressing India Infrastructure Summit 2011
40 CARGOTALK OCTOBER 2011
emphasises on achieveing one
trillion dollar investment dream
Speaking at the India Infrastructure Summit,
which was hosted by FICCI on September 15 in
New Delhi, Montek Singh Ahluwalia, Deputy
Chairman of the Planning Commission, has
called upon the private corporate sector to honour
its assurance of performance in undertaking
infrastructure projects. CT Bureau
that infrastructure projects do not suffer
from time and cost overruns and ensure
that public interest is not compromised in
any way,” he said.
He also highlighted that during the
12 th Plan (2012-17), almost 50 per cent of
the spending on infrastructure would have
to come from the private sector. “While
public sector investment would increase in
absolute terms during the five year period,
this would essentially be channelised into
areas such as rural roads and railways
to improve transport connectivity to
the remotest parts of the country,”
Ahluwalia added.
Currently the Planning Commission
is undertaking detailed exercises to sort
out issues related to land acquisition,
environmental and forest clearances and
inter-sectoral linkages. These will be part
of the operational details currently being
worked upon and would be built into the
final plan document that will be ready by
the end of the current financial year.
The Summit was also addressed
by BK Chaturvedi, Member, Planning
Commission. In his address, Chaturvedi
undelined the challenges confronting
each segment of the infrastructure sector.
He also highlighted the opportunities for
private sector participation in achieving the
US$1 trillion investment in infrastructure
in the 12 th Plan period.
Rajat Gupta, Director, McKinsey &
Company, FICCI’s knowledge partner
for the Summit, pointed out the key
imperatives for the infrastructure sector.
He stressed the need for allocating funds for
prioritised projects, crafting right projects
for faster, better and more PPPs, site-
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Trade Associations
Industry Events
pecific project financing, daily monitoring
of project activity, efficient project
management, creation of a systematic
project review mechanism and institution
building to strengthen the capabilities of
the infrastructure provider.
New Integrated
Transport Policy
on the anvil
The Government is working on a
new transport policy that would integrate
all modes of transport in a bid to moderate
prices and facilitate the movement
and supplies of goods seamlessly
throughout the country, informed
BN Puri, Member Secretary, National
Transport Development Policy
Committee, while speaking at the FICCI’s
Infrastructure Summit.
Speaking at the Session on ‘Policy
and Regulatory framework for PPP’, Puri
stated that at present the country does
not have a viable transport policy and the
existing one was outmoded and out of tune
for the requirements of a modern economy.
The transport policy framework, he
said, would delve into all aspects of the
implementation mechanism.
Puri’s statement assumes importance
in view of the urgent need to reduce the
high transportation costs in the country.
At present freight cost in India is almost
three times that of China.
The session was also addressed
by K Mohandas, Secretary, Ministry
of Shipping. He maintained that the
ministry is seriously looking to address
issues pertaining to mechanisation of
cargo handling, hinterland connectivity
and improving cost efficiencies in the
ports sector.
Mohandas agreed that there is a
clear consensus that the PPP is the most
effective model of funding. In the current
year the ministry has already identified
23 projects with an investment of `16,
`700 crore with a capacity of 232 million
tonnes. Further, he expected the ministry
to come out with the Coastal Shipping
Policy in the next two months.
42 CARGOTALK OCTOBER 2011
In this session, Yashwant Bhave,
Chairperson, Airports Economic
Regulatory Authority of India said that
the primary objective of the airport
sector is financial viability. He said that
the authority presently is working on an
approach paper which focusses on ensuring
‘fair rate of return’ on equity based on
capital asset pricing model, which is the
way to make PPP framework viable.
In his speech Raghav Chandra, Joint
Secretary, Ministry of Road Transport and
Highways said that India’s PPP model
is one of the most successful one in the
world. However he highlighted the
significant infrastructure deficit that
persists in the country and India still has
a long way to go.
For example, he noted that in India the
National Highways constitute only about 2
per cent of the total road network, while it
carries 40 per cent of the traffic. Chandra
added that the success of the PPP model
lies in the monitoring of projects in order
to keep the interest of stakeholders alive.
In the session ‘Financing
Infrastructure’, S K Goel, Chairman and
MD, IIFCL, said that his organisation
is aware of the gap in the infrastructure
finance deficit and the need to look at the
alternative sources other than commercial
banks. He informed that IIFCL is focussing
on the deepening of the bond market
and proposes to focus on credit enhancing.
IIFCL is also making efforts to offer partial
guarantee of 25-50 per cent face value of
the bond to good infrastructure developers.
Sanjay Palve, Group President and
Senior MD- Corporate Finance, YES
bank, infrastructure banking partner of
the Summit, noted that at a saving rate of
33.2 per cent there is no dearth of money
in India. The question to be addressed
is how and who should channelize these
funds into infrastructure projects.
He added that the nature of financing
required by infrastructure sector is very
different and the commercial banks
alone are not really geared to meet this
requirement. There is a need for the
government to woo other sources as
well. For this the development of the
bond market with credit enhancement
mechanism and giving priority lending
sector status to infrastructure is called for.
Manash Mitra, MD, Nomura
Infrastructure Investment Advisors Private
Limited highlighted the need to give special
attention to the bond market to attract
long term capital. He said infrastructure
is a very good asset class and can attract
a lot of investment interest. However, a
lot of regulatory hurdles continue to
persist which need to be addressed on a
priority basis.
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Family Album
FFFAI Convention
FFFAI Biennial Convention 2011
MEMBERS EXCHANGE IDEAS ON NEW AVENUES
The members of Federation
of Freight Forwarders
Associations in India
appeared to be cheered after
hearing the speakers at the
business sessions. Evening
programmes were full of
entertainment with musical
performances that
mesmerized the delegates
till the wee hours.
44 CARGOTALK OCTOBER 2011
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CARGOTALK OCTOBER 2011 45

Family Album
FFFAI Convention
46 CARGOTALK OCTOBER 2011
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Family Album
Club Function
Air Cargo Club of Delhi
HOSTS LUNCH TO DISCUSS MYSTIC SCIENCE
The Air Cargo Club of Delhi recently
organised a luncheon meet at Crown
Plaza hotel in Gurgaon. PP. Rtn.
Manav Chawla was present on the
occasion as Guest Speaker to talk on
Mystic Science. A large number of
club members attended the event.
CARGOTALK OCTOBER 2011 47

Family Album
Industry Meet
All India Motor Transport Congress
MEETS IN HUBLI FOR INTERACTIONS WITH MEMBERS
The AIMTC recently had its 187th Managing Committee Meeting in Hubli, Karnataka, where all
the members of SIMTA and KFLOA gathered. SZMTWA and KSLOAA also organised a
conference on this occasion. G. R. Shanmugappa, President, AIMTC, Vijay Sankeshwar,
Chairman, VRL Logistics and other industry leaders were present at the events.
48 CARGOTALK OCTOBER 2011
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International News
Airlines
EMIRATES SKYCARGO STARTS FREIGHTER SERVICE
TO FAR EAST AND AUSTRALIA
Emirates SkyCargo recently launched the service on its new Far East
and Australasia freighter route. The weekly service, operated by its new
Boeing 777 Freighter, is offering freight capacity of 103 tonne.
Emirates SkayCargo’s new flights will fly Dubai-Singapore-Sydney-
Hong Kong-Dubai, providing the key trading points with additional
connectivity to Emirates’ Dubai hub, which can link businesses to the
114 destinations on the carrier’s network. Commenting on the new
service, Hiran Perera, Emirates’ SVP Cargo Planning & Freighters, said,
“This new route not only bolsters capacity, it provides our customers
with more options and increased trade opportunities.” Prior to the
new service Emirates was carrying cargo in the belly-hold of 126
50 CARGOTALK OCTOBER 2011
passenger flights a week between Dubai
and Australia, as well 28 Hong Kong
flights and 42 Singapore flights. “The
new freighter – with a wide main deck
door – will increase our ability to carry
oversized shipments,” added Perera.
“This takes our import capacity to
Australia to 1370 tonnes per week and
in these uncertain economic conditions, it
is further a testament of our commitment
to facilitating international trade for
businesses in the region,” he asserted.
The inaugural flight – which carried
100 tonnes of cargo, including medical
equipment, diagnostics, spare parts,
textiles and clothing - was met by
Greg Johnson, Emirates’ Cargo
Manager Australia and Alex Barkway, Emirates’ Cargo Manager New
South Wales.
According to Johnson, the addition of a dedicated freighter service is a
major milestone in Emirates SkyCargo’s growth in Australia and offers
new possibilities for expansion into other areas of air cargo transport.
“With the high Australian dollar driving up imports, this new flight will
also provide us with much needed additional capacity into the market,”
he said. EK9920 will depart Dubai every Sunday at 20:35 and touch
down in Singapore at 07:55 the following day. The B777F will then
depart at 09:00 and complete its outbound journey at 18:30 when it
touches down at Sydney International Airport.
SOUTH AFRICAN AIRWAYS CARGO’S NEW INTERNATIONAL FLIGHTS
Recently, South African Airways Cargo (SAAC) has launched its new freighter services on African routes and added wide bodied aircraft to
SAO & EZE as hub into South America. The airline was consistently exploring the new routes over the past few months to get additional routes
secured for our B737F into Africa. According to the airlines sources, the airline’s growth this year was its vision statement, ‘Bringing Africa to
the world and the world to Africa.’ SAAC will have a phase approach for the routes and will kick off with Dar es Salaam (Tanzania) and Entebe
(Uganda), with an additional flight to Maputo Mozambique on Fridays.
The above routes will be phase I, and more services to follow on the phase II routes. Currently, SAAC will be operating freighter services JNB-
BLZ/DAR/EBB/HRE/FIH/LAD/LUN/MPM and can operate adhock freighters on customers demand ex JNB.
SAAC has upgraded our capacity ex JNB – FIH/WDH route, and operating A-346 on JNB-GRU daily to SAO PAULO/Guraulhous connecting
to South America using interline or trucking services to CWB/POA/BHZ/BSB/RIO/FOR/NAT/MAO/JOI/NVT/SSA/RIO/REC/VCP, also
have thrice a week Operations to EZE in Argentina and can connect BOG/LIM/SCL/CCS/MVD/ASU/MEX, etc using interline capacity.
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Product Display
Gandhi Automations / Calendar of Events
Industrial Overhead
Doors
Gandhi Automations has
introduced automatic
Industrial Overhead
Doors for all industrial
needs. According to the
company sources, it is best use of transit
openings, weather resistant and maximum
safety. Their compact size leaves more
available space both inside and outside
the premises.
These overhead doors ensure a better use of
inside space as the side runners vertically
move the door along the wall and parallel
to the ceiling. The doors are installed above
the opening, thus ensuring a better use of
the transit opening.
China International Logistics
and Transportation Forum
October 12-14, 2011
Shenzhen Convention and
Exhibition Center
Telephone: 001-213-628-9888
Fax: 001-213-628-8383
E-mail: calvincheng@shenzhen
office.org
TOC Americas
November 15-17, 2011
EL anama Hotel
Panama City
Panama
Paul Holloway, Event Director
E-mail: paul.holloway@toc-events.com
CeMAT India 2011
December 6-12, 2011
Bangalore International
Exhibition Centre
Bengaluru, India
Hannover Milano Fairs India
Telephone:+91 22 40050681/82
E-mail: unmesh.mandpe@
hmf-india.com
52 CARGOTALK OCTOBER 2011
To meet all industrial needs
The company sources also stressed that
the doors are easy and practical to open and
SCM Logistics World 2011
October 18-21, 2011
Singapore
Website: www.terrapinn.com
9th European 3PL Summit
November 22-23, 2011
Hilton Hotel, Antwerp, Belgium
Telephone: +44 (0) 207 375 7206
Email: koreilly@eft.com
The Building a Resilient
Supply Chain Summit
December 9-10, 2011
New Orlieans International, USA
Telephone: +44 (0) 207 375 7167
E-mail: mmuir@eft.com
operate - as these doors slide vertically,
stopping in the proximity of the ceiling, they
blend in with the architectural features of
the building. Their compact size ensures
more available space both inside and
outside of the premises. The doors are more
environmental control – heat insulation and
soundproofing ensured by heat-insulated
panels improve working conditions on the
premises and ensure energy savings.
These are light and aesthetically
pleasing environments. The panels can
also be manufactured with the addition of
practical portholes or full aluminium sections
featuring polycarbonate or unbreakable
glass panels, wire meshing or air grilles.
Air Cargo Americas
November 2-4, 2011
World Trade Center, Miami
Telephone: (305) 871-7910
Fax: (305) 871-7904
Email: info@worldtrade.org
6th Thai Ports and Shipping
2011
November 25-27
Imperial Qeen’s Park Hotel
Bangkok, Thailand
Transport Events Management Limited
Telephone: +(60)-(3)-80235352
Website: www.biztradeshows.com/thaiports-shipping
Shipping, Marine & Port
World Expo 2012
February 8-12, 2012
Bombay Exhibition Center
Mumbai, India
Telephone: 011-23359734
E-mail: s.sundli@ficci.com; rishi.
arora@ficci.com
WWW.CARGOTALK.IN

Guest Column
Market Trends
From Globalisation to
‘Glocalisation’
A changing phase for customs house agents
We need to consolidate,
innovate and expand
our horizons for
individual, collective
and national
benefit. Globalisation is fast changing to
‘glocalisation’, i.e. global corporations are
forced to accept local thinking, culture,
and practices. Success will come to
those who can adapt and adopt. Home
bred corporations are required to learn
different strategies, adopt different models
of execution, update and upgrade their
skill sets - to survive the turbulent and
uncontrolled dynamism.
The need for good, competent,
resourceful, easily accessible, local service
providers is increasing and becoming
absolutely necessary. Ability to understand
legal issues and 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. Over the past three decades
EXIM businesses in India have truly gone
inland – spread across the length and
breadth of the country through over 245
ICDs and CFSs spread over more than 60
cities in over 15 states. Over 10 air cargo
stations supplement this.
Role of CHA
The CHA (Custom House Agent) in
India is licensed and has a statutory role
to play. His importance and relevance in
international cargo movement cannot be
54 CARGOTALK OCTOBER 2011
India’s unabated growth story continues and no
longer surprises anyone. We are fortunate to be a
part of the process and contribute to developing
an economic superpower. The interesting time is
now and the good times will follow. Samir J Shah
Samir J Shah
EXPECTATIONS FROM
GOVERNMENT
Clarity on policy provisions
such as DEPB, EOU, etc.
More concessions to make the
SEZ policy more attractive
Urgent clarification on a large
number of issues like Self
Assessment and KYC for CHAs
Uniform road regulations
across the country
All round efforts to truly make
customs a facilitating regulator
across the the country
undermined or ignored. He is adaptable,
innovative and always current in execution
and thinking.
The changing scenarios in both
domestic and international business in
India offers great opportunities to the CHA
to position himself well and use this as an
opportunity to grow.
The growing need for automation
and speed in international business has
compelled the Government of India to
come up with new facilitating measures.
EDI initiatives of the government coupled
with changes in the CHA Licensing
Regulations have made it possible for him
to work nationally.
It is now for the Indian CHA to
find opportunity in both, and also
expand his profile which can be done
easily. Indian customs house agents are
seriously observing the changing business
atmosphere. For instance, the theme for
the 20 th Biennial Convention of the FFFAI
took notice of the changing scenario and
focused on ‘CHA – beyond customs;
emergent global logistician.’
The CHA has the ability to work much
beyond customs. He needs to make himself
accepted much beyond customs. He can
guide, offer service, partner his clientele
much beyond their expectations and
imagination. Extending the relationship
between CHA and industry and extending
the scope of activities that a CHA
undertakes both are natural extensions at
this challenging time.
(The author Samir J Shah is partner,
JBS Group of Companies)
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Postal Registration No.: DL (ND)-11/6002/2010-11-12,
Licensed to Post without Pre-payment No.: U(C)-272/2010-12
for posting on 25 th -26 th of advance month at New Delhi P.S.O.,
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