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ACAAIcontents07Publisher :SanJeetEditor : Rupali NarasimhanSr. Assistant Editor : Ratan Kumar PaulAssistant Editor : V RamanujamGeneral Manager : Gunjan SabikhiSr. Manager Advertising : Harshal AsharSr. Manager Marketing : K.N. SudhirAsst. Manager Advertising : Geetika PathakAsst. Manager Marketing : Rajiv SharmaCreative Designer : Rajesh ChhetriAdvertisement Designer : Shibu VergheseVikas MadotiaProduction Manager : Anil KharbandaCirculation Manager : Ashok Rana20AIRLINES NEWSAir India strengthens freighteroperations through JVs42LOGISTICS SERVICESNew Year dawns atnew UPS-AFL alliance76CARGO INFRASTRUCTUREKolkata Airportmodernisation on trackBranch OfficesMumbai:504, Marine Chambers, New Marine Lines,Opp SNDT College, Mumbai – 400020, IndiaTel.: +91 22 22070129, 22070130 Fax: +91 11 22070131E-mail: mumbai@ddppl.comMiddle East:P.O. Box 9348, Saif Zone, Sharjah, UAETel.: +971 6 5573508 Fax: +971 6 5573509Email: uae@ddppl.com4EXCLUSIVE INTERVIEWACAAI to live with logistics trendsView PointNeed is to discuss on macro issues ........................8Dollar depreciation: matter of concern ................34Strong domestic focus required ............................36Importance of ACAAI is huge................................38Future is bright for freight forwarders ................62'Accept us as an industry' ......................................72Common interest issues shouldbe highlighted ........................................................72Airlines NewsSwiss Cargo resumes Delhi services......................10Emirates to add capacity in India ..........................14Jet Airways appeals to addresspressing issues ........................................................26Merger between Indianplayers required......................................................28Freight ForwardersAllied Aviation International:Robust growth........................................................30SV Freight, Awards line up ....................................52East West Freight Carriers: A single-windowoption for multiplex services ................................54Interfreight Forwarders: Qualitypeaking with productivity ....................................58Flyways celebrates 25 years ofreliability ................................................................62Industry IssuesAgents demand uniform policy,commission, compensation and FSC ....................32Regional ReportACAAI-SRC takes pioneering initiatives ..............40Logistics ServicesFirmly defined, standardised processtake AFL DACHSER into 21st century ....................44Shreeji Transport adds Air Franceand Emirates ..........................................................50Total Group: focusing on settingnew standards in logistics ....................................56Express CargoDomestic foothold forregional strength....................................................46UPS volunteers over 2,000 hrswith communities across India..............................60Technology UpdateInteroperability in multi-modaltransport through standards adoption ................64Logistics HubHong Kong: Turning Chinainto opportunity ....................................................70Exclusive InterviewPerfection is the key to success ............................74Cargo InfrastructureCargo infrastructure at BIAL..................................78Trade MeetDIAL unveils cargo plan atACCD lunch ............................................................80Head OfficeCARGOTALK is a publication of Durga Das Publications Pvt. Ltd. All information in CARGOTALK is derivedfrom sources, which we consider reliable and a sincere effort is made to report accurate information.Durga Das Publications Pvt. Ltd.It is passed on to our readers without any responsibility on our part. Similarly, opinions/views expressedNew Delhi:by third parties in abstract and/or in interviews are not necessarily shared by CARGOTALK . However,72 Todarmal Road, New Delhi – 110001, India we wish to advice our readers that one or more recognised authorities may hold different views thanTel.: +91 11 23731971, 23710793, 23716318 those reported. Material used in this publication is intended to use for information purpose only.Fax: +91 11 23351503Contents of this publication are copyright. Material appearing in CARGOTALK cannot be reproduced inE-mail: cargotalk@ddppl.com whole or in part without prior permission. The same rule applies when there is a copyright or theWebsite: www.cargotalk.inarticle is taken from another publications. 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direction, at the required pace, andin a manner so integrated as toeffectively bring together the desiredresults, now?" Arora aired ACAAI'srealisatins. This is evident from thefact that there is a gap between thevision of the policy makers andimplementation of the same. Theprocedural hassles and lack ofawareness and proper trainingpertaining to a particular projectare, consequently, decreasing thedesired pace of the infrastructurerelated activities."Global business has arrived inIndia. It is now local. Within India,there are the new marketplace andnew arena. Trade to, from and withinIndia will not sustain or grow if theIndian logistics sector - with itsinfrastructure, regulations,processes, costs, and ultimately itscollective offering does not deliverworld class service," Aroracautioned.According to ACAAI, the successof India's required world classinfrastructure lies greatly in itseffective utilisation. "Our archaicregulations and procedures needtimely rationalised and simplified,which is largely and quickly possiblethrough greater automation andintegrated industry EDI solutions.The Convention will examine stepsbeing taken in this direction.While the emerging logisticsenvironment provides greatopportunity, the logisticsintermediary needs to achieve thecritical balance between opportunityand the challenges of its role and itseconomics. The convention willdiscuss how the forwarder cansurvive competition and match thepace of his developing environment.As in every other industry,consolidation through mergers andacquisitions has been experienced inthe logistics sector too. Whether thisis desirable or, indeed, inevitable forthe forwarder is on the convention'sagenda. "The need for an integratedsolution in supply chain logistics isvital, for effectively delivering value.PressingDemands andRequirementsThe paucity of space atimportant airports that havenearly peaked in capacity raisesthe demand for decongestionthrough Forwarders' Bonded CargoTerminals, a long-standing demandof the air cargo forwardingintermediaries.This Convention seeks torecognise the booming logisticsarena, examine evolving marketneeds, changing trends of thelogistics environment, and thecustomer's focus on outsourcing,quality and innovation.We will hear a logistics major addressthe approach for an integratedlogistics solution," informed theconvention chairman.The convention will also ponderon common problems being faced bycargo agents which are broadlyrelated to regulations, serviceproviders, technology, knowledgeand professionalism, logisticsenvironment, emerging trends inlogistics industry, etc. And to touchall these issues, the discussion partof the convention has beenstructured in six sessions, whichinclude Destination India: newlogistics arena, evolving customermandate;Infrastructuredevelopment-the need for speed;Rationalised regulations-valuedelivered; Service Providersintegratedservice, integratedapproach; Technology-the humanbarrier and Knowledge andprofessionalism- the cutting age.The 35th convention's businessdeliberations would culminate in theenunciation of a future vision forACAAI - its evolution from anassociation of air cargo agents intoan industry platform, which can playan enhanced role in serving thecollective needs of all segments ofthe Indian logistics industry.6 CARGOTALK ACAAI - 2007 www.cargotalk.in

VIEWPOINTNeed is to discuss on macro issuesCyrus Katgara, Partner, Jeena & CoCyrus KatgaraThe Indian logistics and freightforwarding industry is standingon the inflexion point ofexplosive growth. The industryneeds to scale up massively to get thebenefit of the scale and invest heavilyin the IT and human resources.There is compelling need to comeup with value proposition to the industryto be integral part of the global valuechain. The Indian logistics industryneeds to massively reduce the cost atincreasing efficiency level. This will betough matrix to achieve in suchcompetitive ecosystem.The air cargo industry is the indexof any growing economy. The air cargoindustry needs serious valuedifferentiator to remain competitive aswe see serious competition from newdirect ocean services to variousdestinations from Indian sub continent.The Air cargo industry needs to branchout in new areas of specialisation likepharma and auto component. This willincrease the base of the industry andopen new areas of growth.ACAAI Convention should be theplatform to discuss the macro issuesfacing the air cargo industry. The aircargo industry in spite of tremendouspotential for foreign exchange andemployment generation has been notgiven due credibility by the government.The Indian freight forwarding industry issuffering due to lack of adequateinfrastructure. We should strongly lobbywith the relevant ministry to establish afully operational cargo village on thepatterns of the European airports toreduce the transactional time and costfor the industry. The infrastructure buildup will further boost the prospects andrelevance of this dynamic industry.ACAAI needs to broaden the scopeand reach of its influence. It should nowevolve from the trivialities to powerfulpressure group. It has to strongly lobbyand take up the cause of the fraternityat highest level of the governance. Suchendeavors will establish the credibility ofthe organisation.Hong Kong has special significanceas the AACAI convention destination. Itmarks the paradigm shift ofinternational air cargo from transatlantictrade to inter-Asia trade. Inter-Asia trade will be the largest trade blockboth in volume and value. Hong Konghas special significance as the gatewayto Mainland China.8 CARGOTALK ACAAI - 2007 www.cargotalk.in

AIRLINESNEWSSwiss Cargo resumes Delhi servicesCT BureauAfter being offline forlast four years, SwissInternational Airlinesresumed its directoperations with dailyDelhi-Zurich flights fromNovember 25. ChristophFranz, CEO, SwissInternational Airlinesand Oliver Evans, chiefcargo officer, SwissWorldCargo give anoverview.With Airbus A330 aircraft,Swiss WorldCargo, thecargo division of Swissinternational Airlines, willoffer about 18 tons of cargo capacityto and from Delhi, in addition to the22 tons already available to and fromMumbai. At present the airline istargeting 500 to 600 tons cargo permonth from Delhi market, whichincidentally, was the performance ofthe airlines during last four years,when it operated as offline carrierfrom Delhi."India is strategically importantcargo market that has shownmassive and sustained growth overthe last few years and Delhi is one(L-R): Sumit Mathur, Oliver Evans and Shankar Iyerof the major gateways for air tradesto and from south Asia, based on wellestablished industries such asconstructions,power,telecommunications, IT, health careand community services. SwissWorldCargo wholeheartedly welcomesthe new destinations of Delhi," saidEvans. He was confident thetraditional market would generatemore cargo and revenue for SwissWorldCargo, thanks to its wellexperienced managers, who know themarket in depth."We are delighted to make Delhias the first long-haul addition to the10 CARGOTALK ACAAI - 2007 www.cargotalk.in

AIRLINESNEWSSwiss route network. The non-stopservices from Delhi and Mumbai toZurich, showcases that India is not justa key trade partner for Switzerland, itis also becoming increasingly popularas a Swiss tourist destination. Swiss iscommitted to offering a highlyattractive product to its customers,"highlighted Franz.Swiss WorldCargo's developmentson the product side are aimedprimarily at niche markets. Forinstance, the pharmaceutical marketoffers high potential traffic if oneoffers the right quality services. Theairline is targeting the market in Indiawith adequate importance. "SwissWorldCargo secures such servicesthrough the dedication and personaltouch of internal resources and withthe corporation of highly respectedpartners like Envirotainer," said Evans.According to Evans, SwissWorldCargo adheres to its traditionalpolicy of close partnership with theair freight forwarders and logisticsservice providers, while continuouslylearning by listening to the evolvingrequirements of all users of airbornefreight services. "We strive fortransparency, be it pricing thatreflects the actual value of thequality services performed for thecustomers or in the information onfuel surcharges, which is updated atswissworldcargo.com on an ongoingbasis," he asserted.Swiss WorldCargo's networkincludes the entire belly-holdcapacity of the Swiss fleet plusseveral third party capacities.Follwing the announced acquisition ofSwiss International Airlines byLufthansa, the cargo entitiesLufthansa Cargo AG and SwissWorldCargo are also aiming toimprove market reach and customersatisfaction by combining theirstrengths. The two companies sharea common vision of creating anoptimized cargo organization withinthe Lufthansa group to operate theairfreight business of both LufthansaCargo and Swiss WorldCargo.12 CARGOTALK ACAAI - 2007 www.cargotalk.in

AIRLINESNEWSEmirates to add capacity in IndiaRatan Kr PaulTo cater to thegrowth in cargotraffic, EmiratesSkyCargo isincreasing itsoperations andcapacity in India.The airline willfacilitate adhoccharters for thebenefit offorwarders and tomeet customerrequirements forsingle-lot urgentuplifts ranging from32 tones on anA310 freighter to105 tones on aB747 freighter.At present, Emirates SkyCargooperates four weekly freighterservices to India and offersover 10,000 tonnes of cargocarrying capacity per direction permonth through freighters and bellyholdcapacity. Its freighter operationsinclude one Airbus A310-300 freighterto Delhi, two B747 freighters toChennai and two B747 freighters toMumbai.The additional frequencies toMumbai, Kochi, Chennai andHyderabad have boosted the existingexport of fresh fruits and vegetables,meat, sea-food, pharmaceuticals,chemicals and chemical relatedintermediates, auto components andspares, machinery spares, garmentsand textiles, leather and leathergoods, and handicrafts. It has alsosupported India's freight industry byincreasing the import of IT andelectronic products, telecomequipment, chemical-relatedintermediates, auto components andspares, machinery spares, householdconsumer goods, and consumables forthe hotel industry.Emirates recently startedoperations to Ahmedabad and in theprocess enhanced its India cargocapacity by 110 tones per week perRam Menendirection. On this route EmiratesSkyCargo offers specially-designedtemperature-controlled air cargocontainers for the benefit of Gujarat'spharmaceutical industry. SkyCargo'sCool Chain Solutions feature activetemperature control systems thatrange from -20C to +20C and keepproduct temperature stable despitefluctuations in ambient temperatures.The temperature-controlledenvirotainer service has facilitated themovement of critical and expensivepharmaceuticals from manufacturingbases in Gujarat to majorpharmaceutical distribution centres inthe Middle East, Europe, United Statesof America, Far East, and Africa.Emirates SkyCargo is also movinghuge supplies of denim from Gujarat,the largest manufacturer of denim inAsia, and ethnic and contemporarygold ornaments to key internationalmarkets.Traded items to and from Delhiinclude meat, handicrafts, leather,knitwear and hosiery. Those fromBangalore include garments andtextiles, cut flowers, silk fabrics, shoeuppers, machinery, electrical productsand pharmaceuticals.Leather products, shoes andshoe uppers, garments, electricalitems, machinery, pharmaceuticalproducts, perishables (vegetables,seafood, and mangoes) are exportedfrom Chennai to Dubai and onwards todestinations in Europe and the MiddleEast.Emirates SkyCargo also acceptsvaluables like currency, gold jewellery,polished and cut diamonds, diamondjewellery and precious stones atMumbai and Kochi airports. Facilitiessuch as a safe vault or special securityescort in such cases are providedwithin the airport premises.In the 2006-07 financial year,Emirates SkyCargo carried 1.2 milliontonnes of cargo via its Dubai hub,surpassing its record of one milliontonnes of cargo carried in theprevious year by 13.5 per cent. The14 CARGOTALK ACAAI - 2007 www.cargotalk.in

AIRLINESNEWSWest Asiaand Indian Ocean region whichincludes India contributed 16.9percent of the tonnage carried."We continue to evaluate Indiaagainst various growth trends acrossthe cargo industry. The outlook for thefuture is bright. India will certainly beone of the dominating countries in theair cargo market in the future," saidRam Menen, SDVP, Emirates SkyCargo.According to Menen, the growthof expendable income in India hasmarked a shift in the pattern ofspendingpower. There has been increaseddemand for goods and morecompetition for companies to meet thisdemand with efficiency. "This has alsomeant that the directional imbalancein trade that we have typically seenacross the Indian subcontinent isstarting to balance out, with bothexports and a growing number ofimports moving into India," he pointedout.Furthermore, added Menen, theopening of the retail market andadvent of retail giants like Wal-Mart isgoing tocreate anew revolution inconsumer behaviourand will also be adriving forcebehind thegrowth of thedomestic air cargomarket.According to an independentmarket survey conducted byDatamonitor, a key segment of Asia'sbusiness leaders believe that theAsian economy will continue to enjoystrong growth driven largely by Chinaand India. This sentiment is reinforcedby the 'India Logistics Outlook 2007'report that forecasts an explosivegrowth in India's logistics industry inthe next five years."Clearly, the cargo movementfrom India is on an accelerated path.We expect the country's overall aircargo growth at 20 percent to surpassthe world air cargo growth of fivepercent, owing to robust GDP growthand an export target of US $150billion," Menen expressed.Emirates will be looking at doubledigit growth to support the air-freightindustry. "We are also very optimisticof the new world-class airport andcargo facilities coming up atBangalore and Hyderabad in early2008. These new airports are boundto facilitate trade with their speedyclearance processes and aninfrastructure that meets the tradedemands. At the same time bothMumbai and Delhi airports are in theprocess of major cargo handling andfacilities upgrades," the cargo majoropined.Emirates intends to plough theretained profits back into its business- ensuring the airline has the rightinfrastructure, people and resources16 CARGOTALK ACAAI - 2007 www.cargotalk.in

AIRLINESNEWSto support its cargo division's futuregrowth, while providing its customerswith the high quality services."SkyCargo is well on its way torealising its vision - promoting andfacilitating total logistics solutionstogether with efficient supply-chainmanagement. We also plan to add newaircraft to the existing fleet to cater tothe increasing demand, bring onboardbetter trained professionals and bemore cost efficient," informed Menen.Commenting on the challengesahead before the air cargo industry inIndia Menen observed, "There is anurgent need for dedicated cargoairports with cargo terminals andenhanced capability of providing quickturn-around for freighter aircrafts inIndia at viable and competitive landing,parking, handling costs." In 2005-06,India's air cargo traffic touched 1.28million tonnes, representing a growthof 20.8 percent, which was highest insix years. "But in spite of thesestatistics, India does not have aseparate cargo airport. A nation isdependent upon its access toeconomical, efficient, and reliable aircargo services in order to producegoods and services that can competein the global market place," hehighlighted. He emphatically said thatsuch air cargo services can beprovided in separate cargo airportsonly, which in turn act as an engine ofeconomic development."Ground infrastructure is criticalto support air cargo. Properinvestment in airside facilities as wellas proper road infrastructureconnectivity is necessary to create aseamless distribution network. Forthis, highways need to be state-of-theartand should facilitate thedistribution of goods in a smoothmanner," Menen added. He also feltthat more and more cargo hubsshould be developed so that thebusiness demands are met.The existing aircraft-to-truckinter-modal transfer facilities need tobe improved and expanded to cater tothe growing volume of trade.18 CARGOTALK ACAAI - 2007 www.cargotalk.in

AIRLINESNEWSAir India strengthensfreighter operations through JVsRatan Kr PaulThe year 2007 was verysignificant for the mergedentity of Indian and AirIndia, thanks to threeservices the airline recentlylaunched. Anita Khurana,director, cargo and groundhandling, Air Indiaelaborates on thedevelopments.Anita KhuranaThe year 2007 saw the launchof dedicated freighteroperations by Indian Airlines /Air India on the domestic aswell as the international market. InAugust 2007, the airline commencedfreighter operation for the Departmentof Post & Telegraph (DoPT),government of India, with Boeing 737aircraft serving the North-Eastmarket. It operates a freighter aircraftconnecting Kolkata to Guwahati,Imphal and Agartala. In October 2007,Air India commenced freighteroperations as a joint-venture exercisewith GATI, also with B737 aircraftconnecting Delhi to Mumbai andBangalore.On the international front, AirIndia commenced freighter operationswith A310 aircraft during June 2007,connecting Mumbai, Chennai andBangalore to Dammam, Frankfurt andParis, thereby serving the India -Europe market.Chennai, Bangalore and Hyderabadvia the hub at Nagpur. This will bepossible with the addition of four moreB737 freighter aircraft, which will beavailable after conversion.Air India is also exploring thepossibility of converting two moreA310s, which will be ready foroperation by end of August 2008.With these freighters, the nationalcarrier is looking at expanding itsnetwork to major internationalmarkets in Europe, US, Far East Asia,UK etc. However, it is yet to shortlistthe routes.In the second phase, Air Indiaalso has a major plan in developingNagpur as a Sorting Hub for both itsdomestic and international operationsand it is already working towards thatand hope to set-up the same by theend of next year.For the domestic operations, AirIndia has entered into a joint-venturewith the Indian Postal Department andAir India is looking at increasing itspresence in the domestic market. By theend of March 2008, it will be operatingfreighter services to all the major metrosin India."During the last financial year wehave performed quite well and ourcombined revenue generation hasbeen to the tune of approximatelyRs.850 crores," informed AnitaKhurana.Right now, Air India is looking atincreasing its presence in thedomestic market. By the end of March2008, it will be operating freighterservices to all the major metros inIndia, namely, Delhi, Mumbai, Kolkata,GATI, where the freighter aircraft isoperated for the parties on a charterbasis and in such case the completecargo space is made available. DoPThad approached the erstwhile IndianAirlines to cater to their requirementto serve the North-East market. Forthe remaining freighters, the freightercapacity has been marketed under"block space arrangement" by invitingtenders.Questioned about any possibility20 CARGOTALK ACAAI - 2007 www.cargotalk.in

AIRLINESNEWSof conflict about the freight rate withGati and DoPT, when compared to therate offered by Air India's cargocarried in its passenger flights, AnitaKhurana was quick to reply, "Air India'srole is to transport cargo between themetros and in the north east, and weshall work towards providing our bestservices in this regard. Why shouldthere be any conflict about pricingbetween Postal Department/Gati?Their services cater to mail, courierand express cargo market which isgrowing at a rapid pace in India.Whereas the passenger aircraft of AirIndia would continue to cater to themovement of not only courier but alsogeneral cargo and other cargoproducts/commodities, which are notexpress in nature, thereby servingdifferent market segments andcustomer needs."For its international operations AirIndia does not have any JVarrangement and the airline has to fillup the space in the freighter aircraftwith the help of its cargo agents. "Wewould however be interested to enterinto such JVs in the future as andwhen we plan to induct more freightercapacity," Anita Khurana unveiled.Commenting on competing withother international airlines AnitaKhurana observed that the biggeststrength of Air India is the combinednetwork of AI / IC that it has to offerto its customers. "The depth of ourdomestic reach cannot be matched byany other airline. Air India's widenetwork spreads across the lengthand breath of the country providingAir India's wide network spreads across thelength and breath of the country providingair connectivity to 59 domestic destinations(effective December, 2007) and 43international destinations around the globe.air connectivity to 59 domesticdestinations (effective December,2007) and 43 internationaldestinations around the globe linkingalmost 300 city pairs. With thisnetwork, we would be providing aseamless connectivity for themovement of cargo to/from the inlandpoints within India to internationaldestinations. Of course there would beno compromise to the service, whichAir India would be providing to itscustomers and would also becomparable to the best in theindustry," asserted the seasonedcargo director.To add value to its products andservices Air India had launched itscargo automation programme in June2006, which allows agents to bookcargo space on Air India's flights, online,from their own location throughthe internet including the facility of'Track and Trace' the movement oftheir cargo on IC services. This facilityis now available to its agents onlywithin India, which is likely to beextended to all the agents basedabroad. The process have alreadycommenced in a phased manner,starting with the agency locations22 CARGOTALK ACAAI - 2007 www.cargotalk.in

AIRLINESNEWSbased in South East Asian countries.Another service that was startedby erstwhile Indian Airlines in April2007 was the Joint Courier Service -'IC ZIPP' with GATI, catering to thedomestic market. "We plan to push thisventure more aggressively, as with ourcombined air and road network wewould be able to serve the expresscourier / cargo more effectively,"informed Anita Khurana.Air India's international freightersare fulfilling load factors between 80-85 per cent. "We are trying to reachout to the market in a moreaggressive manner for promotingcargo on both freighter andline/passenger flights. Nowadays withour merged network, there is aconcerted effort taken to carry cargomeant for international destinations onown domestic flights up to the gatewaypoints," she highlighted. Further, sheexpects that by the time the airlineintroduces more freighters forinternational operations, it will also setup a good sorting hub at Nagpur forboth domestic and internationaloperations, which will help Air India tomaintain load factors on all its flights.According to Anita Khurana, InIndia the potential for movement ofcargo by air is immense and stilluntapped to a large extent. Air Indiaoffers approximately 2000 tons ofcargo space per day on its network(domestic and international) on bothits line and freighter services. Howeveras most of its scheduled passengerflights on domestic network arenarrow-bodied aircraft, Air India is notin a position to maximize its cargocarrying capacity to its fullest extent.Also most of the flight timings aresuited for passenger travel and is notattractive for cargo movement."With the advent of large retailcompanies setting up their shops inIndia, we expect a surge in thedemand for the movement of cargoproducts like textiles, electronic goods,perishables, etc to start moving by air.Keeping all this in view we are keepinga positive outlook to our freighter fleetdevelopment plan for the future. Weare targeting to carry about 750 tonsof cargo on an average per day in2008 on our network and capturemarket share of about 12-15 per centon the international market and about40-45 per cent in the domesticmarket," Anita Khurana stated.Replying to a query regarding theinterest of its distribution/sales armsAnita Khurana quipped, "Air India hasalways looked after the interest of itsbusiness partners, be it cargo agents,freight forwarders, etc. We haveregular interaction with various cargoassociations and cargo bodies time totime to address their grievances/concerns and also to meet/satisfytheir needs to the best extentpossible."24 CARGOTALK ACAAI - 2007 www.cargotalk.in

AIRLINESNEWSJet Airwaysappeals to address pressing issuesRatan Kr PaulAt presentJet Airways operatesto 10 internationalstations coveringAsia, Europe andAmerica. The airline isplanning introductionof flights to DAC,KWI, BAH, MCT andDOH by January 2008and SFO and PVGbefore the end of thecurrent financial year.Saroj K. Datta,executive director,Jet Airways, however,pointed out on thebottlenecks, whichmay deter thegrowth process.Saroj K DattaAll east bound and West boundflights lands and takes-offalmost simultaneously.Scheduled is planned to caterto immediate tail to tail transfer whichallows 9W to 9W connection within 2hours.The airline has increased almost40 per cent of tonnage over last year,and the bulk of which is on theinternational sector. It is expecting toclose financial year with1,60,000tones of cargo, which includes 35 percent domestic and 65 per centinternational cargo. USD 147 millionrevenue has also been projected.Datta maintained that till end ofcurrent financial year no- significantchange is expected as far as air cargomarket is concerned. "Worrying factoris the impact on international cargo,as a result of drop in exports duesliding USD to rupee rate," he clarified.However, 2008- 2009 thecapacity increase is expected for JetAirways to continue at a significantrate as additional Boeing 737/ 777and Airbus 330 join the fleet .Withadditional international and increaseddomestic frequencies Jet Airways willtarget at least 20 per cent cargorevenue contribution to it's totalturnover .Plans and programmesMajor Developments1. Focus on international cargo2. Addition of B- 773 and A-330 aircraft to the fleet3. Morning evening dual frequency to LON. from BOM4. Daily flight to LON from Delhi5. Daily two flights to NYC, from BOM and DEL6. Daily frequency on MAA/YYZ/MAA from December7. Upgrade the DEL/SIN product from B-737 to A330 - wide body aircraftwith cargo capacity of 12 tones8. Development of BRU as 9W's European hubDatta also showed his concernon the remaining bottlenecks, whichmay deter the growth the air cargoindustry in the country. None of theairports in India has properinfrastructure for domestic cargohandling. Make shift off-airportwarehouses are insufficient tosupport the load and often results inpoor service standards. According tohim, congestion on ground resulted inparking problem and movement ofground support equipment. This alsoleads to increased risk of aircraftdamage, safety violations and otheraccidents. Parking of aircraft inremote bays adversely affects thecargo handling too. Other issues,which need immediate attention of thegovernment and industry togetherare: • Prohibitive terminal handlingcharges at airport for using bondedtrucks. • Poor packing and the use1. Enhance capacity to the Far East and Middle East destinations byreplacing the existing 737 operations with wide body aircraft whichresults in almost 300 per cent increase in the cargo capacity per sector.2. Increase the international network to cover additional points in the US,Africa, China and the Gulf countries.3. Commence direct international flights from all major metros in India.4. Possibility of domestic freighter operations to support the feed and defeed from and to inland points to the international gateways.5. Develop a dedicated Road Feeder Service.of cheap packing material, whichincrease the risk of damage in thecourse of normal handling. • Limitedor practically non-existent infrastructureto handle cargo in the nonmetros.e.g Amritsar, Ahmedabad, etc.• India has no cargo hub. It haselaborate plans but no implementation.• Limited amount of superhighways, inter-state movementrestrictions leads to very limitedsurface air combination. • Increasedsecurity threat leads to multiplehandling, increased cost, delayedmovement. • High cost of domesticaviation fuel, which pushes costsnorthwards while additional capacityinduction pushes yields southwards.• Till date there is not a singleground handling agent ofinternational fame operating in India.BLR and HYD will be the initial twoairports to introduce the services ofinternational ground handlers.However the near monopoly positionof these handlers coupled with highairport charges being levied by theprivate airport operators, willincrease the cost of handling cargoat these airports. • Lack of uniformityin the interpretation andimplementation of rules andregulations by governing authorities.• Shortage of skilled and experiencedmanpower,etc.26 CARGOTALK ACAAI - 2007 www.cargotalk.in

CARGOINFRASTRUCTUREMerger between Indian players neededMahesh P Trikha, MD, Aargus Global LogisticsMahesh P TrikhaThe future for Indian freightforwarding seems bright asthe future of Indian economyis bright. However, theIndian freight forwarding communitywill have to seriously look atconsolidations among themselves tocompete with the larger players whoare now coming to India and haveglobal presence.The consolidation/merger is thebuzz word on worldwide basisthough it has to really take offin India. Unfortunately, we have notseen any mergers of significance inour industry within Indian companieswhich I personally feel is need ofthe hour and, of course, we areopen to it as well.Major challenges in the industryare, perhaps, among the carriersitself. Most of the airlines arerunning into losses, whether theyare Indian operators or foreignoperators. They need to addressthe rate issue in a broaderview, keeping in view ever increasingfuel prices and falling dollar.Other issues are security andhigh operations cost for thecarrier. Carriers concerns naturallytrickle to its agents.ACAAI as the name suggests isa body to take care of interests ofagents and community as awhole. The major concerns of theACAAI should be to work withpriorities on policy and burningissues viz Service Tax, TDS,commission on fuel component,Customs and negotiating spacewith new players involved inmodernising/constructing airports.As of now, no importance has beengiven to cargo agents.Another important area whereACAAI needs to be vocal and forcefulis to finalise "terms and conditions"under which a forwarder is working.Associations around the globe havethis printed with legal standings andbeing followed up by all theforwarders. But the same is missingin India.The humble appeal to thegovernment is to recognise ourtrade as an industry, so we arealso recognised and feel we haveguardians to take care of, as wewould know which ministry we fallin to.28 CARGOTALK ACAAI - 2007 www.cargotalk.in

FREIGHTFORWARDERSAllied Aviation International:Robust growthV. RamanujamA Pioneer inad hoc air cargochartering, AlliedAviationInternational PrivateLimited is part of agroup of companieswhose activitiesrange from airlineGSA to inbound andoutbound charteroperations. "Since1986, Allied AviationInternational hasbeen pioneer in aircargo charters andfreight business,at a time whenclient servicingwas not the usualnorm", says SonaliKothari, chiefoperatingofficer.In an exclusive interview given toCARGOTALK , young, dynamic Sonalisaid Allied Aviation International(AAIPL) put its best foot forward,gained customer confidence through arefined customer service quality. "TodayAllied International commands highrespect among shippers and agents aswell, thanks to matchless reliability,financial strength and dedicatedcustomer service".With head office in Mumbai, AlliedAviation International has full-fledgedbranches in all major cities across India.The company has accumulated a wideexperience and established strongreputation as airlines GSA and charteroperations. Currently competition incharter business keeps mounting. In thecontext of highly expanded air networkand constant addition of capacity byairlines, what Sonali has to forecast oncargo charter business for the comingyears? "Export charters will decreasedue to increase in scheduled bellycapacity", she replied. "However, the airimport segment will continue growing.As India is making rapid technologyadvances, machinery, ODC andtelecom equipments will occupyprominent position in importcommodity movements.Since 1986 when the company wasstarted, Allied as GSA for a largenumber of international air carriers hascrossed several key milestones. Askedher what is the one that she considersmost significant, Sonali said, "At the costof being diplomatic, I would still like tosay that acquiring every GSA, be itoffline or online, has been a significantmilestone in AAIPL's career path. Eachairline, being unique in its profile andservice, has helped us grow in manyways than one. For example, exploringnew markets, new routes, overcominghurdles. Besides acquiring GSAs,retaining the airline in the midst oftoday's excess competition is itself anachievement".With offerings of direct routes to alarge number of destinations aroundthe globe effective service andmodernisation of its entire operations,Allied Aviation International is moving asizeable volume of cargo recording arobust growth, year-on-year.Allied Aviation International claimsit provides 'personalised value addedservice' to customers. And, thecompany also claims it is offering 'totalquality service' at a competitive cost.How does Sonali explain these differentfactors meeting at Allied? "Being a GSAis more than just sales. We offer fullservice approach. Besides generalcargo service, we assist in generatingadditional revenue through courier andexpress products. These segments arehigh revenue generators for airlinesthat conventional GSAs often ignore. Iagree sales and marketing areimportant aspects; but once business issecured, it is equally important, orrather necessary, to ensure that itgets to the airport and loaded onto the right flight."Customer service is anotherimportant factor. They assist withaccurate agent data and enable quickand easy delivery of information onflights, services and tariffs, thusassisting the company to communicateeffectively with the forwarders. Totalquality being utmost important alongwith personalised sales staff for eachairline, we strive to service ourcustomers at par with competitiveprice. Market knowledge, accessiblemanagement and investment intechnology together make a perfectblend that leads to successful future.Sonali KothariWe, at Allied, believe in thestrong theory of 'demand network' andnot merely 'supply chain system'through forwarders which remainsconventional till date".A question on Allied's futurestrategy. Compared to an average 7 percent global air cargo business growth,India has an enviable place registeringover 10 per cent growth rate. Takingthis into consideration, is Allied planningto enhance its market presence? Whatis in store for customers in theimmediate future? Sonali replied, "As agroup, we are also growing steadily. Weare in a never-ending pursuit ofincreasing the number of airline clients.We have dedicated personnelresearching this aspect. Allied has astrong presence in 11 major citiesspanning India, and we are looking intofurther expansion. Our customers willcertainly benefit with our offering ofwide array of destinations. In thecomplex and difficult transport conditions,as an established GSA, verticallyintegrating the airlines and customers,we do our best to deliver on time".This philosophy, obviously, willprove to be moving in the right directionas Allied Aviation International looks setfor fast network expansion on the backof India's solid volume growth."Ultimately, the idea is to create asignificant air cargo operation, a widerchoice of direct routes for customers,a quality that is never compromisedand, of course, customer satisfaction",Sonali pointed out.30 CARGOTALK ACAAI - 2007 www.cargotalk.in

INDUSTRYISSUESAgents demand uniformpolicy, commission, compensation and FSCCT BureauAlthough registeringan annual growthrate that is higherthan the worldaverage, the Indianair cargo industry ingeneral, and thecargo forwardingcommunity inparticular arepassing through acritical phase.Challenges facingthe forwarders aremore than one.Forwarders have to encounterwith many including fiercecompetition within themselvesdue to undercutting of cost,challenges of poor infrastructure,pay-offs, regulatory authorities andairlines too."Difficulties are increasing onlyto hamper our growth", said aleading air cargo forwarder inChennai. The forwarder who spoke toCARGOTALK with condition ofanonymity, said, "For the past fiveyears now, when fuel surcharge wasimplemented, followed by securitycharges which is a fall-out of 9/11,scanning are all accounting for over55 per cent of the actual freight. Weforwarders are collecting thecharges from customers andremitting to carriers on due datewithout any compensation for ourextra efforts, time and cost. Our netyield is dropping. We do business atnegligible profit".A Chennai agent, who cameforward to offer his views said to thiscorrespondent that there is nouniform basic freight rate with anycarrier to any particular destination.They just offer it and sell, many a timeat throwaway prices. This souringattitude goes only to spoil the industry.I can give you some examples. TakeFar East for instance. Carriers fromFar East are charging basic freightrates lesser than FSC. It's high timethat some strict norms are fixed, lestit becomes difficult to control. Theforwarders on the whole are sufferingfrom Service Tax on C&F charges,TDS/BAS (Business Auxiliary Serviceson Commission) and Income Tax, alltogether eating up a lion's share ofour yield".Issues are many. There is noAn agent brought to our notice that the following is the example of variationsamong the airlines on reimbursement of Service Tax:Air India, Swiss Air, Singapore airlines,emirates, Malaysian Airlines,Thai & Korean AirLufthansaAir FranceAllowing the agents to deductreimbursement of service taxon CSRIssuing cheques after deducting TDSIssuing credit notesuniform fuel surcharge. It varies onprice and the date of implementationtoo. A Chennai agent quoted someexamples of FSC of various airlinesflying to European and USAdestinations.Certain agents who werecontacted by CARGOTALK grumble thatthere is no uniform policy adopted onreimbursement of Service Tax. "Someairlines, one from Europe for example,do not reimburse Service Tax. Whenquestioned they simply say that sincethey are selling at net-net rate, nocommission is involved, hence thequestion of Service Taxreimbursement does not arise. In suchcase, collecting of Re. 1 per kg asMISC is questionable".During reporting of this article,CARGOTALK found one aspect insistedby most of the forwarders. Uniformity.Air carriers and air cargo forwardersare main components of the industry.A uniform cost, a uniform code for allwill benefit all, the agents feel. Theysuggested that a strict code ofconduct to be implemented, a uniformpolicy to be drawn and adopted, andcommission on total net freight, whichincludes basic freight, FSC, SC and allother charges.32 CARGOTALK ACAAI - 2007 www.cargotalk.in

VIEWPOINTDollar depreciation: matter of concernJ Krishnan, Vice President, ACAAIJ KrishnanThe fragmented nature of thisbusiness will see majorchanges. It will be a survivalof the fittest and that meansa networked, seamless multi taskingforwarder. This growth can be eitherorganic or inorganic.The prediction made a few yearsago of a sustained high percentagegrowth may not come about. Risinguncertainties on security, fuel andenvironment will definitely dampen theparty. The valuation of the Asiancurrencies against the US dollar isanother worrying factor.The synergies between India andChina when harnessed with aneconomic and practical goal willensure that these two giants candictate the growth in world commerce.This is best achieved by the variousindustry captains in all key sectors ofinternational commerce to interactwith potential economic partners. Theshifts required to grow into the 21stcentury would definitely be a coreissue at this Convention.Any premier industry associationis a great repository of the knowledgeof the new world and the bestpractices. ACAAI has always been inthe forefront for dissemination of thisknowledge to its members and thanksto the vision and dedication of ourpast presidents.Hong Kong has always been thethreshold into the land of the Dragon.Hong Kong shares with India in theuse of English as its businesslanguage and there cannot be a betterplace to begin the knowledge andbusiness prospecting into China thanHong Kong.ACAAI office bearersand managingcommitte members• Keshav R. Tanna - President• J. Krishnan - Vice President• Hemant Bhatia - Hon, SecretaryGeneral (Co-opted to fill a casualvacancy)• Bharat J Thakkar - Hon. TreasurerMCMs :Anil Vazirani, Asad Cassim,Haresh Mehta, Raman Raj Sud,Raghu Sankar G, T.A. Varghese,Sunil Arora (Co-opted to fill acasual vacancy).34 CARGOTALK ACAAI - 2007 www.cargotalk.in

VIEWPOINTStrong domestic focus requiredPalem Srikanth, CEO & MD, Four SoftPalem SrikanthIndia has produced several globalplayers in many industries in the last5-10 years in areas such as IT,pharmaceuticals, steel, energy andbanking/financial services. However,there is one area where India has notproduced a global or even a regionalplayer so far is Logistics.We have global logistics playersfrom Japan, Europe, USA and even themiddle-east. There is a huge opportunityfor 2-3 players to become global playersin the logistics business. We would qualifya company as a global player when itreaches a revenue of USD 1.0 Bn in afinancial year and operate in at least 10countries through direct operations,employing not less than 3,000 staff.The Indian freight forwarders andlogistics companies can be classified into3 categories - local agents and partnersof multinationals who are beingacquired, large local players with a highpercentage of domestic logisticsbusiness and lastly companies that areunable to compete because they havelost their agencies. I strongly believe thatcompanies with strong domestic focusand ability to leverage that to buildinternational operations will succeed inthe long run. This can be achieved intwo ways: either by building yourdomestic network and strength first andthen building the internationalcapabilities or vice-versa. To accomplishthe international network, we will see alot of international acquisitions, mergersor even a combination of smallcompanies coming together to formpartnerships.Consolidation of the industry at thehigh level will continue but the spread offreight forwarders & logistics companieswill continue to remain as the shippers/ manufacturers are not inclined to givemore than 20 per cent of their globalbiz to any single 3 PL. The smallerforwarders and 3 PLs will continue toattract new entrepreneurs who will focuson niche areas of strength.Lastly, technology will play avery important role in the growthof the freight forwarders andlogistics companies in India. They havebeen averse to investing in technologyfor a long time as man power inIndia was cheap. With growing laborcosts, automation and computerisationof biz processes will become mandatoryand result in high productivity inthis business.36 CARGOTALK ACAAI - 2007 www.cargotalk.in

VIEWPOINTImportance of ACAAI is huge tomake the industry strongBharat J Thakkar, Hon. Treasurer, ACAAIThe industry isfinding it increasinglydifficult to keep pacewith global growthand keep costsdown and remainprofitable.Environmentalconcerns, increasingsecurity requirementsand rocketing fuelprices are allchallenges for theindustry globally. Inrecent years, airlineshave been squeezedby rising fuelprices and strictenvironmental andsecurity regulations.Between Q2 2003 and Q22005 a typical airline's fuelspending jumped from15.3 per cent to 26.6 percent of its overall annual operatingcosts. For example at AmericanAirlines, every $1 increase in theprice of oil translates to anadditional $80 million in fuelcosts. The rise in the price ofcrude oil since January 2007 hascost the company an additional$3 billion! This is one of thereasons why the company isexpected to go from making aprofit to a small loss.Security is the industry's othermajor headache. The need to adhereto heightened security procedureshas seen airline security costs rise100 per cent in the last three yearswith no end in sight. These lengthyprocedures and red tape delaydelivery and turnaround times,undermining air freight's principalappeal to customers - speed ofdelivery.Even though 90 per cent of theworld's goods by value is shipped bysea, we really don't foresee oceanfreight as a challenge for theindustry. Air cargo provides adecisive advantage. However, withthe advent of fast ships, we mightbegin to witness a paradigmshift where these ships take a biteout of airlines' consolidation cargoin the same way that the integratorshave bitten off much of theirpremium traffic.Since 1970 ACAAI is the onlyrecognised national associationrepresenting the air cargo industry inIndia. Starting with 16 members, itnow has a strength of over 500.Bharat J ThakkarBesides safeguarding the interest ofits members and promoting theirinterests, it provides professionalassistance and guidance not only toits members but also to variouscentral and state governmentdepartments/authorities connectedwith the industry. ACAAI promotesgrowth, development and professionalismin the India air cargo business.The association provides a regularmedium for dialogue with members'principals, the airlines, theircustomers, the exporters andimporters and various government departments/authorities. ACAAImaintains close contact with worldbodies related to the air cargo tradeand represents matters affectingour country's airfreight forwardingindustry at various international forms.ACAAI gathers useful information ondifferent aspects of the industry anddisseminates the same to membersand allied organisation. ACAAI is amember of various governmentcommittees, including Civil AviationCore Group(CACG), the StandingCommittee on Promotion of Exportsby Air (Scope Air), AdvisoryCommittees of the Indian Customs likeTrade Facilitation Committee (TFC) andCargo Facilitation Committees of theAirports Authority of India (CAFAC),amongst others.China, the world's fastestgrowingmarket with 9.5 per centannual GDP growth and exportstopping $851.2 billion in 2003--triple the 1997 number--is attractingSince 1970 ACAAI is the only nationalassociation representing the air cargo industryin India. Starting with 16 members, it now hasa strength of over 500. ACAAI promotesgrowth, development and profession-alismin the India air cargo business.immense interest from airports andairlines in the region as the "bestticket in town" for cargo revenue.Hong Kong continues to maintain itsspot as the center for air cargo inthe region and the conventionprovides a great opportunity tosee it. India-china trade is onthe rise and this will give opportunityto Indian forwarders and membersof ACAAI to meet their counterpartsfor mutual benefits and visitcargo facility.38 CARGOTALK ACAAI - 2007 www.cargotalk.in

REGIONALREPORTACAAI-SRCtakes pioneering initiativesN Sivasubramaniam, Chairman, ACAAI-SRCA majordevelopment in thesouthern region isthe Notificationissued by thecustoms with regardto setting up an AirFreight Stationoutside the Air CargoComplex. ACAAI-SRC wasinstrumental inmaking a detailedstudy after which arepresentation wasmade to theCustoms whichresulted in this pathbreaking initiative.This is the first of itskind in India andhope that this willbecome a trendsetter for the rest ofIndia.Chennai has over the past fiveyears seen a tremendousgrowth in both exports andImports with a 5 to 8 pecentincrease in exports and 8 to 10percent increase in Imports. Theincrease in both passenger and cargotraffic has brought in more airlinesoperating into Chennai from about 10to almost 22 Airlines today.There are about 15 airlinesoperating exclusive cargo freighters tovarious destination around the world.Today the weekly capacity available inboth passenger and cargo flights isalmost 3000 tonnes with Airlinesoperating high capacity freighters.Chennai becoming an Industrial hubfor automobile and electronics andwith more and more MNC's setting upindustries will see more airlinescoming in with additional capacity.Chennai was basically a leather,leather product and garment orientedmarket till about five years ago. Theaverage uplift 5000 tons of exportand about 4000 tons of import cargo.Today with the advent of multinationals into the automobile andelectronic sector there has been aN Sivasubramaniamtotal change in the profile of exportand import cargo. The averageexports have increased to about 9000tons and in imports to about 10,000tons per month. The increase inimports compared to exports mainlydue to companies like Nokia, Dell,Motorola in the electornic sector andcompanies like Hyundai and Ford inthe automobile sector.Till about two years ago theairfreight rates were steady with minorfluctuations during the lean seasons,but with trend of increase in importsand exports airlines started operatingPraveen Menenadditional frequency. On the otherhand the passenger traffic alsoincreased by about 20 percentresulting in many passenger airlinesoperating into Chennai including manyfrom the Middle and Far East withadditional belly load capacity and forthem this was an additional bonus inrevenue which again resulted in theairlines dropping the rates.As a freight forwarder this didhave an impact on them by way of lossin revenue and will not in any waychange unless there is a change insupply and demand. One area whichContd. on page 48 col. 140 CARGOTALK ACAAI - 2007 www.cargotalk.in

LOGISTICSSERVICESNew Year dawns atnew UPS-AFL allianceV. RamanujamThe New Year2008 is all set todawn on India ata refreshing newUPS-AFL alliance.UPS, the globalmajor ofpackages, expressand supply chainsolutions provideris teaming upwith AFL,India's 6-decade,magnificentpioneer in a hostof serviceaspects.Calling it another significantmilestone in the century-oldhistory of UPS, PirojshawSarkari, MD, UPS JetairExpress India Pvt. Ltd., said that "thealliance with AFL is aimed at drivingthe success story forward".He told CARGOTALK , "As the yearcomes to a close, we at UPS will beat an advent of change, a big changein India". AFL, the pioneer in expressand logistics, is coming closer to UPSon a strategic alliance, he observed."The alliance will change the way weoperate in India."Briefing on the development,Pirojshaw said starting from January1, 2008, when the new agreementtakes effect, the alliance willsignificantly expand the networkaccessibility to UPS services in Indiawhile enhancing AFL's exportcapabilities. The AFL WIZ ExpressCentres across the country will activelypromote UPS's international expressdelivery service to customers in India".President of UPS InternationalDan Brutto, who specially flew in toMumbai on the occasion, said in hisaddress to the crowded press that theUPS-AFL alliance comes out of "ourbelief in the potential of the Indianmarket". He added, "We have beenexploring different options to expandour operations in India and concludedAFL offers the fastest route toexpansion along with the mostcapabilities".Announcing formally the allianceto the press, Dan said, "I am trulyexcited in announcing about ourdecision to partner with AFL and lookforward to a joint commitment towardsbuilding business and spreading theconcept of synchrinised commerce inthis country". AFL is the mostrespected company in India, Danadded.In his address, Ken Torok,President, UPS Asia Pacific, said, "Wecome to celebrate this milestone inIndia, a very historic moment. I feelthe alliance between UPS and AFL willmake a key component of success".At press conference (L-R): Pirojshaw Sarkari, MD, UPS Jetair Express India;Dan Brutto, President, UPS International; Cyrus Guzder, CMD, AFL Groupand Ken Torok, President, UPS Asia PacificKen added, "Asia, and thereforeIndia, will continue to be our key focusmarket in all the future to come".Expressing his happiness, CyrusGuzder, CMD, AFL Group, said that thenew alliance is a clear indication ofreposing confidence in AFL.AFL is in its sixth generation."When we complete 100 years, mycompany will also be regarded assuccessful as you", he said pointing toUPS International President.AFL introduced courier, expressand logistics to India. "The six-yearagreement of AFL with DHL", hesaid, "to support each other isending happily on December 31,2007". Appreciating highly UPS, hisnew partner, Cyrus said themultinational company "has a trulyamazing network spread worldwide."UPS has the most advancedtechnology deployment and a highglobal reach."During the past 15 years, AFLhas actively been involved in logisticsand distribution business."We have aneffective daily customer base of17,000", Cyrus said.Through its thousands oflocations in India, AFL will provideUPS with the enhanced deliverycapability and rapid transit times,Cyrus said. "AFL and UPS havecomplementary skills. Now with UPS,we will deliver heavy packages andlarger commercial consignments." Headded that the combined serviceplatform will provide Indian shipperswith unparalleled service standardsfor express shipments. "Besides, thealliance will open up opportunitiesfor our customers at over 200locations across India to gainaccess to, and take advantage of,UPS's time-definite delivery service",Cyrus observed.42 CARGOTALK ACAAI - 2007 www.cargotalk.in

LOGISTICSSERVICESFirmly defined, standardised processtake AFL DACHSER into 21st centuryV. RamanujamKeys to successfulservice to air cargocustomers are nodifferent fromthose found inproduction arena.It is vital tounderstand that nosingle magic bullets-- qualityprogrammes oremployeeempowerment, forexample -- cantransform an airfreight servicequality from merelystate-of-the-artsystem to trulysuperior status.It is proved that hard work,attention to myriad details andconstant innovations cannot beavoided to achieve that trulysuperior status. In this context, whatis coming up as first choice of aircargo customers — irrespective ofweight / size - is AFL DACHSER PrivateLimited. A year is coming to close ina few months when the country'spremier air and sea freight forwarderAFL spun off its flagship 'Cargo'division in a 50:50 JV with Europe'sone of the leading logistics players,Dachser GmbH.During a briefing, Detlev Janik,CEO, AFL Dachser, told CARGOTALKthat AFL Dachser is operating on aunique business model of 50:50, oneof its kind in the industry, because ofwhich the network has become USP.Detlev says that the USP of AFLDachser is its robust local and globalnetwork. In India, the extensivenetwork of 36 owned offices combinedwith over 350 offices of affiliatedivisions has enabled AFL Dachser toprovide penetration across thecountry that is unparalleled. Inaddition to it, seamless integrationwith Dachser's global network of 256offices, gives the company its strongfootprint in almost all the continents."Today, AFL Dachser has grown intoone of the most preferred globallogistics service providers.""Going forward on the same lines,the company will further beef up itslocal network to ensure proximity toits customers that will enhance servicelevels", Detlev said while speakingabout future business plans of AFLDachser. "We have rolled out variousinitiatives to focus on trade lanesand key account management.Traditionally, Europe, US and Far East(including Japan) have been thestrong trade lanes for us. In orderto take the full advantage ofglobalisation, the imperative measuresare being taken to tap the potential ofemerging markets in South America,Central Europe, Africa and Russia."The company continues to investin advanced technology and ITinfrastructure in order to supportthe planned expansion andanticipations.The corporate visionencompasses aspirations that go farbeyond the practical scope of cargobusiness, and therefore at AFLDachser the strategies flowing fromthe vision becomeimmediately actionable."Success is the resultof hard work and teamwork. Ourmost capable leaders are ourpeople", Detlev says. "They have local,state, national and internationalinvolvement, which is necessary tobring the competence to bear onoperations", he observed whilespeaking about the company'stight-knit team. "They are our mostimportant asset."To a question on service profile,Detlev replied that AFL Dachseroffers an extensive portfolio ofservices for its customers rangingfrom global freight management,warehousing to break-bulk projectcargo management and Customsclearance. "We provide in-houseCustoms clearance and consultancy,which again differentiates us fromour competitors. Presence of ourown personnel at all major airports/seaports provides more control andtransparency to our customers."Asked him about the servicequality, Detlev said, "Global or local,our services are driven by thesame logic. They are cost-effective,reliable and precisely targeted. Wepride ourselves to offer a 'uniformstandard of service' throughoutthe network and across products. Weare committed to our customers inevery manner."Detlev Janik44 CARGOTALK ACAAI - 2007 www.cargotalk.in

EXPRESSCARGODomestic foothold for regional strength...Blue Dart leadsTulsi N. MirchandaneyThe incredibleIndia story is stillunfolding, and wehave a long way togo before we cantruly level with themore matureeconomies thatmany of us flock toin order to gleanthe education,knowledge andresources that theycontrol. However,our progress cannotbe denied and Ibelieve that we arefortunate to live inthese interestingtimes where we cancontribute to anemerging andconstructive phasein our country'shistory.For us at Blue Dart, it has beena journey worth looking backon, because we placed ourfaith in India many years ago.As we enter our 25th year ofoperations, there is great pride inbeing part of a company that has itsgenesis in India and held its ownamongst the best in the industry, whilemaking its own contribution in building'Brand India'. Blue Dart took risks,faced tough challenges andsurmounted each one of them to setunprecedented standards of servicequality and excellence.The company made a consciousdecision in the early 1990s to focuson India. At the time, the operationsand revenues were skewed towardsinternational operations. Over theyears, this has diminishedsubstantially, and a key catalyst wasthe decision to create a domesticaviation system. Not just a domesticcargo airline, but an entireinfrastructure that could support theend-to-end distribution to the farthestreaches of the country. Not justfreighter capacity, but the engineering,maintenance and ground handlingsupport that could ensure highdispatch reliability andon-time performance, quickturnaround times and processing oflarge numbers of shipments within avery short time window. Within theenvironment constraints of our citiesand airport facilities, these aremiracles that are performed eachnight by a legion of heroes in ournetwork. Heroes, we often joke, whoreally deserve to be in a Nikecommercial because they live the tagline, "Just Do It" every night.The challenge does not stopthere. The Indian customer is evolvingand becoming more demanding.Rightly so. The increasing affluenceand resultant consumerism has givenrise to a host of luxury goods andservices for which a sizeable segmentis willing to pay a higher price and,therefore, expectations arecorrespondingly raised. The Indianpenchant for shopping overseasseems to have shifted to moreadventurous travel, perhaps becauseall those brands they yearned for arenow available in their neighbourhoodmall. Indians, today, are also spoilt forchoice and competition has spurredproduct and service improvement atlower and lower price points, whileTulsi N. Mirchandaneyseeking new ways to ensure marginsto sustain and grow business. The neweconomy has stimulated a newconfidence and entrepreneurship, withambitions to move beyond traditionalproducts and markets. Witness thehost of opportunities that our youngergeneration is encashing on - in media,entertainment, retail, IT, lifestyle andfinancial services, to name a few.The world over, logistics has beenthe backbone of a burgeoningeconomy, and India's success story isno different. The Indian expressindustry has witnessed a dramatic46 CARGOTALK ACAAI - 2007 www.cargotalk.in

EXPRESSCARGOchange in the past few decades, andhas evolved from a primarilydocument-centric service to a criticalsupply-chain support for manyindustries. In the increasinglycompetitive and aggressiveenvironment where the compulsionsof being first-to-market does notallow for any compromise on quality,express distribution has provided thespeed and the reliability to helpcommerce, and help deliver India'sgrowth story.Blue Dart, in more ways thanone, has been a pioneer in theIndian domestic express sector. Bornout of the creativity, optimismand entrepreneurship of threeenterprising men who started BlueDart with a modest capital ofRs. 30,000 out of 200-SQF ofoperations space, to a Rs. 670- crorecompany today, reaching out to over17,600 locations across a complexIn today's scenario,what remains ofprime importance inpre-empting marketand customerneeds is to alwaysbe in state ofpreparedness inorder to servethem better.Indian geography, Blue Dart hasindeed come a long way. We haveresponded to the infrastructurechallenge of a developing economy byinvesting in extensive air and groundinfrastructure, networks, technologyand people to enable globallybenchmarked services aligned tochanging customer needs. Blue Dart'sunrivalled domestic aviation networkencompasses a fleet of three B757s(a first in India) and four B737soperating over 62 route connections,offering a payload of 300 tonnes eachnight; together with its recentlyexpanded ground infrastructure andservices, 48 domestic warehousesand over 5,500 people - all committedto the sole purpose of adding valueto our customers. The entireorganisation is aligned to the fact thatreliability is non-negotiable.In today's scenario, what remainsof prime importance in pre-emptingmarket and customer needs is toalways be in state of preparedness inorder to serve them better. What aretheir needs? How do we continue toadd value and remain relevant?…….are some questions that wecontinuously ask ourselves. Duringour regular market research andcustomer satisfaction studies, we havegained an insight on the customer'schanging perception and needs, andit would be dangerous to take him forgranted. Customer expectationscontinue to scale up. They expect agreater ability to manage complexityand provide complete solutions -- amore strategic partnership to meetcommon goals, rather than a fleetingtransactional relationship. The onus ison us to continuously break newground, innovate ahead of the curvewhile retaining our fundamental valuesof assuring customer trust, and pridein our service amongst our people.Truly living our tag line…………..Ittakes a leader to deliver!(The author TULSI NOWLAKHAMIRCHANDANEY, is Senior VicePresident, Marketing & Projects,Blue Dart Express Limited.)Contd. from page40 col. 3ACAAI-SRC demands commission on surchargeneeds the governments attention isthe fuel and Security surcharge whichthe airlines started collecting after9/11. What started as a very nominalfee has today in some cases is morethan the actual freight. A surcharge bydefinition is applicable only for aspecific period of time, but today ithas become a permanent feature andthis is a major concern for allforwarders since the responsibility ofcollecting lies with forwarder with nocompensation given for the risk taken.Airport infrastructure has notbeen up to expectation as far as theAir Cargo Complex is concerned. Oureconomy was opened in the year1995, but our Air Cargo Complexeshave not geared up to the growingdemand or to meet up to thestandards required. With the growthrate up by almost 50 per cent in thelast five years the infrastructure is stilllacking in terms of space, manpowerand equipment.AAI in Chennai have also beentrying to provide the necessaryrequirements within their limitedresources. The basic problem may bebecause the decisions have to betaken by the head quarters withlimited powers given to the localauthorities. A complete covered areaof 9866 sqmt developed as Phase Iwas built in the year 2002. It hastaken almost five years to completePhase II which will be commissionedsometime end of this year.Likewise the shortage ofequipment is a perennial problem,imagine that this airport does nothave a heavy lift which can carry ashipment which weighs more than 12tons. A crane has to be deployed fromoutside to handle such heavy cargo.So is the manpower problem whichhas remained constant for the lastdecade. A detailed study by the centralA surcharge by definition is applicableonly for a specific period of time, buttoday it has become a permanent featureand this is a major concern for allforwardersgovernment has to be done toimprove any short comings if thisairport is to meet the growingdemands in the coming years.The air cargo that haswitnessed robust growth during thepast decade and the future iscertainly bullish. As the percentage ofIndia's share in world trade increasesthe role of air cargo will assumegreater importance and demand willremain high. We need to rapidly movefrom a position of buildinginfrastructure from bridging the gapto creating for future needs. Thiscalls for a massive investment whichmay be beyond the government'sability. The involvement of the PrivatePublic Partnership may be theanswer. The government has alreadyreduced the duty structure to a largeextent and the indications are theremay be further reductions, whichdefinitely will benefit the exporters tocompete in the international market.However, that alone will not suffice,paperless transaction, reduction intransaction time and bench markingthe activities of the governingagencies will help to speed upprocess by cutting down delay due topersonal interaction.48 CARGOTALK ACAAI - 2007 www.cargotalk.in

LOGISTICSSERVICESShreeji Transportadds Air France and EmiratesCT BureauShreeji TransportServices Pvt. Ltd.,a trusted brand inCustoms bondedtrucking, hasemerged as anundisputed leaderin the filed. Thecompany operatesbonded truckingservices since2002 to a host ofinternationalairlines.Rupesh M ShahWe realised the seriousnessof problems faced by thevarious exporters andimporters", said DirectorRupesh Shah. In an exclusive one-toonewith CARGOTALK, Shah explained,"As all flights are not landing in allcities, and when an exporter plans toexport his cargo to certain destinationhe has to depend on a particular flightwhich is landing in other airport, he isthrown to a crucial corner. In suchcase, the exporter has no otheralternative except to forward his cargoto that airport for Customs clearanceor he has to clear his cargo at anairport nearer to his manufacturingunit and send the cargo by thedomestic flight to connect hisparticular flight."When an exporter is having hugecargo weighing 80 to 100 tonnes inone lot, domestic flights are not ableto carry such a huge cargo. At thispoint, exporter will be in deep trouble.A blue print was made to introduce theconcept of Customs bonded truckingto India by Board of Central ExciseDileepa BMand Customs, following successivemeetings with trade bodies, UnionMinistry of Commerce, Ministry ofFinance and Department of Revenue.The scheme came for carryingtransshipment cargoes incontainerised trucks from hinterlandport to gateway ports".Shah recalls that since past fiveyears, Shreeji has accumulated'wonderful experience' in bondedtrucking' and servicing airlines, anddeveloped rapport with a number ofinternational airlines, CustomsDepartment and governmentauthorities."The concept of Customs bondedtrucking in India is still in a nascentcondition, whereas in the US andEuropean countries the concept isvery common, and almost all airlinesthemselves are operating bondedtrucking. As it is a new concept inIndia, still some of the airlinesoperating to India are not aware ofthis facility. We at Shreeji TransportServices are making all efforts increating an awareness of bondedtrucking facilities available in Indiaalso", Shah said.Speaking to this correspondent,Chief Coordinator Dileepa said inNovember 2007, Shreeji finalisedagreements to provide bondedtrucking services to Air France Cargoand Emirates SkyCargo. "We are veryhappy that we started offering ourreliable BT services to two more highqualityglobal airlines. The addition ofAir France and Emirates to our everexpanding list of clients is the resultof our dedication to servicecommitment", Dileepa said.Shreeji is authorised to operatebonded trucking at all airports in Indiafor Air France and Emirates.Presently, Shreeji gets maximumcooperation from all the airlines usingits bonded trucking services. ShreejiTransport has an excellent team,comprising cargo professionals, nowfully experienced in bonded trucking."Our people are dedicated, makingavailable to customers' calls 24x7,and personally present themselves atwork, on the spot", he added.Shreeji's bonded trucking operationsare efficiently managed by a tight-knitbrilliant team of professionals headedby Chief Coordinator Dileepa.Bonded trucking is a vital service,committed to time, Dileepa said. "BTservices are time-bound, guaranteeingsafe, secure transport of cargo,connecting to a specific flight. Allairlines using Shreeji's bondedtrucking are really happy with ouroverall quality in service and remainwith us as fully satisfied clients."Speaking about major advantagesof the BT service, Dileepa said whileusing BT service, airlines have theadvantages of huge reduction in freightcharges when compared to themovement of cargo on domestic flights."Without landing their flight, airlines canbecome an "online carrier" by usingbonded trucking service. Bondedtrucking may also move dangerouscargo on prior agreement and withcertain preconditions regarding Classand Division on danger. However,explosives, flammable liquids/solids,toxic and infectious substances are notaccepted by bonded truck operators.Odd dimension cargo, which cannot becarried by domestic airlines can betransported smoothly on bondedtrucks. Bonded trucks are capable ofuplifting 100 to 120 tons of cargo oreven more in one lot. And, bondedtrucks can be operated to alldestinations where all the airlinescannot operate their flights".50 CARGOTALK ACAAI - 2007 www.cargotalk.in

FREIGHTFORWARDERSSV FreightAwards line upCT BureauSV Freighthas beenawarded for"OutstandingPerformance" byLufthansa cargo ata glittering awardceremony heldin Bangkok onNovember 17,2007. SV Freightalso has beenhonoured by BritishAirways WorldCargo with"Valuable Support"award for the year2006 at an AgentsAwards functionwhich was held inGoa recently.The starting point of allhonours was hard work ofManaging Partner ShaileshRaje and his professionalisedteam. "It's all the result of our hardwork aiming at providing the serviceto customer for his satisfaction", saidRaje. And, quickly attributing thewinning of awards to a perfect teamwork, Raje said that the "credit goesto each and every team member". Asuccessful, tried and proven businessmethodology. According to him, theteam had never been hard-pressed."Every one has a free hand. Theydedicate to improve the customerservice and develop it", he says. Thekey to workforce flexibility isrecognising that every experiencedteam member is a potentialon-the-job asset.Shailesh Raje receiving British Airways World Cargo awardDuring an exclusive one-to-oneinterview with CARGOTALK, Raje saidthat the award from Lufthansa Cargocame for an excellent high volume ofall commodities transported onLufthansa. And, British Airways WorldCargo honoured by terming it as a"Valuable Support"To a question on the company'scold chain supply management, RajeShailesh Raje receiving award from David, Regional Director, South AsiaNear and Middle East, Lufthansareplied, "At SV Freight, we expect ahigh growth of very large degree inour cold chain supply managementbusiness in the years to come. Duringthe current year we have recordedmultiple growth rates".What are other service productsthat he would prefer to develop?ODC, he said. SV Freight is advancingfast to register a sizeable marketshare in ODC segment, he added."We are handling auto parts, anotherhigh growth sector."Emerging as a frontrunner infreight forwarding, consolidation andlogistics, SV Freight is aiming atproviding total solutions. "We servewith people having the expertise tomeet the requirements of customers",Raje says. Customs brokerage,distribution and domestic cargotransportation are among otherservices offered by SV Freight."Our ocean cargo forwardingservices have proven process thathelps in supporting cost reduction,productivity and improvement inconsistent overseas services",Raje said. SV Freight providesshipment services, both LCL and FCL,for a wide range of commoditiesincluding agricultural produces, bulkdrugs, clothing, electronics andmanufactured goods.52 CARGOTALK ACAAI - 2007 www.cargotalk.in

FREIGHTFORWARDERSEast West Freight Carriers:A single-window option for multiplex servicesCT BureauFounded in1974, East WestFreight Carriers isa Mumbai-basedfreight logisticscompany, providingservices to Asia,the Middle East,Europe, USA, Africaand Australia. In ashort span EastWest emerged as aleader in freightforwarding andpositioned itselfas a totaltransportationpartner tocustomers.East West Freight CarriersAffiliated to IATA, ACAAI andFIATA, the company'sextensive network ofworldwide partners offers greatadvantage to a smooth deliverycapability.A single user-and-suppliercombination is a great plus point fora customer using the service of aprovider who offers a real-time endto-endsolutions. The delivery normsmay change, from a day to a week orto a fortnight. But it is the totalresponsibility of the service provider,whereas the customer would beplacing himself in a comfortableposition to cut his inventories to anextent rising to 80 per cent, orsometimes increasing the inventoryreduction to a 90-per cent level. Theimportant part of every serviceprovider's strategies should,therefore, find ways to increase timedefinite delivery capabilities andincrease the customer confidence.It is often proved that industryexecutives hold the key for efficientcustomer service and the company'sfuture growth. The executives' moreambitious, imaginative visions will setpace of advancement into the excitingnew world of 21st century logistics.Customers will then be the primarybeneficiaries of the executives'motivation, efforts and high value byvirtue of their speed, which all havean impact on delivery. East West'sGeneral Manager Joy John is one ofsuch industry's top executives. He iswith East West for 18 years."On an average, in a year wehandle over 8,000 tonnes of freight",Joy said. Speaking to CARGOTALK , Joysaid that East West has over 210Joy Johnprofessionals, all are qualified and fullyexperienced. "They ensure deliveringof quality service, unmatchedefficiency and accurate information."With head office in Mumbai, EastWest Freight Carriers has exclusivedivisions for airport operations,consolidation, domestic cargo, ECS,express cargo, and ocean cargo. Withbranches in Ahmedabad, Bangalore,Chennai, Kolkata, New Delhi, Pune andTuticorin, the company covers India forcustomer-centric multimodal cargotransportation services.Asked him about furtherexpansion, Joy said, "Yes. It's on thecards".Speaking on the service standard,Joy said, "East West Freight Carriersbrings together all segments of freightservice, systems and skills customisingtransportation solutions that meetcustomers' specific needs. Theprofessionalised worldwide distributionsystem incorporating air, sea and landreduces cost by improving cargomanagement. We thus have developedtremendous confidence amongcustomers".East West Freight Carriers iswinner of awards for top performancein terms of volumes from almost allinternational airlines operating India."It is a recognition for our service, notonly from airlines, but from customerstoo", Joy said.To a question on logistics serviceat East West Freight, Joy replied thatpure freight forwarding is a thing ofthe past. "Intelligent logistics conceptsare what is looked for today bycustomers. East West Freight Carriershas experts working for totalIntelligent logistics concepts are what islooked for today by customers. East WestFreight Carriers has experts working fortotal efficiency, a combination ofknowledge and experience.efficiency, a combination of knowledgeand experience. Our logistics solutionsare individually customised to meetcustomer requirements".With a comprehensive andexhaustive global network, East Westis placed to provide the customerswith diversified services through asingle source. (Read again theopening para of this story.)Air, ocean, internationaltrade/consolidation, groupage,Customs clearance/brokerage,domestic cargo, express cargo andwarehousing include the serviceprofile of East West services, all underone roof. The company is ISO certified,has sound financial status, 14 officesacross India, and 180 associateoffices around the world.54 CARGOTALK ACAAI - 2007 www.cargotalk.in

LOGISTICSSERVICESTotal Group: Focusing onsetting new standards in logisticsV. RamanujamAcross theglobe, manysurveys haveshown that thecustomer'sperception ofproducts andservices deliveredis often describedin terms of leadtime and value(also read quality),regardless of thefact that what isdelivered doesmeet thecustomer'sspecifications.Vivek GuptaAnother form of qualityproblem is cost. Reductionin cost is generally relatingto poor quality, whichnecessarily may not be the right wayfor potential improvement of agrowing company. And, in India, asthis decade is increasingly becomingthe decade of the customer, only anestablished long reputation in qualityis offering a strong foothold in theindustry. (Again, read this in thecontext of mounting competition.)The past four decades havebeen witnessing a most persistentcontinuous quality improvement in atiny company that was started in1983 under the banner Surat GoodsTransport, which now has grown intoa most challenging freight andlogistics group branching out in over120 locations spanning India. "Ourgroup today is positionedstrategically not only in inlandsurface transportation but inlogistics, warehousing, shipping andair freight business", says VivekGupta, Managing Director,Interfreight Forwarders Pvt. Ltd., acompany under the umbrella of TotalGroup. Vivek's management andmarketing skills have takenInterfreight to new highs, while hispassion for freight forwarding drivingthe company's growing network."My goal is to take Interfreightaggressively into SCM sector to offerthe most valuable applicationsleading to a refined quality coupledwith possible reduction in cost", hesays, giving a hint to his focusedambition to work with partnersacross five continents to provide thecustomers with real-time end-to-endsolution.The parent company has been incargo trade during the past 40 years.From just transporting goods, Vivektransformed the group into a totallogistics solutions provider. In transportlogistics what does he aim to achieve?Vivek replied, "During the past 40years, we have successfully retainedour position in road transport industry.With the infrastructure of the countryis being redefined, Surat GoodsTransport has taken a significant stepforward in technology, adding newheavy duty fleets and upgrading ourperformance levels. What I considermost important is that we provide ourWe stronglybelieve that theIndian market isprogressing andgetting closerto meet theinternationalstandards.customer with high-performancetrucking service through acomprehensive countrywide marketingand support network meeting therequirements of our vendors."We strongly believe that theIndian market is progressing andgetting closer to meet theinternational standards for which thereis a genuine need in the industry forinnovative performance-linked servicequality. Our services are blended withstrong commitment. We concentrate inconstantly upgrading our fleets andIT systems besides training to ourmanagement and staff. I believethis is of paramount importance todeliver a value-added, location-basedservice to meet our customers'requirements".Asked whether he can establishthat Interfreight's basic experience intransporting cargo is now a strongfoundation for a new generationlogistics services provided by hiscompany, Vivek replied, "Indianeconomic growth is one of themost dynamic in the world. Severalsectors such as cargo, aviation,surface transportation and ITare booming in the country. AsSurat Goods Transport cementeda strong foundation, I believe thatthe foundation laid by Surat GoodsTransport is now leading us to avery high performance levels.This backbone, the experience, isnow giving us strength to penetrateinto the sun-shine segment calledsupply chain management anddistribution system".A question on today's logisticssector in India. Before a couple ofyears, the concept of logistics wasconsidered to be poorly growing. Buttoday, with a new standard ofquality, Indian logistics industry isexhibiting a marvelous growthmatching the West. How does Vivekview this quick metamorphosis?"India has a history that it adapts thechanging trends happening in theworld market place, steadily althoughslowly, meeting the challengesglobally and domestically. The needof the hour is that the serviceindustry should reach the status ofproviding a true single-windowservice to customers, manage theirinventories effectively in order tostreamline the processes and ensurethat both shipper and buyer aresatisfied.56 CARGOTALK ACAAI - 2007 www.cargotalk.in

FREIGHTFORWARDERSInterfreight Forwarders:Quality peaking with productivityV. RamanujamOffering a verybright outlook forthe trade andcommerce towhich it services,30-year-youngInterfreightForwarders Indiamaintains itssublime, overallservice quality infreight forwardingand logistics.Ravi RamaswamyMoving on the back of itsown 3-decade reputation,Interfreight, is servicing itsscores of clients, who areleading national and internationalbrands having their strongmanufacturing and supply presence incountries around the globe.Ravi Ramaswamy is a well knownname in air freight industry, from 1978when he joined D. Wamadeo & Co. andswitched over to Cathay Pacific Cargowhere he put up 25 years of service.And now, he brings his asset ofexperience to head InterfreightForwarders. His 30 years of solidexperience establishes that he knowsthe pulse of the industry. Now he hasaltogether a new experience -- froman airline back to a forwarder. Howdoes the change help Ravi to performbetter in customer service? "Returningto freight forwarding community aftera span of 25 years gives me greatpleasure", he says.In a very exclusive interview givento CARGOTALK , first after he joinedInterfreight, Ravi said teaming with thethree decade-old Interfreight groupwas a proud moment in his career. "Itgives me enough enthusiasm whileinteracting with customers who havedifferent requirements. I knew theservice is time-sensitive to the enduser.Secondly, warehousing anddistribution will be our value-addedservice in the Supply ChainManagement System."The new responsibilities offer mea unique platform to interacting withcustomers and briefing them ondifferent products of airlines which willbenefit to reach their cargo faster. Thisensures the customer is happy at theother end."Interacting with our globalpartners is another focus area for me,which develops inbound and outboundtraffic to our 120 plus locations in India.As we are strongly present in surfacetransport logistics during the past fourdecades, and shipping, warehousingand distribution being our core strengthin the past ten years, we have all thesupport to establish our base quickly inevery cargo hub in India."In the near future, we will beconcentrating more in SCM system, asector that is registering rapid growthin India. With logistics recording itsstrong foothold in this country and asIndia currently is on fast track under theworld focus as a major manufacturingand supply centre, we at Interfreightlook at every opportunity to tap themarket potential as a strategic serviceprovider of airfreight and ocean freight".In addition to airfreight, Interfreightis handling warehousing. The groupalready has its wide presence throughits own 120 offices in India. Does thisall mean that Interfreight is planning toaggressively enter the SCM sector?Ravi said, "Yes, of course. Our missionis to achieve, and sustain, commercialsuccess as a total logistics solutionsprovider. The group is backed by900,000 SQF of warehouse space,spread evenly over 50 locations acrossIndia. This helps us provide extensivedistribution services to our clients whoare global majors having multifunctionalrequirements to deliver. An internationallycompetitive environment hascreated the need for faster, efficient andhigh-end logistics solutions for growthand success at all levels".Asked him to brief us on thecompany's infrastructure such as coldchain and refrigerated vehicles, Ravisaid, "We handle all types of cargoes,including vaccines, pharmaceuticals,cut flowers and other perishables,automobile parts, engineering goods,leather products and general freightforwarding around the globe. Wealways move on a planned strategyand detailed analysis. We havealready created the requiredinfrastructure, which is further beingdeveloped with fresh investments. WeFrom a humble beginning in 1968 as Surat GoodsTransport, the group now is an established deliverysolutions provider operating through 120 offices inIndia besides overseas partnerships. The companyrepresents 32 airlines as Cargo Sales Agent in India.are also specialised in handlingvaluables, ODC and time-sensitivesmall packages. We are enteringinto projects handling, anothersignificant milestone to handle 1,500tonnes by air and sea".From a humble beginning in 1968as Surat Goods Transport, the groupnow is an established delivery solutionsprovider operating through 120 officesin India besides overseas partnerships.The company represents 32 airlines asCargo Sales Agent in India. It's a greatsuccess. And, the company's successgraph says the last word in customerservice quality.Before ending the interview, Ravithrew a bit of information: "We will nowfocus our service offerings to retailindustry in the country."58 CARGOTALK ACAAI - 2007 www.cargotalk.in

EXPRESSCARGOUPS volunteers over 2,000 hrswith communities across IndiaCT Bureau"While we arecelebrating the100th birthday ofUPS, our employeesaround the globeplan to spendthousands of hoursgiving back to thecommunity for itsannual GlobalVolunteer Week,which started onOctober 13", saidPirojshaw Sarkari,Managing Director,UPS Jetair ExpressPvt. Ltd., basedin Mumbai.Speaking to CARGOTALK ,Sarkari said in India, UPSemployees from ten citieshave volunteered over 2,000hours to spread cheer among theyoung and the old alike.Asked him to elaborate, Sarkarisaid that in Mumbai, over 200 hourswere dedicated to servicing wheelchairs; cleaning the garden andcourtyard; and maintenance work forthe residents of Cheshire Home. "AtOasis India, our volunteers scrappedthe institution walls to ready them forpainting, organised games for theyouth and shared their knowledge onjob opportunities in the expressindustry as a motivational exercise.The UPSers also conducted two craftworkshops for the children of DoorStep School. The activities includedpainting and decorating clay diyas."In Delhi, he added, UPSemployees spent around 300 hours ofquality time interacting with thechildren of Udayan Care, preparingfood and organising games for them.In Bangalore, more than 160 hourswere committed to cleaning the roomsand surrounding grounds for thechildren of Akkamahadevi SevaSamaja. The volunteers cooked a mealfor the children and wrapped up theday with games."In Kolkata, our employees spentover 80 hours in interacting with thechildren of Disha Foundation by wayof song, dance and nursery rhymesthrough the day", Sarkari said. UPSemployees distributed food packets forlunch and contributed gifts thatincluded a school bag, a water bottle,a pencil box and sports items.In Chennai, he added, UPSemployees visited Reach Children'sHome where they interacted with thechildren, organised games, distributedsnacks and concluded the day with adance session with the children."In Hyderabad, our employeesvisited the Missionaries of Charity -Mother Theresa Home for the sick,elderly and the destitute. Theemployees spent around 30 hours ofquality time interacting one-to-one withinmates of the home in gettingto know them individually and madeefforts to motivate them. They alsodistributed fruits, soaps and toothpaste.In its fifth year, Global VolunteerWeek was started to extend thecompany's long-standing commitmentto volunteerism. For the entire year,UPS employees are expected todonate more than 1 million volunteerhours in 2007."Across India", Pirojshaw Sarkarisaid, "UPS employees have embracedthe company's culture and take a lotof pride in participating towardsvarious social causes. This initiativegives a sense of gratification as wegive back to the society in which welive and operate.Sarkari volunteered efforts atOasis India in Mumbai.From planting tress in India totransporting food in New York, GlobalVolunteer Week projects were chosenby UPS employees in eachparticipating country. For example, hesaid, in Atlanta, UPS employees willprovide logistical support for theSusan G. Komen breast cancer walk;in Germany, employees will spend 430hours organising a distributionnetwork for 700 schools in Berlin; inGreece, employees will volunteer 150hours assisting with disaster reliefplanning for the Greek Red Cross; andin the Philippines, employees willvolunteer 2,100 hours clearing farmland and planting trees at school.Headquartered in Atlanta, thecentury-old UPS is world's largestpackage delivery company and aglobal leader in supply chain services,offering an extensive range of optionsfor synchronising the movement ofgoods, information and funds.60 CARGOTALK ACAAI - 2007 www.cargotalk.in

FREIGHTFORWARDERSFlyways celebrates25 years of reliabilityCT BureauUnleashingcapabilities of thecompany tocontribute to theimprovement ofcargo forwarding isthe potential forpersonalisedcustomer service.Often this quality isbeing exhibited witha blend of reservoirof talent and yearsof experience.The Chennai-based Flyways isthus a customer's option as thecargo forwarding company hasbeen offering optimum resultsto customers, mainly in terms of costsaving and time saving. This has beenone reason that Flyways this year entersinto its 25 years of success andreliability."Our tryst with this business hasmatured into a leading best cargo andfreight forwarder", says ManagingPartner T.K. Vijaya Sankar. Builton a perfect partnership withLawrence, Flyways has earned a strongreputation as developed on thefoundation of trust. Services offered aremany: air cargo forwarding, seafreight, Customs clearance andconsultation. "During the past 25 years,while accumulating experience ofcomplete logistics, we have gainedgood set of clients. Clients who remainloyal to us", Vijaya Sankar toldCARGOTALK . In the industry he ispopular as 'Viji'.TK Vijaya SankarFlyways handle all commodities, butspecialised in leather goods,handicrafts, brass metal items,perishables, industrial equipments,garments and live flora and fauna,transporting both by air and sea to alldestinations around the globe, offeringtime-definite delivery. Most of thecompany's customers constituteexporters from these industries. Flywayshas business association with leadingforwarders in Europe. Having closerapport with all international air carriersand shipping lines, Flyways has acredibility of winning a number ofawards from airlines for its outstandingperformance. The company coordinateswith Eastern Cargo Carriers inM Lawrencemaximising its delivery capability.Speaking about cost, Viji said, "Ourservices are reliable, bears quality andcost-effective. We reach the goods firstto market. We offer our customersbetter solutions to minimising cost".All cargo operations come underhis personal attention. "That enhancescustomer confidence", he says. Hispartner Lawrence takes care ofdocumentation and planning, assistedby highly experienced officers."Expansion? "Yes. Currently weare looking for business partnershipsfrom domestic and multinationalfreight forwarding companieslocated in any centre in India", saysVijaya Sankar.Future is bright for freight forwardersTA Varghese, Director, Aroscan Cargo TradeIt is well known fact that Indiancargo and logistics trade isgrowing in leaps and bounds.With the booming Indianeconomy, India has also become thecentre of global interest. As a result,the future of freight forwarders andlogistics players in India is bright.However, like any other trade orindustry, the air cargo industry isalso facing many challenges like thebureaucratic delays in pre-shipmentformalities, poor infrastructuralfacilities in airports and the nonprofitabilitydue to increasingsurcharges being imposed by thecarriers and forcible and impracticaltax laws.ACAAI, being the onlyassociation representing air cargoTA Vargheseagents in India, propose initiatingdialogue with the governmentauthorities, custodians of airportsand carriers to find permanentsolution to many of the issues andchallenges faced by the air cargoforwarding industry.Being a leading centre forinternational finance and trade withits truly global climate, Hong Kongwas chosen this year as the ACAAIConvention destination.62 CARGOTALK ACAAI - 2007 www.cargotalk.in

TECHNOLOGYUPDATEInteroperabililty in multi-modaltransport through standards adoptionRavi Mathur, CEO, GS1 IndiaTransport andLogistics is thelifeline thatsustains globaltrade. Because ofthe criticalrequirement ofefficiency inoperations acrossfacilities of multiplechannel partnersseparated by vastgeographicaldistances, the issueof interoperabilityacquires greatsignificance forthis sector.Ravi MathurInteroperability' is the capability torun business processesseamlessly across organisationalboundaries and to ensure timeboundprogress of goods through thesupply chain. End-to-end traceability,security and safety of shipments arerequired by buyers and suppliers,mandated by regulatory authoritiesand made possible by interoperablesolutions.Transport & LogisticsstandardsModern transport and logisticscompanies function in a hi-techenvironment marked by an incessantflow of physical goods and relatedinformation. Standardisation andsynchronisation of these elements isvital for ensuring interoperability.Standards act as a common globallanguage which is understood by alltrading partners across the globe.GS1, a global standards-basedorganisation, has facilitated thedevelopment of multi-modal standardsfor Transport and Logistics sector incollaboration with companies like FMLogistic, Frigoscandia Distribution,GEFCO, Geodis, Firmenich, DHLInternational, etc. The building blocks ofGS1 Transport and Logistics standardsinclude the GS1 Logistics Label, with amain & mandatory field: SSCC - SerialShipment Container Code - for theunique identification of logistic unitsworldwide; a set of business messagestandards in XML and EANCOM formats;number of Application Identifiers (AI)specifically developed for theidentification of logistics units, includingAI (401) Consignment number, AI (402)Shipment identification number, as wellas AIs related to identification oflocations.GS1 standards provide anintegrated solution for identification ofthe logistics units, automated datacapture and electronic datainterchange. Using a standardapproach to the numbering and barcoding of trade items and logisticsunits delivers benefits of speed,accuracy and cost savings in theprocesses of handling and distributionof goods throughout the entire SupplyChain. These benefits are enhancedwhen the GS1 identification standardsare applied in Electronic DataInterchange.These benefits include:• Seamless international supplychain management• Accurate information on thelogistics units, trade items,services and locations• Reduction in manual entry efforts• Facilitation of improvedtraceability of goods andshipments• Reduction in compliance costs oftrading partnersPilot with WCO proves GS1 SSCC'sutility as unique identifierAsuccessful pilot jointly conducted by the World Customs Organisation andGS1 has proved that GS1 Serial Shipping Container Code (SSCC) can beused as a unique identifier (or "UCR"). The pilot was carried out for the wineand spirits supply chain, where the SSCC was used to track shipments betweenAustralia and UK.Following the pilot's success, World Customs Organization (WCO) and GS1have signed a Memorandum of Understanding, agreeing to cooperate in thedevelopment of Supply Chain standards to meet the requirements of Customs.GS1's identification numbers can provide WCO with global standards forthe management of goods and assets and reconciliation of data.The use of GS1 standards could contribute to WCO's efforts to ensuresupply chain security, facilitate international trade and increase the efficiencyand predictability of Customs procedures at national borders.64 CARGOTALK ACAAI - 2007 www.cargotalk.in

CARGOINFRASTRUCTUREThese standards enableimprovements in operations efficiencyand internal supply chainmanagement, and offer compliancewith the demands of the tradingpartners and requirements of legalregulations.GS1 creates international andmulti-sectorial standards and helps toovercome barriers of internationalcommerce created by national andindustry specific standards. In definingthe business processes, transactionsand standards GS1 aligns withUN/CEFACT standards that alreadyexist or are under development. Thisensures further interoperability withtrading partners active in otherindustries.RFID standards in Transportand LogisticsTo promote adoption of RFID(Radio frequency identification)technology & EPC (Electronic ProductCode) standards in the Transport andLogistics sector, GS1 EPCglobal hasset up a Transport and LogisticsServices (TLS) Industry Action Group.The Group deliberates onimportant issues related totransportation, business functionalrequirements/specifications of internalprocesses & Import Export clearance.Use of EPC standards based RFIDtechnology enables full visibility ofconsignments, parcels etc in end-toendglobal supply chains through useof RFID tags affixed on physicalsupplies and their data capture usingRFID readers at various points in thesupply chain. Using the EPC Network,the identification, location andcondition of physical supplies can betracked in real time and communicatedto all trading partners.Various projects are underway toexploit optimally the use of EPC/RFIDtechnology for such mission criticalapplications as track & trace,GS1 EPCglobal and RFID standardsGS1 EPCglobal is leading the development of industry-driven standards forthe Electronic Product Code (EPC) to support the use of Radio FrequencyIdentification (RFID). GS1 EPCglobal comprises leading global firms and focuseson creating global standards for the EPCglobal Network. These standardsenable immediate, automatic, and accurate identification of any item in thesupply chain of any company, in any industry, anywhere in the world.EPCglobal NetworkThe EPCglobal Network is a community of trading partners engaged in thecapture and sharing of EPC-related data through use of EPCglobal standardsbasedtechnologies. Electronic Product Code Information Services (EPCIS) is acomponent of the EPCglobal Standards suite that supports the EPCglobalNetwork.Electronic Product Code Information Services (EPCIS)It is an EPCglobal standard for sharing EPC-related information betweentrading partners. EPCIS provides important new capabilities to improve efficiency,security, and visibility in the global supply chain, and complements lower levelEPCglobal tag, reader, and middleware standards.container security, asset managementetc. Port of Busan is deploying RFIDto help secure and expedite shipmentswhile the Hong Kong Airport hasimplemented a luggage trackingsystem which will greatly improvecustomer satisfaction, security &significantly cut the airport's operatingcosts.Improving interoperabilityWith exponential increase inglobal trade, the actors in the supplychain (manufacturers and materialsuppliers, retailers, logistic serviceproviders and carriers) are movingtowards more integrated andcollaborative relationships. Thesebusiness parties aim to achievegreater benefits of interoperability andimprove visibility of the flow of goodsthrough the supply chain. To providefurther impetus to this collaborativemovement, GS1 has launched the GS1Logistics Forum, which comprisesleading industry players like DHL Exel,Schenker, GEFCO, FM Logistic,Unilever, Procter & Gamble, etc.Among other things, the GS1Logistics Forum addresses the issueof interoperability -- one of the majorchallenges to a successful globallogistics solution. In a globalisedenvironment, trading partners arefaced with different business scenariosand data interchanges, especiallywhen they move into more advancedinteractions with Logistic ServiceProviders. Therefore these partnersneed solutions based on commonbusiness processes, commoncommunication and identificationsolutions to be able to overcomebarriers of interoperability andscalability. These solutions will lead tomore transparency of operations andvisibility of the flow of goods andultimately eliminate unnecessary costs.The foundation for these solutionsis the development of a frameworkof common business processes andrelated data communications inter-66 CARGOTALK ACAAI - 2007 www.cargotalk.in

CARGOINFRASTRUCTUREchanges and driving alignment on alllevels of these interoperations frommaster data alignment to financialsettlement. This framework is theLogistics Interoperability Model (LIM)developed by the GS1 Logistics Forum.The scope of LIM covers Transportand Warehouse management andincludes activities associated withthe movement of goods from thematerial supplier to the manufacturerto the retailer using logistic serviceproviders, and includes the return ofgoods. LIM spans over the followingbusiness functions:• Procurement• Planning• Warehousing• Transport• Financial settlementLIM envisages a seven step modelto achieve interoperability. The entireprocess begins with an "InteroperationAgreement". It defines the operationaland tactical elements between LogisticServices Provider and Client; the rolesand responsibilities as well asparameters and targets that have to bedefined, like master data management,warehouse and transport capacitymanagement, service delivery,frequency of rate review, payment,claims, systems security,About GS1confidentiality/non-disclosure agreement,traceability requirements, servicelevels (and other performancemeasures), quality management andrequirements and escalationprocedures.This is followed by Master DataAlignment, where definition of theitems, locations and routing codesused in the logistics execution toensure that both parties have thesame and unambiguousunderstanding of this basic supplychain information.The Logistic Services Conditionsdescribes the commitment betweenthe logistic service client and thelogistic service provider on executionof the agreed service aroundwarehousing, transport or both, for agiven period and at the statedrate/price. The Logistic ServicesConditions define the relevantcontractual data to be able to invoicethe logistic services rendered. It doesnot intend to cover the totality of thecontractual data.Planning focuses on futureactivities in relation to warehousing ortransport and aims to ensure capacityfor the fulfillment of requestedservices. For warehousing capacitythis applies to the storage volume andresource capacity. For transportationGS1 is an organisation dedicated to improving the efficiency and visibilityof supply and demand chains, globally and across sectors. Our diversifiedportfolio of products, solutions and technologies includes the GS1 System ofstandards (the most widely used standards system in the world) as well asGS1 BarCodes, GS1 eCom, GS1 GDSN, EPCglobal and Traceability. GS1 alsooffers a wide range of services, including training, certification, technicalsupport, and implementation advice. GS1 operates in more than 20 industriesand sectors in 108 countries, and addresses all aspects of the supply chain,enabling a million companies of all sizes to execute more than five billiontransactions a day. For more information, visit www.gs1.org.About GS IndiaGS1 India is a standards-based not-for-profit organization promoted by theMinistry of Commerce and Indian Industry to spread awareness andprovide guidance on adoption of global standards in Supply Chain Managementby Indian Industry for the benefit of consumers, Industry, Govt. etc. For moreinformation, visit www.gs1india.orgcapacity this applies to transportvolumes and timings.Capacity planning is driven by themonthly and/or weekly forecastedshipments/pallets/picking until theactual demand (shipment) is releasedto the Warehouse and or TransportProvider via a delivery instruction (fortransport booking, order picking,packing and loading). In some cases,actual planned shipments are availableto increase forecast accuracy.Warehousing is the receipt,storage, and preparation of productsfor customer delivery on the basis oforders. It also includes all involvedadministrative activities. Within storagethis also covers the control of stocksincluding traceability in thewarehouse. The return flow ofproducts and materials in the supplychain is also included, like productrecalls and reverse logistics for emptypallets or crates. On top of thesewarehousing activities, additionalservices may be rendered like, dryfilling, repacking for promotions, restackingor re-labeling are alsoincluded.Transport is the movement ofgoods from factories to warehouses ordepots (collection), the movement ofgoods from warehouses to thecustomer delivery locations (delivery)and the monitoring of thesemovements.With respect to transport modesthe LIM model aims to be modeindependent so it can be applied toroad, rail, ocean and air. Focus is oncontinental transport modes. For roadtransport this includes Full Truck Load(FTL) transport, Less Than TruckLoad (LTL) transport and Parceldistribution.Financial Settlement covers theprocess from where the services aredelivered to the Logistic ServicesClient to the confirmation of paymentby the Logistic Services Provider.Financial settlement takes placebased on the actual volumes / weightof the goods serviced, according tothe Logistic Service Conditions.Financial settlement mainly differsdepending on whether the invoicingprocess is triggered by the LogisticServices Provider (traditionalinvoicing) or by the Logistic ServicesClient (self-billing).68 CARGOTALK ACAAI - 2007 www.cargotalk.in

LOGISTICSHUBHong Kong:Turning China into opportunityCT BureauHong Kong isa leadinginternationalbusiness centre andan ideal tradeplatform forcompanies toeffectively managetheir China strategy.Hong Kong's vibranteconomy, ideallocation anddynamic peoplecan help youcapture theopportunities.Vibrant EconomyAsia's no. 1 internationalfinancial centre• The world's freest economy - freeflow of capital, information andgoods.• One-country, two-systems ensuresboth the autonomy of Hong Kong'slegal and economic systems anddirect access to the mainlandmarket• Convertible currency linked to theUS dollar• Transparent, secure businessenvironment, strict intellectualproperty protection andenforcement• Rule of law and familiarinternational business practices thatmake doing business easyLocated at the optimalsouthern point of theChinese mainland• Draws on the entire Pearl RiverDelta for manufacturing andbusiness expansion• One of the world's largestinternational sea and cargo centres• Advanced transport and logisticsnetwork• Hong Kong companies receivepreferential access to the Chinesemainland under the CloserEconomic Partnership Arrangement(CEPA), which acts as free tradeagreement• Trendsetter and brand platform toreach mainland consumers• Large numbers of mainland touristsEntrepreneurial businessculture, talented people• An international city that speaks thelanguage of global business• People with entrepreneurial driveand experience in both Western andChinese cultures• Abundance of local, mainland andoverseas technology and MBAgraduates• Bilingual (English and Chinese)• Strong work ethicHKTDC: Connecting tobusiness opportunitiesConnecting Customers:• Over 30 international trade fairseach year, seven being Asia'slargest, offer you a sourcing andtrading platform that attracts qualitybuyers and exhibitors• Over 300 promotional events eachyear help you explore your businessopportunities in Hong Kong• tdctrade.com sourcing, providesyou with access to more than100,000 supplies from Hong Kong,the Chinese mainland and othermanufacturing centres around theworld• Product magazines feature productofferings from quality suppliers froma variety of industries for maximumbuyer's choice• Design Gallery, a retail outletlocated at the Hong KongConvention and Exhibition Centreand the Hong Kong InternationalAirport showcases the newest andbest products of Hong Kongdesigners and builds awarenessamongst international clientele.Hong Kong as Logistics HubHong Kong Airport:• An important multi modal logisticshub in China.• Located at the heart of the AsiaPacific region.• Least flying time to reach majormarkets.• Covered half of the worldpopulation within 5 hours flyingtime.• Located at the estuary of the PearlRive Delta, being a majorinternational gateway hub of China.• Free port, enhanced security,regulated agent regime (RAR).• Streamlined customs process.• 24x7 operations.• Highest standards in safety, securityefficiency and service.70 CARGOTALK ACAAI - 2007 www.cargotalk.in

LOGISTICSHUB• Dedicated air cargo apron withfreighter parking stands to beincreased from 24 to 34.• Franchise the air cargo facilities tothird party service providers.• Over 80 airlines operating some750 flights daily to 150 majordestinations in the world.• To and from 40 cities in mainlandChina.• One stop multimodal cargo servicesto/from 17 ports in PRD.• Two cargo terminal operators(CTO) provide air cargo handlingservices to all airlines, Hong KongAir Cargo terminals Ltd (HACTL)and Asia Airfreight Terminal Co Ltd(AAT).• Express Cargo Terminal: DHLCentral Asia Hub.• Air Mail Hub: Hong Kong Post.Advanced CargoInfrastructure:Asia Freight Termial (AAT):• Designed capacity 1.5 million tonsper anuum (T1+T2 afterexpansion).• New Terminal-2 involved HK$ 1.75billion investment commencingoperation at the end of 2006.• Automatic cargo handling system.• Special cargo handling facilities:strong/cold room, frezer,dangerous goods room, radioactive room.DHL Central Asia Hub:• First dedicated express cargoterminal at HKIA.• Handles over 20,000 parcels and15,000 documents per hour.• Undertakes a US$ 110 millionexpansion completed by 2007.• Become the first large scaleautomated express hub in AsiaPacific then the Central Asia SuperHub.• Processing 35,000 parcels and40,000 documents per hour afterexpansionHong Kong Air CargoTerminal (HACTL):• Designed capacity: 2.6 million tonsper annum.• State-of-the-art automated cargohandling system.• Special cargo handling facilities forperishables, live-stock, horse,valuable cargo handling centres,express centre.• SuperLink China Direct: one-stopcargo service to/from PRD.‘Accept us asan industry’Ravinder Katyal, Director, UT Worldwide (India)Future of freight forwards isvery bright and India is anemerging market. With rupeeappreciation we are expectinglot of increase in import sector anddefinitely low trends from exports.India is an upcoming market andworld is looking very closely.We have seen retail business isbooming in India and logistics playershave to play a very vital role withinIndia/international business.Rupee appreciation, however, ismajor challenge for export side.Infrastructure and bureaucracy areother major bottlenecks. We must takeup non commissionable issue onsurcharges in ACAAI also along withother burning issues viz industrystatus, service tax and cargo villageconcept.ACAAI is a strong body andshould take up all the issues relatedRavinder Katyalto our sector with ministry level. Weare very important channel in thegrowth of the country and should berecognised by the governmentaccordingly. The government shouldcreate good infrastructure to reducedual time and establish cargo villagefacility for the forwarders. Accept usas an industry.Common interest issues should be highlightedSL Sharma, MD, Skyways Air ServicesSL SharmaIt must be acknowledged that therehas been tremendous developmentin all the fields which are importantfor expeditious and smoothhandling of air cargo. It has also to bekept in mind that whole world has nowbecome a global village. Boundarieshave blurred, distances no longer lookbig and click of a button helps you toget connected any where around theglobe.It will not be wrong to say thatwe have still to make significantimprovement in infrastructures,support system and procedures.Needless to say that we are nowworking in the worldwide competitiveenvironment. Cutting edge inperformance will make you the winner.Other thing which matters a lot isreliability and uninterrupted availabilityof the services and facilities. Standbyarrangements have to be in place incase of interruptions or breakdowns.Value of human resource has to berecognised and all of us have to beprofessional in its true sense. ACAAI ismaking a significant contributions invarious fields and is also a member ofthe Core Group under the ministry ofcivil aviation.Hong Kong is an important hubto connect far east and rest of Asiaand thus will provide a meaningfulopportunity to discuss issues for thedevelopment of the freight forwardingtrade and its immense contributions inexport. Matters of common interestlike Service Tax matters, regulatoryprocesses, world class infrastructure,EDI , technology, human resource andprofessionalism will be deliberatedduring this 35th ACAAI Convention.Recommendations will be crystallisedand then forwarded to the minister ofcivil aviation for its implementationthough the Core Group.72 CARGOTALK ACAAI - 2007 www.cargotalk.in

EXCLUSIVEINTERVIEWPerfection is the key to successRatan Kr PaulIn the freightforwarding andlogistics industry inIndia, a fewindividual has hadvast experience likeKapil Dutta,managing director,BALtrans logistics(India). Cargo Talkhighlights his 35years' professionalcareer and issuesrelated to freightforwarding andlogistics industry,with an objective topersuade thegeneration next.Kapil DuttaBorn on July 24, 1951 inJabalpur, Dutta did hisBachelor of Science fromDelhi University. He ispossessing rich experience inforwarding, logistics and supply chainmanagement.Sharing his experiences Dutta said,"There are many interestingexperiences during long carrier of 35years in the freight forwarding andlogistics industry. I was responsible forturning the dormant and loss makingMNCs in India into most profitable andefficient units."Dutta gained experience in topIndian forwarding companies and lateron headed American multinational EGL(erstwhile Circle Freight) in India for 7years.He had a short stint as managingdirector with MNC from Europe, Geodis,before entering into a joint venturecompany with a Hong Kong based MNC,BALtrans Logistics and set up theiroffices in India.The veteran in the industry addednew dimensions to the freightforwarding industry by setting up stateof-the-artwarehouse and distributioncentre of a mega blue chipinternational company and that projectlater on became a role model for theirworld-wide distribution network byachieving 100 per cent accuracy ofstock inventory and distributionnetwork with record TAT.Dutta was among the first few toget involved in import consolidationands 3PL operation business andestablished these new trends in theindustry successfully.Commenting on the current trendsand challenges, Dutta pointed out,"There is great imbalance in capacityversus demand especially in the airfreight whereas sea fright continues tothrive and gain greater heights. Thereis great challenge for traditional customclearance agents and fsorwarders tomanage the total supply chain whichincludes vendor source, track andtrace, custom clearance and doordelivery that means end to endlogistics." According to Dutta, IT whichrequires heavy investment in terms ofbig network and software plays a majorrole specially in managing 3PLoperation including distribution centreas customer likes to have a glasspipeline visibility from their office."There is a sea change betweenpast decade and this as earlierForwarders' whole time was focused onmanaging the limited capacity available,getting carting orders and sendingshipments in time bound mannerspecially in the peak period. Where as,now it has graduated to completemanagement of consolidation, logisticsand distribution systems," said Dutta.He also added that at presentgovernment procedures and formalitieshave comparatively become muchsimpler though not hassle free. Thething which haven't changed, is theagents nightmare with collection offreight charges.In Dutta's opinion, due tointernational acquisition and merger bigplayers and MNCs are real challenge tomiddle level forwarders, though thereis lot of scope for small players (briefcase operators) who will still survive."To be strong in your own country, it isimportant to have complete network ofoffices or tie-ups for providing allservices under one roof. The name ofthe game will depend on the valueaddition and looking forwardingbusiness beyond airport to airport i.e.door to door in most efficient manner,"he went on.Questioned on the secret behindthe success of a professional career,Dutta unveiled his mantra, "There is nobig or small work, but whatever onedoes, it must be done with perfection.Work Hard, Work Smart and have Fun."He also feel that one shouldcontinuously up grade job knowledgeand encourage sincerity, honesty anddedication towards work which alwayspays. "Be upfront in your dealings. Leadyour team with examples. Be open andhonest with your customers," he said.Dutta was among the first few to get involvedin import consolidation ands 3PL operationbusiness and established these new trendsin the industry successfully.Sharing his philosophy about lifeleading, he observed, "If you want tobe happy look at the people below you,and if you want to progress look at thepeople above you, but in either casedo not lose your mental balance."Dutta admires the most SunilDutt, Mukesh, Indira Gandhi in thefield of Indian films, music andpolitics respectively. He is fond ofcricket and golf.Commenting on the role of thegovernment to develop the cargoindustry in the country Dutta viewedthat the government should takequick decision rather than appointingcommittees. "To provide reliable andefficient infrastructure and evencreating a, cargo hub for freightforwarder fraternity, is need ofthe hour.74 CARGOTALK ACAAI - 2007 www.cargotalk.in

CARGOINFRASTRUCTUREKolkata Airportmodernisation in trackCT BureauPraful Patel,minister for CivilAviation, recentlymet the BuddhadebBhattacharjee, chiefminister of WestBengal to discussthe modernisationof the Netaji SubashChandra BoseInternationalAirport, Kolkata. Apresentation wasalso made to thechief minister in thisregard. The Projectof modernising theKolkata Airportenvisages aninvestment ofRs. 2000 crore.Some of the importantupcoming infrastructure atKolkata Airport will be anIntegrated PassengerTerminal Building at an areameasuring more than 180 thousandsq.mt. with 104 check-in counters, 22immigration counters for arrival and22 for departure, 25 security gates -9 for international and 16 for domesticpassengers, 5 conveyer belts and 15Aerobridges.It may be recalled that onApril 18, 2007, the Committee onInfrastructure (COI)headed by the prime minister decidedthat the Kolkata Airport would bedeveloped by the Airports Authority ofIndia (AAI) from its own resources andan Inter-Ministerial Group (IMG)formed under the chairmanship of thesecretary, ministry of civil aviation,would finalise an Action Plan for thedevelopment of Kolkata Airport.Following the decision of the COI,Letter of Intent was issued to theconsultants on May 30, 2007 andJune 1, 2007. The AAI receiveddetailed Project Report (DPR) fromthe consultants on June 30, which wasconsidered by the ministry of civilaviation and approved by the AAIBoard on August 3, 2007.The consultants appointed for themodernisation of Kolkata Airport are:Sikka Architect and Associates withconsortium partner RMJM (HongKong) and Virendra Khanna andAssociates with consortiumpartners ADPI (Paris).Praful PatelAt present the Kolkata Airporthas a passenger handling capacity of0.73 million international passengersannually and 4.7 million domesticpassengers annually which is likely tosaturate by year 2008-09 and 2006-07 respectively. AAI has recentlyadded cargo-handling capacity to theairport, which is sufficient to cater tothe demand up to 2015-16. In2006-07 there were 65687 aircraftmovements of which 9414 wereinternational and 56273 domestic.The passenger traffic in 2006-07was 5993058 of which 805191were international (registering agrowth of 12 per cent) and5187867 was domestic (registeringa growth of 20 per cent).In view of these facts, thedecision has been taken to develop amodern Integrated PassengerTerminal Building to handle 20million passengers, which will besufficient to meet the demandup to 2015-16. Work is already inprogress for 9 domestic bays.Three cargo bays and 11 additionalparking bays will be constructedalong with the new IntegratedTerminal Building. Automation willbe introduced in the CNS/ATMoperation and a new control towerwill be built.76 CARGOTALK ACAAI - 2007 www.cargotalk.in

CARGOINFRASTRUCTURECargo Infrastructure at BIALCT BureauThe 1,930 croregreenfield airport inBangalore, which isbeing constructedby BangaloreInternationalAirport Limited(BIAL) withinrecord 32 months,is scheduled to beoperative in March30, 2008. All thedomestic andinternational flightswill take off from orland at this airportthen, instead of theexisting airport.Cargo Talkspresents thehighlights of thecargo operations atthe airport.Bangalore InternationalAirport Limited (BIAL) willprovide at the new airport,cargo facilities to promotethe flow of goods from the city andhinterland of Bangalore. The cargoinfrastructure at the new airport willconsist of two separate terminalfacilities built and operated by:1. Air India SATS Joint VentureConsortium; and2. Menzies Aviation Bobba(Bangalore) Pvt. Ltd.Air India SATS CargoHandling FacilityAir India (AI) and SingaporeAirport Terminal Services Ltd (SATS)are developing a state-of-art cargohandling facility for international aswell as domestic cargo. The facility willhave a two-floor warehouse with agross floor area of 18,000 squaremetres and a design capacity tohandle more than 200,000 tonnes ofCargo. One floor of the facility isdedicated to process export andimport of international cargo, whilethe other is for domestic purposes.The Air India-SATS consortium willinvest about Rs. 100 crores inthe facility.The facility will be able handle alltypes of cargo; general cargo,perishable cargo, courier, mail andspecialised cargo (dangerous goods,live stock and human remains). Thefacility will be equipped with the latestMaterial Handling System (MHS) forcargo handling and tracking within thewarehouse. Some of the key featuresof the facility are Elevated TransferVehicle with 2-level storage,Automated Storage and RetrievalSystem (ASRS) for loose cargo,lowerable workstations for easybuildup/breakdown of ULDs and docklevelers to cater to trucks of differentheights.Menzies Aviation Bobba(Bangalore) Cargo HandlingFacilityThe second cargo facility is beingbuilt and operated by Menzies Aviationand Bobba Group. It has an initialcapacity of 150,000 metric tons andan investment of approximately Rs. 95crores.The warehouse, planned on 7.3acres, will include both internationaland domestic operations and will havea vertical expansion growthpossibility. The officecomplex on theground floor has provisions for abusiness centre, bank, ATM, facilitycounters and waiting lounge. The firstfloor will house customs offices, thesecond custodian offices and airlinesand Trade Partners offices areplanned on the third. The facilitiesinclude a Pallet Handling System forstorage of built up pallets/containers,X - rays, cold storage, a secured areato load and unload with a canopy, atrans-shipment room, an advancehandling IT system and anunaccompanied baggage room.The future of air cargo atBIALThe present airport infrastructureat Bangalore is severely constrained.The cargo volume at the present HALairport in Bangalore amounts to167,000 tonnes annually.Both the cargo terminals at thenew airport can be expanded whenthe need arises. Furthermore, BIALhas the land reserve to allowmore cargo terminal operators tooperate at the new airport in orderto boost cargo volumes. The newairport will see both a quantitativeincrease, in terms of facility area,and qualitative improvement, interms of storage and handlingcapabilities, to promote the inflowand outflow of goods.78 CARGOTALK ACAAI - 2007 www.cargotalk.in

TRADEMEETDIAL unveils cargo plan at ACCD lunchRecently, the Air CargoClub of Delhi hosted aluncheon meet at hotelUppal's Orchid, NewDelhi. Guest speakersfrom GMR, whichoperating DelhiInternational Airport withJV called DIAL, were KSKunwar, Sanjiv Edward,Yogendra Tomer andRupan Sidhu to speak onthe overview of themodernisation of DelhiAirport and chief featuresof the facilities availablefor cargo operations.80 CARGOTALK ACAAI - 2007 www.cargotalk.in