April 09

APRIL | 2009

A monthly publication ofDurga Das Publications Pvt. Ltd.

con t e n t sDEPARTMENTSAirlines NewsCathay Pacific Delhi-Bangkok non-stop service ..........................................................6

Calendar of EventsCalendar of International Logistics Events ...............8

Logistics ServicesPSBediGroup: Platinum sponsor of IELA Congress in London..........................................26

Safexpress calls for strengthening SCM to cope with recession ....................................30

New Globe Logistik holds customer familiarisation event.................................................36

Cargo PerformanceDelhi Airport for February 2009 ..............................28Mumbai Airport for February 2009 ........................29

Shipping and Ports ‘Gateway Terminals’ commissions 2 new quaycranes at Nhava Sheva..............................................32

Maersk Line’s ME3 service to call at Pipavav Port ...............................................................33

COLUMNSInfrastructure UpdateICD Loni completes 2nd year; assures safety and security ................................................................31

Guest ColumnLogistics in India gears up to meet

growing demand ......................................................38

Cover StoryIndian logistics industry set to position itself forlong haul

ExpressLogisticsDeccan Express Logisticsset to make its Nagpurhub a coonecting point

LogisticsServicesMercurio-Pallia Logistics to offer automotive logistics

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24

10

16

6 www.cargotalk.inCARGOTALK APRIL - 2009

LOGISTICSSERVICES

The Mumbai hub is now spread

over an about 2 lakh sq ft of area

and a state-of– the-ar t warehouse

with latest operational amenities,

which makes work easier. CARGOTALKspoke to Madhukar Shyam Singh,

regional manager (marketing)-West,

Om Logistics.

Located on Nasik Highway, 7 km

away from Mankoli Naka, the

warehouse has been constructed

keeping in mind the present scenario

of operational activities. “With a

working capacity of 24x7, this

warehouse connects to other major

OM warehouses in Pan India, via

direct routes to all metro cities, to

satisfy about more than 100 clients

from Mumbai with committed transit

time,” said Singh. He added that at

this warehouse all warehouse

management solutions are being

provided to the customers. The

company holds regular programmes

to educate its staff so that they

can understand material handling

techniques to reduce the trans -

shipment time. The company is

also planning to provide better

services utilising the advancement

in IT technologies.

According to Singh, despite the

present slowdown in the market,

Indian logistics industry will see huge

growth. “Among the factors

responsible for the rapid growth of

Indian logistics include the growth of

organised retail industry, commodity

markets, growth in manufacturing

and development of Special

Economic Zones (SEZs),” he said. In

his opinion, Mumbai along with

Kolkata, Chennai and Hyderabad,

have become preferred locations for

logistics parks for the logistics

players. These locations are ideal for

logistics parks because of their

excellent por t, rail, and road

connectivity as well as significant

investment in infrastructure. In the

near future eight logistics parks with

an approximate investment of $200

million, will be located in 600 acres

of land around Mumbai. Almost all

logistics players are in the process of

setting up their warehouses here,

container freight stations, inland

container depots, logistics parks,

distribution centres and other

facilities to tap the trade

opportunities fuelled by revolution in

the retail, ports etc.

Indian Railways has also planned

mega multimodal logistics parks

(MMPLs) or hubs providing state-of-

the-art integrated logistic facilities with

mechanised handling and intelligent

inventory management at selected

locations along the dedicated freight

corridors to reduce the overall

logistics cost in the supply chain for

the customers to meet time-sensitive

freight transportation requirements.

“These along with other

opportunities have widened the role

of logistics in the coming time. Being

a mutli-model solution provider, we

are elaborating more to tap these

oppor tunities with a specialised

workforce, a professionally trained

team, best IT features which allow

24x7 online tracking and tracing of

shipments, latest operational

amenities,” informed Singh.

Om Logistics gearing up

to tap opportunities in Mumbai region RATA N KR. PAU L

In recent

times Om

Logistics

has developed

its operations in

Mumbai region,

which is one of

the major hubs of

the company.

Madhukar Shyam Singh

“With a working capacity of 24x7, this warehouse connects to other major OM warehouses in Pan India, via direct routes to all metro cities”


CALENDAROF EVENTS

Calendar of International Logistics EventsLogiPharma Europe 2009

April 21-23, 2009Geneva UNITED KINGDOMTel: +44 (0) 207 368 9465 Fax: +44 (0) 207 3689401Email: [email protected]

Materials Handling Middle East 2009May 31-June 2, 2009Dubai UNITED ARAB EMIRATESMesse Frankfurt GmbHTel: +971 4 338 01 02 Fax: +971 4 338 52 72Email: [email protected]

GSA & IET International Semiconductor Forum

June 2-3, 2009Munich, Global Semiconductor Alliance (GSA) Tel: +972-866-7579 Fax: +972-239-2292Email: [email protected]

European Supply Chain & Logistics Summit 2009

June 8-10, 2009Dusseldorf,

Wor ld Trade Group Tel: +0044 207 202 7560 Fax:+0044 207 202 7600Email: [email protected]

How to Lay Out a Warehouse orDistribution Center

June 8-10, 2009Chicago ILUniversity of KansasTel: +785-864-7861Email: [email protected]

International Defence Logistics 2009

June 9-11, 2009Brussels NSTel: +00442073689465 Fax: +00442073689401Email: [email protected]

Supply Chain Distinction Awards 2009

June 9, 2009Dusseldorf, World Trade Group Tel: +0044 207 202 7560 Fax: 0044 207 202 7600Email: [email protected]

Platts European Utility Supply Chain:Developing a Sustainable and EfficientPower Infrastructure

June 22-23, 2009London, McGraw-Hill Tel: +44 (0) 207 176 6226 Fax: +44 (0) 207 176 8512Email: [email protected]

Supply Chain's Look Ahead

June 24-26, 2009Henderson NVSMC³Tel: 770-486-5881Email: [email protected]

International Freight Week

October 18-20, 2009Abu Dhabi UNITED ARAB EMIRATESIIR Middle EastTel: 00971 4 336 5161 Fax: 00971 4 335 3526Email: [email protected]


EXPRESSLOGISTICS

Vital keys to efficient express

logistics are the use of high-

quality transpor t modes for TD

delivery, effective use of operational

system and people who perform. A

standard quality, superior express

logistics company will devote more

attention to capturing these aspects

in its operation. Doing so may require

significant times to gain experience

and expenditures to create such a

system to work. Since modern

models of logistics operation are

also aiming to reduce cost, the

suppor ting low-cost segments

involved in overall performance will

help the service provider to maintain

the cost level. Ultimately, it is the

customer who will benefit with

delivery, cost and value addition.

Replenishment of express

inventory management systems that

routinely require operation planners

to do away with unnecessary cost to

operations is also essential as it

makes a vir tual “black box” supplying

information to the company’s top

management on overall performance

and cost. Such systems, periodically

improved by operations managers,

lead to exciting new methods for

achieving TD delivery and quality

improvements that bring new

business to the company. Such

periodical improvements are vital

because the customer will look for

state-of-the-ar t distribution systems

at his service provider’s

management. And, the customer

is always right.

The cornerstones of these new

service techniques are already in the

schedule of Deccan Express Logistics

which achieved its first milestone for

its state-of-the-art express cargo hub

at upcoming Multimodal International

Hub Airpor t in Nagpur. Lately, the

company received approval for the

structural design for its aircraft

hangar, marking the first step that

Deccan Express Logistics has taken

towards creating countrywide

infrastructure to become India’s new

distribution and delivery system.

The hub will spread across a

100-acre campus strategically

located at Nagpur’s B.R. Ambedkar

Airpor t. “The express cargo hub

would be the beginning of our

investments in infrastructure,” he

said, adding, “It will handle majority

of cargo volumes moving on Deccan

Express Logistics network, thereby

controlling the distribution of

shipments across the country,”

explained Capt. Gopinath.

A former army officer and an

award winner in sericulture, Capt.

Gopinath made his foray into civil

aviation in 1995 when domestic

aviation was largely monopolised. He

identified the potential of helicopter

char ter business and launched

Deccan Aviation, a dedicated

and customer-focused helicopter

company. Today, the company is

India’s largest and most reputed

private sector air char ter service

provider. Capt. Gopinath found the

potential of a billion travellers

including those from Kolhapur,

Gwalior and Belgaum. That resulted

in the creation of Air Deccan, India’s

first low-cost carrier. Air Deccan grew

to fly 350 flights a day to 65

destinations from the modest four

Deccan Express Logistics set to

make its Nagpur hub a connecting point V. RA M A N U JA M

Captain G.R.

Gopinath,

chairman and

managing

director, Deccan

Express

Logistics, spoke

to CARGOTALK.about the express

cargo hub.

Capt. Gopinath

“The hub will handle majority of cargo volumes moving on Deccan Express Logistics network”


EXPRESSLOGISTICS

flights. In 2008, the airline was taken

over by Kingfisher Airlines. He is now

focusing on Deccan charters and has

entered into the ever-growing cargo

sector and express logistics.

Earlier, in a corporate message,

Capt. Gopinath said that Deccan

Express Logistics is aiming at

delivering superior customer

experience. When asked what will be

the major aspects of superior

customer experience, he replied,

“Customer is at the core of our

business. Our five pillars of strength

are our employees, our customers,

the community in which we operate

our investors and our par tners. Of

these, our customers are our raison

d’être. Therefore, we will

continuously strive through

innovation and service to make their

experience wor thwhile. We will set

new standards and ensure that we

are the first choice for customers in

express transpor tation. And that’s

precisely the reason why a world

class offering is ingrained into our

strategy at the planning stage itself.

“We will be the first express

logistics company in India to create

a hub-and-spoke distribution model,

thereby offering unmatched

connectivity to more than 85 per cent

of India’s GDP. Our state-of-the-ar t

express cargo hub will be centrally

located at Nagpur and will

interconnect the entire country. This

will include smaller cities and towns

like Hubli, Bhadohi and Amravati, etc.

“We will deliver innovative

express logistics solutions and

significantly reduce the transit times

between small towns and the rest of

the country. We are making significant

investments in our technology for

better services. Our technology

solutions will enable businesses to

achieve greater efficiency by offering

complete supply chain visibility

enabling them to track shipments

online; 24 hours a day, seven days a

week, in just a matter of minutes.

“Our employees will be trained

and motivated to go that extra mile

to see to it that our customers

experience a seamless service in

every interaction with us. The service

industry is about people and without

adequate investment in training and

service failures are inevitable. We

give a lot of importance to customer-

centric processes to enhance

customers’ experience. We have

managed to narrow down ‘superior

service’ to a science, wherein

customers will be categorised and

serviced based on their individual

needs. We will offer customised

solutions so that customers can ship

their documents, parcels and

commercial consignments without any

hassles. All this will help us offer

unmatched services in domestic

express transportation.”

The Captain has created a core

team with a consolidated experience

of 100+ years in express and

logistics sector. He is setting up a

state-of-the-ar t hub while focussing

attention on creating a network of

spokes in 85 per cent of India’s GDP.

When questioned how he estimates

the current size and growth during

the coming decade, Capt. Gopinath

said, “With a trillion dollar GDP, the

Indian air cargo market is primarily

served as a by-product of passenger

Our five pillars of strength are ouremployees, our customers, the community in which we operate, ourinvestors and our partners


EXPRESSLOGISTICS

fleet and infrastructure. To sustain

the growth India has seen in GDP and

high value manufacturing ver ticals

like electronics, automobiles and

pharmaceuticals to name a few,

it is cer tain that we will witness a

growth in air cargo.”

The express industry in India has

been growing at a CAGR of 17.2 per

cent with revenues of US$ 1.06 billion

in 2006-07. The logistics industry has

been estimated at 11.8 per cent to 13

per cent of GDP and continues to be

a critical factor for sustained growth.

Over the last decade, the industry has

progressed from being a

transportation mode for documents

and small packages to a supply chain

oriented enabler of commerce. The

industry has been forecast to grow at

around 20 per cent per annum for the

next five years and expected to double

in size by 2012.

“Infrastructure and economic

challenges aside, the industry will

sustain growth and continue to be the

cornerstone of the country’s

economic progress. As companies

and industries attempt to limit

logistics costs and remain

competitive, express and logistics

service providers will rise to the

challenge,” he added.

“Deccan Express Logistics aims

to achieve this positive change

across the nation where big and

small businesses have similar access

to all markets. With this vision, I have

put together a team of professionals

who are the best in their respective

domains. Each one of them comes

with vast experience having worked

with the best and with a greater

understanding of customers’ needs.

This team is led by Jude Fonseka,

CEO, Deccan Express Logistics, who

has decades of experience in the

express, air cargo and logistics arena

across Asia, Africa and Australia,” he

further said.

Deccan Express Logistics has

signed a memorandum of

understanding (MOU) with

Maharashtra Airpor t Development

Company Ltd. (MADC) for setting up

a huge express and logistics hub in

Nagpur in a 100 acre area.

Explaining what the hub will comprise,

and what will be the salient features

of structures, centres, sor ting,

warehousing, cargo handling, cargo

transfer, access roads, truck docks,

IT, etc., he informed that Deccan

Express Logistics will be India’s No.

1 air and ground distribution network

with widest delivery network in India.

The core of this network is the state-

of-the-art express cargo hub we are

creating which is spread across a

100 acre campus, strategically

located at MIHAN (Multimodal

International Hub Airport at Nagpur),

Nagpur, owing to its central position

in India. The MOU has already been

given shape by officials from Deccan

Express Logistics and MADC.

“We have achieved the first

milestone for the hub by receiving

approvals for the structural design of

aircraft apron. This marks our first

step towards creating a nationwide

infrastructure to become India’s new

distribution and delivery system. The

Nagpur hub will handle majority of

the cargo moving on Deccan Express

Logistics network, thereby controlling

the distribution of shipments across

the country. It will also be an

international hub connecting the

major economies of Asia Pacific,

Middle East and Europe via India,”

he added.

“The Nagpur hub would offer

modernised cargo handling facilities

like direct docking of our aircraft

into air facility; computerised

documentation; access to freight

forwarders and char ter agents;

efficient load build-up for widebodied

aircraft with experienced staff; 24-

hour acceptance and delivery; cold

storage; and state-of-the-ar t

warehouse and motorised sor t

systems for containers and

packages,” he informed. The hub is

expected to be ready later this year

when Deccan Express Logistics goes

live with its operations.

Deccan Express Logistics

n It achieved first milestone forits express cargo hub atMultimodal International HubAirport in Nagpur

n It has received approval forstructural design for its aircrafthangar

n The hub will spread across100-acre campus at Nagpur’s B.R. Ambedkar Airport

n The hub will handle majorityof cargo volumes moving on itsnetwork

The Nagpur hub would offer modernisedcargo handling facilities like direct docking of our aircraft into air facility; computerised documentation; access to freight forwarders and charter agents;efficient load build-up for widebodiedaircraft with experienced staff

Deccan ExpressLogistics aims toachieve thispositive changeacross the nationwhere big andsmall businesseshave similar accessto all markets


COVERSTORY

India has gained credibility for

moving ahead with a cautious foot

forward. This movement had always

been slow but strong with wait-and-

watch attitude. Huge investments

are made after long hesitation.

Although Indian government’s

economic policies are said to be

“liberalised”, in practice there has

not been a rush for liberalisation.

Even quick-return projects do

not move fast on priority basis.

The country has never been an

early adopter, be it a global trade

policy, economic policy or an

emerging technology.

Speaking about logistics, it is

evident that the global logistics

industry is not impervious to

tough economic times. But as

this industry is not ready for

challenging times and as the entire

global industry remains hard hit,

prompting a host of financial

institution analysts to downgrade the

stock of global logistics majors have

become imperative.

In India, logistics leaders believe

that “strong companies will come out

of this downturn stronger”, meaning

that today’s economic condition is

“only going to give an opportunity to

position itself stronger and grow on

the upturn.” This confidence is not

shor t-term but is a long-term

outlook. When it comes to long-term

business strategy, India promises

inner strength.

Over 50 per cent companies with

domestic and global logistics and

supply chains fear major disruptions

in their ability to source and transact

business around the world, but

sadly, they are not doing much to

prevent any damage nor are they

readying themselves to meet the

challenging times.

In a new survey sponsored by a

popular international express and

logistics and supply chain major, 47

per cent companies have confirmed

that they need to pay more attention

to risk management compared to 16

per cent who believe they pay

adequate attention. The survey

report said only 38 per cent rate the

resilience of their supply chain

above average while a troubling

42 per cent say the expansion of

their global logistics and supply

chains has outpaced their ability to

manage risks.

Businesses appear to be

increasingly vulnerable to logistics

disruptions that can have a

catastrophic impact on business

performance. Success in global

economy depends largely on

building successful risk mitigation

strategies that can turn a

resilient logistics and

supply chain into a

competitive advantage.

Most of the logistics

companies are more

vulnerable as a result of

having created tighter and

leaner logistics and supply

chains, which is a

requirement for

competitiveness but it also

exposes a business to an

increasing number of risks.

For instance, insufficient

monitoring, risk assessment

and contingency planning

are leaving companies ill-

prepared when crisis hits.

One out of every 10

companies does not

monitor customers at all.

Around half the remainder looks only

at immediate customers.

Furthermore, in almost half of the

companies, formal risk management

takes place only annually.

A significant majority of

businesses are falling back on

increased inventory to address

resilience problems, which is an

expensive and ineffective approach.

Almost half of the companies

surveyed expect to hold additional

stock and raise inventory. Low-cost

country sourcing, sourced by

Indian logistics

industry set to position itself for long haul V. RA M A N U JA M

While industries

around the

world are

reeling under

the vagaries

of economic

recession,

India is

fortunate

for not

slipping into

a deep crisis.

Over 50 per cent

companies

with domestic

and global

logistics and

supply chains

fear major

disruptions

but sadly,

they are not

doing much to

prevent any

damage nor

are they

readying

themselves

to meet the

challenging

times. CARGOTALKtells you why

it is so.

COVERSTORY

customers, which has grown

significantly brings its own set of

challenges to global logistics and

supply chains with more than half of

such service users losing product

quality facing challenges of on-time

delivery. Although most of the

customers intend to increase low-

cost sourcing, this trend is said to

be gradually reducing because of

bad experience.

The trend in low-cost sourcing

does not seem to go away, globally.

But customers believe that it will look

different in future. There is a key to

successful sourcing of a reasonable

quality but low-cost logistics service

provider understands the issues,

structuring logistics and supply

chain appropriately, monitoring

performance and working with

service providers to improve

operational efficiency. The multi-

sourcing and near-sourcing are

likely to become par t of best

practices in future.

While examining the trends of

logistics and supply chain industry in

2009, it is clear that the industry has

learned a lesson in 2008. Even

though the price of crude oil has

substantially decreased, many

industry experts have found the hefty

spikes in 2008 to be a lesson for

both manufacturing industry and

consumer sector. The new business

strategies of manufacturers

need to encompass

b e t t e r

preparation for the inevitable long-

term volatile crude oil prices and is

detrimental to the entire logistics and

supply chain pipeline. Logistics

service providers need to be

cognisant of these changes and be

pro-active to mitigate the ups and

downs of the global market. In 2009,

the trends for logistics and

international transportation are likely

to revolve around pro-active

strategies and continued cost savings

is still deeply stressed by the turmoil

of 2008.

As supply chains tend to begin

replanning, some of the key elements

that will be up for strategic review are

inventory and warehousing, logistics

and containerisation that can

ultimately reduce the overall cost.

These value chain activities will

become critical points where despite

the success of how the process was

working before, for most of the

companies it is not

e f f e c t i v e

enough during downturn. The

outsourcing of logistics processes

was a big star for many customers

but the value margin dropped

significantly when fuel prices began

to waiver. Many business decisions

that were previously based on volume

will now require adequate in-depth

analysis to determine if the

decision is still valid given the

current economic environment as well

as the long-term projections

for turnarounds.

While there is no denying that

just-in-time and lean philosophies

transformed the logistics industry

into environments that valued high

quality and simplicity, neither of

these ideals has helped the industry

to cope with the difficulties, including

volatile fuel cost. For example, JIT

allowed organisations to reduce their

warehousing space, but it is at the

expense of increased shipment

frequencies. The cost of maintaining

the warehouse along with the

inventory was typically more than the

cost of the added

transpor tation in

order to

rationalise the change in business

processes when moving towards a

warehouse-free business model. The

logistics industry, however, is waiting

for an oppor tunity of a new

economic climate which may call for

some revisions to the all-

warehousing or no-warehousing

ideals. Almost all 3PL logistics

providers are under extraordinary

pressures to provide cost savings to

their stressed customers but with

decreasing product volumes and

shifting freight costs.

Many logistics companies are

experiencing a shift in their ideals and

strategic plans. Versatility is clearly

one of the most optimal techniques

for managing volatility but just as

many of the best-in-class logistics

processes have led the service

providers to a situation they are

currently experiencing. Versatility is

implemented with caution and with

long-term vision. Some of the Indian

logistics companies have realised

that there is also a crucial need for

a quick solution to resolve current

situation. The companies have also

realised that the best plan is to have

a plan and not simply a reaction to

an immediate issue.

Having the ability and capability

to pro-actively prepare for increased

operational costs, including cost of

transpor tation which is the major

chunk, along with decreased sales will

now allow the total logistics solutions

providing companies and 3PL

companies to remain afloat while

their ill-prepared competitors will

struggle with their lack of

preparation. The best enabler for

success will, therefore, be the plan

and speed the logistics

companies

The high 2008 year-end cost levels will cause the logistics customers to look at rebalancing, focusing on strategic network optimisation and multi-echelon inventory optimisation tools

18 CARGOTALK APRIL - 2009 www.cargotalk.in


COVERSTORY

in India can react to whatever global

crisis may be on the horizon. Service

providers in India are getting

prepared with versatile options and

will weather the climate far better

than their counterparts else where.

And most of the successful leaders

in Indian logistics industry have

already started their plan but without

necessary speed. History tells:

India is slow.

In 2001, the US faced a mini-

recession post-9/11. Mark Kopinski,

senior vice president, American

Century Investments, had once stated,

“Inventory is a huge liability in a

slowing economy. It forces companies

to idleness at certain times and carry

extra costs.” These words are more

relevant today. During tough times,

logistics businesses face slower sales

and turnover volumes, putting them at

risk for tying up funds – funds that

otherwise could be used in more

worthwhile spheres. Every company

has to agree that inventory

management is critical for survival

during recession and the failure to do

so can lead to difficulties in cash flow.

Indian logistics majors

understand this and are gearing up

for smar t inventory management

ending in cost savings. An editorial in

a recent issue of a leading journal in

the US wrote that most of the

companies are using recession to

restructure their logistics and supply

chain operations including

rationalising channel par tners,

reducing inventory, modernising

assets and rebalancing supply-

demand in preparation for a recovery.

“In 2009, we expect to see a very

strong cost and customer focus in

logistics and supply chain. Continuing

logistics and supply chain complexity

will drive investments in optimisation,

modernisation and risk mitigation,”

the article said.

The journal also gave a few

predictions which are more

applicable to world logistics industry

but may be useful for Indian logistics

companies. The predictions are:

companies will exploit well-performed

existing tangible and especially

intangible logistics and supply chain

assets to ride out financial crisis and

prepare for recovery. Modern

logistics and supply chain

organisations will put expenditure

budgets under greater scrutiny and

new investments will be cost savings

requiring shor ter payback periods;

and expenditures will be made

through the lens of cost/value.

Companies will “right size’ their

logistics and supply chain activities

for profitable proximity and take a

total landed-cost approach. Supply

chain technology initiatives will have

to suppor t the standard business

platform and focus modernisation

and decision making. Customer

relationship management and

customer-centricity effor ts will

continue to grow across modern

logistics and supply chain companies

as customers attempt to get

the right kinds of innovation and

new logistics products.

The high 2008 year-end cost

levels will cause the logistics

customers to look at rebalancing,

focusing on strategic network

optimisation and multi-echelon

inventory optimisation tools.

Compliance-driven RFID initiatives will

continue to wane in favour of ROI-

driven tracking and customers

increasingly look at radio frequency

identification as ‘just another tool in

the tool kit.” As global economic

pressure mounts, outstanding

opportunities proliferate and global

logistics and supply chain networks

become more complex and risk

management will become an

increasingly significant capability and

a key differentiator for modern

logistics and supply chain

management. Stan Wright of Strategic

Aviation Solutions at an air cargo

session held recently in Bangkok

stated that having worked through

previous economic recessions,

“nothing else can compare to this.”

Focussing beyond 2009, he noted,

“This is a crisis of confidence.”

Wright remarked, “The bottle of

wine is half-full, not half empty.” And

on this foundation of confidence,

Indian logistics industry is all set to

position itself for long haul.

“In 2009, we expect to see a very strongcost and customer focus in logistics andsupply chain. Continuing logistics andsupply chain complexity will driveinvestments in optimisation, modernisation and risk mitigation”

Logistics industry

n Indian logistics industry isdoing much better than its global counterparts

n Cautious approach, among others, is a plus point of Indianindustry

n Majority of businesses arefalling back on increased inven-tory to address resilience prob-lems

n Strong companies arebelieved to emerge strongerbecause of the downturn


FAMILYALBUM

Delmos Cargo, the general sales agent for Aeroflot Cargo and Uzbekistan Airways

(Cargo) organised two separate functions in Delhi and Mumbai recently. The events were

attended by a large number of freight forwarders and dignitaries. The company also

honoured its top agents for their support. Following are the highlights of Delhi event.

Delmos Cargo celebrates its first anniversary

APRIL - 2009 CARGOTALK 23

FAMILYALBUM

Delmos Cargo’s celebration in Mumbai


LOGISTICSSERVICES

According to Andrea Guido Conti,

president, GM SPA and Vipul

Nanda, managing director, PTC &

Mercurio-Pallia Logistics, the main

aim of Mercurio-Pallia Logistics is to

provide world class logistics service

to automotive industry in India by

offering state-of-the-ar t logistics

technology, including solution design

and implementation.

GM SPA is one of Europe’s

leading logistics companies. India

offers lot of potential for the company

because of its emergence as a strong

market despite the ongoing recession

in the global market. “We are

searching for a new market, which is

emerging with its strong economy vis

a vis the US and Europe markets,”

explained Conti. According to him, the

company has planned to invest in 250

additional trailer capacities over the

next five years, which will be operated

by the JV. Mercurio-Pallia Logistics will

not only strengthen its operation in

India’s domestic market but will

simultaneously explore opportunities

in import-export markets, especially

the European market. “The JV

will complement each other’s

market and help accelerate

automobile trade between India and

Europe,” said Nanda.

According to Nanda, the Rs. 30

crore PTC will target Rs. 50 crore

turnover in the first year of operation

along with GM SPA. “We have already

established our strong presence in

car transport and logistics industry.

Car manufacturing companies

including Maruti, Mahindras, Tata,

Hyundai, Honda and General Motors

are the major clients of the company.

We are confident that the new JV will

boost our business because of the

commendable strength of GM SPA in

the world’s automotive logistics

sector,” highlighted Nanda.

The new company will also

explore oppor tunities in other

sectors in auto logistics, including

stockyard management, pre-delivery

inspection and car transportation in

rail wagons on Delhi-Mumbai and

Delhi-South India routes. With an aim

to offer end-to-end link between India

and Europe (Nor th Africa at later

stage) for the Indian automotive

industry, the company will star t with

175 trailers, which will be fur ther

extended in the first year. The

company has a plan to add at least

50 trailers a year in the next five

years. Mercurio-Pallia Logistics is

also considering the launch of

container train operation on its own.

GM SPA is a Euro 130 million

company with global presence in

automotive logistics sector. PTC was

established in 1962 and initially

offered logistics services to farms

and forestry.

RATA N KR PAU L

Gruppo Mercurio

SPA (GM SPA)

Italy and Pallia

Transport

Company

(PTC), the

India based

company on

March 18, 2009

announced the

formation of a

50:50 joint

venture (JV)

company called

Mercurio-Pallia

Logistics which

will not only

strengthen

its operation

in India’s

domestic

market but will

simultaneously

explore

opportunities

in import-export

markets,

especially

for Europe

market. CARGOTALKhas details.

Mercurio-Pallia Logistics

to offer automotive logistics services

About the JV

n Mercurio-Pallia Logistics is a 50:50 partnership JV

n Its projected investment is to add 250 additional trailer capacities over the next 5 years

n The JV plans to achieve Rs. 50crore turnover in the first yearfrom present Rs. 30 crore a year

n The JV aims to provide worldclass logistics service to the automotive industry in India

n The company will start with175 trailers, which will beextended in first year

(L-R): Vipul Nanda and Andrea Guido Conti


LOGISTICSSERVICES

IELA is an association of specialist

logistics providers who are skilled

and experienced in moving exhibition

cargo around the world to trade

fairs, festivals and events of all types.

Its members from 44 countries are

the global elite comprising dedicated

companies and divisions that

form network to service the

world's greatest events. IELA is

dedicated to enhancing

professionalism in transpor tation

logistics and freight handling

segments of the exhibition industry.

“With plans to take leadership in

this specialised field through its

unmatched network of 16 branches,

extensive infrastructure and

equipment, renowned international

par tners and a team of

experienced professionals,

PSBediGroup proposes

to set the ‘next

standards’ in the

industry,” said Kuldeep Razdan,

national head - exhibitions & events,

PSBediGroup.

The company is amongst the

fastest growing in this industry

vertical due to its accreditation from

largest exhibition organisers and

experience of having handled world

class events. “Our team comprises

dynamic, very motivated, experienced

and customer focussed professionals.

These are exciting times for us as we

are not only attracting the best talent

from the industry but are also making

extensive capex investments at

multiple locations for achieving our

goal of being No. 1,” added Razdan.

Star ting as consultants and

advisers on laws relating to customs

and impor t/expor t related matters,

PSBLogistics and PSBedi & Co have

established themselves in

international freight forwarding with

emphasis on project cargo, oversized

equipment, relocation and rigging

in/out of factories and other related

logistics suppor t services. These

include engineering support, ground

survey services, administrative

support, equipment support, etc.

A knowledge based organisation

with over 5,000 man-years of collective

team experience, the group has in the

last 33 years serviced some of the

largest national and multinational

organisations in the verticals relating to

power, auto, telecom, metals,

infrastructure, defence, projects and

second-hand machinery. “Our vast

experience in handling very diverse

range of projects has provided us the

uniqueness to offer unparalleled

customised solutions to clients.”

said, RS Bedi, CEO, PSBediGroup.

According to Bedi, with India

poised to become an economic giant,

the group is preparing to harness the

opportunities for growing exponentially.

Initiatives have already been set in

motion for participating in the agri,

retail and pharma verticals. ‘With our

33 years of experience and a presence

in almost the entire gamut of logistics

industry from consultancy, customs

clearance, international freight

forwarding, warehousing, distribution &

3PL to transportation, the company

provides complete end-to-end

logistics solutions. Plans are afoot to

enter in the warehousing and

distribution space through Logistics

Centres,” Bedi said. “We are looking at

overseas acquisitions in the near future

and initiating negotiations to start

JV alliances in China and West

Asia,” he added.

CT BU R E AU

After becoming

a member

of International

Exhibition

Logistics

Associates

(IELA) in

September

2008,

PSBediGroup

embarks

aggressively

for stronger

presence

in the exhibition

and events

vertical by

positioning

itself as the

'new alternative'

in India.

The company

is the platinum

sponsor of

the IELA

Congress,

which is going

to take place

from June

25 to 28, 2009

in London.

PSBediGroup:

Platinum sponsor of IELA Congress in London

PSBedi Group

n Serviced some of the largestnational and multinationalorganisations in the verticalsrelating to power, auto, telecom, metals, infrastructure,defence and projects

“With plans to take leadership in thisspecialised field through its unmatchednetwork of 16 branches, extensive infrastructureand equipment, renowned internationalpartners and a team of experiencedprofessionals, PSBediGroup proposes to setthe ‘next standards’ in the industry”


CARGOPERFORMANCE

Delhi International Airport Cargo Department, IGI Airport,

New DelhiAirline-wise Import/Export Cargo Performance

for the month of February, 2009ALL WT. IN MT.

S. Airlines Export Import Total % ofNo. Cargo Total

Cargo

TOTAL ..............................................11354.04 ..8778.25 ......20132

Cargo handled in FEB ' 2009 ..........12447.00 ....10525 ......24661

% VARIATION ...................................... -8.78% ..-16.60% ....-18.36%

1 ............Cathay Pacific ................................962.60 ........985.23 ........1948 9.68%2 ............Lufthansa German Airlines ..........966.89 ........888.66 ........1856 9.22%3 ............British Airways ..............................880.97 ........769.24 ........1650 8.20%4 ............Singapore Airlines..........................525.76 ........691.86 ........1218 6.05%5 ............Jet Airways....................................621.69 ........520.03 ........1142 5.67%6 ............Emirates ........................................571.97 ........454.71 ........1027 5.10%7 ............Thai Airways..................................279.97 ........669.43 ..........949 4.72%8 ............Air India ........................................458.40 ........363.16 ..........822 4.08%9 ............Qatar Airways ..............................400.20 ........249.50 ..........650 3.23%10 ..........Malaysian Airlines..........................194.82 ........400.32 ..........595 2.96%11 ..........Etihad Airways ..............................371.02 ........219.40 ..........590 2.93%12 ..........Turkish Airlines ..............................482.70 ..........89.46 ..........572 2.84%13 ..........Austrian Airlines ............................350.08 ........180.68 ..........531 2.64%14 ..........Swiss International Airlines ..........334.56 ........180.88 ..........515 2.56%15 ..........Federal Express..............................312.66 ........190.61 ..........503 2.50%16 ..........Virgin Atlantic................................397.84 ..........77.84 ..........476 2.36%17 ..........Korean Air......................................114.12 ........292.27 ..........406 2.02%18 ..........KLM Royal Dutch ..........................266.00 ........134.80 ..........401 1.99%19 ..........Jalways Co. Ltd. ............................97.78 ........298.11 ..........396 1.97%20 ..........Finnair............................................261.51 ........104.23 ..........366 1.82%21 ..........Air France ......................................194.61 ........113.04 ..........308 1.53%22 ..........Gulf Air ..........................................283.23 ..........10.67 ..........294 1.46%23 ..........Eva Airways Corp. ........................123.58 ........150.87 ..........274 1.36%24 ..........Ariana Afghan Airlines ..................168.31 ..........77.16 ..........245 1.22%25 ..........Indian Airlines................................161.42 ..........57.53 ..........219 1.09%26 ..........SK ..................................................154.16 ..........33.33 ..........187 0.93%27 ..........Saudi Arabian Airlines ..................168.31 ............8.01 ..........176 0.88%28 ..........American Airlines ..........................132.34 ..........36.88 ..........169 0.84%29 ..........China Airlines ..................................51.40 ..........96.60 ..........148 0.74%30 ..........Continental Airlines ........................82.09 ..........46.07 ..........128 0.64%31 ..........Kuwait Airways ..............................77.60 ..........46.86 ..........124 0.62%32 ..........Air China ........................................59.35 ..........56.40 ..........116 0.57%33 ..........Asiana Airlines ................................88.07 ..........25.86 ..........114 0.57%34 ..........China Eastern Airlines ....................42.19 ..........65.27 ..........107 0.53%35 ..........Mahan Air ......................................91.26 ............0.24 ............92 0.45%36 ..........AeroSvit Airlines ..............................55.39 ............3.78 ............59 0.29%37 ..........Bangladesh Biman..........................33.61 ..........14.27 ............48 0.24%38 ..........Aeroflot............................................32.27 ..........10.68 ............43 0.21%39 ..........SriLankan Airlines ............................24.97 ............9.95 ............35 0.17%40 ..........Blue Dart ........................................31.85 ............2.38 ............34 0.17%41 ..........Pakistan International Airlines ........25.46 ............7.19 ............33 0.16%42 ..........Air Mauritius ....................................22.27 ............6.05 ............28 0.14%43 ..........Ethiopian Airlines ............................27.05 ............0.39 ............27 0.14%44 ..........Turkmenistan Airlines ......................21.39 ............0.66 ............22 0.11%45 ..........Uzbekistan Airways ........................20.48 ............0.53 ............21 0.10%46 ..........Royal Jordanian Airways ................11.55 ............3.29 ............15 0.07%47 ..........Royal Nepal Airlines ..........................0.58 ............4.99 ..............6 0.03%48 ..........Druk Air ............................................2.65 ............0.20 ..............3 0.01%49 ..........Air France ..........................................0.00 ............0.00 ..............0 0.00%50 ..........Syrian Arab Airlines ..........................0.00 ............0.00 ..............0 0.00%51 ..........MIS ................................................315.06 ........128.68 ..........444 2.20%

Traffic Trends: Jan. 2009 vis-a-vis Jan. 2008

Total Freight Traffic:The total freight traffic (International andDomestic) handled has significantly decreased by8.2 per cent as compared to the freight handledduring January 2008. Most of the airports haveregistered sluggish growth during January 2009.

Major increase (in per cent): • Calicut 87.2 • Pune 8.6

• Amritsar 176.3 • Coimbatore 35.7

• Cochin(CIAL) 25.2 • Imphal 54.0

Major declines (in per cent):• Kolkata 8.7 • Mumbai (MIAL) 10.2

• Ahmedabad 12.9 • Delhi(DIAL) 10.9

• Goa 41.1 • Bangalore(BIAL) 11.6

International Freight Traffic:The international freight traffic has registered adecrease of 8.7 per cent during the month ofJanuary 2009 as compared to the traffichandled in January 2008.

Major increase (in per cent):• Kolkata 3.0 • Amritsar 328.9

• Ahmedabad 19.2 • Hyderabad(GHIAL)17.3

• Calicut 100.0 • Cochin(CIAL) 40.1

Major declines (in per cent):• Chennai 16.5 • Mumbai (MIAL) 11.3

• Trivandrum 11.4 • Delhi(DIAL) 11.6

Domestic Freight TrafficThe domestic freight traffic has decreased to44.52 thousand tonnes in January 2009 from48.01 thousand tonnes freight handled inJanuary 2008, which has shown a decrease of7.3 per cent. Most of the airports haveregistered downfall in domestic freight handlingduring January 2009.

Major increase (in per cent):• Chennai 50.9 • Port Blair 11.4

• Guwahati 10.7 • Pune 8.8

Major declines (in per cent):• Kolkata 16.1 • Delhi(DIAL) 9.5

• Ahmedabad 27.4 • Bangalore(BIAL) 25.2

• Mumbai(MIAL) 7.7 • Hyderabad(GHIAL)9.6


CARGOPERFORMANCFE

Mumbai CSI Airport Export/Import Cargo T onnageHandled for the month of February, 2009 (Mumbai Airport)

Airlines Handled by MIAL & AI

(including TP Cargo)

S. No.Airlines

Weight in Tonnes TotalGeneral Exp+Imp

Export Import

Note: No Tonnage was reported against the Airlines viz. Air Seychelles, Bangladesh Biman, Syrian Arab Airlines, Bellview, Royal Jordanian Nepal.

1 ............Cathay Pacific ................................719.55 ..............1343.70 ..............2063.25

2 ............Jet Airways ....................................394.74 ..............1431.04 ..............1825.78

3 ............Lufthansa ........................................493.82 ..............1122.90 ..............1616.72

4 ............Emirates ..........................................991.55 ................593.41 ..............1584.96

5 ............Air India ..........................................765.50 ................742.11 ..............1507.62

6 ............Singapore Airlines ..........................592.50 ................831.43 ..............1423.93

7 ............British Airways ................................694.92 ................442.99 ..............1137.91

8 ............Etihad Airways ..............................404.91 ................355.13 ................760.04

9 ............Federal Express ..............................567.71 ................160.68 ................728.39

10 ..........Korean Air ......................................328.27 ................350.82 ................679.09

11 ..........Swiss Intl. Airlines ..........................358.07 ................284.83 ................642.90

12 ..........Air France ......................................227.00 ................218.65 ................445.65

13 ..........Thai Airways ....................................76.57 ................330.89 ................407.46

14 ..........Malaysian Airlines ..........................170.43 ................216.14 ................386.57

15 ..........Delta Airways ................................221.21 ................114.36 ................335.57

16 ..........Virgin Atlantic ................................159.94 ................162.98 ................322.92

17 ..........UPS ................................................150.50 ................171.68 ................322.18

18 ..........Others ............................................93.84 ................222.74 ................316.58

19 ..........Qatar Airways ................................170.00 ................145.09 ................315.09

20 ..........Finnair ............................................140.43 ................170.90 ................311.33

21 ..........Turkish Airlines ................................184.70 ................117.68 ................302.38

22 ..........KLM Royal Dutch ..........................108.96 ................152.61 ................261.57

23 ..........Ethiopian Airlines............................258.23 ....................1.59 ................259.82

24 ..........Saudi Arabian Airlines ....................214.13 ..................10.61 ................224.74

25 ..........Shanghai Airlines ..............................72.10 ................143.39 ................215.49

26 ..........Kenya Airways ................................162.55 ..................16.16 ................178.71

27 ..........South African Airlines ....................159.40 ..................16.69 ................176.09

28 ..........Gulf Air ..........................................150.01 ..................13.37 ................163.38

29 ..........Continental Airlines ..........................48.45 ..................92.34 ................140.79

30 ..........Kingfisher Airlines..............................57.15 ..................26.28 ..................83.43

31 ..........Qantas..............................................43.14 ..................27.74 ..................70.88

32 ..........Aeroflot ............................................46.60 ..................16.50 ..................63.10

33 ..........Egypt Air ..........................................59.87 ....................2.68 ..................62.55

34 ..........EL-AL Airlines ....................................32.00 ..................23.92 ..................55.92

35 ..........Srilankan Air......................................49.00 ....................6.24 ..................55.24

36 ..........Iran Air ..............................................54.18 ....................0.37 ..................54.55

37 ..........Kuwait Airways ................................36.96 ....................7.15 ..................44.11

38 ..........Air Mauritius ....................................40.13 ....................3.53 ..................43.66

39 ..........Pakistan Airways ..............................37.57 ....................0.60 ..................38.17

40 ..........Indian Airlines ....................................2.53 ..................28.46 ..................30.99

41 ..........Yemenia Airways ..............................26.97 ....................0.05 ..................27.02

42 ..........Blue Dart ..........................................17.27 ....................6.17 ..................23.44

43 ..........Air Arabia............................................8.87 ....................0.00 ....................8.87

44 ..........Jazeera Airways..................................6.70 ....................0.04 ....................6.74

45 ..........Austrian Airlines ..................................0.50 ....................2.44 ....................2.94

46 ..........Oman Air............................................1.61 ....................0.65 ....................2.26

47 ..........Royal Jordanian Airways ....................1.59 ....................0.36 ....................1.95

48 ..........Syrian Arab ........................................0.00 ....................0.00 ....................0.00

49 ..........Eva Airways ........................................0.00 ....................0.00 ....................0.00

..............TOTAL (B1) ..................................9602.60 ............10130.09 ............19732.73

Total Freight Traffic:The total freight traffic has increased to1419.70 thousand tonnes from 1414.68thousand tonnes, which has registered amarginal increase of 0.4 per cent during April– January 2008-09 as compared to freighttraffic handled in April –January 2007-08.

Major increase (in per cent):• Chennai 1.4 • Cochin (CIAL) 21.2

• Ahmedabad 1.8 • Pune 7.1

• Calicut 37.5 • Patna 16.2

• Port Blair 9.4 • Agartala 26.8

• Amritsar 61.6 • Visakhapatnam 89.0

• Mumbai(MIAL) 1.4 • Bhopal 51.9

• Hyderabad(GHIAL) 7.3 • Imphal 40.4

International Freight Traffic:The international freight traffic has increasedby 2.0 per cent during the period underreview.

Major increase (in per cent):• Ahmedabad 68.5 • Mumbai (MIAL) 4.0

• Calicut 43.6 • Hyderabad(GHIAL)24.9

• Amritsar 39.3 • Cochin (CIAL) 28.2

Domestic Freight Traffic:The domestic freight traffic has shownmarginal decrease of 2.9 per cent during theperiod under review.

Major increase (in per cent):• Chennai 19.3 • Chandigarh 15.9

• Port Blair 9.4 • Bhopal 51.9

• Pune 7.1 • Imphal 40.4

• Lucknow 6.9 • Agartala 26.8

• Visakhapatnam 89.0 • Patna 16.2

Total Freight Traffic Trends Apr–Jan 2008-09vis-à-vis Apr–Jan 2007-08

Airport Category Apr-Jan Apr-Jan %

2008-09 2007-08 Change

Twelve International Airports 371.33 367.99 0.9

Five JV Int’l Airports 1005.40 1006.13 -0.1

Eight Custom Airports 18.36 17.40 5.5

Twenty One Domestic Airports 23.59 22.03 7.1

Others Domestic Airports 1.02 1.13 -9.6

Total 1419.70 1414.68 0.4

Traffic Trends: Apr–Jan. 2008-09 visà-vis Apr–Jan 2007-08


LOGISTICSSERVICES

Aarohan 2009 was aimed at

bringing together the best brains

in the B-schools across the

country to showcase their talent and

knowledge on supply chain

management (SCM) and also to

come in contact with eminent

professionals of the industry

who could help them refine

knowledge and skills.

This year the “paint industry”

had been chosen as the premise for

case study. “The main attraction of

the event was a case study based on

real life supply chain issues faced by

the industries,” informed Vineet

Kanaujia, general manager –

marketing, Safexpress. Kanaujia was

one of the judges at Aarohan 2009.

“The purpose of our

par ticipation in this event was to

provide the young generation a deep

insight into the working of the supply

chain industry and how the industry

caters to the dynamic needs of the

clients. Today, when our economy is

facing the impact of the downturn,

supply chain industry has a pivotal

role to play in the swift bouncing

back of our economy,” said Kanaujia.

According to him, it is high time

companies took a closer look at their

supply chain models and ironed

out inefficiencies. At the end of the

day, this will prove to be the

critical differentiator between the

winners and losers.

Elaborating the scope of supply

chain, Kanaujia said, “To endure the

current economic slowdown

companies need to carefully evaluate

their cost structure. As supply chain

cost constitutes a major part of this

structure, the focus should be to

minimise inventory related costs to

shorten the cash cycles. This would

help them enhance operating

efficiency as well as help achieve the

profitability targets.”

At Aarohan, 2009, Kanaujia

announced that Safexpress would

offer special services to transpor t

belongings of ‘Symbiosis’ students in

the form of special customised

service ‘campus2home.’ “Under this

initiative we ensure that the luggage

of students reaches their home

safely, quickly and in right condition.

This will enable the students to enjoy

the rest of their time at the campus

without any anxiety about moving

their possessions at the time of

passing out,” added Kanaujia.

CT BU R E AU

Safexpress

in collaboration

with Symbiosis

Institute

of International

Business

(SIIB), Pune

recently

organised the

second edition

of supply chain

summit and

national level

case study

competition,

Aarohan 2009.

The theme

of this year’s

event was

‘supply chain in

recessionary

times.’

Safexpress calls for strengthening

SCM to cope with recession

Safexpress, the leading logistics

player in India, has won the ‘Best

Service Provider’ award at the

Logistics Management Leadership

Summit 2009 held at Hotel Marriott

in Mumbai recently. Vineet Kanaujia,

GM – marketing, Safexpress,

received the prestigious award.

The summit was the first-ever

edition where top brands of supply

chain industry competed for the

award. The winner was decided

through a proper process, which

included submitting a comprehensive

application. Numerous applications

from top brands were then put for th

to a jury comprising India’s leading

logistics service users

and service providers.

In the last one

year, the company has

bagged many

prestigious awards like

Golden Peacock Award,

Retail Leadership

Award, Brand Loyalty

Award and CMAI

Golden Scale Trophy.

Commenting on

the achievements,

Kanaujia said, “For the

last many years we

have been strongly

focussing on augmenting our

fundamentals. We have been

relentlessly pursuing customer

satisfaction through our customised

solutions over the last decade. And

this strategy has been paying us rich

dividends.”

Safexpress wins ‘Best Service Provider’award at Leadership Summit 2009


INFRASTRUCTUREUPDATE

The ICD, situated near Delhi border

in Ghaziabad district of Uttar

Pradesh has added many

infrastructural facilities in its two-year

journey. It became the first private

sector ICD after public sector

undertaking (PSU) owned Container

Corporation of India (Concor) to offer

reefer container rail services. The

plug in facility for more than 140

FEUs at a time and 12 reefer power

packs make it one of the biggest

reefer infrastructures in the national

capital region (NCR). ICD Loni has

also developed more than 100,000

square metre of paved area for

storing empty containers.

According to Kapil Rawat,

president, Worlds Window

Infrastructure and Logistics, the

biggest achievement of ICD has been

to provide accident-free and theft-

free environment to customers. Its

last two years of operation have

been almost accident-free.

“The ICD management is leaving

no stone unturned to maintain the

reputation in this regard. The fresh

initiative of providing 15 CCTV

cameras on the gates and in the

vicinity of ICD is one of the examples.

This will ensure that ICD Loni remains

a theft-free zone,” said Rawat.

To create care of trucker

requirements, a secured parking

area has also been developed where

more than 100 trailers can be

parked at a time. “The area is fully

paved and offers safety, security and

hassle-free environment to

customers,” Rawat added.

To take care of the customers’

banking needs, Punjab National Bank

has opened its branch at ICD Loni.

This has made the depositing of

customs duty more convenient. The

ICD has replaced all its old reach

stackers with five brand new Linde

machines which are more efficient

and environment friendly.

“We at CWC and ICD management

of Worlds Window thank all our

customers who have helped the

facility to become one of the best in

the region. The Worlds Window Group

is committed to adding in near future

cutting edge technology and

infrastructure to ensure that

customer requirements and his

aspirations are fulfilled,” he added.

RATA N KR PAU L

The Central

Warehouse

Corporation (CWC)

based ICD at Loni

under strategic

management of

Worlds Window

completed two

years on March

11, 2009. Its last

two years of

operation have

been almost

accident-free.

The ICD has

strengthened

infrastructure

and added new

equipment.

ICD Loni completes 2nd year;

assures safety and security

ICD Loni

n ICD Loni is the first privatesector ICD to offer reefer container rail services

n Plug in facility for over 140FEUs and 12 reefer power packs makes it one of the biggestreefer infrastructures in NCR

n ICD Loni has developed over100,000 square metre of paved area for storing emptycontainers

Rajiv Kochhar

has joined Worlds

Window Infrastructure

Logistics (WWILPL) as

vice president -

commercial, project

and business

development. Prior to

joining WWILPL,

Kochhar was with

Adani Logistics Park

since 2006. He was

the core team

member for setting

up Adani Logistics Parks at Patli and

Kishangarh. He was also the first

terminal manager at ICD Patli.

Kochhar started his career in 1990

with Concor as

assistant manager -

operations at

Pragati Maidan. He

was promoted as

general manager

operations and

general manager

domestic terminal at

Concor TKD from

1993 to 2004. He

became general

manager -

commercial &

operations, Concor (NR) and general

manager international marketing &

commercial at Concor corporate

office from 2004-06.

Rajiv Kochhar

Kapil Rawat


SHIPPING &PORTS

In the face of the current economic

downturn, this event demonstrates

GTI’s resolve to create additional

capacity, thereby benefitting the

trade and its customers as quickly

as possible.

Calling it a “historic moment”,

Arvind Bhatnagar, CEO, Gateway

Terminals India, said, “We are

delighted and proud of the

expansions taking place as

scheduled. The team is geared to

move ahead to take on the

challenges posed by the current

economic scenario and conver t it

into oppor tunities for fur ther

improvement and to ensure

customer delight.”

Speaking at the ceremony

attended by a host of GTI customers

at the container terminal, Bhatnagar

said, “Effective February 1, 2009,

GTI announced a host of additional

benefits which translate the

advantages of its expansion to

customers. The benefits include 10-

day free on export laden boxes; 6-

day free period on impor t laden

boxes; facility to open second vessel

identification advice; and 3 days free

on empties.”

Bhatnagar added that by

upgrading infrastructure and

equipment, GTI’s ber th productivity,

which has improved from 57.96

moves/hour in January 2008 to

80.31 moves/hour in December

2008, is expected to reach well

over 100 moves/hour in 2009. “This

ensures that larger vessels can

enjoy unparalleled turnaround time

in the por t with only 12 hours

required for volumes until 1,800

moves and only 24 hours required

for volumes up to 4,000+ moves

given a 5+ crane split,” he said.

The addition of two quay cranes

procured from ZPMC of China makes

GTI the youngest terminal in India to

have a total of 10 cranes. This

milestone, in addition to increasing

yard space by almost 2,000 ground

slots and commissioning 11 new,

eco-friendly, 6-high RTGs, is part of

GTI’s plan to offer customers world-

class infrastructure and scale up

capacity to 1.8 million TEUs in 2009

from 1.3 million TEUs in 2008,

according to Bhatnagar.

GTI’s new crane No. 9 was

inaugurated by Jin-Li Chung,

managing director, Hyundai Merchant

Marine India Private Limited (HMM).

Congratulating GTI on the occasion,

he remarked, “Hyundai has witnessed

GTI’s tremendous success within a

short period of three years and is

demonstrating again that even bigger

successes can be achieved by GTI for

its customers in the future”.

Par t of APM Terminals’ global

terminal network, Gateway Terminals

India is a joint venture between APM

Terminals and CONCOR. The facility,

India’s largest container terminal, is

an exemplary model of successful

Public/Private Par tnership and

terminal operation efficiency. GTI is

strategically located at Nhava Sheva,

off Mumbai - India’s premier gateway

por t, serving the commercial and

financial hub of Mumbai.

APM Terminals is a leading

global container terminal owner and

operator providing world-class

service to over 60 shipping lines

with a global terminal network

of more than 50 terminals in

31 countries and in five continents.

APM Terminals is a member of

the A.P. Moller-Maersk Group of

Denmark and is headquar tered

in The Hague, Netherlands.

CONCOR, a government of India

under taking under the ministry of

Railways, is the largest provider of

containerised rail transport in India,

operating a network of more than 58

Inland Container Depots (ICDs).

CT BU R E AU

Gateway

Terminals

India Pvt.

Ltd. (GTI),

the youngest

terminal at

Nhava Sheva,

has commissioned

two new

quay cranes,

thereby

ramping up

its capacity

by an additional

500,000 TEUs.

CARGOTALK gives an

insight into

the same.

‘Gateway Terminals’ commissions

2 new quay cranes at Nhava Sheva, Mumbai

Arvind Bhatnagar

Some benefits

n 10-day free period on exportladen boxes

n 6-day free period on importladen boxes

n 3-day free period on empties

n Facility to open second vesselidentification advice


SHIPPING &PORTS

“The new service is aimed at

expanding Maersk Line’s

coverage from/to Nor th and Nor th

West India and fur ther strengthen its

presence in these developing

markets,” said Soomar.

The first call of fur ther

enhanced ME3 service at Pipavav is

scheduled for April 6, 2009 with the

vessel being Nedlloyd Drake,

Voyage No. 908. The Pipavav call

follows the recent addition of the

Jebel Ali call on ME3 service, which

has made it a fast, direct and fixed-

day mother vessel service to the

Middle East for Nor th Indian and

Nor th West Indian shippers.

Soomar said that shippers from

Delhi, Punjab, Haryana, Rajasthan

and Gujarat will not only have a direct

service coverage into the

Mediterranean ports and Middle East

from Pipavav but will also be able to

enjoy faster transit time, shor ter

inland haulage time, cheaper inland

haulage and improved service

reliability that comes from a regular

weekly service.

In his special comments on the

new service, Soomar observed,

“Maersk Line is the only carrier to

provide direct service from Pipavav

into the Middle East and

Mediterranean por ts. It has always

been our focus to constantly upgrade

our products and services to cater to

our customers’ needs and to

continuously provide them with

innovative and reliable products. This

direct service from Pipavav will help

our customers from North India and

North West India with more efficiently

realised oppor tunities that the

growing Middle East and

Mediterranean markets offer.”

The new service is a direct intra-

Gulf product offering a connection to

and from Jebel Ali, which is an

important gateway into key markets

of the Middle East, offering faster

transit times into import dependant

Middle East and Persian Gulf

countries like Iran, the UAE, Oman,

Qatar, Bahrain and Kuwait.

To a question on port rotation,

Soomar said that the new rotation of

ME3 service will be Pipavav (India),

Nhava Sheva (India), Por t Said

(Egypt), Algeciras (Spain), Tangier

(Morocco), Tarragona (Spain), Gioia

Tauro (Italy), Salalah (Oman) and

Jebel Ali Dubai (UAE).

When asked to give details of

Jebel Ali Por t addition in ME3

service, Soomar said that the

addition reflects on Maersk Line’s

improved reliability with a fixed-day

sailing to the Middle East as well as

more reliable products.

He added, “In our constant

effor t to provide our customers with

faster and more reliable products,

we have enhanced our India-Europe

(ME3) service. We have added this

new por t call at Jebel Ali Dubai, thus

providing our customers from West

India and Nor th India a fast, direct

and fixed-day service to the Middle

East. Transit time from Nhava Sheva

to Jebel Ali will now be only three

days which is amongst the best in

the industry.”

Soomar informed that with this

added call, Maersk Line will now have

direct service coverage into Jebel Ali

which is an important gateway into

key markets of the Middle East that

is still showing positive growth in

spite of the global economic

slowdown. “Since the service

coverage is by our own mother

vessels, it means higher reliability

and better space availability for

our customers. This service will also

offer faster transit time into other

impor t-dependant Middle East and

Persian Gulf countries like Iran, the

UAE, Oman, Qatar, Bahrain and

Kuwait,” he said.

The Middle East is also the

largest destination for refrigerated

commodity ex-India.

CT BU R E AU

To facilitate trade

from North India

and North West

India to the

Middle East, the

Mediterranean and

Europe, Maersk

Line will shortly

add a Pipavav

call on its ME3

service. “This

enhancement

will provide

exporters and

shippers from

North India and

North West India

a direct service

from/to the

Middle East,

Mediterranean

and European

markets,”

Rizwan Soomar,

managing director,

Maersk India,

told CARGOTALKin an exclusive

meeting in

Mumbai.

Maersk Line’s ME3 service to call at Pipavav Port;

enhancement follows Nhava Sheva call

Fact file

n Maersk Line is the only carrierto provide direct service fromPipavav into the Middle East andMediterranean ports

n First call of further enhancedME3 service at Pipavav is scheduled for April 6, 2009

n Pipavav call follows additionof Jebel Ali call on ME3 service,which has made it a fast, directand fixed-day service


FAMILY ALBUM

The members of Air Cargo Club of Madras (ACCM) and their spouses attended the Club’s

annual ball in large numbers at Hotel Royal Le Meridien in Chennai on March 14, 2009. The

members of Rwacky Academy of Dance gave a scintillating performance and fabulous gifts.

ACCM annual ball presents an evening of fun


LOGISTICSSERVICES

“The event offered a

rare oppor tunity,

bringing transparency,

openness and complete

understanding between New

Globe personnel and their

clients and vendors,” said

Anand Didwania, managing

director, New Globe Group.

During an exclusive

meeting with CARGOTALK at

his Mumbai headquar ters,

Didwania informed that at the

event, an elaborate joint

interaction with top-level

representatives of air lines

and shipping lines fostered

better understanding and

harmony within the group.

“In these difficult times

when the world is passing

through an unprecedented

economic crisis, the need for

familiarisation and openness

plays an even greater role.

New Globe has a legacy of

being customer-centric. Our

customer familiarisation event

resulted in an excellent

environment between our

group and our clients as

well as vendors paving the

way for a promising future,”

said Anuj Didwania, director,

New Globe Group.

Numerous ideas were

exchanged at the joint

gathering for doing business

more effectively. New Globe’s

company-vendor-client get-

together was greatly

appreciated by all, he added.

“We will hold similar get-

togethers in other locations

as well,” he informed.

“New Globe has taken a

conscientious decision to invest in its

clients and vendors at this critical

time,” said Mahendra Sonsurkar,

director - finance, New Globe. “We at

New Globe believe that the current

global economic downturn should be

battled by building relationships

and investing in the same instead

of cutting back on such activities.

New Globe feels that in the long-

term, this is the way to succeed

in a business characterised

by strong interpersonal

relationships,” he added.

Over 200 members of the

trade and transpor t industry

par ticipated in the New

Globe customer familiarisation

programme, which turned out to be

a grand success, giving complete

satisfaction to the host company and

the customers as well.

New Globe Logistik

holds customer familiarisation event V. RA M A N U JA M

Veteran

total logistics

solutions

provider New

Globe Logistik

India held

a customer

familiarisation

event on

February

20, 2009.

The event

brought

together

exporters,

importers,

airlines and

shipping

representatives

to help customers

become more

competitive in the

global market.

Anand Didwania

New Globe adds new productIn a separate meeting with this

correspondent, Ashwin Didwania,

director, New Globe Logistik, said that

the company has

introduced a new

product for air export

consol. The highlight

of the product is that

it offers flat rate of

shipments to most

of the European

destinations.

When questioned

about the logic,

Didwania replied, “We

at New Globe feel the

need for new products

to join our traditional

freight and logistics industry to help

customers become more competitive in

the global market. I feel that the current

slowdown, believed to be damaging the

world manufacturing sector, is also

offering an opportunity for companies to

change their strategies and processes,

leading to launch new initiatives to help

sustain competency. Competency in TD

delivery of goods and maintaining lower

cost cycles in logistics is also very

impor tant. Companies are becoming

smarter and looking for new solutions to

manage the crisis better.

Our new product is cost-

effective and New Globe is

offering it without

compromising on quality.”

Explaining how it

will benefit small

consignments too,

Didwania said the new air

consol product would offer

a flat rate on fixed bi-

weekly services ex-India

to major destinations

worldwide. “This rate is

offered due to our bulk

booking of space with airlines and cost

benefit of the same is passed on to

customers who would otherwise pay

higher rates for lower weight slabs. The

target market is the lower weight slabs,

which is currently moving at high freight

rates. We have taken this step with the

aim of improving costs and

competitiveness of shippers of small

consignments,” he said.

Ashwin Didwania

(L-R): Anuj Didwania & Mahendra Sonsurkar


GUESTCOLUMN

India is estimated to spend 13 to 14

per cent of its Gross Domestic

Product (GDP) on logistics. The major

logistics functions for Indian

industries include transpor tation,

warehousing, freight forwarding and

management of information systems

(MIS). Of these functions,

transportation and freight forwarding

have been traditionally outsourced to

external service providers with

relevant expertise and infrastructure.

The warehousing and MIS functions

have been mostly managed in-house

by the industries.

Today, more and more

companies across ver ticals are

increasingly seeking end-to-end

solutions from logistics services

providers to reduce logistics cost and

focus more on their core

competencies. Logistics players with

right capabilities are also increasing

investments to become end-to-end

integrated players. As per the

investment plans of leading service

providers in India, the logistics

industry’s capital expenditure is

increasing progressively to almost

match its revenue growth - a strong

indicator of both logistics companies

desiring to become integrated

service providers and the industry

enjoying investment-driven growth.

Blue Dart, South Asia’s leading

express air and integrated

transpor tation, distribution and

logistics company and a part of DHL

group jointly invested over US$ 25

million in a 220,757 square feet

state-of-the-ar t and first-of-its-kind

integrated facility in Bengaluru

International Airpor t (BIAL). This

combined facility that handles both

domestic and international express

operations at BIAL brings substantial

synergies in operations like reducing

throughput handling time,

streamlining processes and optimising

the utilisation of space and common

resources. The facility augments the

dedicated aviation network with its

own maintenance, ground handling

and airside-cum-cityside operations

capabilities. Further, it is also scaled

to accommodate future growth over

the next 10 years. Blue Dar t has

recently inducted a Boeing 757

freighter to take its fleet strength to

seven freighters - four B-757s and

three B-737s.

Infrastructure congestion: Key

challenge

Indian logistics industry is

currently hampered due to lack of

superior infrastructure in roads (over

70 per cent of freight transportation

in India is via roads), por ts and

complex regulatory structures.

Infrastructure, both air

and surface, continues to

remain a serious challenge.

There are severe space

constraints in most Indian

airpor ts. The airside and

cityside infrastructure are often

inadequate to handle the

growing logistics demands.

The National Highways

form only 2 per cent of the

entire road network in India but

are forced to handle over 40

per cent of the national road

freight traffic, putting

enormous pressure on highway

infrastructure. Also, on an

average, a commercial vehicle

in India runs at a speed of 20

miles per hour (mph)

compared to over 60 mph in

the mature logistics markets of

Western Europe and USA.

Prospects for logistics service

providers in India

India’s logistics market is

expected to experience a double-digit

growth. Today, India is emerging as

an important source hub for many

industries. Besides, we have a large

consumption base with the expansion

of secondary markets. The Indian

market is no more restricted to metro

cities but spreading over to tier II and

tier III cities. Indian logistics market

AN I L KH A N N A

Realising

the potential

in the logistics

market, logistics

service providers

are expanding

their basket

of services as

companies

are looking

for more

than just

transportation

of its products

and raw

materials.

CARGOTALK has

more details

on the same.

Logistics in India

gears up to meet growing demand

Anil Khanna


GUESTCOLUMN

is slated to grow at a compound

annual growth rate (CAGR) of over

16 per cent from 2007-10. This is a

strong indicator of the potential of

the logistics industry.

Strong growth enablers exist in

India in the form of infrastructural

investments, phased introduction of

value added tax (VAT) and

development of organised retail and

agri-processing industries. In

addition, strong foreign direct

investment (FDI) inflows in

automotive, capital goods,

electronics, retail and telecom will

lead to increased market

opportunities for logistics providers

in India.

Factors fuelling growth of

logistics industry in India

Logistics assumes central activity

in growth areas. It is one sector

which will be the backbone of the

flourishing trade activity and

infrastructural development and

receive special attention by the

government and the private sector in

the coming years.

Rural logistics is set to

contribute a larger share to this with

rising disposable incomes, changing

lifestyle, focus of government and

private sector on rural and

agricultural related activities. Rural

logistics has received special

attention in the past two to three

years. Rural logistics, though

lucrative, has a number of

challenges, which makes it difficult to

tap the potential. Development

of cold chain/warehousing

infrastructure also remains at

the core of the government’s

plan to enable growth of rural

areas. Likewise, providing

employment oppor tunities for rural

youths and meeting India’s

growing food demand, etc. are some

of the other challenges.

Take for instance, Blue Dart, a

pioneer in many service aspects, is

well poised to take advantage of

such growth parameters. The

company is planning to roll out 25

new product and quality initiatives in

a phased manner over one year’s

time. The new initiatives will upgrade

its product range and improve

service quality, thereby offering

customers state-of-the-ar t air

and ground express solutions across

the country.

Some of these products are

designed specifically for industries

with time definite requirements and

there are others, which cater to

ver tical specific requirements, thus

giving the much-required flexibility to

the shipper and consignee.

Blue Dart’s quality initiatives like

First Choice and Net Promoter

Approach (NPA) are aimed at

strengthening and enhancing Blue

Dart’s premier position as the leading

air and ground express distribution

service provider in India.

First Choice: A global initiative by

Deutsche Post DHL, it will transform

the way we do business and enable

us to consistently deliver a superior

service experience to our customers

to become their first choice. First

Choice is a systematic and

sustainable approach to transform

business, increase customer

satisfaction and continually improve

service quality for customers.

Net Promoter Approach (NPA) :

It is a discipline to help companies

understand their customers’ specific

needs and incorporate the needed

changes to ensure customer delight.

Blue Dart, in association with

DHL, has launched the following

products in the last few months:

Duty & Taxes Paid (DTP): This is

a value-added service that allows

an expor ter from India to manage

his shipping requirements seamlessly.

For outbound shipments, DHL entity

overseas clears the shipment and the

amount is recovered from the

consignor or shipper.

Prepaid University Express:

Blue Dar t recently announced

the super-saver University Express:

Pre-paid coupons, which is a value-

added service for university

applications worldwide.

Express Pallet: It is a convenient,

flexible and economical way to send

goods internationally. The units come

in three sizes of 50 kg, 75 kg and

100 kg and are designed to

accommodate a variety of products.

Economy Select

(ESI): It is a product

which travels on deferred

line haul (multimodal or

cheaper linehauls) and

cost savings are passed

on to customers. ESI is a

reliable door-to-door

service for not-so-urgent,

yet time-sensitive heavy

shipments. It combines

economical price based

acceptable deferred time

bound deliveries.

With the collective

economic benefits of

growing per capita

disposable incomes, fast

growing manufacturing

and organised retailing

sectors, increasing

external merchandise

trade and infrastructure investments,

the logistics sector is set to witness

considerable growth in the next five

years. Automotive, pharmaceutical,

manufacturing, retail and FMCG

sectors are increasingly opting to

outsource its logistics requirements

to specialised service providers. The

key drivers for logistics outsourcing

are the corporate trends of

focussing on core operations,

competitive pressure and increasing

global trade.

Logistics service providers in

India are gearing up to meet

the growth demand, incorporating

value-additions in services and

customising its supply chain

management solutions.

Anil Khanna is the managingdirector, Blue Dart Express

Logistics industry

n India’s industry is hampereddue to lack of superior infra-structure in roads, ports andcomplex regulatory structures

n Logistics providers are incor-porating value-additions in serv-ices and customising supplychain management solutions

Major logistics functions for Indianindustries include transportation,warehousing, freight forwarding andmanagement of information systems


FAMILYALBUM

Air Cargo Club of Delhi organised its annual ball at Nitish Kunj, New Delhi,

on March 7, 2009. The meticulously organised event was attended by around

750 club members and their spouses, which is an increase of about

100 members compared to the annual ball of 2008.

More participants at ACCD annual ball

April 09

Documents

Transcript of April 09