Technology in air cargo Innovation is the...

Vo l 6 - I ssue 3 | JULY - SEPT 2015

Voice of Indian Air Cargo Industry ww

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new

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mTechnology in air cargo

Innovation is the key

Gulf carriers lead the Indian air cargo growth

Special RepoRt

10 22 Cathay Pacific

FocuS aiRline

20 Amsterdam Airport Schiphol

FocuS aiRpoRt

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Cover StoryInnovatIon Is the key for technology

SpeCial reportgulf carrIers lead IndIan aIr cargo growth

Though the initiatives like Make in India and e-commerce are music to the ears of Indian air cargo fraternity for development in infrastructure and technology, there is a dire need to adopt innovative modern technologies for the better transformation in the air cargo industry.

Middle East region is the most important region when it comes to Indian air cargo trade. Airlines from the region have been on the top in the Indian market with their expansions, tie-ups and initiatives, which is of course giving tough competition to other carriers from Europe, Asia and America.

22 strategIcally expandIng cargo map In IndIa

20 creatIng strong trade lanes between IndIa & eu

With an aim to expand its cargo map in India, Cathay Pacific has strong plans to add capacities, destinations and more services.

Amsterdam Airport Schiphol has been fostering Indian cargo industry to develop its trade with Europe, especially in the pharma sector.

16 dhl’s passIon for fashIonWith the change in demand of the consumers with the change in seasons and time coupled with their expectations of proper landing of goods at right time and at right place, supply chain has become an important factor for the Indian apparel industry especially by air and DHL Express is one the leading players who understands the industry quite well through its long-term association with fashion shows.

FoCuS: Cathay paCiFiC

FoCuS: amSterdam SChiphol

SpeCial Feature

GueSt Column

Jasjit Sethi, chief executive officer of Transport Corporation of India Supply Chain Solutions, writes about the impact of e-commerce and omni channel on apparel logistics

update“my agenda Is to promote networkIng, knowledge & advocacy” 13

14Sanjiv Edward, is appointed as the new chairman of The International Air Cargo Association (TIACA)

THE OFFICIAL MAGAZINE OFAIR CARGO AGENTS ASSOCIATION OF INDIA

(ACAAI)

ACAAI OFFICE BEARERS

PRESIDENTS L Sharma

VICE PRESIDENTHemant Bhatia

SECRETaRy gENERalSunil Arora

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EDITORReji John

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[email protected] Mobile: +91 9820397514

DESIgN CONSUlTaNTPrasad Mohite

gRaPHIC DESIgNERRajesh Natrajan

DISCLAIMERViews expressed in the magazine

are not of aCaaI

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10

ContentsVOL 6 - ISSUE 3 • JULY - SEPTEMBER 2015

JULY - SEPT 2015 | www.acaainews.com2

Dear Friends,

The ‘Make in India’ initiative taken by the Prime Minister

of India is slowly and steadily taking its shape and all

ministries have made a task force for its implementation.

The concerned government officials are now holding

meetings with industry stakeholders of the air cargo

and the manufacturing industries. Recently, the minister

of finance held a national workshop on ‘Make in India’

and laid stress on the need for manufacturing growth

to ensure employment for the youth of the country and

underlined several initiatives to facilitate ease of doing

business in the country. He laid stress on reducing the

manufacturing and transactional cost which is very

important for increasing EXIM growth of our country.

Such initiatives taken by the government will definitely

have a positive impact on the Air Freight and Logistics

industries, if these are implemented promptly and

speedily.

There are certain initiatives, concerning the cargo

industry, which the government has taken recently and

which will have far reaching scope and implications in

the improvement of the world class infrastructure which

is most important for the industry. Some of the major

steps which the government has taken are as under:

1). Air Freight Stations (AFSs)

The policy guidelines for setting up of Air Freight

Stations (AFSs) have been issued by Ministry of Civil

Aviation on 28 October 2014.

AFS is an Off-airport Common User Facility equipped

with fixed installations of minimum requirements

and offering services for handling and temporary

storage of import and export cargo. The ministry’s

initiative will create an enabling environment for

promoting international air cargo operations in an

efficient and effective manner. ACAAI has been very

actively involved in the formulation of these policy

guidelines.

It is hoped that a large number of AFSs will be

set up in the near future, as this will give a

tremendous boost to the air cargo industry,

facilitate its operations, and decongest the

saturated cargo facilities and infrastructure at

some major gateway international airports

which have congestion and a high dwell time.

From the President's desk

Air cargo industry steps up for 'Make in India'

JULY - SEPT 2015| www.acaainews.com 3

2) Customs Clearance Facilitation Committee (CCFC)

The Central Board of Excise and Customs (CBEC) has

recently set up a new high-level administrative body named

‘Customs Clearance Facilitation Committee' at major seaports

and airports, with the responsibility of ensuring expeditious

customs clearance of import and export goods. Earlier, there

was no monitoring mechanism for the various functions

of the allied agencies, and there was a general impression

that customs were the sole reason for the increase in dwell

time. ACAAI has appreciated this initiative, and the stated

objectives and modalities of this move will considerably

expedite clearance and movement of sea and air cargo in

our country.

3). Skill development in air cargo sector of aviation

industry

Ministry of Civil Aviation (MoCA) has taken up the initiated

measures for skill development in the air freight sector.

Accordingly, MoCA recently convened a meeting of

stakeholders to deliberate and exchange views to arrive

at a plan of action for this purpose a task force has been

constituted under the chairmanship of economic advisor,

MoCA, with representatives from stakeholders to come up

with the industry’s requirements and ways and means to

implement this objective.

4). Constitution of a joint forum on common

platform by ministry of civil aviation

Renu Singh Parmar, Economic Advisor, MoCA has

emphasised the need for constitution of a Joint Forum on

a common platform for the stakeholders to take up issues

of common interests and importance to the industry.

Consequently a meeting under the Chairmanship of the

Economic Advisor was held on 8 May 2015, when three

major issues were discussed:

(a) Implementation of EDI to remove paper where EDI

messages already exist:

The Joint Forum agreed that certain recommendations

about this subject should be taken up at the highest level

on priority basis for consideration by the government to

achieve paperless transactions in the implementation of EDI

for the processing of international cargo at gateway airports.

(b) Single Window Clearance:

Implementation of this facility would considerably expedite

and facilitate the clearance of import and export goods,

which in turn would be of great benefit to industry and

trade. However, implementing this measure requires the

involvement of multiple agencies such as Customs, Drug

Controller, Wild Life authorities, Plant Quarantine, etc.

Currently, due to various constraints in these agencies, very

little progress is being made in this matter. It is hoped that

this measure will be taken up again for consideration at the

earliest.

(c) Benchmarking of Performance standards of cargo

handling service providers:

The processing time for clearance of goods at various

Airports in India are not comparable to regional or global

standards. The primary reason for this situation are the

procedures and processes which are currently followed

by various regulatory authorities, airlines, ground handling

agencies, etc. It is therefore very essential to review the

existing procedures and introduce performance standards

and criteria for all the agencies which have a role to play in

clearance of import and export goods. Airports Economic

Regulatory Authority (AERA) also has a key role to play in this

context.

5). Service tax issues as per Finance Act 2015

Certain provisions in Finance Act 2015 pertaining to service

tax regulations have caused concern and anxiety in the

industry. These changes are likely to have a cascading effect

and far reaching consequences on the trade and industry.

The imposition of additional taxes and levies will naturally

increase the cost of imports and exports to and from our

country, and may result in making exports from India

uncompetitive vis a vis other countries with lower costs.

This will adversely affect the foreign exchange earnings of

our country. This issue therefore needs reconsideration and

review by the government to facilitate and boost the export

industry.

S L Sharma President, ACAAI


CoVer storY | Technology TRenD

While initiatives like 'Make in India' and e-commerce are music to the ears of Indian air cargo fraternity for development in infrastructure and technology, there is a dire need to adopt innovative modern technologies for the better transformation of the air cargo industry.

JASLeen KAur

Technology in Air Cargo:Innovation is the key


India has set for itself an ambi-

tious target of increasing the

contribution of manufactur-

ing output to 25 percent of

gross domestic product (GDP)

by 2025, from the 16 percent at

present. According to a report

by Mckinsey & Company,

India’s manufacturing sector

could touch US$ 1 trillion by

2025. Investments, including

Foreign Direct Investment (FDI)

are likely to increase and many

multinationals are placing their

bets on India. Top technology

firms such as GE, Bosch, Pana-

sonic, Samsung, to name a few,

have decided to invest further

in electronic, medical, automo-

tive and telecom manufactur-

ing clusters. “We have received

57 investment proposals of over

US$ 3.05 billion of which 30

proposals worth US$ 1.04 billion

have been approved,” said Ravi

Shankar Prasad, Union Minister

for Communications and Infor-

mation Technology.

All this is certainly music to

the ears of the Indian air cargo

sector who despite its best

efforts has remained somewhat

languished, waiting for the

right kind of push. There is a

sudden realisation for the cre-

ation of technology and how

it is an important cog in the

wheel of development.

In May 2015, Air cargo indus-

try experts participating in the

Unisys Cargo User Group (UCUG)

community report stated that

disruptive innovations driven by

cloud computing collaboration,

sensor technology, and digital

business are radically transform-

ing the way air cargo organisa-

tions work and integrate in the

supply-chain. This is creating

a fast-growing gap between

leaders and laggards. “The air

cargo industry is at a tipping

point where transformational

innovation enabled by modern

technologies has become a real-

ity. The most innovative carriers

are now data-driven businesses

that are responding dynamically

to market changes, using cloud,

sensors, analytics and digital

business. Such organisations are

differentiating themselves with

speed, control and new value

by re-thinking all aspects of their

business,” Christopher Shaw-

don, vice president Logistics

Solutions for Unisys said in the

report. Unisys is an international

technology company.

India’s mission to become tech-savvy

Parvinder Singh, Managing

Director, Hans Infomatic said,

“The air cargo industry in India

has grounds for increasing

optimism as the rise in e-com-

merce and the Make in India

programme begin to flourish.

Internet penetration is around

17 percent, and it is expected

to double by 2016. The Indian

air cargo industry seems to be

reached at a crucial stage where

a fast-track approach to digitali-

sation is required to keep pace

with the global standards.”

“Deployment of technology

is another challenge that was

hotly debated. Technology

simply for the sake of technol-

“The industry is in agreement that, as a whole, they need to do a better job of sharing and reusing data, including a large portion of shipment data.”

Arvind MehrotrA NIIT Technologies


ogy has no meaning unless

it is part of an overall plan to

provide effective solutions

and services. Infrastructure,

processes and people all have

to be integrated and aligned

with the customer’s objective.

Therefore, Air Cargo Agents

Association of India (ACAAI) and

Kale Logistics together created

an EDI platform UPLIFT which

has provided trade members

with a single window to ex-

change data electronically with

supply chain partners such as

airlines, shippers, chambers of

commerce, customs, customs

house agents,” said Aman

More, Senior Vice President,

Kale Logistics. In the UPLIFT

platform, the data about ship-

ment is entered only once and

then it is reused for creation of

documents required by mul-


tiple agencies. Furthermore, but

this data is also transmitted to

multiple agencies via industry

standard EDI messages from a

single system. This in turn also

helps these entities reduce their

documentation effort.

Not only private players,

but the government carrier

Air India is also in the same

run to become tech-savvy.

Sanjiv Kumar, Executive Director

(Cargo), Air India shares said,

“Air India Cargo uses the latest

state-of-the-art technology for

cargo activities called Logistic

Management System (LMS)

for cargo sales and handling

functions of import and export.

The LMS system supports EDI

interface with Indian Customs.

The movement of the cargo

can be tracked through LMS.”

“Though the industry has

been adopting technology in

many ways, still the indus-

try has a long way to go in

adopting best practices and

technological innovations that

will modernise air cargo. And

we are taking continuous effort

towards this,” Kumar added.

Technology suggestionsSingh added, “The air

cargo industry is undergoing

a technology transformation

– expanding from heavy use

of legacy mainframe systems

to more customised interfaces

used for networking planning,

flight operations, revenue ac-

counting, and other processes.

By embracing technology and

leveraging the latest advances,

air cargo carriers will be able

to streamline their operations,

reduce costs, and optimise

their efficiency. For example,

one potential remedy to meet-

ing customer demands for

swifter deliveries is to leverage

existing e-freight technology,

which aims to take the paper

out of air cargo and replace it

with the exchange of elec-

tronic data and messages.”

Echoing similar thoughts,

More said, “Fortunately in India

we have both these kinds

of initiatives in progress and

India already figures in the list

of fasted growing e-freight /

e-AWB countries. India has an

opportunity to create bench-

marks in the world in this area.

The cargo community should

collaboratively embrace and

encourage such initiatives that

will set benchmarks for the

world to follow.”

Another step the air cargo

industry can take to improve

efficiency is by designing an

effective shared data platform

that allows for the seamless

sharing of data globally, sug-

gested by Arvind Mehrotra,

President and Global Busi-

ness Head - Infrastructure

Management Services at NIIT

Technologies. “The industry is

in agreement that, as a whole,

Indian air cargo industry always keep eye on the international market to match up the global standards. In technology, one such advancement taking place all over the world is drones. Recently, a group of European engineers supported by IBM introduced small cargo drones in Africa named them as “flying donkeys” and now in development, the drones will carry 10kg (22 pounds) of cargo each over distances of up to 120km (75 miles) to supply medicine to remote communities or food to refugees. They are designed to be cheap and rugged enough to deploy across the continent, and could perhaps serve as a proving ground for retailers like Amazon that are unable to experiment as freely in the rich world because of strict regulations. Test flights are planned in Africa for later this year. The continent is regarded as an ideal arena because its airspace is not congested, and because poor roads mean that demand for cheap air cargo is immense. Experiments such as this underscore a remarkable change taking place in Africa. A continent that has long accepted technological hand-me-downs from the West is increasingly innovating for itself. Now the mot question is: can India learn a lesson from the initiative taken in Africa for the betterment of air cargo industry of India?

Cargo drones in Africa: Can India learn a lesson?



The Unisys report sug-

gested using RFID sensors on

items within a shipment that

can quickly identify if part of

a shipment is missing, exactly

what is missing and where it is

likely to be. “Data from sensors

on containers carrying sensitive

air cargo such as pharmaceuti-

cal and perishable products

can automatically send key

metrics of environmental

conditions throughout the

transport lifecycle to a logistics

management system so that

a full audit trail is available on

demand. Such ready access to

up-to-date data throughout

the supply chain provides air

cargo carriers with insights

to help ensure that customer

promises are fulfilled even

when there is disruption along

the route,” the report stated.

Furthermore, Kasina sug-

gested, “With self-service,

cargo customers have more

control of the process, and

have been demanding the

convenience and value they

want. Kiosks that confirm deliv-

ery collection lists in less than

a minute have been offered

to customers at some carriers.

With the paperless technology,

customers and warehouse staff

can achieve a more efficient

import delivery process.”

More air cargo carriers are

investing in digital and mobile

systems to improve customer

interfaces, enhance user experi-

ences, and drive operational

efficiencies in their procedures.

Some carriers have migrated

their legacy operating platforms

to web-based systems, which, in

turn, allows them to launch the

mobile technologies that their

customers value. “Smartphone-

friendly websites and apps have

also become more common. By

implementing these technolo-

gies, carriers have been able to

transform themselves and

enhance their operational ef-

ficiency,” Singh added.

Conclusion Mehrotra is of the opinion

that air cargo carriers must

do all they can to leverage

existing technology, as well

as introduce new IT solutions,

in order to improve their effi-

ciency and transparency. They

should also seek to reduce

costs and transport time in the

“Air cargo carriers can ensure the integrity of the product throughout the supply chain by leveraging newer technologies throughout the process.”

SreenivASA KuMAr KASinAAccenture

they need to do a better job

of sharing and reusing data,

including a large portion of

shipment data. We believe

the industry should develop a

platform that facilitates such

exchanges, which would

significantly boost efficiency,”

he added.

Another way the indus-

try can reinvent itself is by

improving the transparency

of its supply chain operations.

Sreenivasa Kumar Kasina, Senior

Manager at Accenture said,

“Air cargo carriers can ensure

the integrity of the product

throughout the supply chain

by leveraging newer technolo-

gies throughout the process.

For instance, some carriers have

introduced GPS solutions that

enable shippers to track the

location and condition of high-

value, time-critical, or other

important shipments.” The GPS

has added more visibility to a

supply chain that has already

benefitted from technology's

ability to transact and track

shipments.

supply chain. In doing so, the

industry will remain competi-

tive and agile.

Recently, during IATA’s

e-Cargo Conference and Work-

shop in Geneva, Switzerland,

John DeBenedette, managing

director of the online platform

for independent forwarders,

WIN called on all air freight

stakeholders to urgently adopt

a “technology manifesto for

change” and bring the industry

into the 21st century. “We need

disruptive innovation, to look to

a common platform accessed

by the web,” said DeBenedette.

“If we continue relying on 1990s

solutions, e-freight adoption

is going to take forever.” He

continued, “E-collaboration is

powering modern business ev-

erywhere, the likes of Amazon

are booming, the technology

is less expensive, more reliable,

and more secure. We have to

move away from saving and

forwarding messages, we need

a paradigm shift here and now.”

“Let’s call it a technology

manifesto for change. We need

to agree on this and move the

industry forward and we need

to do it now,” he concluded.

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sPeCial rePort | InDIa-uae aIR caRgo TRaDe

Leading the Indian air cargo growth

Gulf carriers

According to the

International Air

Transport Association

(IATA) Industry

Forecast 2014-2018, India has

emerged as the second fastest

growing air cargo market after

the Middle East and is expected

to grow at a compound annual

rate of about seven percent

over the next five years.

Though both regions are in the

race, the other side of the story

narrates a strong relationship

between India and the Middle

East air cargo fraternities,

which help both the nations

to strengthen their air cargo

growth. The rise of the gulf

carriers in the Indian air cargo

industry has been a much-

talked about topic among

the fraternity. Irrespective of

the competition or downslide

in the industry, the Middle

East airlines keep on hogging

headlines for their expansion in

the Indian sky.

Emirates SkyCargo is a

successful cargo airline in the

Indian air cargo market. Though

Emirates SkyCargo has con-

quered the Indian skies, other

airlines have left no stone un-

turned to mark their presence

in the Indian market and have

been working strategically. The

recent deal between Indian

carrier Jet Airways and Middle

East based Etihad brought a

very significant move in the

Indian air cargo sector. India

is the largest air cargo market

in the South Asian region, but

very few airlines based out of

the country have dedicated

air freight services. Jet Airways

announced in March that it

has plans to launch freighter

services, becoming the first

private Indian passenger airline

to offer all-cargo services. If

the deal happens, the freighter

services will be operated using

an A330-200F aircraft that was

wet-leased, a leasing arrange-


ment where an airline provides

an aircraft, crew, maintenance,

and insurance to another from

its strategic partner, in this

case it is Etihad Airways. “With

e-commerce expanding and

‘Make in India’ initiative fuelling

growth of domestic cargo, in

addition to access to over 100

destinations through Etihad’s

Abu Dhabi gateway, Jet has

the opportunity to do well on

both origin-destination and

trans-shipment cargo,” said

Bharat Thakkar, Past President

of Air Cargo Agents Association

of India and Joint Managing

Director of Zeus Air Services.

The airline’s decision

brought a positive environment

among the Indian air cargo

fraternity. However, in early

June Jet Airways announced

that the freighter plans on hold

citing "market conditions not

being favourable" for such a

plan. The spokesperson of the

airline told a daily newspaper,

Middle East region is the most important region when it comes to Indian air cargo trade. Airlines from the region have been on the top in the Indian market with their expansions, tie-ups and initiatives, which is of course giving tough competition to other carriers from Europe, Asia and America.

JASLeen KAur

“Internal processes and frame-

work are in place at Jet Airways

and our strategic partner Etihad

Airways to allow the initiative to

progress at a later date.”

Though the initiative has

been on hold for some time,

there are key players from the

Middle East region who are rul-

ing the Indian skies and giving

tough competition to European

and American carriers.

emirates: the premium player

To begin with the topmost

carrier Emirates SkyCargo, had

a momentous 2014 with the

move of its freighter operations

to Dubai World Central’s (DWC)

Al Maktoum International

Airport. Its new cargo terminal

at DWC offers the capacity that

positions Emirates SkyCargo for

future growth, and enables the

cargo division to provide a bet-

ter experience for its custom-

ers. Keki Patel, Cargo Manager

- India and Nepal at Emirates

SkyCargo said, “India provides

a huge opportunity for trade,

business and travel. From the

beginning of this calendar year,

we have witnessed a consider-

able amount of growth in the

export segment for Emirates

SkyCargo. Across our 10 India

stations, Emirates Airlines has

seen month on month out-

bound load improvements

and that is a positive sign for

India 2015.” Adding, “We are

hopeful that industry initiatives

like e-freight which involves

participation and synchronisa-

tion of platform connectivity

and exchange of information

amongst various regulatory au-

thorities takes place to usher in

electronic paperless air carriage

of shipments and international

trade.” Emirates operates 185

weekly passenger wide-bodied

flights serving 10 destinations

across India providing the Indi-

an market a pan-India business

opportunity for exports and

imports. In addition, it operates

two freighter services a week

from India; one weekly turn-

around freighter B777F service

from DWC to Mumbai and back

and the second B777F service

operates from DWC to Chennai

and onwards to Hong Kong.

Each freighter offers additional

uplift market capacity of 100

tonnes per week adding up to

over 13,000 tonnes a month

of cargo load capacity in each

direction.

Saudia:– a heavy lift Another airline from the

Middle East which is bullish

on Indian air cargo sector is

Saudia Cargo, which recently

started freighter operations in

Mumbai with its B777F. The

airline operates 15 freighters

and operates a mixed pas-

senger fleet of B777s and

A330s to serve eight on line

destinations such as Mumbai,

Delhi, Lucknow, Hyderabad,

Bengaluru, Chennai, Calicut and

Cochin. From Mumbai only,

Saudia operates double weekly

B747F freighters with a capacity

of 105 tonnes per flight. Keku

Gazder, Regional Director Cargo

– Indian Sub Continent, Saudia

Cargo, said, “We have worked

so hard in the past few years to

establish ourselves with focus

on delivering quality customer

services and gaining the valued

trust of our clients in the online

stations, our next step will cater

to clients, focusing on getting

closer to them alongside the

manufacturing centres such as

tier 2 and tier 3 cities in India.”

etihad: Jet has set a path Abu Dhabi-based Etihad

has been quite positive for

the Indian market. One reason

could be obvious the Jet-Etihad

deal and as mentioned earlier,

now Jet has started showing

interest in cargo side too. The

second reason could be - India

and China are the two key

markets for the airline, which

boosted Etihad’s cargo revenue

last year. The airline registered

its strongest ever rise last year


backed by good performances

from India (32 percent) and

China (14 percent). “India is

easily among the biggest

opportunities for the air cargo

business, where the competi-

tion is very limited. And, with

the 'Make-in-India' campaign,

one can expect huge growth in

export sectors such as phar-

maceuticals, automobiles and

electronic equipment. Right

now, it is aptly applicable to Eti-

had as it is a strategic partner of

an Indian carrier (Jet),” averred

Thakkar, while supporting his

statement with the statistics,

mentioning that Directorate-

General of Civil Aviation records

show only Blue Dart Aviation

has a fleet of five dedicated

Boeing B757 cargo planes. Air

India had stopped freighter

aircraft operations in early 2012,

due to financial problems. In

2013-14, Emirates was leader in

the air freight business by car-

rying 184,753 tonnes, of which

131,748 tonnes was outbound

cargo. Jet trailed with a total air

cargo business 120,821 tonnes,

of which outbound accounted

for 67,186 tonnes.

Qatar: Continuing expan-sion programme

Qatar Airways Cargo is quite

bullish on the Indian market

and therefore, at the begin-

ning of this year, it added its

seventh freighter destination

in India, flying twice a week

to Ahmedabad. During the

launch, Qatar Airways' chief

officer (cargo), Ulrich Ogier-

mann, said, “Our goal is to be

a world-class air cargo service

provider and in order to

achieve that goal; we need to

constantly increase frequen-

cies and expand our number

of destinations, so that our

customers can benefit from

our global reach. The addition

of these new freighter routes

clearly represents yet another

milestone in the company's

growth strategy.”

The year 2014 was a highly

productive one for Qatar Air-

ways Cargo with the launch of

QR Pharma for pharmaceuti-

cals and healthcare products

and QR Fresh for perishable

products; and the migration to

the fully automated, state-of-

the-art cargo facility at Hamad

International Airport. Qatar

Airways Cargo also launched 11

dedicated freighter destinations

in 2014, including Delhi and

Hyderabad in India.

Competition in the airIn the competitive environ-

ment, everyone tries their

hands at innovations to create

value for customers and at the

same time, to create their

position in the market. Keki

said, “Emirates is committed to

excellence. Our services have

been developed and constantly

enhanced to provide our

customers with cutting edge

air-freight services. Our primary

objective has always been to

reach out with unique solutions

and engage with the end

customers.” Saudia, too, is quite

active with its tools. “Focussed

and dedicated leadership,

quick response to market

changes as an example the

OK-2-KSA, an online tool that

assists shippers for electronic

approvals for their imports into

KSA, most importantly our

clients from all the major

markets that want to do

business with us,” Gazder

mentioned, adding, “We are

currently growing year-on-year

at about 12 percent. In the past

two years, we have seen a

major increase in clients those

who want to do business with

us and those that who already

want to do more with us.

Saudia Cargo will take advan-

tage of every opportunity that

is available to expand its

business and operations in

India.” Qatar will come up with

more destinations in India for

freighter services and Etihad is

also looking forward to

enhance its revenue from

Indian market. Even India is

open to sign its first air service

bilateral agreement with Qatar,

which will give a further boost

to the India-UAE relations and

will lead to air cargo growth.

sPeCial rePort | InDIa-uae aIR caRgo TRaDe

13

UPdate | TIaca neW chaIRMan

“Promote networking, knowledge & advocacy” Sanjiv edward, Head of Cargo Business, Delhi International Airport Limited (DIAL) is the new Chairman of The International Air Cargo Association (TIACA). In an interview with Jasleen Kaur, Edward talks about his roles, responsibilities, goals and challenges.

Tell us about your role and

responsibilities as the Chairman of

TIACA?

Taking over as a chairman, my role would

be to give direction to the organisation

to further build on its strong foundation

while looking forward to create a strong

engaged membership base, increase our

global footprint reflecting the true nature

of our organisation, advocating the issues

to promote global standards, opportunities

for technology enhancements for air cargo

industry and delivering the Air Cargo Forum

2016 as a unique platform for industry to

transact business and network.

What is your agenda now?

I want to ensure we are actively practicing

and promoting our three pillars of

networking, knowledge and advocacy.

My priorities will be to build a strong

membership base; to increase the global

reach of TIACA engaging with the industry

globally and regionally taking up advocacy

issues that bring value; ensuring that the

Air Cargo Forum in Paris next year becomes

the most desired event to transact business

and understand future trends that impact

the businesses.

How do you plan to achieve your

goals? Do you find any challenges?

Currently, we are looking at how to simplify

the security processes by making sure

that whatever information is being used is

accurate and goes on time. Secondly, we

are looking at standardisation of security

equipments because there is diversity

of equipments and standardisation

brings manufacturing and utilisation cost

down. e-Freight is another important

thing wherein I want to invest my tenure

by emphasising more on embracing

technology to achieve speed.

Obviously, there are challenges while

driving commonality among the processes

and the equipments and building global

uniform standards.

As the first Indian in this post, what

you think are the expectations from

the Indian air cargo fraternity?

India is definitely a very promising and

emerging market and I see a lot can be

done in terms of bringing efficiency in

the logistics trade, reducing logistics cost,

improving the time we usually take and

giving our exporters and importers the

edge in the logistics. We need to interact

with global organisations. India can really

grow its air freight market by:

� Investing in infrastructure which

really drives growth. This has been

demonstrated by Indira Gandhi

International Airport in Delhi; they made

significant investments in developing

cargo infrastructure since 2010 and

over the last two years have recorded

the fastest cargo growth among major

airports in the country, to emerge as

India's top cargo airport in the last fiscal.

� Adopting processes that consistently

deliver operational excellence.

� Enhanced collaboration between

industry and government - an excellent

example of this is the Air Cargo Forum

India (ACFI), a local not for profit

association for the air freight industry

which is actively engaging with the

government on behalf of the industry.

TIACA also talks to World Custom

Organisation (WCO) and different UN

organisations for bringing simplification

in processes and I will play my part in

making sure that India gets benefits from

me heading the association as a Chairman.

TIACA will be willing to take a step ahead

to help if there is any specific issue which

needs global attention. And putting a

person from India as a head of TIACA itself

shows the importance of the Indian market

at the international platform.

What are the current issues at TIACA

at present?

There are various initiatives which TIACA

is driving in terms of innovation, process

simplification, technological enhancements,

etc. TIACA is currently aggressively working

on advocating global standards for air cargo

industry growth e.g. one of the issues being

Pre-Loading Advance Cargo Information

(PLACI) on which we are advocating global

standards for both the Customs (data sub-

mission and processing) and Civil Aviation

(shipment screening and mitigation).

In the area of technology, we are work-

ing towards wider adoption of software

standards for cargo screening. This would

allow broader use of the same hardware/

software, and effectively reduce system

cost. TIACA will also be advocating for a

greater commonality to training. This will

help groups such as ground handlers oper-

ate more efficiently. At our recent Executive

Summit in Miami, we held a workshop to

discuss ground handling challenges, and

this topic remains at the top of the list.

TIACA will also be exploring areas of

innovation in the supply chain, from

shippers through to consignees, as the

basic platform for our Air Cargo Forum in

Paris in 2016.


GUest ColUmn | JasJIT seThI

Impact of e-commerce and omni channel on apparel logistics

India’s garment industry,

which ranks the second-

largest in the world, plays a

major role in country’s eco-

nomic health. The industry is

expected to grow to the size of

$223 billion by 2021, according

to a report by Technopak Advi-

sors. This has implications on

several parameters of progress.

The sector already contributes

about 14 percent to industrial

production and four percent

to the gross domestic product

(GDP).

Over the years Indians have

been exposed to the concept

of fashion, with its cycles of

seasonal trends. Consumers

are becoming increasingly

concerned with the relevance

of prints, cuts and silhouettes

with regard to the current

style. While our garment

industry felt the effects of glo-

balisation after independence,

the economic liberalisation of

1991 further revolutionized the

way garments were viewed,

and consumed, domestically.

The emergence of celebrity

designers, the fashion weeks,

glamour industry and fashion

icons whose sartorial choices

are broadcast via the media,

has played a big role in prim-

ing the public consciousness

for the modern concept of

fashion.

Not only has this phe-

nomena helped our garment

industry grow, but also made

it crucial for manufacturers to

be highly competitive. Qual-

ity, price-points and design

are important. However

what’s most crucial, and basic,

to the success of a garment

business is the ability to “have

the right product, at the right

time, in the right place, at the

right price.”

JASJIT SeTHI


“Many companies consider logistics and supply-chain management the last frontier in achieving corporate leanness and maximising profits. Logistics plays an important role in ensuring that the right products reach the retailers at the right time.”

JASJit SethiTCI

they are needed. The services

of a good Logistics’ Service

Provider (LSP) comes in here.

The TCI Group, with rev-

enues of over Rs. 2,500 Crores,

is India’s leading integrated

supply-chain and logistics’ solu-

tions provider. With expertise

developed over five decades,

it has a network of over 1,000

company-owned offices, 10 mil-

lion square-feet of warehousing

space, and a team of over 5,000

trained employees. Textile and

apparel, one of TCI’s major verti-

cals, employs a dedicated team

to service this facility.

The advent of technology,

combined with the omni-

channel assault and social

networking, has made India’s

garment industry a furious

retail environment. This has put

the power to dictate the mar-

ket into the hands of the end-

consumer. Given the growing

importance of e-commerce

in Indian fashion, LSP’s are

playing a vital role for the gar-

ment sector now, more than

ever before. With e-commerce

making trends, and consump-

tion, more instantaneous, the

entire value chain focus has

to be shifted, from cutting

production costs to meeting a

consumer’s requirements. No

matter how vast an online or

offline retailer’s inventory may

be, profits are only achieved

once an item is in the con-

sumer’s hands or better yet in

their closet.

A good LSP has to anticipate

the evolving challenges,

due-diligences and solutions for

the garment sector’s supply-

chain needs. This is specially so

in the age of information

technology, and instant

gratification. At TCI, the

endeavor is to constantly

provide our partners in the

garment sector this support,

which enables them to stay on

top of a stunningly dynamic

market.

This is what supply chain

management (SCM) deals

with. Many companies con-

sider logistics and supply-chain

management the last frontier in

achieving corporate leanness

and maximising profits. Logistics

plays an important role in ensur-

ing that the right products reach

the retailers at the right time.

Like other industries, the

textile and garment sector

has its challenges. As with all

other consumer goods, the

textile product cycle is getting

progressively shorter. Consumer

tastes are fickle, and what sells

today may be shunned tomor-

row. Shrinking product cycles,

multiple vendors and manufac-

turing locations, rising expens-

es, and lack of process visibility,

among others, are hurdles this

industry must contend with.

The logistics sector is looking

for ways to reduce the amount

of time products spend in tran-

sit. One way to ensure that the

items consumers want to buy

are available when they want

them is to develop methods

for intelligent segmentation of

products that allow manufactur-

ers to fast-track trendy items that

need to hit the shelves quickly,

and develop strong replenish-

ment logic, processes, and

systems that cut costs by using

more efficient processes for

basic products that their stores

always carry, and only refresh on

a periodic basis.

Once products have been

segmented, companies can

determine the quantities

of each item to produce at

a time based on demand

forecasting. All this has to be

supported by linking a lean

retail environment to a lean

supply network that can re-

plenish required inventories as The author is the CEO of Transport Corporation of India Supply Chain Solutions


DHL’spassion for fashionWith the change in demand of the consumers, with the change in seasons and time coupled, with their expectations of proper landing of goods at right time and at right place, supply chain has become an important factor for the Indian apparel industry especially by air and DHL Express is one the leading players who understands the industry quite well through its long-term association with fashion shows.

JASLeen KAur

sPeCial FeatUre | apparel logistics


Black may be beautiful,

but white may be

wonderful! Red

doesn’t suit and

yellow doesn’t go with the

season! Going to college

ripped jeans or till-the-knee

Bermuda? Going to party the

well-draped sari or the floor-

length gown! This is an element

of style. Vogue is the buzzword

irrespective of any age and

everyone wants to incorporate

it into their wardrobe. But does

fashion have little to do with

the logistics and supply chain

management? Think again.

When images of the hot-

chic model hit the media, be

it through TV or magazines or

fashion shows or through big

banners outside the malls, con-

sumers scrambled to find that

ripped jeans, that till-the-knee

Bermuda, that well-draped sari

that ‘vogue’, racking up to sales

in whopping figures when it

was first grabbed the atten-

tion of the consumer. And only

then do apparel companies

send their supply chains into

overdrive to deliver on the ‘de-

mands’. Such celebrity-inspired

fashion crazes, as well as each

year’s new trends showcased

at fashion shows like Lakme

India Fashion Week or Wills

Lifestyle Fashion Week, make

the apparel logistics more time

sensitive than any other verti-

cal. And, the consumer is also

satisfied only with the proper

landing of goods at the right

time. Suppose a new trend of

ripped jeans is launched cater-

ing to college students at the

time of new session starts in

July. If these jeans don’t get to

the stores in time, it won’t be

the hot item anymore. Conse-

quently, due to cost reductions,

just-in-time capabilities, getting

product to store shelves faster,

new methodologies, and au-

tomation the supply chain has

become an important factor

for the Indian apparel industry,

where air logistics has a promi-

nent role to play.

Market sizeAccording to Apparel Export

Promotion Council (AEPC), In-

dia’s overall textile and garment

exports will likely rise by around

4-5 percent this fiscal and fall

short of the official target of

$45 billion, thanks to a massive

slowdown in Chinese demand

for cotton and yarn, trade and

industry. Though there has

been an increase in the total

export of apparel, export orders

have been declining from the

previous year. The garment

exports grew 13.4 percent

during April-February period to

$15.26 billion from a year earlier.

R S Subramanian, senior vice

president and managing direc-

tor, DHL Express India, shared,

“The apparel logistics market is

worth over $110 billion in India.

It is almost 10 percent of India’s

GDP. A streamlined supply

chain can do wonders for any

company, be it a service user

or service provider. Across all

industries, companies are realis-

ing the strategic importance of

value-added supply chain and

logistics services.”

DHL, the most passionate player

DHL Express, one of the lead-

ing players in apparel logistics

by air, has a strong commitment

to apparel industry through its

association with Lakme Fashion

Week. In the upcoming Lakme

Fashion Week Summer Resort

2015 DHL Express is sponsoring

known designers like Nishka

Lulla and Kunal Rawal. DHL is

the official logistics partner for

fashion week in 11 countries

across four continents and

continues for ninth year in India.

Subramanian said, “DHL has

been a long-time partner of IMG

Fashion Weeks worldwide and

we understand the business

and the needs of the industry.

The fashion, textile and apparel

industry is one of the most cre-

ative and demanding industries

and as the world’s leading logis-

tics company, we provide the

best solutions. Fashion Weeks

are a perfect platform for us to

demonstrate our expertise and

we are delighted to be a part of

this season once again.”

“Working with top designers

has been truly delightful. Their

designs are fresh and contem-

porary with an international

appeal, which is what brand DHL

epitomises. The fashion industry

is something that we at DHL

Express intimately understand,

given our association with 30

Fashion Week events spanning

15 cities. Lakme Fashion Week

is a perfect platform for us to

showcase our partnership with

the fashion fraternity and in the

last season in 2014, we were very

happy to be associated with

young and creative talent such

as MAWI and Gaurav Gupta. As

international specialists in logis-

tics, DHL works round-the-year

and round-the-clock to ensure

the fashion industry get the logis-

tics support they need to ensure

they remain cutting-edge in a

vibrant market," he added.

Time & demand as critical factors

Timing is the most critical

factor in the apparel logistics.

Consumer can only be satisfied

with the proper landing of goods

at the right time and at the

right place. Moreover, chang-

ing style assortments and major

seasonal change-outs, add to

the significance of the timing in

the apparel logistics. Being the

logistics sponsor of Lakme India

fashion week, DHL covers the

entire logistics value chain of the

fashion industry from material

purchasing, quick movement

of samples and quality control

of production to the direct

delivery of finished products to

boutiques. Tailor-made express

solutions address the latest

trends in the fashion world and

meet the specific needs of indi-

vidual customers. These include

value-added services such as

the provision of track and trace

capability to enhance shipment


visibility, express services for

efficient distribution of products

from factory to store at competi-

tive cost levels, as well as global

trade services to provide special-

ist brokerage assistance. And it

strengthens its presence in every

nook and corner of the world

thereby moving the fashion and

finally taking it to the ramp.

Technology has a key role to play

The apparel companies

need to engage hi-tech supply

chain providers to meet the

demands of the customers,

opined Subramanian. “While

part of it is still moving boxes,

it's more trend-driven than oth-

er verticals. Increasingly, apparel

companies turn to technology

to help meet the do-or-die

supply chain demands that

characterise this hypercom-

petitive environment. The shift

towards a high-tech supply

chain helps apparel companies

be more reactive to consumer

needs, which ultimately helps

sPeCial FeatUre | apparel logistics

them increase revenues,” he

observed. Custom-tailored

enterprise resource planning

(ERP), warehouse management

system (WMS), product life-

cycle management (PLM), and

inbound logistics software sys-

tems help apparel companies

combat supply chain obstacles.

Advances in RFID capabilities,

web-based technology, and

reverse logistics applications,

among others, also push

the industry forward. These

technologies dish out real-time

visibility information that lets

apparel companies better track

products across global supply

chains, and make timely deci-

sions on changes to style, color,

size, price, where products are

sold, and distribution pat-

terns, among others. Because

of the value-adds technology

provides cost reductions,

just-in-time capabilities,

getting product to store

shelves faster, new meth-

odologies, and automa-

tion the supply chain

has become a margin

factor rather than a

cost factor for apparel

companies.

Subramanian

informed that DHL

has been a pioneer in

developing the ‘Track and

Trace’ systems adopted

worldwide by all the

major international air

express companies.

This is a very good

example of customer

service self-help. “On the busi-

ness efficiency front, measuring

transit time has been one of our

key achievements. It has served

a benchmark against our own

commitments. This is another

example of how technology

has enabled us to translate a

measure into a quantifiable and

a measurable parameter. To put

it simply, ‘If you can’t measure it,

you can’t manage it’,” he added.

Supply chain obstaclesFactor in long lead times for

offshore manufacturing and

the necessity to meet retail-

ers’ requirements for timely

and complete delivery, often

reinforced with penalties there

is lot of supply chain obstacles

in the apparel industry. Sub-

ramanian said, “In India, the

apparel export business has

always faced the challenge

of meeting deadlines and

maintaining a lead time which

is becoming shorter day by day

with the advent of fast fashion

where the retailers are trying

to get the manufacturing of

the merchandise done much

closer to the selling season. This

is pushing all the members of

the supply chain to optimise

performance. The NCR is one

of the important export hubs

of apparel business. Since the

region does not have proxim-

ity to export houses, buying

houses and freight forwarding

companies, this region often

face operational and infrastruc-

tural challenges.”

Competition in the airHowever, the competition

is everywhere and apparel air

logistics is not an exception.

FedEx, on the other hand, was

the Official Logistics Partner

at the 13th Wills Lifestyle India

Fashion Week, held in New Delhi.

Through its deep knowledge of

the industry, FedEx helps apparel

customers realise competitive

advantages within their supply

chain that can cut days and even

weeks off distribution cycles and

increase profits. FedEx provides

time-definitive deliveries for spe-

cial garments that need to reach

consumers or retailers immedi-

ately and provide assistance with

customs clearance. FedEx also

produces packaging specifically

for the textile industry to help

ensure product arrives safely.

The FedEx Express sponsorship

of Wills Lifestyle India Fashion

Week is just another example

of the company’s commitment

to the industry. FedEx has an

unparalleled global network to

help garments designed and

manufactured in India reach

more than 220 countries and

territories within one to three

business days. With more than

16 customs clearance gateways

in India alone, highest for any ex-

press delivery company, FedEx is

highly equipped to deliver goods

to the apparel industry. More-

over, recently, American Swan, an

online fashion brand said it has

made its products more acces-

sible to customers by tying up

with India Post Delivery Service

to offer a wider reach to over

20,000 PIN codes across India.

“Through more than 50 years

in fashion, DHL has provided

speedy response, excellent

quality and convenient delivery

that the industry demands,

especially in this era of multiple

sales channels and online

retailing. DHL has developed

specific logistics solutions to

meet the demanding needs of

this dynamic sector. Our

unmatched worldwide presence

means we can deliver optimised

supply chains, reduced lead

times and easy access to new

markets. With the fashion

industry witnessing phenom-

enal growth, DHL takes its role

as trade facilitator rather

seriously. Our partnership with

LFW was immensely successful.

On a global level, DHL has been

partnering with fashion events

across the world to provide

logistic support and will

continue to do so,” concluded

Subramanian.

“The shift towards a high-tech supply chain helps apparel companies be more reactive to consumer needs, which ultimately helps them increase revenues."

r S SubrAMAniAnDHL Express India


rePort | FFFaI

With India’s

logistics

sector set for

exponential

growth, led by economic

revival, impetus to transport

infrastructure, foray of

e-commerce and the

impending GST implementation

are expected to bring about a

transformational change in the

country’s fortunes. This shall

also have implications on the

country’s air cargo business.

The three-day Federation of

Freight Forwarders Association

of India (FFFAI) event, taking

place in the city after 14 years,

was inaugurated by Maharash-

tra Chief Minister, Devendra

Fadnavis.

The event by the FFFAI, that

controls 90 percent of India's in-

ternational logistics trade, is con-

sidered to be the most important

event in the industry, with widest

participation from the stakehold-

ers in the export-import (EXIM)

trade. The event also emphasised

on the changing dynamics of the

air cargo business.

Impetus on bilateral tradeWith a focus on ‘Make

in India’ and the impend-

ing implementation of GST,

India is expected to ease its

manufacturing and logistics

woes. As India embarks on

a massive manufacturing

activity and is developing

dedicated freight corridors as

well as giving boost to inland

waterways and coastal ship-

ping, the freight forwarders,

an important stakeholder in

logistics industry, are gearing

up to seize the opportunity.

This shall also have implica-

tions on India’s air cargo

business, being that India is

the largest air cargo market

in the South Asian region, but

very few airlines based out of

the country have dedicated

air freight services.

However, things are chang-

ing; Jet Airways announced

in March that it has plans

to launch freighter services,

becoming the first private

Indian passenger airline to offer

all-cargo services. Other top

international carriers are also

eyeing the lucrative Indian air

cargo business and the imple-

mentation of these initiatives

shall spur the foray of interna-

tional players.

Guruprasad Mohapatra,

Joint Secretary, Ministry of

Commerce highlighted that the

bilateral trade between India

and Commonwealth of Inde-

pendent States (CIS) region has

increased from $8,346 million

in 2010-11 to $11,054.million

in 2014-15. FFFAI on behalf of

Ministry of Commerce conduct-

ed a successful dry-run study

on International North South

Transport Corridor (INSTC). The

activation of the corridor will

help reduce dwell time and

transaction costs by connect-

ing India to Russia within 16-21

days at competitive freight

rates leading to development

of trade in the INSTC.

Amit Kamat, Honorary Secre-

tary, FFFAI Convention asserted,

“FFFAI is working actively to

provide the requisite mindset,

skill, technological roadmap

and develop execution ability

to handle the next growth

curve in economy. This will

help in reduction of transac-

tion cost and provide efficient

movement for manufactured

products within & outside

country.”

Blueprint for change � Technological augmenta-

tion: A mandate for the docu-

mentation and information flow

in international trade including

the use of phone apps for bill

of entry/shipping bill and the

advent of concepts such as a

smart cities, smart ports, smart

borders among other things to

ease international trade.

� Change in trade dynamics: With more merger and acquisi-

tions expected to happen, the

global trading landscape is

expected to change drastically.

� Advancements in manufac-

turing approaches: With India

expected to open up silicon

fabs for manufacturing transis-

tors to the advent of ‘Subtrac-

tive manufacturing’ and better

legislative policies is expected

to ease the hassles for setting

up a business in India. This

would allow it to become a

manufacturing and export hub.

� Better infrastructure: With

investments in infrastructure

and composition of various

modes of transport triggering

change in velocity of trade.

Thus, facilitating a long term

vision for infrastructure and

transport growth.

� Change in level of Govern-

ment facilitation with focus

on Single Window concept

due to international bilateral

and multilateral trade agree-

ments and also increased

compliance of non-tariff barrier

and allied laws.

Ergo, India’s logistics sector

is set for expotential growth,

led by GDP revival

A renewed focusFuelled by government and legislative initiatives and a spurt in infrastructure, India’s air cargo business aims to become all the more lucrative for top international players from the aviation sector.


FoCUs | aMsTeRDaM aIRPoRT schIPhol

Amsterdam Airport Schiphol has been fostering Indian cargo industry to develop its trade with Europe, especially in the pharma sector. One such step taken recently was the MoU signed between Delhi International Airport (DIAL) and Amsterdam Airport Schiphol. Bart Pouwels, Director Business Development Cargo at Amsterdam Airport Schiphol, says Schipol Cargo has been bullish on Indian market and looks for more such opportunities.

JASLeen KAur

Creating strong trade lanes between

India & Europe

To begin with, could you please brief

us on the recently signed Mou with

DIAL to work together on the promo-

tion of cargo business? What prompt-

ed you to sign this pact? What is the

plan of action?

The scope of recently signed Memoran-

dum of Understanding (MoU) with DIAL

includes business promotion, product

development, knowledge sharing, training,

performance benchmarking and regulatory

agency cooperation. The MoU is intended

to enhance Delhi’s and India’s logistic capa-

bilities at a global level.

We signed this agreement because we

believe that partnership with like-minded

airports will enable us to create strong,

efficient trade lanes. Delhi has a particular

appeal to us, as it is one of very few airports

around the world which has demonstrated

its commitment to cargo, by putting in

place a dedicated cargo department, and

setting a strategy for growth.

As you mentioned that this Mou will

help Delhi’s and India’s logistics capa-

bilities to strengthen at a global level,

could you please detail us how will it

help the Indian air cargo industry?

The Indian air cargo industry is young and


enthusiastic, and Schiphol is eager to share the

lessons it has learned as a mature and well-

established major gateway. In particular, we have

made tremendous progress with trade facilitation

through close collaboration with our government

and customs, leading to great strides in the opti-

misation of cargo processing. Without any wish

to sound conceited, we believe we have much to

teach and to share.

One of the learning which Indian airports

can learn from Schiphol airport is handling

of pharma products. Schiphol airport has

been quite active in handling of pharma

products and DIAL is bullish on strength-

ening pharma cargo business. How will this

partnership help in strengthening pharma

logistics?

Pharma traffic demands the very best of airfreight:

speed, security, transparency and the utmost care

in handling. By working with our own communi-

ty, helping them to meet with pharma producers,

and understanding the special needs of this sec-

tor, we have created a hub that is ideal for pharma

traffic. But each airfreight trade lane must function

as a seamless link in the supply chain, in order

to deliver what pharma manufacturers

demand. This is a job of collaboration

between airports at origin and destina-

tion, working together to ensure that

standards are uniform and that inef-

ficiencies are eradicated.

How important is pharma busi-

ness from India into Schiphol?

The Netherlands accounted for

almost 10 percent of all EU phar-

ma trade in 2014, with a total of

29,000 tonnes (import 15,000,

export 14,000), up eight percent

on the previous year. The

Netherlands’ pharma trade with

India in 2014 was 1,250 tonnes

(up 50 percent), with im-

ports totaling to 900 tonnes (+78 percent) and

exports at 350 tonnes (+9 percent). Our country

incidentally showed the second highest growth

in Indian pharma imports in the whole of the

EU in 2014. These figures are point-to-point,

and exclude transshipments via Schiphol. These

may appear small tonnages within our total of

1.6 million tonnes of airfreight, but in commod-

ity value terms, as well as value to the logistics

community, this business is very attractive and

consequently very important to us.

What facilities can Schiphol airport offer to

the air cargo companies flying into Amster-

dam from India?

As an airport, Schiphol is unique in Europe in

having five main runways, and unlimited land for

expansion of related activities such as logistics. In

specific airfreight terms, we already have an im-

pressive array of frequent international air services

that create interline opportunities over Schiphol

to other major markets like the USA and Central/

South America. And, for manufacturers of pharma

products, we have a broad community of logis-

tics service providers and road feeder operators

whose collective resources are impressive, and

which provide easy and efficient connections

across the whole of Europe.

What are your future plans to and from

India to Amsterdam?

Schiphol is not directly involved in any physical

aspect of airfreight, but we take a very active role

in process optimisation to enhance the customer

experience here and marketing to support our

logistics community and carriers in securing the

maximum possible share of available traffic. India

features highly in our plans.

What is the total payload you have from Amster-

dam to India and back?

At present, we have daily KLM A330s to provide

frequency, and Singapore Airlines (with 2-3 x

747Fs per week) as well as Cathay Pacific (with 2

x weekly B747Fs) to provide bulk capacity. We

hope that recently-halted Martinair freighters will

also be replaced by alternatives in the near future.

In general, how does Amsterdam Schiphol

view India as an air cargo market?

We believe India is one of the most exciting

opportunities in the world of airfreight. It is already

showing its potential as a pharma manufacturing

centre, and this alone will continue to grow at its

current impressive rate. We continue to invest

considerable time and effort in exploring mutual

opportunities with our many friends in India. The

more we assist India with our knowledge and

experience, the faster its airfreight market will

grow, to our mutual benefit.

“The scope of recently signed Memorandum of Understanding (MoU) with DIAL includes business promotion, product development, knowledge sharing, training, performance benchmarking and regulatory agency cooperation."

bArt PouwelSAmsterdam Airport Schiphol


FoCUs | caThay PacIFIc

Strategically expanding cargo map in IndiaWith an aim to expand its cargo map in India, Cathay Pacific has strong plans to add capacities, destinations and more services. Anand Yedery, Regional Cargo Manager - South Asia, Middle East & Africa, Cathay Pacific Airways, talks about the airline’s plans to accomplish its vision of becoming the leading air cargo carrier between Asia and the world.

JASLeen KAur

Please give me a sense of Cathay

Pacific Cargo’s operational profile in

India? How many freighters you have

in service to and out of India? What is

the total capacity that you lift?

Cathay Pacific offers freighter services from

six major airports in India with 25 weekly

flights. We operate nine weekly freighter

departures from Delhi, seven from Mumbai,

four from Chennai, two from Bengaluru,

one from Hyderabad and two from Kolkata.

In addition to this, we operate 48 passenger

flights a week from India to Hong Kong,

carrying cargo in the belly of our passenger

aircraft thus making Cathay Pacific in India

one of the largest freighter carriers in the

country.

From India, we uplifted approximately

57,000 tonnes in 2014 and this year in the

first quarter we carried close to 12,800

tonnes.

What’s on the plan list to strengthen

your position in the Indian market?


our passenger flights we cover 200

destinations worldwide, thereby offering

great connectivity from India to the world.

We have recently launched freighters to

Calgary and Phnom Penh and passenger

flights to Zurich and Boston with Dusseldorf

coming online in September 2015. This will

help meet the rising demand to move a

wide range of commodities between India

and the world.

The competitive advantage of Cathay

Pacific Cargo is that we are a one-stop shop

with tailor-made products and services to

help customers’ packages and cargo arrive

faster and more safely. To elaborate, we

have developed a wide range of service

options to meet the growing needs of its

customers. Cathay Pacific Cargo products

include Wine LIFT, Pharma LIFT, Priority

LIFT, DG LIFT, Fresh LIFT, Live Animal LIFT,

Secure LIFT, Courier LIFT and Expert LIFT.

Our new Cathay Pacific Cargo Terminal

at Hong Kong International Airport (HKIA)

enables the most efficient flow of cargo

through the terminal and facilitates speedy

processing of all types of cargo.

We have launched a new cargo mobile

application that offers cargo agents,

forwarders and customers, greater

convenience when tracking shipments,

in addition to a wide range of other

information relevant to the operations

of Cathay Pacific Cargo. This new mobile

app puts up-to-the-minute information

at their fingertips, wherever in the world

they may be.

Our cargo fleet includes the B747-8

freighters with engines that are more fuel-

efficient, a new wing design that enhances

payload and range while reducing noise,

and a weight and balance system that

monitors the centre of gravity of the plane

on a real-time basis.

Many airlines are active in the pharma

sector. What are the latest initiatives

taken or planned by the airline in this

sector?

Cathay Pacific Cargo has a wide range of

products, one of them being our Pharma

LIFT. To better facilitate the shipment

of temperature-sensitive goods and

pharmaceutical products, Cathay Pacific

cargo has signed up with DoKaSch

Temperature Solutions for renting the

latest-technology active containers, the

RKN and RAP Opticooler. This is in addition

to the Environtainer and CSafe containers

that we have which provide state-of-the-

art-climate-control solutions. The Indian

Pharmaceutical industry is one of the

fastest growing industries in India and

the growing export from this segment is

a huge opportunity for air freight. Cathay

Pacific Cargo will continue to tap into the

pharma exports using our strong Pharma

LIFT product.

Apart from pharma, which are the

other sectors you are looking at?

At Cathay Pacific Cargo we have the

expertise to handle all types of cargo.

We are specialists in transporting odd

dimension shipments from limousines to

oil drilling equipment that requires special

handling processes to transporting live

animals which requires an extra level of

care and comfort throughout the journey.

Our wide range of products enables us to

carry any and all types of cargo from India.

Are you worried about competition

from Middle east and european

carriers?

Cathay Pacific is one of the biggest

international cargo operators in India. We

welcome competition as it keeps us on our

toes and helps us strive to do better.

What will Cathay Pacific Cargo look

like, 10 years from now in India? What

are the future plans?

The International Air Transport Association

(IATA) Airline Industry Forecast 2014-2018

shows that by 2018 India will be one of

the top 10 international freighter markets.

Our vision is to be the leading air cargo

carrier between Asia and the World and

to be positioned as the freight forwarder

and shippers’ air cargo carrier of choice

from India.

At last, how do you see air cargo

sector in India in 2015? According to

you, what are the emerging trends?

India’s economic outlook is improving.

Being one of the largest consumer

markets in the world, India's logistics

sector is driven by industries such as

automobile, pharmaceuticals, fast-moving

consumer goods (FMCG) and retail.

Furthermore, the government of India has

laid an emphasis on increasing

manufacturing and exports with the ‘Make

in India’ campaign. This coupled with the

fact that fuel prices are expected to stay

close to current levels is positive news for

the cargo industry.

Any connectivity plans? What is the

competitive advantage Cathay Pacific

Cargo will have?

India is a major route contributor and a

prominent part of our current and future

plans. We will continue to look at adding

frequencies and capacity to our existing

routes as well as look at potential new

destinations in India to start operations

from.

We operate freighters to 46 destinations

around the world and together with

From India, we uplifted approximately 57,000 tonnes in 2014 and this year in the first quarter we carried close to 12,800 tonnes.

AnAnd YederYCathay Pacific Airways


NEWS

ASL bets on India with QuikJet Cargo investment

Ahmedabad airport goes live on Kale's GALAXY

ASL AvIATIOn, the seven airline-strong

group, is betting on air cargo growth in India

by increasing its investment in Quikjet Cargo

Airlines to 72.59 percent. The news, which

follows approval from India’s Foreign Investment

Promotion Board, comes just ahead of QuikJet

launching 737F domestic scheduled cargo

services.

The carrier, in which ASL subsidiary Farnair

invested 50.93 percent in 2012, is thought to be

launching services to Bangalore, Mumbai, Delhi

and Chennai. It was understood that QuickJet

had been waiting for an integrator contract

before launching services, but ASL preferred not

to comment on its customer base yet. The new

investment comes with a $2.25 million price tag,

which will be paid in stages.

GuJArAT STATe exPOrT

COrPOrATIOn LIMITeD

(GSeC) has opted for Kale

Logistics’ Airport Custodian

Management system -

GALAXY for automation of

its activities at Ahmedabad

Airport. With this selection,

GSEC is now poised to move

from its in-house developed

legacy application to a

globally connected web-

based cargo management

system which will help it

better serve its customers

and communicate with all

its external stakeholders.

With web-based

GALAXY solution, GSEC

has completely digitised its custodian/airport

terminal operations and the Customs related

messaging, which has been the key highlight

as they can now send and receive all customs

EDI messages. The system provides extensive

reports and visibility of operations to the

supervisors and management of GSEC. Samir

Mankad, Director, GSEC said, “GALAXY is a state-

of-the-art application that incorporates global

industry standards and Kale Logistics as the

solution provider, holds extensive experience

of working with leading airport custodians and

ground handlers in India and across the world.

Hence, it was an obvious choice for us.” “With

GSEC coming on board GALAXY, we are one step

towards our goal of unifying the global supply

chain. GSEC went live on GALAXY in record

time, despite a very key change to the logic

of transaction calculation from an AWB level

to SB level. This could be accomplished only

because of proactive and synchronised working

of Kale’s GALAXY development team and GSEC

user group,” said Vineet Malhotra, Senior Vice

President-Kale Logistics Solutions.

Vizag airport expects to double cargo

vISAKHAPATnAM AIr-POrT expects to double its air cargo handling during this fiscal on the back of new air cargo terminal. The government has invested more than Rs one crore to convert the old passenger terminal building into a separate cargo complex, which will commence opera-tions this week, said Vinod Kumar Sharma, Director, Visakhapatnam Airport. The airport currently handles 3,000 tonnes (2,000 tonnes outward and 1,000 tonnes inward) cargo per year. The management has awarded the facility to Delex Cargo India Private Limited, which is also expected to bring in more cargo through marketing, he added.

At present, large quanti-ties of pharma and marine products go from this region to Hyderabad Inter-national Airport for export to international destina-tions. These can be directly exported if the airport has good facilities, resulting in exporters saving huge amounts on transport. About 70 pharma units have their operations here and the region is also base for marine products. The airport is also seeing an increase of over 10 percent in passengers year-on-year. Last year, one million pas-sengers used Vizag airport, and this year it is expected to be over 1.1 million. Cur-rently, daily 50 services, including six international, operate from here and a few more would be added over the next one or two months, said Sharma.


NEWS

Saudia Cargo starts freighter ops from Delhi airport

Accolades for Indigo, Emirates

Blue Dart Express buys majority stake in Blue Dart Aviation

BLue DArT exPreSS has become a

majority shareholder in Blue Dart Aviation

after purchasing additional 21 percent

stake. Now, the overall shareholding of

the company in Blue Dart Aviation has

increased to 70 percent. Blue Dart Aviation

has become a subsidiary of Blue Dart

Express - an integrated transportation and

distribution company. Blue Dart Express'

board of directors approved hiking stake

in Blue Dart Aviation from the present 49

percent to 74 percent.

Blue Dart Aviation is one of the leading

players in the domestic air express market,

specialising in time-definite scheduled

freight services for overnight next day

delivery of express and cargo loads.

SAuDI CArGO has commenced freighter

services from New Delhi to Riyadh and

Jeddah. Complementing the existing

freighter services from Mumbai, Saudia Cargo

now offers its customers in the North of India

an ideal bi-weekly 747-400 freighter that

departs Delhi every Thursday and Saturday.

The inaugural freighter carried

commodities such as pharma, garments,

fabrics and other exports bound for

destinations in the Middle East, Africa and

Europe. Keku Gazder, Regional Director

Cargo, Indian Sub-Continent said, “This

Freighter was a Longstanding Demand from

many of our customers who wanted us to

bring to Delhi a sustainable service product

that serves their requirements especially to

destinations within the Middle East, Europe

and Africa in particular.”

Delhi has over the years become a key

market for Saudia Cargo within the Saudia

Network. With Garments and Pharma being

key commodity drivers, this service has been

timed so as to have quick connections from

its duel hubs of Riyadh and Jeddah to serve

the needs of our customers. With the start

of the Delhi freighter service, Saudia Cargo

now operates four-weekly freighters into

India in addition to serving eight passenger

destinations with over 60 wide-body

passenger flights weekly to destinations

worldwide.

KeMPeGOWDA

InTernATIOnAL AIrPOrT,

Bengaluru (KIAB) which has

clocked 15.4 million passengers

in financial year 2014-15

celebrated seven successful

years of airport operation. The

airport which has established

itself as South India’s busiest and

country’s third largest airport

organised its second edition of

Pinnacle Awards 2015 a platform

created to recognise excellence

and collaboration within the

airport community.

Indigo has been awarded

the domestic airline of the year

while Emirates was awarded the

international airline of the year.

Indigo and Emirates have also

won the flyer’s favourite airline in

the domestic and international

category. The award ceremony

was presided over by GV.Sanjay

Reddy, MD of BIAL and attended

by the senior management

of the airport, partners and

concessionaires. Reddy said, “Since

the start of airport operations,

we have offered our passengers

a seamless travel experience

while maintaining the highest

standard of quality and service

excellence. This year, Pinnacle

Awards witnessed over 100

entries for the submission-based

awards a bouquet of stories of

innovation, sustainable practices,

star performers and crossing

boundaries.”

Pinnacle Awards 2015 saw

over 100 submissions and was

judged by a panel of esteemed

national and international industry

professionals that included Patti

Chau, Regional Director, ACI Asia

Pacific; BS Nagesh, Customer

Care Associate, Vice Chairman &

Non-Executive Director, Shoppers

Stop; Rishikesha Krishnan, Director

IIM Indore; and S Raghupathy,

Executive Director, CII-Godrej.


NEWS

Cargo terminal with private participation at Mangaluru airport

Ashwin Bhat to head cargo at SWISS

Air India and Air New Zealand sign codeshare agreement

MAnGALuru InTernATIOnAL AIrPOrT (MIA) has become the

first among 22 airports in the country to operate air cargo terminal

with private participation. Operations of the terminal started on

26 June. At present, domestic air cargo terminals were available in

airports like Coimbatore, Lucknow and Jaipur besides the metro

terminals. These were being managed by the Airports Authority of

India (AAI).

AAI had plans to run these air cargo terminals with private

participation in 22 airports, including Mangaluru, Ahmedabad,

Tiruchirappalli and Visakhapatnam. However, Mangaluru emerged

as the first among these airports in finalising the agency and

obtaining security clearances from Bureau of Civil Aviation Security,

New Delhi. Several valuable goods, perishables, medicines, routine

software parts, valuable, essential machinery parts can be sent

by way of air cargo, from one airport to the other in the country

through the terminal.

ASHWIn BHAT has been named as SWISS’s new Head of Cargo,

effective October 1st. Bhat, who is currently Head of Global Area

Management at SWISS’s Swiss WorldCargo division, succeeds

Oliver Evans, who has decided to step down from the post after

some 13 years. Bhat, who is 46 and an Indian national, joined

Swiss WorldCargo in 2002. After several years serving in various

capacities within pricing, revenue management and controlling,

he was appointed Head of Area Management Asia, Middle East

and Africa in 2010. Responsibility for the Americas was added to

his remit in November 2012. For the last two years he has served as

Swiss WorldCargo’s Head of Global Area Management, in overall

charge of worldwide sales of the SWISS cargo product.

AIr InDIA AnD AIr

neW ZeALAnD have

signed a codeshare

agreement providing

greater access and

choice to travelers

in both directions

between India and

New Zealand.

Air New Zealand

Chief Executive Officer

Christopher Luxon and

Air India Chairman and

Managing Director

Rohit Nandan signed the agreement at the International Air

Transport Association (IATA) Annual General Meeting in Miami.

The deal will enable Air New Zealand to connect to Indian

cities on Air India over multiple gateways and similarly, Air India

will be able to access to New Zealand market on Air New Zealand

services including over the Tasman connecting its current Sydney

and Melbourne services.

Luxon says, “The sheer size of India and its growing middle

class make it an aviation force that will positively impact

international traffic flows. Close to 90,000 people currently travel

between India and New Zealand every year and this number is

growing. This codeshare agreement will provide greater choice

and convenience for those travelling between our two countries in

both directions.”

Codeshare services are expected to go on sale in the coming

months.


Air India opens MRO facility at Hyderabad

THe MInISTer FOr CIvIL AvIATIOn Ashok

Gajapathi Raju Pusapati inaugurated Air India’s

state-of-the-art facility for Maintenance, Repair and

Overhaul (MRO) at Rajiv Gandhi International Airport,

Hyderabad.

The MRO facility has been developed by Air India

Engineering Services Limited (AIESL), a wholly owned

subsidiary of Air India. The facility will exclusively

serve the Air India fleet and will provide full Aircraft

base maintenance service, line maintenance,

engineering and technical support, component and

full material support, aircraft engine services and

technical training services on all major aircraft types.

Speaking on the occasion H R Jagannath, CEO,

AIESL, said that Air India has a great potential in MRO

facility. More support from the Govt of India can bring

about more improvements in the country in terms

of revenue generation and manpower development

and utilisation in the country as we are one of the

biggest MRO in the region.

Rohit Nandan, CMD, Air India, said, “We are

pursuing the ‘Make in India’ initiative of the Prime

Minister of India and this MRO unit is a very strong

platform in that direction. Air India has always been in

the front relief operations to Nepal and development

of the MRO facility is also a very important field

in supporting the development of engineering

infrastructure in the nation. At one point of time it

was difficult to construct the facility that has come up

at Hyderabad as Air India also had financial difficulties

whenever there has been a need by the country like

the recent evacuations from Yemen and but with the

support and motivation from the government and

the Ministry of Civil Aviation, today we are standing

in the state-of-the-art facility and looking ahead to

playing much bigger roles.”

Air India SATS Airport Services (AISATS), India’s

premier airport services company, has been

honoured with the IATA Safety Audit for Ground

Operations (ISAGO) registration to recognise their

commitment towards adhering to safety standards

at Kempegowda International Airport (BLR) and

Trivandrum International Airport (TRV). AISATS

becomes the first ground service provider in

Thiruvananthapuram to be ISAGO registered.

AISATS extends ISAGO registration to Bengaluru & ThiruvananthapuramISAGO reGISTrATIOn recognises

ground service providers who meets

IATA’s industry-proven quality audit

principles and is structured to ensure

a standardised audit with consistent

results across ground handlers. The

ISAGO process ensures safer ground

operations, fewer accidents and

injuries, uniform audit processes, and

effectively improves quality standards

and enhances the

understanding of

high risk areas

within ground

operations. The

key disciplines

considered

by IATA while

certifying AISATS are,

Organisation and

Management (ORM), Load Control

(LOD), Passenger and Baggage

Handling (PAB), Aircraft Handling

and Loading (HDL), Aircraft Ground

Movement (AGM), and Cargo and Mail

Handling (CGM).

Speaking on this occasion Willy

Ko, CEO, AISATS said, “At AISATS,

safety and security is one of our

core values and is paramount in

our daily operations. While we are

always working hard to maintain our

world-class service standards, we also

firmly believe in ensuring that the

yardstick for safety is maintained at

its apex and the ISAGO registration

reiterates our commitment in that

direction. In early 2015, we achieved

this certification for adhering to safety

standards at Hyderabad and Mumbai

and have now accomplished it for our

business units at both Bengaluru and

Thiruvananthapuram.”

WILLy KOAISATS

Express Industry bets big on ‘Make in India’ & e-CommTHe exPreSS DeLIvery ServICeS (EDS) industry in India, pegged at

approximately INR 167,296 million (as of FY 2015), a key ‘trade enabler’ for the

country’s economy, is betting big on the government’s ‘Make in India’ initiative and

the booming e-commerce sector. The industry is expectedly offering employment

opportunity to 1.7 million people in the country. Considering the potential, Express

Industry Council of India (EICI), recently organised a seminar titled “Delivering

Opportunities for ‘Make in India’ and e-Commerce” in New Delhi.

The industry voiced that the next phase of growth is likely to come with the

implementation of Goods and Services Tax (GST) and allowing exports through

the courier channels. E-commerce has become an important platform for micro

and small manufacturers/exporters and the rapid progress made by both

e-Commerce and small and medium enterprises (SMEs) has opened new vistas

for the EDS industry for handling non-document shipments. Minister of State for

Finance Jayant Sinha, key people from revenue and customs department, India

Post, ecommerce players and SME’s participated and attended the seminar along

with leading players from the express industry.

India’s e-commerce sector would grow at a rate of 10-15 percent annually,

higher than the GDP growth rate, in coming years, minister of state for finance

Jayant Sinha said, adding, that the economy will more than double to $4-5 trillion if

it can achieve a sustainable growth rate of 8-9 percent over the next 10-15 years.

NEWS


Delhi leads Asia-Pacific airports in freight traffic growth rate

HOnG KOnG PASSenGer TrAFFIC

exhibited solid growth for the month of April

2015; with Asia-Pacific airports reported +9.3

percent growth and the Middle East recorded

gain of +8.0 percent year over year.

The positive growth in most of Asia-

Pacific airports was contributed in part by

the boost during the Easter holiday period. A

number of the major airports reported close

to 20 percent year-on-year growth: Shanghai

Pudong (PVG) +19.9 percent, Incheon (ICN)

+18.9 percent, Mumbai (BOM) +20.7 percent.

Bangkok Don Muang (DMK) continued to

deliver the highest growth among major Asia-

Pacific airports at +42.2 percent whereas both

Doha (DOH) and Abu Dhabi (AUH) led the

Middle East with +15.5 percent growth.

Air freight in Asia-Pacific experienced

marginal growth of +2.6 percent year over

year for the month. The slowing down in

freight volumes reflected weaker demands

from Europe and slowdown across Asian

export markets. The Middle East sustained

strong growth at +14.5 percent due to

expansion in both capacity and network.

Among major cargo airports in the region,

New Delhi (DEL) led Asia-Pacific with the

highest growth rate at +19 percent whereas

Dubai (aggregate DXB & DWC) led the Middle

East at +19.6 percent for the month.

India’s E-AWB volumes reach record levels

Visakhapatnam Airport’s domestic cargo terminal inaugurated

THe LATeST InTernATIOnAL AIr TrAnSPOrT

ASSOCIATIOn (IATA) figures show that in May electronic air

way bill (e-AWB) penetration reached 27.9 percent worldwide

as 410,720 air way bills were processed electronically. IATA’s

yearend target for e-AWB penetration is 45 percent. The

targets for 2016 and 2017 have been kept at 80 percent and 90

percent respectively.

India is currently ranked at sixth place with its year on year

increase in e-AWB volume from 6585 to 22370.

For the year 2015, IATA has also put the focus on top

50 airports of the world to achieve 55 percent of e-AWB

penetration. Among the two Indian airports in the list Mumbai

and Delhi have achieved 23.7 percent and 40.4 percent

respectively.

In today’s electronic world, air cargo still relies heavily on

paper documentation for the exchange of information. Each

international airfreight shipment can require more than 30

different paper documents. The AWB is the most important

transportation document in air cargo. e-AWB brings accuracy,

confidentiality and efficiency.

Worldwide e-AWB penetration reached its highest ever level

in May, but the current growth rate is not enough to see it hit

the IATA target for 2015 which is 45 percent worldwide.

DeLex CArGO InDIA was awarded the contract for management of

Visakhapatnam Airport’s domestic cargo terminal by Airport Authorities

of India (AAI) The cargo terminal was inaugurated on 11th June in

the presence of Ashok Gajapathy Raju, Minister for Civil Aviation. Also

present at the occasion was the CEO of Delex Srinivas Sattiraju, airport

director of Visakhapatnam Airport, Vinod Sharma and other dignitaries.

Visakhapatnam Airport’s domestic cargo terminal management is first of

the projects to be undertaken by Delex, in line with the company’s plans

to expand in to auxiliary services associated with the domestic air cargo

industry in India. Visakhapatnam Airport assumes a greater importance

in its new role as the only major airport of the newly carved out state of

Andhra Pradesh and the cargo volumes are expected to grow rapidly

along with the overall development that the state is planning to make.

NEWS

EVENTS

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