Vol 1 No 4

South Asias Cargo & Logistics Monthly

Free Circulation

April 2011

DHL Spells Out Renowned Focus on Africa as Trade Grows

Asia Team launches GCELs Trade Lane Deployment

south asias cargo and logistics monthly n april 2011 n ecargolog

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Contents...
DHL Spells Out Renewed Focus on Africa as Trade Grows E-freight erases paper trail Smaller airports clamoring for Boeings new 747-8 aircraft FedEx launches new global cargo route to India Indian logistics group eyes Gulf expansion Asia Team launches GCELs Trade Lane Deployment Kuhne Logistics University to award logistics scholarships Punj Lloyd steps up presence in highway projects Cathay Pacific rollout e-AWB initiative SHIs order break the US$10bn News Views GLS Ireland launches Express services DHL wins 10-year Euro1.4bn UK health scheme deal Indian 3PL market getting boost from FMCG New tenant for Bahrain Logistics Zone Kandla Port Trust to invest Rs 755-cr in 4 dry cargo berths Mundra Port to set up coal terminal at Vizag Port 6 7 8 9 10 12

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Publishers Note

Dear Readers,
Vol 1 No 4 April 2011

A month passed by since the 1st issue and I am immensely happy with the support received from well wishers all over India and overseas too! A bountiful of bouquets and greetings a good tonic for the growing child as nourishment I suppose! All I can say, at the moment, Thank You ! Yes, we are stepping into April with a quite a bit of Logistic services planning a schedule for the next 11 months. And, the next issue essentially covering more port activities both Major and Mini ports and Transportation on the eve of transportevent organized by the Malaysian firm, supported by our Chennai Port Trust on the 5th/6th May 2011 at Park Sheraton, Chennai.

Publisher & Editor V Ravi Consulting Editor Mickee Menon Advertising Kandaswamy Designing NeauVision Creative & Marketing Printing JAI GANESH OFFSET PRINTERS No 19 Venkatasamy Lane Santhome Chennai 600 004 P: 9840111457 / 044 24934535 Published by V Ravi and owned by V Ravi and Published from 2/2 Sixth Street, Gopalapuram, Chennai 600 086 and Printed by V Ravi at Jai Ganesh Offset Printers, 19 Venkatasamy Lane, Santhome, Chennai 600 004. All information in eCargolog is derived from sources, which we consider reliable and a sincere effort is made to report accurate information. It is passed on to our readers without any responsibility on our part. For Editorial, Suggestions & Advertisement Enquires eCargolog, 2/2 Sixth Street, Gopalapuram, Chennai 600 086 [email protected]; [email protected] Mob: +91 9840950196 www.ecargolog.com

Your participation at the Seminar and in the Magazine as well, will be great since it is a good platform to focus your attention of your Prospects. This is not only attended by a huge no. of people but also covered with Live Interviews and recorded videos for your business promotion. We will be covering more on the Auto sector, Chennai being the Hub of Automobiles of South East Asia ! And, more will follow to your entire satisfaction ! Warm Regards V. Ravi Publisher
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AirCargo

DHL Spells Out Renewed Focus on Africa as Trade Grows

Leading logistics giant enhances focus on core sectors as they become key economic drivers
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DHL, the worlds leading logistics company,has announced its renewed focus on Africa aimed at helping to ease the movement of goods within and out of the fast-growing continent and boost trade within regional economies. The company is aiming to help expand trade in core sectors such as oil and energy, industrial projects, life sciences and healthcare, aid and relief and the consumer segment through

and enable businesses discover new opportunities in Africa.

Upcoming Plans to Launch Pan-Africa Road Solution

Mr. Diallo revealed that DHL will soon roll out a new road freight solution in Africa connected by three main hubs in East, West and Southern Africa serving respective regions and helping link inter-regional movement of goods. Dubbed Africa Connect, the

Amadou Diallo, CEO, Africa and South Asia Pacific, DHL Global Forwarding

simplified, reliable and cost-efficient supply chains that will drive growth in the region. Amadou Diallo, CEO, Africa and South Asia Pacific, DHL Global Forwarding, said: DHL has been supporting business in Africa for more than three decades now and were committed to keeping Africa wellconnected to the rest of the world while identifying new opportunities in the intra-African market. To support the regions vast growth potential, we are using our deep knowledge of the markets to help spur growth
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service will be offered from Mombasa and Dar es Salam (East), Spain and Morocco (West) and Johannesburg and Cape Town (South). DHL is banking on rapid crosssector growth chiefly driven by increasing population, rising consumer spending and technologydriven economic transformation. From 2005 to 2008, consumer spending across the continent increased at a compound annual rate of 16 percent, more than twice the GDP growth rate(1), indicating that economic growth is also resulting in wealthier

communities and greater demand on the continent. A significant amount of growth in our business is resulting from Small and Medium Enterprises (SMEs). This group is going to be one of DHLs main focal points as we look at how we can help these companies expand beyond current limits and leverage more opportunities in and out of Africa. We welcome the ongoing infrastructural investment by governments in the East African Community, and especially Kenya, because this will have a significant multiplier effect on regional communities, said Mr. Diallo. Already, DHL serves key markets such as South Africa, Nigeria and Ghana three to five times a week by air, offering capacity in excess of 2000 tons a month. A new road freight solution that balances cost and transit times is just what the market needs next to respond to fast changing demands driven by rapid growth in key sectors. added Mr. Diallo. Africas 50-plus economies are growing at a remarkable pace across the region, with real gross domestic product having increased by an average of 4.9 percent a year between 2000 and 2008. Foreign direct investment increased to US$62 billion in 2008 from US$9 billion in 2000(2). DHLs is also keenly watching the inter-continental growth between Africa and Asia which reached US$100 billion in 2010(3). DHL has largest group of logistics experts dedicated to Africa and its major trading lanes, particularly Asia. With Africa fast revealing a future worth investing in, companies need a partner with first-mover knowledge, expertise and experience. In 2010, DHL Global Forwarding saw significant volume growth in Africa in both its regular operations and charter operations connecting all regions with Africa.

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AirCargo

E-freight erases paper trail

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Since introducing electronic ticketing and self-service kiosks for passengers in airports, the worlds aviation industry says it has saved more than $4 billion in operating costs. At present, the industry is moving towards removing paper hurdles from the cargo side of the industry not only to save billions more but to reduce transit times. Mercator, the airline IT solutions provider of Dubai-based Emirates Group, is working with more than 100 airlines currently using the Mercator IT platform to ease the complex paper trail required for global air freight shipments. Duncan Alexander, vice-president of Mercato noted the industry is slowly moving away from a paper-driven process that can require up to 30 documents to move cargo on a single journey. The new trend means that the paper isnt going with the box anymore and is being transmitted electronically and assessed at each stop in the journey using scanners. All of the forms are electronic, Alexander said, adding that some cargo warehouses are now fully electronic with handheld scanners. One of the biggest challenges toward the full conversion of cargo shipments from paper to an e-freight system is getting all players involved in the supply chain to become involved in recognised international e-freight standards, Alexander said. When the paperless ticket trend happened several years ago, full compliance only happened when you had a natural momentum where big airlines said if you want to do business with us you have to do this. Cargo is much more complicated because it involves not only airlines, but cargo agents and other businesses involved in the supply chain as well as governments and customs agencies the world over. To date, Alexander said some airlines have completely

converted their electronic systems to move cargo so that no or relatively little paper is involved. With time, as more of the world cargo is processed and handled through an increasingly globalised e-freight system where much of the paperwork is automated, airlines will experience a better level of efficiency. More air freight that is moved could bolster global business performance. Air freight is the barometer of the economy of the world. It is an essential part of world trade, thats why it needs this level of investment, said Alexander, who estimated that cargo is 10 to 15 per cent of an airlines revenues. Ushering in an industry-wide e-freight initiative could reduce existing waiting times to move cargo in transit of up to nine hours down to about two hours, he said. Giovanni Bisignani, directorgeneral and CEO of the International Air Transport Association (IATA), said in the organisations 2010 annual report that IATA continues to deliver cost savings and improved processes under the Simplifying the Business (StB) programme which is looking to create $16.8 billion in annual savings for the industry. Major changes to reduce paperwork in the shipment of cargo under IATAs e-freight plan are on target, he said. The e-freight initiative is one of five components of IATAs StB programme that is working to streamline operations including barcoded boarding passes, a baggage improvement programme, the Fast Travel programme through automated passenger assistance as well as e-services. According to IATAs annual report, its e-freight initiative will replace paper documents with electronic messages. This makes for faster, more reliable air freight. Potential annual savings: $4.9 billion.

The status of the IATA e-freight initiative showed that 50 airports and 25 countries and territories are now working to reduce cargo paperwork and have so far covered 16 paper documents used in freight shipment by air. Each air cargo shipment can require more than 30 different paper documents increasing the cost of air freight and lengthening transport times, IATA said in its 2010 report. IATA e-freight is an industry-wide initiative involving airlines, freight forwarders, ground handlers, shippers, customs, brokers and customs authorities. The report stated that by the end of 2010, 44 locations and 76 major airports, representing 80 per cent of international air cargo volumes will be e-freight live. And internationally standardised electronic messages will have replaced the 20 paper documents for which there are agreed international standards. Bisignani said: We must continue to take advantage of technology to reinvent our way of doing business with increasing efficiency and convenience. Much of the efficiency headway being made today in cargo hangars at airports around the world is thanks to major strides made in 2009 when IATA helped define through its Cargo Committee and Cargo Service Conference standard resolutions, recommended practices, and electronic messages required as a foundation for IATA freight. Other major strides include the creation of a new electronic Air Waybill (e-AWB) which has become the industry e-freight standard. The new waybill was developed by IATA and the International Federation of Freight Forwarders Associations (FIATA). In February, Dubai International Airport recorded 24,646 aircraft movements, a 7.2 per cent increase from 22,982 movements during the same period last year. Freight traffic at Dubai International Airport registered 156,259 tonnes, down from 171,707 tonnes for the same period the year before. nn
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AirCargo New norms Smaller airports clamoring for Boeings new 747-8 aircraft to curb cargo
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Air cargo is a hot market right now, and everyone wants in on it. Even the airports, which are scrambling to bring Boeings (BA) newest jumbo 747 into their gates. The 747-8 is the largest commercial aircraft Boeing has ever made. Its wingspan is 11 feet wider and body 18 feet longer than the 747400, the Associated Press reports. The enormous plane is the same size category as the giant Airbus 380, which is exclusively for passengers. Boeings plane, however, is a cargo aircraft.

Boeings plane, however, is a cargo aircraft. Boeing will deliver the first 7478s to customers later this year, and airports are clamoring to receive them. Even smaller airports in Toledo, Ohio, and Huntsville, Ala., are trying to get permission from the Federal Aviation Administration to accept the planes.: Airports normally arent allowed to accept planes this big, the AP reports. The FAA is making the ones that want the 747-8 jump through all kinds of hoops in order to handle it. For example, the AP reports, the airport

menace

The Union Government is on the move for Effective implementation of Carriage By Road Rules. Once the rules come into effect, all transactions have to be recorded and no booking can be done without declaring the items sent. According to the notified rule, while booking any consignment, the consignee has to give details in the goods forwarding note. Its mandatory to disclose the number of packages, details of the items like whether these are hazardous or non-hazardous besides the value of the consignment.

Boeing will deliver the first 7478s to customers later this year, and airports are clamoring to receive them. Smaller airports are making all kinds of concessions to get permission to receive the new 747-8. The 747-8 is the largest commercial aircraft Boeing has ever made. Its wingspan is 11 feet wider and body 18 feet longer than the 747400, the Associated Press reports. The enormous plane is the same size category as the giant Airbus 380, which is exclusively for passengers.
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in Rockfort, Ill. agreed to inspect its runways for broken pavement or debris every time a 747-8 lands or departs. Some airports cant resist the business opportunity. When it comes to smaller airports, we think this kind of gives us a leg up, an airport executive in Toledo told the AP. The air cargo business is growing at a 10% annual rate to 22.9 million tonnes, according to the AP. Passenger service cant even compete, with only a 2% growth rate. nn

of IRTFT, an advocacy group on transport related issues. As per norms, the agent has to take an undertaking from the consignee before booking his item. The consignee has to give details of purchase and insurance of items while booking his goods. In case he conceals information, then the consignee will be held responsible, Singh added. nn

The consignee has to mention his address and its for the transport agent to check that the information is correct. Beyond this, transport agents have to keep accurate records, which have to be periodically scrutinized by the state transport department, said S P Singh

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AirCargo

FedEx launches new global cargo route to India

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FedEx Express, leading global cargo service provider, has launched a new intercontinental flight route with a newly acquired Boeing 777F aircraft to provide better international connection to Indian cargo business. The company will be operating 5 flights per week on the US-DubaiDelhi-Paris-US routes. Deployment of the new Boeing 777F is aimed at meeting this demand, as it would offer improved revenue

witnessing a double-digit growth, for which there is a demand for increased cargo space, FedEx Express India Vice-President (Operations) Kenneth F Koval said. The aircraft would offer improved payload capacity thus addressing the growing need for additional space as well as offering unparalleled connectivity to our customers in India, Mr. Koval said. This would also provide better opportunities for US businesses to

The company has acquired 12 Boeing 777F and by the end of 2019 fiscal, the number would increase to 44. This would help FedEx reduce fuel emissions by 20 per cent by the year 2020, Mr. Koval said. Earlier this year, the company had launched five weekly direct flights between India and China to strengthen the flourishing trade lane between India and Asia. The company, which has over 4,000 employees, has registered 30 per

payload capacity of 81 metric tonnes over the 71 metric tonnes offered by MD 11s, the primary long haul aircraft in the companys fleet. We are getting heavy cargo demands from northern India in businesses like automobile, fashion, gems and jewellery, hi-tech goods. The businesses in this market are

connect directly with Middle East and India, he added. The worlds largest twin-engine cargo plane offers operational efficiencies as well as greater fuel efficiency and lower carbon emissions as it consumes 18 per cent less fuel than MD 11s. Also, it is capable of flying 5,800 nautical miles.

cent growth on international cargo business. FedEx Express last year launched one of its high yielding trade lanes between Europe and Hong Kong. In a bid to get hold of Indian market, FedEx focused on inorganic growth by acquiring PAFEX few years back and now AFL and UFL cargo businesses. nn
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Logistics

Indian logistics group eyes Gulf expansion

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Tata Co. to modernise Indian Air force bases?

The Ministry of Defence has signed a Rs 1,094-crore contract with Tata Powers Strategic Electronics Division (Tata Power SED) for modernising 30 Indian Air Force (IAF) airbases across the country. According to unofficial reports, Tata Power SED has 42 months to execute this strategically vital contract, officially called Modernization of Airfield Infrastructure (MAFI). Starting with the Bathinda airbase in Punjab, Tata Power SED will refurbish and modernise airfield infrastructure so that the IAF can operate its next generation of modern combat aircraft from there. State-of-the-art Air Traffic Management systems will be installed, along with Category-2 airfield lighting systems and hi-tech navigational aids that will permit flying operations at night and in adverse weather. The 30 IAF airbases that will be modernised under MAFI include eight key airfields along the Sino-Indian border such as Chabua, Tezpur and Hashimara. The IAF has already begun deploying frontline Sukhoi30MKI fighters to the Tezpur air base in concert with the armys raising of two new divisions to strengthen defences along the Sino-Indian border. This will be followed by the MAFI Phase II contract for refurbishing another 28 airbases. Indias private sector defence companies view this as a major milestone in their protracted struggle to enter the defence sector on equal terms with defence public sector undertakings and foreign companies. On January 13, the ministry released the firstever Defence Production Policy that explicitly encourages the private sector to enter defence production. The Defence Procurement Policy stipulates two-three years to finalise a contract. nn

ecargolog bureau

Allcargo Global Logistics, a leading multinational company based in India, has announced plans to expand its specialised logistics services in the Gulf region. Allcargo, which is listed on the Bombay Stock Exchange and The National Stock Exchange of India, has named UAE-based Najd Investments

companies that can capitalize on this growth. Allcargo said Najd will advise the company on all financial, strategic and investment matters for the project. Shashi Kiran Shetty, chairman and managing director of Allcargo said, We have been active in the GCC for a significant time now and believe further strategic focus is important

as the advisor and arranger for the companys Gulf expansion. Najd is a privately owned investment firm registered in the Dubai International Financial Centre (DIFC), and is regulated by the Dubai Financial Services Authority (DFSA). Prince Abdulmohsin Bin Abdullah, chairman of Najd Investments said: We are very pleased to have been chosen by Allcargo as their advisors and arrangers for this project. There is a gap in the regional market with a clear demand for their services. The region is witnessing tremendous growth and we at Najd Investments are focused, through our offerings, on creating market leading
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for our global expansion strategy. Regions with high growth and positive investment environments continue to be a target for our expansion. When compared with more mature markets, the region has significant opportunities to increase our offerings in the general Logistics field in the areas of LCL, CFS/ICDs, warehousing, project logistics and specialized equipment rentals on par with global standards, he added. One of Indias largest publicly-owned logistics company, Allcargo offers specialized logistics services across multimodal transport operations, container freight station operations and project engineering & equipment solutions. nn

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Logistics

Asia Team launches GCELs Trade Lane Deployment

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YB Dato Mukhriz Tun Mahathir, Malaysias Deputy Minister for International Trade and Industry, Mr. K V Mahidhar, Logistics Institute Head of the Confederation of Indian Industry (CII) and Mr. Yugi Prayanto, Vice-Chairman of the Indonesian National Chamber of Commerce and Industry (KADIN) witnessed the official ceremony for the deployment of the HumaWealth Asia Benchmark Trade Lane (BTL), the first of four innovative Soft-Infrastructure deployments across the globe. Kuala Lumpur, Malaysia, March 31, 2011 -- YB Dato Mukhriz Tun Mahathir, Malaysias Deputy Minister for International Trade and Industry, Mr. K V Mahidhar, Logistics Institute Head of the Confederation of Indian Industry (CII) and Mr. Yugi Prayanto, Vice-Chairman of the Indonesian National Chamber of Commerce and Industry (KADIN) witnessed the official ceremony for the deployment of the HumaWealth Asia Benchmark Trade Lane (BTL), the first of four innovative Soft-Infrastructure deployments across the globe. GCEL previously executed a Memorandum of Understanding (MOU) with CII, witnessed by Indias Ministry of Shipping, as well as KADIN for their respective leadership in the Asia BTL. The HumaWealth Programs SoftInfrastructure will deliver a new era of 21st century trade efficiency, free of cost to every business throughout the whole world. The Soft-Infrastructure will provide the tools and the road map to reduce Asias annual trade costs by USD 194 billion, increase Asian trade by USD 288 billion a year and creating up to 22.1 million manufacturing and service jobs across the region. The launch of the BTL activities included the signing of an MOU between Malaysias Multimedia Development Corporation (MDeC)
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and the Global Coalition for Efficient Logistics (GCEL) led by YBhg. Datuk Badlisham Ghazali, MDeCs Chief Executive Officer, and Captain Samuel Salloum, GCELs Co-Chairman. This momentous signing signifies MDeCs and GCELs commitment to enhance the development of Malaysias e-Commerce landscape by connecting Malaysias businesses to global markets through the use of digital Soft-Infrastructure. This signing ceremony was attended by highranking officials from Malaysian, India and Indonesia as well as business leaders and industry associations who recognize the value of digital SoftInfrastructure to make businesses more competitive and sustain economic growth in the 21st century. Captain Salloum noted: SoftInfrastructure goes hand-in-hand with our physical infrastructure towards achieving sustainable global economic growth. It will maximize present physical logistics infrastructure capacity utilization as well as reduce trade costs by 30% and operating costs by 15% thereby generating increased trade volume commitments to attract billions of dollars of infrastructure and foreign direct investment. The reduction of trade and operation costs will also lead to greater business financing, increased exports and support the creation of millions of new jobs. YBhg. Datuk Badlisham Ghazali stated: Our collaboration with GCEL will further enhance MSC Malaysias position as an attractive and competitive player in the international market. This knowledge transfer platform will give us best-in-class techniques that have keener focus on operational cost savings. With this in place, Malaysia is poised to save USD 8.9 billion in annual trade costs. The Asia BTL will include all parties involved in the shipment

Soft-Infrastructure goes hand-in-hand with our physical infrastructure towards achieving sustainable global economic growth. It will maximize present physical logistics infrastructure capacity utilization as well as reduce trade costs by 30% and operating costs by 15% thereby generating increased trade volume commitments to attract billions of dollars of infrastructure and foreign direct investment. The reduction of trade and operation costs will also lead to greater business financing, increased exports and support the creation of millions of new jobs.

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Logistics
process: sellers, buyers, carriers, logistics service providers, ports, customs, banks, insurers, etc. These parties will utilize digital SoftInfrastructure to improve the efficiency of their daily business operations. The Asia BTL activities will commence with a rigorous and thorough Shipment Efficiency Assessment (SEA) that will measure trade efficiency and security before and after deployment of the digital Soft-Infrastructure. The SEA will document the current shipment efficiency in India, Indonesia and Malaysia through a comprehensive survey engaging 17 types of trade partner sectors within the shipment supply chain pipeline. Upon utilization of the Soft-Infrastructure within their operations, the trade lane participants and their trusted finance, insurance and technology partners will provide first hand testimony at regional showcase forums of the benefits realized by the use of this innovative digital trade platform. The MOU between GCEL and MDeC follows the successful completion of GCELs Awareness Campaign throughout Asia. As part of its commitment to equal opportunity, GCEL is now embarking on a similar campaign in the Middle East and Africa (MEA), Europe and the Americas. To this end, GCEL recently signed an MOU with the League of Arab States in Cairo as a strategic partner in the HumaWealth Program in MEA, and is finalizing an MOU with the Organization of American States (OAS) for a similar strategic partnership across the Americas. In all, the GCELs HumaWealth Program will assist in re-energizing the global economy leading to global trade cost savings of nearly USD 700 billion annually. It will combine the expertise of developed countries with the youthful labor forces of developing countries thereby creating major global market expansion. ICT initiative. MDeC is focused on ensuring the success of MSC Malaysia and the companies operating in it. Incorporated under the Companies Act of Malaysia, and owned and funded by the Government, MDeCs role is to advise the Malaysian Government on legislation and policies, develop MSC Malaysia-specific programs and practices, and set breakthrough standards for Malaysias ICT industry growth. MDeC is dedicated to ensuring MSC Malaysia is the worlds best environment to harness the full potential of ICT. MDeC is a champion, facilitator and partner. MDeC champions the merits of MSC Malaysia, facilitates the entry of companies into MSC Malaysia and partners with the Government as well as the private sector in realizing a bold national vision.

Warburg Pincus invests $100 m in Chennai logistics firm

Warburg Pincus India is investing $100 million in Chennai-based logistics firm Continental Warehousing Corporation (Nhava Seva) Ltd, a flagship company of the NDR Group. Certain existing investors such as Aureos India Fund and ePlanet Ventures, who entered the company in 2009, are set to part exit in the transaction.The NDR group will utilise this investment to fund its expansion plans and build its position as an endto-end logistics solutions provider, said a group release. Since its inception in 1954, NDR has evolved into a diversified logistics company, with activities spanning container freight stations, inland container depots, port operations, warehousing, third party logistics, transportation and express cargo. The company would merge all the operations into one company, with Continental Warehousing being the capstone company, sources said. NDR handles container and bulk cargo, and provides contract logistics services to a blue chip customer base across 50 locations, comprising over 10 million sq. ft. of storage space in India. Continental Warehousing had raised $16 million from Aureos India Fund and ePlanet Ventures in 2009. Both firms would be part exiting the company in the deal. This is our fourth big investment in the last one year. With the infrastructure bottlenecks, logistics is one sector which is set for rapid growth in India, Vishal Mahadevia, Managing Director, Warburg Pincus India Private Limited, said. The three other investments include $85 million in Metropolis Healthcare, $65 million in Quest Global and $50 million in IMC. Spark Capital acted as the financial advisor to Warburg Pincus for this transaction. nn
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About GCEL

About MDeC

Multimedia Development Corporation Sdn Bhd, or MDeC, is the custodian and implementer of MSC Malaysia, the countrys national

The Global Coalition for Efficient Logistics (GCEL) is a nonprofit public/private partnership based in Switzerland that brings together governments and the private sector to deliver a tangible program achieving sustainable global economic growth. GCELs members and supporters include governments and NGOs from the Americas, Asia, Europe and Middle East/Africa and also private sector members including finance, technology and insurance firms with a workforce of 2.7 million operating in 130 countries and serving 60% of the worlds GDP. GCELs HumaWealth Program consists of Soft-Infrastructure with three key elements: an open-source information technology platform, a global deployment network of the worlds leading finance, insurance and technology firms, and a rapid global deployment program over 18 months including 4 regional benchmark trade lanes, providing the tools free of cost to the end users. Overall the HumaWealth Program will reduce trade costs by 30% and operating costs by 15% thereby promoting trade growth and sustained economic development. nn

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Logistics Kuhne Logistics University to award logistics scholarships

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Punj Lloyd steps up presence in highway projects

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Anyone who wishes to undertake a formal route into a management position in freight forwarding or logistics should be interested in the latest announcement made by the Khne Logistics University (KLU), a university of logistics and management in the HafenCity docklands area of Hamburg, which this year is awarding scholarships for its two international masters study programs, the MSc in Global Logistics and the MSc in Management, for students starting in the winter semester of 2011. Applicants can be students with a bachelors degree who are aiming for a career in management or logistics. Scholarship applications must be received by May 13 or June 30, 2011. Documents can be downloaded HERE or for further details about the scholarships, please e-mail [email protected]. Plans to study for a masters degree frequently fail because students cannot afford costly tuition fees. They often forget that there are a number of ways to secure financial support. From the winter semester of 2011, the KLU Wissenschaftliche Hochschule fr Logistik und Unternehmensfhrung is offering financial assistance to students with bachelors degrees who would like to study for its masters programs in Global Logistics or Management. Applicants who have personality, commitment, bite, and passion stand a chance of securing a scholarship. Their GMAT score must also be at least 600 points. The financial burden was an issue for me, KLU scholarship holder Sebastian Sass admits. The scholarship made it much easier for me to finance my studies. I never imagined that I might be a contender because I was not a classical applicant with firstclass grades, and I was surprised to be shortlisted via my other qualifications. In my view it is important that the KLU supports its students in this way. In addition to scholarships the KLU offers a further method of funding via the reverse contract between the generations which in its own way is similar to the UKs student loan scheme in that it enables students to defer payment of tuition fees, subject to earnings, until after they have graduated and found a job thereby helping to finance the next generation of graduates. The KLU offers a comprehensive grounding for any student of logistics and there is a punchy little video they have put together which nicely sums up the world of freight and logistics in around 90 seconds and there are other films available on their own site. nn
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ecargolog bureau

Punj Lloyd expects to grow revenue at its infrastructure and buildings division by 30 to 40 percent this year as it steps up its presence in highways. The company plans to secure one highway project worth 15 to 20 billion rupees ($454 million) in the current financial year that began in April, and is also looking to bid for three World Bank-funded highway projects worth $75 million-100 million each in east Africa. The company is also looking at bidding for highway projects in Kenya.The company will look to bid for three projects worth $400 million each on a rail freight corridor in eastern India, and is also looking to tie up with a Japanese partner to bid for contracts on a similar freight route in western India, he added. S.S. Raju, president and chief executive of the companys buildings and infrastructure division, India, said, Highways is going to be our core business of growth. India plans to spend about $1.5 trillion in the ten years from 2007 to 2017 to overhaul its creaking infrastructure, including a large expansion of its road and highway network and greater private sector participation in new railway projects. Bureaucratic hurdles, funding difficulties and land acquisition hassles have caused India to miss construction targets for its roads, railways and power plants in the past -- acting as a brake on faster economic expansion. Investor confidence has improved over the last few years in Indias public-private-partnership model for infrastructure projects, as issues such as land acquisition and the way government contracts were awarded improved, Raju said. The governments move to design a so-called Model Concession Agreement for road project bids has plugged loop-holes in contracts, provided more clarity to investors and helped share the business risks of a highway project, Raju said. It is much matured now compared to the earlier days, Raju said. International companies are coming and participating. That indicates that there is a clarity and a transparency in the PPP Model Concession Agreement, which gives confidence for the parties to participate and take the risk of investment. nn

ecargolog bureau

Mercator, the airline IT solutions provider of the Emirates Group, is a leading supplier of IT solutions to the global air travel industry. The company also meets and satisfies the full range of the demanding IT needs of the main constituent parts of the Emirates Group - the award winning Emirates Airline, and Dnata, the largest air travel services organisation in the Middle East. Says Sandeep Fernandes, Marketing Manager, Through Mercators vast experience in serving the IT requirements of these major organisations, it has developed an extensive portfolio of products encompassing airline financial solutions, air cargo and logistics solutions, passenger and airport solutions, airline process outsourcing and airline business consultancy. The philosophy behind the development of Mercator solutions ensures that each adds significant value by reducing costs, improving processes and increasing productivity. Excerpts of the Interview:

demonstrate the following capabilities:

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Efficiency and productivity benefits to monitor and significantly reduce the cost of the customers business operations, Flexibility to wrap around the customers business processes and business models (as opposed to a straight jacket scenario) and can be adapted to meet the emerging requirements of the market, Functional and technological scalability to serve as the main backbone that supports the customers plans in a growing industry in a cost effective manner Provides a set of tools that allow the customer to differentiate through superior customer service in an increasingly undifferentiated marketplace

We believe it is required to meet, not just a subset,but each of the above requirements in order to support the outlook of the air freight industry in the future.

What, according to you is the IT needs of the airfreight industry?

Are you working on any new project?

Increasingly, a common view of IT for a number of leading carriers, involves recognizing its role as a key enabler of business strategy. This view requires to first carve out the broad business strategies adopted by airfreight businesses before exacting their IT needs. In Airlines International, trade journal issued by IATA (dated June 2009), IATAs Director General, Giovanni Bisignani, recommends the strategy for the airfreight businesses. He urges airfreight operators to develop a dual focus of cost containment and flexibility to change while continually adapting to market conditions as key success factors. He believes that such a focus will not only allow air cargo carriers to survive the current recessionary climate, but thrive in a growing industry in the future. Therefore, to meet these requirements, IT providers are called to offer a platform which can

Yes, there are a number of initiatives that we have successfully delivered and released to the industry recently in the past 12 months. Each of these fully mapped to the IT requirements that have been outlined in the response to your previous question. The following are the key initiatives: A cargo ground handling and warehouse management system for ground handlers and selfhandling airlines A comprehensive system for airlines for the management of air cargo claims Multi-airline capability to host multiple airlines within the same group (to cater to the market need of increased consolidation) allowing encompassing airlines to share critical information, bringing substantial benefits in terms of organisational synergies and cost advantages. A comprehensive contribution management solution for airlines to manage profitability right down
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Cathay Pacific rollout e-AWB initiative

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Cathay Pacific Airways has implemented the rollout of 100% electronic air waybills (e-AWB) in Hong Kong an important step in the move towards creating a paperless environment in the airfreight industry. Cathay Pacific became the first airline operating out of Hong Kong to fully switch to e-AWB, eliminating the need for all paper documents when issuing air waybills the shipping documents used for the transportation of airfreight. The Cathay Pacific Cargo team worked hard with agents and freight forwarders to ensure readiness for the introduction of the electronic process. The e-AWB initiative covers all online destinations from Hong

Kong to which Cathay Pacific and sister airline Dragonair fly. The airline plans to implement 100% e-AWB from all its overseas stations by the end of 2012. The benefits of e-freight included shortening the shipping cycle, reduced costs, faster customs clearance, the elimination of problems resulting from loss or misplaced documents, and reduced paper usage. The International Air Transport Association (IATA) selected nine countries/territories and airlines in which to run the e-AWB pilot programme, including Hong Kong and Cathay Pacific. Electronic freight is one of the initiatives under IATAs Simplifying the Business programme, which aims to change the way the air

transport industry operates and result in better service for cargo operators and lower costs for the industry. IATA targets to have 100% e-AWB globally by the end of 2014. Cathay Pacific Director Cargo Nick Rhodes said: We are proud to see the implementation of this important milestone for air cargo in the electronic era. The e-AWB programme will simplify the current process and bring improved operational efficiency and accuracy for the airfreight industry in Hong Kong, helping it to play a leading role in the industry worldwide. The programme could not have been implemented without the great support of agents and forwarders in Hong Kong. nn

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Logistics

SHIs order break the US$10bn

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Samsung Heavy Industries (SHI) has concluded a contract with Hanjin Shipping to build five 10,000 TEU container ships. The order allowed the shipbuilder to receive an accumulated amount of US$10 billion worth of orders so far this year. In addition, SHI is the first shipbuilder in the industry to reach US$10 billion in the orders received this year. It also marks the highest amount since the Korean shipbuilder was established. SHI has so far received 66 orders worth a total of US$10.1 billion. Last year, it had received a total of US$7.7 billion of orders. SHI also has backlog orders of US$20 billion, which is equivalent to more than three years of construction work. SHI had targeted US$7.7 billion of orders for this year, due to projection by various marine institutions at the end of 2005 that ship orders will decline in 2006 worldwide. But it has broken that record on the back of steady efforts to improve ship quality, and to develop highly economical ships. SHI has received orders for 10 LNG ships, 11 ultra large container ships, four drill ships, FPSO and sea platforms. It has made new records in the global shipbuilding industry: the unit order price per ship was US$160 million, and high value added ships accounted for 80% of total ships ordered. The quality of ships has also been enhanced significantly. The background of SHIs surpassing of US$10 billion order is its efforts to enlarge ships, pursue high value added quality, and increase receiving orders for sea facilities. In detail, it received orders for 266,000 LNG ships and 10,000 TEU container ships, thus maximizing transportation capability. It also got orders to build US$580 million, the highest price ever. SHI received orders to build sea platforms worth US$34 billion, double the US$1.5 billion

recorded in 2005. Since 2006, SHI has received 75% of the total number of drill ship orders. In the LNG sector, which is a high value added sector, SHI has backlog orders of 39 ships, the biggest number in the global shipbuilding industry. SHI upward adjusted its target order amount to US$ 12 billion, as it is currently in the middle of negotiating with many ship owners to build LNG ships and promote other oceanic projects. SHI is enjoying robust profits. According to its first half earnings performance announced in mid August, sales revenue in the first half jumped 14.2% from a year ago to KRW3.63 trillion, while the company saw an operating profit of KRW45.3 billion in the first half, compared to a loss of KRW32.8 million in the first half.

Hyundai Securities projects SHIs operating profit to reach KRW160.2 billion in the first half, up 253% from the first half. Its forecast for next years sales and operating profit of SHI is 6.87 trillion and KRW668 billion, respectively, projecting a 225% surge in overall profits. Korea Investment & Securities projects that SHI will continue to see robust earnings performances, on ground that SHI received the largest amount of orders in the first half among global shipbuilders. Another reason for its strong forecast for SHI is the expected boom in the LNG ship and sea plant markets. CEO of SHI, Kim Jing Wan said, Now that SHI has backlog orders of three years, we will focus on improving quality in order to secure loyal clients and strengthen its position as the worlds top shipbuilder. nn
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NewsViews
Cargo airlines help sought
CARGO airlines are a vital part of Afghanistans recovery, said Peter Donlevy, chief executive officer of East Horizon Airlines. Speaking at the Afghanistan Air Cargo and Logistics Conference in Dubai, Donlevy said that the withdrawal of the coalitions military forces would herald a great deal of redevelopment and reconstruction. The key to the organic growth of Afghanistan is to build commerce and cargo flights are a major way of doing this. There will be a sustained demand for cargo to move around Afghanistan as the military withdrawal takes effect. As the stability of Afghanistan continues to improve, more and more commercial opportunities will open up within the country. Having access to reliable, efficient cargo carriers is crucial to rebuilding this trade, he said. We have the ability to load and unload cargo in most locations, with our aircraft enabling us to get into unimproved areas that are inaccessible to other aircraft such as Boeing and Airbus, he added. This will make it possible to get equipment, goods and humanitarian supplies to their ultimate destinations across Afghanistan more quickly, safely and reliably than ever before. in the NMP catchments who were transporting their wares from Tuticorin and Chennai ports to divert the entire traffic to NMP. Some companies have been exporting their produce from other ports for the last three generations, Tamilvanan explained. Welcoming the Supreme Courts directive on the clearance of mining export from Karnataka ports, he said This will help improve our business performance for the next fiscal year. We handled 52.07 lakh tonnes of iron ore in the last fiscal, but after the ban we could handle only 9.38 lakh tonnes for the entire year of 2010-11. This has brought down ore export by 81.97%. The NMP achieved the highest labour productivity among all major ports at 1229 tonnes per person in 201011 and was awarded ISO 14001:2004, the second port to get the certification after Vizag. The government has directed to install a container scanning facility in all container handling ports in the country. This was to ward off any security threat to the container carriers. One such facility was in the process of being set up in NMP after the western coast turned security-sensitive, said Tamilvanan.

NMP portfolio includes general cargo

Eighty one percent loss of iron ore traffic has made Karnatakas only major port New Mangalore Port (NMP) to vigorously market itself in the hinterland and has added few general cargo items to its repertoire. According to Tamilvanan, chairman of the NMP Trust So what if the business in core sector goes bad? There are other areas that could fetch us business. We could divert 1.28 lakh tonnes of coffee, auto parts, and other general cargo that were going from other ports from the eastern coast to New Mangalore Port. As a result, we could handle container traffic that has risen from 31,456 TEUs in 200910 to 40,158 TEUs in 2010 -2011, showing 27.66 % higher traffic, The port also equipped itself to handle project cargo right from huge ship-building projects to refineries, special economic zone (SEZ) projects, railway, transport, and resort machinery. The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) had helped us hold business conferences in Madikeri, Shimoga, Bangalore, Mysore, and Hassan during the last three years, which has paid handsome dividends in the movement of value-added products from the hinterland. The general cargo, such as finished textiles products from the Hassan SEZ, has started pouring into the New Mangalore port, he said. We were able to persuade cashew and coffee exporters
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HACTIL gains in air cargo movement

Air Cargo Terminals Limited (Hactl) handled 254,819 tonnes of cargo in March, a 4.4 per cent increase from last year, and 649,722 tonnes for the first quarter, up two per cent. This year, Hong Kong Airport ranked first in global cargo handled, breaking Memphis Airports 18-year-long run. Its fortunes will now prove to be a more accurate indicator of global trends than Memphis as the latters success is heavily reliant on FedExs fortunes. Export volume in March was 137,037 tonnes, up 4.3 per cent compared with last year. Cumulative export tonnage for the first quarter was 335,099 tonnes, representing a drop of one per cent year-on-year. Export to Japan in March registered a year-on-year drop of 18.3 per cent. In the first quarter, export to China showed a year-on-year growth of 7.9 per cent and export to Europe recorded a year-on-year decline of six per cent. A total of 64,227 tonnes of import cargo were handled in March, revealing a year-on-year growth of 0.8 per cent. Cumulative import tonnage for the first quarter was 175,588 tonnes, up 0.6 per cent against the same period last year. Import from Japan in March showed a significant year-on-year decrease of 22.6 per cent. In the first quarter, import from US and Europe increased by 13 per cent and 16 per cent. Transshipment volume for March recorded a growth of 9.3 per cent year-on-year to 53,555 tonnes. Total transshipment volume for the first quarter was 139,035 tonnes, up 12.4 per cent year-on-year.

NewsViews
ProLogis 6.61lakh facility near Tokyo Intl. airport
ProLogis, a leading global provider of distribution facilities and services, is developing a new, 661,000-square-foot (61,400-square-meter) industrial facility adjacent to Tokyos Narita International Airport. The seven-story, multitenant facility, to be called ProLogis Parc Narita III, will be ProLogis third distribution center in the strategically important Narita submarket. It will be built on a recently acquired, 12-acre parcel less than 1 kilometer from the airports cargo entrance. We are extremely pleased to have successfully acquired this site, which we believe is clearly the best site for the development of distribution space in the airport area, said Mike Yamada, co-president of Japan operations for ProLogis. Narita is one of the worlds largest cargo airports, with air freight volume exceeding 2.3 million tons per annum. ProLogis has successfully built the largest industrial platform serving the airport over the past three years, and this new facility will significantly extend that leadership position. ProLogis other two facilities in the area -- ProLogis Parc Narita I and ProLogis Parc Narita II -- total approximately 690,000 square feet (64,100 square meters) combined. As previously announced, both facilities are now fully leased following a recent transaction with Kuehne & Nagle, a leading European logistics service provider. Construction of the new facility is scheduled for completion in the second half of 2007, with a total expected investment of approximately US$100 million. ProLogis operating portfolio in Japan comprises 12.3 million square feet (1.14 million square meters) of industrial space, which is currently more than 97 percent leased. The company has another 9.7 million square feet under development. Major customers in Japan include Nippon Express, Askul, Hitachi Transport System Ltd., Sanyo Electric Logistics, Shinkai Group and Renown. containers for specialized applications like bunk houses, tank containers, refrigerated containers as well as custom-built containers. Aiming to become the technology leader in the container manufacture segment, the company plans to set up several such facilities across in India to take advantage of the growing demand in the logistics sector, which is currently pegged at $100 billion, and is estimated to grow at 20% CAGR over the next three years. The company has already bagged orders worth of Rs 20 crore from segments as diverse as oil & gas and mining. Detailing the plans of the company, Indicon Logistics director Varun Thapar said: In the first phase of operations, which entails container manufacture and container leasing, we are looking to invest about $20 million. We have already commissioned our first greenfield facility that is the single largest container manufacturing factory in India today. Over the next phase of expansion, we are looking to invest approximately $100 million as we move from manufacturing and diversify into the development of logistics infrastructure like integrated logistics hubs, Container Freight Stations (CFS), Inland Container Depots (ICD) and cold chain and warehousing solutions. The company is also engaged in container rental services across India under its Kargatact brand. The extensive and latest model hire fleet consists of safe and well maintained containers available for short, medium and long term lease. Responding to the ever growing demand of the cold chain logistics sector, the company has invested heavily in bringing sandwich panel technology to India with the import of the largest and most cutting edge sandwich panel equipment in the India, capable of producing insulated panels made of GRP, stainless steel, aluminium etc.

Jazeera Airways signs JV with Travelport

Travelport, the business services provider to the global travel industry and Jazeera Airways have have signed a deal that will provide Galileo-connected travel agents in Kuwait with access to fares not available through any other global distribution system (GDS) channel. Jazeera Airways, an award-winning airline that operates to 17 destinations across the Middle East and North Africa, is one of the largest airlines on its route network. Travelport will help widen the airlines distribution capabilities by increasing its visibility in international markets and extending its reach to corporate travellers. Building on the existing participation agreement between the Kuwait-based airline and the GDS provider, the additional content from Jazeera Airways will be made
south asias cargo and logistics monthly n april 2011 n ecargolog

KCT -Indicon Logistics JV on containerisation

Karam Chand Thapar & Bros (Coal Sales) [KCT] is all set its feet firmly on the container logistics sector. Spearheading the move is the companys wholly-owned subsidiary, Indicon Logistics (Indicon), which has set up the state-of-the-art box manufacturing facility in Ranchi, Jharkhand at an estimated cost of Rs 400 million. Initially it has a capacity of manufacturing 750 TEUs per month. The facility is said to be a first of its kind, and in terms of installed capacity it is Indias largest container manufacturing unit with a built-in flexibility to produce all types of containers, including standard ISO boxes and

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available exclusively to Travelport GDS users in Kuwait, with preferred access to the carriers best online inventory, including last-minute web fares. With its extensive global network of travel agency subscribers, Travelport will help Jazeera Airways build a stronger partnership with travel agents who will now have direct access to the airlines value fares, said Jazeera Airways CEO Stefan Pichler. We believe that this expanded agreement will help us compete even more effectively with other regional carriers and pave the way for a new level of growth in corporate travel bookings, he added. Our expanded agreement with Jazeera Airways provides a level of access to the airline that is unmatched by any other GDS, said Will Owen Hughes, Travelports Senior Airline Director for the Middle East and Africa. With enhanced Jazeera Airways functionality now available on our systems, Travelport-connected agencies are now able to offer their customers the best fares offered by the airline, he added. Travelport customers in Kuwait can book the preferred content from Jazeera Airways with full e-ticketing capabilities. As the carrier establishes its ticketing authority in countries outside of Kuwait, best-fare access will be available to both Galileo and Worldspan-connected travel agents in these markets. More than 430 airlines worldwide participate in the Travelport GDS, gaining access to the companys extensive global network of 63,000+ travel agency users. The GDS providers latest airline partnership with Jazeera Airways reinforces its successful strategy of securing content agreements and reaffirms the value of its global distribution platforms for airline suppliers. sold to other ocean freight carriers of LNG. The Golar Spirit and Golar Winter were delivered to Brazils Petrobas, while the Golar Frost went to the consortiuim developing the Livorno offshore LNG terminal and is currently being converted by Drydocks World in Dubai, according to the latest reports from the freight carrier industry front line. Sources around the ocean freight carrier industry also indicate that this Norweigan LNG carrier owner still has a number of older LNG freight carriers that could be suitable candidates for conversion to FSRUs that could be sold. Considering Golar LNGs history of converting LNG carriers into FSRUs, we should probably expect to see more of Golars LNG carriers being converted in the months and years ahead.

Major global container Shippers Team Up to Fight Piracy

Older LNG Freight Carriers Converted to FSRU

Ocean freight carriers of LNG cargoes will be arriving at the newly converted 137,000-cmb LNG floating storage and regasification unit (FSRU) Golar Freeze sometime near the end of the year. Reports around the ocean freight carrier industry indicate that the Golar Freeze emerged from the Keppel Shipyard in Singapore near the end of April, before heading to Fujairah in the Middle East Gulf. The latest sources have the Golar Freeze arriving in Dubai sometime in May and then starting work for the Dubai Supply Authority (Dusop) under a charter agreement. The Golar Freeze will be used by the Dubai Supply Authority as its LNG import terminal, once imports begin to arrive sometime near the end of 2010 and the work on the receiving facilities are finished. In the meantime the Golar Freeze is apparently being moored at a specially constructed jetty owned and operated by DP World. The Golar Freeze is the third converted floating storage and regasification unit that Golar LNG has converted and
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Three largest global container shipping companies have teamed up to fight piracy in the Gulf of Aden and the Indian Ocean. CMA CGM, MSC and Maersk Lines cooperative efforts will include information exchange on safety measures, piracy policies and procedures as well as coordination to ensure the issue is addressed with all relevant stakeholders. Our first and foremost concern is the safety and security of our crews. Piracy continues to be a problem for the shipping industry and if we want to address it effectively, we as ship owners must cooperate, CMA CGM, MSC and Maersk Line said in a joint statement. CMA CGM, MSC and Maersk Line agree on the importance of the Best Management Practices for safe sailing in the area where the Somali pirates continue to attack and hijack vessels. Following the Anti-Piracy Best Management Practice is an important step in preventing hijackings and we fully support the use and further development of the BMP, CMA CGM, MSC and Maersk Line said. The root causes of this problem cannot be addressed overnight. Therefore, it is imperative that the naval forces have a strong and dynamic mandate to match the constantly changing situation in the area. It is also vital that the acts of piracy do not go unpunished, which is why appropriate legal frameworks for prosecuting pirates are needed. CMA CGM, MSC and Maersk Line also support proposals for regional capacity building to address the issue such as a regional coast guard and possible transit corridors to East Africa. nn

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GLS Ireland launches Express services

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Parcel carrier GLS Ireland has entered into the express arena by launching its nationwide express delivery service. This product can be easily supplemented with various other GLS services. Public can use GLS Irelands express parcel service to get trade-fair brochures, urgent construction plans or last-minute samples weighing up to 30 kg to their destination by 17:00 the next working day - guaranteed! So say company officials. In many parts of the country a 12:00 service is also offered, meaning that goods can be delivered before midday. If necessary, delivery can be to a specific department or person within a company. Consignors and consignees can track their shipments online at all times - in almost real-time. Information such as pick-up or delivery time is transmitted from GLS delivery vehicles directly to their IT system. On request, GLS Ireland can proactively inform a customer by e-mail or SMS of a consignments progress. GLS Ireland sends consignments via its own parcel network and their IT-based monitoring system ensures that all express parcels remain on schedule and arrive on time. The delivery charge includes insurance cover up to 350 in line with the actual value of the goods. Higher insurance cover up to 3500 per consignment is available. Cash-Service - for cashon-delivery transactions - enables customers to obtain payment for their goods easily and securely. Were delighted that were now also able to offer our customers express parcel services with guaranteed on-time delivery via our

reliable network, says Swen Krueger, GLS Region Manager Germany East & Ireland. And guaranteed means

if we dont deliver the consignment on time, the customer gets the surcharge back. nn

Form IV
Statement about ownership and other particulars about newspaper ECARGOLOG to be published in the first issue of every year after the last day of February. 1. Place of publication 2. Periodicity of its publication 3. Printers Name Nationality Address 4. Publishers Name Nationality Address 5. Editors Name Nationality Address 6. Name and address of individuals who own the newspaper and partners or shareholders holding more than one percent of the total capital : : : : : : : : : : : : 2/2 Sixth Street, Gopalapuram, Chennai - 600 086 Monthly V. Ravi Indian 2/2 Sixth Street, Gopalapuram, Chennai - 600 086 V. Ravi Indian 2/2 Sixth Street, Gopalapuram, Chennai - 600 086 V. Ravi Indian 2/2 Sixth Street, Gopalapuram, Chennai - 600 086 V. Ravi 2/2 Sixth Street Gopalapuram, Chennai - 600 086

I, V. Ravi, hereby declare that the particulars given above are true to the best of my knowledge and belief. Sd/V. Ravi Date : 01/03/2011 Signature of the Publisher
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Logistics

DHL wins 10-year Euro1.4bn UK health scheme deal

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DHL Logistics has won a 10-year deal totaling GBP 1.6 billion /Euro 2.3 billion in revenue to manage GBP 22 billion/Euro 32 billion total spend with the UK Governments Department of Health. DHL will target over GBP 1 billion/Euro 1.4 billion savings over the contract period back to the English National Health Service (NHS). Klaus Zumwinkel, CEO and Chairman of Deutsche Post World Net, said the contract marked the significant success of the Groups strategy: After the take-over of Exel and given DHLs extensive expertise in the health sector, we were able to make our customer a truly convincing offer. We now reap the benefits of both our internationalization strategy and our broad product range. DHL will run a division called NHS Supply Chain, on behalf of NHS Business Services Authority. Under the agreement, DHL will run a division called NHS Supply Chain, on behalf of NHS Business Services Authority, and be responsible for delivering all procurement and logistics services across an initial 500,000 products to support 600 hospitals and other health providers in

England. The business will ensure that public health (NHS) authorities can dedicate more resources to patient care and continue to manage their cost base. It will help protect existing jobs and lead to the creation of over 1,000 additional positions. John Allan, Chief Executive of DHLs Logistics division and Management Board Member of Deutsche Post World Net, says, This contract is both good for staff and good for the NHS. We are committed to targeting savings on behalf of the Department of Health that can be directed back to patient care by building upon the success of both NHS Logistics and some of the scope of the NHS Purchasing and Supply Agency. The contract will ensure that NHS Trusts get access to a wide range of high quality, innovative products that will be selected by having extensive dialogue and testing procedures with clinicians. We are thrilled to play such a major part in this change to manage and deliver a world-class supply chain for the NHS. John Pattullo, Chief Operating Officer for DHL Exel Supply Chain, Europe, Middle East and Africa, adds, By applying commercial experience

and procedures to core logistics and procurement functions, and working very closely with the supplier community, we now have a unique opportunity to deliver innovative, high quality products to support public health in England. This is exactly the kind of strategic sourcing deal where we think we can generate major value for our customers, in this case - the NHS. The range of products NHS Supply Chain will manage encompasses a wide range of goods including key supplier and maintenance contracts, food, bed linen, office equipment, stationery, cleaning products, patient clothing, medical and surgical equipment (such as operating theatre equipment and machinery) dressings and provisions. NHS Supply Chain will have its own management team and be governed by a Board dedicated to managing the performance of the operations. In addition, it will be overseen by the NHS Business Services Authority, a government body responsible for managing core public sector support services. In 2008, DHL will open a new 250,000 sq ft UK-based DHL distribution centre (DC) to act as a stockholding hub for food and other products. It is expected that around 1,000 extra employees will be recruited to manage this distribution centre and an additional DC in 2012. With extensive experience in the healthcare sector, including over five years experience with the former NHS Logistics, DHL will build upon existing knowledge, relationships and capabilities to pass savings back to the Department of Health. In addition, DHL will have freedom to invest and develop the business along commercial best practice, work even more closely alongside industry professionals and suppliers, and introduce more employees to the benefits of working alongside DHL. nn

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Logistics

Indian 3PL market getting boost from FMCG

3rd Party Logistics Market in the FMCG industry is projected to grow at a CAGR of around 38% till 2013, says RNCOS in its research report.
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New tenant for Bahrain Logistics Zone

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In this era of globalization, India is witnessing an increasing demand for the 3PL (third party logistics) business, with companies from diversified sectors now concentrating on managing their supply chain mechanisms in a better way as well as deepening their market penetration. We have found FMCG as one of the major sectors, which has provided considerable contribution to the 3PL market and has significant potency to grow in future. According to our research report 3rd Party Logistics Market in India, the 3PL market in the FMCG industry will post good momentum in coming years and is anticipated to grow at a CAGR of around 38% till 2013. Our study reveals that, with the implementation of total VAT system in India, this particular market is anticipated to further boost its share, thereby changing the FMCG companies warehousing model and driving them towards the 3PL adoption. Moreover, the FMCG manufacturers will focus more on increasing their penetration levels in unexplored markets and will outsource logistic services to other companies. Due to all these reasons, the 3PL market in FMCG industry is showing positive outlook. Our research says that, 3PL market will not only witness a high rise in FMCG, but also in other segments, such as retail, IT Hardware, auto & auto components, consumer electronics, and durables. Our report has analyzed the 3PL market in all these segments. This segment-wise market potential of the 3PL services facilitates the better analysis of the penetration level of latest logistic services across different industries in India. Besides, the report covers upcoming industry trends, such as Green Logistics, 4PL industry, and others. Our report 3rd Party Logistics Market in India, also provides a prudent analysis of storage infrastructure by analyzing warehousing and cold storage. Our study has also covered a regional outlook of logistics parks by providing an insight into the major logistics projects. It has also studied different modes of freight movement including railways, air and ocean cargo, and road transportation. Additionally, we have discussed key players under the competitive landscape segment. nn

Almoayed Wilhelmsen has signed a tenancy agreement to lease more than 4000m2 of land at Bahrain Logistics Zone. Founded in 1976, the company is a joint venture between one of Bahrains leading families A.K. Almoayed and Norwegian shipping company, Wilhelmsen of Oslo. BLZs strategic location in close proximity to the Kingdoms new sea port and access to prime transportation links made it our preferred base for expanding our operations. Additionally, BLZs wide variety of value-added warehousing services including round-the-

clock customs and support facilities have allowed us to move our export and distribution of general cargo services to a common location thus streamlining functions and facilities that were earlier disparate, said Per Jorgensen, general manager of Almoayed Wilhelmsen. More importantly, our premises at the BLZ will allow us to offer comprehensive logistics solutions to our customers value added goods and products. The BLZ investment will enable delivery of the WSS offer. With this move, we look forward to expanding our business and deriving maximum benefit in terms of operational efficiency. Located within the Khalifa Bin Salman Port (KBSP) and the industrial community, BLZ will offer companies dedicated value-added warehousing facilities tightly integrated with the Kingdoms maritime and distribution capabilities. Under administrative jurisdiction of the General Organisation of Seaports, BLZ is set to facilitate streamlined movement of logistics traffic, positioning Bahrain as a multimodal logistics centre for Kingdom of Saudi Arabia and the northern Gulf. nn
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Kandla Port Trust to invest Rs 755-cr in 4 dry cargo berths

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Aiming to cross 100 million tonne cargo handling capacity by 2012-13, Kandla Port Trust (KPT) will be adding four multi-purpose cargo berths to handle an additional 8 million metric tonne per annum (MMTPA) consignment. According to Chairman PD Vaghela, We shall be adding four multi-purpose cargo berths (13 to 16) capable of catering to Post Panamax vessels and handling 8 MMTPA of cargo on BOT (build, operate, transfer) basis, with an estimated investment of Rs 755 crore. The port has inked concession agreements for the berth numbers 13, 15 and 16. The construction work for 13th berth has started, while construction of 15th & 16th will get started shortly, he said. The request for qualification (RFQs) for the berth number 14th shall be invited soon, Vaghela said. KPT handled 81.88 MMT of cargo during FY11, registering an increase of 23.80 lakh MMT over the last years traffic of 79.50 MMT, maintaining its numero uno position amongst the 12 major ports in the country, he said.

The port has utilised more than 95 per cent of its total cargo handling capacity of 85.80 MMT. The dry cargo traffic handled by KPT (including containerised cargo) during FY 2010-11 was 265.38 lakh MT, up from 245.84 lakh MT in the previous year.

KPT has undertaken projects to develop eight off-shore dry cargo berths outside Kandla creek, at Tekra, capable of catering to the vessels up to 100,000 DWT (deadweight tonnage) and handling 28 MMTPA of cargo, in two phases, an official said. nn

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Shipping Mundra Port to set up coal terminal at Vizag Port

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The Adani Group-promoted Mundra Port & Special Economic Zone (MPSEZ) has said it will be developing a coal import terminal on the Visakhapatnam Port, which will be the third such facility by the company, reports PTI. The proposed terminal, which will be built at a cost of over Rs 300 crore, marks the entry of MPSEZ on the Eastern Coast, the countrys largest private multi-port operator said in a release in Ahmedabad today. The terminal, the Berth East Quay-1, will be designed to handle imported coal volume of around 6.5

million tonne per annum and will be commissioned within two years, it said. The contract to set up the berth on the Visakhapatnam Port marks our entry on the East Coast. This is in line with our objective of having pan- India presence said Adani Group Chairman Gautam Adani said in the release. The Visakhapatnam Port Trust selected MPSEZ after a competitive bidding and the contract is to develop a coal import terminal. The Visakhapatnam Port is strategically located and the proposed terminal will feed industries and

power plants in Andhra Pradesh, Orissa, Chhattisgarh and eastern Maharashtra. Mundra is the largest privatelyowned and operated port in India, and is among the 10 largest ports in cargo handling volumes. It has handled around 40 million tonne of cargo in 2009-10 and aims to handle 50 MT in the current year. MPSEZL, developing the countrys largest multi-product SEZ at Mundra, operates ports at Mundra and Dahej (both in Gujarat) and is developing one at Hazira and coal terminals at Mundra and Goa. It is also developing ports in Australia and Indonesia. nn

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Key Asian ports in dire need of investment
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Mundra port aims at 100-mt cargo volume by 2012-13

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ecargolog bureau

ecargolog bureau

Congestion due to rapid volume growth and the logistics impact of lines cascading larger tonnage into regional lanes are hampering key ports in Asia which are in dire need of investment, according to forwarders and analysts. The maximum size of vessel deployed by lines on intra-Asia trades has jumped from the 1,0002,000teu capacity range of a few years ago to as high as 4,000teu, increasing the strain on terminal and hinterland capacity at many ports. The intra-Asia box trade was the fastest-growing international trade at present with further expansion expected this year. But one can challenges with congestion. Though new terminals have opened in Vietnam, theres still room for improvement there. Indonesia is also a challenge not just Jakarta but also for feeders trying to meet main line services. This is a country where growth is good and potential strong, but more investment in ports is needed. Nhava Sheva, the key gateway for containers in India, is also currently struggling with severe backlogs as exports surge. In neighbouring Bangladesh, labour, management and volume issues have beset the port of Chittagong for almost a year. The situation worsened last week when a number of regional liner operators threatened to boycott the port because the lack of fenders at some berths was damaging vessels, adding to delays while repairs were completed. Paul Slater, Chairman of First International Corp, said the introduction of medium-sized ships geared towards serving the US on transpacific routes could further increase pressure on some ports in Asia. With manufacturing being outsourced from China to Vietnam and Indonesia, these countries look a good bet for port investment to take the medium-sized ships. The new Panama Canal lock system is also important for these medium-sized ships that could run from South-east Asia to the US east coast. He said to increase port capacity fast enough to meet demand, lines and governments would have to rampup investment levels in key facilities. I think some local government participation will be needed as the investment markets are still very skittish, and the trade will need some sort of support from the lines if the new sizes and facilities are to be provided. nn
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ecargolog n april 2011 n south asias cargo and logistics monthly

Mundra Port and Special Economic Zone, an Adani Group firm, handled 50 million tonnes of cargo in 2010-11, making it the seventh largest port in the country in terms of annual cargo handling volume. The cargo volumes at Mundra Port have leaped from 11.7 million tonnes in 2005-06 to over 50 mt in 2010-11, a compounded annual rate of growth of 34 per cent. In the same period, the maritime trade of the country grew at a rate close to 8.5 per cent, according to a company statement. The company expects to handle 80 mt of cargo in the current financial year and aims to cross 100-mt mark by 2012-13, it added. This will make Mundra the preferred port of call by 2012-13, handling highest cargo volumes among Indian

ports, the statement further said, adding that it has emerged as the seventh largest port in terms of annual cargo handling volumes for FY 2010-11. The privately owned port has 13 berths for handling bulk, liquid and container cargo, two single point mooring units, a RO-RO terminal for automobile handling and a fully automated 60-mt dedicated coal terminal with two berths. The company is also developing six more berths for handling bulk/container cargo and is enhancing the capacity of coal terminal to 100 mt, the statement said. The Mundra Port handles a large variety of cargo including crude oil, petroleum products, chemicals, edible oil, coal, fertilisers, steel, containers and automobiles. ?With Mundra Port?s world-class infrastructure, best operational practices, proactive and customer-friendly management, we are aiming at handling 200 mt of cargo volumes by 2020 at the ports managed by the company,? the Adani Group Chairman, Mr Gautam Adani, said. The company currently operates ports at Mundra and Dahej and is developing a port at Hazira and coal terminals at Marmugao and Vishakhapatnam. All the three plant terminals are expected to be operational by 2013. nn

south asias cargo and logistics monthly n april 2011 n ecargolog

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RNI No. : TNENG/2011/36415

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ecargolog n april 2011 n south asias cargo and logistics monthly