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   Vol. 13 No. 98  
Friday December 5, 2014


100 Days & Tomorrow

   Narendra Modi’s government just celebrated its first 100 days in office. While 100 days is too short for any government to show its performance, ministers from almost every department have not stopped beating their drum and announcing the work they have started.

   In what could best be described as the ‘awakening of a slumbering giant,’ the country’s infrastructure juggernaut has started moving. With the emphasis on development of cargo infrastructure, air cargo stakeholders are optimistic that “better times are coming.” (Incidentally, this is the slogan on which Prime Minister Narendra Modi spearheaded his electoral campaign). To top it all, the infrastructure moves recently received a boost when Maplecroft UK's risk analysts sent out a confidential note to top global investors that India had become ‘the world's best growth-market bet’ since there was policy clarity and less red tape after the Modi government completed its first quarter.
   As part of infrastructure development, the government has taken a decision to set up air freight stations (AFS) in 10 cities. These AFSs, to be built by the Central Warehousing Corporation (CWC) will ease the supply of foodgrain.
   Established in 1957, the government-controlled CWC is the biggest public warehouse operator in the country. It has 471 warehouses with a storage capacity of 10.5 million tonnes. While it provides logistics and warehousing to the agricultural sector, the corporation also helps in the storage of sophisticated industrial products. CWC handles custom bonded warehouses, container freight stations, inland clearance depots and air cargo complexes, and does clearing and forwarding as well as handling and transportation of goods. Today, CWC is responsible for three air cargo complexes at international airports besides the management of the cargo warehouse at Indira Gandhi International Airport in New Delhi.
   The direction to set up the 10 AFSs is part of a comprehensive eight-point plan chalked out for the CWC by Food Minister Ram Vilas Paswan. It remains to be seen whether these CWC AFSs are completed and commissioned in time.
   Earlier attempts at starting AFSs have failed or at best remained half-hearted attempts. In fact, air cargo stakeholders have been demanding AFSs at international airports for quite some time. In the southern city of Chennai, for example, AFSs have been set up, but have not started operations for one reason or another. For its part, the Air Cargo Agents Association of India (ACAAI) has been pushing to start these AFSs at Chennai.
   Keshav Tanna, (right) vice president, International Federation of Freight Forwarders Association (FIATA) and one of the most vocal advocates of the thrust to infrastructure never tires of pointing out that a pro-active instead of a reactive approach is needed by the government for air cargo growth. While he commends the formation of the Air Cargo Logistics Promotion Board, he believes that it has a crucial role to play. Tanna, like many, has been talking of Air Freight Stations for the last few years, but while these have been demarcated in Chennai and Mumbai, they have not been commissioned yet.
Ashok Gajapati Raju   On the civil aviation ministry front, Minister Ashok Gajapati Raju (left) declared in his 100-day press conference that the government would go ahead to set up the first ‘no-frills airports’ in four states of the country. They will be at Teju (Andhra Pradesh); Hubli and Belgaum (Karnataka); Kishangarh (Rajasthan near Ajmer) and Jharsuguda (Odisha). Clarifying the nature of the airports, the Minister said that it would “not be correct to call them low-cost airports. They will have no frills. Airports Authority of India (AAI) has developed this model airport, without compromising safety and security. This will result in low cost of operation and make it viable for the airlines to run their services. AAI is committed to commencing work in this financial year at the five locations.” He also said that the airports would handle turboprops like ATRs and Q-400s. The terminal buildings would be simple structures—no fancy glass and steel like the terminals at international airports in the country—and the ATC would be mobile instead of the huge stationary towers.
Tirthankar Ghosh

 

Lufthansa Cargo ad

 

Vandana Singh

     India’s air cargo sector would have lost Vandana Singh if the rules from way back in the Nineties permitted young ladies to join the fighter squadrons of the Indian Air Force. Singh’s father, Brigadier S. L. Kapur was aware of the ambition of his daughter: to become a fighter pilot. In fact, he tried his utmost to fulfill her dreams, but the rules could not be bent or broken. So, Vandana settled for a career that would take her close to flying fighter jets.
     Today, after more than 18 years in the air cargo sector, Singh as regional commercial director, Asia Pacific Region, ECS Group, wakes up every morning ready to fly. And for those who think cargo is boring and monotonous, she has just three words: Explorative, challenging, fun. So what makes this lady go?
     She was with Lufthansa Cargo earlier —in fact, for 15-odd years—and found it “a disciplined run and a journey, where, at every turn, I learnt something new. Now with European Cargo Services, which happens to be the largest Cargo GSA in the world with 140 airlines, it is an opportunity to actively network and build on Relationship Management, which is close to my heart,” she said.
     Affable, friendly, and charming, Vandana Singh has a healthy respect for the cargo industry. She told FlyingTypers, “This industry has always managed to bring out the best in me and I have had the good fortune of working with incredibly smart people who have continued to motivate and support me through it all.”
     When she joined the industry, there were just a handful of women. But she did not mind working in a male-dominated industry. She said, quoting Donovan Bailey, “Follow your passion, be prepared to work hard and sacrifice and, above all, don’t let anyone limit your dreams.” Simply put, aviation and cargo have always been her passion, and “once a person decides to reach out for her passion, it is never really difficult to find the way in.”
     As for cargo being essentially a male dominated industry . . . well, these days the changing status of women in society is a subject of increasing importance and attention. “Reality has shown that women these days are able to achieve superior financial growth in various industries,” said Singh. As a woman, “maybe somewhere along the road I did face troubles but as I said . . . when you work for what you love, you overcome all obstacles and besides, my male colleagues have been very understanding and support my growth in this industry.”
          Her working life, she pointed out, has revolved around the “transfer of knowledge and working together. My colleagues and those who are reporting to me—since the day I joined European Cargo Services—and on my path in this industry, have been very supportive and receptive.” She said she had the good fortune of receiving “an exceedingly good response from everyone.”
     Today, she specializes in global key accounts management and relationship management. In her previous role, Singh became a pioneer of sorts when she brought about “line optimization and balance in export-import ratio on [our] flights with Consignee Sales Management and International Sales.” That, she said, was something that will live with her forever.
     An avid traveler, every aircraft is “my second home.” And whenever anyone asks her if she can drive a car, she replies: “No . . . But, I can fly!” It’s the cargo in the bellyhold, however, that remains her everlasting passion. “This passion has allowed me to travel to 90 percent of the world. For me, learning never stops, the challenges never stop. In fact, they keep on growing. Sometimes I feel as if I am working in a stock exchange. It is so unpredictable and just enough to keep the excitement and adrenalin pumping.”
     As we rise to leave, Vandana mentions one of her idols, Susan Wojcicki, the CEO of YouTube.
     “At the end of the day,” she quotes Wojcicki, “both men and women who have become CEOs have showed tenacity and hard work to succeed in their careers. It takes not only skill but extreme dedication and commitment, and regardless of gender, CEOs are measured by the same criteria—the growth and success of business.”
Tirthankar Ghosh

 

Saudia Cargo Ad

 

Nagpur Airport

     Remember the Multimodal International Cargo hub and airport at Nagpur, in the center of India?
     Known as the Multi-modal International Hub Airport at Nagpur (MIHAN), the almost forgotten project has been 10 years in the making. No wonder, then, that while campaigning for his Bharatiya Janata Party (BJP) at an election rally some time ago in Nagpur, Prime Minister Narendra Modi declared, “The MIHAN file took 10 years to travel 500 meters—that is the tragedy of MIHAN.” He had a reason for saying this: The MIHAN project is the biggest economical development project underway in the country in terms of investments. The project’s aim: convert Nagpur airport into a major cargo hub with integrated road and rail connectivity while exploiting the city’s geographical location.
Devendra Fadnavis and Nitin Gadkari     Modi’s words must have struck the right chords in the people of Nagpur and the state of Maharashtra. It voted the BJP to power. Perhaps what is more important is that the Chief Minister of Maharashtra Devendra Fadnavis is from Nagpur. When it is completed, MIHAN will bring about a revolutionary change in the transportation of cargo across the country by air, railways, and roadways.
     And in the new scheme of things, where the Prime Minister is keen to improve and ramp up infrastructure in the country, MIHAN will become one of the top 100 smart cities.
     It is not that work has not been done. Infrastructure has already been put up, but the cargo hub is still to see movement. Through these last 10 years, political parties have had a field day, with allegations and counter-allegations about the project making the rounds. The initial problems started with the delay in handing over the Nagpur airport to the project authorities. The airport belongs to the central government-controlled Airports Authority of India (AAI), while the Maharashtra Airport Development Company Limited (MADC), which was constituted in 2002 by the Government of Maharashtra as a Special Purpose Company, is handling the MIHAN project. MADC was jointly formed with equity participation from the City and Industrial Development Corporation Ltd. (CIDCO), Nagpur Improvement Trust (NIT), Maharashtra Industrial Development Corporation (MIDC), Maharashtra State Road Development Corporation Ltd. (MSRDC), and the Nagpur Municipal Corporation.
     Now, with the Chief Minister of the state as well as Minister of Road Transport and Highways in the central cabinet Nitin Gadkari, from Nagpur, the project is certain to move forward. Chief Minister Fadnavis emphasized at a recent meeting that not only would he give the topmost priority to the MIHAN project, but also ensure that no proposals would be kept pending for technical reasons.
     To begin with, in the third week of November, power supply has started flowing to the MIHAN project after almost seven years. The power supply had been stopped because of wrangling between the suppliers and the apathetic attitude of the earlier Chief Minister.
     Meanwhile, the last ten years have seen a realignment of MIHAN’s projected estimates. Back in 2001, L&T Ramboll had in its original techno-feasibility report projected cargo throughput at 8.70 lakh MT per annum and passenger traffic of 14 million per annum. Both figures were starting from 2005 until 2035. Now, more realistic adjustments have been done with a starting year of 2015: Cargo throughput will reach 60,000 metric tons and passenger traffic will be seven million by 2045.
     Added to the cargo hub will be Air India’s largest maintenance, repair, and overhaul (MRO) facility. The $107 mn. MRO spread across 50 acres was scheduled to be handed over to Air India in November. Delayed by almost three years, this MRO will be able to handle three widebody aircraft, such as Boeing B777s or Airbus A380s, at a time. Now, domestic airlines that have to fly to West Asia or Singapore for maintenance checks will find the same facilities in the country.
     Going by the recent moves, India’s dreams to create a Frankfurt in Nagpur could well see the light of day. The 40.25 sq. km. multi-modal cargo hub and airport, along with a special economic zone, will surely change Nagpur’s skyline.
TG

 

chuckles for December 5, 2014

 

Trust Deficit Blocks Infrastructure Reform

     Even before the dust could settle on the policy guidelines for Air Freight Stations issued by the Indian government, a section of cargo stakeholders have taken it upon themselves to lobby for improved cargo infrastructure.
J. Krishnan     Leading the charge is veteran freight forwarder J. Krishnan. As chairman of the logistics committee of the Madras Chamber of Commerce and Industry, he has been advocating the creation of a separate department of logistics headed by a Minister from the government. Krishnan recently presented his case to Nitin Gadkari, minister of Roadways, Highways, and Shipping.
     FlyingTypers caught up with Krishnan, one of the longest-serving air cargo forwarders in the country, to find out why there was a need for a Ministry of Logistics. While in one way the need for a single ministry to handle all sectors would simplify matters, it could also lead to a lot of bureaucratese and delays. As an example, we pointed out that the aviation ministry through all these years had done precious little for cargo.
     Thinking about the future, Krishnan said that to “create a world class infrastructure, a holistic approach needs to be adopted.” In the Indian context, the ministries controlling infrastructure are Aviation, Road, Railways, Shipping, Industry, and different state governments. He pointed out that “inter-ministerial rivalries and the trust deficit between the central government at Delhi and the state (on account of different political affiliations) has remained a major roadblock for commissioning and completing major infrastructure projects.” As an example, he said that the railways focus was on passenger movement while the National Highways Authority of India (NHAI is responsible for major highways in the country) and the ports do not enter into pre-planning consultations. As any project progresses, access bottlenecks emerge and disrupt the progress. This lack of co-ordination between NHAI and any state government road transport ministry has resulted in the lack of dedicated access road to airports at Delhi, Mumbai, Chennai, Cochin, and a host of other places.
     Hence the suggestion to create a new ministry, said Krishnan. “A dedicated ministry can ensure a world class infrastructure across all modes,” he said, “and this will also bring in a seamless supply chain.”
     As for the present problems that air cargo in the country faces, Krishnan said that the “Indian air cargo industry has not matured to world standards and cargo unitization happens only at airports.” Only loose cargo is shifted to airports. In fact, Indian airports stand out in the number of loose packages handled when compared to the major cargo hubs in Asia and other parts of the world. He went on to say that “air terminal operators do not possess the core competency to handle freight.” In such a situation, “airports must remain only as throughput areas if they are to function efficiently.”
     The ideal solution for all this would be Air Freight Stations where loose cargo is processed, unitized, and delivered to airports for uplift, and in the reverse flow unitized imports are shifted to AFS, de-vanned and delivered, said Krishnan. The recently-announced AFS policy has extended the concept of Dry Ports and permitted existing Inland Container Depots/Container Freight Stations to handle air freight too for regulatory clearances.
TG

 

 


Big Box Theory . . . A total of 54 boxes containing Deutsche Bahn's (German Railway) indictment against multiple airline companies stand at the delivery entrance to the regional court in Cologne, Germany, December 1, 2014.

RE:  Enough Lawsuits Already

Dear Geoffrey,

     It is amazing to me that a forwarder like DB Schenker, which demands the lowest rates and the highest service, wants to get money back from the airlines for fuel charges.
     Maybe all the passengers should do the same with all the airlines charging the same high prices now that fuel costs are down. What about when I have to pay triple the price for roses on Valentine’s Day?
     How about getting money back for the high charges for flowers on Mother’s Day?
     You can say it is different, but then why don’t the airlines go back to the forwarders when they lose money and sue for more? The big question is whether Schenker is going to give the money back to their customers or just keep it to give their executives huge bonuses!

Bill Boesch


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Letters
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