May 07

Industry NewsExporters worried about rupee appreciation, tax and transaction costs..............................3

Airlines NewsEtihad doubles India flights, destinations ..............................................................................4Air Shagoon: Thriving with AeroSvit and air logistics............................................................8SkyCargo honours its Mumbai agents in style ......................................................................10Lufthansa declares summer schedules....................................................................................12

Shipping and PortEmerging opportunities in Indian maritime trade................................................................16Emirates Shipping launches 2 new services ..........................................................................28Kandla Port set for robust development ..............................................................................34Emma is 'Ship of the Year' ....................................................................................................42China Shipping offers premium service ................................................................................45

Conference and ExhibitionsPost Harvest 2007 creates awareness about operations ......................................................20

Emerging TechnologiesKale to provide CSP-AMBER solution to SAS ........................................................................22

Logistics ServicesGatewayRail - CONCOR ink deal for double-stack container termina ................................38Kotak Mahindra invests Rs 100 crore in DRS ........................................................................44

Family AlbumForbes Patvolk's new CFS at Veshvi ......................................................................................26Schaefco lifts Aero Marine Cup..............................................................................................50 Swiss WorldCargo felicitates agents ......................................................................................52

Cargo PerformanceAirlines wise cargo upliftment in March 2007 from Delhi airport ......................................40Airlines wise cargo upliftment in March 2007 from Mumbai airport..................................41

Express CargoBlue Dart augments infrastructure brawn ............................................................................46

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A monthly publication of Durga Das Publications Pvt. Ltd.

M a y – 2 0 0 7

CARGOTALK

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Exporters worried about rupee appreciation, tax and transaction costs

Ratan Kr Paul

The rupee appreciation has started takingits toll on exports. After growing byabout 24 per cent in April-Nov 06,

export growth has slipped to single digit. Therupee has already appreciated by about 11per cent between August 06 and April 07from Rs 46.50 to Rs 41.20 (a nine year high)as on April 24, 2007. Said Ganesh K Gupta,president, Federation of Indian ExportersOrganisation (FIEO), "The rupee appreciationhas already eaten whatsoever small marginsremain in the competitive field of exports andthreatening the very existence of a largenumber of exporters and their employees."The situation on exports is likely to beworsening further as the current exports arefree from already executed contract, whichneed to be fulfilled. And, it is speculated,some renowned exporters are searching forother means of selling their products, bytargeting the burgeoning retail sector inIndia. "There is no point of doing exportbusiness for thousands of exporters. We arefacing stiff competition from the exportersfrom China, Bangladesh and Pakistan ascurrency has depreciated in Bangladesh andPakistan and has been stable in China," saidOP Garg, immediate past president, FIEO.

Appreciation of rupee apart, the RBIcredit policy announced on April 24, increasein bank interest rate, unavailability of loansto export houses and increase in transactioncosts have pushed up the total cost of exportsby more than 10 per cent over the last year.In Gupta's opinion the Union Budget 2007-08 has further increased the tax burden on

exports by hiking the education cess fromtwo per cent to three per cent. Add to this,the service tax levied on renting ofcommercial space has increased the rent byabout 15 per cent. In view of the emphasisof the present government on employment,exporters were expecting income tax relief onemployment generating sectors like textiles,leather, handloom, carpets, handicrafts (otherthan wood based handicrafts), marine, autocomponents, forgings, etc. However, it wasnot met. The imposition of FBT, which wasaffected the marketing strategy of most ofthe exporting companies was also notwithdrawn.

The Foreign Trade Policy tried toneutralise the service tax on post productionservices both in India and outside as well asinput services for non-excisable sectors.However, lack of coordination between theministry of commerce and finance has baffledthe exporters.

Navratan Samdria, past president, FIEOremained critical about the present form of'Focus Products' and 'Focus Market' Schemes."These Schemes are basically to promote

labour intensive products and new markets.However, exclusion of non-EDI ports from thepurview of these schemes has deprived theintended beneficiaries," he explained. It maybe recalled ICD, Kanpur (hub of leather), ICDPanipat (centre of handloom) and ICD,Moradabad (nucleus of brass art-handloom)have been excluded from the Schemes, asthese are non-EDI ICDs. "If a port or an ICDis non-EDI, the onus lies with the governmentand exporters should not suffer on accountof lack of initiatives of the government," saidan utterly disappointed Samdria.

FIEO also lamented on increasingtransaction costs. "The issue of transactioncosts assumed great significance in view oferosion of competitiveness of Indian exportsdue to rupee appreciation. A time frameneeds to be announced immediately tocomplete EDI connectivity among all theagencies involved in imports/exports," urgedSubhash Mittal, past vice president, FIEO. Healso suggested for strict monitoring in eachdepartment to see to what extent specifiedtime prescribed for each kind of activity ismaintained.

According to the ministry of commerce statistics, exports of merchandise trade touched US$125billion during last financial year. This with services exports achieving US$71.6 billion takesIndia's export of goods and services to close to US$200 billion. The ministry has set a target forthe current financial year of US$160 billion reflecting growth of 28 per cent. Is it achievable?Exporters, however, show serious concern.

(L-R) Ajay Sahai, Subhash Mittal, O P Garg, G K Gupta, R K Dhawan and Navratan Samdria

44 CARGOTALK — May - 2007

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The flight operations will begin from AbuDhabi to Thiruvananthapuram on May 31and to Kochi on June 3. "The new cities

will double Etihad's destinations in India tofour," said James Hogan, chief executive,Etihad Airways. Speaking to CARGOTALK fromAbu Dhabi, Hogan said bothThiruvananthapuram and Kochi join Etihad'shighly successful services to the commercialcapital Mumbai and national capital Delhi.

Asked what else is in store for India,Hogan replied, "In early June this year, Etihadwill increase the frequency on its Abu Dhabi-New Delhi route from the present three flightsper week to a daily service. Thereby, Etihad willraise the total number of flights to India eachweek from 10 to 21."

Speaking about the frequency, Hogan said,"Etihad will operate the Thiruvananthapuramand Kochi services three and four times perweek respectively. Both the routes areexpected to increase to daily flights fromOctober 2007."

Hogan added that India has, and always,will be one of Etihad's cornerstone marketsbecause of the historical ties with the UAE andboth countries' growing position as world-class business and holiday destinations. Indiais now second fastest growing economy in theworld. "In a short period of time, Etihad has

developed a strong reputationamong our customers, and we willbuild on this service by flying tomore destinations across thecountry, and very soon, operatingdaily flights to these four majorbusiness and leisure destinations."

The launch ofThiruvananthapuram and Kochiservices will take the total number ofdestinations in the Asian subcontinent to nine- Mumbai, New Delhi, Islamabad, Karachi,Lahore, Peshawar and Colombo.

To a question on other developments inthe near future, Hogan said that Etihad willbegin non-stop flights from Abu Dhabi toToronto on June 2, 2007. The service will beoperated by an ultra long range Airbus A340-500 aircraft. "Etihad will be the only airline toprovide non-stop service to Toronto from theMiddle East. The A340-500 aircraft enables usto significantly increase the cargo capacity. Thepresent total volume of cargo per month isexpected to double."

The Canadian air cargo market is verydiverse with many opportunities. The maincargos being transported currently arepharmaceuticals, computers and computeraccessories, oil filed equipment and garments."With the non-stop service, Etihad Crystal

Cargo will tap into theperishables market too.Eastern and Western Canadahave a fishing fleet in boththe Atlantic Ocean andPacific Ocean with hugepotential for live seafoodcommodity shipments."

In this summer, Etihadwill increase its flying programme by 18 percent. New routes will be launched by theairline, extra flights will be added to existingservices and six new wide-bodied long-hauljets will be introduced boosting the UAEnational carrier's global network.

On March 26, 2007, for the first time,Etihad added Sydney, Australia, to itsinternational network of online stations, withthree non-stop flights a week. On June 29, thefrequency was increased to non-stop seven aweek. On August 3, the Irish capital Dublin willbe added to Etihad's network, and flights toMilan's Malpensa Airport will start onSeptember 1.

What about the fleet? "Six new aircraft jointhe Etihad fleet throughout the summer 2007,"Hogan said. Four Airbus will be delivered in June,July, August and September. Two more A340-600s will also join the fleet for the first time inAugust and September," Hogan replied.

Etihad doubles India flights, destinations

James Hogan

UAE's national carrier Etihad Airways is all set to expand its services to India with the launch oftwo new routes from Abu Dhabi to Thiruvananthapuram and Kochi in Kerala.

CT Bureau

55CARGOTALK — May - 2007


Air Shagoon: Thriving with AeroSvit and air logistics Recently, after being appointed cargo agent for AeroSvit Airlines in India, Air Shagoon hasstrengthened its sphere of operations to give a tremendous push to cargo traffic between Indiaand Ukraine including other European and CIS countries.

With the assistance of the airline,thanks to their promotional cargorates aiming to generate sizable

cargo/export from India, Air Shagoon achievedcommendable success, informed Anurag Birla,MD, Air Shagoon.

Besides this, the company boasts of havingundertaken and conducted other commercialcargo activities while providing cargo charteraircraft for cargo export worldwide.

Air Shagoon has commendably promotedand convinced both exporter and customers tohave their cargo airlifted through the airline.

"The main objective of Air Shagoon is toachieve its goal by way of putting its utmostefforts professionally and amicably in the fieldof aviation related services and ultimately

come out while achievingboth target and success," saidBirla. This is evident from thefact when ISRO sponsoredINSAT-4B Satellite's airtransportation from Bangaloreto Caynne (French Guyana)was conducted by Air Shagoonin January 2007. "The missionfor the air transportation wasa complete success whichfurther added another feather in the cap,along with other achievements of thecompany during this period," Birla pointed out.Also, he added, “The cargo air transportationfrom Delhi to Congo under UN Peace KeepingMission inviting Indian military troops and air

force to be engaged inrestoring peace in Congoenhanced company'sinvolvement in the airlogistics, both for civil andmilitary.”

These apart, Air Shagoonproves ground handlingservices at designatedairports in India to variouscharter airlines. With an

appeal ‘To serve, we need your patronage’ thecompany has also enlarged its wings byproviding other services such as hotelaccommodation, surface transportation andother services related to both tourism andtourists.

Anurag Birla

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Ratan Kr Paul


SkyCargo honours its Mumbai agents in style

Emirates SkyCargo recently honouredits top-performing Mumbai agentsat a spectacular awards ceremony

held on Superstar Libra of Star Cruisesfrom Mumbai to Goa and back with threedays of fun-filled joy and memorableexperiences.

The event is an important part of theEmirates SkyCargo awards calendar and anopportunity to recognises all cargo agents fortheir outstanding contribution in supportingthe ongoing success of the carrier.

Air lift (India), Consolidated FreightForwarders, DHL Danzas Lemuir, EasternCargo Carriers, East West FreightCarriers, JAC Air Services, Jeena &Company, Jet Air Freight, Penta Freightand Shri Swami Samarth Airfreight wereawarded 'Top Performing Agents for2005-2006 Crystal Trophy'.

Speaking on the occasion KekiPatel, cargo manager, West India said,"Ever since we launched our cargooperations, our single-minded

philosophy has been to ensure thatEmirates SkyCargo customers receive allthe benefits of modern and up-to-datelogistics management techniques." Healso added that over the years, theairline had developed strong relationswith the top agents in the west India."Today, we are recognising them fortheir hard work and commitment toEmirates SkyCargo. The awards are atestimony of our gratitude to them,"said Patel.

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Lufthansa Cargo declared its summerschedules for the year 2007. As per thenew time table the airline

has increased its freighterfrequencies to Dallas, Sao Pauloand Shanghai. New destinationsin the schedules are Lahore and adirect connection from Cologne through EastMidlands (UK) to Wilmington (USA). Cargocustomers will also benefit from changesbearing on airfreight in Lufthansa passengerservices. Additional belly capacities will comeon stream from Lufthansa's introduction ofpassenger flights to Busan (South Korea) andextra frequencies to Caracas, Denver andShanghai.

The airline has also raised frequencies to

Dallas from twice to thrice weekly. Theadditional service is on Wednesdays. SaoPaulo will be served by six flights weekly fromFrankfurt, the extra service is on Mondays.

Frequencies to Shanghai

will beincreased from eightto nine weekly, with the addition to thetimetable of services on Fridays. Changes arealso forthcoming in traffic days to LosAngeles. In the summer flight schedules, LosAngeles will be served twice weekly - onWednesdays and Saturdays.

Lufthansa Cargo has, moreover, operating

scheduled flights in summer to and fromLahore in Pakistan. These services will be laidon ex Frankfurt, on Tuesdays and Thursdays, incombination with Bangkok. New in thetimetable is a direct connection from Cologne

through East Midlands to Wilmington.This service will be operated within

the framework of the existingintercontinental joint venture with DHL.

Of interest to cargo customers are theincreased frequencies in passenger flights toCaracas, Denver and Shanghai as well as thenew passenger services offered to Busan incombination with Seoul. The aforementionedconnections will be flown by the AirbusA340. The summer timetable is valid from25 March to 27 October 2007.

Lufthansa declares summer schedulesCT Bureau

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SHIPPING: Now faster to market, better for business

When it comes to global trade, ifyou're trying to catch up, you'realready behind. To keep trade

flowing, it's all about staying in front, andsetting the pace. From innovative solutionsto creative flexibility, shipping is developingnew opportunities along the entire logisticspipeline to ensure your business doesn't justkeep it, rather it stays ahead. Way ahead.Opportunity, flexibility, innovation. Shippingdelivers it all. In the world of trade, do notjust keep up; set the pace. Always," says ashipping journal.

Business had always been advised tokeep pace to catch up trade. But here thejournal advises to set pace ahead, givingreference of shipping which has nowofferings of a quality combination:opportunity, flexibility, innovation.

Days were that shipping was thought ofreaching the market late. Today, thecombination quality said above leads themode to offer to reach the market faster,with high economy of cost that is better forbusiness. More than ever before. And,containerisation takes full credit.

Towards meeting the mounting tradedemands, liner shipping operators haverealised the absolute need of direct sailingsavoiding transshipments at any other ports inbetween, thus reducing the transit times andcutting the cost. Sequel to this, vividly, feederservices are now increasingly changing tomother vessel services, offering directconnection from port of origin to port ofdestination, redefining the pace of oceanfreight transportation. That is, helping thebusiness immeasurably to reach the marketfaster.

With this end in mind, ocean carriers,particularly leaders in global shipping, investin offering greater reach and service network

than ever before. Ordering high-capacitystate-of-the-art containerships to delivermore of the world to more of the world,enhanced partnerships, researching for newroutes, establishing improved reliability,safety of cargo, glass pipeline, transparentinformation technology and a perfectteamwork and commitment are some of themeasures taken by shipping majors to providethe right solution to customer.

And, seaports around the world havegeared themselves up to cope with thischanged trend. India is no exception.

Ocean carriers have also realised the needto grasp a better understanding of their costs,so that more service-based pricing packagescould be implemented. They also understoodthat it is time for them to take the initiative,and decide where in this industry they wantto be positioned. They want more to be atthe value end of the chain, offering seamlessdoor-to-door services, plus offering transportadvice, etc. to their customers, rather than

offering a no-frills, port-to-port operation.This approach allows the global shippingindustry to develop premium pricingprogrammes and the ability to foster deeperrelationships with clients as mutually agreedservice packages are developed.

Besides, joint forecasting and trendanalyses, etc. have also helped plan a moreefficient supply chain strategy and, hopefully,more consistent profits. And for both carriersand customers, such an approach are leadingto that common goal of pricing stability,which, in almost 150 years in the past, theliner conference system has not provided ona long-term and consistent basis.

The power of reaching faster to themarket was driven by the dynamism calledcontainerisation. A research to find out theadvent of containerisation in the West hasled to a conclusion that the departure of thefreighter Ideal X in April 1956 marked thebeginning of the era of container inworldwide transportation. This first 'container

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ship' delivered 58 containers from Newark toHouston, Texas. The inventor and transportentrepreneur Malcolm McLean is being hailedas the father of containerisation ever since.The concept of containerisation gave abreakthrough from the conventional andsometimes complicated business oftransporting general cargo to a complete newera of transporting goods stuffed in aconvenient, standard size steel box, whichlater created an idea to deliver goods door-to-door.

India PerspectiveAs usual, India caught the concept late

… yes, it was after 1970. And, Port of Cochinon the west coast of the country handledthe country's first container from APL vessel,with the help of ship's derricks and unloadedon to the wharf and empty containers werestuffed at the quay itself.

Shipping occupies a pride of place, aprime position, among the four major modesof cargo transportation. This crucial mode oftransport is fully recognised as the keycontributor to any country's economicprogress. In India shipping is placed at animportant infrastructure. See this part of thereport submitted years back by the ExpertGroup on Commercialisation ofInfrastructure Projects headed by RakeshMohan, director general, National Council ofApplied Economic Research. The reportbroadly classified that any sector of thenational industry that contributes towardsaccelerating the overall economic growthwith a view to achieving the targets set forGDP growth and industrial growth ratesqualifies as an infrastructure of the country.The group made detailed examination of allsectors of Indian infrastructure, andconcluded that shipping plays the stellarrole in Indian economy.

In India, over 95 per cent of cargovolume moves by sea. Consensual approachto economic liberalisation, government'slatest attention focusing on infrastructureinvestment, privatisation and huge FDI flowsare some of the factors fuelling containershipping growth in India. These factors areperceived as a sustainable model ofeconomic modernisation.

India's exports are moving up the value

chain, that is the country today offers achanged export mix, changing with highervalue goods such as hi-tech,pharmaceuticals, engineering goods,automotive spares, textiles, garments and

cotton made-ups that are growing at afaster pace than resource and agriculturalproduces. And, for the shipping lines thischange of mix of cargoes result in furtherunitisation of country's general cargo trades,which stands currently at 45 per cent to 48per cent.

Entry of foreign entities in domestictrucking and warehousing generateoperating and cost effective services andcomplete package of cargo transportationand door delivery. Connectivityenhancement through widening of 15,000kilometres of National Highways from 2-lane to 4-lane, 16,500 kilometre fromintermediate to 2-lane, and around 25,000kilometres of State Highways to 2-lane havetogether speeded up transport and reduced

transit times. Liberalisation of rail serviceshas ended Concor's monopoly and some 14private players are set to enter into railcontainer transport. Cold chaininfrastructure has improved throughfinancial concessions for investments incold storage, distribution facilities andperishables transport services. All these givedefinite signals to strengthening theshipping industry, to meeting the needs ofcustomers and finally leading to highergrowth of transport and trade.

These all have a major effect on theintermodal system. Having shipping as thesole provider of the system, with the helpof rail and road, the world of trade has

seen complementary relationship betweenseller and buyer. The growth of intermodalsystem later developed into more dynamicmultimodal system, which encompasses airtoo. And, that has improved the access forbusinesses to export and import theirproducts throughout the world.

In this environment, it is definitely be acase developing to a stage that the shipping,a major segment of logistics, is moving toan ultimate goal from shuttling boxes port-to-port, to position the companies at thevery highest-value operators, or (with asmall correction), partners in business, thatsit alongside, even inside, the shippers' orconsignees' international transportdepartments, and manage everything fromsite of production to point of sale.

Connectivity enhancement throughwidening of 15,000 kilometres ofNational Highways from 2-lane to4-lane, 16,500 kilometres fromintermediate to 2-lane, andaround 25,000 kilometres of StateHighways to 2-lane have togetherspeeded up transport and reducedtransit times.

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India has credibility as the seventh largestand second most populous country in theworld. In terms of largest economy, India

holds the rank of fourth, and among thefastest growing economies, according toBRIC. On April 13, 2007, India's foreignexchange reserve touched US$200-billionmark from US$175.44 billion in December2006, and aims a GDP growth rate of 10 percent. During the Seventh Five Year Plan,2007-2012, the country has projected aninvestment of US$320 billion ininfrastructure.

The country has a richmaritime tradition. Around95 per cent ofexport/import trade byvolume (70 per cent byvalue) moves by sea.Currently, India has 12major ports and 184 non-major ports dotting the7,517 kilometre coastline.During 2005-06, Indian portstraffic has registered 568.93 million tonnes,out of which major ports' traffic contributed

up to 74 per cent and non-major ports up to 26 per cent.Total traffic growth stood atthe rate of 9.10 per cent.

At major ports in India,growth of total containertraffic during 1995-2006 wasat an average rate of 14.09 percent, and transshipment trafficat 37 per cent, according to

sources in Indian Ports Association.In FY2005-06, all major ports of India handleda total container traffic of 4.613 million TEUs.


Emerging opportunities in Indian maritime trade

Sudhir S. Rangnekar

Sudhir S. Rangnekar

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Looking at the port wise container trafficduring 2005-06, JN Port on the west coaststands at first with a total of 2.668 millionTEUs (59 per cent of the total TEUs), followedby Chennai with 734,000 TEUs (16 per cent).Third comes Tuticorin Port on the east coastwhich has registered 321,000 TEUs (7 percent) of traffic in 2005-06. Since 2002-03,JN Port and Chennai Port together handledover 75 per cent of the total container trafficat major ports. India's container growth ratebetween year 2000-01 and 2004-05 recordedan average of 14.47 per cent.

Speaking about the future potential of container traffic, by theyear 2011-12, the total will hit 11.98 million TEUs, and will exhibit agrowth rate of up to 70.69 million TEUs by 2021-22.

Container port volumes in the world are driven by continuedglobalisation and fuelling pursuit of most economical and competitivemanufacturing. Production centres of major industries are shiftingtheir bases beyond their national borders. Emergence of high growthmarkets such as China, India, South Korea, etc. are spawningnumerous alternative routes and secondary ports. Currently, the worldhas over 250 gateway ports and six major transshipment hubs - Busan,

Kaohsiung, Hong Kong, Tanjung Pelepas, Port Klang and Singapore. In recent times, India has taken major initiatives for augmenting

port infrastructure. The projected traffic at major ports is bound torise from 423.40 million tonnes to 705.84 million tonnes in 2013-14.Initiatives taken by India include raising the port capacity from thepresent 397.50 million tonnes to 917.59 million tonnes envisagingaddition of 528.09 million tonnes under National MaritimeDevelopment Programme (NMDP).

Some 219 projects for port development, including construction ofjetties, berths, etc, addition of new equipment, channel deepening, portconnectivity and related schemes, are being finalised, at an estimatedcost of Rs 60,339 crore (US$13.412 billion), besides private participationwith an investment of 39,239 crore (US$8.72 billion). A comprehensiveModel Concession Agreement (MCA) has been developed for buildingand operating terminals on BOT basis. The government has initiatedbusiness planning exercise in all major ports for identifyingdevelopment strategies, hinterland connectivity requirement andinvestment outlays.

A dedicated freight corridor costing Rs 22,000 crore (US$4.89billion), the single largest infrastructure project, and laying of heavyhaul railway lines along Golden Quadrilateral are among key projectscurrently finalised by government. Allowing private players now in railcontainer transport, NHDP port connectivity projects, including SPVsbetween port trusts and private companies are some of the keyfeatures the government has included in the schemes focusing on thedevelopment of the country's logistics infrastructure. And, RVNL's 21projects at a cost of Rs 5,700 crore (port connectivity, hinterlandconnectors) cover 13 ports.

India ranks among the fastest growing economies of the world.The nation's political stability; the clarity in policy planning,implementation and regulatory framework; sound financial andbanking system; fair and equitable judicial system; skilled and costeffective manpower; proactive and creditable maritime administration;focus on accelerated development of shipping, ports and logisticsinfrastructure; and government support for PPP (public-private-participation) together make India a preferred destination for maritimeactivities, professions and business.

(A veteran and an authoritarian in international shipping and ports, widely travelled Sudhir S. Rangnekar is director, The Shipping Corporation of India.)

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India loses about 35 - 45 per cent of the harvested fruits and vegetables during handling,storage, transportation, etc. a loss estimated at Rs 40,000 crores per year. India wastesfruits and vegetables every year equivalent to the annual consumption of the United

Kingdom.Post Harvest 2007, the second international summit on logistics, storage, packaging

and marketing of fruits and vegetables in India, which was held from April 23 to 25 atPragati Maidan, New Delhi, was successful to create awareness among the manufacturersand exporters about the need of post harvest management of fresh produce by usingemerging techniques. India, the second largest producer of fruits and vegetables in theworld, aims to double its horticulture production to 300 million tonnes by 2012.

According to the officials of Unitech Exhibitions, the organisers of the event, the three-day long convention and exhibition brought together for the first time in Asia, technologyexperts, equipment suppliers, service providers and the beneficiaries under one roof toensure a comprehensive growth of technology and markets.

Post Harvest 2007 creates awareness about operations

Radharamanan Panicker, CEO, Cargo Service Centre India at Post Harvest 2007

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Kale to provideCSP-AMBER solution to SAS

SAS Cargo and Kale Consultants haverecently announced the signing of acontract to implement Kale's CSP-

AMBER cargo revenue accounting solution.The solution will be hosted by KaleConsultants from India.

According to Peter O'Sullivan, head ofcargo and logistics practice, KaleConsultants, the contract pertaining tochoosing the CSP-AMBER revenueaccounting solution by SAS Cargo is relatedto as much about the strength andflexibility of the software as it is of Kale'sdomain knowledge and expertise in therevenue accounting arena. "SAS Cargo

wanted a supplier thatunderstood its business, andcould provide a solution thatwould exactly match itsrequirements. That is what wewill deliver," claimedO'Sullivan.

Commenting on theagreement Kenneth Marx,president and CEO, SAS Cargosaid, "In order to remaincompetitive we have gone through aprocess where we examined every aspect ofour business, and this included back-officefunctions such as revenue accounting," He

further added that tojustify change the airlineneeded a solution thatwould offer substantialimprovements in terms ofoperational cost savingsand financial accuracy andflexible enough to supportthe varied accountingdemands of its affiliatedcarriers and partners. "We

also wanted a solution that was proven inthe marketplace and supplied by a companythat we felt would deliver on its promise,"he went on.

Peter O'Sullivan

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It is only with the USA that India enjoys total Open Skies, whichshows that India wants to take the US-Indian relationship to a muchgreater height. India presents an investment opportunity of about

US$120 billion of which about US$40 billion would be for upgradingthe infrastructure. India and the USA have a totally liberalised AirServices Agreement. A revised Air Transport Agreement between Indiaand USA was signed on April 4, 2005 replacing the earlier Agreementsigned in 1956. The basic features of the agreement include:• Multiple designation of airlines i.e. either side can designate anynumber of airlines. • No restriction on frequency/capacity. • Norestriction on point of call, i.e. airlines of either country can operateto any point in the territory of the other Contracting State. • Norestriction on the exercise of 5th freedom traffic rights through anyintermediate point and to any beyond points. • No restriction oncargo flights i.e. either side can operate any number of freighter servicesto any airport in the other country. • Traffic from one aircraft can

be transferred to another aircraft at any point on the route. • Airlinesof both sides can code share with other airlines as well as domesticairlines of the other country. The designated airlines and their currentoperations are: • Air India, Indian Airlines, Jet Airways and Air Saharaare the designated airlines of India to operate on India-US route. •Delta Airlines, Northwest Airlines, American Airlines, Continental Airlinesare the designed airlines of USA. • Presently, the four US carriers viz.Delta Airlines, Continental Airlines, American Airlines and North WestAirlines are providing a total of 28 services per week and Air India isalso providing 28 services per week in India-US route. The direct flightsof Continental, Delta and American airlines have commenced aftersigning of the revised ASA. • Jet Airways, will also commenceoperations on India - US sector very soon.According to Praful Patel, minister for civil aviation, government ofIndia, during last three years the US-India relationship in civil aviationhas been building on a new note and partnership which will be everlasting. Aviation, he said, is a catalyst in bringing about integration ofall countries of the world. While inaugurating the India-US AviationPartnership Summit recently held in New Delhi Patel also stated thatIndia for the next ten years would enjoy a compounded growth of about 25 per cent in the aviation sector, which would be sustained forthe next 10 to 15 years.The Summit was designed to promote trade, shared technical manageri-al and strategic planning approaches to adept integrated automatic airtraffic control and management systems focusing on safety, capacity,efficiency and security for future air transport systems. Also present atthe summit were Marion Blakey, administrator, Federal AviationAdministration (FAA), Ashok Chawla, secretary, civil aviation, governmentof India and Leocadia Zak, deputy director of the US Trade andDevelopment Agency (USTDA).A Memorandum of Understanding (MoU) was also initialed at theSummit. It was signed by RK Singh, the joint secretary, ministry of civil aviation and Leocadia Zak on behalf of the Indian and US governments respectively.

MoU signed between India and USA

Praful Patel lighting the inaugural lamp of India-USA Aviation Summit

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March 27 marked a red-letter day.Forbes Patvolk, the shipping divisionof Forbes Group of Shapoorji

Pallonji, kicked off the official opening of itsfirst CFS at Village Veshvi, widening the port-based infrastructure advantage of ForbesPatvolk being extended to customers by thisISO certified group. N Sasidharan, chiefcommissioner of Customs, inaugurated theCFS.

Forbes' placing of this single-point, state-of-the-art facility for all service andcontainer movement assistance in the vicinityof the country's fastest growing seaporteffectively demonstrates its customerconfidence in the capability of the companyto handle its high growth in container trade."It only represents our commitment tocontinuous improvements that allow forexpanded services to customers," said Capt. SP Rao, director, Forbes Patvolk.

In an interview given to CARGOTALK, hesaid, "At Forbes Patvolk, staying ahead of thegrowth curve includes sharing industry-bestpractices through such facilities as we providenow. With the exponential growth of JN Port,which now grows fast as the major link inthe country's ocean logistics, facilitating theflow of containers involves a system that isintricately woven. Our new CFS at Veshvi

Village, off JN Port, has anexpansive system to connectthe country's busiest port."

What had promptedForbes Patvolk to enter intothis complex businesssegment of container trade?"It's our visionary thinking,"pat came the reply. "ForbesPatvolk has strategic planningand combined, perpetualefforts with all local and central agencies toredefine the pace of trade by providing thecustomers with flexible options andopportunities for container movement."

Asked him to brief on the salient featuresof the CFS, Capt. Rao said, "We havemaximised the facilities with ingredientsnecessary to continue our business now aswell as ten years from now."

Forbes Patvolk CFS is situated in a hugearea of 17 acres. A vital link to JN Port, theCFS has a covered warehousing area of 7,000square metres for export and import cargo,besides a bonded warehouse. The containerstack area has a capacity for 5,000 20-footers. Reefer points facilitate safe storageof refrigerated containers. State-of-the-artequipment are deployed for handling cargoand containers. The CFS is EDI-connected

with Customs.Computerisedelectronicweighbridge with acapacity of 100tonnes is anadditional facility.Public address system,24x7 alert securityand a dedicatedcustomer service andgrievance cell areother value-addedfeatures.

“From the users'

perspective, they havereasons to be impressed withthe CFS,“ Capt. Rao added.

To a question on servicesto customers at the CFS,Capt. Rao said, "We provideempty storage yardadjoining to the CFS for alltypes of ISO containers. Theyard has facility for repairs,washing, cleaning and pre-

tip. Our IT capability is latest and offersonline track-and-trace for cargo andcontainers as well, besides offerings ofinformation on tariff, assessment, invoicing,vessel schedules, cargo palletising, chokingand lashing. Highly experienced staff andofficers are manning the CFS. Canteen forusers and staff, and rest rooms for drivers,office space for users with lock facility,fumigation service and measurement servicethrough licensed measurers are a few suchservices that the CFS offers. Bank and petrolpump are available within a stone's throw ofthe CFS."

Speaking about the significance of thelocation Capt. Rao said the Forbes PatvolkCFS at Veshvi is located close to NH No. 4B,offering easy access to city andmanufacturing units of companies. The closeproximity of the CFS to JN Port maintains anadvantage of time saving and becomes morecost effective. "This facility will improveaccess for JN Port-based businesses to importor export," Capt. Rao added.

Positioning itself as the option ofcustomers, the CFS is a hub-based commonuser facility with public authority status. Thekey integral component of the internationalsupply chain offers handling and temporarystorage of import and export containers,laden and empties, ultimately representingForbes Patvolk's strong commitment tocontinuous improvements that allow forexpanded service profile.

Capt. S P Rao

Forbes Patvolk unveils state-of-the-art CFS

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March 27, 2007 was a day when the family of Forbes Patvolk hit the roof with the unveiling of its CFS through a galaxy of events atvillage Veshvi which was inaugurated by N Sasidharan, chief commissioner of Customs.

Forbes Patvolk’s new CFS at Veshvi


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Emirates Shipping launches 2 new services

On April 13, Emirates Shipping Linelaunched two new services, Gulf-Indian subcontinent-Africa Service

(GIA) and Africa-Far East-Asia Service (AFA).Vikas Khan, chairman and CEO, EmiratesShipping Line, told CARGOTALK during aninterview in Mumbai that the new GIAService offers a direct scheduled weeklyservice from the Indian subcontinent and theMiddle East to East Africa, providing one ofthe best transit times to East Africa.

Asked about the port rotation, Khan saidthe GIA Service covers Nhava Sheva (of JN Port),Karachi, Jebel Ali, Mombasa, Dar es Salaam,Mombasa and Nhava Sheva.

Khan added that the AFA Service connects

the orient to the two majorports in East Africa, with besttransit time from China andSouth East Asia to East Africa.

To a question on portsserved by AFA Service, Khanreplied that Xingang, Qingdao,Shanghai, Ningbo, HongKong, Singapore, Port Kelang,Colombo, Dar es Salaam andMombasa are ports coveredby AFA. "This service will use a combination ofEmirates Shipping Line's Hyper Galex Service andAFA Service over Colombo."

To make these services operationallyeffective, six vessels of 1,100 TEU each nominal

capacity will be deployed. Theservice will operate with TS Lineas partners, with latter providingone vessel, and EmiratesShipping Line providing five.

"These two services signify afurther commitment of EmiratesShipping Line as we expand ourservice portfolio to better serveour customers' needs. Our newservices announced now target

the high growth areas in East Africa which areimportant to our overall strategy. By offering acomprehensive network of reliable services, weare responding to the needs of our customerbase," Khan added.

Vikas Khan

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Since over six decades now, AFL remains a specialist in airfreight,express and logistics. The pioneering conglomerate includesseafreight too in its service basket to offer to its customers

worldwide. What is Detlev's experience in ocean freight industry inthe context of mounting competition from air mode of cargotransportation that provides the advantage of time-definite deliveryto reach the commodity first to market?

Detlev replied, "Air and ocean modes do not compete with eachother for the same cargo. Airfreight is the preferred mode transportfor shippers whose cargo is very valuable, perishable, (and, in away, high-fashion garment could be considered 'perishable' if theymiss their 'season') or crucial to manufacturing or other processesin a way that makes the comparatively high cost of airfreight asecondary consideration. Everything else moves by seafreight."

"The skill inoptimising the supplychain rests in the abilityto provide robust,

transparent and

time-defined deliveries by deploying all available means and takinginto consideration the time/cost requirements of the customer."

Incidentally, this exclusive interview of Detlev Janik given toCARGOTALK is the first after he took over as CEO, AFL Dachser.

AFL Dachser is offering FCL, LCL, direct, breakbulk andconsolidation among various other services through thecombination network of AFL and Dachser across the globe. Withan extensive global network and infrastructure coupled withadvanced IT capability, how does the company claim a lower supplychain cost? "Supply chain is a function of cost and time. Value iscreated through proper supply chain visibility with the help ofadvanced technology in place. Since services are intangible, thereare consequential advantages that a customer gets when heexperiences seamless and well-timed flow of information. ITcapability uncovers and removes hidden cost drivers from thesupply chain and foster better production planning which leadsto reduced order cycle times and inventory levels and ensuresefficient distribution, thus optimising the overall supply chaincost."

"At AFL Dachser we pride ourselves in being able to identify,understand and crystallise our customer's supply chainrequirements and offer economic solutions to match."

AFL Dachser has developed expertise and skill in ODC handlingand project transport. Asked him to elaborate how does thecompany simplify this complex segment? Dachser said, "AFLDachser has decades of experience in handling ODC shipments andproject cargo in various industry sectors like petrochemicals, powerand energy, industrial plants and infrastructure projects whichincludes relocation as well setting up of green field projects. This

Air and ocean modes do not competewith each other: Detlev Janik

Detlev Janik

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involves various complex and time-boundlogistics services starting from expeditingorders placed with suppliers, materialmanagement at project warehouses to thefinal delivery at the project destination. Ourteam of experienced professionals works outevery single detail and takes strategicpreventive measures to ensure undisruptedand efficient management of all theseactivities. Our ground operations staff provideefficient supervision for airport/port handlingand ensure that all the process of lifting,stowing, lashing, securing and loading/off-loading are synchronised to the completesatisfaction of the customer."

Our next question: "You have extensiveexperience in airfreight and relatedinformation visibility. Do you find anysignificant technical difference in providingend-to-end supply chain visibility to yourseafreight customers? Detlev replied, "Supplychain visibility is essential for every customerwhether it is air or ocean. In airfreight, the

flow of information is precise, fast anddynamic to meet customers' requirements,while in ocean the flow is steady, morespecific and detailed and sets of informationare provided at various steps throughout thesupply chain. At AFL Dachser, our experiencedcustomer service staff is in continuous touchwith the customer in order to provide updatesstarting from pre-alerts notification, routinginstructions, confirming vessel loading anddeparture to generating customer statusreports that include shipping information suchas container number, vessel name, departureand arrival time, and delivery confirmation.Exceptions and delays are highlighted andcommunicated to expedite the shipments. Weare also setting off track-and-trace facility inintegration with our vendors and globalpartners to synchronise their supply chainfrom end to end."

Shippers generally believe that with theadvent of containerisation, improved nautical-mile speed of modern vessels, increasing direct

liner services and direct port of calls, reducedtransit times and above all comparative lowerfreight cost, ocean cargo industry is giving atough fight to air cargo industry. Asked Detlevto comment, he said, "Again, air and oceanmodes of transport do not compete for thesame cargo. No doubt, for ocean cargo, therehas been reduction in transit times and freightcosts. But given the fact that improvement intransit time with respect to ocean is in dayswhile for air it is in hours, there are differencesand will continue to have. A service that takesten to 20 days of variability out of the supplychain has a huge effect on inventory levels,cycle times, and product availability. Airfreighthas always benefitted from unforeseen supplychain problems and at present airfreight ratesare also relatively low if compared with thoseprevailing a decade back. And, as I mentionedearlier, the selection of the transport mode isbasically determined by the need of theshipper (time/cost) and the nature of thecommodity."

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What is most gratifying from the users' perspective is thatvirtually all these features of development identify theport's goal to initiate as main drivers behind India's total

economic progress into the current century. Extending an iron

hand forstrengthening thecountry's economicgrowth is not only theattractiveness of thismost competitiveglobal hub, but isthe most desirableside effect.

And, theguiding spiritbehind theoverall development is A Janardhana Rao, chairman who ispositioning Kandla Port to face up to the new challenges emergingin the Indian maritime market.

"Sustained growth in business performance and cargo volumesat Kandla Port have led to the need to continually expand andoptimise the port capacities," said Rao in an exclusive one-to-onewith CARGOTALK It is in this context that he reiterated to say port-related services, upgrading the internal infrastructure andenhancing capacities remain the most important area ofdevelopment. By expanding capacities and extending the portlogistics services, Kandla Port is effectively serving the users whileparticipating in the global maritime transport flow.

Optimally located in terms of international ocean transport geography at the intersection of India-MiddleEast-Europe, Kandla Port is also the main gateway to the Northwest India and accesses a vast hinterland of over 1 millionsquare kilometres. The history of the port owes its origin to year1930 and to have commissioned in 1931.

The port was declared as a Major Port on April 8, 1955. "Fifty-two years now as a major port. I have an ambition to push upthis port to handle 80 million to 100 million tonnes of cargo ina decade from now. Currently, it handles some 46 million tonnes,"

Kandla Port set for robustdevelopment

A port-based SEZ; a state-of-the-art private sector container terminal; exclusive bunkering facil-ity; deepening the draught up to 14 metres; a mega-international ship repair and shipbuildingcomplex; four new dry cargo berths; a new satellite port; barge handling facilities; four newwarehouses; large Custom bonded open storage area; new road and rail connectivity; convertingthe Gandhidham-Kandla meter gauge rail line into broad gauge; direct road and rail access intoberths No. 11 to 16 are some of the robust development plans initiated lately by Kandla PortTrust.

A Janardhana Rao

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Rao said with a clear foresight. DuringFY2005-06, all 12 major ports togetherregistered a total throughput of 423million tonnes of cargo.

In order to meet the challenge ofgrowing traffic, Kandla Port Trust isaugmenting the capacity through variousschemes at an investment of Rs 5,081crore. When asked about the fund, Rao saidthat India is now attracting excellent FDI."Many ports are availing this facility.Kandla is also venturing into privateparticipation for setting up a containerterminal, which does transform Kandla Portinto a global hub of the new millennium."

Speaking on the port's performance,Rao said, "In 2005-06 Kandla achieved45.91 million tonnes of total throughput,as against 41.55 million tonnes recorded in2004-05, a rise of 10.5 per cent YoY. Totaltraffic has thus exceeded the ministry'starget by 2.07 lakh tonnes. In the currentFY2006-07, up to February, 2007 KandlaPort registered a total tonnage of 47.57million tonnes."

What are the advantages the portoffers to shipping lines? There is a list. Raoexplained, "Kandla is an all-weather port.The tropical and dry climatic conditions atthe port are perfectly getting well withvessel docking. Temperature and scantyrainfall enable round-the-year non-stop

operation. Situated in the creek and so asheltered harbour facilitates the port thatit never experiences any adverse waveeffect. Above all, among all Indian majorports, Kandla is the nearest to the MiddleEast and Europe."

To a question on the future strengthsof the port, Rao replied, "Kandla has gothuge potential for development of shiprepair and shipbuilding complex, as numberof ships calling at the port are increasingby leaps and bounds. As the port is locatedjust 90 kilometres from the mouth of Gulfof Kutch opening out in Arabian Sea, it canbe the most ideal location for setting upa comprehensive shipyard. We arepreparing to call for global tenders todevelop a mega-international shiprepair/shipbuilding complex. The proposedshipyard will have all salient featuresincluding a capacity to repair/build VLCCof 3 lakh DWT. The shipyard will have a

large back-up area and a repair jetty forrepairs afloat. Cost of the project isestimated at Rs 400 crore."

Currently, Kandla Port has 12 berths instraight quay line with a length of2,528.32 metres and six oil jetties with acapacity of 12 million tonnes for liquids.

An agreement for BOT was signed byKandla Port Trust with ABG HeavyIndustries on June 23, 2006, for developinga state-of-the-art container terminal.Initial handling of containers at containerterminal (Berth No. 11) started in January2007. When fully operational, the terminalwill provide a capacity for handling 6 lakhTEUs per annum.

Among other features of the port,Rao said, “Two single point moorings; atotal of 183.3 hectares of Custom bondedport area inside the Customs fencing; onedeep draught mooring and four cargomoorings in the inner harbour area;covered storage capacity of over 2 lakhtonnes inside port area for dry cargo; openstorage capacity of 7,60,330 tonnes insidethe port; liquid storage capacity of9,80,508 KLS to handle A, B, C, LG, NH andEO classes of liquid and chemicals.”

The port offers a range of equipment.Besides other handling equipment, modernlevel luffing wharf cranes of highercapacity, from 16 tonnes to 25 tonnes andseven weigh bridges, capacity from 40tonnes to 50 tonnes bollard pull Tugs areamong the list of port's equipment.Facilities for barge handling are available.Kandla Port is well connected to NH-8Aand broad gauge rail line.

With pro-active professionalmanagement, Kandla Port has a transparentand productivity-oriented berthing policy,and maintains peaceful industrial relationsand disciplined workforce. The CISF-controlled gate entry system, inspectionand monitoring have made Kandla theexclusive high security zone.

What about cost and port charges? Raosaid, "We adopt a transparent pricingpolicy. Kandla offers the lowest cost pertonne among all Indian major ports. Ourmost economical port charges constitutethe major strength of this port."

An agreement for BOT was signedby Kandla Port Trust with ABGHeavy Industries on June 23,2006, for developing a state-of-the-art container terminal. Whenfully operational, the terminal willprovide a capacity for handling 6lakh TEUs per annum.

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The parent company Gateway Distriparkshas a functional ICD at Garhi Harsaru. Theproposed JVC will be developing the

terminal on a 75-acre area to make it adouble-stack container terminal with a railhandling and transshipment facility, an ICD,multiple CFS, warehousing complex and adomestic cargo hub. With its proposed state-of-the-art facility the terminal can handle20,000 TEUs after completion. In an interviewwith CARGOTALK Sachin Bhanushali, presidentand Amit Kumar, senior vice president,GatewayRail unveiled the plans of thecompany.

"We aim at consolidating the cargovolumes of North India for double-stackcontainer train operation on diesel route fromNCR to Mundra and Pipavav. Garhi Harsaruterminal will have connectivity to theproposed western dedicated freight corridor. Itwill also be connected to the proposedKundali-Manesar-Palwal (KMP) Expressway,"Bhanushali said. GatewayRail will have 51 percent shareholding in the proposed JVC. Thecompany is a 'Category 1' license holder ofIndian Railways as a Container Train Operatorand operates the ICD and CFS at Garhi Harsaru.

With a sound client base which includesAmira Foods, Asahi India, GE Motors, SonyEricsson India, Hema Engineering, Hero Honda.Maruti Udyog, Hindustan National Glass,Mitsubishi Automotive, Nanika International(KAFF), Rico Auto Industries, Sona Group ofCompanies, Sunstar Overseas, Tilda Riceland,Whirlpool, etc. the company is looking forwardfor more traffic for Garhi Harsaru. "Thisterminal will be one of the best serviceproviders in North India with an area of about

90 acres. We have plans to expand the sitewith additional 80 acres of land. The double-stack container terminal will be fullyoperational by April 2008," Amit Kumar added.

The terminal will cater to the industrialarea of Gurgaon and Delhi in NCR; Bijwasan,Manesar, Dharuhera, Bawal, Hissar, Sonepatand Panipat in Haryana; Bhiwadi, Neemranaand Behror in Rajasthan; Laldu in Punjab andBaddi in Himachal Pradesh. "Apart from thehuge North Indian industry base we are going

to facilitate the export-import traffic from theproposed Haryana Special Economic Zone (SEZ)in near future," Kumar said. To facilitate theclients, the company has already beenproviding free shuttle service between theoffice of the commissioner, Central ExciseDelhi III, Udyog Vihar, Gurgaon and the ICDGarhi Harsaru.

To capture the market the Gateway RailFreight is planning for more terminals indifferent parts of the country. "We areplanning for four rail container terminal within the next 15 months. One at Asaoti nearBallabhgarh and the second one at Ludhianais under construction, where as things are inthe pipeline for terminals in South and WestIndia," Bhanushali said. Speaking about theUSP of his company he said, "We are not justa transporter. We always try to give ourcustomer a complete package. Our servicebouquet includes inter-modal container basedlogistics service, inland haulage by rail,warehousing, container cargo handling, lastmile connectivity, etc."

GatewayRail-CONCOR ink deal fordouble-stack container terminal

Gateway Rail Freight a subsidiary of Gateway Distriparks and government owned ContainerCorporation of India (CONCOR) have entered into an agreement to set up a joint venture company to construct and operate a rail linked double-stack container terminal at Garhi Harsaru,Gurgaon, Haryana.

IICCDD,, GGaarrhhii HHaarrssaarruu,, GGuurrggaaoonnTotal Available Area - 90 AcresTotal Developed Area - 18 AcresRail Yard - 6 AcresOpen Yard - 46,000 sq. mtrs.Export Warehouse - 1,500 sq. mtrs.Bonded Warehouse - 12,000 sq. mtrs.Reefer Points - Up to 60 TEU's

at any point of time

The GatewayRail team

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S. Airlines Export Export Total Import Total % ofNo. (UPL) Perishable Export Cargo Total

Cargo* Cargo

TOTAL ..................................................................13786.08 ............1675.32................15461 ................11279 ............26740

Cargo Handled in March 2006 ..................14321.17 ............1395.89................15717 ................10467 ............26184

% Variation ..........................................................-3.74%..............20.02%..............-1.63% ................7.76% ............2.13%

1 ................Lufthansa German Airlines ..............1464.67 ..................15.04 ..............1479.71 ................1601.24 ................3081 ................11.52%2 ................Singapore Airlines ................................1033.67......................0.00 ..............1033.67 ................1014.81 ................2048 ..................7.66%3 ................British Airways..........................................771.43 ..................29.10..................800.53 ..................797.15 ................1598 ..................5.97%4 ................Alitalia ........................................................727.69......................4.30..................732.00 ..................711.84 ................1444 ..................5.40%5 ................Air India......................................................309.46 ................495.48..................804.93 ..................589.24 ................1394 ..................5.21%6 ................China Airlines ..........................................377.70....................44.27..................421.97 ..................813.14 ................1235 ..................4.62%7 ................Cathay Pacific ..........................................467.74 ..................32.31..................500.05 ..................689.44 ................1189 ..................4.45%8 ................Korean Air..................................................488.12....................31.89..................520.01 ..................596.80..................1117 ..................4.18%9 ................Air France ..................................................679.19 ..................78.61..................757.80 ..................328.33 ................1086 ..................4.06%10 ..............Thai Airlines ..............................................366.67 ..................27.19..................393.86 ..................473.82 ..................868 ..................3.24%11 ..............Jet Airways ................................................459.31....................13.12..................472.43 ..................350.10 ..................823 ..................3.08%12 ..............Emirates Airlines......................................176.62 ................407.57..................584.18 ..................214.56 ..................799 ..................2.99%13 ..............Eva Airways Corporation......................313.10....................50.46..................363.56 ..................411.62 ..................775 ..................2.90%14 ..............Austrian Airlines ......................................387.87 ..................16.86..................404.74 ..................356.24 ..................761 ..................2.85%15 ..............Etihad Airways ........................................445.29 ................113.93..................559.22 ..................143.14....................702 ..................2.63%16 ..............Virgin Atlantic ..........................................460.86......................0.00..................462.53 ..................146.13 ..................609 ..................2.28%17 ..............Federal Express ........................................348.19......................0.00..................348.19 ..................165.27 ..................513 ..................1.92%18 ..............Qatar Airways ..........................................385.56 ..................28.43..................413.99 ....................54.63 ..................469 ..................1.75%19 ..............Malaysia Airlines ....................................142.40......................4.61..................147.01 ..................303.62 ..................451 ..................1.69%20 ..............Turkish Airlines ........................................290.20 ..................16.02..................306.22 ....................78.66 ..................385 ..................1.44%21 ..............Gulf Air ......................................................271.89 ..................55.28..................327.17 ....................11.99 ..................339 ..................1.27%22 ..............Japan Airlines ..........................................186.43......................1.82..................188.25 ....................94.86 ..................283 ..................1.06%23 ..............American Airlines ....................................157.70......................0.00..................157.70 ..................105.63 ..................263 ..................0.98%24 ..............Air Canada ................................................186.51......................0.00..................186.51 ....................75.28 ..................262 ..................0.98%25 ..............KLM Royal Dutch ......................................38.66......................5.99 ....................44.65 ..................211.90 ..................257 ..................0.96%26 ..............Saudia..........................................................236.91......................8.64..................245.54 ......................7.43 ..................253 ..................0.95%27 ..............China Eastern Airlines ..........................120.43......................0.53..................120.96 ..................123.77 ..................245 ..................0.92%28 ..............Indian Airlines ..........................................154.10......................0.00..................154.10 ....................86.48 ..................241 ..................0.90%29 ..............Asiana Airlines..........................................159.73......................0.24..................159.97 ....................54.41....................214 ..................0.80%30 ..............Continental Airlines ................................114.15......................0.00 ..................114.15 ....................36.77 ..................151 ..................0.56%31 ..............Biman Bangladesh ....................................66.11 ......................0.00 ....................66.11 ....................47.64....................114 ..................0.43%32 ..............Kuwait Airways ..........................................77.72 ..................19.15 ....................96.86 ....................16.32....................113 ..................0.42%33 ..............Air Mauritius ..........................................105.86......................1.09..................106.95 ......................4.36 ....................111 ..................0.42%34 ..............Aeroflot ........................................................95.37......................5.63..................101.00 ......................5.98....................107 ..................0.40%35 ..............Royal Jordanian..........................................80.66......................0.00 ....................80.66 ....................21.03....................102 ..................0.38%36 ..............Pakistan International..............................35.51......................0.00 ....................35.51 ....................63.44......................99 ..................0.37%37 ..............Mahan Air ....................................................79.45......................0.35 ....................79.80 ......................4.36......................84 ..................0.31%38 ..............SriLankan Airlines ......................................58.53......................3.09 ....................61.62 ....................12.63......................74 ..................0.28%39 ..............Uzbekistan Airlines....................................68.69......................0.67 ....................69.36 ......................0.65......................70 ..................0.26%40 ..............AeroSvit Ukrainian Airlines....................63.22......................1.67 ....................63.57 ......................2.73......................66 ..................0.25%41 ..............Royal Nepal Airlines....................................8.49......................0.00 ......................8.49 ....................50.96......................59 ..................0.22%42 ..............Ariana Afghan Airlines ............................53.21......................0.00 ....................53.21 ......................2.94......................56 ..................0.21%43 ..............Kyrgyzstan Airlines....................................49.78......................0.00 ....................49.78 ......................4.51......................54 ..................0.20%44 ..............Ethiopian Airlines ......................................40.68......................0.00 ....................40.68 ......................1.08......................42 ..................0.16%45 ..............Turkmenistan Airlines ..............................31.45......................0.00 ....................31.45 ......................0.03......................31 ..................0.12%46 ..............Air Astana ....................................................20.37......................2.71 ....................23.08 ......................0.84......................24 ..................0.09%47 ..............Blue Dart ......................................................15.98......................0.00 ....................15.98 ......................1.78......................18 ..................0.07%48 ..............Syrian Arab Airlines ....................................0.00......................0.00 ......................0.00 ......................0.00 ........................0 ..................0.00%49 ..............MIS..............................................................1112.77 ................159.28................1271.70 ..................393.85 ................1745 ..................6.53%

* Cargo Handled at Centre for Perishable Cargo


Airlines Handled by MIAL

Airlines Handled by AI

S. No.Airlines

Weight in Tonnes TotalExport Total Import Exp+Imp

General Perishable

1 ..........Cathay Pacific ....................................725.18 ....................0.00 ............725.18 ..........1605.20 ........2330.382 ..........Lufthansa ............................................717.74 ....................0.00 ............717.74 ..........1109.89 ........1827.633 ..........British Airways ....................................806.14 ....................0.00 ............806.14 ............575.95 ........1382.094 ..........Federal Express ..................................871.74 ....................0.00 ............871.74 ............430.51 ........1302.265 ..........Alitalia................................................407.50 ....................0.00 ............407.50 ............606.22 ........1013.716 ..........Air France ..........................................336.71 ....................0.00 ............336.71 ............338.99 ..........875.707 ..........Shanghai Airlines ..................................97.13 ....................0.00 ..............97.13 ............754.04 ..........851.178 ..........Swiss Intl. Airlines ..............................430.08 ....................0.00 ............430.08 ............392.08 ..........822.169 ..........Etihad Airways ....................................496.78 ....................0.00 ............496.78 ............319.34 ..........816.1210 ........Jet Airways ........................................248.04 ....................0.00 ............248.04 ............407.78 ..........655.8211 ........Austrian Airlines ..................................252.32 ....................0.00 ............252.32 ............330.71 ..........583.0312 ........UPS......................................................81.95 ....................0.00 ..............81.95 ............475.90 ..........557.8513 ........Virgin Atlantic ....................................351.15 ....................0.00 ............351.15 ............193.71 ..........544.8514 ........KLM Royal Dutch ................................253.51 ....................0.00 ............253.51 ............178.44 ..........431.9515 ........Saudi Arabian Airlines ........................275.31 ....................0.00 ............275.31 ..............14.27 ..........289.5816 ........Kenya Airways ....................................244.29 ....................0.00 ............244.29 ..............25.70 ..........269.9917 ........Gulf Air..............................................183.98 ....................0.00 ............183.98 ..............49.66 ..........233.6418 ........SriLankan Air ......................................158.03 ....................0.00 ............158.03 ..............50.29 ..........206.3219 ........Turkish Airlines....................................129.58 ....................0.00 ............129.58 ..............49.40 ..........178.9820 ........EL AL Airlines ....................................113.18 ....................0.00 ............113.18 ..............54.00 ..........167.1821 ........Pakistan Airways..................................135.37 ....................0.00 ............135.37 ................9.00 ..........144.3722 ........Qatar Airways ....................................102.77 ....................0.00 ............102.77 ..............13.73 ..........116.5023 ........Iran Air ................................................74.48 ....................0.00 ..............74.48 ................2.52 ............77.0024 ........Qantas ................................................28.61 ....................0.00 ..............28.61 ..............47.62 ............76.2325 ........Indian Airlines ........................................8.99 ....................0.00 ................8.99 ..............61.35 ............70.3426 ........Blue Dart................................................0.00 ....................0.00 ................0.00 ..............27.25 ............27.2527 ........Oman Air ..............................................1.01 ....................0.00 ................1.01 ................0.60 ..............1.6128 ........Eva Airways Corpn. ................................0.00 ....................0.00 ................0.00 ................0.25 ..............0.2529 ........Delta Airways..........................................0.00 ....................0.00 ................0.00 ................0.07 ..............0.0730 ........Das Air ..................................................0.00 ....................0.00 ................0.00 ................0.00 ..............0.0031 ........Others................................................215.48 ....................0.00 ............215.48 ............904.36 ........1119.84

........................TToottaall ................................................................................................77774455..0044 ........................................00..0000 ....................77774455..0044 ....................99002288..7722 ............1166777733..7766

........................TTPP CCaarrggoo ddeelliivveerreedd ........................................................................................................................00..0000 ........................................................................................................................331144..6644

(including TP Cargo)

Mumbai CSI Airport Export/Import Cargo TonnageHHaannddlleedd ffoorr tthhee MMoonntthh ooff MMaarrcchh 22000077 ((MMuummbbaaii AAiirrppoorrtt))

1 ..........Air India ..........................................1526.40 ..............1298.05 ..........2824.45 ..........1704.55 ........4529.012 ..........Singapore Airlines ............................1119.75 ..................97.58 ..........1217.30 ..........1337.14 ........2554.443 ..........Emirates ............................................761.60 ................460.45 ..........1222.05 ............543.41 ........1785.494 ..........Eva Airways ........................................479.24 ..................45.31 ............524.55 ..........1185.48 ........1710.035 ..........Korean Air..........................................378.21 ..................48.45 ............426.65 ............620.27 ........1046.926 ..........Thai Airways ......................................150.48 ..................31.02 ............181.50 ............353.00 ..........534.507 ..........Malaysian Airlines ..............................102.79 ..................21.89 ............124.69 ............301.16 ..........425.838 ..........Ethiopian Airlines ................................389.10 ....................2.17 ............391.27 ................0.72 ..........391.999 ..........Kuwait Airways......................................43.81 ................271.14 ............314.95 ..............30.51 ..........345.4610 ........South African Airlines ..........................287.38 ....................7.15 ............294.53 ..............42.51 ..........337.0311 ........Aeroflot ..............................................177.77 ....................0.00 ............177.77 ..............19.95 ..........197.7112 ........Air Mauritius ......................................134.05 ....................0.62 ............134.67 ..............33.47 ..........168.1413 ........Yemenia Airways ..................................36.17 ..................90.64 ............126.81 ................0.34 ..........127.1514 ........Egypt Air ..............................................88.39 ..................34.01 ............122.40 ................1.75 ..........124.1515 ........Royal Jordanian Airways..........................8.05 ....................0.00 ................8.05 ................3.15 ............11.20

........................TToottaall ((BB11)) ................................................................................55668833..1188 ............................22440088..4455 ....................88009911..6633 ....................66117777..4411 ............1144226699..0044

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Emma is 'Ship of the Year' Maersk Line's flagship Emma Maersk won ‘Ship of the Year' title at the Lloyd's List awards inLondon on March 30. The prestigious awards, hosted at the Natural History Museum, were votedfor across the industry and confirm that Emma Maersk has set new standards in innovation,environment and safety for Maersk Line.

Flemming Dalgaard, managing director,Maersk Line, UK said from his Londonbase that the award from Lloyd's List

is a great honour. "Emma Maersk is a truesymbol of the industry leading innovationsthat Maersk Line seeks in order to provideour customers with the best possibleservice."

Giving details on Emma Maersk,Dalgaard said that the vessel is one of theeight currently under construction with thefinal one due for delivery to Maersk Line inJanuary 2008. Emma Maersk was christenedin August 2006 at Odense Steel Shipyard,Denmark. At 11,000 TEU, Emma and its sistervessels are the largest container vessels inthe world.

"As one of the most environmental-friendly container vessels ever built, the PS-class vessels, to which Emma Maerskbelongs, have an advanced energy efficiencysystem, waste heat recovery system and anelectronically controlled engine. The vesselhas features that contribute to feweremissions through a reduced total fuelconsumption of up to 10 per cent." Inaddition, the hull is painted with a biocide-freesilicone-based antifouling paint. "Thisinitiative reduces the impact on the marineenvironment and is expected to lower fuelconsumption as well. Theinboard

protected fuel tanks are a preventiveinitiative that guard against the possibility ofoil spills," Dalgaard added.

While shipping continues to be the mostenvironmental-friendly form of transport,Maersk Line has consistently innovated andimproved both the technological andenvironmental performance of its vessels,Dalgaard observed.

"Constant care is our approach tobusiness, and is part of a proud

heritageinheritedfrom our

founder,"Dalgaard said

adding, "It is aphilosophy that our

employees work hard to continuewith to this day and Emma Maersk

embodies this approach with all of hertechnological and environmentalinnovations."

In another significant development,Maersk Line is now offering exclusive anddedicated block train between Bangaloreand Chennai, with CONCOR for supportingthe Bangalore trade. The service is beingoperated with fixed-day departures andarrivals from Bangalore and Chennai. Theservice will ensure that the trade gets thebest transit time to connect MECL2, the USEast Coast service of Maersk Line, whicharrives Chennai every Friday at 0300 Hrs.Through MECL2, the trade will get directcoverage for US East Coast, besidesconnectivity to all major ports in Europeand Africa.

The unique door-to-door service hasfurther emphasised Maersk's totalcommitment to customers, and hashighlighted the line's capability to offerinnovative products in the India trade andits continued endeavour to offer door-to-door transportation service to its customersin South India.

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Kotak Mahindra invests Rs 100 cr in DRS

DRS Logistics, a front-runner in transportation logistics service in the country, has attracted aninvestment of Rs 100 crore from Kotak Mahindra Bank's Private Equity Group.

Informing this to CARGOTALK, DayanandAgarwal, managing director, DRS Groupsaid the company was very pleased that

Kotak Mahindra Bank had chosen DRS for itsinvestment and to become the group's valuedinvestors. "We believe they are the rightpartners to help us grow and to achievefurther strength to tap the full potential thatthe industry has to offer by providing us accessto capital, best-in-class governance standards

and assistance in our growth strategy."Commenting on this development,

Nitin Deshmukh, head - private equity,Kotak Mahindra Bank, said, "This

investment is the largest evermade by Kotak MahindraBank's Private Equity."

In his comments,Deshmukh said that therevolution in retail space andstrong growth inmanufacturing sector wouldprovide tremendous growthpotential for the logistics

services space inthe country. "Likewise, theretail sector, the logisticssector too is expected towitness the emergence ofdominant organised playersthat can provide synergisticservices to their customers."

Asked for the basicreason why Kotak Mahindradid choose DRS forinvestment, Deshmukhreplied, "We believe that DRSLogistics with its portfolio of

services, bulk transportation,warehousing, parcel and home relocationhas the potential to be among the leadersin the Indian logistics space."

DRS Logistics is a fast growinglogistics and transportation serviceprovider, accumulating high reputationamong customers since two decades. Thecompany ranks among the largestdomestic home relocation service providersand operates under brand name Agarwal

Packers & Movers. Knownfor the benchmarkinitiative of introducingthe 'Portable Home'concept, DRS Group hasover 550 vehiclescontrolled by its 122offices spanning thecountry.

Currently, DRS Grouphas warehousing

infrastructure at Gurgaon, Hyderabad,Mumbai and Chennai. "Kotak MahindraBank's investment is proposed to be utilisedto expand the group's warehousing businessand enhance the reach of the bulktransportation and home relocationoperations," said Agarwal.

With diversified cargo activities, DRSoffers road transportation, householdmovement, surface logistics service,shipping and air cargo transportation. Thecompany involves itself in education as partof its social uplift programme. With anannual turnover of Rs 200 crore, the groupis growing at high rate of over 60 per centper annum. The group's flagship companyAgarwal Packers & Movers is driving thegroup's endeavour to be the only end-to-end logistics and transport provider in India.

The Group is being led by DayanandAgarwal, chairman and managing director,DRS Group, with Ramesh Agarwal, director,DRS and Anjani Kumar Agarwal, director,DRS.

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With diversified cargo activities,DRS offers road transportation,household movement, surfacelogistics service, shipping and aircargo transportation.


China Shipping offers premium serviceCT Bureau

With premium ocean containerservices on various convenientroutes, China Shipping serves

customers through 37 sub-agency locationsacross India, besides its own office inMumbai. The leading liner shipping group hasset up its own joint venture, China ShippingIndia, offers most competitive transit timesto a host of global destinations.

Established in 1997 in Shanghai, ChinaShipping Container Lines has emerged as amajor player within a decade of operation.Currently, the company is ranked as the sixthlargest container shipping company in termsof operating capacity and aims to become oneof the top three liner operators in the world.

The parent, China Shipping Group, is oneof the largest shipping groups in Chinahaving multiple business interests incontainers, tankers, bulk, passenger andspecial cargo, with a strong international

network and representation in 86 countriesacross the globe.

China Shipping Container Lines isaffiliated to China Shipping Group, which isinvolved in container liner and other relatedactivities in ports around the globe. Thecompany has a young and modern fleetcomprising over 148 vessels with a totaloperating capacity of around 370,000 TEUs.Of the 148 vessels, 55 have capacities of over4,000 TEUs each and are at an average ageof 2.28 years. In 2005, out of China's annualcontainer trade of 75.8 million TEUs, ChinaShipping Container Lines carried over 5.8million TEUs of loaded containers.

AMA Service, WAX Service and AustraliaService are among key, branded service routesserved by China Shipping Container Lines.

AMA, which offers a comprehensiverouting covering the Middle East, India (GTITerminal, Nhava Sheva), Far East and the US,

is the only direct service from India to LosAngeles, with a competitive transit time of27 days. China Shipping offers fixed-day(Thursday-Friday) window at GTI of JN Port,off Mumbai.

The company's direct service to the WestCoast of America covers main ports of Chinaand South East Asia, through its best-in-classAMA Service, operated with a deployment ofmodern fleet of nine vessels of 5,600 TEUscapacity each, sailing with a speed of 24 knots,transiting to the US West Coast in 27 days.

China Shipping's WAX Service, ex-GTITerminal, provides West Africa route withtransshipment at Port Kelang, en routeDurban, Tema, Cotonou and Lome. Thiscoveted service of China Shipping has createda record of sorts in vessels utilisation.

The company's premium Australia Serviceconnects GTI Terminal to five major ports inAustralia, via Port Kelang.

Traffic handled at major ports(During April to February, 2007 * vis-a-vis April to February, 2006)

Ports April to February % Variation AgainstTraffic Prev. Year

2007* 2006 Traffic1 2 3 4KOLKATAKolkata Dock System 11319 9533 18.73Haldia Dock Complex 38584 38201 1.00

TOTAL: KOLKATA 49903 47734 4.54

PARADIP 35394 29952 18.17VISAKHAPATNAM 50805 50151 1.30ENNORE 9625 8488 13.40CHENNAI 48338 42559 13.58TUTICORIN 16236 15782 2.88COCHIN 13818 12646 9.27NEW MANGALORE 29053 31492 -7.74MORMUGAO 30348 27873 8.88MUMBAI 46426 40176 15.56JNPT 40296 34266 17.60KANDLA 47565 41248 15.31

TOTAL: 417807 382367 9.27* Tentative

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Blue Dart augments infrastructure brawn

India's world-class express, courier andpackage distribution service provider BlueDart inaugurated its new warehouse at

Porur, Chennai, on April 11."The 21,750-SQF facility is part of the 57

new facilities that we plan to place across thecountry in the current year," said Anil Khanna,managing director, Blue Dart.

During an interview with CARGOTALKKhanna disclosed, Blue Dart is investing Rs 27crore on such infrastructure creation.

Giving details on features, Khanna said,”The Porur warehouse is equipped withmultiple dock slots for faster deliveries tocustomers. The warehouse has a service centreto cater to both domestic and internationalclient requirements.”

To a question on the importance of thelocation, Khanna said Chennai and the entiresouthern region is of strategic importance toBlue Dart. "Of the 57 new facilities, we areopening over 20 in the south. Blue Dart has

witnessed consistent growth,with the location here hasmany key players offering ahigh demand to our services,and we believe this regionwould continue to play acritical role in our successstory. Last year, we handledover 19 million shipmentsfrom the south, and we arenow building to support the increaseddemand."

Speaking about the company's ground inexpress segment Khanna said, "Blue Dart isalso bullish on the recent improvements inroad infrastructure. By investing in facilitiesto augment our capacity and by expandingour network, we are preparing for theanticipated growth in ground expresssegment. We have already commencedoperations from our new service centres in TNagar, Chrompet and Adyar, all in Chennai.

Later this year, we willlaunch our new facilitiesat Kodambakkam,Perambur and GreamsRoad, all in Chennai again,apart from a few morecounters. In addition tothis, we will be operatinga direct ground-runbetween Chennai and

Kolkata to reduce transit timeby around 50 per cent."

Gopa Kumar, vicepresident - Southern Region,told CARGOTALK that Blue Dartforesees increased demand asa consequence to growths intelecom, IT and automotivesegments. "The launch of thenew Porur warehouse is in

tandem with our continued efforts to retainourselves in the market as the most reliableand efficient business partner to our growingcustomer base in and around Chennai.Through this facility, Blue Dart would bereaching out to provide customised logisticssolutions to key industries such as banking, ITand auto."

As a leading business centre, Chennai ison the path of tremendous growth, owing torapid industrialisation, growth of SEZs in theoutskirts and a business-friendly environment,Kumar added. "We have planned to furtherstrengthen our network and infrastructure inthe region during the course of the year tofacilitate our customers' business."

Blue Dart has 38 domestic warehousesand 233 offices across India, totalling over to800,000 SQF of facility space. Chennai is alsothe headquarters and maintenance base ofBlue Dart Aviation, and is connected to allmajor cities by air.

JN Port advances its global rankingJawaharlal Nehru Port, Navi Mumbai, has improved its global

ranking in container handling during the calendar year 2006.Disclosing this, Shahzad Hussain, chairman, JNPT told

CARGOTALK that the country's premium container port handled 3.08million TEUs during 2006 and is now ranked 28th in the world.

During 2005, JN Port handled 2.58 million TEUs of containers."The ranking of JN Port on the basis of containers handled in theyear 2005 was 32 among the top 100 leading container ports inthe world," Hussain said adding, "The international ranking of

container handling ports is done on the basis of throughputhandled during a particular calendar year."

During the financial year 2006-07, JN Port handled 3.30million TEUs, which constitutes 60.67 per cent of the totalcontainers handled by all major ports in India, and JN Portremains No.1 container port in the country. "With growingvolumes, the port is poised to further improve its performanceto advance still ahead in its ranking in the coming year," Hussainobserved.

Anil Khanna

CT Bureau

4477CARGOTALK — May - 2007


Schaefco International won the Aero Marine Cup 2007 cricket tournament organised by CMT and Aero Marine for air and sea freightforwarders at New Delhi on April 1. Faye Hyams, vice president, Schaefco International distributed the prizes to the winner Schaefcoand runners-up Reliable Freight Forwarder. Prominent faces from the industry were present to cheer the teams.

Schaefco lifts Aero Marine Cup

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Swiss WorldCargo felicitates agentsSwiss WorldCargo India hosted its agency award function on March 24, 2007, in Mumbai, in recognition of the agents' support to thecarrier during FY 2005-06. Shankar Iyer, managing director, Swiss WorldCargo gave away the awards to 14 air cargo agents for theirexcellence in performance. Airlift India, Eagle Global Logistics, East West Freight Carriers, Exel India, Expo Freight, Freightwings andTravels, Gallant Freight and Travels, Links Forwarders, Modern Cargo Services and Transline Air Cargo Services received awards for theircontribution of general cargo. Allied Aviation and Sherif Express emerged winners from express category. BVC Logistics and Jasraj Kalianjiwon awards for their valuable contribution to Swiss WorldCargo.

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May 07

Documents

Transcript of May 07