Feb 2015

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February 2015
February 2015
www.transreporter.com
February 2015
Editorial
Nitin Agarwal
Yashank Chopra
Vineet Kumar Pandey
Jitendra Bansal
Deepika Solanki
Deepa Rani
Marketing
Mahendra Kumar
Alok Katiyar
Gaurav Kumar
(+91 9871655493)
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Siraj Beig
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Web Portal
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Better implementation
gives better growth
ogistics market in India is sailing sturdily in a rough

sea. There are still many prevailing inadequacies
which have been in the market from a long time,
D.K. Agarwal but the new government has certainly brought some
Chief Mentor positivity in the industry. With wits like Make in India,
and passing the Insurance and land bills with ordinance,
we can comprehend an optimistic future ahead.
The beginning of this year has been very momentous, signaling a fast
and aggressive year ahead. With raging discussions on GST, numerous
events promoting logistics, and some major announcements regarding
investments in infrastructure; we saw a promising start for the industry.
This brings us to the grand 8th Rubber Expo and Tyre show organized
this January. It was good to see the expo held in the capital this time.
It certainly gave a boost to the logistics sector, spread awareness and
unlocked many doors for buyers as well as sellers. The expos significance
was pushed by Nitin Gadkaris speech unveiling various government
plans and future ideas.
Meanwhile, we saw some significant steps in advancement of
infrastructure in previous year, which is widely expected to soar further
this year. The expectations are backed by investment announcements by
the government and bigshots like Adanis. We also saw some steps by
government in order to facilitate the export sector of the country. The
process of the export sector was made more hassle-free; government
reduced the number of required documents from five to three. The new
documentation law will add onto the interest of budding exporters,
making the process smoother for the veterans.
The union ministers decision of implementing e-toll would be
another landmark in the Indian industry, as it is said to save around
Ruppees eighty eight thousand crore every year. Another game changer
of this year would be the e-commerce sector. The e-commerce sector
is planning to reach new heights this year; they aim at every person to
spend nearly ` 10,000 which would be a 70 percent increase from the
current ` 6000 per person.
However, the biggest topic of discussion stands tall as the upcoming
Union Budget 2015. It would be interesting to see how the budget justifies
the millions prospects and qualms. The budget would be a key factor
in forecasting the future markets. It should match up the expectations
and cut down unnecessary taxes and procedures to boost ease of
commencing business. It is somehow evident that the government is pro
industrialization and it will be interesting to see how the Prime Minister
plays his cards.
Until now the government has given some positive signals for
the upcoming budget. It is hinted that the budget will not make any
increment in taxes, but it will provide incentives for the manufacturing
sector. We can also expect a stable tax regime that will not come up with
unreasonable demand and change taxes retrospectively. If government
policies and logistics go hand in hand, we can expect a boost in Indian
market.
The Complete Group on Logistics Media

*All rights reserved. Any part of the magazine
may neither be reproduced in any form or
by any means nor photocopied without a
written permission of the publisher. The views
expressed here are those of the authors. They
are not necessarily the views of the editor.
February 2015
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CONTENTS
Also in this Issue

6
Gautam Adani to
invest ` 20,000
crore in Gujarat
ports in next 5
years
18
National News
7
9
11
15
17
20
Narendra Modi rules out privatization of railways

Quikr set to launch delivery services
Nitin Gadkari : e-toll system would save ` 88,000
crore, cut waiting time
Toll rates to go up by 3% this year
China port deal in Sri Lanka would be big relief
for India
Third Party Logistics market in India to reach
` 48,000 crore by 2019
` 5 lakh crore
investment in road
building in 5 years:
Nitin Gadkari
25
International News
24
25
26
U S Diesel Prices Fall for Ninth Straight Week

Uber For Logistics Startup Lalamove Lands
$10M To Expand In China And Southeast Asia
ABF Logistics Acquires Smart Lines Transportation
Group
Maximus donates
Ilyushin aircraft
to Huda relief
efforts
Interview
34
Indian logistics sector expected to reach revenues of

$385 billion by 2015 : Chander Agarwal
e-Drive
38
Nitin Gadkari Launches web portal for online

approval of Movement of Heavy Transport
Spotlight
40
Accenture launches ports center of excellence in

Hong Kong
42
Playing to Win:
How Strategy
Really Works
Hardcover
February 2015
NATIONAL NEWS
Gautam Adani to invest ` 20,000 crore Chennai Airport

handles largest
in Gujarat ports in next 5 years
single-piece cargo
consignment
autam Adani-led Adani Group

announced a ` 20,000-crore investment
for expanding the capacity of its
Gujarat ports to 100 million tons per annum by
2020.
The investment is on the top of
` 25,000-crore spending the Group had
announced on the first day of Vibrant Gujarat
Summit here. "We are going to continue our
investments in port sector. We will invest
another ` 20,000 crore over the next 5 years
to add another 100 million tons capacity in
Gujarat," he said at the summit.
Adani Ports & Special Economic Zone
(APSEZ) - a part of the Adani Group - is India's
largest multi-port operator. It operates six
ports in the country including four in Gujarat
- Kandla, Mundra, Hazira and Dahej. The ports
handled a total cargo of 112.8 million tons in
2014.
"We are signing exclusive MoU with Port
of Rotterdam to jointly identify and attract
port-based industries in Gujarat," Adani said.
"We are aggressively expanding our activities
in Gujarat and globally."
he city based transport organisations

have urged the Regional Transport
Office (RTO) to start additional suboffices in the city's outskirts. The organizations
have claimed that the vehicle population in the
city has reached beyond 25 lakh and the single
office is proving insufficient to handle daily
work pertaining to tax collections and permits.
Baba Shinde, former member of Regional
Transport Authority (RTA) said that RTO
has land in the city to open new offices.
Besides RTO can submit proposal to the state
government to allot additional land/space to set
up an administrative office and a driving test
track, Shinde said. Shinde said that a proposal
to set up two sub offices each at Dhanakwadi
and Bavdhan is already pending for many
days, RTO needs to expedite these proposals
and ensure that both offices are started at the
earliest, he said.
Over 2000 people visit RTO offices located
at Sangambridge and Alandi road everyday.
Frequent visitors like vehicle owners and
transporters say they have to travel a lot to get
the work done. Ashok Shinde, a resident of
Katraj who runs a transport business said that
every time he spends entire day at RTO office
to make payments and renew permits. There is
a need to decentralize RTO work, Shinde said.
February 2015
Adani said his group had yesterday signed

an MoU with US-based SunEdison to invest `
25,000 crore in a solar manufacturing complex
to produce 27,000 metric tons of poly-silicon
and 2000 MW capacity equivalent of crystals.
"This will be the largest integrated solar
manufacturing facility in the world."
Also, Adani has signed an MoU with
Australia's largest independent oil and gas
company Woodside Energy for "a strategic
alliance within the energy value chain," he said.
hennai airport handled a single piece

of cargo weighing 25 tonnes the
largest individual consignment in
recent times, according to officials of AAI.
The cargo was on its way to Shanghai in
China, Indian airports have handled
even 70 tonnes in a wide-body aircraft,
but it would comprise a combination of
several consignments. This is perhaps the
first time that a single-piece consignment
weighing 25 tonnes was loaded from the
airport, an official said. The consignment
was a furnace manufactured in a factory
in Ambattur, according to Philip James of
Helmann Worldwide Logistics, the firm
that transported it.
Nitin Gadkari : NHAI supported

highways will use cement concrete
nion Transport Minister Nitin

Gadkari said that all new highway
projects supported by National
Highway Authority of India will use cement
concrete.
Addressing media persons, Gadkari
said that the current rate of cement per
bag is about `350 but his Ministry has
zeroed in on a supplier who can sell a bag
at `120 per (excluding taxes and transport).
The Maharashtra Government and local
municipal bodies have also been advised to
use the cheaper cement, he said.
Gadkari added that the planned target
of increasing the speed
of highway construction
to 30 km per day will
be achieved within 18
months as work on 95
per cent of 190 road
projects, which were
stuck for some reasons,
have
now
restarted.
Environment
Minister
Prakash Javadekar has
fast-tracked 71 road
projects since taking over
the Ministry, he said.
Gadkari further said that the MumbaiGoa National Highway (NH-17) would be
soon converted into a four-lane concrete
road. Work has commenced but there are
problems relating to land acquisition,
Maharashtra Governments intervention
has been sought in the matter. In future, no
highway work will commence unless 80 per
cent of the land acquisition is over, he said.
He also added that Karnala Bird Sanctuary
stretch near Panvel along the NH-17, an
NGO had moved the court seeking a stay
on the highway work citing environmental
concerns but soon a solution would be found.
NATIONAL NEWS
Narendra Modi rules out privatization of railways
n a visit to his
Lok
Sabha
constituency
on "Good Governance
day", Prime Minister
Narendra Modi ruled
out privatisation of the
railways but asked people
not to be wary of foreign
and private capital being
utilised for improving
infrastructure of the
national transporter.
"There
is
a
misunderstanding
that
the railways is being
privatised. However, I
want to make it clear that
we are not privatising the
railways. We cannot go in
this direction. You don't have to worry. It is
neither our wish nor thinking," he said, asking
the unions not to pay heed to "rumours" in
this regard.
Sharing his vision of linking the national
transporter with his 'Make in India' campaign,
the Prime Minister made it clear that he
planned to utilise the enormous capital
available with business establishments within
the country as well as abroad for improving
the infrastructure.
Modi recalled his childhood days when
he had sold tea near a railway station, saying,
"I have an association with the railways
that is older than what most of the railway
employees can claim to have."
The Prime Minister also made a strong
pitch for producing good teachers in large
numbers as he launched a mission in the name
Air cargo terminal

set to function soon
of BHU founder and Bharat Ratna awardee

Madan Mohan Malaviya for teachers'
training.
He said that the whole world is looking
at India with great expectations "but we are
not ready".
He advocated introduction of a five-year
training course after schooling for those
aspiring to pursue a career in teaching and
said an environment needs to be created for
producing teachers who are rooted in the
country's culture and tradition and can be
exported in lakhs as there is a large demand
globally.
The Prime Minister began his visit by
paying floral tributes at a statue of Malviya
at BHU. He, thereafter, visited AssiGhat and
expressed satisfaction over the cleanliness
drive which he had launched by wielding a
spade there last month.
he Integrated Air Cargo Terminal at

Visakhapatnam International Airport
is likely to begin operations soon with
tenders for award of the contract for domestic
cargo at the finalisation stage.
The old terminal building at the airport
was modified, after a prolonged delay, for
carrying out exclusive cargo operations
for both domestic and international cargo.
Nearly INR 60 lakh was spent by the Airports
Authority of India (AAI) on modification of
the building and the work was completed
nearly a year ago. The cargo operations could
not be started due to technical problems that
had cropped up between the AAI and the
AP Trade Promotion Corporation (APTPC),
which is the custodian of international cargo
in the State.
Official sources said that the domestic
cargo operations from the cargo terminal
would begin soon with the tender process
at the award stage. The location of major
industries, pharmaceutical industries and
Special Economic Zone and the presence
of two seaports in the city indicate the huge
demand for exports and the potential for
exports by air from the city.
States to get 1-year grace period for implementing GST
tates will get one-year time to

implement the provisions of Goods and
Services Tax (GST) after introduction
of the new indirect tax regime from April
2016.
With states like Tamil Nadu and West
Bengal still voicing their concerns over GST
implementation, the Centre has provided for
this one-year extension clause in the GST
Constitutional Amendment Bill which was
tabled in the Lok Sabha on December 19.
Touted as the single biggest indirect
taxation reform since independence, the GST
implementation would create a single tax for
goods and services across the country. "The
one-year grace period is only a transitory
provision and all states will have to finally
implement it. States are on board," a senior
official said.
This would "take care of any inconsistency
which may arise with respect to any law

relating to tax on goods or services or on both
in force in any State on the commencement
of the provisions of the Act". A single rate
GST will replace central excise, state VAT,
entertainment tax, octroi, entry tax, luxury
tax and purchase tax on goods and services to
ensure seamless transfer.
Some states have opposed introduction of

the GST Bill without evolving a consensus
on critical aspects like revenue neutral rates
and bands, compensation methodology and
thresholds.
Gujarat has proposed that the one per cent
additional tax that manufacturing states can
charge on inter-state trade for two years after
GST roll out should not be withdrawn.
West Bengal is also learnt to have raised
demand for full onetime payment of CST
compensation and as well the losses likely to
accrue due to abolition of entry tax.
As per the Constitutional Amendment
Bill, liquor has been completely kept out of
the GST. Petroleum products like petrol and
diesel will be part of the new regime from
a date to be decided at a future date by the
GST Council, which will have two-third of its
members from states.
February 2015
NATIONAL NEWS
Maharashtra set to get 'Special Purpose India Revives Port and

Shipping Projects
Vehicle' to address infrastructure woes Inland
he Indian government will develop 10
n a day when the entire Central

Railway network was paralysed
after commuters went on a rampage,
damaging railway property and staging a
rail roko after three days of consecutive
breakdowns in the railway network,
Union minister for railways Suresh Prabhu
promised that a 'Special Purpose Vehicle'
will be created to address Maharashtra's
infrastructural problems.
"We will work with Maharashtra
government to create separate SPV to
address state issues. Discussed it with
Chief Minister ( Devendra Fadnavis). Both
Governments will work on it Prabhu,
tweeted, acknowledging that Mumbai's
railway network was under tremendous
strain and was in urgent need of uprade.
Prabhu further tweeted, "Suburban
rail network is under severe stress. Long
neglected. Drawing up plan to revamp it
is on top priority.Need to implement.Huge
task. However, railway minister's SPV

is not a new idea -Mumbai already has a
special purpose vehicle, the Mumbai Rail
Vikas Corporation (MRVC).Established
in 1999, MRVC has not been able to
implement major projects. Instead of
functioning as an autonomous body that
would help transform Mumbai's congested
railway network, it has only functioned
as another unit of the railways, a railway
official told ET while reacting to Prabhu's
announcement.
Prabhu also tweeted that the demand of
railway commuters from Diva where the
commuters went on a rampage demanding
a train service from Diva to CST would be
'studied'.
"Very unfortunate for commuters to
suffer on Central Rail.Directed GM to
sort out the grievances ASAP. Diva to
CST feasibility studied now," the railway
minister tweeted
he Central Board
of Excise and
Customs (CBEC),
under
Department
of Revenue, Indias
Ministry of Finance,
has issued a circular
announcing extension of
24x7 Customs clearance
facility at 13 more
airports in respect of all
export goods and at 14
more sea ports in respect
of specified import and
export goods.
Board has decided
that with effect from 31.12.2014 the facility of 24x7 Customs clearance for specified
imports viz goods covered by facilitated Bills of Entry and specified exports viz factory
stuffed containers and goods exported under free Shipping Bills will be made available,
at 18 sea ports, CBEC said in its circular. The sea ports are: Chennai, Cochin, Ennore,
Gopalpur, JNPT, Kakinada, Kandla, Kolkata, Mumbai, New Mangalore, Marmagoa,
Mundra, Okha, Paradeep, Pipavav, Sikka, Tuticorin, and Vishakapatnam.
Board has also decided that with effect from 31.12.2014 the facility of 24x7 Customs
clearance for specified imports viz goods covered by facilitated Bills of Entry and all
exports viz goods covered by all Shipping Bills will be made available, at 17 air cargo
complexes, the circular said.
The 17 complexes are: Ahmedabad, Amritsar, Bangalore, Chennai, Coimbatore,
Cochin, Calicut, Delhi, Goa, Hyderabad, Indore, Jaipur, Kolkata, Mumbai, Nashik,
Thiruanantapuram, and Vishakapatnam. CBEC said related issues such as availability of
required personnel, keeping open the delivery gates 24x7 at air cargo complexes etc have
been resolved. It is expected that an effective 24x7 Customs clearance facility will greatly
facilitate trade and reduce transaction cost, the circular said.
Welcoming the CBEC circular Tirupur Exporters Association president A Sakthivel
said, This will certainly help enhance the sectors (knitwears) competitiveness in the
global market. (RKS)
February 2015
coastal economic regions as part of plans

to revive the countrys Sagarmala (string
of ports) project. The zones will be manufacturing
hubs supported by port modernization projects
and could cover 300-500km of coastline.
The government is also looking to develop
the inland waterway sector as an alternative to
road and rail transport for getting goods to the
nations ports and is hoping to attract private
investment into the sector. The first project to be
developed on the Ganges River called Jal Marg
Vikas will enable 1,500 ton vessels to navigate
the route between Allahabad and Haldia. The
project will be completed over six years with the
assistance of the World Bank. Preliminary work
on the 1,620 km waterway began in September,
and the World Bank is anticipated to provide
$50 million in financial assistance. Earlier in
the year, Prime Minister Narendra Modi said
that port development alone was not enough
for Indias future economic development. The
port should be connected to all the corners of
the country so people from land-locked states
can send their produce quickly to the global
market through ports. He said growth should be
balanced across India, and special efforts should
be made to ensure that the east, which is rich in
natural resources, should be as developed as the
western part of the country. He called for making
a globally recognized Brand India famous for
Zero Defect, Zero Effect manufacturing free
from defects and with no adverse impact on the
environment. Modi said he wants maximum
movement of men, money, machinery, materials
and minerals across the country.
SC Railway shows 23%

rise in freight earnings
ncreased coal loadings and new exportimport commodities helped South Central
Railway increase its freight earnings by over
23 % during the nine months of the current fiscal
as compared to the year-ago period.
In the last three quarters, the zone raked in
a freight earning of ` 6,614 crore, as against
` 5,359 crore in the corresponding period of last
fiscal. Freight earnings account for almost 70 per
cent of the total revenues of the zone. In physical
terms, the loadings increased 10 per cent to stand
at 85.78 million tonnes during the period. Coal,
which contributes to about 53 per cent of its total
freight revenues, surged a corresponding 10 per
cent to touch 45.6 million tonnes. Cement loading
increased five per cent at 20 million tonnes. SC
Railway also managed to bag some new cargoes
such as imported iron ore from Krishnapatnam
port to Jindal Steel, export cement containers,
stone chips from Balanagar and quartz from
Veldurti.
NATIONAL NEWS
Supermarkets cut fuel prices again
he
four
major
supermarkets
have
provided some New
Year cheer for motorists by
cutting their fuel prices.
Asda,
Morrisons,
Sainsbury's and Tesco are all
knocking 2p a litre off their
petrol and diesel, with the
reductions taking effect from
tomorrow.
The Asda cuts will mean
its customers will pay no
more than 107.7p a litre for
petrol, with diesel at 114.7p
a litre.
With world oil prices plunging, this is
Asda's 13th cut since the end of September,
taking, in total, 19p a litre off petrol and 15p
a litre off diesel. For Morrisons, it is the sixth
cut since December 1.
The AA said: "The UK average price for
petrol is currently around 113p per litre and
these welcome decisions on making further
price cuts will eventually filter down in some
form to other retailers.
"So the UK average price will fall further
as we enter 2015. However, just how far it
falls is anyone's bet. Current indications are
that the magical 1-per-litre average price
across the UK is still looking unlikely in the
Quikr set to launch

delivery services
short term."
The RAC was more confident of the 1
figure being achievable.
RAC head of external affairs Pete
Williams said: "These further cuts will
certainly bring extra cheer for motorists for
the new year.
"With record lows in the price of a barrel
of crude oil, it is encouraging to see retailers
passing on those savings to their customers.
"These latest cuts are also another step
towards the very real prospect of a 1-perlitre average price in January, as predicted by
the RAC in December, which really would
guarantee a happy new year for millions of
motorists in 2015."
nline consumers, who are into

selling and buying of second hand
or used goods, will now be able to
deliver or ship their products for free and
with convenience. Online classified portal
Quikr.com, which is the business of used
goods, plans to provide delivery services
to its subscribers. At present, sellers are
supposed to ship the products to the buyers
on their own cost. This, the company said,
was an inconvenient, tedious and time
consuming process for the users. So far no
other classified portal provides delivery
services.
The Mumbai-based firm is already
testing the potential of delivery services here
for the last few months and has witnessed
a 50 per cent increase in transactions in the
city. It plans to roll out the service in all the
five major metros such as Delhi, Kolkata,
Bangalore, Hyderabad and Chennai in the
next three months.
Pranay Chulet, Founder and CEO, Quikr
said that the decision to launch delivery
services was a part of the companys constant
focus on innovation. Delivery services in
this category are a very local phenomenon
and for that we are looking at tying up with
local or regional movers and packers, he
said.
Is third party logistics hindering Snapdeal?
napdeal still relies on third party

logistics and lacks its own logistics
network. But now, It seems Snapdeal is
finding it tough to sort its delivery issues. New
Delhi-based Gautam Sachdeva ordered a LG
G2 smartphone from the online marketplace
last December to give it as a New Year gift
to his father.
However, Snapdeal spoiled his plans by

delivering a "second-hand cell phone from
some random seller." Says Sachdeva, "In my
case, the product sent was not even checked
by Snapdeal and they claim that all products
sent are 100% genuine and verified."
Snapdeal is the only big e-commerce firm
in India that does not have a captive delivery
arm and relies completely on third-party
logistics.
Having gone for 'Cash on Delivery'
option for the order, Sachdeva claims he took

the money back from the delivery person as
soon as he opened the box and found that he
has not received the phone he had ordered.
This, he says, saved him from the hassles of
getting a refund.
A Snapdeal customer service executive,
in an email dated January 2 2014, asked
Sachdeva to send images of the model he
received within two days. Sachdeva further
said that he planned to gift this smartphone
to hisfather as a New Year's gift, however,
the entire effort got wasted. He says, his
one big concern is that is not the first time
that something like this has happened with
Snapdeal.
"I feel Snapdeal is just cheating customers
by tying up with random sellers and not
verifying their reputation. Due to this, it's the
customers who either get cheated or end up
wasting lot of their time."
Snapdeal's order delivery troubles seem
to stem from not having its own logistics
network. Snapdeal is reportedly seeking
to acquire a significant stake in a logistics
company or form a joint venture with one.
Snapdeal founder and CEO KunalBahl is said

to be driving this process. Rivals Flipkart and
Amazon have dedicated delivery networks in
India. In December, Snapdeal had delivered
pieces of wood instead of two iPhones to
Pune-based DarshanKabra. In another case of
messed up delivery, the company reportedly
delivered a Vim soap bar and a brick to a
buyer who had ordered a Samsung Galaxy
Core smartphone.
February 2015
NATIONAL NEWS
Haryana transporters get 1 year to correct truck bodies post strike
he truckers in Haryana withdrew

their strike after chief minister ML
Khattar gave them one years time to
get their vehicles modified as per the Central
Motor Vehicle Rules (CMVR), 1989. The
decision came after a delegation of truckers
held a meeting with Khattar, which was also
attended by transport minister Ram Bilas
Sharma, principal secretary (transport) Avtar
Singh and transport commissioner Ashok
Khemka, among others.
However, the truckers have been asked
to give a surety bond worth `2 lakh for each
large-size vehicle at the time of getting its
annual fitness certificate till January, 2016,
with the commitment that its body would
be modified as per the norms before its next
annual passing. There are about 40,000 such
trucks registered with the state government,
according to truckers associations.
The truckers had gone on strike in protest
against the denial of fitness certificate to large
trucks (containers) used for ferrying vehicles
and heavy machines manufactured in the
state. Most of them were associated with
the automobile sector, especially automobile
plants of Honda Motorcycles and Scooter
India (HMSI), Hero Motorcorp, Maruti
Suzuki in Gurgaon and other industries
in Faridabad. The truckers associations
protested the recent directive issued by

Khemka asking them to correct the size of the
long-body trailers (containers) and conform
to the CMVR, 1989.
In 2012 too, the truckers had been asked
by the state government to conform to the
prescribed dimensions for their vehicles
and given one year relaxation till 2013. All
India Motor Transport Congress president

BhimWadhwa and All Faridabad Transport
Association president Suresh Kumar Sharma
told HT that Khattar had assured truckers
that their vehicles would not be challaned
till January 2016, but no vehicle would be
given annual fitness certificate if found not
conforming the norms.
Larsen & Toubro wins Oman airport

contract to build tower, air cargo complex
Average Indian to
spend ` 10,000 on
e-commerce in 2015
arsen & Toubro,

has
won
a
contract to build
37-metre high air traffic
control tower and an air
cargo terminal equipped
to handle 25,000 tonnes
of freight a year, the
company announced.
The company also
announced a major
order from Oman's
Ministry of Transport
and Communications
for the construction of a
new passenger terminal
and other key facilities
at
Duqm
Airport,
reported Trade Arabia
News Service of Manama, Bahrain.
L&T Oman also bagged an order from
Oman Tourism Development Company
(Omran), the sultanate's leading tourism and
mega real-estate developer, for the turnkey
construction of a four-star hotel at Oman
Exhibition and Convention Centre (OECC).
With this, total orders won by the
construction giant for this month both in the
10
February 2015
Indian and international markets has hit INR

252.1 billion (USD 398 million).
DuqmJaaluni Airport (IATA: JNJ) is
an airport in the vicinity of Duqm in the Al
Wusta Region of Oman. Oman Air was due
to start operations on July 23, 2014, says the
brief Wikipedia entry.
The airport was officially opened on July
24, with Oman Air announcing that there will
be four scheduled flights a week.
he average annual spending of Indians

on online purchases is expected to rise
67% to ` 10,000 next year, according
to a study. Currently, online shoppers spend
around ` 6,000 a year on average, said the
Assocham-PwC study. About 40 million
consumers purchased something online this
year and the number is expected to grow to
65 million by 2015 with better infrastructure
in terms of logistics, broadband and internetready devices. The overall e-commerce
industry, valued at $17 billion, has been
growing at a compounded annual growth rate
of about 35% each year, the study said, adding
that it is expected to cross the $100 billion
mark in five years. In 2014, the sector attracted
the attention of investors, including top global
firms and leading Indian industry leaders like
Azim Premji and Ratan Tata, said the study,
adding that brands like Flipkart and Snapdeal
are enjoying edge over global players like
Amazon in the country. Online apparel sales
continue to capture a greater share of India
retail ecommerce as a category along with the
computer and consumer electronics sector,
fuelling the overall market growth.
NATIONAL NEWS
Nitin Gadkari: e-Toll system would save

` 88,000 crore, cut waiting time
No state will lose

a penny post GST
implementation
N
T
he electronic toll (e-toll) collection

system introduced in the country
will help save ` 88,000 crore and
cut waiting time at toll plazas significantly,
Road Transport and Highways Minister
Nitin Gadkari said.
Citing a Transport Corporation of BSE
-0.26 % India-IIM Kolkata study that said
` 60,000 crore was lost on account of various
delays at check posts, he said electronic
toll collection could save ` 88,000 crore.
"The report said that every year, fuel worth
` 60,000 crore is wasted due to the time
spent by vehicles at toll plazas. The amount
goes up to ` 88,000 crore if the value of the
time lost is added," he said. "Of the 350 toll
points on the Mumbai-Delhi route, 140

have been converted into E-toll points. By
completion of the e-toll work in the country,
this amount of ` 88,000 crore would be
saved," he told reporters.
"We will make available the e-platform
to Maharashtra Government so that the
same e-toll points can be started on state
highways," Gadkari said. On the issue of
making roads toll-free, Gadkari said, "we
are trying to find a way out."
"On the issue of toll, we are making a
detailed study for the last two months. We
are trying to bring in a new toll policy in a
month, after taking approval of the PM and
cabinet," Gadkari said.
o
state,
including
West Bengal,
will lose a single
penny
post
the
implementation of the
Goods and Services
Tax (GST), the Union
Finance
Minister,
Arun Jaitley, said here
in the city. According
to him, the Centre is giving the first instalment of
its GST compensation soon and the balance too will
be cleared. "I have assured the states that they will
not lose a single penny post the implementation of
GST. In fact, revenues in West Bengal, in the first
year post implementation of GST, are set to go up,"
he said during his address at the Bengal Global
Business Summit. Bengal is among the few states
that have raised objections to the implementation of
GST citing loss of revenues. According to Jailtley,
the state will also gain substantially post coal block
auctions. Coal producing states will be given a
substantial share of the auction. "There may be
political differences between parties. But, India is a
strong federation of states," he added.
VPT to take long-term measures to restraint beach erosion
he Visakhapatnam Port Trust (VPT)

is spending ` 9 crores per annum
on beach nourishment and curbing
erosion and is willing to spend more for the
purpose, according to Chairman M.T Krishna
Babu.
He was speaking at a press meet on the
issue which is currently in the news in view
of the marked erosion at certain places on the
beach in the city.
He said the Chief Minister had convened
a meeting in Hyderabad and formed a
committee with the VPT chairman as the
head to address the problem.
"The National Institute of Ocean
Technology will be the nodal agency and
the NIOT has been instructed to study the
problem at Vizag and submit a report by
June suggesting technical solutions to curb
erosion. Long-term measures will be taken
based on the report," he said.
He said the VPT would undertake beach
nourishment as usual in the second or third
week of February and it would go on for
45 days. "Till last year we used to give the
contract to the Dredging Corporation of India
(DCI), but this year we have floated global
tenders as the DCI rates are high," he said.
He said beach erosion was not a problem

peculiar to Vizag and many places in Tamil
Nadu and Kerala were facing the same
problem.
"Vizag port, Gangavaram port, the Greater
Municipal Visakhapatnam
Corporation
(GVMC), and several other Government and
private agencies will be involved in the effort
and every step would be taken to protect the

Vizag beach," he said.
He said there was no reason to assume
that the activities of Visakhapatnam port were
leading to beach erosion. "Unscientific notions
should not be propagated and we will act on
the basis of the NIOT recommendations," he
said in response to a query.
February 2015
11
NATIONAL NEWS
Amazon to more than double delivery and logistics team

looking to hire 8,000 in next 7 months
mazon India plans to more than

double its headcount in logistics and
delivery space in seven months as
it pushes ahead with its offer of providing
shipping services to sellers registered on the
ecommerce portal.
"The delivery (and logistics team)
will touch 14,000 by July," said a person
directly familiar with Amazon India's plans.
It currently has 6,000 people in this team.
Another executive said the company will first
increase its headcount to 9,000 by March.
After the hiring, Amazon will have the
largest delivery and logistics team among
e-commerce players in the country, beating
Flipkart that has a 12,000-strong team
handling about 85% of goods sold on the
portal. A spokeswoman for Amazon India
confirmed aggressive hiring plans, but
declined to share details. "Encouraged by our
growth and plans for the year ahead we have
outlined an aggressive hiring plan across all
aspects of our business," she said.
This push underlines Amazon's broader
strategy of strengthening its 'Easy Ship'
service, whereby it undertakes delivery
of goods stocked at sellers' warehouses
to consumers when an order is placed. Of
the 16,000 registered sellers with Amazon
India, 7,300 use this service to connect with
consumers in 284 cities. Amazon India says
Easy Ship service currently takes care of
15% of its total deliveries, with sellers on an
average reporting 50% uptick in sales since it
launched the service in April.

"We believe it is owed to the profitable
growth they see on our platform enabled by
logistics services such as FBA (Fulfilled by
Amazon India, under which it ships goods
from its own warehouse) and Easy Ship," said
the company spokeswoman. Some experts
believe this strategy helps in improving
operational efficiencies at Amazon India as it
does not have to stock all goods at its own
warehouse.
"It will also provide significantly higher
margin than its operating margin," said
RaghunathSubramanyam,
professor
of
corporate strategy and policy at Indian Institute
of Management, Bangalore. "By connecting
with the warehouse and distribution network
of its suppliers, Amazon also reduces cost
of storage and transportation, which allows
it to become more competitive." Seattlebased Amazon started its India operations
in June 2013, six years after Flipkart, and

many believe the India unit of the US global
is "almost on par" with the home-grown
e-commerce firm in building infrastructure.
A Flipkart executive, speaking on condition
of anonymity, said, "No doubt they (Amazon)
are investing (in building infrastructure), but
we still are the largest."
Amazon currently has eight warehouses
across seven states in the country while
Flipkart has 13. Top e-commerce players
Amazon, Flipkart and Snapdeal are all
strengthening their shipping services as it
could prove to be the key differentiator in a
highly competitive market.
All the three offer sameday delivery
in some cities, and this service could be
expanded to more cities in the coming
months, as more than half the people who
shopped online in 2014 were from outside
metros and large cities.
HC directive on dumping of waste from ships
Division Bench of the Kerala High

Court directed the Union government
and the Central Pollution Control
Board to file a detailed affidavit in response
to the allegations of dumping of waste
generated from the vessels calling at the
Cochin Port in public places.
The
Bench
comprising
Justice
Thottathil B. Radhakrishnan and Justice
K. Harilal also directed the Cochin Port
Trust to file an affidavit stating how it
was discharging its statutory duties and
responsibilities in terms of the provisions
of the Kerala Municipalities Act. The court
issued the directives on a petition filed by
K.N. Unnikrishnan of Kadavanthra seeking
a directive to prevent dumping of waste
generated from the vessels calling at the
port in public places near the port areas. The
court also flayed the Kochi Corporation and
observed that it appeared to be blissfully
ignorant of its primary responsibility of
public health and hygiene.
12
February 2015
The petitioners said wastes, including

toilet waste generated and stored in the
vessels calling at the port, were being taken
out of the vessel by private agencies on the
basis of the licence given by the port trust.
They later dump these wastes in public places
and areas near the port.
The court observed that different
Union Ministries had to immediately take a
comprehensive look at the critical situation
arising out of the management of sewage
waste and other wastes, including oil, which

reaches the shores of Kochi through passenger
and cargo vessels.
The court also expressed its dissatisfaction
on the stand taken by the port and observed
that the management of waste as pointed
out in the ports affidavit would not solve
the problem. The court pointed out that the
ports pact with a hotel in the Wellington
Island for the waste management did not
appear to contain any definite and firm
commitment or enforceable nature. The
port submitted that the waste was being
handled as per the terms of the International
Convention for the Prevention of Pollution
from Ships (MARPOL). Materials such as
plastics, which could not be disposed of at
sea, were being brought ashore for recycling,
it said. The port submitted that it did not give
permission for offloading infected hazardous
waste. The court also directed the port health
officer to inspect and assess facilities and file
an affidavit.
NATIONAL NEWS
Truck rentals may plunge 2-3 percent
oving
goods
by road may
get
cheaper
by 2.5-3%, thanks to
the cut in diesel prices.
But transporters rue the
governments move of
not passing over the entire
drop in international crude
prices to the market so far.
According to the
Indian Foundation of
Transport Research and Training (IFTRT), a body that tracks the sector,
Truck rentals are expected to get cheaper by 2.5-3% over the next few
days with the drop in petrol and diesel prices by over ` 2 a litre.
SP Singh, Senior Fellow, IFTRT said, The reduction in diesel price
is meager. The expectation was for a drop of INR 4-5 a litre. While it
will take a few days for the drop in fuel prices to reflect on rentals, we
expect the freight rates on key trunk routes to go down by 2.5-3%.
Many customers of the organized transporters will automatically
see a drop in rentals as the transporters have long-term contracts with
them.
We agree that freight rates should come down. But, it will depend
on the market conditions. We have to keep in mind that other costs
such as lubricants, automobiles, tyre prices have also gone up. If the
economy picks up, and the demand goes up, the price may not see
sharp drops, said Naveen Kumar Gupta, Secretary General, All India
Motor Transport Congress. Fuel costs account for 45% of the operating
cost for a transporter, said Gupta.
VPT to issue Letter of Award

to Essar Group for 3 berths
fter sorting out of the teething problems, Visakhapatnam Port

Trust (VPT) is all set to issue Letter of Award to Vadinar
Oil Terminals, part of Essar Group, to launch work on
development and operation of three iron ore berths.
This will be the second facility being developed on the East Coast
by Essar Group, one of the largest private sector port companies in
India.
It has already developed four berths at Paradip. By adding 23
million tonnes (mt) in three years at Vizag, the Essar Group, a BSE
and NSE-listed company, will have a total iron ore handling capacity
of 39 million tonne per annum (mtpa) on the East Coast. It has
terminals at Vadinar and Hazira on the West Coast.
Essar Group, with which they had signed a concession agreement
in 2013, would start work in a month. Once it shows upfront fee of
around `170 crore towards existing facilities in Escrow account, it
will take possession of the existing infrastructure of Ore Handling
Complex and the old berths, a senior official of VPT said.
As per the agreement, the Special Purpose Vehicle EssarVizag
Terminals Ltd will create the facilities to receive Super Capesize
vessels with a capacity of 2,00,000 deadweight tonnage (DWT) in
the Outer Harbour and Panamax vessels in the Inner Harbour under a
mechanised loading environment.
VPT issued Letter of Award to Visakha Container Terminal
Private Limited (VCTPL) sometime ago to extend the existing
terminal at a cost of `633 crore. Both Essar and VCTPL projects are
being launched under Build, Operate and Transfer basis as part of
efforts to transform Visakhapatnam Port into a world-class port.
West Bengal: Government to give Hooghly

Dock and Port Engineers Ltd to private players
he Narendra Modi government wants to push ahead with plans

to get unviable public sector companies off its hands by selling
them or forming joint ventures with investors that can run them
profitably. Toward this end, it's planning to sweeten a retirement offer
as part of efforts to privatise Kolkata based Hooghly Dock and Port
Engineers Ltd (HDPEL), a shipyard almost 200 years old and among
India's oldest. A note in this regard is being drafted for the cabinet's
consideration, said a senior government official.
A similar plan was approved last week for the near-defunct Central
Inland Water Transport Corp. (CIWTC), another Kolkata-based
company. To be sure, the West Bengal government may not be too
enamoured of the asset-sale plans, particularly since it has a prickly
relationship with the Central government.
We want to incentivize people to opt for retirement with a
better severance package," a senior government official said. The
government feels Hooghly Dock has enough assets to attract private
sector investors even though it has built just two ships in last four
years.
Kolkata Port Trust has already engaged HR Wallingford of London
for suggesting measures to improve the draft at Hooghly Dock as
well reducing dredging costs, which will add to attractiveness of the
company as an investment target.
In October 2011, the government had given in-principle approval
for rehabilitation cum restructuring of Hooghly Dock through a
joint venture with a private company selected through open bidding
process that was launched in 2013. It also approved writing off of
government loans and interest payments amounting to ` 629 crore

as of March 31, 2011. Three companies submitted expressions of
interest on forming a JV Shalimar Works, Titagarh Wagons and
Bharti Shipyard. However, a report by Infrastructure Leasing and
Financial Services (IL&FS) suggested that unless staff numbers were
cut, the government would have to continue funding the company and
it would not be able to bring down its stake.
February 2015
13
NATIONAL NEWS
DHL Express invests in infrastructure in

Chandigarh, inaugurates service station
imed at supporting the growth

of export and import demands of
customers especially SMBs in the
Northern region, logistic service providerDHL Express India (P) Ltd, opened its new
modern service facility in Chandigarh. The
new facility will serve as a pick-up, delivery,
sorting center etc., with a shipment handling
capacity of over 100,000 shipments a year and
will cater to the logistics needs of customersbased at Chandigarh and its vicinity namely
DeraBassi, Mohali, Panchkula, Zirakpur,
Baddi, Parwanoo etc.
Speaking to Business Standard, RS
Subramanian, Senior Vice President &
Managing Director, DHL Express said, In
the recent past, due to rapid industrialization,
the tricity namely Chandigarh, Mohali,
Panchkula and nearby areas like Zirakpur,
Baddi, Parwanoo etc. has grown in
prominence as an industrial hub. Through the
service center facility, we are strengthening
our infrastructure and capabilities to
support our customers growing business.
We will now be able to move shipments
faster and with greater efficiency, providing
superior service quality. Located centrally
in Chandigarh, the new facility will serve
as a pick-up, delivery and sorting center,
with a shipment handling capacity of over
100,000 shipments a year. It will also allow
for early delivery of export shipments and
later pick-ups of import shipments, giving
customers more time and flexibility to work.
All shipments for Chandigarh, DeraBassi,
Mohali, Panchkula and Zirakpur will now
have a same-day connection to Delhi. This
is the companys second service centre in
the Northern region excluding Delhi and
NCR. Buoyed by the response, recently,

it has expanded its Ludhiana which is a
key industrial hub of Punjab and is one of
the leading business centers in the whole
northern region of India. The Ludhiana centre
caters to customer requirements of Jalandhar,
Phagwara, Amritsar, Mandi, Gobindgarh,
Moga etc. and having capacity to handle over
200,000 shipments a year. In Ludhiana, it is
catering to the needs of variety of industries
in Ludhiana like textiles, hosiery, bicycle
manufacturers, auto part dealers, precision
equipment dealers, and manufacturers of
electronic goods, tyres and tubes. DHL
Express facilitates exports and imports
for a wide variety of customers across
industries such as automotive; engineering

and manufacturing; pharmaceutical and life
sciences; textile and garments; electronics
and banking. It is worth mentioning that DHL
Express provides access to 659 cities and
over 33,000 locations in the country. DHL
Express India has approximately 60,000
customers including importers, exporters,
manufacturers, entrepreneurs, wholesalers
and small and medium sized businesses.
With a robust network of over 340 fleet
vehicles on road, 19 dedicated DHL network
flights and 100 commercial flights per week,
DHL customers in India have access to an
international network of 220 countries and
territories where DHL has a presence.
Tata Motors launches Prima truck in Nepal
omegrown automajor, Tata Motors,

has launched four new nextgeneration Prima heavy commercial
vehicles for the very first time in Nepal in
association with Sipradi Trading Private
Limited. This move comes as part of Tata
Motors ongoing efforts in changing the
scenario of the Nepalese truck market with
robust products.
Tata Motors has introduced the Prima LX
2523.K truck in the tipper segment, whereas
in the cargo segment, the company has
introduced the Prima LX 2523.T, the Prima
LX 3123.T and the Prima LX 4023.S trucks,
all of which have different combinations of
drivelines, thereby, meeting the end-user
requirements for varied applications.
14
February 2015
Commenting on the launch, RT Wasan,

Head, International Business, Commercial
Vehicles Business Unit, Tata Motors, said,
The launch of the Prima range in Nepal,
is an important milestone in Tata Motors

continued expansion in the Nepalese market
and the SAARC region. As market leaders,

we are committed to shaping the commercial
vehicle industry here with the latest global
technologies giving the Nepalese customer
competitive business advantages, with trusted
credentials of the Tata Motors brand.
The Tata Prima, according to the Indian
automaker, has been built with technical
inputs from across the world. The cab design
has been built with inputs from Italy, engine
technology from the USA and Europe,
gearbox expertise from Germany, chassis
frame know-how from Mexico, sheet metal
dies from Japan and Korea and robotic weld
line technology from Sweden,. This truck is,
therefore, referred by Tata Motors as a 'World
truck'.
NATIONAL NEWS
Toll rates to go up by 3% this year
he toll rates for national

highways will go up by
3% in current fiscal, as a
result of the low inflation. This is
against the past trend of charges
going up by a range of 6-8%
annually in the last few years.
The wholesale price index
(WPI)-based
inflation
for
December has been recorded
at 0.11%. Every year, the toll
charges go up in sync with the
wholesale price index (WPI)based inflation.
According to the 2008 toll
policy, on April 1 every year, the toll rates go up by three per cent and 40 per cent of WPI-based
inflation recorded in December of previous year. The policy also states that the toll rate should
be rounded off to the nearest `5, a move which could make the toll charge hike marginally
higher or lower than 3%.
In fact, there are some stretches of national highways, awarded before 2008, where the toll
rates are entirely linked to the WPI-based inflation. As a result, the toll rates on such highways
will just not go up. RP Singh, Chairman, National Highways Authority of India (NHAI) said
that "The toll rates will go up by 3% this year. This is good news for highway users. And while
it may be a concern for road developers, they should not worry as the traffic on many stretches
are seeing good growth.
Many road developers such as AshokaBuildcon, L&T Infrastructure Development Projects
Limited, IRB Infrastructure have seen double digit growth in traffic in many of their road
stretches. However, this is also a concern for private developers with road stretches that are not
seeing good growth due to local economic conditions.
Eicher Motors gains after subsidiary's

strong sales in December
icher Motors rose 1.43% to ` 15,319 at

13:13 IST on BSE after the company
said the total sales of its subsidiary VE
Commercial Vehicles rose 20.7% to 3,387
units in December 2014 over December 2013.
Meanwhile, the S & P BSE Sensex was
down 55.66 points or 0.2% at 27,443.76.
On BSE, so
far 2,589 shares
were traded in the
counter as against
average
daily
volume of 4,709
shares in the past
one quarter.
The
stock
hit a high of
` 15,350 and a
low of ` 14,975.20 so far during the day. The
stock had hit a record high of ` 15,773.30 on 4
December 2014. The stock had hit a 52-week
low of ` 4,405 on 12 February 2014.
The stock had outperformed the market
over the past one month till 31 December 2014,
advancing 4.04% compared with the Sensex's
4.16% fall. The scrip had also outperformed
the market in past one quarter, surging 25.99%
as against Sensex's 3.26% rise. The large-cap

company has equity capital of ` 27.10 crore.
Face value per share is ` 10. VE Commercial
Vehicles' domestic sales rose 26.6% to 3,002
units in December 2014 over December
2013. Exports declined 11.5% to 385 units in
December 2014 over December 2013. On a
consolidated basis,
net profit of Eicher
Motors rose 53.6%
to ` 165.03 crore
on 35.5% growth
in net sales to
` 2251.25 crore in
Q3 September 2014
over Q3 September
2013.
Eicher Motors,
the flagship company of the Eicher Group,
is a leading player in the Indian automotive
space. Its 50-50 joint venture with the Volvo
group, VE Commercial Vehicles, designs,
manufactures and markets reliable, fuelefficient trucks and buses. Eicher Motors also
owns the iconic Royal Enfield motorcycle
business, which leads the premium motorcycle
segment in India.
Govt mulling VisakhaChennai Coastal Corridor

at ` 70,000 crore
he Government of India has decided

to take up the VisakhapatnamChennai Coastal Corridor tender
process in March 2015. A whopping
`70,000 crore budget proposals with four
nods aimed to be completed within six
years. According to the sources, tenders for
the first phase of works will be completed
by July and the Government is in touch with
Asia Development Bank (ADB) for loan. It
may be recalled that the government has
decided to establish a coastal corridor from
Visakhapatnam to Chennai with four nods
in Visakhapatnam, Kakinada, Gannavaram
and Yerpedu (Chitoor) district. Each nod
will have some clusters.
The Government has decided to begin
works in Visakhapatnam and Yerpedu.
In Visakhapatnam nod, Ranasthalam,
PydiBhimavaram,
Atchutapuram,
Nakkapalli will be in the cluster. A decision
has been taken to establish Electronics,
Electrical industries in Atchutapuram and
Nakkapalli clusters. In Yerpedu Nod lands
will be allotted for IT and Automobile
industries.
GDL hits new high on

hopes of Gateway Rail
Freight IPO
ateway Distriparks (GDL) has

surged 10% to INR 400 on National
Stock Exchange (NSE) after
Blackstone GPV Capital Partners requested
the company to effect initial public offer
(IPO) of Gateway Rail Freight Limited.
Gateway Distriparks said, Blackstone
GPV Capital Partners (Investor) have
sent a letter dated January 16, 2015 to the
company and the company's subsidiary
company - Gateway Rail Freight Limited
(GRFL) requesting the company to effect an
IPO of GRFL in accordance with the terms
of the Share Subscription &Shareholders
Agreement (SSHA) dated November 09,
2009. The company will respond to the
request from the investor in due course.
This will have no impact on the operations
or profitability of the company, it added.
In November 2009, Blackstone Group
announced the acquisition of a 37.5% stake
for INR 300 crore in Gateway Rail Freight.
The stock opened at INR 369 and
touched a record high of INR 407 on NSE.
The counter has seen huge trading volumes
with a combined 648,450 shares changed
hands till 1010 hours on NSE and BSE.
February 2015
15
NATIONAL NEWS
Govt to surge public spending on infrastructure : Arun Jaitley
inance Minister Arun Jaitley recently

said that the government will take
special steps to boost public spending
on infrastructure and initiate measures to
rationalise subsidies.
"Even with the present constraint of
fiscal deficit in revenue, it's a challenging
and a difficult opportunity for us. But I think
we have to take some special steps as far as
public investments is concerned," he said.
The Minister underlined the need
for stepping up public investments in
infrastructure sector to boost economic
growth.
"The whole PPP model is still under
stress and we have to revive this. This is a
course we are on and hopefully, with clarity
in governance, we will be able to proceed,"
he said while addressing a CII function here.
The Minister underlined the need
for stepping up public investments in
infrastructure sector to boost economic
growth.
"The whole PPP model is still under
stress and we have to revive this. This is a
course we are on and hopefully, with clarity
in governance, we will be able to proceed,"
he said while addressing a CII function here.
Referring to the need to rationalise
subsidies, the Minister said: "From January
1, LPG subsidy is going through banks...
We have to gradually rationalise all possible
subsidies."
The government is expected to incorporate

the suggestions of the Expenditure Finance
Commission headed by former RBI Governor
BimalJalan in the budget proposals for 201516, which will be presented by Jaitley next
month.
Jalan is reported to have submitted interim
recommendations to the Finance Ministry
suggesting various steps to rationalise
subsidies and public expenditure.
The government's subsidy bill towards
oil and fertilisers runs into lakhs of crores of
rupees.
The Minister also underlined the need
for stability in tax and other policies to make
India an attractive place for investment.
The implementation of the Goods and
Services Tax (GST), he added, will help in
improving the business climate in the country.
Centre trying to shut down

Mumbai Port Trust : NCP
Vasundhara Raje
visits Mundra port
ajasthan chief
m i n i s t e r
Va s u n d h a r a
Raje paid a visit to
Adani group's Mundra
Port in the special
economic zone in Kutch
district. Raje's visit was
kept a low key affair
by state authorities.
She visited the power plant and the port site
at Mundra, claim officials. Senior district
administration officials refused to divulge
details on her visit. "She (Raje) paid a visit
to the Mundra port and SEZ in the afternoon
along with a delegation today. She also
visited the power plant here. She left in the
evening," Kutch Collector Mahendra Patel
told media persons. An official statement
from Raje's office said, " She had come here
to see developmental work carried out in the
Mundra port area.". She had a delegation
accompanying here on this trip claim Kutch
district administration officials.
16
February 2015
The GST, Jaitley said, was welcomed by

different states and that "none of them will lose
a single rupee" following the implementation
of the new indirect tax regime.
"A seamless transfer of GST is going to
add to the GDP. It will make business easier.
In the long run it may even lower taxes.
Higher buoyancy is going to help the States
in areas where States had no share of taxation
(like) service tax," Jaitley said.
Stating that today almost Rs two lakh
crore are collected as Service Tax and
States also have a share of it, he said some
consuming States will gain from day one of
GST implementation.
Referring to the proposed changes in land
acquisition laws, Jaitley said that it would
eventually help farmers to get a better price
for their land.
Moreover, he added, establishment of
rural infrastructure and industrial corridors
would increase the price of land and generate
employment for rural youth.
Commenting on the changes in companies
law, he said the government is committed to
improving ease of doing business.
"Yes, we are committed to the ease
of doing business...we worked out the
amendment, I moved the amendment in
Parliament that has been unanimously passed
by Lok Sabha and it is now pending before
the Rajya Sabha," he added.
he Nationalist Congress Party Monday

accused the central government of
planning to shut down the Mumbai
Port Trust (MbPT) operations and divert
maritime traffic and business to Kandla Port
in Gujarat.
State spokesperson Nawab Malik claimed
that this was being down with a larger
design to exploit the port trust land here for
commercial purposes.
He pointed out that Union Shipping
Minister Nitin Gadkari has already publicly
announced that 1,800 acres of land belonging
to MbPT would be freed for commercial
development.
"The aim is to shift all businesses worth
over `1,000 crores to Kandla Port, make
MbPT sick and eventually shut it down,"
Malik told the media.
He said that presently, there are around
10,000 shanties and 4,000 old houses standing
on the MbPT land, and their residents would
be dumped on the streets by the proposed
plans.
"The NCP will strongly oppose any
such moves and will stand up for the rights
of the local residents, shopkeepers and poor
labourers who have settled on the MbPT
land," Malik said.
The MbPT, among the oldest and busiest
in the country, was founded in 1873 and
handled all maritime traffic until 1989, when
the adjoining Jawaharlal Nehru Port Trust
became functional.
Now, MbPT handles mostly bulk cargo of
around 60 million tonnes annually, while all
the container traffic has been shifted to JNPT.
NATIONAL NEWS
China port deal in Sri Lanka would be big relief for India
he new Sri Lankan

government
says
that
it
would
review the port deal with
China
Communication
Construction
Company
Ltd. There have been
concerns expressed in Sri
Lanka about the Chinese
firm getting so much land
especially in a high security
zone.
As per this deal, which
was signed by Rajapaksa,
108 hectares of land would
be given to the Chinese firm.
The land was being given to
the firm to cover its investment costs. This
included 20 hectares of land on an outright
basis while the rest of it was on a lease for
99 years.
India, ever since the incident in which
two Chinese submarines had docked in Sri
Lanka have been very concerned. This port
deal only added to the worries of India.
India has said in the past that there are
security concerns attached to this deal. A
large number of cargo ships which are India
bound have to pass to this port in Colombo
and with the Chinese investments over here

there is a great deal of security risk involved.
The part where 20 hectares of land has
been granted on an outright basis is the basic
area of concern. With the Chinese having
absolutely control over the 20 hectares there
are security issues that have worried India.
Sri Lanka has decided to review this
project. The new government has questioned
the granting of land on a freehold basis
especially in a high security zone.
Sri Lanka's new Prime Minister
RanilWickremesinghe had also assured
India keen to develop Chabahar

port, Narendra Modi tells Iran
rime Minister Narendra Modi told Iran that India is keen to help
develop the strategic Iranian port of Chabahar, seen by India as offering
an alternative route to landlocked Afghanistan and resource-rich
central Asian countries. India keen on working with Iran on Chabahar
port, Modi told Akbar Torkan, chief adviser to the Iranian president Hassan
Rouhani at a meeting on the sidelines of the Vibrant Gujarat economic
meet in Gandhinagar, according to a Twitter post by Indian foreign ministry
spokesman Syed Akbaruddin.
India and Iran had agreed to look at developing the port in southeastern
Iran in 2003 during a visit to India by then Iranian President Mohammad
Khatami, but the venture has not made much progress. The Chabahar port
on the Gulf of Oman is 72km from Pakistans Chinese-constructed port of
Gwadar, built as part of a plan to open up an energy and trade corridor from
the Gulf to western China. It has the capacity to handle 2.5 million tonnes a
year, which Iran would like to increase to 12.5 million tonnes. Iran has made
the area adjacent to Chabahar town a free-trade zone hoping to spur growth
in its poor southeast.
Given its often hostile ties with Pakistan, India views the port as an
alternative route not only to Afghanistan, but also to the resource-rich,
landlocked countries of central Asia. The proposal to develop Chabahar was
revived about two years ago, with India committing $100 million for its
development last year. A visit to India last year by Iranian foreign minister
JavadZarif was also key to providing momentum to the discussions on the
subject. Though ports and infrastructure were not targeted under sanctions
against Iran for its suspect nuclear programme, the prospects of doing
business with an international pariah was one of the factors that led India
drag its feet on the project. India has spent $100 million on building a 220km
road in western Afghanistan to link up with Chabahar.
during his campaign that

this project would be
scrapped if his party came
to power. He said that this
deal seemed to be outright
in nature and some tender
procedures had not been
followed.
Although
certain
projects are under review,
it will not be possible for
Sri Lanka to do away with
China entirely. Sri Lanka
will continue to take the
services of China to boost
its economy.
However,
the
difference would be that there would
be a tender process followed and more
transparency involved in the entire exercise.
There will be no outright granting of land on
a permanent basis to China.
Indian analysts say that Sirisena would
take a more balanced approach when
compared to Rajapaksa. He will invite
countries to help boost the economy and
not play countries against each other as
Rajapaksa had been accused of doing with
China and India.
Nearly 600 Truck Drivers Clash

With Cops Near Navi Mumbai,
Police Vehicle Torched
early 600 truck drivers in a village in Maharashtra's

Navi Mumbai clashed with police near the Jawaharlal
Nehru Port Trust on Sunday in Sonari village in Navi
Mumbai's Uran. Twenty eight people have been arrested.
A police vehicle was torched and five policemen were
injured. One of them was an Assistant Commissioner of Police.
The violence was triggered by an argument that broke
out between the truck drivers and police. The police were
called to the area to control the agitating drivers. Navi
Mumbai International Airport to Be Operational by 2019:
DevendraFadnavis Woman Accuses Vijay Chougule, District
Chief of Shiv Sena in Navi Mumbai, of Rape
The local police say the situation is tense but under control.
"Our priority is to clear the road. We do not want to
escalate the situation. We are trying to contact the truck drivers
who have run away from the spot," Navi Mumbai Police
Commissioner KL Prasad said. Agitating truckers have been
on the road for the last three days after a slowdown at the GTI
terminal as the workers were having a dispute over wages with
the management.
Senior police inspector Rajesh Dewresaid "We suspect
some angry truck drivers were behind the incident. They
may have been drunk too. We have sent them for medical
tests." State Reserve Police Force and the Rapid Action Force
personnel are at the spot. Police officers too held a meeting
with port officials to bring an end to the impasse as soon as
possible.
February 2015
17
NATIONAL NEWS
` 5 lakh crore investment in road

building in 5 years: Nitin Gadkari
itin
Gadkari,
union
transport
minister
announced that a whopping
sum of ` 5 lakh crore would be
invested in the road sector in the
coming five years."In five years,
there will be investment of `5 lakh
crore" in the road sector, Gadkari
said while inaugurating the eighth
Rubber Expo and Tyre Show (IRE) in the national capital.The minister
said from building mere two km roads a day, the new government would
build 30 km roads a day in two years.Underlining the enhanced role
of the private sector in infrastructure projects through public-privatepartnership (PPP), he said the government would extend full support
to the industry, including lowering of interest rates.The government is
taking a number of steps to boost infrastructure projects he said, adding,
"We want to build more ports. We are going to increase the port capacity
using the PPP route."
Gadkari also said that the government is determined to significantly
lower the number of deaths due to road accidents."This number at
present is very high. There are five lakh road accidents in which 1.50
lakh (rpt) lakh people lose their lives. We want to improve quality of
roads. We are sincere and determined to reduce accident deaths," he
said.The Motor Vehicles Act is also being amended to make road
journey safe and procedures simplified and transparent for licensing,
and road permits etc, he said adding the government would encourage
use of technology in making the road journey safe.
Speaking at the event, All India Rubber Industries Association
President Mohinder Gupta said that a number of steps are needed from
the government to boost the sector.
He suggested a separate Rubber Commissioner to look after
interest of the consumer industry and formation of a separate Export
Promotion Council for the rubber products besides duty free imports of
raw materials which are not manufactured in India.High import duty, as
much as 20 per cent on natural rubber has been an area of great concern
for the industry, he said. The three-day rubber expo is showcasing India's
prowess in the rubber industry in its various facets.
A total number of 325 exhibitors are participating in the show with a
strong presence from the UK, France, the US, Italy, Germany, Vietnam,
Sri Lanka and Taiwan, China, South Korea and Malaysia.
18
February 2015
SOHAR eyes role expanding

role in packaging industries
OHAR Port and Freezone plans to take full advantage of the

expansion of its petrochemicals industries in order to attract
downstream plastics manufacturers to the logistics hub ahead
of the construction of Omans first dedicated agricultural terminal.
This was the message delivered by SOHAR officials to industry
leaders and experts at arabplast 2015 and GPCA PlastiCon 2015
trade shows, both held in Dubai this week.
With the planned construction of an agricultural terminal
and anticipated influx of grain products that will accompany its
completion, our aim is to attract new investment in food and food
processing industries and create a cluster than can feed the region.
Grain silos and a sugar refinery are already in the pipeline, and as
this sector grows, the opportunities for packaging companies to
serve multinational businesses will grow.
We are pleased to see the response that we have had to the
news that more than 1.5 million tonnes of environmentally-friendly
packaging materials will soon be produced at SOHAR, led by Oman
International Petrochemical Industry Company. This will centre on
production of PET typically used in the manufacturing of singleserve beverage and soft drink bottles, said Executive Commercial
Manager, Edwin
Lammers.
In addition,
the
Liwa
Plastics Project
will
provide
polyethylene and
polypropylene
to
packaging
companies
interested
in
setting
up
operations
at
SOHAR. This US$3.6 billion steam cracker project is being
developed at SOHAR by Oman Oil Refineries & Petroleum
Industries and will be integrated with the existing refinery,
aromatics plant, and polypropylene plant. But packaging is not the
only option, according to Mr. Lammers.
The link between food and plastics is clear. The global
packaging industry will generate US$975 billion in sales by 2018,
and 60 percent of that will be created in the food industry. Thirty
percent of packaging is made from plastics, and 90 percent of the
regions foodstuffs are imported. Much of this is pre-packaged
elsewhere at a higher cost and our aim is to leverage our low-cost
energy resources to reduce that cost.
However, packaging is not the only option available to potential
investors. High density polyethylene and PET can be extruded for
use in large-scale water and other types of piping, for example.
This bodes well for the regions construction industry, though we
do not envision SOHAR being able to supply this industry just yet.
Nevertheless, all of the plastics that will be produced at the port
remain extremely versatile, he said.
On show at Dubai World Trade Centre from 10-13 January
2015, the SOHAR stand at arabplast 2015 was a joint construction
undertaken with Oman Oil Refineries & Petroleum Industries.
More than 25,000 visitors from over 100 countries attended the
event, with hundreds enquiring about the investment opportunities
on offer. A similarly positive response was received at PlastiCon
2015, held between 11-12 January 2015.
February 2015
19
NATIONAL NEWS
Third Party Logistics market in India to reach ` 48,000 crore by 2019
he Third Party Logistics (3PL) market

in the country is expected to touch
` 48,000 crore by 2019, mostly
fuelled by outsourcing especially in retail,
pharmaceutical, according to a survey.
"The Indian 3PL market is geared for
a robust growth during 2014-2019. It is
anticipated to grow at a CAGR of 21% to
touch ` 48,000 crore over the period 20142019. The 3PL market growth is fuelled by
factors like the inclined outsourcing by Indian
companies and many MNCs particularly
in retail, pharmaceutical, automobile and
FMCG sectors," according to a report by
research and consultancy firm RNCOS.
The government's investment towards
development of freight corridors, ports
and highways, increasing demand by
pharmaceutical industry and significant
growth of e-commerce industry will be other

growth drivers for the sector, it added.
The third-party logistics has been proved
to be successful in enhancing logistics
efficiency of many organisations and rapidly
gained popularity while spreading across
the country, the report pointed out. "The
3PL players are emphasising more on the
technological upgradation to engage with
the customers and also points out a trend of
Fourth-party logistics (4PL) that is emerging
to support the 3PL business in the country.
The concept of 4PL is expected to catch
momentum over the coming years and it is
expected to address the strategic failures of
3PL services and proposes the opportunity
to achieve incremental benefits," RNCOS
Founder SushmulMaheshwari said.
Majority of overall market of third-
party logistics is organised and it has

been observed that it is utilised mainly in
industrial and automobile sectors followed
by pharmaceutical, consumer products and
retail. As most of the revenue in the industry is
contributed by big players, share of organised
segment is expected to rise in future due to tieups and mergers and acquisitions which are
anticipated to be more within domestic and
international third-party logistics companies,
it said.
However, there are challenges like low
flexibility of third-party logistics systems
to model different clients supply chain
needs, congestion in ports due to less
storage capacity, poor transport vehicles,
jammed roadways and ports causing delay
in movement of goods and lack of quality
manpower that needs to be addressed, it said.
Indian Railways needs Investment from All Possible Sources

for Speedy Development of Infrastructure: Suresh Prabhu
peaking at the 15th National Seminar

on PPP and FDI in Indian Railways
Minister of Railways,
Suresh Prabhakar Prabhu made a strong
pitch to formulate the growth plans for
Indian Railways on the basis of new ideas
and innovative decisions to suit to the current
realities. The need of the hour is
to understand the symptoms ailing
the organization first, correct
identification of the problem areas
next and then drawing up the
required prescription for solution,
he stated.
Noting that there are large
number of demands from people/
public representatives for new
rail lines and more number of
train services, Prabhu stated
that the present infrastructure of
Indian Railways is inadequate
to cope up with these demands.
The immediate requirement is
to enhance the capacities on railways to
decongest the routes and vertical expansion
in cities towards upgrading the network /
infrastructure, he added. As money is needed
to modernize Indian Railways and also
keeping in view the present fiscal constraints,
Railways has to explore all possible means
to mobilize resources to develop a high class
infrastructure to cater to the future needs,
stressedPrabhu. He highlighted that Indian
Railways needs investments both financial
and technological - from various sources both
within and outside. Towards this, Railways
is exploring to draw investments from new
sources such as foreign pension funds and
other institutions, he stated.
20
February 2015
The Railway minister further stated

that Indian Railways is never going to be
privatized and that it continues to be owned
by the Govt. of India. The driving wheel of
Indian Railways will firmly be in the hands
of Railway Ministry only. Describing the
task of upgrading and modernizing Indian
Railways as a National challenge, he stated
that it is in the interest of Indian Railways

and its Employees that investments from all
sources should be mobilized for this task. He
emphasized that any decision being taken by
the Govt. on PPP / FDI etc. is clearly aimed at
enabling growth of Railways and the economy.
He cautioned that there should not be any
communication gap with the employees on this
subject and that the interest of railways will
be paramount in any new policy decision. He
further stated that efficiency and productivity
in railway working shall also be improved to
generate more revenue. Prabhu also spoke
of plans to induct the best of technologies to
modernize Railways duly involving scientific
and research organisations such as DRDO
and ISRO. E. S. L. Narasimhan, Governor

of Telangana and Andhra Pradesh stated in
his address that Indian Railways has come a
long way from the earlier days to evolve as a
modern transport system offering improved
options and facilities. However, keeping in
view the need to meet the future demand, it is
rightly in the interest of Indian Railways that
PPP and FDI should be encouraged,
he stated. Noting that the FDI
guidelines clearly identify the key
areas for investment, he stressed that
prioritization is very important so
that the resources are spent in areas
which fulfil the needs of common
man. He stressed that removal
of Unmanned Level Crossings,
providing safe and secure travel,
cleanliness and hygienic catering
services on Railways should be given
due priority. Earlier, D.P. Pande,
Member/Traffic, Railway Board and
President, CTRAM in his address
stated that Indian Railways is at the crossroads,
unable to meet the present demands due to
resource crunch. He said that a staggering
amount of ` 1.18 lakh crores is needed for the
completion of 359 major sanctioned railway
projects. The need of the hour is for a fresh
outlook and innovative thinking to generate
required resources, he added. P.K. Srivastava,
General Manager, South Central Railway, in
his address expressed confidence that the daylong seminar will present a broad framework
to aid in policy making on the issue of PPP/
FDI in Indian Railways as a large number
of eminent personalities representing the
Public sector, Private sector and Railways are
participating in the deliberations.
NATIONAL NEWS
BNSF Logistics and TTS cut

wind blade transport costs
NSF Logistics (Flower Mound, TX, US) announced the successful testing of its
innovative new fixtures developed to move wind turbine blades more efficiently. The
Blade Runner service is a universal fixture designed for rail and ocean transport to
optimize movement of wind components between any two points in the world. With the
ratio of logistics costs for Wind projects running at nearly 2X other industries, and with
strong interest from manufacturers, developers and OEMs seeking options for handling
increasingly longer blades, BNSF Logistics teamed up with Energo (Houston, TX US), an
engineering and design company with a long history in the Wind sector. Together, they have
developed transport fixtures that will greatly increase efficiency and drive down logistics
costs. The developed fixtures (patent pending) and handling solutions will benefit customers
for both international and U.S. domestic moves.
Using the same technology for ocean, rail, truck and storage will allow blades to move
without the need for attached fixtures, which have historically been both expensive and
difficult to manage. "The Wind Energy sector has depended on decade-old methods that
are increasingly irrelevant as global sourcing and the size of blades increase, says Ray
Greer, BNSF Logistics president. Our universal fixtures for both ship and rail transport
modernizes the wind logistics industry and will unshackle current logistics constraints
facing the industry, getting the wind industry closer to that critical self-sustaining cost level.
The universal rail fixtures are designed to handle blades of all sizes including increasingly
longer blades inside the clearance windows required, making rail a viable option versus truck.
This is a critical development as truck capacity is projected to be a real challenge as wind
projects accelerate in 2015 and beyond. Multiple rail tests were conducted on blades over
45m in length at the Port of Corpus Christi, TX, US. The results showed a 35% improvement
of clearance envelope
making rail a viable
mode choice for almost
any
North American
destination.
After
successful
testing of the new ocean
blade stowage design,
BNSF Logistics estimates
stowage rates to increase
by a minimum of 25% over
existing
configurations.
Additional
efficiencies
and direct cost reductions
have
been
validated
and details shared with
potential
customers
under
confidentiality
agreements.
Industry feedback has been extremely positive. John Billingsley, CEO of Tri Global
Energy, says, Reducing all-in project building costs is an essential goal in the highly
competitive electric utility power generation industry. Reducing logistics costs in our
wind energy projects by using BNSF Logistics new shipping solutions will have a very
meaningful impact on achieving that goal.
Use of the new fixture designs is expected to begin in the second quarter of 2015 and
will ramp up as quickly as manufacturing of the fixtures will allow. The impact on costs and
efficiency will be realized immediately and could make previously unattractive areas more
viable for wind project development.
Meanwhile, Transportation Technology Services (Southlake, TX, US) has developed its
HD (High Density) Universal Blade Train fixture and configuration allows customers to ship
48 blades of 50m length on a single 72 car unit train. The newly designed stacking tip stand
on the HD Universal blade train resulted in a 33% load increase over previously used loading
methods reducing shipping costs. The first two HD Universal blade trains successfully
delivered blades from Corpus Christi, TX to a wind farm in Kansas in the fall of 2014.
Currently, there are two of these trains moving, and there are plan to additional ones in 2015.
Maersk launches
high speed service
to Africa at MICT
undra
International
Container
Terminal
celebrated
another
milestone with the berthing of
Maersk Lines new direct service MESAWA,
the fastest service from Mundra to South and
West Africa. This will be a weekly service from
Jebel Ali, Mundra and NhavaSheva to South
and West Africa. The service commenced
on January 24, 2015 from DP Worlds Jebel
Ali port. To commemorate the first call of
MESAWA, a function was held on board the
vessel on today.
With this service, Maersk Line intends
to reduce the transit time on the trade route.
This service offers a reliable & efficient link
between India and Africa.
The Maersk Line-operated weekly service
is scheduled to call at MICT every Tuesday.
It will deploy ten 3,500-TEU vessels with the
following port rotation: Jebel Ali, Mundra,
NhavaSheva, Durban, Luanda, Apapa, Tincan,
Cotonou, Port Elizabeth, Durban, Port Louis,
Jebel Ali.
Tejas Nataraj, CEO, Mundra International
Container Terminal thanked Maersk Line
for choosing MICT for their new service MESAWA. He also added, We, at MICT,
will continue to deliver the best service to our
clients.
We are proud of our consistent 30 plus
moves per hour crane productivity, reducing
port stay. We hope to continue this success
while delivering world class service to our
clients.
Adani Ports' Q3 net

up 14% at ` 512 cr
dani Ports and SEZ Ltd (APSEZL),

Indias largest port developer and a
part of conglomerate Adani Group,
reported a 14 per cent increase in consolidated
profit after tax (PAT) and 38 per cent rise in
income in the third quarter of fiscal 2014-15,
ended December 31, 2014, compared to the
corresponding period previous fiscal.
While the companys income was `1,701
crore (` 1,236 crore), its PAT stood at `512
crore (` 451 crore), according to a company
statement here.
Consolidated cargo volumes for Q3FY15
increased by 33 per cent to 39 million tonnes.
These results include the results of Dhamra
Port Company Ltd, which APSEZL had
acquired in June 2014, said Gautam Adani,
Chairman, Adani Group.
February 2015
21
FUTURE OF LOGISTICS
DRIVERLESS TRUCKS
By Yashank Chopra
n this fast changing world, technology has spread its wings to almost every possible aspect; be
it moving humungous freight cargos or manufacturing the tiniest needles. Now engineers are
working to facilitate the need of logistics players by making self-driving trucks which would easily
transport cargos from one place to another without the need of a human driver.
Automobile giants like Renault, Mercedes, and Volvo are developing solutions for making their selfdriving trucks to transport goods by truck in a driver-less manner. The trucks will use a coordinated
system of top notch technologies to dodge the obstacles and drive hassle free.
The ingenious technology would be a huge step forward in the logistics world. According to sources,
Truckers moved nearly 70 percent of all freight transported in the US, which certainly shows that
trucking industry is backbone of global logistics. Without it, there would be no retail as we know it.
But moving billions of tonnes of freight is no easy task. To do so, truckers need to eat, rest and be
alert during the whole trip. The trip itself has to be as fast and as cheap as possible. Otherwise,
logistics would become useless or too dangerous to drivers; and that is where technology jumps in.
These autonomous trucks would be capable of fulfilling the transportation capabilities of a
22
February 2015
traditional one. As an autonomous vehicle, it would be capable of sensing its environment and
navigating without human input. Robotic trucks, until now, exist mainly as prototypes and
demonstration systems. These trucks sense their surroundings with such techniques as radar, lidar,
GPS, and computer vision. Advanced control systems interpret sensory information to identify
appropriate navigation paths, as well as obstacles and relevant signage. By definition, autonomous
vehicles are capable of updating their maps based on sensory input, allowing the vehicles to keep
track of their position even when conditions change or when they enter uncharted environments.
Volvo has joined European backed project SARTRE that aims to make highway driving safer with
the help of road trains. Simply put, car and truck drivers can join a group led by a professional
driver. While in this highway group they can relax and the cars will do most of the work by just
mimicking the leader car. This will mean fuel efficiency, safer roads and of course longer trips which
logistics companies could really use. The video below shows a demonstration on how cars can connect
through wireless technology and copy the leader car movements. The technology could hit the roads
as soon as 2020, if legislation is in place.
February 2015
23
INTERNATIONAL NEWS
U S Diesel Prices Fall for Ninth Straight Week
iesel prices in the U.S. declined for

a ninth straight week, their longest
losing streak
on record, as continued
moderate weather in
the Northeast kept
heating-oil
demand
subdued.
Front-month
futures for ultralowsulfur diesel, which
are also used as a
proxy for heating oil,
have dropped in recent
months
alongside
plummeting crude-oil prices. Crude oil is
refined into diesel, among other fuels.
While diesel is mostly used as a
transportation fuel, cold-weather demand for
heating oil can cause diesel futures to spike in
the winter. Prices rose 6.6% in January 2014
as frigid temperatures spread across much of
the nation.
This year, temperatures have been
mild and refinery
production is high.
Consumers in the
Northeast,
where
heating-oil use is
most common, are
already
enjoying
the lowest prices
in four years. And
diesel costs could
fall further, analysts
say, as a global
oversupply of oil
continues to weigh on crude prices.
Diesel for February delivery fell 4.7% last
week to end at $1.7957 a gallon, the lowest
closing price since Oct. 7, 2009.
Prices have retreated 29% over the past
nine weeks, the longest streak of down weeks
ever, according to data going back to 1979.
said in a communique that the situation is

"completely against" its desires and demanded
an agreement between the parties involved in
the fishing dispute "so that the vessel and its
passengers may leave the port and continue
their trip."
ibyan air force jets have bombed a

Greek-operated oil tanker chartered
by Libya's national oil company,
killing two crew members. A Libyan
military spokesman told the BBC that the
ship's movements at the port of Derna had
aroused suspicion. The oil company rejected
this, saying the ship was delivering fuel to
industrial facilities there and the authorities
had been kept informed. Derna has been
controlled by Islamist militants for the past
two years.
The Libyan military attacked the port
several times last year in an attempt to
weaken militant groups there. The military
spokesman, Colonel Ahmed Mesmari, said
the tanker had been targeted because it had
failed to submit to an inspection before
entering the port.
He said the vessel was supposed to dock
at a power plant in Derna but instead "took
a different route", entering a "military zone".
"We asked the ship to stop, but instead it
turned off all its lights and would not respond
so we were obliged to strike it. "We bombed
it twice," he said.
Libya's National Oil Corporation said the
tanker had picked up 13,000 tonnes of heavy
fuel oil in Brega, a port south of Libya's second
city, Benghazi, which it was due to deliver to
a power plant and water purification facility
in Derna. It said the vessel was attacked
before it could enter the port to unload its
cargo. There were 26 crew members on board
the ship, Araevo, including nationals from
the Philippines, Greece and Romania. Two
were injured in the attack, in addition to those
killed.
away from the port, secured and marked for

future salvage operations.
There was no direct impact on the
operations within the Port of Salalah and
there were no injuries or loss of life as a result
of the blaze.
An investigation is ongoing by the Port
to determine the cause of the blaze and to
work with the Dhow boats to prevent such
incidents from occurring in the future.
The Port of Salalah caters to over 45
wooden traditional Dhows from East Africa
each month providing a crucial link for East
Africa to the Omani Market via the Dhofar
province.
The Dhows typically bring Livestock
from East Africa to Oman and take back
many essential consumer items from the local
Omani Market.
The Port remains dedicated to servicing
this emerging market and facilitating the
economic ties between Oman and East Africa.
Brazilian Fishermen's Protest Stalls Container Port
protest by Brazilian fishermen in the

southern state of Santa Catarina has
been preventing the departure for
Uruguay and Argentina of a cruise ship with
1,800 tourists on board.
More than 100 fishing boats have been
blocking the Itajai Port Complex canal, on
the northern coast of Santa Catarina, and the
fisherman are demanding the nullification of
a measure implemented by the Environment
Ministry prohibiting fishing for certain
endangered species.
The cruise ship Empress, with capacity
for 1,877 passengers and 645 crewmembers,
set sail from the port of Santos, in Sao Paulo
state, and was scheduled to stop in Montevideo
and Buenos Aires before returning to Brazil.
The cruise ship's operator, Pullmantur,
Greek oil tanker

bombed in Libyan
port of Derna
Somali Dhow catches fire and sinks near Salalah Port
Somali Dhow sunk off the coast of

Oman one day before the new years
eve after being caught on fire.
Shortly after midnight on 30 December,
a Somali flagged wooden Dhow, the Al
Yaasiin, caught on fire while at anchorage
after offloading Livestock at the Port of
Salalah in Dhofar Province.
The Port of Salalah Fire Fighting Tug
boat team and the Omani Coast Guard were
immediately deployed to the site and were
able to assist with the safe evacuation of all
of the 15 crew members to a nearby fishing
vessel.
The fire was contained to the single vessel
and was fully extinguished by 6am. The
damaged vessel was towed to a shallow area
24
February 2015
INTERNATIONAL NEWS
Saudi Cargo flies

B747 freighters
thrice weekly from
Riyadh to Milan
audi Airlines Cargo has launched a

thrice-weekly freighter service from
Riyadh to Milan, deploying a new B747
freighter. This will offer regular connections
to its range of Asian destinations from Italy's
economic hub and fashion capital. Saudi
Airlines Cargo Chief Executive Officer (CEO)
Nabil Khojah said that "By operating direct

freighter flights into Malpensa we are offering
first-class connections from our entire network,
including Hong Kong, China, Bangladesh and
India, right to the industrial centre of Italy,
thus proving our commitment to the Italian
market. Saudi Airlines Cargo operates a
fleet of 15 freighters and bellyhold space on
Saudia's 145 passenger aircraft, which now
link to a global network of 225 destinations.
Maximus donates Ilyushin aircraft

to Huda relief efforts
bu Dhabi-based Maximus
Air, one of the biggest allcargo air freight operators
in the Middle East, has donated one
of its aircraft to support a regional
humanitarian campaign launched
by President His Highness Sheikh
Khalifa bin Zayed Al Nahyan.
The campaign will focus on
providing urgent relief to the
hundreds of thousands of refugees
in the Levant region, where
heavy rain, snowfall and sub-zero
temperatures are forecast to follow
the arrival of winter storm, Huda.
The campaign, named Tarahuma,
has received widespread praise from the
global community and leaders, including
Save the Children. Having also garnered the
support of the office of the Crown Prince of
Dubai, a national committee has been formed
and has set itself the target of assisting a
million refugees.
"We are responding to a call made by His
Highness the Head of State for all sectors of
society to provide immediate assistance to

our brothers in Levant. Our diverse fleet is
unique in the region, in both its experience
of providing humanitarian assistance, and
also in its ability to navigate remote landing
strips. Maximus therefore decided to donate
an Ilyushin flight that will deliver 45 tonnes
of winter clothing and heaters from Sharjah
international Airport to Marka Airport in
Amman, Jordan.
Uber For Logistics Startup Lalamove Lands

$10M To Expand In China And Southeast Asia
alamove, an Uber-like service

for logistics, has raised $10
million to expand its presence
across Asia, where it already
operates in six cities.
The company, which began life
in Hong Kong in December 2013,
offers iOS and Android apps that
allow customers to move items
across a city using its network of
regular drivers. Its business model
is basically akin to an Uber for
logistics since anyone with a valid
license and car can sign up to be a
driver.
The $10 million round is led
by Chinas Crystal Stream Capital,
and it includes participation from
Geek Founders, Mindworks Ventures, Sirius
Venture Capital and Aria Group. Lalamove
said a number of unnamed individual
investors also took part.
Executive Blake Larson told TechCrunch
in an interview that the money will be used
to strengthen its position in its existing
markets: Hong Kong, Singapore, Bangkok,
Taipei and as of last week Guangzhou
and Shenzhen. The capital will also be used
to further penetrate China and enter more
parts in Southeast Asia.

Larson said Lalamove is planning to
expand into the most obvious cities there.
Last mile logistics booming in Southeast
Asia. We find the region interesting because it
is still so fragmented but any time there are
these challenges there is a higher reward for
solving them, he added
In China, Lalamove has joined the
growing legions of on-demand startups
to tap WeChat after it made its service
available inside the Tencentowned messaging app. Uber

rival DidiDache saw plenty of
success after putting its taxi
hailing service into WeChat, as
have other food delivery and
retail services.
This year is about
proving that our model works
in different cities, Larson,
who leads Lalamove outside
of China, added. The former
Rocket
Internet
executive
explained that the company will
raise more capital in 2015 but is
always open to hearing from
potential new investors.
Lalamove, which is known
by its original name EasyVan in China and
Hong Kong and has over 60 staff, is rivaled
fellow Hong Kong startup GoGoVan.
GoGoVan raised $6.5 million round and took
an additional $10 million investment from
Chinese social network Renren last year.
Lalamove embarked on its expansion
late last year, but GoGoVan is still to branch
out. The companys U.S.-educated founders
recently revealed plans to move into Japan,
China and Southeast Asia this year.
February 2015
25
INTERNATIONAL NEWS
ABF Logistics Acquires Smart Lines Transportation Group
BF Logistics, an ArcBest company

(Nasdaq: ARCB), announced it has
acquired Smart Lines Transportation
Group, LLC, a privately held truckload
brokerage firm based in Oklahoma City,
Okla.,
effective
January 2, 2015, for
$5.17 million in cash.
Smart
Lines,
founded in 2003, has
24 employees and
approximately
$18
million in annual
revenue,
primarily
serving the food,
energy and industrial
segments.
The acquisition will expand ABF
Logistics into the Oklahoma City market.
"The purchase of Smart Lines Transportation
Group is an important step in our strategy to
grow the emerging businesses at ArcBest and

provide a variety of supply chain services
to our customers in the way they expect,"
said ABF Logistics President Jim Ingram.
"We believe the talent pool in Oklahoma
City is vibrant and thriving, making it an

ideal location for ABF Logistics' first branch
outside the Fort Smith area. We have plans
to aggressively expand this branch and are
excited about the growth prospects ahead."
Thailand to start USD 12.2-billion

railway project in September
hailand will begin building a

400-billion-baht (USD 12.22-billion)
rail project jointly with China in
September, a deputy prime minister said, one
of several big ticket schemes the government
hopes will stimulate the flagging economy.
Thailand and China agreed in December
to build the rail line from the Thai border
with Laos to the ports and industrial zones in
Thailand's east. China has ambitious plans for rail links from Kunming through
Laos to Thailand, and Thailand wants to modernise its ageing rail network.
The project could be a boon for Thai trade and tourism and strengthen China's
strategic foothold in a country that has seen its traditionally strong ties with the
United States cool since a military coup in May. "We expect it will cost about 400
billion baht and will be completed within two and a half years," said deputy prime
minister and transport minister Air Chief Marshal PrajinJunthong. Two rail lines
are included in the project. More than 700 km of track will connect the city of
NongKhai on the Thai-Laos border with Bangkok and Thailand's industrialised
eastern seaboard. Work on the first phase linking Bangkok to Saraburi and
Saraburi to the port of Rayong on the Gulf of Thailand is set to begin on Sept. 1.
Construction of the second phase to Thailand's northeast will begin on Dec. 1.
Greg Roush, who founded Smart Lines and

served as president, has been named branch
director of the Oklahoma City location, now
officially known as ABF Logistics. He has 30
years of experience in the trucking industry,
primarily in the truckload
segment.
"Smart Lines is a natural
fit for ABF Logistics as
we both promote a strong
customer centric focus,"
Roush said. "Our current
and future customers are
gaining greater access to
more resources through
ABF Logistics and its sister
companies ABF Freight and Panther Premium
Logistics. We're excited to become part of the
broader ArcBest team, with its reputation for
going above and beyond to solve complex
transportation needs."
UPS expands freight network,

adds 12 pallet destinations
PS is expanding its Worldwide Express Freight

service by adding 12 new origin and nine
destination countries for palletised express air
freight shipments, weighing more than 150 pounds as the
International Air Transport Association (IATA) expects
volumes to grow 4.5% in 2015. The Atlanta-based UPS
now offers its time-sensitive door-to-door freight service
to 50 origin and 51 destination countries and territories, a
statement said. It first launched the service in January 2013.
Countries adding origin service include Chile, Greece,
Indonesia, Israel, Liechtenstein, Luxembourg, New
Zealand, Portugal, Puerto Rico, Slovakia, Turkey and
Vietnam. International marketing vice president Nick
Basford said the service "helps customers get everything,
from parts to finished goods, to more destinations fast,
enabling businesses of all sizes to better compete on a
global scale". The freight service, which speeds most
goods to destinations within two days, offers many of the
same features as the company's worldwide express package
service including automated shipment preparation, online
tracking and proactive notification technology and customs
brokerage.
CSX rail 2014 profit rises 4.2% to USD 1.9 billion as revenue slips 5.5%
SX, the No 3 railway in the US, posted

a 4.2% increase in 2014 net profit to
USD 1.9 billion, drawn on revenues
of USD 12.7 billion, down 5.5%. The eastern
American Class I railway also posted a 15%
fourth quarter net profit increase to USD
491 million, drawn on revenues of USD 3.2
billion, up 5.6%.
The Jacksonville-based company said
it expected a strong increase in its freight
business and double-digit earnings growth in
2015. Chief Executive Officer (CEO) Michael
Ward said that "We expect to continue
26
February 2015
growing our intermodal and merchandise

businesses faster than the economy, pricing
above inflation, and driving efficient asset
utilisation. CSX's oil costs fell 13% to USD
361 million as global prices fell.
But while it paid less for fuel its main
revenue driver oil shipments to east coast
refineries were affected "due to increased
supply of crude oil from domestic shale
drilling activity". Like the other major US
railroads, CSX has been playing catch up
with an unexpected rise in demand over the
past year as the economy has grown, adding
locomotives and crews to handle more freight.

CSX's intermodal volumes increased five per
cent in the fourth quarter driven by strong
domestic demand. However, international
volumes were sluggish, with 1% growth as
a result of market loss. Tightening trucking
capacity and strong growth at customers
helped domestic intermodal volumes increase
9%. Ward: "This quarter's performance is
further evidence of CSX's ability to further
capitalise on economic growth, helping to
drive strength across the companys diverse
markets.
INTERNATIONAL NEWS
14 Feared Drowned As Cargo Ship Capsizes in Lake Tanganyika
OURTEEN people from Burundi are

feared dead after the cargo ship they
were sailing in sank in Lake Tanganyika
near Kala village in Nkasi District, Rukwa
Region. The Rukwa Regional Police
Commander, Jacob Mwaruanda, confirmed
the incident, saying it occurred shortly after
midnight of January 11, this year.
They were all members of the cargo
ship crew. According to the RPC, the marine
accident involved Burundi- registered MV
Mbaza. It had reportedly sailed off from
Kasanga Port in Lake Tanganyika in Kalambo
District in the region at around 11:45 pm. It
sank near Kala Village two hours later.
The cargo ship had 15 people on board
and 437 tonnes of maize. The RPC further
expounded that impeccable reports from the
Burundian owner of the ill fated cargo ship had

confirmed that the ship had 13 crew members
and two passengers. "A crew member of the
cargo ship was reportedly rescued by another
Burundian ship christened MvTenza that was
sailing to Burundi from Mpulungu Port in
neighbouring Zambia. However, until today
he has not yet regained his senses. This makes
it quite difficult to establish the real cause of
the accident," added the RPC.
It was alleged that the ship had two
captains who were identified as Manegure
Victor and Moyoni Simplicity. Reports from
the Kasanga Port had it that one of the staff
who carried out clearance of the ill fated cargo
ship confirmed that two hours after she had
sailed away, the weather changed suddenly,
causing the vessel to sink. The RPC said the
Saudi Arabia Climbs

rank 2 On Logistics Index
audi Arabia climbed to number two,

behind China, while Gulf states the UAE,
Qatar and Oman ranked top for market
compatibility on this years Agility Logistics
Index. The annual data-driven ranking of 45
emerging economies, found that the UAE led
in connectivity, ranking ahead of Malaysia,
China, Oman and Saudi Arabia in infrastructure
and transport links. In the overall index,

Kuwait slipped three spots to 21, amid need
for infrastructure investment and economic
reform and Bahrain fell two places to 24, still
dealing with the aftermath of sectarian tension,
according to Agility. Infrastructure investment
and structural reforms that improve the climate
for businesses have positioned Saudi Arabia,
the UAE, Qatar and Oman to weather the
downturn in energy prices, said Elias Monem,
CEO Middle East and Africa for Agility Global
Integrated Logistics. They continue to pursue
smart policies that will help them diversify and
make them more inviting to the logistics industry
as consumer markets and logistics hubs providing
high-value supply chain services. Other declines
were seen in Jordan, which dropped five spots to
29, and Lebanon, which fell two spots to 42, due
to the Syrian conflict. ZIn North Africa, Algeria
jumped three spots to 34, while Egypt dropped
from 28 to 32, despite signs the government was
halting its economic decline. The Index ranks
emerging markets based on their size, business
conditions, infrastructure and factors that make
them attractive for investment for logistics
companies.
breakdown in radio communications between

Kasanga Port and the ill-fated cargo ship
interfered with navigation. All other areas
along the Lake Tanganyika shore, including
Kala, Wampembe and Mpasa villages in
Nkasi District also lack reliable radio and
telephone communications.
The ship, according to other reports, was
allowed to sail at night from Kasanga Port
despite the fact that it lacked navigational aid
of any kind.
Commenting on the marine accident,
the Rukwa Region Officer in-charge of the
Surface and Marine Transport Regulatory
Authority (Sumatra), David Charagi, admitted
that the cargo ship adhered to all conditions
as by the port, including inspection and had
been cleared to sail off.
Port of Virginia volume rises 7.6% to

2.3 million TEU, setting new record
he Port of Virginia has posted a

year-on-year 7.6% increase in 2014
container throughput to 2.3 million
TEU, setting another annual record as it
did the year before. Virginia Port Authority
CEO John Reinhart said that "In 2014,
we moved 169,000 more Twenty Foot
Equivalent Unit (TEU) than we did in 2013,
which until now was our most productive
year on record.
"The focus is to continue to grow,
within reason and within our capabilities,
strive for consistency at our gates and
operations, maintain profitability and
do these things with a sense urgency

and responsibility," said Reinhart. "The
growth is a tribute to our team and our port
partners, but our enthusiasm is tempered, as
we are cognisant of the fact that we have
much work to do on building infrastructure
and developing processes to maintain the
business and grow the port."
"Our volume is tracking for a record
fiscal year as well: at the half-way point
were up 8%," Reinhart said. "We are
working to expedite service improvements
and maintain this positive growth across
The Port of Virginia."
Hamburg port handles first 19,100

TEU despite shallow Elbe
ort of Hamburg will for the first time handle
a 19,100 Twenty Foot Equivalent Unit
(TEU) ship, the CSCL Globe, deployed on
the Europe-Asia lane, and sparking urgent calls
for the dredging of the River Elbe. Experts are
warning that draft restrictions make it impossible
for newbuildings to sail on the Elbe fully laden,
meaning that part of the cargo has to left at rival
Rotterdam.
Shanghai's China Shipping Container Lines'
(CSCL) newbuilding was built at the Hyundai Heavy Industries shipyard in South Korea
to be followed by four sister ships in the next year. The 400-metre containership will
be discharging and loading 11,000 TEU during her first call at the Eurogate Container
Terminal in Hamburg. But managing director of China Shipping Agency NielsHarnack
stressed that the dredging and widening of the navigation channel on the Lower and Outer
Elbe is urgently needed to enable transport chains to run efficiently.
The AEX 1 liner service, on which she is deployed, serves the ports of Tianjin,
Qingdao, Shanghai, Ningbo, Guangzhou-Nansha, Shenzhen-Yantian, Singapore, Port
Kelang, Felixstowe, Rotterdam, Hamburg and Zeebrugge. Port authorities estimate that
box volumes originating in China will reach the three million TEU mark this year.
February 2015
27
COVER STORY
By Team TransReporter
ogistics has been a challenging but

growing industry in the Indian market.
Over the time, Logistics scenario in
the country has seen some drastic changes.
The demand of the logistics services has been
largely driven by the remarkable growth of
Indian economy.
India spends around 14 percent of its
GDP on logistics, which is higher than many
developed countries.
However, the sluggish growth of
infrastructure projects along with trade
28
February 2015
woes have led to some consolidation in

the sector starting last year. In spite of all
the impediments, India has come a long
way ahead from the traditional godowns
to multimodal transport, container freight
stations, inland container depots, coldstorage, and supply chain management.
Logistics: A crucial sector to economy
The logistics sector serves as the
backbone for several major sectors like
automobile, retail, pharmaceuticals etc. These
sectors have been progressively outsourcing
their third party logistics (3PL) so that they

can put larger share of focus into their core
business activities. Logistics in India faces
many problems which adversely impacts its
growth. Tax structure of India, growth across
major industry segments and emergence of
organized retail are a few factors impacting
logistics.
In spite of stringent government laws
and regulations, more and more players are
entering the industry which has attributed to
the growth of logistics.
COVER STORY
Previous year brought abundant reasons

to smile and frown. But 2015 will revive
Logistics worldwide. Looking forward to better
infrastructure, better policies, and better
demand.
A glance at strengths and weaknesses of

logistics in India in previous years
ost enterprises, by virtue of being

owner driven, tend to offer personal
commitment and quality services
to their clients, and it provides a comfortable
atmosphere to work and builds a strong bond
between client and the service provider.
Companies are at ease at filling up vacancies
in operations abundantly, which shows
availability of adequate labor.

With operations & agency network
of unorganized companies primarily
concentrated in a particular region, they enjoy
regional dominance and can provide services
at economical rates compared to their
counterparts. Low attrition, partly aided by
the current downturn, can be further exploited
by focusing on training & employee friendly

HR initiatives.
However, the fragmented nature, an
inherent weakness of the industry, can be
effectively addressed through consolidations,
partnerships, and segment specific forums
aimed at providing integrated services to the
clientele. Another common problem faced
February 2015
29
COVER STORY
by companies is that of limited access to

affordable credit, and can be overcome by
ploughing back profits (self funding) and
optimizing operations so as to qualify for
SME loans.
Shedding some light on the previous
year, Senior Vice President of Boxtrans
Logistics, IVS Muralidhar said that Major
developments in 2014 were related to
infrastructure. We saw more infrastructures
to handle containers. He also shared that he
expects the same from coming year.
Another vital issue which became a major
point of discussion in the industrial markets
of India is Goods and Services Tax (GST).
The tax, which was favoured by all states,
is still struggling to make its way through.
Anil Arora of M.J Logistics said Industry
is waiting for GST for last five to six years,
whenever it comes it will be a game changer
The long running talks and rumours of
privatisation of railways were hushed by
Prime Minister Narendra Modi In December
2014.Narendra Modi ruled out privatisation
of Railways saying that people must not be
wary of foreign and private capital being
utilised for improving infrastructure of the
national transporter which, in turn, will help
boost the country's economy.
He further cleared the air saying There
is a misunderstanding that Railways is being
privatised. However, I want to make it clear
that we are not privatising Railways. We
cannot go in this direction. You don't have to
worry. It is neither our wish nor thinking,"
Emergence of new cargo centres
Opportunities in the air cargo sector now
extend to Tier-II cities as well. Tier-II hubs
have witnessed a growth of 14.5% in air
cargo volumes between 2006 and 2011.
Rising local demand, improved
international connectivity and resulting
consolidation activity, and expanding cargohandling infrastructure are the key drivers
of increased freight handling at Tier-II city
30
February 2015
airports.
Though
India currently lags behind its global peers,
increased spending in airport infrastructure
through various airport projects is expected
to improve air cargo infrastructure across the
country. Investment in airport infrastructure
has grown substantially over the last 3 FiveYear plans
Ports: The Gateways to India
Growth of Non-Major Ports: With a
CAGR growth of 13% from 2007-08 to 201112 (compared to 2% for Major Ports), NonMajor ports have captured nearly 40% of the
volume of trade carried out by sea.
Capacity overruns at major ports, aided
by a substantial increase in the cargo traffic
of fertilizers, building material and coal, have
resulted in significant investments in the
development of non-major ports. Mundra,
Pipavav and Hazira ports are the frontrunners.
With Chinas emergence as Indias leading
trade partner, Indias Look East policy
and overcapacity at west coast ports, east
coast ports present significant development
opportunities. Non-major ports are expected
to contribute 57 % of total investments in
east-coast ports
Dedicated Freight Corridors
It is expected to mark a paradigm shift
in the transportation scenario, resulting from
the segregation of freight on trunk routes,
improving service delivery and generating

additional freight-carrying capacity.
There will be a reduction in unit cost of
transportation, guaranteed transit time and
improved service quality for a very focussed
overall approach Road: For Last-Mile
Connectivity. To encourage private players,
the Government has announced several
incentives such as declaring the road sector as
an industry, providing 100% tax exemptions
in any consecutive 10 years out of 20 years,
duty free imports of certain identified
construction plants and equipment, FDI of up
to 100%, and increased concession periods
Make in India campaign
Prime Minister Narendra Modi, in 2014,
announced the Make in India campaign to
attract businesses from around the world to
invest and manufacture in India.
The campaign has been concentrated
to fulfill the purpose of job creation,
enforcement to secondary and tertiary sector,
boosting the national economy, converting
the India to a self-reliant country and to give
the Indian economy global recognition. The
'Make in India' also attempts to enforce the
inflow of FDIin the country and improve
services by partial privatization of lossmaking government firms. The campaign
is completely under control of the Central
Government of India.
COVER STORY
A peek into the future: Logistics in 2015
his year is expected to bring strong

market for industries. With raging
Make in India campaigns, we can
expect a boom in the export sector. We
can expect foreign investment to increase
substantially,which would give a push to
markets. The other game changer in 2015
is expected to be the upcoming budget
2015. Lets take a peek into the future, and
apprehend the changes and developments in
this year.
Reduced documentation for exporters
Exporters in India can welcome 2015
with a smile as the revenue department has
agreed to reduce the number of documents
required for exports from five to three. This
is another attempt from government to make
it easier to do business in India and in line
with directorate general of foreign trade's
recommendation in the Trade-AcrossBorders' report. Once implemented, the
measure will put India alongside the US,
Canada, Japan, Singapore and the UAE in the
club of nations that require just three export
documents.
Govts steps towards growth
We can expect implementation of the
much talked about Goods and

Services Tax that can fasten the
creation of a common market place
and construction of centralized
warehouses.
Apart from that, the decision to
implement Electronic Toll Collection
(ETC) 2015 pan-India, is another
landmark development in the
infrastructure sector as it will make
the logistics sector more efficient and
financially better.Road Transport and
Highways Minister Nitin Gadkari
said that the electronic toll (e-toll)
collection system if introduced in
the country will help save Rs 88,000
crore and cut waiting time at toll
plazas significantly.
The latest government verdict
Words From Our Prime Minister
to abridge environmental clearance
Prime Minister Narendra Modi, in his speech
and land acquisitions norms, besides at the Vibrant Gujarat Summit, said that by 2030
addressing sector-specific challenges
India will be 5th largest exporter in the worldwhich
that delayed financial closures
for awarded projects, or impacted certainly shows the intent to rise in the export sector.
Talking further about the development programs
investor interest for new ones, has
given new motivation to infrastructure he said that we launched Make in India to encourage
development. The sector would also growth of manufacturing in country, we are working
do well to receive hard to make India a global manufacturing hub
huge private sector PM Modi also shed some light on the technology
investment and best sector; he said that we need highways and I-ways.
practices.
By I-ways I mean Information ways.
EXPECTATIONS
Year 2015 looks
the health of railways besides making it
like a promising year for efficient and increasing its share in logistics
e-commerce
companies;we further.
can expect e-commerce market
It is also expected that an average user
to hit the $25 billion mark, a will spend nearly `10,000 on e-commerce in
huge 50% jump from the $12- 2015, which will be a 67 percent raise from
13 billion revenues for 2014. last years ` 6,000. The overall e-commerce
Logistics market has been industry, valued at $17 billion, has been
growing at double digit rate growing at a compounded annual growth
annually, and it is expected to rate of about 35% each year, the study said,
reach revenues of $385 billion adding that it is expected to cross the $100
by 2015.
billion mark in five years.
We are hopeful that the
The Sr. VP of Boxtrans, IVS Muralidhar,
governments intent to boost said MCA condition in railways has been
PPP in the infrastructure sector pending from a long time, and it should be
to build new ports, enhance checked so that the market share is improved.
connectivity of existing ports, However, it is still hard to anticipate the
dedicated freight corridors, future as a lot depends on the government
multi-modal
transportation policies and implementations He further
systems and high speed trains added that We are further planning to
will boost the sector in the expand with launching more terminals. If
coming year by making it more all goes good we are planning to launch 2-3
efficient.
terminals in coming three years. With Make
Recent initiatives like in India, improving government policies,
increase in fares, privatization foreign companies showing more interest in
of railway stations and Indian markets, and fast pitching e-commerce
introduction of new wagons sector; we can surely expect a fruitful future
etc. are also likely to improve of logistics this year.
February 2015
31
32
February 2015
EVENTS
Delhi witnesses 8th Rubber Expo and Tyre Show
fter seven successful editions, the

Asias largest Rubber Expo reached
the capital this January. The 8th
India Rubber Expo and Tyre show was
organized in Delhi, in which global rubber
and tyre companies got a chance to showcase
their products, Chemicals & Raw Materials,
Rubber Machinery & Testing Equipment, and
Concurrent showcase of Tyre show. Special
pavilions from China, Korea, Malaysia and
Germany were seen at the venue.
The grand event was inaugurated by
the Union Minister Nitin Gadkari. While
addressing the audience, Gadkari made
some very important announcements in
his speech. He said that the government
is mulling investment of ` 5 lakh crore for
road development. He also said that road
development will see a dramatic boost in
recent future, and roads will be developed at
a rate of 30 km per day, against the current
scenario of 2 km per day.
The government is
taking a number of steps
to boost infrastructure
projects he said, adding,
"We want to build more ports. We are going
to increase the port capacity using the PPP
route." Gadkari also said that the government
is determined to significantly lower the
number of deaths due to road accidents. "This
number at present is very high. There are five
lakh road accidents in which 1.50 lakh people
lose their lives.
We want to improve quality of roads. We
are sincere and determined to reduce accident
deaths," he said. Speaking at the event,
All India Rubber Industries Association
President Mohinder Gupta said that a number
of steps are needed from the government
to boost the sector. He

suggested a separate Rubber
Commissioner to look after
interest of the consumer
industry and formation of a
separate Export Promotion
Council for the rubber
products besides duty free
imports of raw materials
which are not manufactured
in India. High import duty,
as much as 20 per cent on
natural rubber has been an
area of great concern for the
industry, he said.
The Expo witnessed
aggressive
participation
from the industries bigshots
as well as new entries.
Companies like JK Tyre, Apollo, Relflex,
ISRL, DESMA, TVS and others were
seen showcasing their goods
and services.
There were
exhibitors from India, China,
France, Germany, Italy, Korea,
Malaysia, Spain, Sri Lanka,
Taiwan, United Kingdom,
Vietnam, and The United States of America.
The expo, which was scheduled to run for 3
days, observed Technical Conferences on first
day, Workshops on second, and buyers-seller
meet on the third.
The show stopper at the event was JK
Tyres new product range covering different
product segments like cars, trucks, light
commercial vehicles and farm radials- The
ultra-high performance Concept tyres - Ultra
Hi - with full silica technology and multi-layer
tread compound with colours matching the
car aesthetics. The showcased product range
is a culmination of two extreme technologies

delivering low fuel consumption; high
end traction, handling required for high
performance vehicles.
The innovative concept was conceived
and developed at JK Tyre's Tech Centre in
India and is now being tested in global testing
grounds. VK Misra, Technical Director, JK
Tyre, said "At JK Tyre, we have been focusing
on R&D as an intrinsic part of our business
and bringing cutting edge technologies
to delight our customers and partners.
Participating at IRE 2015 is an opportunity
for us to share ideas with industry partners and
showcase how our research and development
capabilities are helping us deliver better, fuel
efficient and dependable products."
JK Tyre also showcased its UX1 - Ultra
High Performance range, which provides ride
comfort & durability on Indian roads. These
tyres are designed for high end luxury cars
such as Audi, BMW and Mercedes.
BVC Ventures Celebrated BVC Millionight
o mark their appreciation and celebrate

the groups success, BVC Group of
Companies hosted its first annual
event, BVC Millionight to felicitate its
employees for their long-standing support
and commitment. A hundred and eighty
employees, who have been associated with
the group for five to thirty five years, were
recognized for their contribution to the
company on 17th January 2015, Saturday,
at a grand event held at the MCA Club in
BandraKurla Complex.
Speaking on the occasion, BhavikChinai,
Director, BVC Ventures said, It is a
momentous day for BVC Ventures as we
are celebrating the success and growth of
our employees along with the group. BVC
Ventures has quadrupled in size in the past
two years and this has been possible only due

to our employees who have displayed true
dedication to the company over their long
tenures. We are grateful for their support and
believe they are partners in our success.
Forty percent of its employees have been
associated with the group for over 5 years and
the attrition rate is less than 2 percent. BVC
Millionight will now be held annually to

motivate and engage employees and update
on the groups growth and goals.
The 500 plus employees were addressed
by Mr. BhavikChinai at the event and
were handed trophies by Mr. UdayChinai,
Chairman, for their long service to the
company.
About BVC Ventures
Established in 1960, BVC group of
companies has pioneered movements and
services in logistics, security and tourism.
The group has become a market leader with
specialized offering.
The ethos of BVC is entrenched on
a relentless pursuit for creating value for
stakeholders and setting a benchmark of
growth rate in its industries.
February 2015
33
INTERVIEW
Indian logistics sector expected to reach

revenues of $385 billion by 2015
By Yashank Chopra
CI started from one man, one office and one truck; and
now it is Indias leading logistics solution provider. Please
share your experiences, and the journey to the top.
We have evolved to the point of offering a complete service
bouquet, right from supply chain consultancy, inbound logistics,
warehousing/distribution to outbound logistics. We have also set-up
dedicated verticals for rail, ODC and high priority verticals like auto,
retail and consumer products, hi-tech, health care and the cold chain.
The company has faced several challenges due to poor conditions of
storage infrastructure, inefficiencies in transportation, poor roads, a
complex tax structure and a low rate of technology adoption. Pending
issues with GST and no industry status for the sector has also hampered
the growth of the sector. Today, logistics cost in India is about 13-14%
of the GDP as against 7-8% in developed countries.
Going forward, at TCI we intend to be responsive to customer
needs. We look forward to incubating new business segments to
provide end-to-end solutions where value ads can be bundled, as
well as to develop customized products. We expect that higher GDP
growth, implementation of GST and infrastructure investment will
positively impact the logistics sector.
What is the current scenario of logistics in India according to
you?
The Indian logistics sector has been
growing at a double digit rate
annually and is expected to reach
revenues of $385 billion by 2015.
The sector has gained immense significance over the years, owing to
increased industrial activities. It is poised for a significant growth
as companies across sectors, such as FMCG, Retail, Pharma and
Automobiles are increasingly outsourcing their logistical requirement
to third party and fourth party service-providers.
As the sector becomes competitive, logistics firms are adopting
innovative mechanisms to ensure optimum fleet utilization and a faster
turnaround time. The sector is relying on Information Technology to
become more efficient, and to achieve higher growth. The concept of
Third Party Logistics, which is about offering an integrated solution
and various value added services, has swept through this industry
and transformed the way companies do business.We are expecting
increased demand for logistics services to come from e-commerce
and other consumption driven sectors with growing per capita
income.
Tell us something about the major developments, and
drawbacks of the year 2014. And According to you, what changes
should be made in the coming year?
Indias logistics cost tends to be high due to inefficiencies in
logistics infrastructure. This situation may get more complicated due
to freight traffic demand increasing two-and-a-half times(as estimated
by a Mckinsey Report) by 2020 (compared with 2010 levels), which
will strain India's infrastructure further if immediate steps are not
taken.
Indias Infrastructure sector has suffered due to dull macroeconomic
conditions and a delay in key policy related decisions.
About Group TCI

roup TCI, with revenues of over ` 2200 crores, is India's leading integrated supply chain
and logistics solutions provider. TCI Group with expertise developed over 5 decades has an
extensive network of over 1000+ company owned offices, 9.75 mn sq ft of warehousing space
and a team of 5000+ trained employees. With its customer-centric approach, world class resources,
State-of-Art technology and professional management, the group follows strong corporate governance
and is committed to value creation for its stakeholders and social responsibilities.TCI is also a part
of World Economic Forums Community of Global Growth Companies (GGC). GGC is a platform to
engage dynamic high growth companies with the potential to be tomorrows leader and become a driving
force of economic and social change. TCIs membership at GCC is a reflection of its consistent growth, its
potential and its initiative to build global business and exemplary executive leadership.
TCI was the first to launch several solutions in the

logistics field. Its product offering includes:
34
February 2015
INTERVIEW
This has weighed on the risk appetite
of lenders which distressed infrastructure
developers, thus hampering infrastructure
development. The situation was further
complicated by changes in project viability
in many cases as initial traffic projections
were considered to be over estimated. We
expect this situation to change in 2015,
as the focus of the new government is
infrastructure development to support
logistical requirements of automobile,
pharmaceuticals, fast-moving consumer
goods and retail sectors.
The recent government decision to
simplify environmental clearance and
land acquisitions norms, besides
addressing sector-specific challenges
that stalled financial closures for
awarded projects, or impacted
investor interest for new ones, has
given new impetus to infrastructure
development. The sector would also
do well to receive huge private sector
investment and best practices. We are
hopeful that the governments intent
to boost PPP in the infrastructure
sector to build new ports, enhance
connectivity of existing ports,
dedicated freight corridors, multimodal transportation systems and
high speed trains will boost the
sector in the coming year by making
it more efficient. Recent initiatives
like increase in fares, privatization
of railway stations and introduction
of new wagons etc. are also likely
to improve the health of railways
besides making it efficient and increasing its
share in logistics further.
Growth in e-commerce and other
consumption driven sectors with growing per
capita income is boosting demand for logistics
services. The trend of increased outsourcing
of logistics services by non-traditional
industries is also one of the prominent growth
drivers for the sector which is now witnessing
demand for services like order processing,
kitting and packaging.
As a large part of the Indias logistics
infrastructure still needs to be built, we have
the opportunity to develop infrastructure in a
planned manner to meet the growing demand.
Now all that we need is an integrated and
coordinated approach that closely aligns
the development of each mode railways,
roads, and waterwayswith the countrys
needs besides making optimal use of existing
assets.
You aim to be the most admired
service provider of integrated supply chain
solutions what are the special steps you
are taking to become so? How are you
different from others?
TCI is Indias leading integrated supply

chain and logistics solutions provider to
offer the complete service bouquet. We have
dedicated verticals set up for rail, ODC and
high priority verticals like auto, retail and
consumer products, hi-tech, health care
and cold chain. Our offices in over 1000+
destinations in India and over 10 million
sq. feet of warehousing space gives us
unparalleled reach across the length and
breadth of the country.
Our strength lies in the ability to be
responsive to customer needs. We can manage
the entire logistics function of a company
through our specialized verticals that handle
all aspects of logistics requirements. Our

ability to seamlessly integrate across verticals
and offer multi-modal solutions across Air,
Surface and Rail through TCI XPS and TCI
SCS makes us a preferred logistics partner.
To MNCs looking for logistics partners
in India, TCI presents a viable alternative to
their existing logistics partners as we have
developed capabilities (to provide end-to-end
solutions where value adds can be bundled,
as well as to develop customized product) in
all areas of operations to meet or exceed their
logistics requirements.
What are the latest techniques
you acquired for transporting special
packages? Throw some light on the use of
technology in logistics.
TCI has always been at the forefront when
it comes to introducing innovative business
practices in India. It is among the first few
logistics companies in India to acknowledge
the role of IT in making this sector efficient.
TCIs decision to invest extensively in
technology, especially IT systems, freight,
software and logistics management software
to devise innovative mechanisms for
optimum utilization of fleet, and ensure faster

turnaround time has helped it in retaining
its market share despite cost rationalization
measures taken by clients across sectors.
We upgrade vehicles every five to sixyears
and undertake vehicle re-designing to meet
sector specific client needs and to make more
efficient use of resources. We have already
received the patent for our Three Deck
Design truck model. Some other innovations
introduced by us in our vehicles to save
energy, cut manpower cost and enhance
capacity and utilization of space include
gull wing, sliding doors and side opening
doors on trailers. We have also undertaken
modifications in rigid trucks,
tractor trailers and 2W Carrier
to save energy, cut manpower
costs and enhance capacity
and utilization of space. We
are contemplating making
GPS mandatory in all trucks
apart from ensuring safety and
comfort of drivers by opting
for ergonomic cabin interior
design and air conditioners
in cabins. Road Freight Index
(RFI) by TCI is a first of its
kind initiative in the supply
chain solutions Industry to
bring in benchmarks, best
practices and standardization
into this sector in India, based
on global practices. It is an
index of weighted average
freight rates compiled across
various routes, similar to a
stock market index. It makes comprehensive
analysis of freight trends, route wise and date
wise and helps to forecast the freight trends
and freight rates for the near future.
TCI Global has 11 offices in India, and
7 offices around the world; what would
be your next steps towards expanding the
companys horizons and services?
TCI expects a sustained double digit
growth of around 10-15% in the coming
years with improvement in yields through
optimization and growth from new segments.
We intend to better margins by improving
efficiencies, controlling costs and enhancing
competitiveness as a part of our growth
strategy. Implementation of GST is likely to
rationalize the impact of taxes on production,
distribution and inventory management.
This should also lead to consolidation of
warehouses and movement towards hub
& spoke model apart from multi-modal
movement between hubs. Company board
has earmarked a capital expenditure plan of
` 275 crore in financial year 15 to purchase
new vehicles/ships as well as development of
hub centres and small warehouses.
February 2015
35
INTERVIEW
With an increase in per capita disposable
income, consumption driven sectors are
growing and this is fuelling the growth of
the logistics sector further. In this space, we
expect the growth to come from food services,
e-commerce, and the consumer durables
segment. We are investing in technology and
skill enhancement of employees to emerge
as the preferred logistics partner for clients
across sectors.
Apart from hardcore business, you
indulge in fulfilling social responsibilities
as well. What is the idea behind this? Share
some major programs and contributions in
this side.
TCI Group is always committed to serve
the underserved communities in the country
with a motto of Equality and Better Life for
All through its social cooperation divisionTCI Foundation. Since its inception in the year
1995, TCI Foundation has been instrumental
to support and assist the less privileged
communities by providing basic life amenities
viz. primary and specialized
healthcare services, disability
rehabilitation,
education,
women empowerment, women
and
child
development,
environment, natural calamity
reliefs, development of youths
and sports; and working
towards making a meaningful
difference in their lives.
HEALTH
CARE
SERVICES
TCI Foundation strives
to reach out to people from
marginal communities in India
to help them stay healthy
and support longevity. The
Foundation with its rich
experience of serving deserving
citizens provides both primary
and special healthcare services throughout
India.
EDUCATION DEVELOPMENT
TCI Foundation aims to nurture young
minds and educate them so they contribute
to the nations development.TCI Foundation
in technical collaboration with DAV
Managementhas facilitated the education
to tribal inhabitants of Jharkhand State by
establishingTCI-DAV school at Village
Govindpur in Distt. Khunti. The school
is duly affiliated with Central Board of
Secondary Education (CBSE) and imparts
education from 1st - 11th standards.
COMMUNITY DEVELOPMENT
TCI Foundation always was at the forefront
to support the underprivilegedcommunities.
The Foundation in association with Jharkhand
Government supports the total sanitation
programme in Kara Block of Khunti District.
36
February 2015
Our gratitude programme for senior citizens

home at Guruvayur Kerala is a mark of
respect for the elders who have devoted their
precious life time for the society at large and
are the pillars of our strong nation.
What is your take on Govt policies and
laws on logistics? What do you feel should
be done, how it would affect the Indian
economy?
Most of the countrys logistics resources
are in urgent need of an overhaul. Settingup of a nodal cross-ministerial logistics
body, providing infrastructure status to the
wider transportation and logistics industry,
and dedicating higher financial outlay for
logistics skill improvement is, therefore,
advisable. TCI is in favor of a separate
regulatory authority for better coordination
between ministries for an integrated policy on
the sector. The future growth prospects of the
Indian economy depend on the infrastructure
investment and timely execution of large
projects. The government should therefore
ensure implementation of large projects under

PPP route apart from allocating long-term
amount towards infrastructure development
through dedicated debt funds to ensure
sustained development of the sector.
Multi-modal transportation is the way
to reduce the cost of logistics. The budget
should, therefore, announce measures to
create a level playing field for private rail
operators. Provisions for greater FDI in key
logistics infrastructure development areas
like dredging, port connectivity etc. should
also be made apart from supporting adoption
of IT to modernize the sector. Supply chain
investments also need to be incentivized by
exempting capital imports on supply chain
equipment from taxes. Financial support
should be provided for warehousing, backend processing and construction of cold
chains to boost the sector further. Treatment
of
warehousing
for
non-agricultural
commodities, at par with infrastructure

projects and land reforms, will encourage
investment in the warehousing industry.
Another important issue that needs
attention is reduction in stoppage time to
ensure faster movement of goods. This
can be done by encouraging development
of more access-controlled expressways
and implementation of a centralized toll
mechanism. The move will facilitate faster
movement of goods by bringing uniformity
in toll charges, reducing documentation and
unauthorized payments through agents. We
welcome the recent government decision
to implement Electronic Tolling System on
all National Highways. This will positively
impact the sector, though marginally, due to
a lower share of traffic movement on national
highways.
We are of the view that the above
recommendations, if implemented in totality,
will help the sector in realizing its full
potential and reduce the overall logistics cost
to below 10% of GDP, as
against 12-13%.
What is your message
to the small and budding
industries?
The number of small
and budding firms has risen
rapidly in recent years.
Such industries are diverse
in terms of their size, levels
of technology employed,
and range of products and
services produced.
This industry is growing
at a constant growth rate of
over 10 percent unlike big
corporates, and has a big
role to play in the overall
economic development. The
segment, however, needs the
right support, skills and people to grow and
generate employment.
The government has a big role to play
in supporting such firms and the Make in
India initiative is a step in the right direction.
The sector also needs assistance of financial
institutions, business schools and other
institutions for financial support and upskilling managers after their start-up phase.
These firms should focus on innovative
business models, great products and services
to achieve success.
Such firms should also give due
importance to branding as it can be a vital
element in propelling a company in to the
consciousness of the consumer. A strong brand
image can help in preventing the erosion of
market share, ensure higher growth margins
and cement customer loyalty to prevent them
switching to the competitor.
February 2015
37
e-Drive
Nitin Gadkari Launches web portal for online

approval of Movement of Heavy Transport
inistry of Road Transport &

Highways, Government of India in
association with Hydraulic Trailer
Owner Association (HTOA) announced the
launch of Web Portal for Online Approval
of movement of Over Dimensional & Over
Weight Cargo by Modular Hydraulics.
The Chief Guest of the event Shri Nitin
Gadkari, Union Minister for Road Transport
& Highways and Shipping, inaugurated
the portal. The event was further graced by
Guest of Honor, Shri Piyush Goyal, Minister
of State (Independent Charge) for New &
Renewable Energy, Power and Coal and Shri
Vijay Chhibber, Secretary-Road Transport &
Highways.
The launch was followed by a full
day seminar on Heavy Transport in India:
Entering a New Era through Digitalization
which included sessions such as Modular
Hydraulic Trailer A must to achieve Make
in India vision getting true, Global transports
technologies A boon for road safety and road
map of data collected through web portal for
future infrastructure planning. Commenting
on the occasion, Mr Nitin Gadkari, Honble
Union Minister for Road Transport &
38
February 2015
Highways and Shipping, Government of

India, said The Government will strive
to amend the 1988 Motor Vehicles Act in
Budget session of Parliament to make Indian
roads safer and efficient.A total of 108 e-toll
stations are operational across the country. By
next year, a total of 350 e-tolls will facilitate
easy movement of passengers and goods.
Fast movement of over-dimensional and
over-weight cargo across the country will
contribute to Prime Minister Narendra Modis
Make in India initiative. New technologies,
innovations and transparent procedures in the
transport sector are a must for the Make in
India project to succeed.
The Modi Government is taking
concrete steps towards ease of doing business
while creating a level playing field for all and
eliminating corruption. Delays in movement
of power equipment can have national
ramifications. Rapid industrialization is
needed in India for creating new employment
opportunities and overall prosperity. said
Piyush Goyal, Honble Minister of State
(Independent Charge) for New & Renewable
Energy, Power and Coal, Government of
India. Mr Manish Kataria, Chairman, HTOA,
further added We would like to thank the

Ministry for undertaking this landmark
initiative which will help in improving the
movement of OD/OWC on hydraulic axle
trailer and will expedite transit time of such
vehicles. This is a testimony of the fact that
the ministry is extremely bullish to promote
seamless movement of cargo for projects.
The online facility will act as single
window permission from origin to destination
and portal shall be accessible to State
Authorities as well to avoid any lapses. The
online facility is a step towards laying a road
map for future road infrastructure planning
in the Nation. It will promote economical,
timely & safer multi modal transport in due
course of time.
HTOA was formed in the year 2007
and has been successful in representing the
members through its Office Bearers and
Board Members at various Govt. authorities
and clients to address the problems and serve
the nation. The Association is a nonprofit
making body and works for benefit of the
members and in the interest of public with
total commitment to work in the professional
and most efficient manner.
February 2015
39
SPOTLIGHT
Accenture launches ports Rhenus Launches Second 55,000

center of excellence
square feet Warehouse near Chennai
henus Logistics India Pvt. Ltd., the Indian arm of the globally valued
in Hong Kong
Euro 4 Billion Rhenus Group, today announced opening of second
ccenture
has
launched
a
Ports
Center
of
Excellence
in
Hong Kong which is
focused on providing
terminal operators with process excellence and technology
implementation for performance management, operations
management and enterprise management.
Industry specialists at the Accenture Ports Center of
Excellence are implementing Accenture Port Solutions (APS),
a portfolio of industry-specific technology solutions combined
with business consulting and outsourcing services, to help
clients create the business analytics capability, operations
flexibility and resilience required to cope with the short and
volatile economic cycles in the ports industry.
Eric Schaeffer, global managing director of Accentures
Automotive, Industrial Equipment, Infrastructure and
Transportation practice said Our Ports Center of Excellence
supports our clients who are operating in a highly dynamic
economic environment which requires improved operational
efficiency and the ability to collaborate with a range of
organizations across the global supply chain to meet the
changing needs of customers.
The Accenture Ports Center of Excellence was at the heart
of teamwork and collaboration with Modern Terminals Limited
(MTL) in the design, implementation and ongoing support of
a new terminal operating system on the Navis N4 terminal
operating system (TOS) platform. This leading container
terminal operator handles approximately 5.5 million TEUs
(20-foot equivalent unit) annually. MTLs legacy TOS had
approached its system capacity limit. By moving to N4, MTLs
operation is running on a sustainable technology infrastructure
adhering to international standards, supporting MTLs longterm growth strategy.
This was a large and complex implementation that required
hard work and dedication of the joint Modern Terminals,
Accenture and Navis teams, said Anders Dommestrup, COO,
MTL. We look forward to continuing to work with Accenture
as MTL continues enhancing productivity and efficiency to
benefit our customers and the wider port community in Hong
Kong.
Ports clients are also able to benefit from help desk,
application development, maintenance and support, as well
as infrastructure services, including systems management,
storage management, disaster recovery and managed hosting
at the Accenture Ports Center of Excellence. Clients can also
benefit from a range of training capabilities that span process,
functional and technology expertise.
Accentures Ports Center of Excellence offers scalability to
customers by drawing on a dedicated and functionally-trained
team based at Accentures Delivery Center in Guangzhou,
China, said Fox Chu, managing director of Accentures Ports
practice. As we serve our ports clients, we will also use the
Accenture Ports Center of Excellence to develop a range of
new assets.
40
February 2015
warehouse near Chennai, spread in an area of 55,000 sq. ft. With

opening of this warehouse, Rhenus now has two multi-user facilities, with
about 1 lac sq. ft of warehousing space near Chennai. This new warehouse
will exclusively cater to the chemical sector and boost the industry in Tamil
Nadu.
Due to the risk involved in handling and storing of Chemical products,
the industry requires highest level of safety. Now more companies can take
benefit of the facility, as Rhenus is among the few logistics players in India
which adheres to stringent environment and safety standards.
This warehouse is a state of the art facility and fully enabled with latest
technologies, facilitating the company to handle chemical products with the
highest level of efficiency and safety. The warehouse is endowed with modern
equipments and inhouse warehouse
management
software Rhenus
WMS that takes
care of inventory
traceability
and
transactions. It has
a capacity of 6000
Pallet
Positions
(PP) with further
scalability options,
efficient
Reach
Trucks with the
lifting
capacity
of G+7 racking
systems
for
1100kgs and Forklifts for Floor management. It has prospects of fulfilling
both JIT and Milk run concepts.
This warehouse has got clearance and approval from the Tamil Nadu
Pollution Control Board (TNPCB). With this, Rhenus is probably one of
the few logistics companies in India which has three PCB (Pollution Control
Board) approved facilities for storage and operations of chemicals in India
and they are also compliant with the HSE (Health, Safety and Environment)
norms.
Rhenus is one of the few logistics companies in India, who have their
warehouses certified with quality, environmental and safety accreditations
in place such as ISO 9001, ISO 14001 & OHSAS 18001.
In India we have about 11 lac sq. ft. of warehousing space of both
multi user facilities and customer specific dedicated facilities in the cities
of Mumbai, Delhi, Chennai, Pune and Ahmedabad. We plan to add 4-5 lac
sq. ft. of warehousing space every year. We lease the space and invest in
mechanization of operations, says Mr. Vivek Arya, MD, Rhenus India.
"It shows our commitment to improving our already eminent customer
service. We will continue to invest in infrastructure and logistics, to
maximize our capability to perform as a leading integrated logistics player.
added Mr. Arya
As a company, we give utmost importance to the EHS and Quality
Systems. This warehouse meets all required safety standards and is compliant
with all norms of PCB. It caters exclusively to the Chemical Industry, thus
making Rhenus strong player in this vertical, says Mr. Paramjit Saini,
Director, Rhenus Contract Logistics India Ltd.
The Pollivakkam facility is 12kms from Chennai-Bangalore highway
(NH4) which will be an added advantage. Several other multinational giants
have their existence close to the facility.
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consumer-driven innovation, and reliable, sustainable growth.
Roger Martin is Dean of the University of Toronto's Rotman School of Management and an adviser to CEOs on strategy, design,
innovation, and integrative thinking. In 2011, Roger was named by Thinkers50 as the sixth top management thinker in the world. This is his
eighth book; he also contributes regularly to Harvard Business Review, the Financial Times, and the Washington Post, among others. He
holds an MBA from Harvard Business School and an AB in economics from Harvard College.
The Innovator's Dilemma

his is one of the most significant business books of
the past 50 years, became a mammoth bestseller, and
its title entered the language. Fortune magazine Praise
for The Innovator's Dilemma and Clayton M. Christensen:
Forbes
"[Clayton
Christensen is] one of the
most influential business
theorists of the last fifty
years." The Financial Times
"The Innovator's Dilemma
achieves a rare feat: It is at
once a satisfying intellectual
solution
to
a
longstanding business puzzle
and a practical guide for
executives and investors."
Wired "... Required reading
in Silicon Valley, where
it has been championed
by the likes of Steve Jobs,
George Gilder, and Andy
Grove." The Huffington Post "A seminal book." Bloomberg
Businessweek "A holy book for entrepreneurs in Silicon
Valley ..." Fortune "The notion of 'disruptive technology'
is one of the timeliest ideas of the Internet age. Coined by
Harvard Business School professor Clayton Christensen, it's
at the heart of his influential book The Innovator's Dilemma."
About the Author
Clayton M. Christensen is the Kim B. Clark Professor
of Business Administration at Harvard Business School. He
is the author of eight critically acclaimed books, including
the bestsellers How Will You Measure Your Life?, The
Innovator's Solution and Disrupting Class. Christensen is
the co-founder of Innosight, a management consultancy,
Rose Park Advisors, an investment firm and the Innosight
Institute, a non-profit think tank.
Supply Chain Finance Solutions
he book Supply Chain Finance Solutions offers orientation in the new

discipline of Supply Chain Finance (SCF) by investigating the need for
and nature of SCF, along with its characteristics and enablers. Due to the
novelty of the Supply Chain Finance approach, there are still many knowledge
gaps. This lack of research leads to uncertainties
about the successful implementation of SCF
solutions within companies as there is little
quantified evidence on the achievable cost
savings and other potential benefits. The
authors close this gap by providing the latest
information on business concepts and the SCF
market. Based on a sample SCF model, the
worldwide market size for such solutions and
potential cost savings to companies engaged
in SCF are analyzed. The work underlines
the generally agreed-upon attractiveness and
future relevance of SCF solutions by creating
win-win situations; for all actors in the end-toend supply chain as well as for external service
providers.
About the Authors
Erik Hofmann is vice president of the Chair for Logistics Management
(LOG-HSG) as well as a senior lecturer at the University of St.Gallen and
guest professor at Dresden University of Technology. His primary research
focuses on the intersections of logistics and supply chain management on the
one side and finance- and performance-issues on the other side. This research
stream encompasses performance measurement in supply chains, supply chain
finance, mergers & acquisitions in logistics, and working capital management
in supply chains.
Oliver Belin holds a master degree from the University of St.Gallen and
has several years experience in supply chain finance (SCF). He worked for
leading institutions in trade finance where he was responsible for the setup
of sophisticated portfolio management tools and the risk management of
several SCF programs. Recently he setup his own company specialized in SCF
solutions targeting large, cross-border trade flows for leading, multinational
organizations.
February 2015
41
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ogistics market in India is sailing sturdily in a rough

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