Founder and CEO, Boom Technologies INC
Blake Scholl is a familiar name in the ever growing tech industry in this digital age. He founded his first company, Global Wave Internet, in high school. He later sold it and dropped out of high school but went on to study at Carnegie Mellon.
The young pilot and technology entrepreneur said aviation has been part of his life even at a young age and by the time he reached college, flying planes had become a fun hobby.
“I’ve been flying for fun since I was in college,” Scholl told Air Cargo Update in an interview in Dubai where he presented his latest pet project, Boom Supersonic, the world’s fastest commercial plane set to be tested next year.
“I basically grew up in a world where our phones are getting better, our cars are getting better, but our airplanes are like those built in the 1960s. This makes no sense,” he said in disbelief.
Boom was hatched at a basement with five others and before long Scholl’s startup idea snowballed into a major project at Silicon Valley, getting as much as $5 billion worth of orders from Sir Richard Branson of Virgin Atlantic.
After the first order was made, the group managed to raise more than $41 million, enough to build the prototype in Denver, Colorado, United States, Scholl’s hometown.
Scholl began his career at Amazon.com. He developed and ran its automated advertising team, the world’s first and largest-scale automated ad buying system, $300M P&L, as well as different internet apps, including the Kima Labs (Barcode Hero, TapBuy), later sold to Groupon, the American e-marketplace with presence in 28 countries.
He said he first used his own money to start the Boom project before investors jumped in.
“After I left my last internet job,” said Scholl, “I thought I got to look into this and see if a startup could contribute something. We were very inspired by what Elon Musk (Tesla founder) and his team had accomplished. You can have a small private startup team that goes and accomplishes so much.”
“The fundamental technology is there. It’s a matter of developing it and bringing it to the market. Challenging but not impossible. I believe it’s really important as a founder to work on something that you’re really passionate about,” he added.
The Boom Supersonic passenger plane is designed to be faster than the French-British 1960 joint venture Concorde with a 2.2 Mach speed. It will also be less costly to operate with new technologies now in use.
Its entry in the market is seen to revolutionize the way people travel, cutting by half time spent to reach destinations. For instance, a flight from Dubai to Sydney which takes 14:51 today, will take just 8:17 flying supersonic. Similarly, Dubai to New York will be 7 hours and 35 minutes versus 14 hours today.
Boom is also seen to rival major aircraft manufacturers across the globe that had long dominated the aviation industry once it’s been tested fit for commercial use.
Boom was born out of Scholl’s passion for flying and the will to develop something more technologically advance.
For those who want to follow in Scholl’s footsteps, he says: “Prioritize your passion. When I was thinking of what company to start, I realized that it was hard. I made a list of all my ideas in descending order and then picked the things that I would personally be most excited about.”
“My experience has been, if you’re working on something that you personally want to exist in the world, your passion is contagious and people would want to work with you. You learn faster. It’s a cliché but it’s very true. Find something that you love.” – Gemma Q. Casas
MUNICH, Germany: Azerbaijan’s Silk Way West Airlines is buying more planes before the year is over amid growing demand for its full freight scheduled and cargo charter flights to Asia and Europe.
Kamran Gasimov, CEO of Silk Way West Airlines, told Air Cargo Update in an interview on the sidelines of the four-day Air Cargo Europe held on May 9-12, the company is celebrating its 5th anniversary this month with better prospects in the horizon with the growing popularity of e-Commerce in Russia, Georgia & Azerbaijan and the government’s pledge to invest more in the company.
“Currently, we have seven aircraft— five Boeing 747-8, the fifth one was just delivered last month. We’re expecting the delivery of one or two more aircraft before the high season—Boeing 747-400,” Gasimov said.
“The thing is our government gives aviation and cargo the highest priorities. As a small nation, this is very important in economic stability. Without the big support of the Azerbaijan government, we will never be able to achieve what we have in the past few years. Today, we have one of the biggest fleet in the region with the highest capacity,” the CEO added beaming with pride.
Bullish outlook
Business in the oil-rich Azerbaijan is slowly picking up again despite the unstable oil prices. And it’s getting another boost with the popularity of e-Commerce in nearby former Union of Soviet Socialist Republics member states like Russia and Georgia.
More than 20 years since gaining independence after the collapse of the USSR in 1991, Azerbaijan has successfully grown its economy through prudent exports of its main resources—oil and gas.
The US State Department says the country’s non-export sectors also featured double-digit growth, including construction, banking, and real estate. Its oil exports through the Baku-Tbilisi-Ceyhan Pipeline, the Baku-Novorossiysk, and the Baku-Supsa pipelines remain the main economic driver, but efforts to boost its gas production are underway.
The eventual completion of the geopolitically important Southern Gas Corridor between Azerbaijan and Europe will open up another, albeit, smaller source of revenue from gas exports, the US added.
“Azerbaijan is slowly picking up. As a small country with a population of 9 million, we don’t have a big demand. But since last year, we feel that our region is growing especially in e-Commerce. Russia, Georgia and Azerbaijan are big with e-Commerce and we’re looking at more possibilities in this area,” said Gasimov who has been in the aviation and cargo industry for the past 20 years
“Business is stable for now. During the first quarter, we finished with good numbers mainly with business from China. Europe is also one of our most important destinations since we introduced more frequencies to China and the Far East,” he added.
Judging from their bookings and the interest of notable companies to do business with Silk Way West Airlines, the CEO said Azerbaijan’s bid to penetrate the global cargo industry is paying off after years of patience and careful investments.
“Our first day was very busy,” Gasimov said referring to activities at their stand at the event. “We were very pleased to welcome our old friends and new partners. There were a lot of proposals and new project ideas.”
“It’s very interesting how we’re growing. We feel that the market and the airline industry have changed their expectations on us. We see more friends around, people attracted to our booth, unlike before. This is very encouraging and promising and a great incentive for our people,” he added.
From Munich, Gasimov continued making business headways to Luxembourg where he signed a long-term customer agreement with CHAMP Cargosystems to supply the company’s Weight & Balance Load Planning Solution for their growing fleet of 747 freighters.
CHAMP’s Weight & Balance solution is considered one of the most advanced load planning software in the market, enabling airlines to efficiently and safely plan all freighter aircraft loads, however complex.
Serving more than 50 destinations worldwide out of its hub in Baku, Silk Way West Airlines, says Gasimov, is always looking for best partners for its suite of products offered in the market.
In Q1 2017, 45% of crimes reported to TAPA involving losses of over €100,000 and nearly 90% of thefts with a value of between €50,000 and €100,000 took place in these types of locations. So, there is a massive business opportunity for Parking Place Operators that step up to TAPA’s new PSR requirements, which have been developed in consultation with our members. Customers want a solution.
The Transported Asset Protection Association (TAPA) is stepping up security standards at some 520 Parking Place Operators (PPOs) in 35 countries in Europe, the Middle East, and Africa (EMEA) region to protect truck goods from being stolen while helping truck part owners increase their revenues.
Apparently, truck park owners in Europe are missing out on potential revenues from the trucking industry because their locations are not recognised as being secure enough by the Manufacturers and Logistics Service Providers transporting high value, theft targeted products.
TAPA is launching this summer its new Parking Security Requirements (PSR) to address the issue.
The new security standard joins TAPA’s long-standing and highly respected Facility Security Requirements (FSR) and Trucking Security Requirements (TS), which are now a mandatory qualification in a growing number of global supply chains.
TAPA’s latest cargo crime intelligence highlights why more secure parking sites are urgently needed at strategic points across the EMEA region.
The Association says freight losses reported to its Incident Information Service (IIS) rose 59.6% year-on-year in the first quarter of 2017 to 709, a rate of nearly eight a day. The total value for the 62% of incidents providing financial data over the three months was €43.4 million, and over 72% of all crimes occurred when trucks stopped in unsecured parking locations. This follows a 72.3% rise in recorded freight crimes in EMEA in 2016.
Tony Kavanagh, who leads TAPA EMEA’s Secure Parking Working Group, says: “European freight crime, in particular, is at an unprecedented level, and the biggest threat occurs during road transportation, specifically when drivers need to take mandatory rest breaks. The lack of a database of trusted and secure parking places means vehicles end up parked in lay-bys and on industrial estates, which can make them an easy target for cargo thieves operating in those areas.”
“In Q1 2017, 45% of crimes reported to TAPA involving losses of over €100,000 and nearly 90% of thefts with a value of between €50,000 and €100,000 took place in these types of locations. So, there is a massive business opportunity for Parking Place Operators that step up to TAPA’s new PSR requirements, which have been developed in consultation with our members. Customers want a solution,” he added.
In fact, TAPA believes a high number of professional parking sites in Europe may already meet the minimum requirements of the new standard.
The 520 sites already identified have been put forward by its member companies, and the Association says it will continue to add to this list as it aims to build a new network of secure parking sites across EMEA.
In May, a team of TAPA ‘Secure Parking Ambassadors’ commenced the process of contacting PPOs. Initially, they plan to speak to the owners of a sample group of parking locations in France, Germany, the Netherlands, Spain and Italy to gain their feedback on the programme before rolling it out to every site on its list.
TAPA aims to launch Phase 1 of the project in Q3 of this year. The details of each location that complies with TAPA’s Parking Security Require-ments will be uploaded to the Association’s new online parking tool, making it easy for TAPA members to identify sites and make bookings when they are planning their trucking operations.
The tool also provides an overlay of crime data on transport routes across the EMEA region to help manuf-acturers and their transport and logistics partners recognise ‘hotspots’ where crimes have occurred previously as well as the nature of the incidents.
TAPA’s secure parking programme is open to all Parking Place Operators, who will not be asked to pay a fee to TAPA to participate in Phase 1. The Association is simply focused on creating a secure parking network to benefit its members through a programme of certification, partnership and mutual recognition.
In Phase 1, there are three ways to meet the requirements of PSR:
A self-certification entry level that will see TAPA conducting sample audits of sites;
By signing an annual Partner Declaration to confirm the security requirements stated in the TAPA programme are in place;
Through mutual recognition by TAPA of Parking Place Operators that have met the requirements of other organisations with TAPA pre-approved parking security schemes.
Phase 2 will see the addition of a full certification programme in 2018 featuring three levels and audits carried out by independent audit bodies.
Jason Breakwell, Vice Chair of TAPA EMEA, said: “We are working to deliver a solution that is a win/win for both Parking Place Operators and our members. Many PPOs may already meet our requirements and so gaining PSR certification will give them the recognition they deserve to support the growth of their businesses.”
“For other parking operators, we are confident that participating in the PSR programme at Entry Level will only require a minimum level of investment. Parking locations that meet our security standards can look forward to valuable new revenue streams, while our members will achieve much greater supply chain resilience and, therefore, reduce the significant financial impact that results from supply chain losses,” he went on to say.
Parking Place Operators seeking to learn more about TAPA’s Parking Security Requirements should contact:
secure.parking@tapaemea.org
Cargo iQ measured 10 million airport-to-airport and 5.5 million door-to-door shipments in 2015, enabling members to improve and standardize internal processes
The air cargo industry is becoming increasingly complex and shippers have more specialized needs, expectations and demands to lookout for. The major concerns lie in the movement of cargo physically and a swift exchange of vital information.
Logistical efficiency and effective shipment planning starts with the supplier taking into consideration the entire logistical chain, all the way up to the handover of the final product to the customer.
However, the challenge always lies in the complexity of logistical processes and the specific requirements that stand in the way of performance and flexibility.
A good cargo management system not only enables standardized communication among air cargo stakeholders (i.e. freight forwarders or ground handlers), it also creates shipment visibility. Transparency is vital in this day and age.
Furthermore, it manages complexity and exceptions (i.e. last minute changes) and differentiates between the various offerings, products and services that have expanded considerably and often require specific procedures and processes.
Last but not least, it manages the delivery promise, resulting in improved customer service, complies with customs andcargo regulations (i.e. dangerous goods handling) and maximizes cargo revenue by more efficiently matching capacity to demand.
Cargo IQ Executive Director Ariaen Zimmerman and Cargolux Global Logistics Services Director Francesco Nanna discussed with Air Cargo Update why a good cargo manage-ment system is a necessity and how Cargo IQ fits into the picture.
To them, without a cargo management system, it is impossible to know where the cargo is, how long it has been there, what step of the chain it has reached, or even what condition it is in. These systems add vital clarity.
Cargo IQ
Formerly known as Cargo 2000, the 82-member IATA specialist interest group was rebranded as part of a strategic transformation program, including a Smart Data Project, and a new audit and certification scheme for the Cargo iQ Quality Management System Certification.
Cargo iQ measured 10 million airport-to-airport and 5.5 million door-to-door shipments in 2015, enabling members to take action to improve and standardize internal processes by identifying where quality was an issue.
By speaking the same language, Cargo iQ members are also able to follow best practices and define common processes with industry partners in the supply chain.
Cargo iQ Executive Director Ariaen Zimmerman said, “Cargo iQ is not just an IT system. It is an organization, an IATA interest group through which the industry, represented by parties from all over the world, and from every aspect of air cargo, collaborate with the aim of improving the value proposition of the air cargo industry.
“These industry representatives, from our 80+ members amongst others, ascertain how processes currently work, and they then agree how things should be working. In this way we create standards for the air cargo supply chain, and of the IT systems used to monitor the cargo flow journey. The reasons we do this is to improve shipment control, as well improve the processes of how it is carried out in practice. We are an initiative, not a management system, and represent over 80 members within all segments in air cargo industry.”
Procedures & Shipment Planning
Every shipment gets a plan (a so-called route map) that includes milestones. CiQ members then receive alerts when milestones fail, giving them the ability to re-plan and/or recover. The route map is created when the booking is accepted and describes the journey the airfreight shipment follows.
The journey covers flight/truck bookings as well as the checkpoints/ timestamps. The live route map tells us if the freight is continually moving. Detailed comprehensive records are available for process analysis and improvement.
CiQ’s objective is to standardize quality processes and improve operational efficiencies. Shipment route map information is planned and measured in a defined manner that enables the comparison of data and identifies areas for improvement.
Cargo iQ members are constantly sending data within the group via their own cargo management systems. The monthly report provided makes their performance a visible, tangible thing, and process change can then be implemented, and used for shipment planning and forecasting.
Francesco Nanna, Cargolux Global Logistics services director notes, “As the number of touchpoints is increasing and involved stakeholders (shippers, freight forwarders, carriers) want to gather more and more data, CiQ helps to define the standard route map including the specifications which all CiQ Members have to adhere to. Speaking the same language helps to compare the same milestones/KPIs. Customers want to see exactly how shipments are progressing in real time, including whether the shipment was loaded on the airplane on time and its projected delivery time.”
Monitoring performance
Cargo iQ has several members which are IT providers to air cargo. It is through their cargo management systems that Cargo iQ team monitor processes.
“Those that are Cargo iQ compliant achieve this by having the various milestones outlined in our Master Operating Plan (MOP) detailed in their systems. This is how we track where shipments are, should be and will be,” says Zimmerman.
CiQ is monitoring the physical shipment flow from origin to destination by setting up an individual route map for each airfreight consignment. This allows both the freight forwarder and the airline to intervene whenever it’s deemed necessary and, with that, ensures the delivery promise made to the customer is kept.
The CiQ methodology allows the members to compare their performance with others, which provides a good opportunity for process improvement.
Improving air freight value
CiQ enables to build a recognized standard industry quality management system and to improving internal and external processes. It establishes a workflow management tool to scrutinize and enhance ground handling process and procedures and increases the visibility & transparency of shipment follow up (actual vs. planned).
It also ensures corrective action through real time re-planning and helps bridging various air cargoindustry initiatives like eAWB. CargoiQ is a meaningfully benchmark because of harmonized CiQ milestones/KPIs within the industry.
“The value of air freight will improve dramatically as soon as shippers are automatically part of the so called ‘collaboration landscape’, meaning where all stakeholders of the supply chain will start talking to each other – only then can we deliver the visibility and quality that shippers demand.
“CiQ is a common data management platform, where CiQ Members have implemented the relevant CiQ specifications with the intention to provide full transparency in regards to process consistency. This is achieved by respecting the specified sequence of events, applying the required interfaces and ensuring at all times that respective stakeholders control the goods and respect the ownership of shipment information,” says Nanna.
Identifying problems
The data gathered outlines where a shipment currently is, and where it should be. When combined with the milestones agreed, it is possible to identify where in the chain things problems are arising.
“The objective of CiQ is to provide the air cargo industry with a master operating plan, describing end-to-end air cargo industry business process,” Nanna stressed.
“As the MOP specifies the activities, tasks and milestones that are typically involved in transportation of cargo by air, it provides notification alerts to relevant stakeholders when shipments deviate from the original route map and, thus, gives the possibility to collaboratively put the consignment back on track again or find a common alternative acceptable to the customer. The full control of information flow, cargo flow and documentation flow allows immediate identification of issues in such cases,” he added.
CiQ places a measurable quality management system between freight forwarders and carriers, where monthly statistics are produced and compared. They contribute to further improve the service of the ground handlers based on actual time stamp measurements.
The standardized and recognized CiQ reports help to achieve operational excellence. The globally standardized process allows to measure and compare the quality of the service delivery, of service providers and, internally, throughout our network. Consequently, this is leading to an overall increase in customer satisfaction.
New audit and certification scheme
Cargo iQ recently appointed SGS to take on its member Audit and Certification Scheme, working with auditors for the first time.
Members will be audited to demonstrate, through certification, that their processes and services are compliant with quality standards for the worldwide air cargo industry, as created and implemented by the Cargo iQ membership.
SGS is an inspection, verification, testing, and certification company, with over 2,000 offices and laboratories worldwide. Its partnership with CiQ was announced at the World Cargo Symposium (WCS) 2017 held in Abu Dhabi in March.
Cargo iQ is planning for all members to be audited under this new audit scheme within three years.
The Indian pharmaceuticals market is making enormous strides and is said to be the third largest in terms of volume and 13th largest in terms of value, according to a report by Equity Master.
India accounts for 20 percent of global exports in terms of volume of generic drugs and it supplies more than 80 percent of the antiretroviral drugs used globally to combat AIDS (Acquired Immuno Deficiency Syndrome).
According to an IBEF report, the UN-backed Medicines Patent Pool has signed six sub-licences with Aurobindo, Cipla, Desano, Emcure, Hetero Labs and Laurus Labs, allowing them to make generic anti-AIDS medicine Tenofovir-Alafenamide (TAF) for 112 developing countries.
The Indian pharma industry, which is expected to grow over 15 percent per annum between 2015 and 2020, will outperform the global pharma industry, which is set to grow at an annual rate of 5 percent between the same period.
The market is expected to grow to US$ 55 billion by 2020, thereby emerging as the 6th largest pharmaceutical market globally by absolute size, as stated by Mr Arun Singh, Indian Ambassador to the US.
Branded generics dominate the pharmaceuticals market, constituting nearly 80 percent of the market share (in terms of revenues).
India has also maintained its lead over China in pharmaceutical exports with a year-on-year growth of 11.44 percent to US$ 12.91 billion in FY 2015-16, according to data from the Ministry of Commerce and Industry.
In addition, Indian pharmaceutical exports are poised to grow between 8-10 percent in FY 2016-17. Imports of pharmaceutical products rose marginally by 0.80 percent year-on-year to US$ 1,641.15 million.
Overall drug approvals given by the US Food and Drug Administration (USFDA) to Indian companies have nearly doubled to 201 in FY 2015-16 from 109 in FY 2014-15. The country accounts for around 30 percent (by volume) and about 10 per cent (value) in the US$ 70-80 billion US generics market.
Increased FDI flows
The drugs and pharmaceuticals sector attracted cumulative FDI inflows worth US$14.53 billion between April 2000 and December 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP).
The Indian pharmaceutical market size is expected to grow to US$ 100 billion by 2025, driven by increasing consumer spending, rapid urbanization, and raising healthcare insurance, among others.
Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers that are on the rise.
KWE India, one-stop logistics provider
Of late, consolidation has become an important characteristic of the Indian pharmaceutical market as the industry is highly fragmented. Alongside the growth of pharma market, there has been corresponding growth in the logistics sector, specifically to do with the sensitive nature of the pharma industry.
And KWE India is one of the leading providers of end-to-end, comprehensive and outsourced logistics solutions. The company is the Indian subsidiary of Kintetsu World Express (KWE) which is part of the Kintetsu Group, a global conglomerate consisting of 130 affiliated companies with interests in a diverse range of industry verticals. KWE India was set up in 1997 with headquarters in Bangalore and regional offices in Delhi, Mumbai and Chennai.
As a one-stop, international logistics services provider, KWE India offers international freight forwarding, international sea freight forwarding, customs, handling, import and export of goods, warehousing and last-mile delivery to both B2B and B2C businesses across India.
KWE is regarded as one of the leaders in total supply chain management with its high quality and advanced logistics services and is the most preferred ‘logistics partner’ to both domestic and multinational companies in India.
KWE India offers clean warehouses; secure cages for high-value cargo and scheduled drugs; pick-pack distribution; online inventories; 24-hour security; temperature controlled storage; refrigerated trucking; full service packing and re-packing; use of free trade zones for reduction of import duties etc.
KWE is experienced in the handling of numerous pharma and medical commodities such as dry pharmaceuticals; liquids / perishables; medical stents and bandages; reagents, diagnostics; biochemical agents; medical devices and ophthalmology.
KWE India’s strength lies in its ability to offer a full-range of reliable, value-added and optimal supply chain solutions that are significantly more comprehensive than mere ‘door to door’ services offered by typical logistics companies.
Towards this end, KWE has established a joint venture with Gati Ltd, India’s leading distribution company. The Gati-KWE joint venture is aimed at combining Gati’s expertise in express distribution in the country with KWE’s freight forwarding expertise and global customer base.
In an interview with Air Cargo Update (ACU), the Deputy Managing Director of KWE India, Karthi Baskar, talks about how the company is positioning itself in India with specific reference to the expanding pharma market.
ACU: Indian pharma industry is expected to grow to US$55 billion by 2020, is the air cargo/logistics industry ready for this growth?
Karthi Baskar (Baskar): We see air cargo pharma Industry restructuring itself currently in India as our logistics/supply chain depends upon airport facilities, handling agents inside airports, airlines and reefer transportation.
With privatization of airports in Delhi, Bangalore, Hyderabad, Mumbai and investments by private players in pharma cold chain facilities, has helped the pharma industry to improve process and standards in handling pharma products. Airlines also are investing in handling pharma products in terms of special equipment, improved handling process and robust compliance standards at origin, transit and destination.
With large capital investment and incentives by the government of India in cold storage area, we can see enormous progress on cold chain warehouse and transportation. I am confident this will help grow pharma industry rapidly in coming years.
ACU: Logistics providers need to invest in infrastructure, technology, etc. How is KWE working in this specific sector of the pharma air cargo movement?
Baskar: Currently, we have invested in GDP (good distribution practices) process and certification. Our focus is more to do with complete visible process for end to end supply chain solution for pharma customers. We are strengthening as a company on our infrastructure for cross docking, handling of pharmaceutical product, providing packaging solution and using right cold storage trucks/ equipment to meet industry standards.
On the International transportation, we work on thermal blanketing, special airline equipment for cost effective solution for our customers. Our focus is more on process driven controlled environment supply chain solution for pharma customers.
ACU: There are challenges cool chain processes or facilities, complying with international regulations, and getting required? Does your company have the expertise in regulatory issues etc?
Baskar: KWE globally is a strong pharmaceutical product handling logistics company. In few of the countries like Ireland, Germany and United Kingdom, we are GDP certified and most of our warehouses are certified in countries like Japan, US, Asia-Pacific to handle pharma-ceutical customers. In terms of country-specific regulations we have pharmaceutical handling staff who are specialized in each country regulation at respective locations. In India we have competent staff who are well-versed on regulatory matters to give best solutions to our customers.
ACU: Moving temperature-sensitive products is a big challenge, how is your company equipped?
Baskar: We design supply chain solutions, customize based on customer requirements and use appropriate handling trucks, facilities, equipment’s with robust process on compliance and safety for the product during the entire handling.
ACU: You recently opened a warehouse in Hyderabad airport to handle pharma products. Could you tell us about the response from the industry, the capacity, and infrastructure to the warehouse?
Baskar: Strategically located at the country’s pharmaceutical hub, this facility will be exclusively utilized to provide logistics support for the pharmaceutical shipments – including both export and import trade. Set up in non-bonded area, the state-of-the-art facility is equipped with 24×7 temperature ambient control, CCTV, control access, racking, temperature and humidity indicators, alarm system and skilled and trained manpower to follow GDP compliant process throughout shipment handling.
The pharmaceutical companies in the region have evinced overwhelming response for utilizing the services provided by KWE at the dedicated warehouse. Following this response KWE management is keen to further expand its warehousing space and has already reserved two additional block spaces in the upcoming cargo satellite building of GMR Hyderabad.
ACU: What is unique about this warehouse?
There are limited players handling with such robust GDP process in pharma industry. GDP certification is unique and new product in India and very minimum players in India currently which will give complete process driven to pharmaceutical companies which will help to customers to meet their end user requirement in terms of managing, maintain quality and temperature to meet compliance, safety and security standards for global compliances.
ACU: We are told you are planning similar warehouses in other airports, could you give your roadmap for the future?
Baskar: Currently, we have started with Hyderabad. Our future focus will be to start the GDP certified warehouse in other pharmaceutical hub gateways in India like Mumbai, Ahmadabad, Bangalore and Chennai.
“There is an urgent need to bring down logistics cost in the country to globally
comparable rates if we hope to achieve double digit growth figures and ensure the
welfare of the weakest sections of society.”
Indian Prime Minister Narendra Modi is aggressively looking at different approaches to economic growth. One of the focal points has been to seamlessly connect India through multi-modal transportation.
The government has taken the right step in the right direction and this was reflected at the recent India Integrated Transport and Logistics Summit held in New Delhi.
The Indian Minister of Road Transport & Highways and Shipping Nitin Gadkari announced the aviation sector will now be part of the multi-modal logistics hubs in India, the best part in the government initiative.
So far, only highways, ports, inland waterways and railways were part of the multi-modal logistics hubs.
Transforming India’s logistics from a point-to-point model to hub-and-spoke model is an effort to reduce cost of logistics and ensure that multi-modal infrastructure comes up in the country in an integrated manner.
While Indian economy is growing, the high cost of logistics – currently at 14 percent of GDP – is having a negative impact. Presently, India has a very poor logistics performance index due to an unfavourable modal mix of transport and a lack of seamless intermodal connectivity.
High logistics costs
The high logistics costs are a result of various modes of transport growing and developing in silos in an un-integrated manner. The way to go is multi-modal transport planning which is efficient, faster, safer, import substituting, cost effective and pollution free. Besides, the logistics and transport sectors have high potential for employment generation across regions.
The Minister of State for Civil Aviation Jayant Sinha also underscored the importance of cost of logistics and turnaround times when multi-modal transportation hubs were being planned.
Considering some of the models from developed countries, India has started realising that multimodal logistics parks (MMLPs) is the way to go, to bring down logistics costs while serving four functionalities – Freight aggregation and distribution; Multimodal freight transportation; Storage and warehousing with modern, mechanized space catering to different commodity groups; and value added services such as Customs clearance with bonded storage yards, warehousing management services etc.
Explosive air traffic growth
The Minister of Civil Aviation P. Ashok Gajapathi Raju noted that India witnessed explosive growth of air traffic and infrastructure in the last two to three years.
The air cargo sector is expected to register around 9 percent growth in the next few years and with logistics parks coming up, the growth rates could be higher.
The encouraging part at the summit was the signing of 34 memoranda of understanding (MoUs) amounting to over US$31 billion in the areas of port connectivity; integrated check posts in Bihar, Uttarakhand, Uttar Pradesh, West Bengal, Manipur, access to land port in Tripura, Assam and Mizoram; development of logistics parks in Telangana, Andhra Pradesh, Karnataka, Madhya Pradesh, Assam, Gujarat, and Mizoram; Development and furthering of multi modal logistics parks in Mumbai and Bengaluru and Haryana, exploring investment opportunities in logistics sector; dredging of inland waterways; implementation of 79 port connectivity projects under Sagarmala; development of port roads to Chennai & Vishakhapatnam ports, & connectivity to airport in Navi Mumbai, among others.
Some of these MoUs are between Government agencies while others are between government and business and also business to business. However, from the point to point freight movement to an ideal situation of hub and spoke model freight movement.
Large scale investments are required to develop these logistics parks and the need to leverage industry best practices make the public-private partnership model the most viable option.
The government has identified 44 economic corridors along with numerous feeder routes and inter corridor routes requiring consistent four lane infrastructure covering 55,000 km.
Many verticals to benefit
With such promising improvements in road, rail, waterways and air network, the benefits would be across many verticals, particularly procurement, storage & distribution of agricultural produce.
At present, due to inefficient logistics system, the losses are high in food-grains, perishables and other time-sensitive products. The need to ensure that farmers can take their produce to market in time and get better price is being felt much more now than ever.
The Minister of Railways Suresh Prabhu said that with implementation of GST (goods services tax), trade and business would grow at a faster pace. While fiscal barriers to the movement of goods have been done away with, physical barriers also need to be removed.
Indian Railways, one which has the highest rail connectivity in the world, is further enhancing investment and it has taken up electrification of routes on a war footing. Efficiency of freight terminals is being improved and three more dedicated freight corridors have been planned. Port-rail connectivity has improved with the introduction of a program called Sagarmala.
The logistics sector is going to have a cascading effect on various segments of the economy and development of skills would have to be priority. With the transport and logistics sector poised for a makeover, a number of new jobs would become available, calling for training of youth.
DP World makes investment
The Chairman and Chief Executive Officer of DP World, His Excellency Sultan Bin Sulayam, addressing the summit said that due to lack of proper storage, nearly 10,000 tons of fruits and vegetables get wasted in India.
If proper planning is done and proper storage facility and logistic infrastructure made available, this wastage could be stopped. An MoU was signed between DP World and National Investment Infrastructure Fund (NIIF) to develop projects spanning the port and logistics sectors including opportunities under the Sagarmala initiative, the Dedicated Freight Corridors and Logistics infrastructure aimed at reducing agriculture produce losses.
The India Integrated Transport and Logistics Summit is envisaged as a platform for all stakeholders in transport and logistics sectors to come together and initiate collaborative partnerships to realize the various greenfield and brownfield opportunities in logistic parks, freight corridors and IT solutions.
The Ministry of Road Transport and Highways (MoRTH) had undertaken a study, called the Logistics Efficiency Enhancement Programme (LEEP), which has identified four key solution themes to improve the state of logistics in India.
These are freight corridor upgradation, logistics park develop-ment, seamless interstate movement and electronic toll collection systems.
Taken together, these initiatives are expected to reduce India’s logistics costs and bring them closer to the accepted global benchmarks from the current high levels of 13-14 per cent of the gross domestic product (GDP).
The Ministry plans to develop 35 Multimodal Logistics Parks (MMLPs) in India which will cater to 50 percent of the freight movement, enable 10 percent reduction in transportation costs and -12 per cent reduction in C02 emissions. Land parcels have been identified and pre-feasibility studies initiated on six of these locations.
The government is also working to formulate a uniform policy for the development of MMLPs.
Indeed, there is a lot happening on the ground and now air has also been included. Once these initiatives fall in place, India’s economic growth is expected to soar. The way to go is seamless connectivity.
The emergence of e-Commerce is slowly transforming the world into a global cyber-store with the industry forecast to grow at a double-digit rate contributing significantly to the air cargo industry’s projected US$5.5 trillion international trade value this year.
The International Air Transport Association (IATA) says e-Commerce is heavily dependent on air cargo so much that industry players have started investing on people and equipment that will best carry out what are needed to boost production.
But e-Commerce, though practiced for many years, is still loosely regulated internationally raising concerns on safety issues, especially in handling items considered to be dangerous goods like lithium batteries which are attached to some electronic products like mobile phones, laptops, tablets, among others, as well as products with certain combustible chemicals.
A lot of so-called DGs are shipped not only on cargo freighters but also on bellyhold of commercial passenger planes.
Over the years, a number of DG-related aviation fire incidents have been recorded in different parts of the world despite exhausting safety precautions in handling them. Thus, unregulated shipment of e-Commerce with DG poses more hazards, according to experts.
Safety concerns
“Our main concern right now is in the e-Commerce industry. The challenge with e-Commerce is anybody in the world can be a seller,” David Brennan, IATA assistant director, cargo safety & standards, told Air Cargo Update in an interview in Abu Dhabi on the sidelines of the 11th World Air Cargo Symposium where he spoke about the subject.
Brennan, who has been with IATA for 15 years now, says e-Commerce is giving opportunities for small and medium enterprises to sell their products globally online, eliminating direct competition with major companies with large capitals.
“It is terrific in some sense offering business opportunities for small and medium enterprises that otherwise could only sell locally but now sells globally. It’s a fantastic opportunity. But there’s a challenge for the airlines because some of these people offer things that could be classified as dangerous goods like lithium batteries or devices that contain lithium batteries,” the DG expert said, noting that basic rules should be applied on how DG products are shipped.
DGR Training Essential
Turkish Airlines Special Cargo Manager A. Bahadir Buyukkaymaz said proper training in handling dangerous goods and other sensitive cargoes is very important for safety reasons for all stakeholders.
The cargo executive said the airline’s staff assigned to handle cargo regularly undergo IATA-certified trainings to keep up with the latest techniques and methods in the industry.
Buyukkaymaz’s office is responsible in handling pharmaceuticals, perishables, valuables like jewelry, high-value products such as electronic gadgets, dangerous goods, explosives, chemicals, liquids, gases, toxic biological substances and even clinical trial biotech products.
If not handled with care, the staff’s safety are at risk, including others around them, as well as the materials itself.
“This type of job requires certified trained people. And we do that constantly based on IATA’s dangerous goods regulations. They must be trained and certified,” said Buyukkaymaz.
Saudia Cargo is another company that also strictly adheres to IATA Dangerous Goods Regulations (DGR).
“We operate in accordance with the highest safety standards for the handling, transportation and storage of dangerous goods, fully compliant with IATA Dangerous Goods Regulations (DGR),” its website reads, emphasizing that it offers this service in all of its network in an isolated storage with highly trained and licensed experts to enforce all international regulations with intensive supervision while handling.
Samsung’s case
Perhaps the most popular case of DG concern in e-Commerce is that of Samsung Note 7 which turned out to have defective lithium batteries.
A man in China who bought a Samsung Note 7 smartphone in 2016 reported it suddenly exploded. Another Chinese customer also reported the same model he bought at an e-Commerce website exploded when he charged the battery causing minor injuries to his fingers and burning his Macbook.
Dozens of other similar incidents across the world were reported prompting the South Korean company to pullout from the market some 2.5 million units of Note 7 and replacing those who already bought the model.
Airlines also banned passengers from using their Note 7 phones on board. Samsung pegged its product recall losses at US$3 billion.
Fire incidents
On September 3, 2010, a UPS Boeing 747 had a fatal crash in Dubai with preliminary reports from the US National Transportation Safety Board (NTSB) investigation pointing to the three shipments of lithium ion battery packs that meet Class 9 hazardous material designation as the possible cause of the accident.
In 2009, a passenger flight from Japan that arrived at the Los Angeles International Airport caught fire after a pallet of primary lithium batteries caught fire, igniting an adjacent pallet of batteries. Upon investigation, it was found out the batteries were shipped as ordinary cargo, not hazardous materials.
In Memphis, Tennessee, a cargo-only aircraft caught fire in 2004 halfway through its destination due to lithium batteries. In 2006, another UPS freighter plane was destroyed after secondary lithium batteries it was transporting caught fire.
Between 1996 and 2007, 82 aviation incidents were recorded involving lithium batteries, a common DG type of cargo.
China, the world’s factory
China, the world’s factory, is of particular concern for IATA, because consumers across the globe are drawn by its electronic products which are cheaply-priced.
Sellers, however, often don’t declare what’s in the package they are shipping to save on cost.
“There are regulations in shipping dangerous goods by air but these shippers are not traditional shippers so often are not fully aware about them. A lot of it is ignorance. Still, some people are aware of the regulations but try to circumvent them because it could be expensive to ship dangerous goods by air and so they try and avoid them and put them in the mail,” said Brennan.
Technically, the shipper is responsible for the products and they could be held liable civilly and criminally, depending on the gravity of the offense.
Brennan said IATA’s challenge is how to make people aware about their responsibilities in shipping dangerous goods.
“The challenge with dangerous goods is that we have regulations but how do we make people aware. Unlike driving a car where you have to get a license & take a test to demonstrate that you can drive, that sort of precondition doesn’t exists in air cargo,” he said.
For now, Brennan said IATA is forging an alliance with their member airlines, the e-Commerce community, freight forwarding associations, sea and road transportation groups, including the Universal Postal Union or UPU which has jurisdiction over all postal offices in the world.
“We have been caught by the growth of the e-Commerce industry without understanding the potentials of the safety hazards from allowing just anybody to send things through e-Commerce so we’ve been trying to do outreach. We ran workshops. We put information on our website to try and make people aware about the regulations on dangerous goods,” said the IATA official.
“We want to work with our airline members, shipping community, freight forwarding associations to try and raise that level of awareness,” he stressed, adding, that the group also reaches out to major e-Commerce platforms like Amazon, e-Bay and Alibaba.
Mounting Concerns
The International Air Cargo Association or TIACA has also raised safety concerns in transporting e-Commerce goods, especially when they are sent through posts.
“While major companies such as Amazon know how to properly handle and ship dangerous goods, one-off and smaller shippers may not – creating major challenges for safety. This has serious implications for airline operators, as they need to ensure the safety of shipments in their cargo holds,” a note from the group stated in one of their previous forums.
In 2013, ICAO agreed to new international standards for postal operators to prevent transporting dangerous goods such as lithium batteries via airmail.
Last year, lithium batteries resurfaced as a hotly contested issue amid the proliferation of shipping various electronic items from different online sellers and flight tests pointing to potential fires from shipping the batteries.
TIACA said both Boeing and Airbus suggested not to allow lithium batteries be carried on passenger aircraft but the ICAO’s DGR Panel opted not to impose a total ban and instead added some more restrictions in carrying them.
The group says any changes on rules on lithium batteries will have a significant impact on the air freight industry and the supply-chain.
Late last year, in a joint letter to Ministers of Trade, Industry and Transport, and Directors of Civil Aviation in the world’s largest lithium battery manufacturing and export countries, IATA, PRBA, the US Rechargeable Battery Association, RECHARGE, the European Advanced Rechargeable and Lithium Battery Association, the Global Shippers Forum (GSF) and TIACA have called for lithium battery safety regulations to be enforced at the point of origin including the initial shipper and the battery manufacturer.
They also called for fines for those who will violate the safety regulations in transporting lithium batteries.
Airlines allow both types as carry-on, either installed or carried as spare packs, as long as they don’t exceed the following lithium limitation:
• 2 grams per battery for lithium-metal (contend printed on battery)
• 8 grams per battery for Li-ion, as equivalent lithium content (ELC).
• 25 grams combined (300Wh total)
Source: Battery University
INDIA’S quest for
multimodal transportation
and seamless connectivity
Kerry Logistics Network Limited has signed with Tuvia Group, Italian holding company, an agreement for the acquisition of the majority stake of Tuvia Italia S.p.A. as part of its ongoing expansion in Europe.
Tuvia Italia S.p.A. is amongst the most dynamic companies in the field of air, maritime, land, multimodal shipments and integrated logistics in Italy. Headquartered in Milan with offices in Verona, Venice, Trieste, and Nerviano, the company manages over 25,000 square metres of logistics facilities.
“We have been striving to build our presence in Italy over the years and we are glad to have Tuvia joining our global network. We will continue to strengthen our coverage in Europe to ensure we deliver comprehensive logistics services globally with local knowledge,” said Thomas Blank, Managing Director of Europe, Kerry Logistics.
“Kerry Logistics’ existing Italian client base will benefit from Tuvia’s expertise and full range of services. We will further develop our offering in the region and enhance our freight forwarding capabilities in providing innovative solutions to meet the ever-changing business needs of our clients.”
Being an Authorised Economic Operator (AEO), a certified International Air Transport Association (IATA) agent, as well as a member of the International Federation of Freight Forwarders Association (FIATA) and certified ISO 9001, Tuvia Italia S.p.A. stands on the cutting edge of logistics.
Tuvia Italia S.p.A. will be integrated into Kerry Logistics’ European network and continue to be developed by an experienced management team led by Alessandro Canese, Managing Director at Tuvia Italia S.p.A.
Kerry Logistics has been growing its European footprint over the past six months, with acquisitions in Spain and Germany, and a new office in Warsaw, Poland.
The addition of Tuvia Italia supports its strategy of combining local know-how in the European region with a comprehensive footprint and infrastructure in Asia, granting easy access to the Asian market.
Having celebrated the first decade of the FedExCup last year with Rory McIlroy’s memorable charge to the championship, the PGA TOUR and FedEx Corp. recently announced the extension of the shipping giant’s sponsorship of the FedExCup season-long competition on the PGA TOUR.
As part of the sponsorship renewal, FedEx has committed $1 million in annual donations to benefit non-profit organizations. The donations align with FedEx Cares, a global giving initiative, in which FedEx is investing $200 million in over 200 global communities by 2020 to create opportunities and deliver solutions for people around the world.
Beyond defining the season champion, the FedExCup has made every tournament more meaningful through the season-long points competition and has created a consistent platform for media partners to tell the PGA TOUR story. The FedExCup Playoffs give fans the opportunity to see golf’s greatest players compete at the highest level in four high-profile events, culminating with the crowning of the FedExCup Champion.
Agility, a leading global logistics provider, acquired a two-story warehouse close to Changi International Airport, giving it more than 600,000 square feet of warehouse space in total in Singapore.
The newly acquired 177,000-square-foot warehouse is located in an area with access to an array of logistics services and two major expressways. Agility has operated in Singapore for more than 40 years and employs more than 400 people there. It owns four other warehouses in Singapore.
With an expanded footprint, Agility will be offering more services: automated quality inspections; a container-management e-system; a large-scale recycling program for packing materials; and enhanced warehouse management systems with regional data back-up and business-continuity features.
Mykell Lee, Agility CEO Singapore, said the company’s decision to invest S$25.5 million (US$18.25 million) in the warehouse is a sign of its long-term commitment and belief in Singapore as one of the world’s foremost transportation and shipping hubs. He said the acquisition gives Agility more capacity to add to its value-added service offering, which includes testing, assembly, configuring, labelling and packing.
“We aren’t just storing goods within four walls. In an expensive market like Singapore, customers want service innovation,” Lee said. “We are offering them technology-driven solutions to optimize their supply chains across the region. We have strong infrastructure and well-trained people to help execute that vision.”
Lee said Agility customers want help managing vendors, spare parts and raw materials. In addition, Agility provides tracking and visibility systems that allow customers to keep up with increasingly rapid inventory turns and complex supply chains. “For our fashion and retail customers, for example, we’re also the ones tagging goods with price and security labels, managing reverse logistics, promotions, and warehouse and atrium sales,” Lee said.
Agility’s acquisition comes as Singapore is expanding and upgrading port and airport infrastructure as part of its strategic plan to strengthen its position as a global logistics powerhouse and emerging leader in fast-growing Asian e-commerce. While historically a B2B provider in Singapore, Agility has recently partnered with a number of customers to help expand their supply chains from brick-and-mortar stores to e-commerce home delivery. “The market is moving and creating new opportunities. We are uniquely positioned to grow with our customers in this space.”
Technology has made the world smaller and faster.Real time communication with people from all over the world at different time zones through phones and gadgets
