Lo­gis­tics growth in full swing

En­thused by the ro­bust per­for­mance in FY 2014-15, the lo­gis­tics play­ers in the coun­try are all set to take the mo­men­tum for­ward and achieve higher rev­enue growth in the next one year. In this an­nual is­sue of CARGOTALK, we high­light the per­for­mance of FY 2

Cargo Talk - - Front Page - KALPANA LOHUMI

The fi­nan­cial year 2014-15 ended on a good note for the lo­gis­tics in­dus­try in the coun­try. It re­cov­ered well af­ter the slow­down in FY 201314. With most of the lead­ing lo­gis­tics play­ers post­ing dou­ble digit growth, the in­dus­try had suc­cess­fully ne­go­ti­ated the bad phase of the past years.

In­ter­est­ingly, the per­for­mance of most of the lo­gis­tics play­ers has been uni­formly spread out through all the quar­ters of the fi­nan­cial year 2014-15. The growth has been achieved on the back of good per­for­mance of var­i­ous sec­tors of the econ­omy, in­clud­ing man­u­fac­tur­ing and au­to­mo­bile.

The air cargo in­dus­try (do­mes­tic and in­ter­na­tional) had reg­is­tered 11 per cent growth over 2013-14. Out of the to­tal air cargo of 25.20 lakh MT han­dled dur­ing the year, 9.8 lakh MT was do­mes­tic and 15.4 lakh MT in­ter­na­tional. Though, the growth of do­mes­tic cargo has been sig­nif­i­cant, i.e. 18 per cent over last fi­nan- cial year (2014-15), it was only 6.9 per cent in the in­ter­na­tional sec­tor. The year 2014-15 saw valu­able ini­tia­tives be­ing taken on air cargo front, for ex­am­ple, the draft­ing of the Civil Avi­a­tion Pol­icy, though it is yet to come into ef­fect.

On the ports front, to­tal con­tain­ers han­dled at all In­dian Ports in­creased by around 10 per cent from 10.45 mil­lion TEUs in 2013-14 to 11.53 mil­lion TEUs in 2014-15. The sup­ply chain in­dus­try has grown at roughly 25 per cent CAGR.

On the other hand, the in­dus­try has also adopted a se­ri­ous view to­wards in­tel­lec­tual skill, in­fra­struc­ture for ed­u­ca­tion so as to raise a ca­pa­ble work­force to en­hance ef­fi­ciency.

Let’s hear it from the lead­ers on how 2014-15 fared for the in­dus­try and how lo­gis­tics com­pa­nies per­formed, along with their tar­gets for this fi­nan­cial year (2015-16).

Air Cargo Fo­rum of In­dia (ACFI) with other cargo in­dus­try as­so­ci­a­tions like IATA, ACAAI, FFFAI and Bar-In­dia Cargo have sought Gov­ern­ment sup­port on the fol­low­ing: Im­ple­men­ta­tion of EDI in or­der to have pa­per­less trans­ac­tions. All the mes­sage/doc­u­ments ex­changed be­tween stake­hold­ers in­clud­ing Cus­toms elec­tron­i­cally should be dig­i­tally signed. Mul­ti­ple Gov­ern­ment agen­cies should be linked with the Cus­toms for their re­spec­tive NOCs. This will in­te­grate all clear­ances through sin­gle win­dow sav­ing time and pa­per. Dwell time of ex­port and im­port cargo at all In­dian air­ports is very high and should be brought down dras­ti­cally. The above steps will help in dou­bling (22 per cent) the growth of air freight in­dus­try from its cur­rent rate of 11 per cent.

ACFI has also given 11 rec­om­men­da­tions re­lated to air cargo lo­gis­tics sup­ply chain in­dus­try in fol­low­ing two parts to be in­cor­po­rated in the Draft Civil Avi­a­tion Pol­icy;- Im­prove­ments to pro­mote air cargo trade in terms of vol­umes and busi­ness. Im­prove­ments to bring ef­fi­cien­cies in the air cargo sup­ply chain to make In­dia an at­trac­tive and ef­fi­cient busi­ness lo­ca­tion.

ACFI has taken up a num­ber of is­sues with the var­i­ous Min­istries about the chal­lenges the air cargo lo­gis­tics in­dus­try: Cus­toms Bro­ker, Agent and Car­ri­ers to be de­fined clearly in the Cus­toms Act for its du­ties and re­spon­si­bil­i­ties so that ac­tions on none com­pli­ance/vi­o­la­tion shall also be fixed clearly and not on pre­sump­tion. Cus­to­dian should be em­pow­ered to de­liver Im­port CNs to im­porters af­ter Cus­toms out of charge and ex­porters af­ter let ex­port or­der with­out fur­ther in­ter­ven­tion of Cus­toms in the ter­mi­nal op­er­a­tion which du­pli­cates the op­er­a­tion and de­lays the process. Cus­toms Cost Re­cov­ery should be ap­plied only in cases where the duty points are in re­mote ar­eas and the re­quire­ment of Cus­toms of­fi­cers is for spe­cific in­dus­try cen­tric. Im­ple­men­ta­tion of Cus­toms EDI to be done for pa­per­less trans­ac­tion. Dis­pen­sa­tion of print­ing Ex­port Pro­mo­tion (EP) Copy in the Cus­toms EDI sys­tem when ex­port ship­ments air­lifted out on the coun­try is trans­mit­ted to DGFT elec­tron­i­cally from Cus­toms ICES. In­tro­duc­tion of Sin­gle Win­dow Clear­ance in the pro­cess­ing of in­ter­na­tional cargo to re­duce time, pa­per work and re­duce trans­ac­tion cost. Go green records keep­ing for all the doc­u­ments main­tained by Cus­toms Bro­ker in soft copies 44 pol­icy re­lated rec­om­men­da­tions for Amend­ment in the Cus­toms ACT 1962 has been sent to CBEC for con­sid­er­a­tion.

Pradeep Pan­icker

Pres­i­dent, ACFI

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