Article

India loses 40% agri-produce on lack of storage

India is one of the largest producers of foodgrains and related crops but if suffers on account of lack of cold storage facilities.

A report by KPMG and Associated Chambers of Commerce and Industry (ASSOCHAM) has estimated that 40% of the agri-produce is lost in the fields after post-harvest for want of cold storage facilities.

Cold storage facilities for storing agri produce in India fall short of by 10 million tons since it has nearly 21.7 million tons of such facilities against the requirement of over 31 million tons as a result 40% of agri produce is lost in fields after its post-harvesting.

The report Food Processing and Agri Business of KPMG and ASSOCHAM adds that Indian export related infrastructure for agri produce is grossly inadequate especially at seaports and airports.

“More than 30% of produce from fields is lost to poor post-harvesting facilities and lack of cold chain infrastructure. India has nearly 21.7 million tons of facility whereas it needs over 10 million tons more of such capacities”, said ASSOCHAM President, Sajjan Jindal.

Quoting findings of the report, the ASSOCHAM Chief said that cold storage facilities now available are mostly for single commodity like potato, orange, apple, grapes, pomegranate and flowers etc. which result in poor capacity utilization.

Therefore, the Chamber has emphasized the need for setting up of operating cold chain facilities for other specified products and warehousing facilities for storage of agriculture produce through public private participation initiatives. Although the Budget for 2009-10 has provided a great deal of incentives for setting up of warehousing and cold storage facilities with capital subsidies.

However, land acquisition for setting up of such facilities is still a large bottleneck as without government intervention, land cannot be acquired for creation of such facilities because it is an area which falls in the state list.

The Ministry of Agriculture and Food Processing should therefore facilitate land acquisition so that a good number of cold storage facilities are put up near sea and airports to reduce transaction costs.

Supply chain hindrances in Indian agri business are the most renowned for its long and fragmented supply chain. The inefficiencies in supply chain lead to huge losses due to wastage or shrinkage of perishable commodities.

The ASSOCHAM-KPMG Paper further says that the entire supply chain is dominated by unorganized players and absence of any structured market to ensure correct price discovery and availability of consistent quality produce. Several middlemen add to wastage from the farm to the consumer, retailer, processor or exporters.

A long supply chain also means that each level of the supply chain is unaware of the requirements of next level and thus there exists disconnect between farmer and processor.

The Paper has also recommended more fiscal incentives towards technology upgrade in food processing. The companies that are constrained by finances in upgrading to latest technologies in food processing will need to have an incentive and tax breaks that are helpful in initiating technological changes. This will lead to enhance quality and better value addition.

NEWS ROUNDUP

Ports / Shipping

Chennai Port’s concern over CPCL move
Chennai Port Trust (ChPT) has termed the Rs 1,000-crore single buoy mooring (SBM) project of Chennai Petroleum Corporation Ltd as “a breach of agreement”.

CPCL, which imports about 10 million tonnes of crude oil for its refinery at Manali, north of Chennai, is one of the key customers of ChPT, fetching the port revenues of about Rs 13 crore annually. In 2003, CPCL signed an agreement with the Port Trust under which it agreed to stay with the port for the next 30 years.

The Deputy Chairman of ChPT, Capt Subhash Kumar, says that after the agreement, the port trust reduced wharfage to Rs 10 a tonne from Rs 35 earlier.

“In other ports, wharfage is around Rs 65 a tonne,” he said. The port trust invested further — changed a loading arm, fire-fighting equipment and even contributed funds to a portion of the pipeline linking the port to CPCL’s Manali refinery.

Capt Kumar said the 2003 agreement was an outcome of the government thinking that all ports needed to review the POL (petroleum, oil, lubricant) tariff before its diversion became a threat to the ports. Consequently, ChPT strove to retain CPCL’s business, offering wharfage concession.

Kolkata port’s interests will be protected in dredging issue
In a high-level meeting held last week the impasse created by the Shipping Ministry’s decision to withdraw one of the Dredging Corporation of India’s (DCI) dredgers from the Hooghly near Haldia dock and to send it to other ports was discussed.

The meeting was attended by the Union Minister of West Bengal for Shipping, Mr Mukul Roy, and the Joint Secretary (Shipping), Mr R. K. Srivastava, and the CMD of DCI, the acting Chairman of Kolkata Port Trust and other senior officials of the port.

Later, the Minister said the interests of Kolkata Port, including Haldia dock, would be protected at any cost and DCI should fulfil its contractual obligation to dredge in the Hooghly near Haldia.

KoPT may have a new chairman soon

KoPT can have a new chairman in seven to 10 days, Rakesh Srivastava, joint secretary shipping indicated here.

The post is vacant after the last KoPT chairman A.K. Chanda stepped down on June 24 this year.

Among the names doing rounds in the government and industry circles for the post of KoPT chairman are Sabyasachi Sen, state industry secretary, Debashis Sen, managing director of West Bengal Power Development Corporation Ltd (WBPDCL), and M.L. Meena, principal secretary, state environment department.

Cargo handling at Tuticorin port
The Tuticorin port has been progressing steadily handling about 7.88 million tonnes during the last four months despite the economic slowdown, according to Mr G.J. Rao, Chairman, Tuticorin Port Trust. The performance was 11.82 per cent higher than that of the corresponding previous period and 10.62 per cent more than the target set for April- July this year. The port had taken up inner and outer harbour developmental programmes.

Dhamra port likely to be operational by next April
Tata Steel expects the Dhamra port in Orissa to be operational by next April, according to the company’s latest annual report. Initiated in October 2004 as a joint venture with Larsen & Toubro, the project, developed on a build, own, operate, share and transfer basis, had faced opposition from environmentalists.

The project cost was initially pegged at Rs 1,500 crore.

“Acquisition proceedings for a private land for the railway corridor have been largely completed in respect of a total of 2,033 acres and the construction of the port is more than 50 per cent complete. The port is expected to be operational by April 2010,” the report says.

Having received necessary environmental clearances, the port is taking a number of safeguards and measures under the direct advice and supervision of the International Union of Conservation of Nature, a scientific body on environment and wildlife, to ensure that the construction and operation of the port does not pose any threat to ecology. To start with, the port will have two berths of 25 million tonnes capacity a year. One will handle coking coal imports and the other iron ore exports.

Port workers seek Minister’s intervention on wage revision
The five major federations of port and dock workers have sought the intervention of the Union Shipping Minister, Mr G.K. Vasan, to settle the long-pending issue of wage revision in the port sector, as the meeting of the bipartite wage negotiating committee had failed to arrive at any settlement.

Mr T. Narendra Rao, General Secretary of the Water Transport Workers Federation of India, said that the leaders of other federations such as the All-India Port and Dock Workers Federation, All-India Port and Dock Workers Federation (Workers), the Port-Dock and Water Front Workers Federation and the Indian National Port and Dock Workers Federation met in Mumbai and appealed to the Minister to intervene in the long pending issue of wage revision for the port and dock workers, following the failure of talks in this regard.

According to Mr Rao, the managements of the ports, represented by the Indian Ports Association, has offered only 30 per cent increase on the basic pay alone whereas the federations were demanding that the 38 per cent of fitment may be acceptable only on basic pay + dearness pay + remaining DA as on January 1, 2007.

When the IPA appealed to the federation leaders to consider its demand for early settlement, the federations proposed a modified fitment formula on the same analogy but for 34 per cent.

However, it was also not agreeable to the management. So, stalemate persists on the issue, Mr Rao said.

The existing settlement of the port and dock workers expired on December 31, 2006 and the revised pay and other benefits should have taken place with effect from January 1, 2007.

Nineteen rounds of discussion on the wage revision were already over and the workers are in an agitated and annoyed mood. Hence, it was decided to seek the Minister’s intervention for an amicable settlement, he added.

TNEB asks Ennore Port to treble coal handling capacity

The Tamil Nadu Electricity Board (TNEB) has asked Ennore Port Ltd (EPL) to increase the port’s installed capacity to handle coal (only for the TNEB) by nearly three times in the next five years. The TNEB wants the port to be able to handle a total volume of around 35 million tonnes (mt) of coal by 2013-14 from the present 12 mt, according to Mr S. Velumani, Chairman and Managing Director, EPL.

The expansion is to meet the TNEB’s plans of adding nearly 5,000 MW of capacity in the next five years. EPL’s capacity expansion, including a new berth and dredging, could cost around Rs 200 crore. EPL will request the Indian Maritime University to take up a detailed feasibility study on the project, he said.

Last financial year, the port handled nearly 10 mt of coal for the TNEB, he said.

For the expansion, two more unloaders will be required.

At Central Berth 2 the capacity will be increased to 16 mt. Construction of a third berth for coal handling will be taken up based on the feasibility study, he said.

Mr Velumani said a 500-MW plant annually requires nearly 2.5 mt of coal, which will mainly come from Paradip. The existing arrangement will continue, that is, the TNEB with EPL creating the infrastructure, he said.

EPL has set apart the existing two coal berths for handling thermal coal required by the power plants in which TNEB is a stakeholder. At present, the coal requirement for power generation at the plants of TNEB having linkage to Ennore port is around 10 mt a year.

The new grab unloaders to be installed should be capable to unload coal from the large Panamax vessels (80,000 – 100,000 dead weight tonne), which have a broader beam, he said.

Shipping Ministry Committee Recommends Bar of rival pvt ports from bidding for major terminals
There is a need to have a policy that prevents competing private ports from bidding for operating terminals in major ports under the public-private partnership (PPP) policy, a Shipping Ministry committee has recommended.

Such a policy will promote inter-port competition and also prevent private ports from diverting high-value cargo from major ports by operating a terminal within the major port under the Centre’s jurisdiction.

The private ports under State Government jurisdiction are not regulated by the Tariff Authority of Major Ports and they enjoy greater flexibility.

Under the PPP policy, the terminal operator in a major port is required to meet a minimum throughput an annum and shell out certain share of revenues to the port trust.

Private ports located within a 100-km radius of a major port should not be allowed to bid for operating a terminal of that major port, said the committee set up to suggest ways to improve functioning of major ports.
For instance, should the Mundra Port Special Economic Zone (MPSEZ), promoted by the Adani Group, be allowed to bid for operating a terminal in the nearby Kandla port? After all, Kandla and Mundra ports could end up competing for handling the same cargo.

Recently, a consortium led by MPSEZ won the bid to develop coal handling terminal at the Mormugao port, Goa, on a design, build, finance, operate and transfer basis.

The contract involves development and operating a berth at the Mormugao port to handle about 6.5 million tonnes per annum (mtpa) of cargo.

Mormugao port is a key location for handling coal for industries in and around Goa, andalso to feed the Bellary-Hospet region of Karnataka and southern Maharashtra.

Currently, MPSEZ is also developing a 50-mtpa coal handling terminal at Mundra.

The Adani Group had also bid for operating terminals in major ports, including Paradip and Visakhapatnam on the east coast.

By operating within a major port and outside it, the private entity may divert high value cargo to the outside port (where the operator has a higher stake and lesser regulatory commitments).

The fear is this situation may also ultimately lead to monopolistic tendencies.

Vizag port handles 24.4 mt cargo
Visakhapatnam port handled 24.4 million tonnes of cargo during the current financial year against 25.1 mt during the corresponding period last year in spite of the economic recession and competition from private ports, according to Mr Ajeya Kallam, port chairman. He said Visakhapatnam steel plant cargo was being handled by Gangavaram port and the recession also had its impact, resulting in the marginal shortfall.

The port had handled the highest ever traffic of 63.9 mt during 2008-09 financial year and had taken up several projects to augment capacity. Deepening of the inner harbour entrance channel to 11 metres draft was completed and tenders were being invited to further deepen it to 12.5 m draft, he said.

TECHNOLOGY

India Joins Other Countries in Testing Postal GMS Service
India and 20 other countries have begun using the UN Universal Postal Union’s new Global Monitoring System (GMS) to monitor the quality of their letter-post service using Radio-Frequency Identification (RFID) technology.

The GMS is a global system using RFID technology that will be accessible to both industrialized and developing countries, reports the Universal Postal Union (UPU).

The first phase of the project will have 530 independent panelists from 38 countries to send 24,000 test letters containing RFID tags and passing through 45 postal facilities around the world starting this week until the end of the year.

All information collected during the test run will be used by UPU to spot areas that need improvement. The other participants of the test run include: Aruba, Chile, Greece, South Korea, Malaysia, Mexico, Netherlands Antilles, Norway, Peru, Qatar, Romania, Saudi Arabia, Singapore, Spain, Tunisia, Slovakia, Switzerland, Togo, United Arab Emirates and Venezuela.

Take Solutions to buy IPs for 2 product lines
Take Solutions Ltd, a Chennai-based software company, expects to see additional revenue of $4 million in the current fiscal and $6.5 million next year through its latest acquisition.

It had bought the intellectual property (IP) of two product lines from two US-based companies – PSI Software and EntComm.

The base price for the acquisitions will be $2.1 million and there is an ‘earn out’ provision of $4.7 million over the next two years. The company has nearly Rs 100 crore in cash, Mr H. R. Srinivasan, Founder and Vice-Chairman, Take Solutions, said.
From PSI, the company bought the IP for the software that helps companies in the US in documentation to comply with North American Free Trade Agreement (NAFTA).

Take Solutions, which is into supply chain management and life-sciences products, will use PSI’s product with its existing clients in the US.

There are over three lakh companies that work on preferential treatment as per the NAFTA. For example, an American company exports to Mexico and from there the products can be exported to any other country or can come back to the US.

There are a number of ‘complex’ documentation processes in this entire supply chain, which the software will simplify, he said.

The product from EntComm is for use in high capex industries such as oil and gas where there are thousands of ‘suppliers on boarding’ – say an offshore or a rig platform EntComm works with thousands of suppliers of different sizes and capabilities to take the responsibility of on-boarding the entire supplier base. Currently, there are over 25,000 ‘on boarding’ suppliers, he said.

Four Soft gets UGL as client
Four Soft, IT solutions provider for the logistics industry, has said that they added Unique Global Logistics Private Ltd (UGL) as a client for its freight forwarding application 4S eTrans. Promoted by Eastern and Allied cargo group, the Mumbai-based UGL catered to companies in oil, gas, wind energy, marine logistics, infrastructure and power sectors.

Airways / Railways/ Road Transport / Infrastructure

Cabinet approves $18.7 mln infra projects

India on Thursday approved port and mine projects worth 9.1 billion rupees ($18.7 million), a minister said, as the country aims to speed up infrastructure development to lift economic growth.

The cabinet committee on infrastructure approved the development of four multi-purpose cargo berths at Kandla Port in Gujarat at a cost of 7.56 billion rupees, Urban Development Minister Jaipal Reddy said.

The panel also approved a 1.54 billion rupees to expand capacity at Rajmahal coal project of Eastern Coalfields Ltd, which would enable it to supply up to 17 million tonnes of coal from present capacity of 10.5 MT, mainly to NTPC.

India has ambitious plans to ramp up its infrastructure spending to $500 billion for the five years ending March 2012.

Rungta Mines plans Rs 600-cr cement unit in Orissa
Iron ore mining firm Rungta Mines (RML), the flagship company of SR Rungta group, plans to set up a 1-million-ton cement plant in Orissa with an investment of around Rs 600 crore, a top company executive said.

The move, proposed to be funded through a mix of debt and internal accruals, would diversify the business of the group beyond mining and steel production.

"The cement project is currently in the evaluation stage and, if finalised, will be established in Orissa," said Siddharth Rungta, president of privately-held Rungta Mines. He added in the short term, the company would continue to focus on mining and steel business.

RML is in talks with the state government for allocation of limestone reserves to execute the cement project. Limestone is a key input in cement and every tonne of cement making requires 1.5 tons of the raw material.

Surya Roshni to diversify into cement, steel

Lighting and steel-pipe solutions provider Surya Roshni Ltd is diversifying into infrastructure sector and setting up a cement plant in Gujarat and a steel unit in Chhattisgarh. The company will invest nearly Rs 1,100 crore in setting up a cement plant in Kutch district of Gujarat, with a capacity of 20 lakh tonnes per annum. The plant is expected to commence commercial production by 2012.

Proximity of Kutch to major ports such as Kandla and Mundra, the expected easy availability of raw materials, the fast-track clearances offered to industry, and the peaceful industrial relations were the factors that spurred the company to set up this plant in Gujarat.
To execute the project, a subsidiary, Surya Global Cement Ltd, has been formed.

US Inc eager to invest in Indian infrastructure

American businesses are waiting for the Indian Government’s framework to bring in foreign investment in infrastructure projects in India, according to former US Ambassador, Prof Nicholas Burns.

Speaking at an interactive session organised by the Federation of Indian Chambers of Commerce and Industry, he said, “There was appreciation in the US that India was an important market. But the question being raised by American business is whether India’s budget for 2009-10 will spur reforms in attracting FDI and private investment. People are waiting and watching whether the Indian Government will provide the framework for luring investment from overseas.

WAREHOUSING/DISTRIBUTION

Snowman plans to expand capacity

Snowman Frozen Foods Ltd, cold chain logistics service subsidiary of the Singapore-based Gateway Distriparks Ltd, is set to triple its capacity with an investment of Rs 100 crore ($20 million).

According to International Finance Corporation’s Web site, the World Bank armis considering an investment of $5 million in Snowman.

Snowman will bring in the balance funds for the expansion through internal accruals, said sources. Snowman is a joint venture between Gateway Distriparks (51 per cent) and Mitsubishi group of companies, Japan.

Mitsubishi is likely to dilute its stake to make way for IFC, said sources. Gateway Distriparks is a logistics company that operates container freight stations and depots across India.

According to sources in the know, Snowman, which has a pan-India presence in cold chain storage and logistics infrastructure, plans to expand its capacity to about 30,000 tonnes — pallets in industry terms — over the next year-and-a-half. Its capacity is now about 10,000 pallets spread across 18 locations and a fleet of 77 reefer vehicles.

The company plans to expand into Tier-II and III towns. It will either construct its own storage facilities or take existing facilities on long lease and retrofit them to modern specifications.

45 mn sqft warehousing space expected in India in 5 yrs

In the next five years, about 110 logistics parks and 45 million square feet of warehousing space is expected to be developed across the country by various logistics companies, a report says.

This upsurge in the logistics and warehousing industry will, in turn, boost real estate activities in key locations across the country, according to the report by real estate consultancy Cushman and Wakefield.

Though India's logistics sector holds tremendous potential, it, at present, forms barely two per cent of the estimated USD 5,000 billion global logistics industry.

Despite the impressive growth rates, the logistics sector in the country is grappling with many inefficiencies. Logistics cost in India is fairly high at around 13 per cent of GDP, much higher than that in USA (9 per cent), Europe (10 per cent) and Japan (11 per cent), the report said.

The inefficiencies of the Indian logistics industry can be attributed to factors such as a complicated tax regime, fragmented market structure and inadequate infrastructure, the report said.

While India lags behind major global logistics hubs like Singapore, factors like the changing tax regime increasing trade and the emergence of organised retail will lead to accelerated growth in the sector over the next 5-7 years.

Infrastructure developments like the dedicated railway freight corridors, road development projects and modernisation of over 37 operational airports will increase India's handling capacities, thereby enhancing logistical performances.

The logistics industry in the country is expected to grow annually at the rate of 15 to 20 per cent, reaching revenue of around USD 385 billion by 2015.

INTERNATIONAL NEWS

CMA CGM restores rate on India/Pakistan-Europe route

CMA CGM, the world's third largest container shipping line, has decided to restore freight rates between India/Pakistan and Europe to a substantial level, according to company sources. The new rates, to come into force from September 1, will apply to west- and east-bound cargo between India/Pakistan and Europe/Mediterranean.

Four Soft names Europe sales head

Four Soft Ltd, a logistics solutions provider, has appointed Mr Simon Shore, as the new Sales Head for European market. “We see a huge market opportunity for the IT logistics solutions across Europe. In order to tap this potential, we are ramping up sales operations there,” a Four Soft press release said last week.

TNT to offer eInvoicing with digital signatures

TNT today announces that customers in Singapore, Malaysia, Indonesia, Thailand, Cambodia, Vietnam, Philippines, Hong Kong and India, will enjoy the benefits of eInvoicing – secure electronic invoicing with digital signatures attached. The web-based service, which is provided free of charge, offers time- and cost savings, environmental and security benefits for both TNT and its clients. TNT is offering the new eInvoicing data in several formats, including PDF and CSV.

Onno Boots, regional managing director of TNT Asia, said, “The introduction of eInvoicing underlines TNT’s commitment to offering unrivalled customer service. In today’s highly-competitive business environment, time is money. By making invoicing less time-consuming and more adaptable to our customers’ specific requirements, we are freeing them up to focus on what they do best: running their businesses.”

Just as email is more efficient than snail mail, eInvoicing offers significant time-saving benefits. eInvoicing reduces paper handling costs and improves the accounts payable management process.

The electronic invoices are available for download in a number of formats, including PDF and CSV. Managing shipping transactions is more straightforward as customers can easily download and consolidate the invoicing data into their own accounting systems.

eInvoicing ensures that TNT and its customers make an invaluable contribution to achieving environmental sustainability. Reducing the number of paper invoices saves trees and reduces disposable waste. TNT’s eInvoicing service is already available in 42 countries worldwide, with 14 more countries to be implemented this year and TNT estimates that it could eventually eliminate up to one million paper invoices per month.

TNT’s eInvoicing addresses the issues of data protection and security. Password-protected accounts on secure websites, provide more security than a potentially vulnerable paper trail.

“We are pleased to introduce eInvoicing in India. The new eInvoicing service has been designed with the requirements of our customers in mind; requirements which we have worked closely with them to identify. eInvoicing will help our customers to manage shipments and payments easily and efficiently. einvoicing not only helps save time but also protects the environment with reduced usage of paper invoices” said Mr. Abhik Mitra, MD, TNT India.

Janel World Trade Ltd. continue to be very optimistic about progress from EPD

Janel World Trade, Ltd. (JLWT), a full-service global provider of integrated transportation, logistics and environmental services, commented on plans to deal with the business environment for the remainder of fiscal year 2009, ending September 30, 2009, combined with prospects for the first two quarters of 2010.

Retail sales in May increased by 0.5% over April following four straight drops, according to a Commerce Department report released last week. Economists were only anticipating a 0.2% gain, according to The Associated Press.

“With this news, we believe the recession-related drop-off has mostly stabilized; our volumes of shipments have been increasing since May except for August which traditionally is our biggest vacation month; our customers will continue replenishing inventories for the Holiday season,” said James N. Jannello, the Company’s Executive Vice President and Chief Executive Officer.

“Clothing and textile products are a major consumable item during the Holiday season and because many of our customers will be ordering later in the season to keep their inventories minimized, we see a shift in some clothing and textile shipments that normally come from Asia shifting to Central America due to shorter transit times and duty free CAFTA arrangements. We see this trend continuing throughout the year,” continued Jannello. “Janel has become a key service provider in Central America, particularly in clothing and textiles and we see a continuation in that business activity to meet the flexibility and just in time market demands.”

"We continue to be very optimistic about progress from our Environmental Projects Division (EPD). We have successfully completed our product testing in China with results that exceeded everyone’s expectations including the Chinese,” said Paul McCreary, President of Janel’s EPD Division. “We have received letters of sponsorship from two government agencies in China, letters from our Congressional delegation in New York and letters from two U.S. Senators supporting Janel’s initiative in China.” “China is the largest environmental marketplace in the world and the opportunity for Janel and other U.S. companies is huge,” said McCreary. China has allocated $14.8 Billion for the cleanup of Lake Tai.”

“The World Bank project we are presently involved with in Wuxi will run close to $300 Million when fully funded,” Mr. Jannello stated, “The financial numbers in these projects speak for themselves.” “We have come a long way with our EPD Division in the last year and it appears we are very close to being awarded a pilot project in Meiliang Bay near Wuxi, and with the governmental support we have received will establish Janel as a leader for U.S. companies to capitalize on this very significant Chinese environmental marketplace.” “The financial impact for our company will be positive and very significant early in fiscal year 2010,” continued Jannello.

“While we will continue to aggressively manage our costs, the top line opportunities both in our core business and our EPD Division are very exciting and lead us to be upbeat for the remainder of this year and very optimistic about fiscal year 2010,” said Mr. Jannello.

UPS Provides E-Commerce Shipping Solutions to DHgate.com

Dhgate.com, a leading China-based wholesale marketplace that enables global online transactions, has become the first wholesale ecommerce collaboration for shipping giant, UPS (NYSE:UPS) in China. The companies have announced that the UPS suite of integrated shipping tools is now available to users of DHgate.com. Through this relationship, DHgate.com customers will benefit from direct control of shipping options to manage their businesses via the DHgate.com platform.

The integration of UPS Online Tools with the DHgate transaction system allows users to calculate costs, request a shipment pick-up, track shipments and review transit times for international shipments.

Savi Networks selected by Coscon Logistics to Launch GPS Tagged Shipments In China

Coscon Logistics, the leading logistics provider in China, said that it will begin real-time, GPS tracking and monitoring of shipper conveyances. The program, will provide Coscon shippers and customers with improved supply chain execution, efficiency and security.

This initiative is made possible by a global GPS-based sensor network provided by Savi Networks. Sensor devices attached to Coscon shipper containers will provide real-time data through Savi Network's GPS system helping customers improve their supply chain processes, increase security, reduce inventory levels, provide real-time information on delivery times, and most importantly, reduce overall supply chain costs related to China's complex logistics environment.

In addition to providing real-time visibility of cargo location, sensor devices report on the security status of the shipments as well as environmental conditions inside the container such as temperature and humidity. The sensing capabilities provided by the GPS network give immediate alerts of cargo theft and damage, offering a higher level of security and product integrity.

Real-time, actionable data on the location and security of the container and its cargo will be available through a web-based application accessible to COSCON customers, which enables them to view the actual route of shipments through automatically generated maps and perform exception management of the progress and security status of their shipments in real-time. With this capability, customers, their suppliers and partners in China and across the extended supply chain can now monitor shipment status at any time and from virtually anywhere.

"As the leading integrated logistics provider in China, we intend to use Savi Networks' GPS network to extend our leadership position by providing our customers improved supply chain execution and decision capabilities that significantly reduce cost," said Lin Hongbing, General Manager of Coscon Logistics.

Pudong Airport bonded area approved

The municipal government of Shanghai has obtained approval from the State Council, China's cabinet, to build a bonded area in Shanghai Pudong International Airport, said a local official, the official Xinhua News Agency reported on Monday.

The tax-free bonded area will be the first bonded area at an airport in mainland China and will cover an area of about 4 square kilometers, according to the report.

The move will help Shanghai become an international center for shipping, said Chen Xuyuan, president of Shanghai International Port (Group) Co.

The airport handled 2.63 million tons of cargo in 2008. It is the third-busiest airport in the world in terms of freight traffic. It handled a total of 28.24 million passengers last year, making the airport the busiest one in mainland China.

TNT opens new warehouse in the Philippines

TNT has opened a depot in San Fernando, Pampanga, a move that will build its presence in central Luzon where the Subic and Clark special economic zones are located.

Besides being able to handle 400 tons of shipments a day, the P15-million Pampanga depot has an 800 square-meter area for handling, check-in, Larose label printing, data entry, scanning, bagging, consolidation, and deconsolidation activities.

The facility includes a multi-pallet-position selective racking facility which is ideal for various storage requirements, the company said in a statement.

It also has “freight operational capability backed up by strong global network and ISO-certified processes," Cetin Yalcin, TNT Philippines country general manager, said in a statement.

The facility is expected to benefit companies with operations in Clark and Subic especially since most of their products will be sent and sold abroad.

These companies – also known as locators – “have already expressed interest in TNT’s presence in the region," Yalcin added.

“They like the fact that there is a dedicated service provider that is flexible to their current and future shipment needs. With further expansion and investment in mind, we are poised to drive the express and freight market in this region as well as in the rest of the Philippines," Yalcin said.

The facility “will further improve the services offered by TNT to its customers in the Philippines and will enhance the connectivity and quality of the TNT Asia air and road network," TNT Asia operations director Chris Spanjaard said in the same statement.

Odom goes live with Retalix WMS at five DCs
Retalix, a leading provider of enterprise and supply chain software solutions, has announced that beverage distributor The Odom Corporation is now live at its fifth distribution centre using Retalix Power Warehouse, Retalix Power Voice and Retalix Power Productivity software solutions.

The Odom Corporation, based in Bellevue, has grown into one of the largest privately held companies throughout Alaska and the Pacific Northwest. The company’s flagship lines include Coca-Cola, Miller Beer and Coors Beer, among other leading beverage brands. “When we decided to automate our warehouse operations, we felt that Retalix clearly had the best WMS to suit our needs,” said Bob Jenness, director of information systems for Odom Corporation. “All the modules are fully integrated and will give us the flexibility and reliability to serve us well into the future.”

Retailix Power Warehouse is a warehouse management system (WMS) that can address best-in-class capabilities for route-based, multi-stop beverage distributors seeking higher operational efficiencies and improved customer service. Using barcode scanning and wireless radio frequency (RF) technologies, the software automates numerous warehouse operations, including receiving, returns processing, order selection, shipping and inventory control.

“Retalix Power Warehouse will enable Odom to decrease direct labor costs while increasing service levels,” said Rik Schrader, senior vice president, global sales and marketing for the Retalix Supply Chain division. “This level of automation will, in turn, drive best-practice agility in their distribution operations.”

Retalix Power Voice uses Vocollect Inc.’s Voice software as an integrated component within Power Warehouse coupled with the wireless Vocollect Talkman mobile computer and headset. This enables hands-free picking for warehouse employees, improving order accuracy and productivity while providing real-time inventory updates.

Retalix Power Productivity monitors and measures employee productivity based on company-set standards for various warehouse tasks. The software also provides reports that warehouse management can use to forecast future workloads and schedules.

Odom plans to go live at a sixth distribution center running the Retalix software suite in Anchorage, Alaska, shortly.

Snapfulfil Finds Its Voice
Snap-On-Demand Solutions, globally renowned for its award winning SaaS WMS (warehouse management system) solution, Snapfulfil, announces it has signed a new partnership agreement with top-VOX UK, suppliers of Pick by Voice systems to the logistics industry.

"The partnership with top-VOX will significantly enhance and strengthen the total solution we offer to our clients" explains Mark Darley-Usmar, MD of the Snap-On-Demand® team. "We believe the SaaS business concept will be the pre-eminent delivery model for software solutions. Combining this offering with a world class Voice solution, also available on a subscripton basis, ensures that your choice in selecting Voice as part of your solution is now truly an operational decision and not a financial one." continues Darley-Usmar.

"top-VOX is committed to making available the benefits of Pick by Voice to all, not just those with specialist needs or the 'wealthy' and was delighted to have the opportunity to extend its activities and form this special partnership with the SnapOnDemand team as its SaaS "Voice" partner, " comments Raymond Batey top-VOX Managing Director. "We feel the SaaS (Software as a Service) model, delivered by Snapfulfil, is highly innovative for the WMS marketplace, especially during these trying economic times", he added.

SnapOnDemand Solutions has over thirty years of experience in the development and realization of WMS solutions for clients such as Coca-Cola UK, Vodafone and SCA Hygiene Products. Their reputation for innovation and service has been enhanced with the successful introduction to the market of Snapfulfil WMS. The solution is a new and very different model from those supplied by conventional WMS vendors, as Snapfulfil operates as a SaaS-model. This is delivered on a fixed fee monthly subscription basis, requiring No- Capex, and significantly the solution includes RF (radio frequency) and/or voice as a standard offering.

Carrier Enhances Foretrack™ Visibility and Savings for Operators

Carrier Transicold has updated Foretrack™, its proprietary satellite tracking and fleet management system, to allow operators greater and faster analysis of their refrigerated fleets across Europe.

The Foretrack system uses GPRS technology to keep track of temperature controlled vehicles and to enhance reporting systems.

With this latest update, operators no longer need to use a Carrier Datacold™ 500 temperature recorder, as the enhancement allows them to connect directly to the individual refrigeration unit microprocessor on each truck or trailer, whilst being able to monitor and record the set-point, running mode, compartment status, defrost, hour meter data and warning alarms. Any of this information can be read by operators in their fleet offices, relating to any of their loads, wherever those loads may be.

The system provides a host of real time data direct via the Internet. The ability to offer live, web-based fleet management of individual trucks and trailers through vehicle tracking, combined with accurate temperature reports and alarms and other data such as idling, braking and route deviation, allows operators to fully manage and analyse their fleets from their desktop or laptop PCs.

“The Foretrack system helps operators to more effectively and profitably manage their fleets, with the ability to provide real-time data,” said Mark Daniels, service engineering manager, Carrier Transicold U.K. “They can also use the data to easily produce management reports and driver behaviour statistics.”

In addition to temperature monitoring and immediate alarm notification, the Foretrack system helps improve cold chain integrity and can help operators to enhance their own reputation with customers by allowing them to demonstrate greater accountability in the preservation of temperature-sensitive cargo.

The update of the Foretrack system also includes a new, read-only option developed in response to requests from the pharmaceutical industry. This new feature, allows data produced in Microsoft® Excel reports to be locked to avoid alteration. This security feature is combined with random, system-generated passwords to provide more secure reporting facilities.

As legislation and regulations on food safety and the monitoring of perishable goods toughen across Europe, fleet operators need to be sure that drivers and loads fully comply, no matter where they are.

“We have a number of examples of customers who have noticed an immediate payback after upgrading to the Foretrack system because it has helped identify and correct coverage gaps,” added Daniels. “One customer in particular had previously lost a number of loads on a particular route. By applying the Foretrack system to loads on the route, it quickly became apparent that the losses were the result of anomalies in the way the refrigeration unit was manually operated.

Witron is awarded large order from Switzerland
Migros, the largest food retailer in Switzerland with a turnover of some 17 billion Euros, awarded Witron Logistik + Informatik GmbH from Parkstein the order to implement its OPM system in Suhr.

With OPM (Order Picking Machinery), it will be possible to economically and efficiently automate the entire in-house supply chain from receiving through shipping. After ramp-up of the system in April 2011, Migros will have the capability to supply some 600 stores throughout Switzerland using the state-of-the-art logistics center in Suhr.

As general contractor, Witron will not only design and implement the logistics system. Its subsidiary FAS will produce and install the tray conveyor system, tray stacker cranes and COM machines.

This order further expands the long-lasting partnership between both companies.

“With this new picking system, Migros will be able to develop additional business areas and expand existing ones. The continuously increasing market requirements can be perfectly covered with the dynamic functionalities of the OPM system. This investment is another step into a healthy and lasting future of the MVS (Migros Verteilzentrum Suhr)”, says Daniel Waltenspühl, head of the MVS.

The system is composed of a 56-aisle tray warehouse with 285,000 tray locations. In the future, some 315,000 cases from a dry assortment consisting of 4,500 different SKUs will be picked each day with 28 COM machines. These 28 COM machines will produce store-friendly pallets. Since the entire order picking will be done without human intervention, it will be free from any pick errors. The existing high bay warehouse that was implemented by Witron in 2002 will serve as a replenishment warehouse consisting of 68,000 pallet locations. A part of the former system will also be used for the handling of special offers, as a buffer warehouse for dispatch pallets and for the receiving and goods issue processing.

The realization of the project will be both a logistical and architectural masterpiece. The compact footprint of Witron’s OPM will allow the new storage area to be erected on the roof of the existing logistics center.

With the decision for OPM, Migros relies on a warehouse and picking system that has established itself as an efficient and extremely successful solution for the food retail market throughout the world since 2003. Including the Migros project, Witron has sold 286 COMs in 17 projects for retail companies in Germany, Switzerland, Spain, the US and Canada.

Cambridge Food Company chooses BCP’s Accord®

Foodservice wholesaler, Cambridge Food Company, is making a significant investment in an 11 user Accord® system from supply chain solutions specialist, Business Computer Projects Ltd (BCP).

Established in Cambridge over 20 years ago, Cambridge Food Company is a family run chilled food wholesaler servicing the catering trade in the East of England. Customers include restaurants, hotels, caterers and independent food outlets, as well as Cambridge University colleges. The company prides itself on its excellence and customer focus and uses its own fleet of purpose-built, multi-temperature vehicles to deliver a range of premium specialty, ethical and local produce.

BCP is one of the UK’s top suppliers of specialist Supply Chain solutions to the Food and Drink Wholesale industry with key clients including BWG, Musgrave, SPAR, T Quality and Creed Catering.

The investment in new technology was prompted by Cambridge Foods’ rapidly expanding business and the need for a specialist solution which could support this growth and easily scale upwards to meet the needs of an enlarged operation. The existing general purpose computer system lacked many of the facilities required for Foodservice and generated a lot of time consuming manual processes.

The investment covers BCP’s complete Accord® solution including Purchasing, Sales Order Management, Stock Control, Telesales, Financial Accounting and Customer Relationship Management (CRM). It will be implemented over the course of the next few months.

Cambridge Foods selected BCP because of its successful implementation record, its financial stability and Accord®’s powerful functionality. Mark Hulme, Director, Cambridge Foods, explains: “We’ve been struggling with our current system for some time and have had to work hard to make up for its shortcomings. Accord® is an excellent fit for our business, particularly in the key areas of telesales, pricing, ordering and stock control. We can’t wait to have it up and running so we can take advantage of its functionality.”

Strong demand for used trailers
Schmitz Cargobull (UK) Ltd reports an 18 per cent year on year increase in used trailer enquiries, while orders are up 50 per cent .

“In the current financial conditions refurbished trailers clearly represent an attractive alternative to new models for a lot of applications, but it is easy to make a costly mistake if buyers do not do their ‘homework’ before committing to a purchase,” says Brian Parkinson, General Manager for Schmitz Cargobull (UK) Ltd. Used Sales Division.

Brian Parkinson continues: “Apart from making a careful appraisal of the overall condition of the trailer’s chassis and the superstructure, any buyer of second hand equipment has to consider the add-on spend. By this I mean the extra investment that might be required to repaint and re-livery the trailer, especially Curtainsiders if the curtains need to be replaced because they are heavily marked with the previous owner’s logo. In short, before buying, think about what it is likely to cost to get the trailer back on the road in the condition that you want it to be in.”

With refrigerated trailers it is also essential that, in addition to checking the overall condition of the trailer itself, the buyer investigates the condition of the fridge’s motor. “Firstly, check how many hours the fridge engine has on the clock,” advises Brian Parkinson. “All fridge motors have a digital read out on the front of the unit. As a general rule I would suggest that any five year old reefer with over 12,000 hours on the fridge has been worked quite hard.

“Also make sure that the fridge has a current ATP certificate and if a used reefer has been fitted with a temperature recorder, check that the recorder itself has been regularly serviced. Ensure where possible that all the necessary fridge service history paperwork is available.

“The same goes for tail lifts. Ensure that tail lifts are in working order and have the current weight test certification.”

Brian Parkinson continues: “Check the tyres – anything with less than 5/6mm of tread should be avoided - and ideally the trailer should have a valid MOT. There should be some record of a service history. The ‘O’ licence requires trailers generally to be serviced every 8-10 weeks. So, if a used trailer has been off the road for a few months it is quite likely that it has not been serviced in this time and is due for its MOT. Problems with brake system components and suspension and tyres are among the more common causes of MOT failure for trailers.”

“In addition, it is worth remembering that trailers with specifications that match the requirements of mainland European markets, ie, 4 metre overall height curtainsiders - particularly with sliding roofs - and Reefers have the best re-marketing opportunities and therefore command higher third and fourth life values.”

Quality second hand trailers – particularly refrigerated vehicles – are so sought after at the moment that they are increasingly difficult to come by, as Brian Parkinson explains: “There are very few used Schmitz Cargobull reefers on the market. Generally our trailers hold their value and users find they can be resold easily. They are very marketable commodities.”

A side effect of the strong demand for used Schmitz Cargobull trailers, is that the company is able to set some of the most competitive Operating Lease rates for its new products, as Brian Parkinson explains: “Operating Leases involve setting a residual value (RV) for the trailer at the outset of the deal. The RV is the expected market value of a trailer at the end of the lease period and payments are calculated on the initial cost of the equipment and its residual value. For example if a new trailer costs X and its RV has been set at Y, the monthly installment is calculated on the difference between the two amounts. This means that trailers that can command the highest residual value should be available on a cheaper monthly rental.”

Schmitz Cargobull are now offering this Operating Lease product on their refurbished second hand trailers through the company’s Cargobull Finance facility.

Schmitz Cargobull offer a full advisory service to operators looking to upgrade their trailer fleet with either new or used trailers. All of the quality used and refurbished trailers can be viewed at the company’s Regional Business Centre’s in Warrington and Doncaster, and at Mundon in Essex.

Acumen launched new online freight system
Leading logistic provider, Acumen Distribution, has launched an innovative system that creates a competitive marketplace for backloads. Called AcuFreight, the online freight system benefits both customers and hauliers by creating a real-time exchange platform matching unallocated loads with empty vehicles travelling across the UK.

AcuFreight is designed to reduce costs for customers, help the environment by reducing empty vehicle running and create additional revenue for carriers by helping them utilise otherwise empty vehicles. It enables customers to place available loads on the system and for hauliers to bid for the work, either against a target price set by the customer or in an open auction.

The sophisticated web-exchange enables customers to upload information either manually or via an EDI interface and to view available vehicles with best match for loads. Customers can stipulate the type of vehicle required as well as specify collection and delivery times. Only registered and approved hauliers will be able to access the system and there are no joining or registration fees.

A winning formula for hauliers too, AcuFreight allows them to place vehicles on the system and quickly view available loads enabling routes to be planned efficiently. AcuFreight’s auto-billing system reduces costs whilst the supply of a POD also helps reduce administration time and expenditure.

Acumen has appointed an Account Manager to manage all aspects of quality assurance, payments and insurance. He will also provide a full customer support backup, deal with issues and organise emergency loads.

“This is a winning formula where everyone benefits”, says Chris Doughty, Managing Director of Acumen. “It reduces transport costs for companies, creates additional revenue for carriers by helping them utilise otherwise empty vehicles and the environment benefits as jobs can be completed using fewer vehicles”.

Witron modernizes Yamaha’s central spare parts center during productive use
Yamaha Motor Europe N.V., a manufacturer of motorcycles and motors located in Amsterdam (Netherlands), operates a central distribution center that supplies customers throughout Europe with trademark spare parts, accessories and advertising items.

The system began productive use in 1993 and consists of a 14-aisle tote warehouse and a 6-aisle pallet warehouse. Yamaha and Witron have planned to exchange all stacker cranes and conveyor system controls as part of a phased modernization concept.

In order to insure that availability and customer service levels can be maintained in the future,Yamaha has awarded Witron an order for re-developing two pallet cranes and three tote cranes. The drives, sensor technology, controls, and control cabinets for the cranes will be completely replaced by new and sustainable components. All mechanical elements of the stacker cranes will remain untouched.

The modernization will be carried out during the course of normal operations at the distribution center. This requires strict adherence to a time schedule, as Yamaha has specified that works can only be carried out during the “low season” which runs from October to January. The stacker cranes will be shut down during this period for modernization. Cranes will be turned back over to productive use one by one as modernization work is completed.

Linde joins thePremier Forest league
Linde Materials Handling has supplied a completely new fleet of nine diesel powered forklift trucks to Premier Forest Products, one of the UK's leading independent importers and distributors of timber and panel products.

The nine Linde four tonne plus diesel counterbalance trucks are used at Premier's sites at Alexandra Dock, Newport, South Wales to handle timber, fibreboard and panels. The products, which have been imported from China, Brazil and the rest of Europe by road, rail and sea, are supplied to merchants and manufacturers throughout the UK.

“We need robust, totally reliable and highly efficient forklift trucks for our operation,” says Gareth Howells, Operations Manager.”Linde Severnside put together a package that had forklift trucks of unrivalled quality, great productivity, low fuel consumption and environmentally low noise levels. They also offer fantastic local service level support.”

The Linde H40D trucks have front drive axle isolation, making them especially suitable for driving over the varied surfaces across the 200,000 sq ft used by Premier in Newport. Independent tests have repeatedly shown that they are more fuel efficient than any similar truck on the market, giving both cost and environmental advantages.

Also, the Linde hydrostatic drive transmission has no clutch, brakes or gears and, consequently, none of the wear associated with these components. Operating costs – and downtime - are therefore minimised.

Worldwide Flight Services evaluates FreightScan’s dimensioning system
FreightScan, LLC, a leader in the development and deployment of solutions for the freight and logistics industry, has begun an evaluation with Worldwide Flight Services (WFS) for the automated FS100 cargo scanning system.

The evaluation calls for the installation of one FS100 automated dimensioning system at the Dallas Fort Worth airport cargo facility of World Flight Services, which handles cargo for airlines including KLM/Air France Cargo, Air Canada, US Airways, and China Cargo. Based upon the results of the evaluation, WFS is considering a permanent installation of FS100 systems at Dallas Fort Worth, as well as various locations within its global network. WFS will be using the FS100 system to identify accurate dim weight of the shipments it handles, as well as making the visual record the FS100 produces available to the air carriers it handles.

FREIGHT RATES

(Prices listed below are only Indicative Ocean freight rates for a Container and negotiable with respective Shipping/Liner Agents).

TRUCK FREIGHT RATES

Between Metros and Major Cities Note: (Rupees per tonne for nine tonnes)