Air Cargo Logistics In India

2y ago
32 Views
2 Downloads
2.41 MB
119 Pages
Last View : 2m ago
Last Download : 2m ago
Upload by : Nixon Dill
Transcription

Air Cargo Logistics in IndiaWorking Group Report7th May, 2012Ministry of Civil Aviation,Government of India1 Page

Air Cargo Logistics in India1 Table of ContentsList of Graphs . 5List of tables . 6Foreword . 72345Introduction . 92.1Overview . 92.2Air Cargo Logistics Operations . 102.3Stakeholders . 11Role of Air Cargo in Indian Economy . 143.1India’s Economic Performance . 143.2Integration with global economy. 153.3Structure of International Trade (Merchandise) . 173.4Trends in Inbound / Outbound Air Cargo Traffic . 183.5Performance of Air Cargo throughput in Indian Airports . 213.6Dedicated Domestic freight operations . 233.7Forecast of the air freight traffic . 233.8Cargo Forecast: a Comparative Analysis . 253.9Drivers of Air Cargo Traffic in India . 26Key performance Indicators of Air Cargo Logistics operations in India . 284.1Overview . 284.2Dwell Time- a key Performance indicator . 294.3Throughput efficiency at cargo terminals . 324.4Menace of Missing/Non-traceable Cargo . 36Key Challenges - Infrastructure Bottlenecks . 385.1Inadequate and overloaded infrastructure facility . 385.2Gaps in Key facility infrastructure at Cargo terminals in Gateway airports . 395.3Bottlenecks in truck docking . 41Page 2 of 119

Air Cargo Logistics in India6785.4Inadequate X-ray screening facilities and lack of associated trained manpower . 435.5Absence of off-site facility such as Air Freight Station (AFS) for cargo processing . 435.6Special Cargo Infrastructure . 475.7Cold chain facilities . 475.8Lack of DG qualified staff leading to high turnaround time. 495.9Security arrangements for the air cargo complex . 505.10Express Companies- Infrastructure related issues. . 515.11Air side infrastructure for Cargo operations . 52Key Challenges –Regulatory Hurdles and Other Processes / Procedures / Systems . 546.1Overview . 546.2Procedural hurdles in Operationalization of Air Freight Station (AFS) . 556.3Requirement of 100% export shipment examination leads to delay . 566.4Duplication of documentation . 576.5Simplify customs processes and documentation through full adoption of EDI . 576.6Provision for amendments in EDI system. 596.7Transshipment a cumbersome process . 596.8Simplified process for managing overages and shortages . 626.9Practice of tendering Cargo during peak hours – strain on infrastructure and resources 636.10Lack of close supervision during cargo offloading at truck dock . 656.11Packaging is another area that requires improvement . 666.12Multiple handling of the packages by various agencies working at the airport . 686.13Restricted working hours leads to delay in cargo clearance. 68Key Challenges-Automation/IT Adoption . 707.1Overview . 707.2Warehouse Management System (WMS) . 707.3Flow of information is not seamless. 72Recommendations of the Working Group . 748.1Initiatives needed from Ministries/Departments of Government of India . 748.1.1Integrated framework of Air Cargo Logistics Policy . 748.1.2Industry/Infrastructure Status to Air Cargo logistics Sector . 758.1.3Air Cargo Logistics Promotion Board. 78Page 3 of 119

Air Cargo Logistics in India8.1.4Augmentation of Off Airport Cargo logistic facilities . 808.1.5Service Levels for Key Performance Indicators . 848.1.6Models for Facility Development at Airports . 868.1.7Promote key gateway airports as Cargo Transshipment Hubs . 878.1.8Promote dedicated Freighter operations . 908.1.924X7 Operations in Air Cargo complex . 918.1.10Promote Air Cargo educational and training program for capacity building . 948.2Initiatives needed from Air port operators and Custodians . 958.2.18.3Air Cargo Infrastructure Development at Airports . 95Initiatives needed from Central Board of Excise and Customs . 1018.3.1Customs Cost Recovery Issue . 1018.3.2Reduce delay in processing of Export Cargo out of cargo terminals- . 1038.3.3Introduction of post audit for exports . 1038.3.4Introduce digital signature to reduce paper work. 1048.3.5Decongestion of warehouse . 1048.3.6Facilitate Transshipment . 1058.4Initiatives needed from Bureau of Civil Aviation Security . 1068.5Initiatives needed from Airports Economic Regulatory Authority of India . 1098.5.1Non-discriminatory treatment to all users . 1098.5.2Need for Consistent policy on allotment of facilities . 1098.5.3Monitoring and enforcement of service levels . 1108.6Initiatives needed from Carriers, Air freight operators/CHAs and others. 1118.6.1Active co-operation from Carriers for promoting Off-Air port Facilities . 1118.6.2Uplift Capacity and Handling Capability . 1128.6.3Investment in Human Resources . 1128.6.5Integrated working Hours . 1148.6.6Timely filing of documents . 114Annex: ICopy of order constituting Working Group .115Annex: IIList of members of Working Group, Other Experts & Special invitees 117Page 4 of 119

Air Cargo Logistics in IndiaList of GraphsGraph 1: Trends in GDP growthGraph 2: Trends in GDP & Air cargo growth ratesGraph 3: India’s International Air trade to GDP ratioGraph 4: Share of Exports & Imports in India’s total tradeGraph 5: Share of Exports & Imports in India’s total trade (Excluding Oil trade)Graph 6: Air Cargo Business high in value and low in volumeGraph 7: Trends in growth of Air freight Traffic throughput at Indian AirportsGraph 8: Freight throughput across 6 metro Airports of India (2010-11)Graph 9: Forecast of Air freight Traffic throughput at Indian airportsGraph 10: Cargo forecast for the 20 years period 2010-11 to 2030-31Page 5 of 119

Air Cargo Logistics in IndiaList of tablesTable 1: India’s merchandise Trade-GDP ratio in the period 1990-91 to 2010-11Table 2: Size of India’s foreign merchandise tradeTable 3: India’s inbound & outbound Air cargo traffic (in 000’ metric tonnes)Table 4: International trade by sea and Air cargo- Volume and value growth comparisonTable 5: Proportion of domestic cargo carried as belly cargo & in freighter aircraftTable 6: Global Benchmark of Dwell time vis-à-vis Indian airportsTable 7: Global comparison of Total throughput and transshipmentTable 8: Efficiency norms for Air Cargo terminal warehouseTable 9: Air cargo throughput efficiency in terminal of major gateway airports of IndiaTable 10: Comparison of air cargo infrastructure operations in India with global best practicesTable 11: Comparison of Truck docking bays in major gateway airports of India with few overseasairportsTable 12: Comparison of air cargo security infrastructure in India with global benchmarkTable 13: Dedicated parking bays for freighter aircraft in Indian airports with Global comparisonTable 14: Deployment of officers / distance of their offices from terminal of international airportsTable 15: Operating hours of cargo terminals at international airportsTable 16: Comparison of air cargo automation in India with global best practicesTable 17: International benchmark for cargo warehousePage 6 of 119

Air Cargo Logistics in IndiaForewordAir Cargo Logistics play a vital role in the economic development of anation. Airlines, Air Cargo terminal operators, Ground Handling serviceproviders, Integrated Express Service Providers, Forwarders, DomesticCargo Transport service providers and Custom House Agents are the keyplayers in the entire Air Cargo supply chain. Thus the Air Cargo industrypresents a wide variety of service providers coming together to movegoods both domestically and internationally with a single minded purposeof faster and efficient delivery. These business entities in Air Cargo logistics industry in turninteract with a number of cross-border regulatory agencies the principal among them is theCustoms establishment. Speedier services in the Air Cargo supply chain facilitate large numberof business entities to become more competitive. Globally, more than one – third of the valueof goods traded internationally is transported by air and therefore Air Cargo industry isconsidered as a barometer of Global Economic Health. From the point of view of Airlineindustry, Air Cargo Services contribute near about 20% of their revenue. India’s internationalAir Trade to GDP ratio has doubled from 4% to 8% in the last twenty years.Keeping in view the significance of Air Cargo to the economic growth of the country, it wasdecided to set up a Working Group on Air Cargo / Express Service Industry in the Ministry ofCivil Aviation to recommend policy initiatives to address important issues considering the longterm perspective and future growth potential in India. The Working Group was chaired byEconomic Adviser, Ministry of Civil Aviation and represented by members from all the keystakeholders of the Air Cargo Logistics industry in India. I have had the pleasure of chairing twosessions of the Working Group meetings myself. The Working Group in fact brought together allthe key stakeholders of the industry in one platform to discuss and deliberate the challenges ofgrowth opportunities in the context of faster pace of economic growth in India and to identifyareas that require further improvement.Forecast of Air Cargo volume for India made in the report suggests that the domestic andinternational Air Cargo throughput is expected to grow by eight to ten times the present level inthe next twenty years. Catering to the growth of this magnitude would involve expansion ofinfrastructure facilities, simplification of procedures and adoption of Information Technology /Automation besides development of Human Resources in the sector.Having gone through seven meetings since its formation and a number of other meetings bythe sub groups under the Working Group and field visits to Air Cargo terminals, the WorkingGroup has now come out with a comprehensive report. I am aware that two drafts of thereport were circulated earlier to all the members to seek their suggestions / comments. ThesePage 7 of 119

Air Cargo Logistics in IndiaPage 8 of 119

Air Cargo Logistics in India2Introduction2.12.1.1OverviewThe strong relationship between growth in international trade and logistics infrastructure iswidely acknowledged. Growth in trade induced requirement for supporting infrastructure whileavailability of infrastructure at competitive rates promotes trade and improve globalcompetitiveness of the country. Availability of infrastructure is also a key determinant of foreigndirect investment (FDI) inflows. In developing countries like India an efficient logisticsinfrastructure can reduce cost of transportation which in turn can contribute directly to globalcompetitiveness of the country. Efficient logistics industry acts as an economic catalyst byopening up new market opportunities, moving products and services with speed and efficiency.2.1.2The demand for air cargo transportation has increased significantly over the last few years,because product life cycles have shortened and demand for rapid delivery has increased.Changing business models such as Just- in-Time Manufacturing and Global out sourcing modelshave contributed to the rapid growth of air cargo logistics business. In such a changing businessenvironment, where speed-to- market is a competitive imperative, movement of inventory is nolonger viewed as a compartmentalized process. Rather, the sourcing of inputs, parts andcomponents and the delivery of final product are all viewed as a continuous value-adding chain.Efficient supply chain management therefore offers significant benefits including lowerinventory and intermediary costs; and simplicity in order placement, delivery and managementof suppliers and customers. These benefits directly contribute to making businesses morecompetitive.2.1.3Evidence from the 2007 and 2010 Logistics Performance Index (LPI) indicates that, for countriesat the same level of per capita income, those with the best logistics performance experience anadditional growth of 1% in Gross Domestic Product and 2% in trade. These findings areespecially relevant today, as developing countries need to invest in better trade logistics toemerge in a stronger and more competitive position. India’s LPI rank in 2010 was 47 down from39 in LPI 2007. In comparison to India, China’s 2010 LPI rank was 27 and Brazil was ranked at 411.1This should be a matter of grave concern to India.Logistics Performance Index and Its Indicators 2010 World Bank ReportPage 9 of 119

Air Cargo Logistics in India2.1.4Air cargo represents about 10% of the airline industry’s revenues. As 35% of the value of goodstraded internationally is transported by air, air cargo is a barometer of global economichealth2.The fortunes of the transport and logistics industry are closely connected to theeconomic cycle. When economic activity is buoyant, demand for transport and logistics servicesis equally strong. Consumer and business demand for goods and services inevitably translatesinto higher demand for transport and logistics services3.2.1.5Indian Economy is on the higher trajectory of growth. Forecasts suggest t

Graph 7: Trends in growth of Air freight Traffic throughput at Indian Airports Graph 8: Freight throughput across 6 metro Airports of India (2010-11) Graph 9: Forecast of Air freight Traffic throughput at Indian airports Graph 10: Cargo forecast for the 20 years period 2010-11 to 2030-31

Related Documents:

reliable, yet easy-to-implement airline cargo solutions. MARGO enables airlines to better monitor cargo sales performance, smoothen handling processes and access real-time cargo revenue information. MARGO comprises cargo management applications as well as a proven cargo revenue accounting software. Highly modular and scalable Margo suite

LOCAL CARGO TARIFF Amd Date 20 JAN 2020 Amd No 3 ADMIN PAGE 1 Local Cargo Tariff Local Cargo Tariff containing Rules, Rates and charges applicable To the transportation of Cargo between The points in Canada named Herein Calm Air International LP, As represented by its general partner, Calm Air GP Inc. c/

Council For Scientific And Industrial Research - CSIR, India Government of India, India Indian Council of Medical Research, India Indian Department of Atomic Energy, India Ministry of Electronics and Information Technology of India, India Ministry of Health and Family Welfare of India, India Ministry of Science and Technology of India, India

IATA Guidance for Managing Pilot Training & Licensing during COVID Cargo ICAO Guidelines Carriage of cargo in the passenger cabin Guidance for Operators of Dangerous Goods during COVID-19 Air Cargo comprehensive FAQ on cargo operations Airline Air Cargo Operations Status : this section covers over 370

any Air Waybill, the provisions of this tariff shall prevail. e) The airport to airport rates for Cargo carriage set out in this tariff shall be applicable only to the Canadian originating Cargo. The rates for other than Canadian originating Cargo carriage will be th

Many industries stand to be affected by air cargo congestion. Airports in Washington state handled 47.6 billion in freight in 2015, and looking to the future air cargo value is anticipated to surge to 174 billion by 2045. Air cargo is used by high-value

Air Cargo Committee members. We believe the Air Cargo Guide is an ideal instrument to expand the knowledge base of interested air cargo professionals at airports and throughout the industry. With this resource, we believe airports can benefit, and in so doing enhance local and regional

The exponential growth of air cargo started in 1997, with the Air Cargo Deregulation Act (US Congress, 1980). . carried an estimated total of 11.9 billion tons compared to 60.9 million tons for the air cargo industry. By weight, more than 86 percent of world maritime trade is in raw materials and other . (Form 41 Traffic)- All Carriers.