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Volume 1 Issue 7 | Quarterly News January 2017 | www.amtoi.org

AMTOI

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ASSOCIATION OFMULTIMODAL TRANSPORTOPERATORS OF INDIA

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Volume 1

Issue 6

Quarterly News

September 2016

6th EDITION

Geared for Growth

Contents

Girl Power

Multi-Modal Transport In GCC

Gujarat Calling

Fare Well, Not Goodbye!

Editorial

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08

10

12

14

16

17

18

From the President's Desk

Interview : Jyotheesh Kumar, CEO & co-founder, ValueShipr

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Editor Shantanu Bhadkamkar / Xerxes P Master

Special CreditXerxes P Master

Publisher Sailesh Bhatia

Registered OfficeC/o. CKB, 1st Floor, 20 Rajabhadur Mansion,Ambalal Doshi Marg, Fort, Mumbai - 400 023T: +91 22 6637 0021 Telefax: +91 22 6637 0022E: [email protected]: www.amtoi.org

Computer Artworks Sanjay Punjabi

Printed and Published by B N Prints on behalf of AMTOI (Association of Multimodal Transport Operations of India)

All rights reserved in all countriesNo part of this publication may be reproduced, stored in a retrieval system or transmitted by any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior written permission of publishers. No liabilities can be accepted for inaccuracies of any content (Description), also opinions reflected in the publication are those of the writers. The publisher does not take responsibility for returning of unsolicited publication material or material list or damaged in transit or photographs. Views expressed in this (newsletter) do not necessarily represent those of the publisher. All correspondence should be addressed to AMTOI. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Mumbai city only.

A Central Booking Platform

Extended Board Meeting 22

Preview: AMTOI Day 2017 20

How To Communicate Over Email 23

AMTOI NEWS : Volume 7 | Issue 14

Mr. Ravindra J. Gandhi, Managing Committee Member

Mr. Vivek Kele, President

Mr. S. Varadarajan, Managing Committee Member

Mr. Sailesh Bhatia, Immediate Past President

Mr. R K Rubin, Vice President

Mr. Xerxes Master, Hon. Secretary

Mr. Shashi Tanna, Advisor

Mr. Nailesh Gandhi, Hon. Treasurer

Mr. Shantanu Bhadkamkar, Managing Committee Member

Mr. Tushar Jani, Advisor

Managing Committee Members 2016-2017

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Mr. Anand Arvind Sheth, Advisor

Mr. George Abrao, Special Invitee, Managing Committee Member

Mr. Pramod Kumar Srivastava, Convenor, Eastern Regional Chapter

Mr. Uday Bhaskar Reddy, Convenor, Southern Regional Chapter

Mr. Yogesh Parekh, Special Invitee, Managing Committee Member

Extended Board Members 2016-2017• The Air Cargo Agents Association of India

• The Container Shipping Lines Association

• Indian National Shipowners' Association

• Federation of Freight Forwarders' Association

• Federation of Ship Agents Association of India

• Coastal Container Transporters Association

• Consolidators Association of India

• CFS Association of India

• Indian Private Port & Terminals Association

• Association of Container Train Operators

• Women's International Shipping & Trading Association

• All India Motor Transport Congress

Mr. T Venkataraman, Convenor, Western Regional Chapter


Dear Members,

Seasons Greetings and a Happy New Year 2017!

The year 2016 has been eventful. We have seen that many initiatives taken by the government under its ease of doing business initiative have helped to make the road smooth, en route to economic growth. Today, India is the fastest growing economy in the world. According to IMF, India is likely to retain this status till 2020. The world body has projected India’s GDP growth in the year 2016-2017 at 7.5 per cent against the global growth at 3.6 per cent, which is remarkable.

Ministry of Shipping has envisaged a substantial growth in the maritime and logistics sector for which the government has earmarked a healthy budget. Mr. Nitin Gadkari, Honourable Minister of Shipping, in his address at FICCI AGM, described multimodal transport as a game changer. This is an indication of the forward march of multimodal transport in India.

A number of trends are currently reshaping the international maritime transport and trade. By altering costs, prices, logistics structures, supply chains and comparative advantages, these trends are also defining the trade competitiveness for countries and their levels of integration into the global transport and trading networks. These trends are making it necessary for the maritime sector to increase ship sizes and reduce the numbers of carriers that could, in turn, translate into lower freight and squeeze out smaller players. This could also lead to an oligopoly market. The fitting example of this situation is the shutting down of Hanjin Shipping and the merger of Hamburg Sud with Maersk Shipping Lines.

AMTOI is keeping its members abreast of the important changes happening in the maritime and logistics sector through its weekly AMTOI newsletters, AMTOI News and circulars.

I am pleased to inform you that AMTOI has spread its skill training programme to the shores of Gujarat and very soon, it will be taken to other parts of the country as well. The training programme held in Gandhidham in November 2016, in partnership with Kandla and Mundra

Shipping Agents Associations' was a roaring success which saw a record attendance of 40 participants and a demand for many more similar programmes.

AMTOI will continue to spread the knowledge bases it can harness, to the maritime fraternity with continued training initiatives. In fact, AMTOI has embarked upon an innovative training initiative which helps facilitate the delivery of training programmes at the office premises of its members. Maersk Training Institute will depute their trainers to these offices for training staff on selected subjects. Members are requested to take advantage of this facility and contact the secretariat for further details. I am pleased to share with you that the Confederation of Indian Logistics Association, (CILA) a joint venture of all trade associations is moving forward in the right direction. Discussions with the Ministries

From the President’s desk

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of Finance and Shipping are in progress to finally recognise it and once CILA is launched, all the ambitious projects of AMTOI, viz. cargo community system, skill development initiative and digitisation will see a great growth with respect to their adoption in the maritime and logistics sectors.

Mr. Deepak Shetty, former Director General, Shipping, retired on November 28, 2016, after an illustrious career spanning 36 years. AMTOI organised a farewell in his honour which was attended by former senior functionaries of the shipping ministry, Additional DG, Shipping, and the who’s who of the shipping industry, besides advisers and managing committee members. AMTOI will always remember the contributions of Mr. Shetty for his trade-friendly initiatives and the positive changes he brought to the maritime sector.

AMTOI Founders Day on December 3, was actually celebrated on December 7, 2016, during the managing committee (MC) meeting. The MC members thanked their predecessors for laying the foundation for AMTOI and their valuable contribution for the growth of its associates.

The construction of the new office of AMTOI in the Kanakia Zillion building complex, located at Bandra Kurla

Extension, at Kurla, is now complete and the occupation letter has been received from the municipal authorities. Your association is in the process of taking possession of the office. I thank the members for their generosity in contributing for the purchase of the office and creating an asset for AMTOI.

To usher in the year 2017, AMTOI will be organising the annual AMTOI Day on February 3, 2017. It is said that a good beginning to the year makes a good ending. Members may block their calendar and look forward to further programme details, which shall be circulated separately.

Last but not least, I appeal to all the members to contribute and come forth with suggestions for the continued development of AMTOI and remain an ever-growing part of its successful journey.

Best regards

Vivek KelePresidentAMTOI


EDITORIAL

The most talked about issue in media today is demonetisation. Since all the major stakeholders in international multimodal transportation of goods belong to the organised sector, cash transactions for business are almost non-existent. Hence, this sector was largely unaffected. The only segment in this chain that was affected was domestic trucking, as they need to outlay huge cash for legitimate tour expenses, something which constitutes a big portion of their financial transactions.

On the other hand, the multimodal transport sector was seriously affected by an international event, which neither the people in general nor the national media took any cognizance, i.e., Hanjin Shipping’s filing for bankruptcy protection on August 31, 2016, after months of trying to raise liquidity and restructure its debt. The bankruptcy of Hanjin Shipping not only put the merchants, ports, shipping lines and other stakeholders in international trade into confusion or in jitters, depending on their exposure, but in addition, financial institutions which were already vary of the shipping industry are now even more reluctant to finance the sector.

Multimodal transport, by improving trading efficiency, transforms the relationship between trading partners and international carriers from the traditional buyer-seller roles to a new partnership in trade and transport.

Our company name has been changed from A.T.C. (Clearing & Shipping) Pvt. Ltd., to ATC Global Logistics Pvt. Ltd recently. Our company name, like many others, carried the word ‘Shipping’, since, earlier, the business was known as ‘Clearing & Shipping Agent’. One

of the foreign banks rejected my application for a credit card twice, as our company name conveyed ‘shipping’ activity and it was in their guidelines not to issue credit cards to the shipping industry. This is an unfortunate situation considering the huge contributions the shipping sector has made for the global trade. The shipping industry has not only enabled trade across the countries and continents but has connected people for centuries. Without a healthy shipping industry, international trade, and therefore, the world economy will suffer shrinkage and uncertainty.

Over a couple of decades, the shipping lines have added significant capacity, particularly in container shipping, i.e., in cellular vessels, as container movements have grown exponentially over the

“By improving trading efficiency, multimodal transport transforms the relationship between trading partners and international carriers from the traditional buyer-seller roles, to a new partnership in trade

and transport.”

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years. Nonetheless, the gap between the capacity and cargo movement has widened adversely since the 2008 slowdown. Shipping lines reacted to the over capacity by heavily reducing freight rates to levels that were even below customers’ expectations. As international logistics service providers, many of us were very unhappy about the situation as a healthy shipping industry is critical for our own economic well-being and even more for the global trade. We felt the shipping lines should have dealt with the overcapacity with greater creativity and innovation.

They should have demonstrated visionary entrepreneurship and targeted service upgrades and value addition to levels where a reduction in the rate, beyond a particular level, should have become largely irrelevant. The international courier service is a case in point. Besides, historically, the shipping industry has often dealt with volatility as an integral part of the business model, in as much some shipping owners with a great legacy have a time horizon of as long as 25 years. The ships have a long life and realise high value when they are sold or when they are scrapped. Generally, the proceeds generated by sale of assets have compensated for the book losses.

Mr. Deepak Shetty, IRS, ‘An Officer and a Gentleman’ retired after illustrious service to the nation. As a person, he was humble and polite. His contributions to the Indian shipping industry as the Joint Director of Shipping and thereafter as the Director General of Shipping have been extraordinary. His contributions are many, some of the noteworthy ones being the role he played in rescuing Indian seamen from pirates, his aggressive role at the IMO and UN for altering the boundaries of a so-called High Risk Area (HRA) for piracy from 78 degrees East longitude to 65 degrees East longitude, which resulted in the Indian shipping industry saving millions of dollars in insurance costs. It is heartening to note that post retirement, Mr. Shetty will continue to serve the trade as he is expected to work for a UN organisation that is involved in efforts to

eliminate money-laundering. The expertise he has gained from a background in Customs and DRI will enable him to outstandingly contribute to this cause.

The Indian Government continues to make heavy investments in shipping-related infrastructure, including for hinterland connectivity. With the government’s impetus through the Make in India initiative, India will continue to be a country where the growth rate of the economy will be among the highest in the world. This is where the multimodal transport operators lay their hope and expectations of a prosperous future.

The managing committee of AMTOI celebrated AMTOI Foundation Day (December 2) and re-dedicated itself to the cause of growth of multimodalism for ensuring efficiency, reliability and cost competitiveness in international transportation of goods on a door-to-door basis. The AMTOI Day 2017 celebrations are scheduled to be held on Friday, February 3, 2017.

We are pleased to release this issue in the hands of the readers and wish you all happy reading. As always, we will be pleased to accept your contributions in the form of articles and comments.

I take this opportunity to wish you all a very Happy and Prosperous New Year 2017.

Warm regardsShantanu Bhadkamkar

Multimodal transport ensures the most efficient combination of multiple transport modes. The advantages include optimal lead times, optimal freight costs, optimal use of transport infrastructure, decongestion of transport routes and reduction in the transportation carbon footprint. Resultant benefits also include an opportunity to reduce the inventory carrying costs, sustainable level of freight costs and increased environmental sustainability of global supply chains.


India Natie is a venture between Association of Multimodal Transport Operators of India (AMTOI), Vereniging Voor Expeditie, Logistiek EN Goederenbelangen Van Antwerpen (VEA) with one of the world’s largest port, the Port of Antwerp. India Natie aims to bridge the trade gap between India and Europe by providing world class trading facilities through a collaborative partnership with the Port of Antwerp.

This collaboration will benefit the international traders asthey will be able to access the world’s most technologicallyadvanced port which is in the heart of Europe, by becoming a privileged member of Indian Natie.

India has displaced Japan to become the world’s third biggest economy in terms of purchasing power parity (PPP), according to a World Bank report. The 2011 round of the world body's International Comparison Program (ICP) ranked India after the US and China. The last survey in 2005 had placed the country at tenth place.

PPP is used to compare economies and incomes of people by adjusting for differences in prices in different countries to make a meaningful comparison. India’s share in world GDP in terms of PPP was 6.4 per cent in 2011 compared

with China’s 14.9 per cent and the US’ 17.1 per cent, the latest ICP showed. The survey covered 199 economies.

Despite high inflation in India in recent years, prices in thecountry are still well below those in advanced economies,explaining the higher ranking for India on the PPP measure. But according to the International Monetary Fund (IMF), India’s economy is the 12th largest and only about a third of Japan’s in terms of absolute unadjusted dollars. The economies with the lowest prices are either in Africa or Asia and the Pacific and include India, which has the third largest economy.

Indian Economy• One of the fastest growing economies in the world

(growing at 7 per cent since 1997); expected to grow at 6 per cent + in next 5 years.

• GDP of $1841 bn, Indian economy grew at a real growth rate of 6.4 per cent in 2013.

• One of the youngest workforce in the world with average age of 26.5 years.

International Trade• In FY2013, India carried out international trade worth

$780 bn with exports crossing $300 bn.

Geared for Growth

FEATURE

The potential for growth and partnership in maritime logistics appears unlimited.

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Good sea access, a dense network of hinterland connections and its geographical location are just the start of its advantages. Antwerp is also distinguished for its integrated range of logistics services, supported by single window ICT, comprehensive expertise in freight handling and value-added services, and the can-do attitude that pervades the entire port community.

VEAThe Association for Forwarding Agents in Antwerp is an organisation formed by professionals for the protection of the interests of the shipping sector. The association aims at protecting the maritime and port interests in relation to the professional interests of the members. It also provides information of general interest to its members.

Under forwarding and transportation business it includes the receiving, weighing, monitoring, sampling, transporting, storing, and clearing all goods. This helps manage the overall logistics of the flow of goods, preparation of documents, booking cargo, fulfilling formalities for customs and consular services as well as other authorities and institutions connected with the forwarding sector.

• India’s merchandise trade has been growing at a very impressive 21 per cent over the last 5 years.

Logistics in India• The market size of the Indian logistics sector is estimated

to be $125 bn, growing at a CAGR of about 15 per cent.• With the second largest network in the world, roads

carry about 62 per cent freight transport in India. - Preferred for cost effectiveness and flexibility.

• India has the largest rail network in Asia and fourth largest in the world (covering 64,015 Km). - Preferred for container traffic.

• An unorganised sector continues to account for majority of the Indian logistics market (more than 80 per cent).

• There is also an increasing thrust toward containerization and technology upgrades.

Port of AntwerpTo stand out from the competition on the world market, companies must be able to call upon a sustainable, flexible, efficient and innovative supply chain in which all links play an effective role. The port of Antwerp is a crucial link in this chain.


The Antwerp Freight Forwarders Association, De Scheepvaart and Waterwegen & Zeekanaal ( i n l a n d w a t e r w a y infrastructure managers) and the Antwerp Port Authority, jointly opened the CBP in the first half of 2016. This neutral platform enables logistics p l a y e r s i n B e l g i u m to send consolidated c o n s i g n m e n t s o f containers by barge and /or rail. This way, shippers can respond

to growing demand for freight flows to be carried in an environment-friendly way.

The CBP was set up under the conviction that logistics service providers (LSP) are not aware of the possibilities offered by barge and rail as sustainable transport modes and so do not make enough use of them.

Collaboration and ConsolidationThe impetus for setting up the CBP came from three main considerations, namely :

• 40 per cent of containers travel back and forth empty between Belgian ports and Inland terminals throughout Europe;

• LSP’s still make too little use of the possibilities of rail and barge transport; and

• Bundling volumes will avoid unused, idle capacity and help start new initiatives, creating new hinterland connections.

Collaboration between operators and consolidating volumes is increasingly seen as the best solution for better utilisation of limited capacity and infrastructure. This is particularly true for Antwerp, a port with many forwarders sending large volumes of containers to and from the European hinterland.

No MODAL Shift Without MENTAL ShiftThe CBP serve as a neutral transport organiser, offering

A Central Booking Platform

the most suitable intermodal solution by using existing connections, capacities and service providers. The fact of being strictly neutral distinguishes it from other similar initiatives. CBP also offers various other advantages:

• A unique project within the European port range.• A fast, simple and competitive way to book

containers by rail and barge.• Contributes to better recognition for the Flemish

/ Belgian Ports.• Stimulates intermodal transport on an ongoing

basis.• Advantages of scale.• Enhances close collaboration with barge and rail

operators.• Building up of intermodal expertise.• Actively looking for opportunities to consolidate

containers’ consignments.

CBP offers a platform for all players in container transport to find the most appropriate solution for a consignment in terms of cost, lead time and sustainability. It is up to the user to make the final choice among the options offered. It may be inland waterway, rail, road, or a combination of different modes, always focusing on the MENTAL shift in order to achieve the MODAL shift!

Indeed, still today, too many players have the automatic reflex to carry their containers by road in spite of increased attention on more sustainable logistical solutions.

CBP runs on a services platform developed and operated by Logit One, a provider of SaaS-services that supports a digitized logistics process. This platform enables CBP to manage hinterland processes in the following manner:

• Configuring the hinterland network with its terminals, transportation services, schedules, pricing rules, contracts and volume discounts.

• Handling quotation processes by automatically finding the best intermodal route.

• Processing transport bookings, allowing for fine-tuning of the planning process by adjusting the plans to specific requirements.

• After a web-based customer approval process, the selected plan alternatives are executed and the chosen transportation services are booked.

FOCUS

SEMINAR

An intermodal, multimodal as well as synchromodal solution, the central booking platform (CBP) enables logistics providers to organise freight flows sustainably at Antwerp port.

Mr. Marc Huybrechts

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• Once the plans are in execution, a visibility tool ensures transparency. It processes multiple (often fragmented and inconsistent) data sources through an elaborate set of business rules, detecting transshipments and routing changes. Its focus is on detecting anomalies in the logistics process as early as possible, thereby providing support and a warning to take mitigating actions before it is too late.

• The tech platform enables CBP to re-plan, split and merge containers with deviations.

• Finally, it provides for budget control and invoicing, automatically linked to the sales and

purchase prices of the ongoing plans, including last-minute changes.

This IT platform is fully web-based and also supports EDI connections towards CBP’s customers and suppliers. Moreover, it can be extended to incorporate global routing and ocean operations.

For further information concerning CBP, please contact your local Antwerp agent/representative.

This article is authored by Marc Huybrechts, an independent freight-forwarding and logistics consultant and President of the Belgian Freight Forwarding Association (CEB).


Fare Well, Not Goodbye!Mr Deepak Shetty, former DG, Shipping, called time on his career as a bureaucrat as AMTOI felicitated him at The Royal Bombay Yacht Club in Mumbai.

The Association of Multimodal Modal Transport Operators of India (AMTOI) organised a unique farewell function for the DG Shipping – Mr. Deepak Shetty, IRS, on November 28, 2016 at The Royal Bombay Yacht Club – Mumbai.

Mr. Shetty, of the Indian Revenue Service, retired on November 30, 2016 from the office of Director General of Shipping, having spent more than three decades in civil service.

Mr. Xerxes Master, Hon. Secretary – AMTOI, introduced Mr. Shetty along with Mr. Amitabh Kumar, IRS, Jt. DG Shipping, to the august gathering.

In his welcome address, Mr. Vivek Kele, President, AMTOI, thanked everyone for their gracious presence and kept them on tenterhooks with respect to the surprise element that AMTOI had especially planned for this special event.Next to address the audience, Mr. Amitabh Kumar said he was indeed fortunate to have worked under Mr Shetty. Describing him as a gem of a person, a great speaker

and a communicator and someone who knew how to prioritise things according to the needs of the industry, Mr Kumar also lauded Mr. Shetty for his astute leadership and the role that he played as DG Shipping in taking the Indian maritime sector to heights never seen earlier.

Ms. Medha Lotlikar, a long cherished friend of Mr. Shetty's from college, was especially called in by AMTOI to provide the surprise element. Ms. Lotlikar and Mr. Shetty were together in the same college and part of the same debating club between 1975-78. She recalled old memories and recounted stories that surprised Mr Shetty as well!

Then, Mr. Anil Devli, CEO, Indian National Shipowners’ Association, interviewed Mr. Shetty. In the brief interview, Mr. Shetty was forthright and candid as he said he joined the Indian Revenue Service (IRS) since he fell short of 68 odd marks required for the Indian Administration Service (IAS), and he wasn't keen on the Indian Police Services (IPS), which is the second choice after IAS. When asked about his work on anti-money laundering (AML) and

EVENT REPORT

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counter terrorist financing (CTF), he said this was one of this favourite subjects and he would like to pursue it, post his retirement. He recalled the opportunities he had whereby he received training in Kuala Lumpur and Singapore in December 2003 and November 2004 respectively on the above issues. He also got an opportunity to receive training on concerns and strategies by the Asia-Pacific Group on Money Laundering (APG), Sydney, Australia, which is a regional body under the global Financial Action Task Force (affiliated to the Organization for Economic Cooperation and Development: OECD), Paris, France. These are approved, recognized and supported by the International Monetary Fund and World Bank, Washington, USA.

He had then, on being chosen (he was the first officer of the IRS to have been selected for such an international position), done an official assignment for these organisations as a part of an international team of experts (he was the law enforcement expert) that had evaluated Nepal as a jurisdiction from the perspectives of the financial sector, legal and law enforcement areas, for a fortnight, in February, 2005.

Mr. Shetty also said that he is a regular invitee at IIT, Bombay, since the last few years to speak on the theme of “Technology in Crime and Crime Prevention” delivered to Indian Police Service Officers drawn from across the country by IIT (B) in association with the Ministry of External Affairs.

He informed the audience as to how, since 2011, India has been consistently raising the issue of the restoration of the high risk area (HRA) geographical coordinate from its existing position of East of 78 degrees longitude to East of 65 degrees longitude at several global fora, such as the International Maritime Organisation and the Contact Group on Piracy off the Coast of Somalia (CGPCS). Efforts were intensified since June 2014. The Indian delegation took up this issue very strongly in the IMO Council meeting in July 2015 and later in the CGPCS. Such intense efforts resulted in international bodies (International Chamber of Shipping and others) agreeing to push back the HRA from 78 degrees East longitude to 65 degrees East longitude,

resulting in savings of more than Rs 1,500-2,000 crore for Indian merchant ships.

In an impromptu speech, Mr. S. Hajara, former CMD, SCI recalled how Mr. Shetty had worked day and night for 15 days continuously, coordinating with the then India’s permanent representative to the UN, and helped release an Indian flagship which was arrested.

In his closing remarks, Mr. Shetty fondly remembered his stint of five and a half years at the DG Shipping office, first as Jt. DG and then as DG.

Towards the end of the function, there were felicitations for Mr. Shetty, Dr. Mrs. Sujata Shetty and Mr. Kumar. The socialising continued over dinner as everyone at the gathering recalled their individual experiences with Mr. Shetty and his warm personality.


"The startup ecosystem is pretty vibrant today"ValueShipr is a startup that aggregates and organises logistics. It focuses on multi-modal logistics solutions and brings together consignors, consignees, fleet owners, transport companies, warehouse owners as well as agencies on a common platform. Jyotheesh Kumar, CEO and co-founder, ValueShipr, shares his insights.

Tell us a little about how ValueShipr was conceived and started?ValueShipr was born out of actually experiencing real issues whilst transporting household and office goods from Mumbai to Chennai. We were unanimous in our view that this sector remained largely insulated from a lot of modern developments as regards processes, technology, payments and modern distribution methods, etc. The journey of conceiving the platform, business canvas, the blueprint and interviewing other stakeholders began promptly thereafter.

What is the premise on which ValueShipr is built?ValueShipr is a logistics ecosystem where technology intersects logistics. We aim to organise, bring transparency and efficiency to effectively collaborate, grow and carry out scalable transactions in an unhindered manner.

Where is the logistics industry in India in terms of the adoption of online and digital platforms, in comparison to logistics in China and Europe?As per reports, logistics contributes about 6 per cent to India’s GDP and is a $150 billion market, growing at a CAGR of 12-14 per cent and estimated to touch $300 billion by 2022. Only about 18 per cent of this comprises of organised, institutional players where there has been some effort to adopt technology. Most developed countries like US, Europe and China have galloped ahead with the introduction of newer technologies to enhance efficiencies, reach and profitability. Sadly, in India, adoption of technology has been abysmal due to factors such as lack of infrastructure, compliance, awareness and knowledge, prohibitive costs, etc. However, with the government's efforts of late, things are changing. The startup ecosystem is pretty vibrant today and we have many past successes to draw upon. The real inflection point of digital disruption in India started around 2010, when a host of start-ups launched across sectors, threatening the existing system of traditional players. India, being a young market, with a high demographic dividend and consumption, will continue to spawn a large number of ideas and business models. The digital space is still in a growth phase and I expect that higher broadband speeds, knowledge centres

and better infrastructure will help the growth of the digital domain in the coming times.

What are some policy changes required to provide a fillip to digital adoption by logistics players?One of the biggest changes this sector can experience is getting 'Industry' status from the government. A move like this will bring about an organised structure to all activities and take care of human resources also through effective governance.

The planned GST implementation (expected next year) will bring about a dramatic change to logistics, transportation and warehousing across the country. GST is expected to save costs to the tune of 1-1.5 per cent of sales over three-four years, according to ratings agency CRISIL. Eliminating delays at check posts will yield an additional savings of 0.4-0.8 per cent of sales. GST will also bring in scale to logistics companies as there will be a lot of savings, elimination of wastage and lesser delays, as these companies gather scale that will enable them to offer services at lower costs. As a result, companies for whom transportation is not a core part of their business will increasingly outsource their logistics operations to third party logistics (3PL) and fourth party logistics (4PL) service providers.

What are the challenges you are facing?Adoption of technology, acceptance of online payments and validation of fragmented transporters are the top challenges we are facing.

How do you plan to grow your business?We have our strategies in place to ensure we are well represented across micro-markets and have adequate linkages in phases across other modes of transportation

to complete the loop for a discerning consumer. Besides, we are identifying reliable and progressive transport partners who want to grow business and are able to work shoulder to shoulder with us and bring about the change that we have embarked upon. We have a good set of accomplished professionals, young, and driven who are spread out across markets, canvassing and boarding both transporters and shippers. In the coming times, we plan to increase distribution and cover more locations. We are also open to

discussions with strategic alliances and partners to help the platform grow.

INTERVIEW

Mr.Jyotheesh Kumar

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AMTOI successfully collaborated with KPSAA and MPSAA to organise their first ever day-long training programme at Hotel Jai Residency in Gandhidham, Gujarat, on November 19, 2016.

The programme was attended by 40 participants from various shipping organisations from the Kutch area. It was inaugurated by Mr. Vivek Kele, President of AMTOI. Also present were Mr. Mitesh Dharamshi, President, KPSAA, Mr. Yogesh Shah, Secretary, MPSAA, Mr. S Varadarajan, managing committee member, AMTOI, and Mr. C Muraleedharan, VP, Shreyas Relay Systems.

The programme was conducted in association with Maersk Training Centre, Chennai, by distinguished faculty, Captain Satya Narayan. He covered the topic – Types of Bills of Lading and their Uses; and Relevance of Incoterms in Contract of Sale in Container Shipping.

Mr. Vivek Kele stressed on the importance of learning and gaining knowledge through such training programmes. He informed the gathering that training programs were being conducted at Mumbai and Chennai successfully since January

Gujarat CallingAMTOI successfully took its training programme to Gujarat in November last year.

2016. He said it is AMTOI’s vision and endeavour to extend such skill development programmes to other parts of the country as well. Gujarat being a shipping and freight forwarding hub, AMTOI will be conducting many more training programmes on various shipping related topics for the benefit of the trade.

AMTOI, as a knowledge partner, is also in discussions with various local associations in the northern, eastern, western and southern regions of the country to extend such training programmes for the overall benefit of the shipping and freight-forwarding fraternity.

The programme was conducted in association with Maersk Training Centre, Chennai.

TRAINING

Captain Satya Narayan covered a topic on types of Bills of Lading during his session.


Multi-Modal Transport in the GCCThe Gulf Cooperation Council (GCC) countries have been trying to set up a multimodal system in the Gulf region since the last decade.

The sea ports are already well-developed and air and road transport, too, are pretty strong. However, an integrated transport system is lacking due to delays in railway projects; no development of coastal shipping, congested border check-posts and limitations of air transport.

Road Transport The road and air infrastructure are very strong in the Gulf countries. The road between Muscat and Dubai or the new road from Oman to Saudi Arabia are good examples of good quality of roads in the Gulf. Many traders in Oman use the Jebel Ali port and bring imported goods from UAE to Oman by road transport. At present, the containers discharged at Sohar port goes to Muscat and Al Madina Logistics (ICD) by road. Most of the drivers here are from Pakistan and India and need to get a visa for each trip. There are also time-consuming customs procedures. At scheduled intervals, the government staff go for their prayers. Many documents are only in Arabic. Goods lie unattended at check-posts due to a lack of coordination between agents from different countries.

Although there is an international agreement to quickly resolve customs and common documentation issues at the gate, Oman and other Gulf countries are not signatory to the TIR Convention 1975.

A 2,177-km Railway Project There is a railway project envisaged to connect all GCC countries. The plan is to complete the GCC Railway by the end of 2018. However, this deadline is an unrealistic one due to the economic slowdown in the region and getting all the six countries to coordinate in tandem and agree on a common plan for execution.

Apart from GCC, each country has established its own railway company for railway transport for goods and passengers. Accordingly, UAE has established Etihad Rail while Oman has its Oman Rail. Etihad Rail is the only railway line in the region that will carry bulk cargo once it is fully operational by 2017. Its 1,200-km network will cover the UAE from the border of Saudi Arabia to the Oman border and will eventually connect with the larger GCC rail network across all six GCC countries.

The Saudi railway project linking the ports of Dammam and Jeddah together is expected to boost Saudi Arabia's trade

with both the GCC and European countries. The Saudi Railway Organization is also planning to establish a railway between Riyadh and Jeddah. This will be linked with the existing Riyadh-Dammam railway. This project will open new trade opportunities and reduce transport charges. Moreover, it will help to improve the national network and grab the local market. The non-oil foreign trade has

to increase if the future capacities of the ports have to be utilised to their optimal best.

Air Transport There are three airport hubs in the region, namely, in Dubai, Abu Dhabi and Doha. The operators here are Emirates, Etihad Airways and Qatar Airways respectively. The Gulf region is centrally located for Iran, the Indian subcontinent and the African countries who can transfer their cargo and passengers to the

USA, Europe and Eastern Asian countries.

Each mode of transport has been developed in the Gulf but an integrated multimodal transport system is still lacking. Hence, there isn't any regulation or legislation here such as a Multimodal Transportation of Goods Act.

This paper is a review of multimodal transport in the Gulf region by Professor Sham Choughule, International Maritime College, Oman.

INSIGHT

Mr.Sham Choughule

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Girl PowerWomen's International Shipping and Trading Association (WISTA) India, helps attract more women to the maritime industry and also supports them in management positions.

Empowerment, mentoring, education and offering a platform to network are just a few of the things that WISTA provides as it seeks to include more women in the maritime industry.

Students at the collegiate level are made aware of the opportunities in the industry as WISTA delivers talks and conducts both formal and informal career counselling sessions.

The organisation also conducts several workshops and takes not just members but other junior ladies as well on visits to various ports such as Nhava Sheva, Hazira, Chennai, Mundra and Krishnapatnam.

At the ports, the top management including the CEO spends time with the group, updating them with respect to expansion plans and other relevant details. CFS visits, too, are organised to understand the ground realities and impart a better understanding of procedures.

So far, workshops have been held on topics ranging from chartering and arbitration, sale and purchase of ships, marketing, managing customers and customs clearing to supply chain management and talks on softer skills such as etiquette and dress codes in the corporate world. Distinguished academics and industry professionals such as Mr. Shanbaugh, ex-Transchart and Professor Murty of SP Jain Business School are among those who have spent their time, imparting their knowledge and experience. WISTA has also instituted awards for girl toppers at Narottam Morarjee Institute of Shipping and gives them an opportunity to be a part of the organisation.

Ever since the successful launch of WISTA India in 2012, its President, Ms. Sanjam Sahi Gupta’s vision has been to spread its reach within the subcontinent. The first step towards this was achieved when WISTA was launched in Sri Lanka on July 3, 2014, and in Georgia in 2016.

Today, apart from mentoring the younger generation and providing a voice for women in industry forums, WISTA also pursues and supports the creation of both national and international business relationships among its members.

In 2016, the first WISTA Asia-Pacific conference was held in Colombo with several ladies participating from India and overseas.

Also a platform that shares the challenges faced by the exim trade with respect to inadequate infrastructure, congestion, strikes, etc., which it addresses jointly with the authorities, WISTA is happy that AMTOI's extended board has initiated steps to establish a pan-India network called CILA (Confederation of Indian Logistics Associations). CILA comprises national trade bodies and will seek to promote skill development programmes, a cargo community system and digitisation which will connect all service providers and users across India.

Today, WISTA India has over 100 members and along with the support of AMTOI who has taken WISTA on its extended board, the aim is to increasingly promote the contribution of women to the maritime industry.

This article has been authored by Ms. Sumeet Sahi, Joint Secretary, WISTA India

Ms. Sumeet Sahi, Joint Secretary, WISTA India.

ARTICLE


EVENT REPORT

Over the years, the annual AMTOI Day has become an event the shipping and maritime logistics sector eagerly looks forward to. With the who's who of the sector rubbing shoulders with everyone in the industry, AMTOI DAY is celebrated every year in a spirit of togetherness and the kind of familiarity that comes with working collectively all year round.

This time, the ninth edition of the AMTOI Day will be held on Friday, 3rd February 2017, making it even more exciting, given the festive cheer, warm greetings and good wishes that are a hangover from the Christmas and New Year celebrations.

PREVIEW: AMTOI DAY 2017The idea of a themed event on AMTOI DAY seems to have taken firm root.

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From the first AMTOI Day which was held on February 1, 2005, the event has come a long way. Every year, the event has become bigger and grander with its fair share of attractions, sponsors, bumper prizes and other merry-making.

In recent years (from 2014 onward), AMTOI Day has begun adopting a theme for each celebration, which has added tremendous fun and colour to the occasion. Given the success of the previous themes - AMTOI Talkies (2014), Grow India Grow (2015), and Aamchi Mumbai (2016) – the idea seems to have taken firm root and the AMTOI membership now looks forward to more unique and memorable, fun-filled themed events.


MEETING

The meeting was attended by representative of various Trade Bodies and Managing Committee Members.

Besides the discussion on emerging trends in the Shipping and Logistics industry the main focus was on the GST norms and their compliance.

Extended Board Meeting for the Term 2016-2017The meeting was held at Yiamas –The Experimental Space, at Cochin Street, Ballard Estate in Mumbai on 04/01/2017

Managing committee members and extended board members in discussion.

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Before clicking on the SEND button, please do the following:

• Make one last check that the address or addresses in the To / CC / BCC fields are those you wish to send your reply to.• After typing the entire email, please read the email before you send it. Many people don't bother to read an email before they send it. Reading your email through the eyes of the recipient will help you send a more effective message and avoid misunderstandings and inappropriate comments. Your email is your first and last impression that you make to the recipient. • Use proper spelling, grammar and punctuation. This is not only important because improper spelling, grammar and punctuation gives a bad impression of you and the company but it is also important for conveying the message properly. E-mails with no full stops or commas are difficult to read and can sometimes even change the meaning of the text. Everybody’s email software has a spell checking option; why not use it?• Take the time to review each email before clicking the Send button to ensure your message is clear and you are relaying the tone that you desire.

Replying to Messages

Concentrate on one subject per message.

• Always ensure that when replying to emails, it is done with a REPLY TO an email relating to the specific matter to which you intend on replying. Please do not reply with information to an email of a different subject / matter.• We generally tend to become lazy to find the email address of the recipient to whom we want to send an email. Therefore, sometimes we use an old email + hit reply

HOW TO COMMUNICATE OVER EMAILMr. Nailesh Gandhi Hon. Treasurer

and then start typing about an entirely new topic. We do not delete the old matter in that email OR do not change the subject OR both. Never do this. Always start a new email; put the correct email id’s; put a specific subject and ensure that there is no old / earlier matter in the email.• Please do not mix emails of a subject matter with that of another. For example, when replying to somebody for SHIPMENT A, please do not reply to an email which is relating to SHIPMENT B. If you have multiple replies to the same person for different shipments/enquiries, please send different emails. • Please continue a chain of communication and do not break this chain. For example, if you have received an email, please reply back to the same email only. Please do not create a new message when replying to an existing incoming email. For example, for exports, most shipping lines now send bookings over email. The subject matter, too, contains the specific booking number, etc. When replying to the shipping line related to the booking, please always reply only to the specific email and continue with the same chain of emails only. Same procedure can be followed with other emails such as enquiries for customers, quotes, etc.• Please do not reply with information related to BOOKING A with that of an email related to BOOKING B.

Checklist before clicking the SEND button.

Appropriate

Bullets

Edit

Language

Plan

Tone

Proofread

Subject Line

Note: This article is the last in a series of articles on email etiquette

ETIQUETTE

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