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Cargotalk
                                                                   Vol X No. 10
                                                                     Pages 62
                                                                    Rupees 50
                                                                   cargotalk.in
                                                              A DDP Publication




SEPTEMBER 2010                   SOUTH ASIA’S LEADING CARGO MONTHLY
                                               No.1 in Circulation & Readership




Surge in
Sea Cargo
India awaits strong port
infrastructure to become a hub


Warehousing
BOOM
3PL companies eyeing for
growing outsourcing market


RETAIL
LOGISTICS
Service providers urge
for greater autonomy
contents
                                           September 2010

                  LEAD STORIES                                                     Publisher: SanJeet
                                                                        Editorial Director:Rupali Narasimhan
                                                                        Sr. Assistant Editor:Ratan Kumar Paul
                     Warehousing                                        Assistant Editor:Ipshita Sengupta Nag
                                                                           General Manager:Gunjan Sabikhi
                3PL companies to tap 28
                                                                       Sr. Manager Advertising:Harshal Ashar
                 outsourcing market                                     Sr. Manager Marketing:Rajiv Sharma
                     on warehousing                                    Asst. Manager Marketing:Roland Dias
                                                                      Marketing Co-ordinator:Gaganpreet Kaur
                   Retail Logistics                                          Designer:Shivali Shakdher
                                                                      Advertisement Designer:Vikas Mandotia
              Service providers urge 38                                 Production Manager:Anil Kharbanda
               for greater autonomy                                       Circulation Manager:Ashok Rana

                                                                           Durga Das Publications Pvt. Ltd.
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          Kerala to develop Azhikkal 16                                      Email: uae@ddppl.com
                     Port through PPP
                                                                CARGOTALK is a publication of Durga Das Publica-
             FIEO urges for waiver of 16                        tions Private Limited. All information in CARGOTALK
                                                                is derived from sources, which we consider reliable and
               demurrage charges at                             a sincere effort is made to report accurate information.
                                                                It is passed on to our readers without any responsibility
              JNPT and Mumbai Ports                             on our part. The publisher regrets that he cannot accept
                                                                liability for errors and omissions contained in this publica-
                                                                tion, however caused. Similarly, opinions/views expressed
                  Cargo Handling                                by third parties in abstract and/or in interviews are not
                      Equipment                                 necessarily shared by CARGOTALK. However, we wish
                                                                to advice our readers that one or more recognized au-
                Equipment for cargo 20                          thorities may hold different views than those reported.
                                                                Material used in this publication is intended for information
               handling at Delhi and                            purpose only. Readers are advised to seek specific advice
                Hyderabad Airports                              before acting on information contained in this publication
                                                                which is provided for general use and may not be appro-
                                                                priate for the readers’ particular circumstances. Contents
                    Current Issues                              of this publication are copyright.
                                                                No part of CARGOTALK or any part of the contents
                   Anomaly on TDS: 22                           thereof may be reproduced, stored in retrieval system
                                                                or transmitted in any form without the permission of the
                Agents seek opinion                             publication in writing. The same rule applies when there is
               from legal experts, to                           a copyright or the article is taken from another publication.
                                                                An exemption is hereby granted for the extracts used for
             meet ministry of finance                           the purpose of fair review, provided two copies of the
                                                                same publication are sent to us for our records. Publica-
                         Air Cargo                              tions reproducing material either in part or in whole, with-
                                                                out permission could face legal action.
                    Infrastructure                              The publisher assumes no responsibility for returning any
                                                                material solicited or unsolicited nor is he responsible for
             BAR Cargo proposes for 23                          material lost or damaged.
                                                                This publication is not meant to be an endorsement of
            reduction of multiple and                           any specific product or services offered. The publisher re-
                       manual works                             serves the right to refuse, withdraw, amend or otherwise
                                                                deal with all advertisements without explanation.
                                                                All advertisements must comply with the Indian and Inter-
                        Emerging                                national Advertisements Code. The publisher will not be
                                                                liable for any damage or loss caused by delayed publica-
                       Technology                               tion, error or failure of an advertisement to appear.
                                                                CARGOTALK is printed & published by SanJeet on behalf of
               Business Intelligence 26                         Durga Das Publications Private Limited. and is printed at
             for Cargo Terminal Port                            Cirrus Graphics Pvt. Ltd., B-62/14, Phase-2, Naraina Indus-
                                                                trial Area, New Delhi – 110028 and is published from 72
                                                                Todarmal Road, New Delhi – 110001.




06 CARGOTALK SEPTEMBER 2010                                                                         WWW.CARGOTALK.IN
Emerging Technology
 Port Terminal Management




Business Intelligence                                                                                                       Sanjay Mehta




 for Cargo Terminal Port
                Ports and terminals around the world face the challenge of reducing
                equipment and labour costs, managing growth without large capital
                investments in land and berth space and developing new technology.
                Business Intelligence (BI) addresses all the challenges, by providing
                comprehensive terminal solutions for real-time planning,
                management and control of port and terminal operations and inter-
                modal facilities, said Sanjay Mehta, CEO, MAIA Intelligence. CT Bureau



T
         here is a pressure from owners and customers to augment     BI can optimise a terminal’s performance by utilising its port
         profitability and increase throughput, to exceed customer   resources more efficiently. BI Reporting Analytics, combined with
         service goals and prove a return on their information       KPIs & Dashboards, helps executives at terminals to get the right
         technology investment.                                      information at the right time and make strategic decisions faster
                                                                     through alerting, scheduling, reporting, forecasting, auditing and
                                                                     making predictive analysis.
Business                                                             The terminal business is highly mission critical and a 24/7
Intelligence (BI) Features                                           operation, involving varied applications across the domains




26 CARGOTALK SEPTEMBER 2010                                                                                          WWW.CARGOTALK.IN
of operations, services and engineering.        can deliver on this promise if deployed
Since each department is putting data into      successfully because it can improve                        BI can help…
different systems, consolidation of reports     decision making and operational efficiency,
                                                                                                           OPERATIONS
is a huge task and so is determining its        which in turn drives the top line and the                  Railway movement
accuracy. These and text based applications     bottom line.                                               Internal & outside truck movement
make the “timely” data analysis critical                                                                   RTG movement
                                                                                                           QC (Quac Crane) movement
and challenging. With BI, companies can         As per NASSCOM ZINNOV INDIA Software                       Berth productivity
analyse data that was not attemptable           Product Business Study report, BI is on 3rd                Ship production
earlier. The savings from BI are therefore      opportunity priority list for Indian software              Shift production
myriad- less time required to make reports,     product companies.                                         COMMERCIAL
analyse information and therefore make                                                                     Revenue in terms of service
faster decisions.                               Some of the Analysis which can be                          Productivity in terms of service, line and
                                                                                                           voyage
                                                done with BI:
Importance in                                                                                              CLAIMS & CONTRACTS



                                                1      Y a r d Inve n t o r y P e r f o r m a n c e        Vendor Data Analysis and comparison
India                                                  Analysis, which is an interactive
                                                                                                           Claims for accidents and near misses
                                                                                                           Third party as well as one’s own claim
                                                      visual model, allows executives to                   tracking
According to Mehta, BI technology adoption      understand the Container Movement Impact
                                                                                                           FINANCE
and recognition of its importance in India,     analysis by container size. Executives can                 P&L analysis
are definitely on the rise. The maturity of     further analyze on the basis of commodity                  Outstanding receivables / payables
BI adoption can best be seen with the new       and size.                                                  Customer / vendor ageing
                                                                                                           B/S comparisons and analysis
economy companies, including those in the                                                                  Budget v/s actuals and monitoring
marine cargo terminal sector. Currently,
many marine cargo terminal companies
have deployed and stabilised ERP/CRM/
SCM/HRM or core business (transactional)
applications and are thus looking for a
                                                2      QC (Cranes) Analysis a l l o w s
                                                        executives to understand about QC
                                                        productivity i.e. information on
                                                load, unload and total performance ratio of
                                                QC in last one hour, in last 24 hours, which
                                                                                                           HR – Head count reports
                                                                                                           Attrition rate
                                                                                                           Blue/white collar analysis


                                                                                                          Yard production of container stacks
tool that can leverage the IT investment in     type of container has been moved in the last             Container parking and rail cars and gate
these packaged applications. “We are seeing     one hour (20 footer, 40 footer, empty, full           operations involving entry and departure
great interest from verticals, such as Marine   containers) and movement analysis (load,              into the terminal
Terminal Cargo companies for adopting BI        unload and total movement).
for increasing their competitiveness and                                                              These dashboards help the operational
transparency, respectively,” he said.

In India, there is a general awareness on
the theory and concept of BI. They are
spearheading BI adoption by going in for
                                                3      Truck Turn Around Time Analysis,
                                                        visual model allows executives
                                                        to understand the collective
                                                turnaround time of trucks by Gate, by
                                                Truck, by container and container size.
                                                                                                      users to avoid confusion at the ports in
                                                                                                      terms of long queues of trucks awaiting
                                                                                                      access to terminals.

                                                                                                      With BI it is possible to get single unified
separate BI units within the organisation to    Executives can further compare per truck              data view of an enterprise and get benefits
provide the `right’ product to the `right’      performance (for twelve months) according             like saving time, accuracy, authenticity of
customer at the `right’ time and price.         to the container type and size.                       report, manpower saving and much more.
This industry is one of the early adopters                                                            BI turns data into actionable information.
of BI in India. Presently, the demand for
BI solutions is largely being driven by
MNCs and large enterprises. BI solutions
seem to have gained more acceptance
                                                4       Vessel Productivity Analysis
                                                        allows executives to understand
                                                        about Vessel Productivity, including
                                                hourly comparison of container movement
                                                including loading and unloading and also
                                                                                                      It helps monitor, measure and analyze the
                                                                                                      health and performance of a terminal’s
                                                                                                      operations.

and significance in cargo industry where
time plays a pivotal role in the future         give information on how many containers
of the company.                                 have entered in last one hour.                           USERS OF
                                                                                                         BUSINESS INTELLIGENCE
                                                                                                         COULD BE…
Gartner Report “Hype Cycle for ICT in           The purpose of a marine terminal operation’s
India 2008,” expects BI market in India to      dashboard is to allow the marine terminal                  Shift Managers
reach U.S.$ 46.8 million by 2012. India is a    management to monitor yard operations in real              Gate Manager
huge market for Business Intelligence and is    time and to alert them on unforeseen problems.             Maintenance Head
fast growing with double digit figures even     Marine terminal operations fall into three main            Finance Users
in this slowdown. The overall BI market         areas in terms of production management:                   Commercials Managers
in India is at a nascent stage, with a huge          Crane operations from/to vessel and                   Heads of Departments
opportunity for vendors to capture. BI          train/truck

                                                                                                                        27 CARGOTALK SEPTEMBER 2010

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BI for Cargo Terminal Port

  • 1. Cargotalk Vol X No. 10 Pages 62 Rupees 50 cargotalk.in A DDP Publication SEPTEMBER 2010 SOUTH ASIA’S LEADING CARGO MONTHLY No.1 in Circulation & Readership Surge in Sea Cargo India awaits strong port infrastructure to become a hub Warehousing BOOM 3PL companies eyeing for growing outsourcing market RETAIL LOGISTICS Service providers urge for greater autonomy
  • 2. contents September 2010 LEAD STORIES Publisher: SanJeet Editorial Director:Rupali Narasimhan Sr. Assistant Editor:Ratan Kumar Paul Warehousing Assistant Editor:Ipshita Sengupta Nag General Manager:Gunjan Sabikhi 3PL companies to tap 28 Sr. Manager Advertising:Harshal Ashar outsourcing market Sr. Manager Marketing:Rajiv Sharma on warehousing Asst. Manager Marketing:Roland Dias Marketing Co-ordinator:Gaganpreet Kaur Retail Logistics Designer:Shivali Shakdher Advertisement Designer:Vikas Mandotia Service providers urge 38 Production Manager:Anil Kharbanda for greater autonomy Circulation Manager:Ashok Rana Durga Das Publications Pvt. Ltd. DEPARTMENTS New Delhi: 72 Todarmal Road, New Delhi – 110001, India. Tel.: +91 11 23731971, 23710793, 23716318, Fax: +91 11 23351503, E-mail: cargotalk@ddppl.com, Website: www.cargotalk.in Shipping & Ports News Branch Offices Mumbai: 504, Marine Chambers, New Marine Lines, APL Termilals Pipavav 16 Opp SNDT College, Mumbai – 400020, India inaugurates RKI-CCI Tel.: +91 22 22070129, 22070130 Fax: +91 11 22070131, E-mail: mumbai@ddppl.com Service Middle East: P.O. Box 9348, Saif Zone, Sharjah, UAE Tel.: +971 6 5573508 Fax: +971 6 5573509 Kerala to develop Azhikkal 16 Email: uae@ddppl.com Port through PPP CARGOTALK is a publication of Durga Das Publica- FIEO urges for waiver of 16 tions Private Limited. All information in CARGOTALK is derived from sources, which we consider reliable and demurrage charges at a sincere effort is made to report accurate information. It is passed on to our readers without any responsibility JNPT and Mumbai Ports on our part. The publisher regrets that he cannot accept liability for errors and omissions contained in this publica- tion, however caused. Similarly, opinions/views expressed Cargo Handling by third parties in abstract and/or in interviews are not Equipment necessarily shared by CARGOTALK. However, we wish to advice our readers that one or more recognized au- Equipment for cargo 20 thorities may hold different views than those reported. Material used in this publication is intended for information handling at Delhi and purpose only. Readers are advised to seek specific advice Hyderabad Airports before acting on information contained in this publication which is provided for general use and may not be appro- priate for the readers’ particular circumstances. Contents Current Issues of this publication are copyright. No part of CARGOTALK or any part of the contents Anomaly on TDS: 22 thereof may be reproduced, stored in retrieval system or transmitted in any form without the permission of the Agents seek opinion publication in writing. The same rule applies when there is from legal experts, to a copyright or the article is taken from another publication. An exemption is hereby granted for the extracts used for meet ministry of finance the purpose of fair review, provided two copies of the same publication are sent to us for our records. Publica- Air Cargo tions reproducing material either in part or in whole, with- out permission could face legal action. Infrastructure The publisher assumes no responsibility for returning any material solicited or unsolicited nor is he responsible for BAR Cargo proposes for 23 material lost or damaged. This publication is not meant to be an endorsement of reduction of multiple and any specific product or services offered. The publisher re- manual works serves the right to refuse, withdraw, amend or otherwise deal with all advertisements without explanation. All advertisements must comply with the Indian and Inter- Emerging national Advertisements Code. The publisher will not be liable for any damage or loss caused by delayed publica- Technology tion, error or failure of an advertisement to appear. CARGOTALK is printed & published by SanJeet on behalf of Business Intelligence 26 Durga Das Publications Private Limited. and is printed at for Cargo Terminal Port Cirrus Graphics Pvt. Ltd., B-62/14, Phase-2, Naraina Indus- trial Area, New Delhi – 110028 and is published from 72 Todarmal Road, New Delhi – 110001. 06 CARGOTALK SEPTEMBER 2010 WWW.CARGOTALK.IN
  • 3. Emerging Technology Port Terminal Management Business Intelligence Sanjay Mehta for Cargo Terminal Port Ports and terminals around the world face the challenge of reducing equipment and labour costs, managing growth without large capital investments in land and berth space and developing new technology. Business Intelligence (BI) addresses all the challenges, by providing comprehensive terminal solutions for real-time planning, management and control of port and terminal operations and inter- modal facilities, said Sanjay Mehta, CEO, MAIA Intelligence. CT Bureau T here is a pressure from owners and customers to augment BI can optimise a terminal’s performance by utilising its port profitability and increase throughput, to exceed customer resources more efficiently. BI Reporting Analytics, combined with service goals and prove a return on their information KPIs & Dashboards, helps executives at terminals to get the right technology investment. information at the right time and make strategic decisions faster through alerting, scheduling, reporting, forecasting, auditing and making predictive analysis. Business The terminal business is highly mission critical and a 24/7 Intelligence (BI) Features operation, involving varied applications across the domains 26 CARGOTALK SEPTEMBER 2010 WWW.CARGOTALK.IN
  • 4. of operations, services and engineering. can deliver on this promise if deployed Since each department is putting data into successfully because it can improve BI can help… different systems, consolidation of reports decision making and operational efficiency, OPERATIONS is a huge task and so is determining its which in turn drives the top line and the Railway movement accuracy. These and text based applications bottom line. Internal & outside truck movement make the “timely” data analysis critical RTG movement QC (Quac Crane) movement and challenging. With BI, companies can As per NASSCOM ZINNOV INDIA Software Berth productivity analyse data that was not attemptable Product Business Study report, BI is on 3rd Ship production earlier. The savings from BI are therefore opportunity priority list for Indian software Shift production myriad- less time required to make reports, product companies. COMMERCIAL analyse information and therefore make Revenue in terms of service faster decisions. Some of the Analysis which can be Productivity in terms of service, line and voyage done with BI: Importance in CLAIMS & CONTRACTS 1 Y a r d Inve n t o r y P e r f o r m a n c e Vendor Data Analysis and comparison India Analysis, which is an interactive Claims for accidents and near misses Third party as well as one’s own claim visual model, allows executives to tracking According to Mehta, BI technology adoption understand the Container Movement Impact FINANCE and recognition of its importance in India, analysis by container size. Executives can P&L analysis are definitely on the rise. The maturity of further analyze on the basis of commodity Outstanding receivables / payables BI adoption can best be seen with the new and size. Customer / vendor ageing B/S comparisons and analysis economy companies, including those in the Budget v/s actuals and monitoring marine cargo terminal sector. Currently, many marine cargo terminal companies have deployed and stabilised ERP/CRM/ SCM/HRM or core business (transactional) applications and are thus looking for a 2 QC (Cranes) Analysis a l l o w s executives to understand about QC productivity i.e. information on load, unload and total performance ratio of QC in last one hour, in last 24 hours, which HR – Head count reports Attrition rate Blue/white collar analysis Yard production of container stacks tool that can leverage the IT investment in type of container has been moved in the last Container parking and rail cars and gate these packaged applications. “We are seeing one hour (20 footer, 40 footer, empty, full operations involving entry and departure great interest from verticals, such as Marine containers) and movement analysis (load, into the terminal Terminal Cargo companies for adopting BI unload and total movement). for increasing their competitiveness and These dashboards help the operational transparency, respectively,” he said. In India, there is a general awareness on the theory and concept of BI. They are spearheading BI adoption by going in for 3 Truck Turn Around Time Analysis, visual model allows executives to understand the collective turnaround time of trucks by Gate, by Truck, by container and container size. users to avoid confusion at the ports in terms of long queues of trucks awaiting access to terminals. With BI it is possible to get single unified separate BI units within the organisation to Executives can further compare per truck data view of an enterprise and get benefits provide the `right’ product to the `right’ performance (for twelve months) according like saving time, accuracy, authenticity of customer at the `right’ time and price. to the container type and size. report, manpower saving and much more. This industry is one of the early adopters BI turns data into actionable information. of BI in India. Presently, the demand for BI solutions is largely being driven by MNCs and large enterprises. BI solutions seem to have gained more acceptance 4 Vessel Productivity Analysis allows executives to understand about Vessel Productivity, including hourly comparison of container movement including loading and unloading and also It helps monitor, measure and analyze the health and performance of a terminal’s operations. and significance in cargo industry where time plays a pivotal role in the future give information on how many containers of the company. have entered in last one hour. USERS OF BUSINESS INTELLIGENCE COULD BE… Gartner Report “Hype Cycle for ICT in The purpose of a marine terminal operation’s India 2008,” expects BI market in India to dashboard is to allow the marine terminal Shift Managers reach U.S.$ 46.8 million by 2012. India is a management to monitor yard operations in real Gate Manager huge market for Business Intelligence and is time and to alert them on unforeseen problems. Maintenance Head fast growing with double digit figures even Marine terminal operations fall into three main Finance Users in this slowdown. The overall BI market areas in terms of production management: Commercials Managers in India is at a nascent stage, with a huge Crane operations from/to vessel and Heads of Departments opportunity for vendors to capture. BI train/truck 27 CARGOTALK SEPTEMBER 2010