Air Logistics

Air Logistics

• “Air cargo’s development is being driven by these emerging regions, where population migration and middle class growth creates the demand for food and other perishables,”

Airbus Senior Vice President Christopher Emerson.

• China and India are in the vanguard of a wave of urban expansion that is restoring the global prominence that Asia enjoyed before the European and North American industrial revolution. By 2025, nearly 2.5 billion Asians will live in cities, accounting for almost 54 percent of the world’s urban population.

2010 McKisney Urbanization

• Project Title:-Study of Air Logistics, including cold supply chain management in European and Indian markets.

• Objective: -To study the air logistics its pre and post operations .

-To identify different market segments and opportunities for growth in Air and Cold logistics.

-To evaluate major trends, and development of European markets viz. France, Hungary, and Germany.

Conglomeration of Air and Cold Chain Logistics

AIR TRADE

European services

Air Logistics services Urgent Air Freight Economical Air Freight Flexible, Day-definite Air Freight Fast and Flexible Door-To-Door Freight Solution Multimodal Fright Transport Heavy Goods Air fright Life Sciences Air Freight Perishable Goods Logistics

Process Cargo issued from

customer

Documentation and custom clearance

Entry of schedule in system of cargo

transportation

Cargo pack according to slot

and space allocated

Entry of slot in system

Cargo uploaded and transported

Check and deliver Received on

mentioned Air port and Enter the Entry

in system

Challenges

Cost Effectiveness

Market Slowdown

Developing and managing Global Footprints

Air Lines expectations

World wide Total Cargo Management

Slot utilization on busy Air ports

Carbon emission

Investments planned on Airports

Mumbai Delhi Cal &Chenni

Hydrabad Bangaloru Other0

10

20

30

40

50

60

70

Rs. Bn.

Rs.Bn.

2008: DEssence study logistics

Prospective Areas

Sr.no.

Type of infrastructure Locations

1.Complete Air Cargo Center Delhi, Mumbai

2.Bonded Warehousing Bangalore, Kolkata

3.Air Cargo Center Ranchi, Jammu,

Madurai, Varanasi

4. Green field projects Goa, Navi Mumbai, Hyderabad, Pune, Bangalore, Greater Noida, Kaannur.

Ownership pattern

2009: Deloitte India logistics infrastructure

Cold Chain

• In India About 200 million tonnes of of Fruits &Vegetables , perishables are produced in a year of which only 25 mt cold storage facility is available India.

• Due to this lack In Cold Storage Facility about 30 % of the Products get Wasted.

The Golden Quadrilateral

Insurelifeindia.com

Link with all road , airport, ports, railways provides quick transfer of goods and connectivity.

Cold chain will benefit the maximum as cold chain stations will be strategically established in places.

Cold Chain Products/Segments

• Fruits & Vegetables.• Chemicals.• Ready to eat Products.• Life Sciences/ Pharmaceuticals.• Poultry/Marine Seafood/Meat.• Chocolates and other Dairy products.

• The cold chain industry is estimated to be as large as Rs 10,000-15,000 crore, growing at 20-25 per cent and is expected to touch Rs 40,000 crore by 2015.

• India is the largest producer of fruits and the second largest producer of vegetables in the world, with total production of 63.5 million tones of fruits and 125.89 million tones of vegetables

• It is the largest producer of milk with 105 million MT per year, produces 6.5 million tones of meat and poultry and 6.1 million tones of fish.

• The perishable products transaction volume in India is estimated to be around 230 million MT.

• As per industry estimates approximately 104 million MT of perishable produce is moved in the country in a year, out of which around 100 million MT goes through non – reefer mode and remaining four million MT goes through reefer transport.

• The value of reefer transportation business in India (both organized & unorganized segment put together) is estimated at about Rs. 1100 crores (USD 250 million).

• It is estimated that about 25000 vehicles are involved in perishable products transportation of which dairy (wet milk) constitute about 80%, thereby leaving only about a fleet of 5000 refrigerated transport vehicles for all other categories put together.

• Most cold storage and refrigerated transport capacity is operated by small, non integrated firms that do not make use of state – of – the – art technology or management practices.

Source:http://indiacoldchainexpo.com/about.html

Bottlenecks

Lack of know how and trained manpower.Lack of backward & forward linkages to supplement Cold Chain.Lack of trust on viability of Cold Chain projects. High capital investment High operational costs due to high cost of power.Problems of optimization in reefer transport

Government initiatives• All the relevant schemes pertaining to the Cold Chain Industry

have been outlined and a separate compendium has been prepared containing all these schemes.

• A Special Purpose Vehicle has been set up for the Cold Chain Logistics

• Setting up of National Centre for Cold Chain Development (NCCD). NCCD Activities are:

Training and Capacity Building Research and Development Building standards through International benchmarking Interaction with National / International bodies for development of cold – chain infrastructure and trade in perishable

Features

Total Cargo Management

Efficient and experienced cargo operations teams

High standard of customer service with 24/7 duty managers

Up-to-date use of communication tools and the latest technology

Full working knowledge of special cargo requirements and regular training

Closely monitor handling and trucking

biblography

2008: DEssence study logistics2009: Deloitte India logistics infrastructureInsurelifeindia.comhttp://indiacoldchainexpo.com/about.htmlhttp://www.airbus.com/newsevents/

Thank You…!!