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DP World begins operations at Chennai’s Ftwz

DP World announced the launch of operations at Integrated Chennai Business Park, the company’s free trade warehouse zone (FTWZ) at Manali, about 30 km north of Chennai. The Chennai facility is the company’s second FTWZ in India after the one in Mumbai, which is 18 months old, said Ranjit Ray, Vice President — Economic Zones, Middle East, North Africa, and Subcontinent. The third, inside the Kochi Port container terminal, which is operated by DP World, will be ready soon, he told mediapersons at the facility in Manali. Ray said that before Covid the company had announced an investment of about ₹1,700 crore to build three FTWZs in India in phases. Nearly 45 per cent of the capex has been spent, he said. Once the facilities are fully ready in 3-4 years, about 4 million sq ft of warehouse space would be available, he said. The unit in Chennai is the largest of the three, at 125 acres and 2 million sq ft of warehouse space; in Mumbai it is 85 acres (also 2 million sq ft) and in Kochi 10 acres (0.2 million sq ft), he said. The Chennai facility is located within a 40-km radius of key ports including Kattupalli (~15 km), Ennore (~11 km), and Chennai (~27 km). The current occupancy is around 10 per cent, and would increase to around 70 per cent by the fiscal end, he said. Tamil Nadu is one of the best states to have the FTWZ, he added. Value-added services like packing and labelling can be done at the facility, he said. The four warehouses at the Chennai facility can collectively accommodate 17,000 pallet positions, enabling the handling of specialised and uneven …

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Global trade gains push air freight prices

Global air freight prices edged a little higher again, according to the latest data from TAC Index. The overall Baltic Air Freight Index calculated by TAC was up 2.1 percent for the week to May 6, leaving it now close to flat at -2.2 percent over the last 12 months. “The ongoing strength of the market follows recent predictions of an uptick in global trade from the OECD, IMF and World Trade Organization – and some sources anticipating tight capacity for peak season later this year,” says the update. Rates on the big lanes out of China mostly maintained the positive momentum of recent weeks and months. The index of outbound routes from Hong Kong was up 0.6 percent WoW to leave it ahead by 11.2 percent YoY. Outbound Shanghai was up 1.6 percent WoW to put it ahead by 29.9 percent YoY. Other major lanes out of Asia were mixed after recent big gains with rates from both Vietnam and India higher again to the U.S. but lower on routes to Europe, the update added.

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IATA launches programme to support ground technologies

The International Air Transport Association (IATA) aims to accelerate the introduction of enhanced ground support equipment (GSE) technologies into daily operations with a new programme. Presented at IATA’s Ground Handling Conference (IGHC) this week, the IATA Enhanced GSE Recognition Program recognises Ground Handling Service Providers (GHSPs) that are modernising their vehicle fleets. The programme encourages the installation of anti-collision systems on new and existing ground support equipment (GSE), to prevent expensive potential damage to aircraft on the ramp. The first ground handlers to obtain this recognition at various stations are HACTL and Menzies Aviation. GHSPs participating in the programme will have the opportunity for their fleets to be assessed. Those achieving a ratio of Enhanced GSE to non-Enhanced GSE that exceeds a predetermined threshold will receive a recognition stamp valid for two years. Participation in the programme will be voluntary and free of charge, as part of IATA’s commitment to achieving industry-wide safety improvements without imposing financial burdens on GHSPs.

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Uttar Pradesh govt to invest Rs 45K crore to accelerate cargo movement

The Uttar Pradesh (UP) government has earmarked nearly Rs 45,000 crore for investments in highways and tertiary roads in the current financial year 2024-25 (FY25). This move would expedite passenger and cargo movement in the state. These projects encompass bridges and over-bridges across the 75 districts of the state. Of the proposed Rs 45,000 crore, the public works department (PWD) will spend nearly Rs 34,000 crore, or 75 per cent. The remaining Rs 11,000 crore will be incurred on projects in the villages, tehsils, block headquarters, international/interstate border roads, roads in sugar mill and industrial areas, as well as roads under ‘Dharmarth’ (religious tourist circuit) project.

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UK leverages logistics support agreement to expand maritime cooperation with India

The U.K. is leveraging a logistics support agreement signed with India to expand military to military engagements, especially in the maritime domain, as it also looks to augment its capability and deployments in the Indo-Pacific. A U.K. warship underwent essential maintenance for the first time in April at Larsen & Toubro’s (L&T) shipyard at Kattupalli as a Royal Navy Littoral Response Group-South (LRG-S) visited India. The logistics-sharing agreement allows for the provision of logistic support, supplies and services between the UK and Indian armed forces, for joint training, joint exercises, authorised port visits and Humanitarian Assistance and Disaster Relief (HADR) operations,” Brigadier Nick Sawyer, Defence Advisor in the U.K. High Commission in India, said on social media platform X. “This agreement has been a real game changer. It has led to increased engagements between our armed forces. The vital logistics partnership supports longer deployments of our capabilities in the region and is clear evidence of the UK Indo-Pacific tilt in action, in sync with India.”

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CMA CGM to reshuffle Africa-India-Middle East services

CMA CGM announced the revamping of their India Middle East Gulf to and from South Africa, East Africa and Indian Ocean services. MIDAS 1Coega will be added to the MIDAS 1 rotation offering an optimised pathway for shipments through competitve transit times to Jebel Ali and India. The service will be tailored to enhance efficiency and meet the demand of the citrus season export. “MIDAS 1 will now be operated in 70 days with 10 vessels up to 5,700 TEU Nominal, starting with m/v CMA CGM KRIBI, ETA Coega on May 5th, 2024,” reads the release. The new rotation is: Jebel Ali – Mundra – Nhava Sheva – Pointe Noire – Tema – Apapa – Capetown – Coega – Jebel Al MIDAS 2Durban will be the unique port of call in South Africa for MIDAS 2 and Pointe des Galets will be transferred to CMA’s new KARIBU service. Port Elizabeth will be offered on a weekly basis via Durban through dedicated feeder solution with faster transit times. “MIDAS 2 will still be operated in 49 days with 7 vessels up to 2,800 TEU Nominal, starting with m/v CMA CGM VALPARAISO, ETA Jebel Ali on April 22nd, 2024 and ETA Durban on May 14th, 2024,” reads the release. The rotation is: Jebel Ali – Mundra – Nhava Sheva – Durban – Jebel Ali KARIBUHAX service will be replaced by KARIBU, a weekly service fully operated by CMA CGM. “Using our best class product, you will experience competitive transit times and easily connect Indian Ocean using our Pointe des Galets hub. KARIBU will be operated in 42 days with 6 vessels up to 1,700 TEU Nominal, starting with m/v CMA CGM KAILAS, …

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American Airlines Cargo announces new routes out of Europe and Asia

American Airlines Cargo is announcing its summer widebody schedule with new routes and increases for the 2024 season. Out of Europe, the carrier is operating new flights from Barcelona-El Prat Airport (BCN) to Dallas/Fort Worth International Airport (DFW), from Copenhagen Airport (CPH) and Nice Côte d’Azur Airport (NCE) to Philadelphia International Airport (PHL), and from Venice Marco Polo Airport (VCE) to Chicago O’Hare International Airport (ORD). Some of these seasonal routes started as early as April while others will extend as far as October. Though some of these trans-Atlantic routes are new, American is already a trusted name in those European markets thanks to its extensive trucking network. Some origins are known for producing significant shipment traffic, such as pharmaceuticals and fish from CPH and fragrance products from the Grasse area near NCE. In addition to new routes, several seasonal summer routes are now year-round including BCN to PHL, Lisbon Airport (LIS) to PHL and Madrid-Barajas Airport (MAD) to CLT are now year-round instead of seasonal. In the trans-Pacific region, American is offering new service from Haneda Airport (HND) to John F. Kennedy International Airport (JFK), as well as an increase to daily flights from Shanghai Pudong International Airport (PVG) to DFW. Domestically, the carrier is also operating a significant widebody network. With service between its largest hub at DFW and key U.S. hubs like MIA, ORD and PHL, the carrier offers more ways for large freight to connect within the U.S this summer season. “We are excited to offer our customers more opportunities to move their goods across our global network this summer season,” says Roger Samways, Vice President of Commercial for American Airlines Cargo. “Offering new and increased …

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KSH Logistics expands multi-client warehousing facility in Chennai

KSH Logistics announced the expansion of its multi-client warehousing facility in Chennai, setting a new standard in warehousing excellence. The newly expanded warehouse spans 25,000 square feet and features ground storage capabilities. With strong tech support, the facility caters to various needs, including co-packing, distribution, e-commerce, and omnichannel services, meeting evolving customer demands. The facility ensures cost efficiency, warehouse space optimization, safety, capacity flexibility, and sustainability. With this expansion, KSH Logistics has extended its presence into key markets, boasting a total capacity exceeding 1 million square feet across India. Additionally, leveraging advanced Hydra and Farana, the facility ensures precise handling of specialized products like OTR (Off-the-Road) tyres, with a capacity to manage tyres with a diameter of up to 10 feet, further enhancing efficiency and productivity. Moreover, the facility operates on a cutting-edge Warehouse Management System (WMS), enabling seamless and streamlined operations from end to end. KSH will also be doing transportation of OTR tyres across India. “The new A-Grade MCF warehouse in Chennai adds yet another pivotal step forward. In the upcoming months, our focus is on aggressively expanding our MCF network into multiple cities. Through this strategic initiative, we aim to increase our total warehousing area to 2 million square feet. As a result, solidifying KSH Logistics’ position as a leader in the logistics industry”, said Mr Vinay Patil, Vice President – Business Development of KSH Logistics. KSH Logistics is set to transform warehousing in the Chennai market and is on the path of expanding its footprint across multiple cities in Chennai. Moreover, the new facility is fully compliant with fire safety regulations and is equipped with hydrants, sprinklers, and extinguishers. It meets local regulations as well as …

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Rail freight grows 1.4% in April; coal cargo declines by nearly 8%

Indian Railways in April recorded 1.45 per cent growth rate in its freight volumes, dragged down by weak numbers in coal transportation. It transported 128.29 million tonnes (mt) of goods, witnessing a fall of nearly 6 mt in its coal traffic, according to reports. “Freight revenue of Rs 14,075.14 crore was achieved in April 2024 against Rs 13,893.27 crore in April 2023, thereby showing an improvement of about 1.30 per cent over the last year,” the official said. While the railways increased its cargo in other segments, its coal traffic fell nearly 9 per cent in April to 57.64 mt year-on-year. The volumes were also slightly lower than in 2022, when the railways had to cancel more than 1,000 train trips to meet increasing coal demand, indicating supply-chain readjustment on account of changing weather patterns. Coal is the mainstay of railways’ freight earnings and accounts for 50 per cent of the transporter’s cargo volumes and revenue. A cooler start to the summer has been held to be the reason for coal volumes being subdued in April. The northern and western parts of India, which are the core demand drivers for thermal coal, witnessed cooler than expected temperatures. Northern and western states form the largest chunk of India’s power demand. The eastern part of the country has been sweltering and also pushing power demand but it remains lower than the two other big regions, adds reports.

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Horizon Industrial Parks opens second logistics park in Pune, Chakan V

Horizon Industrial Parks, a portfolio of Grade A logistics parks in India owned by Blackstone Real Estate funds, has announced opening of its second logistics park in Pune, Chakan V. “The 100-acre park is located in Chakan, one of the key industrial hubs of the country with well-developed social and economic infrastructure. Chakan’s proximity to Mumbai and Pune via the Mumbai-Pune Expressway and JNPT Seaport makes it an ideal base for industrial and logistics operations,” reads the release. Horizon Industrial Parks recently completed the development of the 52-acre Chakan II park. The park is home to several high-profile companies from diverse sectors including auto components, engineering, and third-party logistics service providers. Urvish Rambhia, principal at Blackstone, said, “We are thrilled to break ground on Chakan V, which will be built as the state-of-the-art facility, as part of our commitment to providing high-quality logistics assets in strategic locations. We continue to see strong demand for modern warehouses in India, driven by increasing e-commerce adoption and strong industrial growth.”

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