RTC Conclave
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DISCUSSIONS FROM THE NCCD CONCLAVE ON REFRIGERATED TRANSPORTATION
7t h Ma r c h , 2013 Ih c , Del h i
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Major bottlenecks in faced in temperature controlled transportation (your opinion)*
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Conclave on Refrigerated Transportation 7 March 2013 Gulmohar Hall, India Habitat Centre, New Delhi
‘Bottlenecks and Solutions’
Interaction Structure Supported by:
Partnered by:
Pre-Registration Check
0930 – 1000 hrs
0955 – 1000 hrs
Welcome Address by
Devna Khanna, ICE Cold-chain Initiative
Lam La mp L Liig hti hting ng & I na naug uguration uration Mr. Pawanexh Kohli (Chief Advisor to NCCD)
Theme Talk
Mr. Shailendra Kumar Secretary Government of J&K (Ex-Director NCCD)
Theme Address by
1000 - 1030 hrs
Mr. Sanjay Bandhopadhyay Joint Secretary, Ministry of Road Transport & Highways Mr. Sanjeev Chopra Joint Secretary, NHM Dept of Agriculture & Cooperation
Special Address by Keynote Address by Inaugural Address by Chief Guest
Mr. J. P. Meena Joint Secretary, Ministry of Food Processing Industries
Plenary Session
1030 – 1115 hrs
Reefer Transportation: India Opportunities & Challenges
Mr. R.S. Bedi Chairman, Task Force on Logistics, PHDCCI
Reefer Transport Support Initiatives
Dr. R. K. Sharma Director NHB
Investment Opportunities & Outlook
Dr. Anupam Srivastava
NCCD Roadmap
Managing Director, Invest India (FICCI-DIPP) Capt Pawanexh Kohli Chief Advisor, NCCD
Interactive Discussions – Overview of Refrigerated Transportation in India
1115 – 1130 hrs
Tea / Coffee Break
1130 – 1240 hrs
Session – II
Technology User’s Perspectives
Opening Remarks by Session Chair
Pawanexh Kohli Chief Advisor, NCCD
Status of Reefer Transportation: Transportation: Users perspective
Mr. Alok Dubey DGM, Fieldfresh Foods Pvt. Ltd.
Refrigeration on Reefer trucks
Mr. Ashok Mirchandani MD (Asia Pacific), Carrier Transicold India
Technology Innovation for last mile distribution Bottlenecks to temperature sensitive Pharma Distribution
Dr. Devendra Jain
Roadblocks to Future Demand: Reefer Transport
Mr. Howard J Scott MD, Big Bear Supply Chain Management
Bottlenecks in Body Dimensions: Reefer Transportation
Mr. V.P. Vargheese MD, Surakhsha Transport Systems India Pvt. Ltd.
Director & Innovator, Pluss Polymers
Mr. Chetan Kumria Director Supply Chain, Baxter (India) Pvt Ltd.
Interactive Discussions – User’s Perspective Cold-chain Transportation
1240 – 1330 hrs
Lunch Interaction
1330 - 1440 hrs
Session – III
Logistics Provider’s Perspectives
Opening Remarks by Session Chair
Dr. R. K. Sharma Director, National Horticulture Board
Rail based Multi-modal Reefers: growth bottlenecks Insulation Technology Bottlenecks in Refrigerated Transportation
Ms. P. Alli Rani CEO FHEL and Director (Fin), Concor.
Bottlenecks to Rail based Reefers
Mr. Amitabha Chaudhari MD, APL IndiaLinx (NOL Group)
Mr. K.K. Mitra Vice President, Lloyd Insulations India limited
LSP perspective: Status & Constraints Mr. S.K. Sarkar Reefer Transportation COO, Crystal Logistics Developing designs for Modern reefer Mr. Siddharth Mishra logistics CEO, HLM India Pvt. Ltd. Interactive Discussions – Logistics Service Providers Perspective
1440 – 1500 hrs
Tea / Coffee Break
1500 – 1620 hrs
Session – IV
Technical & Supply Chain Perspectives
Opening by Session Chair
Mr. Aman Khanna Associate Director, Ernst & Young
Developmental Bottlenecks: Supply Chain perspective
Mr. Purvin Patel COO/Business Head, Radha Krishna Food Land
Road blocks to Food safety and compliance in cold chain.
Mr. B.T. Gorti Saradiro E Service Pvt. Ltd
Lightweight materials in reefer bodies.
Dr. Cosima Klinger-Paul Managing Director, Lamilux India Pvt. Ltd.
Bottlenecks for Reverse logistics
Mr. Anil Chopra MD, Field Fresh Vegfru Pvt Ltd
Impact of Insulation on Reefer Transport
Mr Jag Mohan Gupta Director, APC Polycoat India Pvt. Ltd.
chain ain Perspective Interactive Discussions – Supply ch
Vote Vot eo off Thanks to Par Parti ticipants cipants & Co Conclu nclusi sion on o off Conc Conclave lave 1630 - 1730 hrs
Open House Interactions - Tea /Coffee
Note to participants: This interactive conclave is intended as an NCCD outreach programm prog ramme e to document the bottlenecks faced if any and solutions suggested by stakeholders in the refrigerated transport transport sector. The interactions are an opportunity for stakeholders to express their varied concerns so as to facilitate greater appreciation when planning future policy interventions. Participants are exhorted to keep this prime agenda in mind for the day’s deliberations & are reminded not to utilise this as an opening for marketing of services/products. Note: This program is final
NCCD Website
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T: 011-23061595 011-23061595
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INAUGURATION SESSION cy J & K and and E x Dir Di r ect cto or NCCD NC CD Mr. Shailender Kumar, Se Kumar, Secy Mr. Shailender Kumar reinstated the fact that produce needs to move from farm to wholesale to retail and finally to the consumer, where the chain is required to be integrated. While there exists a static storage infrastructure, the absence of transport facilities defeats the purpose. Refrigerated transportation sector is not given appropriate importance and hasn’t flourished at an equal pace. He urged the stakeholders to come up with the bottlenecks faced and make suggestion to NCCD on the probable course of action so that valid recommendations to the Ministry of Agriculture could be put into action. He made the audience aware that there exists Extensive highways; rural roads and that Agriculture produce available in all parts of the country; these need to be transported to reach the consumer. According to a study by ICAR the perishable losses amount to 1 lakh crores in current value terms. There are twin losses happening- one in terms of monetary loss and the other is the actual loss of produce which a could have helped to bring about nutritional security in the country and promoted exports of fruits and vegetables. There are only 7000 refer trucks for transporting 20 to 30 million MT of produce manned by unskilled workforce which can lead to further deterioration of the quality of the produce handled. The condition of air and ship cargo is even worst. There are a number of issues like lack of understanding of protocols and standards, taxation concerns, interstate traffic regulations and other issues. The government has offered a number of incentives like schemes of NHM, subsidies, 100% FDI, external commercial borrowing allowed and excise exemption, no service tax applicable and zero custom duty. But the industry participants are still not fully utilizing these benefits – was it due to lack of awareness or other matters. He also emphasized that while studying the industry we should also keep in mind the number of refrigerators available in each household which is truly the last mile.
Mr. Bandhpadhya, Bandhpadhya, J Jo oint Se Secy cy,, M ini inist strr y of Trans Transp por t & H ig ighw hwa ays He elaborated on the state of affairs of the roads in the country where he highlighted that there exists 5 million Kms of road network in country and 85000 kms of National Highways alone. A number of technological and infrastructural advancements have been made in the last 7-8 years. Routes with high traffic movement have been taken up to facilitate easy movement of cargo and people. National Permit Vehicles have been introduced where tax payment is online. RFID enabled vehicles is the next major step taken by the ministry to address the issue of long queues on toll plazas. He also told that a system for common taxes is under process and would be made available by April end with all the payments pa yments made online. He requested the stakeholders to come up with a wish list which can be taken up by the Ministry to resolve the bottlenecks.
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oint Se Secy cy,, Mi nist nistrr y of Agri Agr i cu cult lture ure Mr. Sanjeev Chopra, J Chopra, Jo Mr. Chopra highlighted that fact that the mood and development in the cold-chain is very positive, especially as the nation has moved beyond basic grains in agriculture to the high value fruits and vegetables. He said that we are close to attaining a higher level of food security and the nation is now looking ahead to high value produce like fruits, vegetables and exotics. He also said that there are two ways of looking at the cold-chain sector, wherein it is stated that there is 50% capacity available: one that the sector is slow to develop and the other is that this 50% capacity has been built in the last 7-8 years which is a very positive indicator and a commendable accomplishment. Referring to the fellow representatives from Ministry of Agriculture, Food Processing and Transport, he said that no ministry can individually direct to handle the bottlenecks faced by the refrigerated transport sector. He stated that 7000 refer trucks is like a small minidrop in the ocean. He suggested that the aim of the conference is to determine the additional support needed for this important cold-chain link and that this important transport sector needs to catching up with the growth in storage capacity. He highlighted to the audience that the government was undertaking a series of progressive reforms, in the APMC act, in extending fiscal support, promoting of institutional links, in knowledge sharing and it was for the industry to understand and help in this national agenda. The future focus is on efficient post-harvest management and this means more partaking from the transportation and storage arms of the cold-chain sector. He stated that the refrigerated transport is not only related to fruits and vegetables but other segments like dairy, ice-cream, poultry and pharma. He requested the stakeholders from all these sectors to come up with their issues. NCCD having a modern approach is a body which is in a position to address these issues at a much faster pace.
Meena, J Jo oint Se Secy cy,, M ini inist strr y of Fo F ood Pr Pro oce cess ssii ng & I nd ndust ustri rie es Mr. J. S. Meena, Mr Meena highlighted that the transportation sector is very vital in controlling the wastage of fruits and vegetables. New mega food parks are being set by the Ministry of Food Processing and Industries, abattoirs are being modernized, new infrastructure has been put in place but the most important connecting like is the transportation sector. He informed that 63 projects of integrated cold chain with an investment of 1200 crores are in the pipeline and 75 projects of integrated cold chain with an investment of 1500 crores are planned in next two t wo years. He stated that all these investments would be meaningless if the transport sector is undeveloped. According to him the key challenge is the lack of skilled manpower.
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SESSION 1: PLENARY SESSION Mr R S Bedi, C ha haii r man, Task Task F or ce on Logist Logi stii cs cs,, PH D C C I I Indian Cold Chain Industry • Majority of the cold chain infrastructure in India was developed in 1960s which majorly supports the storage of potatoes and potato seeds.
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About 75% of the total capacity of cold storages is suitable only for potatoes.
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Cold chain Infrastructure for other temperature sensitive goods is at abysmal state right now.
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On an average, about 30-40% of horticultural produce gets wasted annually in India.
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Even though India is the second largest producer of vegetables worldwide but its share in global export of vegetables is around 1.3% only. This is mainly caused by the lack of cold chain infrastructure which includes both storage and transportation facilities.
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According to recently published report by TechSci Research “India Cold Chain Market Forecast & Opportunities-2017” the cold chain market of India is anticipated to grow at the compounded annual growth rate (CAGR) of 28% during 20122017, which will make it a whooping US$ 11.6 Billion Bil lion (Rs. 6,400 Crore) market.
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The Indian cold chain market is highly fragmented in which about 3500+ players are present and most of them are from f rom unorganized sector. sect or.
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India has nearly 23 million MT of cold storage facilities where as it currently needs at least 10 million MT of capacity over and above the existing one.
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Uttar Pradesh, West Bengal and Punjab account for around 70% of the total capacity.
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In the present scenario, India is able to store only 2% of its farm produce in temperature controlled environment as against 8% for the Asia-Pacific and 85% for Europe and North America.
Global Cold Chain Sector • The total capacity for refrigerated warehouses is estimated at 458 million cbm worldwide, of which 310 million cbm are public warehouses (for hire).
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During the last two years approximately 192 million cbm of additional refrigerated warehouse capacity has been created.
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USA, India and China account for the largest share in cold storage industries worldwide.
3 main segments of Cold Chain Industry
He explained that the industry could be divided into three component sectors. Namely, warehousing, transportation and integrated logistics. The last was of utmost importance to its success as it ensures cohesive and safe handling and assured quality.
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Refrigerated Transportation In India Present Status • In India, unlike Western Europe or the USA, cold chain distribution or refrigerated transport is still at a nascent stage.
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When compared with the world standards for cargo movement through cold chain, India is way behind.
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The percentage of movement of fruits and vegetables through cold chain in U.S. is around 80 to 85%, Thailand is 30 to 40% while it is negligible in India.
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According to industry estimates, approximately 104 million MT of perishable produce is transported between cities in India each year. Of this, about 100 million MT moves via non–reefer mode and only 4 million MT is transported by reefer.
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Currently, most of the refrigerated transport segment is fragmented with large number of small, non integrated private players focusing on select commodities or regions.
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Their key assets comprise of modified trucks with additional insulated fixed containers and air conditioning units.
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India has about 250 reefer transport operators (mainly private firms) that transport perishable products. Of the estimated 25,000 vehicles in use, 80% transport dairy products, thus leaving only about a fleet of 5000 Vehicles for refrigerated transportation.
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Market studies have revealed that about 40% of the vehicles are for long haul movement while 60% vehicles are for short haul movement.
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Presently, the reefer transportation business in India (Both organised and unorganised segment) is estimated at about Rs 10-12 billion which includes reefer transportation demand for both exports and domestic.
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With regards to volume, the current reefer transportation business for exports is about 2.5 million MTS and for domestic consumption is about 1.5 million MTS.
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Based on the existing production and consumption pattern, the market can be stretched to a potential of 14 million MTs in the next 5 years. Major problems that cold chain logistics industry has been facing are power outages, fragmented market, high costs because of long transit time etc.
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Most of the cold chain providers are private players. There are few players that can offer an end-to-end cold chain solutions leading to limited choices for outsourcing by the manufacturers.
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Multi modal transport network for cold chain is lacking. Road transportation accounts for more than 60% movement. Leads to environmental issues.
Opportunities ahead
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Indian Logistics sector has evolved during the past two decades from being a pure transportation service to provision of value added offerings as customs clearance, freight forwarding, cross-docking, reverse logistics, warehousing of modern standards etc. however, it is still characterized by dominance of unorganized market.
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Logistics market represents about 6.2% of the country’s GDP with transportation segment being the largest component of the market as most of the industries spend more than half of their logistics cost on this function.
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India is viewed as Asia’s most attractive logistics market and ranks at No.4, whereby there is moderate logistics infrastructure in place and companies are starting to adopt integrated logistics practices thus offering more opportunity for growth as compared to an already developed logistics market like Singapore, which ranks at 13( as per
SSKI research) Pharmaceutical Cold Chain Logistics represents an emerging opportunity in India despite several local challenges…
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New Drugs: In addition to the 130 biotechnology drugs and vaccines approved by the US FDA, there are more than 350 biotechnology drug products and vaccines currently in clinical trials. Many of these biotechnology drugs are temperature- sensitive that require cold chain network. Ø Focus on Vaccines: major shift in the product portfolio of leading pharma companies, with focus on products developed through advanced technology like vaccines, which require maintenance of a proper cold chain right from the manufacturer’s premises till it reaches the patients. Ø India’s growth as an outsourcing hub is making MNC’s being particular about Ø
strict regulatory compliance and costs, thereby increasing the demand for cold chain transport infrastructure What needs to be Done Export Logistics • Special emphasis needs to be laid on development of reefer related infrastructure in view of India’s export thrust and potential. Much time has already been lost in this direction. Addl infrastructure could be developed at ICDs at Delhi, Bangalore, Pune, Hyderabad, Guwahati, and ports at JNPT, Madras, Cochin. It is felt that the above mentioned ports and ICDs, and their hinterlands are most suited to exploit the exports of perishable cargo.
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Currently in India there are bottlenecks at most of the Indian Airports that include authorities not being able to assure cold room space despite getting advance notices from the companies about possible unloading of large consignments of temperature sensitive products.
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Cold chain dollies need to be provided at all international airports for movement of temperature sensitive cargo from airport warehouses to the tarmac where aircraft is parked. Some of the other gaps include improper training and refresher courses for some of the handling staff who handles such products at the Airport. Storage of Pharmaceutical products along with the meat and food products is against the GMP norms There should be emphasis on standardization and procurement to top-of-the-line technology. This should include: Ø
A perspective plan to introduce handling and storage systems over a period of time and it should be responsive to the needs like changes in refrigerated containers, etc.
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Planning of adequate numbers of reefer receptacles to be done in such a way that the ports are able to cater to the large variety of electrical supply variables like voltages, connector types, and interfaces. This would not involve much investment and help in making the refrigerated container service effective and attractive at Indian ports.
Road Transportation and Others • Main arteries of roads and bridges along the way or which are important for container movement need special attention. There needs to be greater emphasis on design, specifications, quality of construction and maintenance of these roads. This aspect is more important since the refrigerated containers are larger and heavier. Multi-axle trucks (with suitable facilities for under slung diesel generating units) should be planned and encouraged. encou raged.
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Domestic manufacturing should be encouraged. The domestic reefer market is large and could prove as a catalyst in growth of transport of fruits, vegetables, fish and other horticultural products. The required equipment and technology for insulation, cooling and the basic reefer technology should be obtained from leaders abroad. Import duties on components and equipment should be reduced. India’s domestic market for refrigerated container services is yet unexploited. Aggressive marketing and making container services available for domestic perishable cargo would help in improving cargo transportation culture in India; also there is an ardent need to spread container culture among the shippers. Refrigerated containers need special facilities for testing, calibration, checking, cleaning and servicing. This is a relatively labor intensive service with considerable value added. Moreover, it goes a long way in ensuring long life and high value to the product being transported; hence such facilities should be introduced i ntroduced at the ports and ICDs. Greater thrust needs to be provided for development of suitable refrigeration systems including temperature controllers (with vast range and fine tolerances). End-users should also be involved in coordinating with the refrigeration industry of their special requirements.
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• Need of Capital investment investmen t in Rail support equipment equip ment to move reefer containers. contain ers.
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Provision of fast, scheduled, refrigerated container block-trains, etc should be there. The transport industry, shippers and government should create a task force to decide on strategic locations where inland pre-cooling and cold storage facilities could be developed, which are woefully inadequate. Promote organized Retailing in India; this would help in encouraging investment in the cold chain sector (Including Reefer Transport). A key gap in cold chain space is lack of adequate & relevant human capital to manage and operate the cold chain systems. So focus should be on opening more and more specialized institutes for cold chain technicians where they can avail on job training. Technical Standards are not suitable for Indian Transits; Poor cargo handling knowledge or dissemination; No intelligent support mechanism; Irregular parameters across regions; Standard refrigerated systems are inefficient & poorly designed and Lack of connectivity & distribution centres , such issues need to be addressed seriously and in detail to improve the existing scenario of Reefer transportation in India. Power shortage in the country (approx.10%, with a peak deficit of17%) could lead to significant impacts on cold chain sector, which is dependent on electricity for refrigeration. This needs to be addressed. Lack of Concrete regulations in Pharma Logistics: Though there are Good manufacturing Practices for the manufactures, packaging and storage of active pharmaceutical ingredients (APIs) and medicinal products, similar principles are not yet established for pharmaceutical logistics segment. These should be put in place Despite cold storages having been given infrastructure status and allowed the benefits of Project Imports, ECB funding, Viability Gap funding, tax holidays etc, large investments in the sector are still lacking. Govt needs to look into this. GST implementation needs to be pushed harder : a major factor which would impact the storage locations The cold chain sector demands an immediate investment exceeding USD 5 billion for creating additional storage capacity of 30 million tons and improving availability of refrigerated transport. In 5 years we will be needing investments exceeding USD 10 billion per year in this thi s sector.
ire ector, NH B Dr R K Sharma, D ir Dr Sharma talked about the reefer transport support initiatives by National Horticulture Board. Govt. initiatives - Milestones • High Power Committee Study (1997-99)
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Lunch of first scheme (25% subsidy) in 2000
• NHB, NABARD, Commercial Banks, State Govt. involved
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Cold Chain Task Force constituted (3.5.2007)
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Task Force Report (14.8.2008) - Implementation
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Technical Standard Committee constituted (16.6.2009)
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Implementation of Technical Standards starts 1.4.2010
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Creation of National Centre for Cold Chain Development (27.1.2011)
Financial Assistance • Reefer Van, Trucks, Containers and Specialized Transport Vehicle are eligible as PHM component alone or integrated cold chain projects
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Cost norm Rs 24 lakh/unit of 6 MT capacity; subsidy 40% (Rs. 50 lakh/project) in general area and 55% (Rs 60 lakh/project) in Hilly and Scheduled areas Procedure: DPR, LoI, Inspection, Release 12th plan proposal: Cost norm revised Rs 24 to 26 lakh/unit of 6 MT Capacity @ 35% subsidy for general areas and 50% for hilly & scheduled areas
Trends • Shift towards integrated cold chain. MFPI 94 ICC projects have essential components of reefer van linking farm level infrastructure with retail distribution hubs.
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Modern multi-commodities cold storage (for imported produce) or CA stores have reefer van as desired components.
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Frozen produce stores also linked with reefer van for distribution part.
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Stand above bulk store, basically in general areas, still alone.
Reefer Training- Course items • Skill Development of Cold Storage Operators
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Training Content approved-Standing Committee (29.06.2011) Course Modules: Basics of perishable transport, Refrigerated Transport Practices, Specifications of various components, Pre & Post trip inspections, Field Visit for hands-on-training, Standard operating practices for machinery, Reefer Cargo Losses and how to control them, Carriage Guidelines, Documentation for quality maintenance of produce and Feedback, Safe and Fuel efficient driving – Green Driving and Contingency Management & Feedback and certificate distribution Session. Khalasi and driver both to be trained. Crisis management practices also to be part of training. These trainings are done with participation of NCCD.
He also depicted the experiments conducted by NHB where the protocols for transporting mangoes were developed to successfully transport mangos from Malihabad, UP to Dubai. Technical Standards and Protocol for Transportation of Perishable Food Stuff in India (NHB-CS-Type 05-2011) Basis of Standards European Standards : (ATP Agreement ) Agreement on the international carriage of
perishable foodstuffs foodstuf fs and on the special equipment eq uipment to be used for such su ch carriage.
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Prescribed by UNECE United Nations Economic Commission for Europe & Inland Transport Committee of Economic Commission for Europe. Established at Geneva on 1Sept.1970 entered into force on Agreement and its annexes have been regularly updated.
21 Nov.1976. The
Presently there are 41 contracting parties including Europe, the Russian Federation, United States of America and Uzbekistan.
Standard – – Contents Definitions of Various Equipment
– Testing Procedure
– Measurement & Definitions
– Measurement for Bodybuilder
– Guidelines For Operators
– Transport Temperatures
– Good Loading Practices
– Airflow
Test Facilities – Required • Government to assists setting test lab(s)
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Government/Industry to appoint authorities for certification/testing
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Body builders and refrigerator manufactures shall make type tests of their products in an ATP test station approved by the competent authority
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Transport equipment owners need ATP certificates “conformity with tested sample” (type test)
nve est I nd ndii a Mr. Anupam Srivastava, I nv Talked about his organisation’s offerings and asked the stakeholders to invest in the transportation sector. He informed of the interest by Ministry of commerce and Industry and DIPP in the cold-chain sector.
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Chie ef Ad A dvi so sor, r, NCC N CC D Mr. Pawanexh Kohli, Chi Mr Kohlli referred to each of the eminent players present from the industry, asking them to together make the industry exciting and fulfilling. According to him change can be brought only if there is wholesome participation from all bodies and stakeholders, in not just the tasks but in various innovation and knowledge development aspects. He urged them to come up with specific bottlenecks and targeted recommendations. He reiterated that NCCD is a body of the people and would continue to reach out to the industry for inputs and grass root guidance. He further introduced NCCD, explaining that while formed as an autonomous body, its aims were: 1. To Provide an enabling environment for cold chain sector to gain prominence and to enroll private sector involvement.
2. To establish standards & protocols for supply chain & equipment in harmony with international standards.
3. To undertake and coordinate R&D work in this sector.
4. Similarly, to undertake and coordinate HRD and capacity building.
5. To provide appropriate policy framework as well as launch publicity campaigns.
6. He added that cold chain is best applied holistically across all segments and NCCD will not focus only for agriculture products (though this segment is known to be main driver worldwide).
Benefits to nation accrue in terms of varied benefits like reduced wastage, improved quality and enriched value sharing across total value chain. To fulfill the objectives, NCCD has been mandated to function as the Umbrella body, as a national nodal agency for all cold chain development initiatives. •
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There are by-laws that sanction the NCCD to progress with certain activities. These by-laws are open to review by the governing council and we will welcome suggestions to amend and improve upon these declarations. It includes research & evaluation, promotions, commercial exploitation of technologies, evolve strategies, etc. At the start the committees with industry participation, were established. The Focus areas span across supply chain, skill development, Energy, Standards, Logistics, Specifications and R&D.
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Each Committee could set up additional task forces comprising of experts.
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As per the recent Dr Saumitra Chaudhari’s report, our financial incentives are more capital investment friendly, as opposed to how they can catalyse business that are more revenue expense intensive.
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NCCD shall s hall take lead to explore innovative incentive options to catalyse the flow of business through cold col d chain. Expectations from NCCD were high and need for umbrella body was reinforced by members. Yet, to meet this expectations, clear enunciation of requirements from stakeholders is needed. Suitable amendments to the membership rules had been made in include a wider array of industry and knowledge based participation, enhancing the scope of stakeholder members.
The steps taken are collaborative & partnership based, besides those which were only interactive, such as this conference. •
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In other steps, NCCD has already commenced processes and hopes to obtain support from GoI and World Bank for funding certain specific cold chain related activities. These will include support for participation of IITs in this elite and critical profession. This will add greater credibility to India’s cold chain engineers. NCCD would also a lso promote specific and specialised trainings through the t he IITs and for vocational training courses.
Participation was also needed in developing domain knowledge & cargo handling skills for managing cold chain. In the road map conclave, there was strong demand for a knowledge repository•
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NCCD will arrange and organise orga nise access to established knowledge knowled ge base worldwide and an d locally, We understand that technology application in India may require indigenization to suit our working and infrastructural requirements.
NCCD has already provided various industry and commercial level interactions to the th e sector secto r ranging from subsidized or free participation in events like IITF (International Expo), Conferences and seminars. Going ahead, NCCD would require more involved participation from industry in its member base, committees and in standards & policy recommendations.
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He explained and noted that NCCD is not only for agriculture produce but will develop synergy across all cold chain sectors, in involvement would be through its various members. He introduced this conclave as the first of focused and targeted sessions, to reach out to industry specifically to receive inputs on growth drivers and facilitation help. He exhorted participants to focus on o n bottlenecks and not n ot to treat the conclave as a marketing platform. He reminded in July, a participative think tank conclave was held to include inputs for a Road Map andthat shared the road map.
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The next steps that will build a platform that creates an enabling environment under NCCD were displayed. The steps include diligent mapping of current asset base, communication mechanism and case studies or market studies.
The follow up actions would include:
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Pilot projects.
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A knowledge repository.
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Collaboration with technology providers.
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Capacity building.
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Excellence awards.
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Testing, validating and setting standards.
The aim is to provide a forward catalyst to the cold supply chain.
In summarising: •
•
•
•
•
•
•
•
•
NCCD will participate as nodal agency in policy formulation for cold chain sector with various ministries and autonomous bodies of the government (such as planning commission, finance, HRD, Transport, technology, etc). These activities would be best served with direct inputs from industry. NCCD would seek to sponsor R&D activities activiti es with public and private R R&D &D units. NCCD will bring India’s cold chain into in to universities and in international ternational arena. NCCD will promote businesses and market studies that can serve as examples for others. NCCD aims to promote commerce through India’s Indi a’s cold chain. The cold chain is said to be fragmented and disorganised. The industry has also stated as much about the government initiatives. That it has too many arms promoting varied schemes & policies. NCCD is the government’s forward step to address these concerns. NCCD shall be the one stop agency to forward the industry needs and relate them to national agenda. This will be done through internal and external collaborations. It is also recognised that Cold chain is not solely about building infrastructure but actually is the utilization of a supply line that serves to link perishables from production point poin t to buying market. NCCD will bring focus on this aspect of cold chain as well as packaging and other cold chain specific processes.
In ending he welcomed the continuous inputs and intelligent revisions to road map and invited members to take advantage of and to support NCCD in taking India’s cold chain forward.
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SESSION II: User & Industry Perspective Mr Alok Dubey, D G M , F i eld ldfr fre esh F oods He highlighted the issues faced by the transport sector as following: § § §
§
§
Mis-Match between availability & provision of vehicles. No standardization in sizes of vehicles between various service provider. Limited number Quality service providers (Less number of reefer vehicles vs. requirement). Bad Road Conditions, resulting in High wear & tear & asset depreciation. Poor Network, No Single Service Provider is able to give Pan India service.
Market & Concentration § Fragmented Cold chain operational presence (Extreme North-Apple, South & South west-Pharmaceutical). § Reverse Logistics: Major movement of cold chain is from North-West-South-west routes, and very limited towards East. Any deviation from this main route is expensive affair for growth. § Design: Only few refrigerated van have AC plug-in facility to ensure back-up in case of generators breaks down. Almost none for part load uses.
§
Development: Manufactures).
Limited
number
of
Fabricators
(Available
Reefer
Truck
Knowledge / Awareness § Domain: Cold chain operators have limited knowledge of industry requirements. § Drivers: Lack of knowledge amongst driver makes them immune to cold chain criticality. § Management: Lack of skilled staff at Service Provider’s end with no skill upgradation or cargo specific training. § Stoppage: Frequent delay and stoppage at highways & toll points, harsh for perishables.
Wish List To have plug-in Power Points available at petrol Pump in case of emergencies. Separate lane for reefer vehicle at Toll gates. •
•
• • • • • • • •
Approved Standard Sizes of refrigerated vehicles for different pay loads. Vehicle designed for Part Load requirements. Cargo handling training for operational staff. Better facility should be available at Airports for Export Cargo. Thermal Blanket should be used in transit of cargo from Perishable center to Aircraft. Mumbai Airport Perishable cargo center needed an immediate upgradation. No Permanent Perishable center at a t Bangalore Airport Cargo to be taken out from Perishable center D-1
He stated that the demand is huge but no service providers are available to meet that demand and emphasized on manufacturing standard containers.
Mr Ashok Mirchandani, Mirchandani, M MD D (Asia (A sia Pa Pacifi cificc), Car Car ri er Stating the importance of transportation sector he stated that Carrier has been in the field of manufacturing trucks and the major challenges include: 1. Indian Cold Chain Development
2. Seasonal / Fragmented Loads
3. Capital Cost- duty structure - financing options
4. Sales Tax structure-check posts
5. Lack of reverse loads
6. Undefined end usage of components imported in the country due to which there are huge duties to be paid
What will change in India : 1. Demographics
2. Ministry initiatives : all the ministries are putting in efforts to control the losses and the developemnt of the sector
3. Organised retail : FDI in multi brand retail is a big incentive
4. Streamlined logistics
5. Integrated solutions : there should be manufacturers and service providers who take up the role of providing integrated products so that
He also stated that as a general belief all the developed countries should have 1500 refer trucks per million of population and according to the study the figures for the countries as follows : •
Middle East : 300
•
Latin America : 100-150
•
China : 20
•
India : 5
Which implies that we have a lot of scope to develop.
Dr. Devendra Jain, D i r ect cto or and I nnov nnova ato torr , Pluss P luss Po P olym lyme er s Technology Innovation for Reefer Trucks and Last mile distribution Bottlenecks in cold chain. The bottlenecks can be listed as under: 1. Energy: Energy expenses constitute 30% of the total expenses 2. Product Temperature Different Products require different temperature conditions and the Capacity utilization in Indian cold chain sector 30 – 75 % 3. Last Mile Distribution • Limitations in last mile distribution Roads for access are limited in reach and quality. o
o
Fragmented cold storage means limited source points and longer travel times.
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Small volumes reduces capacity utilization and business participation.
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Vaccines, cold foods less in tier 3-4 regions (30% un-penetrated market)
4. Technology • Technologies Available, but dissemination and adoption limited.
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• Phase Change Material can be used to counter some of the bottlenecks•
•
•
•
•
Limiting Pollution: Noise and emissions. This is because no on site active cooling technology is required. Freeing Capacity: improving payload. This is because the passive cooling PCM forms part of the structure and does not require broken space for air flow inside reefer trucks. Timed redundancy: Thermal Inertia. The PCM can be designed to store thermal energy for predefined periods, which makes risk assessment and mitigation a part of planning. Risk Minimised: Chill injury mitigated. PCM are cooled to within the required temperature parameters. There is limited risk of extreme cool contact with product causing chill chil l damage. Portability – PCM allows to sustain the integrity of cold-chain even under small capacity usage and hence ensures a more risk averse last mile delivery mechanism.
5. Support and focus • These technologies are in use in other industries including temperature control in telecom, clothing and green building. Yet in cold-chain the awareness is negligible. The government should seek out innovative solutions, especially those that can affect India specific needs and create policies and awarenss campaigns to promote these.
xterr I nd ndii a Mr Aman Rekhi, B axte Bottlenecks to Pharma Cold Chain Cold Chain Logistics consist of : Cold Storages •
•
Refrigerated Carriers
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Cold Chain Packaging
•
•
Warehousing processes MIS ( tracking and tractability)
Major Focus by government is towards: Fruit and Vegetables, Chocolates, Ice Cream, Dairy Products, Meat, Poultry & Fish with limited space for Pharmaceuticals Key Bottlenecks •
Cold chain logistics l ogistics infrastructure
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Approach to Collaborative Partnership Innovate new Packaging solutions Re-useable •
•
•
•
Load efficiency
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Cost effective
Develop new logistics solutions To manage small loads by road •
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Improvement of services by Train
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Movement of parcel through air
Cut down transit lead time Product Sensitivity (Knowledge) Change management : Compliance / integrity •
•
•
•
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Product Sensitivity
Training Partner with Transporters / Storage warehouses •
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Develop training manuals
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Handling of products
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Dedicated skill set
Value Parameters Reach (Geographical coverage) •
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Temperature Range Availability (Product Ranges Covered) End to End Solutions (Integrated approach)
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Temperature & Humidity Control ( During Transit)
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•
Transport Modes
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Product Security
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Cost effective solution
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Competence of service provider
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Regulatory Compliances
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Carbon Footprint
Mr Howard Scott, M D , B ig B ear Supp Supply Cha Chain in Mana Manage gem ment Scott, MD He emphasized that the major constraint or bottleneck apart from all the ones mentioned is the availability of manpower. He told that the current salary per month of the drivers range in the following categories: • • •
Low end Drivers: 6500 INR per month Mid way Driver: 8000 INR per month High end Driver: 12-15000 INR per month
Calculating the total worth of a single truck on the road with all the contents is somewhere around 1 Crore and can in no way compared to the 6500 INR being paid to the person who carries it from say Delhi to Mumbai. According to him focus should be on • • •
Driver training Driver best practices Driver Health
The industry has somewhere around 33 million drivers at present and would require 51 million drivers by the end of 2015. He also told that the rate of efficacy of transporting vaccines from Hyderabad to Guwahati is 30% where as for the same values and distances it is 100% in Europe. According to him the best technology tech nology is present pr esent in i n the west but it cannot cann ot be b e simply simpl y picked and dropped d ropped in India, it has to adopted and acclimatized to the Indian conditions.
MD D , Sur Sura akhsh khsha a Tr Tra ans nsp por t Sys Systtems Vargheese, M Mr. V P Vargheese, Refrigerated Trucks: Industry Overview Overview • Refrigerated Trucks for transportation of perishables in India has been in use since early 80’s.
•
•
•
•
The Refrigerated Trucks manufacturing activities are mostly in the un-organized sector and centered in the metros. The First Refrigerated Container built on a Truck Chassis was exhibited in the Telco Pavilion at Auto Expo 1989. The growth of Indian Refrigerated Industry has been very sluggish in the past 20 years. Although reliable data on the average annual production is not available, it could be presumed that this volume vo lume would not have been more m ore than 3000Nos. per annum. an num.
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•
•
•
•
•
•
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Insulated Trucks (without Reefer Plants) are mostly used for transportation of Fresh fish with crushed ice and Milk & Milk Products. The building of Insulated Trucks are mostly concentrated near the coastal towns and nearer to the traditional fishing harbours. Traditionally GI Sheets/Aluminium/Wood/Mild Steel are the materials used for Body Construction. The Insulation materials used are Expanded Polystyrene (Thermocol), Glass wool, Cork and Wood and Plywood. Refrigerated Truck Industry has seen rapid growth in the recent years with more volumes being built. The estimated volume of heavy & medium size Reefer Trucks built over the past few years has doubled or even trebled and quality Reefer Trucks are in demand. The financial benefits offered by the Govt. in the form of concessional excise duty , is yet to reach the actual users.
Constraints & Bottlenecks in Reefer Reefer Truck Truck building Central Motor Vehicles Rules 1989 - Related • Refrigerated Trucks have a peculiar requirement of accommodating the Reefer Units
above the cabin. Traditionally Cabins are of fixed type and locally fabricated and hence flexibility existed. • Now all the Chassis manufacturers have launched factory built tilting cabins and it needs more vertical space for cabin tilting.
•
•
•
The Overall height specified in the CMVR 1989 is based on the types of commercial vehicles available at that point of time. The technology changes taken place in the past 25years needs to be factored and rules amended suitably. Multi Axle rigid body trucks replaced the single rear axle trucks as the popular transport vehicle for the long & medium haulage requirements The height of the Chassis longitudinal frame from the ground in unladen condition in
Single rear axle and Multi Rear axle trucks are shown in the table below:Chassis Frame Height from GL LPT 1613 (TATA) 945mm LPT 2518 (TATA) 1070mm •
•
Additionally the multi rear axle vehicle has a bell crank mechanism at the rear and as such the Reefer Container needs to be mounted above this mechanism. (Height of the Mechanism -150mm) The Overall height of various types commercial vehicles would have been decided based on the Height of ISO series 1 Freight Containers and the Chassis height of Rigid body trucks and trailors.
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•
•
The Table below gives the External Dimensions of ISO series 1 Freight Containers used in the International Trade. Container Size External Width External Height 20ft x 8ft x 8.5ft 2438mm 2591mm 40ft x 8ft x8.5ft
2438mm
2591mm
40ft x8ft x 9.5ft (Hi Cube)
2438mm
2896mm
The Table below gives the maximum height permitted for motor vehicles as per Rule 93, Clause No.4 of the CMVR 1989. Description Max. Height Motor vehicles other than double decked vehicles 3.80 M ii.
Double Decked Motor Vehicles
Laden Trailers Carrying ISO series 1 Freight Containers •
4.75 M 4.20 M
Considering the peculiar construction of Reefer Containers on Multi Axle trucks and also the height of ISO Containers, the CMVR Rules require amendment as under Description Max. Height Single Rear Axle Motor vehicles other than double decked vehicles 3.80 M ii.
Multi Rear Axle Motor vehicles other than double decked vehicles
4.00 M
ii.
Double Decked Motor Vehicles
4.75 M
Laden Trailers Carrying ISO series 1 Freight Containers
4.20 M
Insulated Trucks
•
•
Insulated Trucks are also part of the Cold Chain in India and these trucks are used for transportation of Chilled Products. These trucks are mostly used for transportation of Fresh fish with Ice (2 to3 °C) & Chilled Milk & Milk Products (3to 4 °C) and similar products.
•
•
•
The volume of Insulated Trucks built in India per annum is quite substantial and even more than the Refrigerated Trucks Since insulated trucks play a vital role in the cold chain, these trucks also to be treated at par with Refrigerated trucks. “Refrigerated Motor Vehicles” and “Insulated Motor Vehicles” to be brought under the same tariff head and treated equally.
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SESSION III: Provider Perspective Ms P Alli Rani, CEO CEO,, FHE L She talked about the achievements of Concor stating that CONCOR operates 63 terminals; is coming up with 10 logistic parks; runs 2 full trains in a week and is equipped to handle any demand from the point of view of the service provider and does not face any challenge. The major business comes from the EXIM sector, meat, pharma and only limited amount of Fruits and vegetables. Coming to the constraints from the point of view of the customer there exist a number of issues which can be divided as follows: •
Demand side constraints
•
Single direction of traffic with no balanced movement Issues of scale where small size of consignments cant be shipped and are not cost effective
•
Supply side constraints
•
•
•
Lack of availability of adaptable technology which can be adopted to the nature of the produce to be transported transpo rted Lack of Presence of single window service provider offering a package of services
Also the aim should be to benefit the farmers at large.
loyyd I nsula nsulatio tions ns Mr. K.K. Mitra, V P, L lo Bottle Necks •
Lack of customer understanding / knowledge
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Lack of Specification knowledge
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No technical Standard Specifications like NHB Technical Standard for Cold Store
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Construction No construction documents docume nts guidelines
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Different PUF insulation properties
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Adequate PUF thickness for Energy Savings
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Proper fabrication drawings with jointing details
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PUF panels different than conventional Transportation panels
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PUF category different than normal cavity wall pouring in truck body building
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Camlocks in addition to tongue & groove jointing of panels
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Proper insulated door specifications
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Chequered plate flooring finish Proper estimation
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Testing of panels
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Excise duty on PUF Panels 12.36%
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Excise duty on PUF Chemical 12.36%
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Import duty on PUF Chemical (MDI)14.4%
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Import duty on GRP sheet 10%
Mr Amitabha Chaudhary, M D , A PL I nd ndiaLi iaLinx nx Chaudhary, MD He took his agenda as constraints faced by the railways for transporting perishables. He revealed that transport of F &V contributes to 0.02% of the total cargo being transported by railways and negligible amount in terms of the revenues earned. The only produce transported is onion, potato, banana, orange and mango which are seasonal in nature. Given these facts, railways consider fruits and vegetables transport to be comparatively unproductive in monetary terms. The constraints on the other hand faced by the customer are as follows: 1. Scale: small sizes cant be transported and leads to increase in cost 2. Lack of availability of modes of transport at the point of origin 3. This leads to the introduction of several layers of middlemen which further ads to the cost 4. No loading loadin g and unloading in between bet ween the transit so produce prod uce should shou ld be able to survive the time taken in the transit.
Intermodal agencies have worked as a comparatively better option which combines railways and stationary storage at point of produce and consumption. The role of a nodal body should be resolve the issue of scale, arrange for food parks and primary storage, incite service s ervice providers to offer o ffer integrated solutions solut ions and services. He stressed on the policies and steps which benefit the two ends of the cold chain-farmers in realizing a better price for their produce and investor to get a decent ROI on his investment.
S.K. Sarkar, C r ys ysttal L ogi gist stii cs LSP perspective - status & constraints in reefer transportation Constraints in reefer vehicle: Imposition of additional AC tax on reefer vehicles in certain states entailing additional • tax burden and clarity.
•
•
High toll expenses enroute. Undue holding at check post with temperature sensitive cargo causing extra fuel consumption.
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Lack of trained manpower and driver shortages.
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Vehicle insurance does not cover loss due to AC failure in vehicle.
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Levying of higher road tax for reefer vehicles under commercial vehicle.
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•
No subsidy from govt. For promoting pro moting cold chain development. dev elopment. High penalty in different states in absence of original documents in the vehicles.
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No tax benefit – income tax. tax .
Mr. Siddharth Mishra, CE O, HLM HLM Introduction to HLM India Pvt. Ltd. HLM India Pvt. Ltd. is a Joint Venture between HLM Holland BV and TSI •
•
•
•
•
Almost 40% of India’s food and perishable goods produce is wasted due to inadequate cold chain infrastructure for storage and transportation. The Indian government has recognized this and has announced several subsidized and promotion schemes for cold chain solutions for reefer trucks and trailers Currently the Indian reefer truck market is dominated by small, local unorganized manufacturers with outdated technology The Joint Venture is focusing on addressing the needs of the cold chain industry for this rapidly growing Indian market Explained Insulation and construction technology of his company and the advantages of sourcing trucks bodies from HLM.
SESSION IV: Technology & Strategy Perspective Mr Aman Khanna, A Khanna, Ass sso ocia ciatte D ir ect cto or, E rnst and Y oung In the Fresh & Perishable Food supply Chain Driving down the wastage is the main key. Issue that causes more damages than value adds is the lack of supply chain:Improper post harvest handling storage. •
•
Improper harvesting processing.
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Improper packaging, Poor Handling.
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Multiple players in supply chain.
•
•
No single owner being responsible re sponsible Absence of value added services .For e.g.: Use of crates.
T he L oss iiss a abo bout ut 50,000 cr cro or e unde underr 5000 se serr vice vi ce provide providerr s. Extracting this loss/wastage and distributing it to the service providers (in form of margins).This is the main objective of perishable Food supply chain. Process Food Supply Chain
Process food includes Chocolates, Confectionaries, milk products and Dairy Products Maximizing the Efficiency is the main Key. • • •
Not Much Wastage. Just efficient distribution doesn’t works. Small godowns all over the place.
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Driving down wastage in the fresh food supply chain basically includes these three issues: 1. Structural Issues 2. Human Resources issues 3. Individual Enterprise.
Structural Issues can be handled through: Greater integration along the chain. •
Greater scale in each segment of chain. Single ownership ensures minimal losses. Must not change too many hands.
• • •
Human resources Issues can be controlled by:Encouragement of staff through training. Knowledgeable manpower. Temperature Control. •
•
•
Initiatives that can be taken to support human Resource Challenge:Developing Institution for upgrading the skills of manpower. Certification in grading program. •
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Creating good manpower.
•
Enterprise Level Efficiency: Service provider need to invest. Spreading Knowledge. Less hands in suppy. •
•
•
SUMMARY Refrigerated Transport is better linked. Support of government should be in reducing the wastage. Driving down wastage in fresh food and perishable food supply chain. Improving efficiency in process food supply chain.
• • • •
Mr. Purvin Patel, C OO/B OO/Busi usine ness ss He H ead, R adha K r i shna F oodla land nd 5 Key Factors: 1. Infrastructure 2. People/Manpower 3. System 4. Technology system 5. Appliance
5 Areas that needs to be efficient: The Assets The infrastructure associated with supply chain. •
• •
Drivers and delivery boys should bring the stock to the store in most orderly manner. In Transit Issue (i) Bribing the cops.
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(ii) Harassment such as clearance problems. (iii)Taxation issues. Network Effect (i) Storing in well maintained condition. (ii) Not many hands in transferring transferri ng from farm to retail. (iii)Mishandling should be controlled.
•
Conclusion: 1. Get the basics right. 2. No wastage. 3. Delivering Right. 4. Efficiency in delivering.
Gorti, Sa Sarr adir o E Se Service rvice Mr. B T Gorti, Food Safety Concerns in Reefer Containers - Common practices and challenges and emerging trends risk for food safety concerns Issues: • • •
Capacity Problems Knowledge drivers shortages, and Customer demands are the food transportation industry’s top challenges
Drivers Role:
Driver shortages and capacity problems may result in a lack of driver education in and adherence to proper procedures for the safe transportation of food Backhauling
Food safety is the latest emerging logistics challenge Engaging in backhauling (transporting a wrong load in empty truck on a return trip) Backhauling increases the risk for cross- Contamination if potentially hazardous foods or other items are carried in succession without proper sanitation •
•
Manufacturers
Manufacturers who outsource their transportation needs relinquish control of safety of their product as it moves from the t he processing facility facilit y to the retailer. • •
•
•
Majority of supply chain operators outsource the transportation to 3rd party logistic Good communication and management systems are required to maintain product integrity throughout the distribution chain. The other concerns are tampering and sabotage, temperature abuse, and cross contamination While there is limited data on food safety failures that are directly attributable to transportation practices, some industry experience suggests that such incidents may be widely underreported
Problems at Distribution Centers Temperature management is not a core competency DC management has limited experience handling temperature sensitive product •
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•
• •
Lack of understanding on the interconnectivity of product temperature management & food quality or safety Inconsistent compliance on monitoring temperatures. Make random changes without considering the problem from a holistic perspective.
Need to define, implement, implement , enforce, and comply to stan standard dard processes for: –Trailer loading and unloading unl oading –Temperature settings and an d monitoring throughout throu ghout supply chain
Solutions for effective preventive controls for food safety concerns Stakeholder, Consumers, Channel partners, Governmental regulatory staff need extensive awareness of risk and risk management for food safety during cold chain transportation and training on critical food safety concerns. Awareness and training program should reaches to mass in villages where basic agriculture produces are produces. •
•
•
•
•
•
•
Standards and guidelines of food safety across the reefer transportation. Availability of expertise on development, implementation and monitoring of protocols for reefer container operations across business country covering end to end solution for cold chain business. Government involvement in creating a mechanism for regular maintenance of food safety audit and surveillance system. Management commitment from business owner and all other stakeholders for sincere and serious development, implementation and monitoring of food safety framework from farm to fork. Protocols to be develop and ensure to implement for food safety framework for continuous improvement through rigorous food safety surveillance system
Government support for: Solution to make fast track corridor •
•
•
•
Solution to provide the infrastructure facility to meet the global and demanding food safety standards. Solution to link up the financial support with development and implementation of food safety framework. Further linking up financial support to monitoring and continuous improvement of food safety frame work.
Government fast track solutions Solutions are to allow easy imports of Monitoring equipment for use of appropriate transportation vehicles (i.e., dedicated • vehicles when necessary)
•
•
Acquisition of appropriate temperature recording system and tracking system by adapting use of tracking technologies (i.e. satellite or radio frequency identification) technology. Technical knowhow for proper monitoring of infrastructure, food safety and food security surveillance system.
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Adoption of packing and operation procedure to distribute food containers safely across the food chain through reefer containers.
•
Cosima, M MD D , L amilux I nd ndia ia Ms Cosima, During her presentation she explained the benefit of GRP over steel and urged NCCD to take up the issue of import duty on the GRP sheets. Explained the following benefits from GRP: GRP – Glass Reinforced Polymer Low weight - reducing tare weight, improving load capacity and reducing fuel o consumption.
•
o
Elasticity – allowing better road dynamic stress handling.
o
Water resistance – longer life and better appearance and hygiene.
o o
High insulation (0.2 W) – reduced thermal stress on cargo and energy usage. Non corrosive – longer longe r life and hygienic container. cont ainer.
GRP is currently imported into India and does not benefit from reduced customs duty or exemptions provided to cold-chain equipment. She said she has written frequently to authorities to consider the benefits and to facilitate this new technology as cold-chain beneficial import.
Chopra, MD F i eld F r esh V egfr u Mr Anil Chopra, MD Food logistics – a case for optimization n Elements of logistics are remarkably expensive, if not controlled effectively.
n
Holding stock or inventory in warehouses just in case it is needed is a highly costly
n
activity. The stock itself is expensive and might not sell or could become obsolete, or in the case of food, ”wastage”.
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n
Warehouses generally are expensive to build and maintain as well as operate.
n
Vehicles to transport goods between warehouses and stores are major costs, both in terms of capital and running costs, with drivers’ wages and ever higher fuel costs.
n
There is thus an imperative to making sure that logistics is carried out effectively and efficiently.
Introducing Reverse Logistics
n
Logistics is “the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements”.
n
Reverse logistics includes all of the activities that are mentioned in the definition above with a difference that reverse logistics encompasses all of these activities as they operate in reverse.
n
Therefore, reverse logistics is: “The process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal ”
The arrows are transport vehicles and packaging materials – including cold containers, wagons, trucks, pallets, crates, boxes etc… etc… Introducing Packaging Logistics and Pools n Dominating assumption is still that packaging is a part of logistics, or even a part of warehousing activities
n
Packaging logistics is “The process of planning, implementing and controlling the coordinated packaging system of preparing goods for safe, efficient and effective handling, transport, distribution, distributi on, storage, retailing, consumption and recovery, reuse or disposal and related information combined with maximizing consumer value, sales and hence profit.”
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Pool systems for returnable transport packaging are a sub-area within packaging logistics
What are Package Pools?
The first type of pool system is a transfer system;
•
the sender owns his own need of returnable transport packaging and exchange one-by-one with its suppliers and customers.
o
The second type of pool system is a depot system where:
•
an agency owns the packaging and is responsible for package hygiene
o o
The agency has two ways of operating: either a book system where the senders continuously provide the agency with accurate data on the location of the packaging,
o
or a deposit system where a deposit follows the packaging all the way until the agency pays back the deposit when empty packaging is returned.
The third option is a pool system without any return logistics, where:
•
o o
the sender rents r ents the packaging from an agency takes full responsibility for all administration, handling, cleaning, maintenance etc. until surplus or worn-out packaging is sent back to the agency by the sender.
Way forward §
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§
§
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§
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Sell the vision to all stakeholders begin with Govt (NHB / NHM, MOA) Study / Plan Perform a large-scale pilot test, including project financing Design an administrative concept for the pool system Design a functional standard for crates, pallets etc. Develop a standardize returnable tray, boxes and pallets for fresh produce Develop a specification of requirements to be placed on a business-wide, nationwide returnable packaging material, followed by a tender process Design an administrative concept for the pool system, form a part-owned pool company Roll out – perhaps on a PPP mode
Mr. J M Gupta, A PC Poly Polyco coa at Gupta, APC COLD CHAIN The cold chain involves the transportation of temperature sensitive products along a supply chain through throu gh thermal and refrigerated refrige rated packaging packa ging methods and the logistical planning to protect the integrity integrit y of these shipments. INFLUENCE ON COLD CHAIN DEVELOPMENT n GLOBALISATION has made relative world much smaller
n
For transporting perishable products globally, PHYSICAL SEPERATION OF GLOBAL REGIONS needs complex transport operations involved.
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COLD CHAIN BOTTLENECKS DAMAGE TO GOODS due to break of chain n
By shocks during transportation
n
undue temperature variations
n
Time delay may have negative consequences due to chemical reactions and quality may degrade
EMERGENCE OF COLD CHAIN & ITS HISTORY n The refrigerated movement of temp. sensitive goods in practice dates back 1797 when British fishermen used natural ice to preserve their fish stock piles while at sea.
n
In the late 1870s and early 1880s, France was starting to receive large shipments of frozen meat and mutton carcasses from South America, while Great Britain imported frozen beef from Australia and pork and other meat from New Zealand.
TEMPERATURE CONTROLLED ENVIRONMENT: TODAY’S SCENARIO The success of industries that rely on the cold chain n Knowing how to ship a product with temperature control adapted to the shipping circumstances.
n
Different products require different temperature level maintenance to ensure their integrity throughout the travel process. Most common temperature standards are :n
"banana" (13 °C),
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"chill" (2 °C),
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"frozen" (-18 °C) and
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"deep frozen" (-29 °C).
INTEGRITY OF SHIPMENT th is temperature is vital to insure and optimal shelf life. n Staying within this Divergence can result in irrevocable and expensive damage; a product can simply lose any market or useful value.
IMPACT OF TECHNOLOGY ON REEFER TRANSPORTATION SYSTEM DESIGN OVER EXTENDED TIME (30-45 DAYS) Type of container and refrigeration refrigeration method Is essential to ensure that a shipment will remain within a temperature range for an extended period of time comes down largely to the type of container that is used and the refrigeration method. Factors such as n duration of transit,
n
the size of the shipment and
n
the ambient or outside temperatures experienced
n
type of packaging required.
Construction of container n Can range from small insulated boxes that require dry ice or gel packs, rolling containers,
53 footer reefer which has its own powered refrigeration unit
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TEMPERATURE CONTROLLED TECHNOLOGY-1 The major cold chain technologies
ENVIRONMENT:
COOLING
SOURCE
n
DRY ICE: Solid carbon dioxide, is about -80°C and is capable of keeping a shipment frozen for an extended period of time. It is particularly used for the shipping of pharmaceuticals, dangerous goods and foodstuffs. Dry ice does not melt, instead it sublimates when it comes in contact with air.
n
LOW TEMP ICE SLURRY: Use as secondary refrigerant. A mixture of chilled water and food grade polypropylene
n
GEL PACKS: Large shares of pharmaceutical and medicinal shipments are stored at 2 and 8°C classified as chilled products. Method to provide this temperature is to use gel packs containing phase changing substances which can go from solid to liquid and vice versa to control an environment. Can either start off in a frozen or refrigerated state.
n
EUTECTIC PLATES: The principle is similar to gel packs. Instead, plates are filled with a liquid and can be reused many times.
TEMPERATURE CONTROLLED TECHNOLOGY -2
ENVIRONMENT:
COOLING
SOURCE
n
LIQUID NITROGEN: An especially cold substance, of about -196°C, used to keep packages frozen over a long period of time. Mainly Mainl y used to transport trans port biological bio logical cargo such as tissues and organs.
n
QUILTS: Insulated pieces that are placed over or around freight to act as buffer in temperature variations and to maintain the temperature relatively constant. Thus, frozen freight will remain frozen for a longer time period. Can also be used to keep temperature sensitive freight at room temperature while outside conditions can substantially vary (e.g. during the summer or the winter).
n
REEFERS: Generic name for a temperature controlled container, which can be a van, small truck, a semi or a standard ISO container. These containers, which are insulated, are specially designed to allow temperature controlled air circulation maintained by an attached and independent refrigeration plant. The term increasingly apply to refrigerated forty foot ISO containers. Technological advances are making them much less prone to defects.
REFRIGERATED CONTAINERS: IMPACT OF INSULATION Impact Of Insulation And Refrigeration System On Container Cost n Refrigerated containers (called "reefers") represent a specific category that account for a growing share of the refrigerated cargo being transported around the world. The cost of reefer containers may vary from $5,000 to $30,000. n Cost Difference Attributed to n insulation and
n
n
n
the refrigeration unit All reefers are painted white to increase the albedo (share of the incident light being reflected);
EFFECT OF HIGH ALBEDO n high albedo implies less solar energy absorbed by the surface) with the dominant size being 40 high-cube footers fo oters (45R1 being th thee size and type code).
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n
For instance a low albedo container can have its internal temperature increase to 50 °C when the external temperature reaches 25 °C on a sunny day while a high albedo container see its internal temperature increase to only 38 °C under the same conditions.
n
The refrigeration unit of a reefer requires an electric power source during transportation and at a container yard.
n
It is important to underline that the refrigeration units are designed to maintain the temperature within a prefixed range, not to cool it down.
REFRIGERATED CONTAINERS: TODAY’S SCENARIO Warehousing Loading and Unloading Facilities Before being loaded into a reefer, which requires specialized warehousing and loading /unloading facilities. A NEW GENERATION OF REEFERS is coming online, which are equipped with an array of sensors monitoring effectively the temperature and shutting the cooling plant when unnecessary. This enables to improve the reliability of temperature control and well as extend the autonomy of the reefer. The Setting and Organization Of Cold Chains n
Shipment Integrity: Moving a shipment across the supply chain without suffering
any setbacks or temperature anomalies requires the establishment of aconcerns comprehensive logistical process the maintain the shipment . This process several integrity phases ranging from the preparation of the shipments to final verification of the integrity of the shipment at the delivery point: n
Shipment preparation: When a temperature sensitive product is being moved, it is vital to first assess its characteristics. A key issue concerns the temperature conditioning of the shipment, which should be already at the desired temperature. Cold chain devices are commonly designed to keep a temperature constant, but not to bring a shipment s hipment to this temperature, so they would be unable to perform adequately if a shipment is not prepared and conditioned. Other concerns include the destination of the shipment and the weather conditions for those regions, such as if the shipment will be exposed to extreme cold or heat along the transport route.
Modal choice key factors.
• • • •
Often includes a set of intermediary locations, the size and weight of the shipment, required exterior temperature environment and time restrictions of the product.
Custom procedures: If the freight crosses boundaries, custom procedures can become very important, since cold chain products tend to be time sensitive and more subject to inspection than regular freight (e.g. produce, pharmaceuticals and biological samples). The difficulty of this task differs depending on the nation (or economic bloc) and the gateway since there are variations in procedures and delays. The "Last Mile": The last stage is the actual delivery of the shipment to its destination, which in logistics is often known as the “last mile”. Key considerations when arranging a final delivery concern not only the destination, but the timing.
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Integrity and quality assurance: After the shipment has been delivered, any temperature recording devices or known temperature anomalies must be recorded and made known. This is the step of the logistical process that creates trust and accountability, particularly if liability for a damaged shipment is incurred. If problems or anomalies that compromise a shipment do occur, an effort must be made to identify the source and find corrective actions. FOOD TRANSPORTATION Innovation And Preservation Method: There is a variety of methods for the transport of food products with the t he banana accounting for the world's worl d's most mo st significant si gnificant commodity transported in the food cold chain with 20% of all seaborne reefers trade. Land, sea and air modes all have different structures for keeping food fresh throughout the transport chain. Packaging: Innovations in packaging, fruit and vegetable coatings, bioengineering (controlled ripening), and other techniques reducing the deterioration of food products have helped shippers extend the reach of perishable products. For food products such as fruits and vegetables, time has a direct impact on their shelf life and therefore on the potential revenue a consignment may generate. Concomitantly, new transport technologies have permitted the shipment of perishable products over longer distances. Improved Roads And Intermodal Connections: For instance, improved roads and intermodal connections along the African coast reduced food transport time to European
markets from 10 days to 4 days. Transport Mode: Certain domestic or transnational supply chains may only require one transportation mode, but many times ground shipments are one link in a combination of transport modes. This makes intermodal transfer critical for the cold chain. Intermodal Shipments: Typically use either 20 or 40 footers refrigerated containers that are capable of holding up to 26 tons of food. The container makes loading and unloading periods shorter and less susceptible to experiencing damage. The environments in these containers are currently controlled electronically by either plugging into a generator or power source on the ship or truck, but early food shipments would cycle air from stores of wet or dry ice to keep the food refrigerated. CONSOLIDATION OF COLD STORAGE FACILITIES TO CAPTURE NEW OPPORTUNITIES. n Air Travel: Another efficient mode for transporting foodstuffs is air travel. While this is a preferred form of travel for highly perishable and valuable goods due to its ability to move much faster over longer distances, it does lack the environment control and transfer ease of the ground and sea transports. Also, during the flight the cargo is stored in a 15°C – 20°C environment, but close to 80% of the time the package is exposed to exterior weather while waiting to be loaded onto the plane or being moved to and from the airfield.
n
Uncompromising Strategy And Regulations: This is a troubling consideration when importance is placed on quality and freshness. More uncompromising strategies and regulations will have to be embraced and enacted.
n
Global Seasonal Variations And Efficiency And Reliability Of Temperature Controlled Transportation: has reached a point which allows the food industry to take advantage of global seasonable variations, meaning that during the winter the southern hemisphere can export perishable goods to the northern hemisphere while an opposite trade, generally of smaller scale, takes place during the summer. Countries
4 3 e g a P
such as Chile have substantially benefited from this and have developed an active agricultural and food transformation industry mainly servicing the North American market during the winter, but also with several niche markets such as wine. n
Floriculture Industry: A similar issue concerns some African countries such as Kenya that have developed a fresh produce and flower industries catering the European market.
n
The fast food industry is also an active user of cold chain logistics as every outlet can be considered as a factory. fact ory.
VIABILITY ISSUES OF OPERATING COST OF REFRIGERATED TRANSPORT TRAN SPORT FUEL CONSUMPTION ANALYSIS OF REFRIGERATED TRANSPORT v
v
v
v
v
v
v
RATED CAPACITY OF TRUCK 14-15 tons VEHICLE SIZE L=25 ft, W=16 ft, H=8-9 ft GROSS VOLUME OF STORAGE CAPACITY 25x16x8 = 3200 cu. Ft PER TON CUBIC FT 3200/15 tons = 213 cft/ton AVG. RUNNING OF TRANSPORT /24 HRS. DURING TRANSIT 16 Hours FUEL CONSUMPTION IN LTRS. 2.5X16 = 40 Ltrs COST OF DIESEL 40 ltrs x Rs. 50 = Rs. 2000
v v
AVG. DISTANCE COVERED FROM BOMBAY TO DELHI 16 km AVG. TIME TAKEN 3 Days v TOTAL COST OF DIESEL USED Rs. 2000x3 = Rs. 6000 v COST OF DISEL/TON PRODUCT KEPT 6000/15 = Rs. 400 v OTHER OHS ASSUMING 100% COST/TON OF VEHICLE:Rs. 800/- per ton v REFRIGERATED TRANSPORTATION COST PER KG OF PRODUCT Rs. 0.8 per kg v REFRIGERATED STORAGE COST OF TYPICAL SINGLE COMMODITY FOR FULL SEASON PER KG 6-8 MONTHS (fruits & vegetables) @ Rs. 80/- per bag of 50 kg 1.6/- per kg
!!!"!!! EVENT MANAGERS
5 3 e g a P
RTC Attendees
No. 1 2 3 4 5 6 7 8
Title Attendees Names Mr Vivek Sharma Mr Lalit Kumar Mr Sanjay Kumar Mr Neeraj Aggarwal Mr Vijay Ghotia Mr Jag Mohan Gupta asho Amitabha Chaudhari Mr Jalaj Gupta
Designation COO MD Director Sr. Engineer Sales
Confirmed 8-Feb-2013 7-Feb-2013 11-Feb-2013 7-Feb-2013 8-Feb-2013 DIRECTOR 11-Feb-2013 MD 28-Feb-2013 General Manager - Mar 25-Feb-2013
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54
Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Ms Mr Mr Mr Mr Mr Mr Mr Mr Mr Ms Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr
Chetan Kumria Aman Rekhi Isaac Emmanuel Sanjeev Saini Rohit Agarwal Howard James-Scott Harvinder Bhatia Su Sujo joy y Ch Chat atte terj rje ee Ashok Mir ircchand andani Pankaj Mehta Tarun Malhotra Sarf Sarfra razz Ah Ahma mad d Kh Khan an Ajay Khosla P. Alli Rani C Co oncor C Co oncor Ramesh Paranjepy Pramod Jain Sugato Chandra Rajesh Agarwal Harish Padnabhan YogeshNigam TonmoyPurkaystha Soumya KHANNA Raj Saxena Aman Khanna Ankur Goel Anurag Gupta Alok Dubey Anil Chopra Gagan Sinah Manish Agarwal Patram Choudhary Bhaskar Sen Ch.B.S. Subrahmanyam Vinod Desai Vikas Jain Mr. Manoj K. Varghese Siddharth Mishra Marcos Bosun Kim Shailendra Singh Rahul Mathur Amit Kumar Singh Ashok Gupta Aradhya Gupta Ashok Gupta
Director, Supply Chain National Head - SCM Business Head
55 56 57 58 59 60
Mr Mr Ms Ms Mr Mr
Rajender Singh Manish Kaushik Jaya Singh Cosima Paul KK.Mitra Mohit Khanna
Director - Corporate Aff Managing Director Management Trainne MD
14-Feb-2013 14-Feb-2013 7-Feb-2013 13-Feb-2013 26-Feb-2013 6-Feb-2013 6-Feb-2013 6-F 6-Feb eb--20 2013 13 7-Feb-201 2013 7-Feb-2013 7-Feb7-Feb-2013 2013 25-F 25-Feb eb-2 -201 013 3 5-Feb-2013 18-Feb-2013 18-Feb-2013 18-Feb-2013 8-Feb-2013 9-Feb-2013 20-Feb-2013 19-Feb-2013 19-Feb-2013 22-Feb-2013 22-Feb-2013 19-Feb-2013 25-Feb-2013 18-Feb-2013 28-Feb-2013 28-Feb-2013 9-Feb-2013 21-Feb-2013 26-Feb-2013 20-Feb-2013 20-Feb-2013 18-Feb-2013 11-Feb-2013 11-Feb-2013 11-Feb-2013 25-Feb-2013 25-Feb-2013 22-Feb-2013 20-Feb-2013 20-Feb-2013 8-Feb-2013 22-Feb-2013 22-Feb-2013 6-Feb-2013
Faculty Jindal Mectec Pvt. Ltd Sr. Manager- Marketing MD Vice President Director
20-Feb-2013 20-Feb-2013 2 22 2-Feb-2013 11-Feb-2013 6-Feb-2013 20-Feb-2013
Director Owner / MD G.M.Sales A.G A.G.M .M.S .Sal ales es (N (Nor orth th & E Managin aging g Direc rector, Asia Asst. Director & Busines National Business Devel Vi Vice ce Pr Pres esid iden entt-St Stra rate tegy gy BD Head Director
Director Director Principal CEO, Director Assistant General Mana Deputy Manager: TSO Asst. Manager Deputy Head, Agricultu
Director, Supply C Associate Director VICE PRESIDENT Associate DGM - Supply Chain Managing Director SECRATARY GENERAL Promoter CEO CEO&MD Managing Director Director Promoter National Head - Sales a CEO Chief Representative In
Company Adani Logistics Ltd Airtech cooling process pvt ltd. Airtech cooling process pvt ltd. Airtech cooling process pvt ltd. All India Frozen Food Carrier APC POLYCOAT INDIA PVT. LTD. APL IndialinxPvt. Ltd. Ashok Leyland Limited Baxter (India) Pvt Ltd.
Baxter (India) Pvt Ltd. Bayer MaterialScience Pvt Ltd
BAYER MATERIALSCIENCE MATERIALSCIENCE PVT LTD. Bhoruka Roadlines Ltd
BigBear Supply Chain Management Pvt Ltd Bitzer India Bitz Bitze er Indi India a Carr arrier ier Trans ansicold India Carrier Transicold India Carrier Carrier Tra Transi nsicol cold d Indi India a Cold Co ldEX EX ColdEX Concor India Concor India Concor India Consultant Consultant CrossTree Crystal Logistics Daimler India Commercial Danfoss Industries Pvt Ltd. Danfoss Industries Pvt Ltd. Embassy of France in India
Enterpriseforce Ernst & young ERNST & YOUNG PRIVATE LIMITED ERNST & YOUNG PRIVATE LIMITED Field Fresh Foods Field Fresh Vegfru Pvt Ltd & Competent AgriSolutions Pvt Ltd FOUNDATION EMDA SOUTHASIA Gati Kausar Ltd. Gati Kausar Ltd. GeoVision Technologies Pvt. Ltd. GREEN INFRASTRUCTURE INFRASTRUCTURE PROJECTS PVT. LTD. GREEN INFRASTRUCTURE INFRASTRUCTURE PROJECTS PVT. LTD. H L JAIN ICE & COLD STORAGE PVT. LTD. HLM India Pvt. Ltd HLM India Pvt. Ltd HWA Sung T&T Co Ltd. Icetrail Logistics Pvt. Ltd Icetrail Logistics Pvt. Ltd Ingersoll - Rand International India Limited IRC (INDIA) LIMITED IRC (INDIA) LIMITED
IRCL India ISHRAE Institute of Excellence Jindal Mectec Pvt. Ltd Jindal Mectec Pvt. Ltd. LAMILUX INDIA PVT. LTD.
LLOYD INSULATIONS INDIA LIMITED LLOYD INSULATIONS INDIA LIMITED
61
Mr
Deepak Rastogi
Sr.Gen.Manager
8-Feb-2013 LLOYD INSULATIONS INDIA LIMITED
RTC Attendees
No. 62 63 64 65 66 67 68 69 70
Title Mr Mr Mr Mr. Mr Mr Mr Mr Mr
Attendees Names Ritwik Sinha Pradeep Wadhwa Seshadri N Mohit Tanwar Arulanandam Ayyasamy Harsh Mittal Vaibhav Panwar Anil Arora Jatin Sharma
Designation Confirmed Editor 18-Feb-2013 General Manager - SCM 11-Feb-2013 Manager - National Dist 11-Feb-2013 DGM - Supply Chain 22-Feb-2013 Head O Op perations 5-Feb-2013 Director /CEO 15-Feb-2013 Manager – Logistics Pro 22-Feb-2013 MD 28-Feb-2013 General Manager-Strat 28-Feb-2013
71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95
Ms Mr Mr Mr Mr Dr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr Mr. Ms Mr Mr Mr Mr
Manisha Mehani Vinit Anil Ahaley Rohit Ahale ley y Dr. Ranjeet Mehta Varun Bhardwaj Devendra Jain Purvin Patel K. VIJAY SINGH Suresh Sehgal C.S.Rao- Director B T Gorti Pravesh Sharma Amit Dogra Rohit Gupta V P Vargheese V.D. Sasindran Nair Mr. Mr. R. R.S. S. Bedi Bedi Abdul Gafoor B.S.Arora Ved Prakash Krut rutti tika ka DHADE Ramesh Kumar Balvir Kumar Jain Sanjeev Saini Sajal Mittra
Manager-Business Deve 28-Feb-2013 18-Feb-2013 1919-Feb-20 201 13 Senior Secretary 8-Feb-2013 Asst. Secretary 8-Feb-2013 Director & Innovator 26-Feb-2013 COO / Business Head 20-Feb-2013 BUSINESS DEVELOPME 25-Feb-2013 8-Feb-2013 Director 8-Feb-2013 Director 9-Feb-2013 MD 28-Feb-2013 15-Feb-2013 14-Feb-2013 Managing Director 18-Feb-2013 8-Feb-2013 Ch Chai airm rman an 8-F 8-Feb eb--20 2013 13 5-Feb-201 2013 Vice President 22-Feb-2013 Head-Sales and custom 22-Feb-2013 1919-Feb-20 201 13 Consultant 8-Feb-2013 Consultant 20-Feb-2013 Business Development 20-Feb-2013 Director 21-Feb-2013
Company Logistics times McCain Foods India Pvt Ltd McCain Foods India Pvt Ltd McDonald's India (Connaught Plaza Restaurants Pvt Ltd)
Mehta F Frrozen Fo Food C Ca arriers P LLT TD Mitaso Comtel Ltd. Mitsui & Co. India Pvt. Ltd. MJ Logistics Systems MJ Logistics Systems MJ Logistics Systems P.James P.James PHD Chamber PHD Chamber Pluss Polymers Radha Krishna Food Land RINAC INDIA LTD, S.K.Frozen Food Carriers Pvt. Ltd Samagra Agribusiness Services Private Ltd.Hyderabad Saradiro E Service Private limited SFAC Siddhi Enterprises SMG Gases & Chemicals Pvt Ltd SURAKHSHA TRANSPORT SYSTEMS INDIA(P) LTD SURAKHSHA TRANSPORT SYSTEMS INDIA(P) LTD Task Force on Logistics Management , PHD Chamber TNT India Pvt Ltd Trans Acnr Solutions Pvt Ltd. Trans Acnr Solutions Pvt Ltd. Ubifrance
Supply Chain India Bayer Material Science
Blupith Consultancy Pvt. Ltd
SPEAKERS LIST
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Name Shailender Kumar Sanjay Ba Bandhopadhyay Sanjeev Chopra J. S. Meena Pawanexh Kohli Howard J Scott RS Bedi Ashok Mirchandani Alok Dubey Jag Mohan Gupta VP Varghese KK Mitra Chetan Kumria SK Sarkar Siddharth Mishra Cosima Paul Klinger Purvin Patel Anil Chopra
Topic Inaugural Inaugural Inaugural Inaugural NCCD Roadmap Current and Future Demands: Reefer Transport Reefer Transportation In India: Opportunities & Challenges Refrigeration on Reefer trucks Status of Reefer Transportation in India: Users perspective Impact of Insulation on Reefer Transport Impact of Body Dimensions: Reefer Transportation Energy Efficient Insulation For Refrigerated Transportation Bottlenecks to Pharma Transportation Status of Reefer Transportation in India: LSP perspective Modern designs for reefer transport. Light weight materials in reefer bodies. Bottlenecks to Reefer Transportation: Supply Chain perspective Bottlenecks for Reverse logistics
Organisation GoI GoI GoI GoI NCCD BigBear PHD Carrier Field Fresh APC Surakhsha Lloyds Baxter Crystal HLM Lamilux RKFL Vegfru
19 20 21 22 23 24
B.T.Gorti RK Sharma Anupam Srivastava Devendra Jain Amitabha Chaudhari Aman Khanna
Food safety and compliance issues in cold chain business NHB Initiatives in Reefer transport Investment opportunites and outlook Passive cooling for mobile distribution Rail Based Reefers Supply chain Perspective
Saradiro NH B InvestIndia PlussPoly APL E&Y
Sampling of Images from NCCD’s Reefer Transport Conclave
Last minute Registration (95 prebooked, another 20 arrived for onsite registration)
Inaugural Session
Technical Sessions
igera ratt ed tra t ran nspo porr t at ion ion:: Ref r ige bott t len bo lene ecks and solut olutions ions
Foreword 1
A ccording to som e estim at ates es turno turno ver of the indu st str ry is ove r IN R 1 0 0 billion ,grow ing at 10 -1 5 % w ith a recorded capaci capacit ty o f ~30 m n M T
2
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
T h e co ld ch ain se sect cto o r is sizea b le an and fast-g row in g 1 w ith key ke y in du stri stries in clu d in g fruits an d veg ve g etab les,
meat, sh, poultry, dairy products, con fection ery an d p harm ha rm ace aceu u ticals, am o ng othe other rs,be in g cri critically depe de pen n dent de nt o n it. H o w ever, ev er,th e sec sect to r fac aces es sev several eral con co n strai strain ts in its g grow row th ,w h ich n o t o n ly lim its its po ten tial,b u t also resu resul lts in w ast astag ag e and a nd loss o f val va lue in th e in d u st stri ries tha that t d ep en d o n it.T h e ho h o st of issue ssues s faci facing th e se sect ctor or m u st be ad d ressed b y th e in d u stry stry itself,g iven ve n
the domain-specic and skill-intensive skill-intensive nat na tu re of o f th e bu sine ss.H o w ever, ev er,there he re is a dire n need eed for t the he G ove rnm ent en t to len d it ad ditio n alsup su p po rtd u e to th e
signicant inuence of externalities on its perf perform orm an ce an d the f fact act tha t essen esse n tialseg m en ts (in clu d in g foo food d and an d ph arm aceu ticals)are depe nd ent en t on it. W hile t the he G overnm ent has bee n do ing so o ver t the he yea year rs in the form of vari va rio u s in itiatives, ve s, a struc struct tu red an d h o listi stic view o f th e key k ey d eterm in an ts o f succe su ccess ss is req req u ired to a ach chi iev eve e the fu llp o ten tenti tialo f the in d u str stry y. T h e co c o ld chai ch ain in teg rates lo g isti stics act ac tivities in th e tem p erat era tu re-se re-sen n sitive storag storage e an and dt tr ran spo sport rtation seg segm m en ts, in clu d in g in activities at th e p ro rod du ctio n -
T he N ation alC en tre f fo o r Co ld-ch d-chai ain D evelopm ent (N C C D ),a no dalbody set up by the G overnm ov ernm ent en t of Ind ia w ith th e a ai im o f facilitatin g the d evel ev elo p m en t o f th e col co ld chai ch ain in In d ia, o rgan rga n ized ze d a con co n clave av e on o n refr refri ige rated rated transp ran spo o rtatio n on 7 M arch arch 20 1 3 as par part t of the p roces rocess s to en able th is. Its in ten tio n w as t to o u nd ers erst tand an d the b ottlenecks en ecks and an d issues faced by a and nd the co nce ncer rns o f vari va rio u s stakeh ke h o ld ers (in clu d in g service provi pro vid ers,en d u sers,th e G over overnm nm ent ent, ,equipm ent and technology p rovid ers,an d ad visors) in th e refri refrig erated transpo ran spo rtatio n sector an d id en tifyin g p o ten tial sol so lu tio n s for the them m. S takeh older de rs f fr rom the enden d-user user ba se, equi eq uipm ent en t provider de rs,O E M ind ust ustr ry, p o licy-m cy-m akers, ak ers,tech ec h n o lo gy provi pro vid ers, col co ld storag storage e ow o w n ers an and d lo g isti stics service provi pro vid ers from th e ro road ad ,railan d air secto sectors rs pa part rticip ated at t th h e co c o n clave. av e. T he even ev en t inclu ded de d the p pr rese esentat ntati ion s of the the pane pa ne lspe speake akers rs, ,fo llow ed by th e in teractive particip atio n o f th e a u d ien ce. ce . E rn st & Y o un g be bel lieves ev es st str ron gly in the po ten tialof t the he sect sector, or,ha ving w orked w ith m u ltiple clien ts an d en abl ab led th em to effect ec tivel ve ly leverag ev erag e the grow gro w th
potential that can be exploited from th e ch allen ge s facin g the sector.A s
gate a an n d p o in t o f sale.T h is in teg ratio n
part pa rtof this com m itm en t to the se sect cto o r,
is facilitated through product- specic
the rm was the Knowledge Partner
protoco ls,ind ustr protocol ustri ialand an d com m un ication tech echno no log y and a ppr pp rop riate ate dep loym oy m ent en t o f in frastr rastru u cture cture. .T h is n eces ec essi sitates coo rdin ated d deve eve lo pm en t across all these he se essen tialseg segm m en ts.O n the co col ld storag storage e fron t,m ore than 1 0 m illion m etr etric ton ton nes ne s of capacity h as b been een deve de vel lop ed in the p previ reviou s 10 years, ye ars, an d in al a ll,th e co u n try ha has s w itn esse essed d com m iss ssi ion oni ing of ar arou ound nd 3 0 .4 m illio n m etri etric to to n n es o f col co ld storag e cap aci ac ity. H o w ev ever, er,th e essen e ssen tial link bet be tw een stored stored produ cts cts an and d
fo r th e co n clave, av e, w h ich a al lso rece recei ived ve d sup po rt from m ultiple stakeh olders de rs in th e col co ld chai ch ain in d u stry, in clu din g th e N atio n alH o rticul cu ltu re B Bo o ard, th e N atio n alH o rticul cu ltu re M issio n ,C arrier T ransi ran sicol co ld, In vest ve st In d ia, am o n g o th ers.
m arke arket s in th et devel refr refri igop erated ranspo ran sect sector ortha has s no de vel ed attt he spo rt sam e pace p ace a as s the storage storage ind ust ustr ry.
as takeaw takeaw ays f fr rom the conclave.
T his rep repo o rt cap tures t the he proce proceed edi in gs of the con clave w ith a focus o on n b o ttlen ecks ec ks an d po p o ten tial sol so lu tio n s,as h ig h ligh ted b y th the e vari v ario u s pa particip an ts. Th e key recom m end at ati ion s for ind ndust ustr ry p arti articipa n ts an and d p o licycy -m akers ak ers have been sum m ari arized at the end
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
3
Ina naug ugural ural sess session ion
Panel:P awanexh Kohli (C h ief A d viso sor r,N C C D ),
Shailendra Kumar (Secy Government of J&K, Ex-Director, NCCD), San jay B andh opad opadhyay hyay (J t. S ecre cret tary, M in ist str ry o f T ran sp spo o rt and an d H igh ghw w ays), S an anj jee eev v C h o p ra (J (J t. S ecr ecret etar ary, y, D ep epar art tm en ent t o f A g ricu cul ltu re an and
Cooperation), JP M ee een n a (J (J t. S ec ecr ret etary, ary, M in ist str ry of o f Fo o d
Processing Industries)
Key point s of of discussion T he Ind ian G ove rnm ent en t is cogn izan zant t of th e p o o r state o f cold chai ch ain lo gisti stics a an nd
has identied several areas of concern, a key one am ong t them hem being inadeq uat uate e road roa d con co n n ec ect tivity. T h e M in istry stry of R oad Trans Transport portand H ighw ays (M O R T H ) has ha s ou tlaid its plan s fo fo r disbu sburs rsem em en t o f fun ds for con const struct ructi io n and u pgrading o f 4 5 ,0 0 0 km s of roads, road s,to ensu e nsu re im prov proved ed con co n nect ne cti ivity w ith rem ote areas in the cou countr ntry. y. W h ile In d ia’ sn na atio n alan d state highw ays span m ore ore than than 7 1,00 1,00 0
kms, the crucial rst and last mile
road roa d lin ks a are re g grossl rossly in ad eq u ate.
Signicant quantities of perishable go od s ar are e w ast asted ed, ,w ith the e est stim ated ated loss am oun ting to around I IN N R1000 b illio n at cu curr rre en t p rices. ce s. A part from th e en tire syst system em sufferin g m o ne tary lo sse s, thi this re resu sul lts in u n availability o of f foo d for tho se f fo o r w ho m it is inten ntende ded d at a ti tim e w hen m alnu trition am on g chi ch ildren is as h hi igh as 4 5 % in the coun co un try. T o ad dress th the e lack o f techn ch n ical ca lskills in th e lab o r fo rce, th ere is th th e u urgen rgen t n ee eed d
to train personnel through certication cou co u rses,to n o t o n ly en e n h an ce skills in han ha n dlin g the go od s bu t also in operating and m anaging equipm ent u sed fo r ref refri rig erated transpo ran spo rtatio n .
4
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d sol soluti ution s
The G over overnm nm ent has im plem ent ented ed
lenient tax regulations and is actively seeki see kin g the o p in io n s of in d u stry stry playe ayer rs to to enco e nco urage the grow th o f co ld ch ain lo g istics in In d ia.It h as p rovid ed refri refrige rated rated transp ran spo o rt
the benet of 100% Foreign Direct Invest nv estm m ent en t (FD I) and an d h as w aived
levy of Excise Tax on domestic produ cti ction and an d cust custom om s for im po rt of rea ready dy-to-use o-use reef reefer er equ ipm en t.
Among the major difculties faced by service p roviders de rs are t the he lon g q u eu eues es at checkche ck-p p o sts sts on th eir rout rou tes, w h ich
signicantly increases their waiting time, reduces their efciency and results in w ast astag age. e. M O R T H plans an s to intr ntrod od uce the use o f R adi ad io F reque eq uency ncy
Identication (RFID) tags on reefer veh ve h icles a n d im p lem en t th is in itiative
by the beginning of the next nancial year to to e ncou rage the grow th of refrig era erat ted transp ran spo o rtatio n in th the e
country. This is expected to reduce the lon g w aiting tim e an d enh e nh ance an ce
the efciency of the supply chain. The Ministry of Food Processing Industry (MOFPI) recognizes the need to address ad dress issues an d conce co nce rn s relatin g to othe other r areas o f th e su supp pp ly ch chai ain, an d is w orking on 6 3 projects on integ ntegr rated
food chains. In the next two years, it plans an s t to o im plem ent en t another an other 75 project ects s w ith an invest nv estm m en t of IN R 1 5 billio n.
g
4
p
Plenary session
Key point s of of discussion In d ia’ s co ld ch chai ain se sector ctor is f frag ragm m en ted w ith m ore t tha han n 3 ,5 0 0 playe ayer rs,w ith m ost of them being in the un organized sector.O n the ot other her han d, consum er ers s in creasin g ly prefer scaled an d in teg rat rated ed service p provi rovid ers,w h o ca can n p rovid e en e n d-to -en d so lu tio n s.
U S ,8 0 % – 8 5 % o f fru its an and d veg v eg etables are tran spo sport rted w ithin th e co u ntr ntry y b y u sin g col co ld cha ch ain lo g isti stics. Th is p erce ercen n tag e is n eglig ib le in In d ia. O th er key chal ch allen ges f fac ace ed in In d ia’ s cold ch chai ain includ e pow p ow er outages an d h igh costs on acco un t of in creased transi ran sit an d w aitin g tim e. In m o st In d ian airp rpo o rts, the ava ilab ility o of f co ld ro roo o m s,
Figure1: Cold Storage Capacity acity in in India
30 ,00 0 25 ,00 0 20 ,00 0 15 ,00 0 10 ,00 0 5,00 5,00 0 0 195 5 1 9 96 60 19 6 65 5 1 9 7 0 1 97 97 5 1 9 7 79 9 19 8 86 6 2 0 0 4 2 00 00 7 2 0 0 09 9 2 0 1 0 2 01 01 1 2 0 1 2
N um ber of col cold st stor orages ages
In t the he Last De cade Inst nstal alled capacity in '0 0 0 ton s (cum ulat ati ive)
Sources Sourc es: : N CC D
T h e co col ld ch chai ain in frast rastructure ructure for sev several eraltem p eratureerature-sen sen sitive g go o o d s, in clu d in g h o rticu cul ltural turalp ro rod du ce ce, ,is in an ab ysm al state state in In d ia, w ith a al lm o st 30%– 4 0 % of the se peri p erisha shabl bles b bei ein g
wasted. This is, to a large extent, due to th e lim ited u se o f co col ld ch chai ain lo gistics fo r tran transp spo o rto f perisha ble p rod rodu u cts. cts. A ccording to a stud y con du cted cted in the
fruits and vegetables, sh and other h o rticul cu ltu ralp rodu rod u cts. cts.H o w ever, ev er,a furt urth h er bo boost ost ne eds ed s to be b e gi g iven to the de ve vel lo pm en t o f suitab le ref refri rige rati ratio n system s includ ing tem per pe rature ature con trollers.E nd use user rs also n eed ee d to be in vo lved ve d in th is by by cl c lo sel sely co c o o rdin atin g w ith th e ref refri rigeratio n in du stry. stry. In ve vest stm m en t in facilitatin g railm o vem ve m en t o f reefer con tain ers is t th h e n eed ee d o f th e h o u r.T o ach ac h ieve ev e this,th e tr tran an spo rt ind ust ustr ry, shipp ers and an d the G overnm ov ernm ent en t sho uld creat create e a task force t to o deci de cide o n strat strateg eg ic lo catio n s w h ere in lan d prere-co coo o lin g an d col co ld storag storage e facilities can be devel de velop ed, ed ,since these he se are curr cu rren en tly g rossly in ad eq u ate in In dia.
35 ,00 0
195 55-198 198 6
T h e do d o m est esti ic ree reef fer m arket is large an d co u ld p rove to b be e a catalyst in the g row th o f transpo ran spo rtatio n o f
despi de spite a dvan dv ance ce no tices g iven ve n for t the he u nloadi oa ding o f large co nsign m en ts of tem p eratureerature-sen sen sitive p rodu rod u ct cts, s,is a chal ch allen ge.T h ere is a critical ca ln ee d fo r p ro rovi visio n o f d o llies at a t in tern terna atio n al airpo rts for m ovem ov em ent en t of tem per pe ratureaturesensi sen sitive ca cargo rgo f fr ro m airpo rt w areh arehou ou ses to the tar tarm m ac w here he re aircraft are pa parked. rked.
Th e G overnm ov ernm ent en t as w ellas privat vate e bo dies s sho ho uld prom ote organ ized retailin g in the co u n try,sin ce tha that t w ill encou en cou rage ag e inve stm ent en t in the cold cha chai in sector, sector,in clu d in g in ree reef fer tran transp spo o rt. Fu rth erm ore, tech n icalstan stan dar da rds an d
specicationss followed in India are also specication o ften u n sui su itab le for In dian con co n d itio n s, w hich results in the low per pe rform ance an ce o f stan stan da rd r refr efri ig erated sy syst stem em s. M oreo oreove ver r, lack o f conn co nn ectivity betw b etw een ee n distri strib u tio n ce n ters ad add d s to the w o es o of f service p ro vide der rs as w ellas co nsu m ers. Th e G overnm ent needs t to o acceler erat ate e im plem entation of G oo ds and
Services Tax (GST), since the current tax regime is a major deterrent to organ ized a and nd op tim ized w areho arehousi using . It sh sho o u ld also in itiate train in g o n
edi i(C ha hai irm an an, , Panel: R S B ed
produce- specic best practices.
T ask Fo Fo rce o n L o g ist sti ics,
PHDCCI), RK Sharma (D irect ector or, ,N H B ), A nu pa pam m S riva vast sta ava (M D ,In ve vest st
India), Pawanexh Kohli (C h ief A dv dvi isor sor, ,N C C D )
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
5
Figure 2: Ill Illustrat ustrative ive example: Wastage of peris rishab hables on acc accoun ount of multiple handli ling ng not only causes waste, but also also signicantly increases nal prices for consumers.
Waste in the fresh produce supply chain A verage p rice of a kg o f ap pl ples es
X
+
N et price received by Far arm m er
+
0 .4 X Expenses in cu curr rred b y farm arm er
0 .2 X
=
66-10 10 % A g e n t’ s com m issi ssion
1 .6 X P rice p ai aid d by w ho lesaler
=
+
0.02 0. 02 X Expenses of w ho lesaler
0 .3 X
+
0 .3 X
=
W ho lesaler’ Sub s m ar argi gin w h o lesa sal le r’ s m ar argi gin
2 .2 X R eta tai ile r’ s purchase p rice
There The re is a 120 %increa %increase se be bett wee ween n t he farmer’s selling pri ce and retailer’s purchase price ~2 0 0 0 cr saving saving s if just 0.2 0.2 x of w aste cou ld be red educe uce d (in ap appl ple alon e) So uces: uce s:E& Y an alysis
T he her re are severalince ncenti ntive schem es that have b een im plem ented by the the
In ve vest st In d ia is attr attra actin g th the e in crea creasin g in tere terest st of in tern terna atio n alp layers in this
G overnm ent to prom ot ote et the he r reef eefer er in du st stry ry as w ellas t th h e st stan an d ard ards s cr creat eated ed by b y N H B .Th e lack of do dom m ain-
ind ustr ustry. y. T his ha has s be been en given ve n a bo ost by a se ser ries o of f invest nv estm m en ent t rou nd tabl ab les that ha t have ha ve b been een m ainly focu focu sing on the foo d p rocessi oc essing an d co ld-ch d-chai ain sector. sector.In add itio n ,N C C D ’ s ro rol le as the facilitator ator be bet tw een the G ove over rnm ent en t and an d
specic skills sets is clearly evident from the state ate o f dom estic m ovem ent of m ango an go es,as high ligh ted b y N H B . T he she sheer er qu quan ant tu m of ho rticultu ral produce and the ass associ ociat ated ed w ast astage age p resen ts an attract attracti ive o p po rtu n ity for service prov provi ide ders rs and the foo d ind ustr ustry. y.
6
private industry has been signicant.
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
Technolog echnology y user’s pers rsp pective
P awanexh Kohli Panel: ( C h ief A d viso sor r,N C C D ), A lok D ubey (D (D G M , Field fresh Fo o d s),A sh sho ok
Mirchandani (MD – APAC, C arrier Tr T ran sico col ld In d ia), D eve ven n d ra Ja J ain (D irect cto o r & In n o vato r,
Pluss Polymers), A m an R ekhi(N at ati ion al S up uppl ply C ha hai in M an anag ager er, ,
Baxter (India) Pvt. L td .),H o w ard J S co cot tt (M D ,B ig B ear Supp Su ppl ly C hain M anag anagem em ent ent) ),
VP Vargheese (M D ,S ur urakhsha akhsha T ran anspor sport t S ystem s)
Key point s of of discussion T h ere is a d eart ea rth o f reefer veh icles an d service prov provi iders de rs w ith a crossregi reg io n al prese presen n ce. ce .T h e lack ac k of o f In dia-
specic designs, including multi-zone
Passive cooling options to service th e last ast-m ile an a n d p o rtab le d elivery ve ry m ech echan ani ism are requi eq uired. ed . Fur Fu rther he rm ore, the use o f ph ase ch chan ange ge m ateri aterial an d eu e u tect ec tic ce cel lls w o u ld fr fre ee in tern erna al cap acity on o n tr truck ucks, s,an d red reduce uce risk and dep end ence o on n con nect nected ed po w er for pre-de det term ine d p peri erio ds.
refrig era erat ted transp ran spo o rt,is a al lso a seri serio u s b o ttlen eck. ec k. M o reove reo ver, r,st stan an d ardiza zat tio n
Im plem en tation of t the he follo w ing step steps s
of vehicle boxes is critical, since
could lead to signicant improvements
th is w o u ld en ab le effec ect tive carr ca rri iag e o f go goo o d s.Fu rth erm o re,in ab ility
in In d ia’ s co co ld ch ain sp spa ace ce: :
to fully ll up boxes due to nonstan stan da rdizatio n leads ea ds to h ig h er co cost sts. s. A n other othe r chal ch allen ge th e user u ser in du stry stry ro rou u tin ely face ces s is th the e lack o f av ava ailab ility o f skilled o p erators o of f ree reef fer tran spo sp o rt
vehicles. This leads to signicant
w ast astag age ed duri uring loadi oa ding and an d un loadi oa ding of trucks uc ks as w ellas d due ue to im prop er m anag an agem em ent en t during transi an sit.S truct uctured ured train in g o f o p erators th roug rou g h
certication courses courses would go a long w ay in reduci ed ucing this w ast astag age. e. A m endm ent ents s to the the C ent entr ralM otor otor V ehicles R ules ( (C C M V R ), 1 9 8 9 to provi prov ide m ore v vert erti icalspa space ce in the
cabins of multi- axle motor vehicles (to m ake ak e an a n allo w an ce fo r tiltin g ) is req requ u ired red, , sin ce th e o veral ve rallh eigh t
currently specied is still based on the lim ited types yp es o of f com co m m ercial veh ve h icles th at w ere in use earl ea rlier.H ow ever, ev er, th e tech tech n olog icalcha ng es t tha ha t ha ve taken ak en p lace ac e in such suc h veh ve h icles sin ce th en ne cessitates t thi his ch chan ange ge . W h ile refri refrige rated rated an d in su sul lated trucks p erform sim ilar fu n ctio n s, a di d iffere eren nt tariff h ead ea d app a pp lies to t th h em .T h e G ove rnm ent en t sho shoul uld co consi nsider de r bring ing bo th un der de r the sam e tar tari iff head he ad. .
• In tro d u cin g p lu g-in po w er po in ts to rech recharg arge e refri refrig erators a at t pe pet trol pu pum m ps,since t they hey car carr ry goo g oo ds an and d h ave av e a lim ited charg ch arge e w h ile in tran sit.
• A fast-track lane for perishables sho uld b e in trod uce uced da at t check ch eck p oints n ear ea r to llb o o th s.T h is w o u ld cut cu t dow n on the am ou ount nt of tim e reef reefer er con co n tain ers n nee eed d to sto p curr cu rren tly, and thereby hereby, ,redu ce w astage and d elivery ve ry tim e.
• The Government needs to bring dow n the the im po por rt du dut ty on the com po ne nts of reef ee fer veh icles in th e co cou u n try.C u rr rre en tly, this is less for a
nished reefer vehicle and than its com po ponen nen ts.R edu cing the im po por rt duty on com pon ent duty ents s w ould en able these he se t to o be assem bled in Ind ia and a nd w ou ld h elp the ove rallgrow th of the segm ent ent. .
• Allowing non-hazardous drugs in p asse assen n g er a ai ircraf craft t w o u ld also substan su bstant tially bri b rin g dow d ow n the tim e taken ak en to d eliver ve r p ro du cts.
• Furthermore, there is a need for an in teg rated pa ckag cka g in g solu tio n th at w illen sure th e lo n g evi ev ity of p pr ro d u cts. cts.
A key issue o ften face aced d by b y service p rov rovi iders is t tec ech h n o lo g y tha that t is u sefulfo r m in im izin g lo sses an d
increasing efciencies efciencies is not adopted d u e to en d users’ u sers’ relu ct ctan an ce to p ay a prem ium for t thi his.
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
7
Logis isttic ics s provid rovide er’s pers rsp pect ctive ive
Panel: RK Sharma (Director, NHB), P Alli R ani(C EO FEH L and D irec rect to r (Fin an ce ce) ),
Concor), KK Mitra (Vice President, Lloyd In su sul latio n In d ia L im ited ), A m itabh abha a Chau C hau dh dhar ari i
(MD, APL IndiaLinx (NOL Group)), SK Sarkar (C O O ,C rystalL o g ist sti ics) cs), , S id d h arth M ishra (C E O ,
HLM India Pvt. Ltd.)
Key point s of discussion T he m ajor con straints faced by sup su p pliers in clu d e en e n d u sers’ sers’ relu ctan ctance ce to p pay ay for im plem ent en tation of tech echno no log y that c can an hel he lp to reduce ed uce losses an d m inim ize w ast aste. e. T h e u se o f railfo r refri refrig erated col co ld chai ch ain is no n o t curr cu rren en tly feasible for m an y com co m m o d ities d du u e to d dea eart rth o f railw ay’ ay ’ s faci ac ilities fo r lo ad in g an d u n lo ad in g o f go o d s at in term ed iate st stati atio n s. T h e w o rkfo rce, espe cially d rive vers rs, ,
need to take certication courses to ensure en sure t tha hat t they he y are aw are of the requi eq uirem ent en ts of the prod product ucts s the they y carry carr y and u nd ers erst tand an d t the he im po rtance an ce o f m ain tain in g str stri in ge n t stan stan d ards. Fu rthe rm o re, the im po sition of
additional AC tax on reefer vehicles entails an additional tax burden on farm ers and an d add a dd s to to their
difculties, since in many cases, they are unable to afford this extra cost co st to tr tran an spo sp o rtth eir go goo o d s.
8
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
R eef ee fer trucks con cont tain ing tem perat pe ratureuresen sitive carg cargo o b ein g u n n ecessa ec essari rily d etain ed n o t on onl ly lead ea d s t to o ad d itio n al fuel ue lcon sum ption , bu t also da dam m ages ag es p erishab sh ab le fo fo o d prod p rodu u cts. cts. A d d ed to th is is the fact ac t th at ve veh h icle
insurance does not cover nancial lo sses d du u e to p po o w er f fai ailu re,w h ich is a freq uen ue n t occu oc cur rren ce. In suran surance ce b bod od ies sho uld co nsider de r am en ding th is clau se.
Lack of knowledge of specications is an ano o th er key c co o n strai strain t.T h ere a are re cases cas es w her here e cus cust tom ers ers m ay not be aw are o of f the best be st size o f veh icle n eede ee de d t to o transp transport ort the ir go od s,an d conse co nsequ qu en tly, m ay o rde r a ve vehi hicle tha tha t is ei e ith er too sm allo r large arg e to m eet ee t th eir needs. nee ds.A proper und er erst stand ing and assessm ent en t of the need ne eds s of cust custom om ers is th erefore e esse ssen n tialfo r service p rovi rov iders.
Furthermore, there are no specic g u id elin es tha that t set t th h e stan stan d ard fo r refri refrig erated transpo ran spo rt.R eg u latory au th o rities sho u ld th erefore c co o n sid er fo rm u latin g stan stan d ards tha that t are sim ilar to the N H B Te Techni chnicalStandard for C o ld S tore C o nstr nstruc uct tio n.
Techni echnical and supp supply c cha haiin perspe erspec ctiv ive e
A m an
Participants: Khanna (Associate D irec ect to r, E rn st & Y o u n g ),
Purvin Patel (COO/ B usiness H ead ead, ,R adh adha a
Krishna FoodLand), BT
Key point s of of discussion It is im po rtan t fo r allth e stake stakeh h o ld ers in th e in du stry stry t to o reco recogn gn ize th e fact th at ince ncenti ntives provided de d by the G overnm ov ernm ent en t are n ot inten ntende ded d to he lp service
providers survive in their existing
G o rti(S arad iro E S ervice
state, sin ce this w o u ld im p ly tha that it is
Pvt. Ltd.), Cosima Klinger-Paul (Managing Director, Lamilux India Pvt. Ltd.), Anil Chopra
funding the system’s inefciencies. inefciencies.
(M D ,Field Fresh V eg egf fru
Pvt. Ltd.), Jag Mohan Gupta (Director, APC Polycoat India Pvt. Ltd.)
T he ob ject ecti ive m ust be to leve ever rage ag e governm gover nm ent suppor support t to becom e m ore ore
efcient and relevant, and thereby drive growth and protability, and con sequ ent en tly, reduce ed uce the requi eq uirem ent en t for sustained ne d gov g overnm ernm ent en t supp ort ort. . In th e fr fru u it an d vege ve ge tab le sup p ly c ch h ain , the so sol lu tio n is to to elim in ate (o (o r at least m inim ize) w ast astag age. e. T he bu lk of o f the cur cu rrent 3 30 0%– 4 0 % loss w itne ssed in the segm ent en t at present is no not t du e t to o the lack ac k of o f a co c o ld chai ch ain (o r r re efrig era erat ted truckin g) in the cou ntr ntry, y, bu t on acco u nt o f m u ltip le stru ctura ctural lfact ac to rs larg arger er th an the cold chai ch ain .T h ese in clud e the fo llo w in g: proper er post post-harvest ha rvest han ha n dlin g an d • Im prop
in ce cen n tive o r visio n to inve vest st in large rgesca scal le an d sop so ph isti sticat ca ted infrastructu astructure re that ha t can can yield scale an d scop scope e advantages
• Absence of grading or sorting (lead in g to lo ss o of f va val lu e) E n ab abl lin g val v alu e by by e el lim inat na tin g w ast aste e an and redistri stribu tin g this am o n g p rodu rod u cers, ce rs, service p pr ro vide rs an and d en e n d users u sers sho u ld be the the aim ,and an y governm ent in itiative tha that t lead s to thi this w illb e go o d fo r allstake stakeh h o ld ers, in clu din g tran ransp spo o rters o of f refrig erat era ted veh ve h icles.
Figure 3: Key factors accounting for wastage wastage of perishables
What are t he reasons for wastage? La ck of grad ing /sorti /sorting 10 -12 %
O the rs 0 -3 %
La ck of co col ld ch a in 55-10 10 %
Poor h a rvestin g 20 -40 %
Poor ha nd ling 40 -60 %
storage
• Unsuitable harvesting practices • Improper packaging
So uces:E& Y estim ates
• Inappropriate handling during tran spo sport rtatio n an d storage
• Multiple handling points due to a large n u m ber be r of in term ed iaries
• Unorganized and small-scale in term ed iaries, w h o h ave av e little
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
9
In th e p rocessed foo ds su supp pp ly ch ain ,
the key is to maximize efciencies by implementing efcient distribution netw ork orks. s.Large hub w ar areho eho uses servi servicin g sm aller sp spo o ke o r satellite w ar areho eho uses close t to o con sum pt pti ion hu bs, as com par pa red to sm aller sc scat att tered go do w ns, w illfurth urth er im prove prov e the
efciency of the system and minimize w aste, d am ag e an d pilferag e. It w ill
enable enhanced utilization of eets of large tr truc ucks ks betw ee een np pr rod uc uct tio n cen ce n ters and hu bs as w ellas dep loym ent of
smaller (but more fuel efcient) trucks betw een the hub s and spokes t to o the the retailsh she elf.L arge rger r w areh reho o u ses w illalso en enab abl le scale econ e con om ies,inve stm ent en t in im proved proved equipm ent and im prove prove o verallst stan an da dards rds of w areh arehou ou sing
and signicantly reduce wastage.
Th e gove rnm ent perm it grant granted ed t to o reef eefer er trucks ne eds ed s to be b e renew ed an n u ally a an n d is t typ yp ical ca lly n o t re-i re-issu ssued ed after eig h t ye ars, aft afte er w h ich a v ve eh icle is perm p erm itted to o n ly run o n in tra-state state routes.R egu eg u latory bo dies sh shou ou ld reco reco n sid er th th is p ro rovi visio n , sin ce it lim its th e o peratin g life o f ree fers. N o n -avai av ailab ility of o f tw o -w ay cargo ca rgo o r b ackac k-h h au lag e an a n d in terst erstate ate b barri arriers
com co m p lete solu tio n to ad d ress qu qual ality an d m arketab ility issu ssue es relatin g to p erishab sh ab le p rodu rod u cts. cts. A d ditio n ally, th e co c o st o f a p erm it licen ce n se sho uld n ot be cha rged ge d to carr c arri iers of fo o d p rodu rod u cts, cts,sin ce th is reso resou u rce is alread rea d y cri critical ca lly dep d ep leted , an d th e g ga ap
is expected to increase further. It is imperative that specic policy
contribute signicantly to sub-optimal stan stan da rds in reefer t tran ranspo spo rt.T h is n no ot o n ly in crea creases ses th eir op eratin g cost co sts, s,b u t also ad versel ve rsely af a ffect ec ts ti tim ely d elivery ve ry of produc prod uct ts an d o ptim um utilization of
interven ntervent tion s are u n der de rtake aken n to faci ac ilitate the u se o f d ata lo g g ers a an nd o p eratio n alm o n ito rs t to o stri strin g en tly sup su pp o rt th e tr trac acea eab b ility a an n d qu ality no rm s of foo d p pr rod ucts ucts. .M oreov oreover, er,the
eets.
import duty on Glassbre Reinforced Plastic (GRP) sheets needs to be
Fu rther he rm ore,the lack o of f backw ba ckw ard
red redu u ced ce d to facilitate th thei eir usa usag g e, g iven ve n
and an d f forw orw ard linka nkage ges s to su supp ppl lem ent en t co ld c col ch h ain resu lts in th e abse a bsen n ce o f a
th eir streng ren g th an d p o ten tialfo r energ en ergy y savi savin g .
Figure 4: Inefciencies in the processed foods supply chain
o i r a n e c s t n e r r u C
R etailers
Several tiers exist
R etailers Processing plan t
R etailers S m all d istrib u tors
S everal ev eral CFA agents
S m all stocki stoc kists
d e z i n s a r e g l r i o a t n e U r
O rgan ized retai retailers
• Efciency in the sup ply ch chai ain th rou gh red uction in n u m ber of of “ tiers” , large rger rd di istr stri ib u tor w ar areho eho uses t that hat ar are e part of an end to e end nd hu b an and d spoke system en tati ation of • Im plem ent
o i r a n e c s ” e b o T “
Few Fe w er tiers R etailers Processing
R etailers
plan t
Few Fe w bu t larger
Distributors/
3PL hub
sto sto ckists sts w areh arehou ou ses
w arehouses arehouses
as part of 3PL chain
O rgan ized retai retailers
D irectly to o rga rgan n ized ze d large arg e retailers
S ou rces:E& Y an anal alysis
10
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
d e z i
n s a r e g l r i o a t n e U r
G ST w ould r reduce educe dep end ency on stat ate e level ev elu no rgan rgani ized an d d di isin teg rated rated w arehou arehou sing service p rovid ers
Concllusi Conc usion ons s and rec recom ommend endat atiion ons s
A large number of factors that inuence th e perf p erform an ce of o f ref efri rige rated tran ranspo spo rtatio n b bu u sin esse esses s an and d the large r co col ld ch chai ain are n o t w ith in th e c co o n trolo f service p rov ovi ide ders rs an and d en end d user use rs.Fo r
example, as a refrigerated trucking
Figure Figure 5: Key areas of r req equir uired ed polic policy y support tto o enable all round rounddevelopment of the industry S u stai stain ab le in d u stry str stru u cture
Human resource/ skillde vel ve lo p m en t
service p pr rov ovi ide der, r,on e is depe de pen n den de n t on th e q u ality o f road roa d s o on n w h ich o n e’ s trucks a are re plyin g ,th e ch ec eck kp po o st sts s
these trucks will nd on their way and
Policy to facilitate
the ethics (or lack the thereo reo f!) o f p o lice pe per rson sonne nel ldepl de ployed oy ed on the rou te.
However, although external factors su such ch as th e av avai ailab ility o f ad eq u ate in frastr rastru u cture a n d favo rabl rab le p o licies
that promote efciencies will continue to inuence performance, a large part of th e w o es face faced d in th is in d u stry stry w illh av ave e to be ad addressed dressed throu gh its evol ev olution – an ev evo o lu tio n th at w illen able it to brin g m ore an d m ore o of f the requi eq uisite fact factors ors requi eq uired to enh ance an ce t the he p erform ance an ce of th e se seg g m en t w ith in its con trol.
E n terpri erp rise
efciency and pro rod d u ctivity
T he key to a ach chi iev evem em en t of this evo evol lu tio n is bring ing do w n w aste aste in the fresh
food supply chain and maximizing efciencies in the processed food supply foo d ch chai ain. T his req requ u ires ch an ges ge s at th e in du st stry ry st struct ructu u re, hu m an reso esou u rce
and individual enterprise levels. Policy su sup p p o rtw illo n ly b be e m ea ean n in g fu lin th e lo n g run if it sup supp p o rts a an n d ac act ts in con jun cti ction w ith these he se ch ange an ges. s.
Sustainab ustainable le indus industt r y structure
A s far as proce processed ssed f foo oo d is con concerne cerned, d, greater great er integration w ou ld m ean a lean er s sup up ply cha in as a s com par pa red to a m u lti-tiered o n e w h ich is part p artl ly o n
T he str struct uc turalchan ch ange ge s r req equi uired in clu d e in crease creased d in teg rati ratio n alo n g the cha chai in and a nd enha en hance nced d scale in each e ach
account of distortion of indirect taxes
of its segments. Produce should not
chan ge h and s as m any tim es as it do does. es. S ing le o w ner ne rship of pr prod od uce alon g the chai ch ain w illen su sure re m in im allo sses a at t th e po ints at w h ich these he se o occu ccur r at presen t –th ese are the p o in ts at w h ich th e product chang es h hand and s.Fu Fur rtherm ore, ach ievem ev em en t of grea great ter scale in each e ach segm seg m en t w illen abl ab le invest nv estm m en t, econo eco no m ies of scale an and d im plem ent en tati ation of m ore o or rgani ga nized w orking pract practi ices th an at present (leadi ea din g to less d dam am age, ag e, p ilfera ferag ge,etc.).
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
in the cou ntr ntry y an a n d p art artl ly due d ue to the fact ac t th at u un n like in th e d evel ev elo p ed w o rld , o rgan rga n ized ze d re ret tailp en etratio n is ve very ry lo w in In In d ia. R etailers acro across ss t th h e w o rld
seek to maximize their efciencies by driving efciencies across the chain, an d the they y are a re on ly abl a ble to ach ieve ev e this by con co n trollin g as m u ch o f it as po p o ssib le.
Policies can facilitate these changes by rem o ving or ea easi sin g reg regu u lation s tha tha t discou rag e scale and a nd integ ntegr ration .S om e
specic interventions that can go a lo n g w ay in faci ac ilitatin g th e evo ev o lu tio n o f a su sust stai ain ab le in du stry stry st structure ructure a are re a as s fo llo w s:
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• B rin g in g an cillary a acti ctivities asso ssoci ciated w ith refr refri ig erated
transport ambit benets cu rr rre en tly ava aunder vai ilabthe le for larger rgeof r co col ld ch chai ain (eg .investm nv estm en ts in rip en in g ch cham am be ber rs,gradin g a an n d so sort rting , packa ckag g in g ,h an d lin g ,etc.)
• Continuing liberalization of agrim ark arket eti ing law s ( (r revam ping of
Agriculture Produce Marketing Committee (APMC) Act) • Accelerating consolidation or co coo o p erat erati io n a at t th e f farm arm ers’ en d
by facilitating the Public Private Partnership in Integrated Agriculture Development (PPPIAD) program
Human resource resource and skill development
• Exemption from Service Tax on C han ges r requ equ ired in h um an resourc resources es includ e increased a nd enha en hance nced d train in g to d evel ev elo p techn ch n ical ca lly com petent pers person on nel,w ho ar are e cap able of un der de rstan standi ding the tem per pe rature ature and an d hu m idity con trolrequi eq uirem ent en ts of vari va rio us per pe risha shabl bles an d op erat erati in g sop hist sti icated contr co ntrol olled atm osp osph h ere eq u ip m en t.T h is w o u ld req u ire up liftin g the im age ag e o f the ind ust ustr ry fr from bei be ing a “ last r re esort so rt”fo r em plo ym en t-seek seekers ers t to o th at o of f a se sector ctor o of f cho ch o ice th at w illh elp to sh ape ap e the f future uture of the coun co un try.
• r Considering eg u latio n s tamendments o p erm it an inin crease in the height in multi-axle reefer ve veh h icles in view of tec ech h n o lo gical ca l advances
• Facilitating M&A, Venture Capital and Private Equity investments in the sector
• Limiting tax exemptions for Small S ca cal le In d u st stri ries
• C on tinu ing to enco e nco urage invest nv estm m ent en ts throu gh in cen tives in cold chai ch ain s an d align in g th ese in cen ce n tive ves st to o en sure establ estab lish shm m en t of in frast rastructure ructure th at is alig n ed to the p rodu rod u ce su pp ly ch chai ain
• E n cou rag agi ing v val alue -ad adde de d servi services in clu d in g g radi rad in g an a n d so rtin g ,an d the use o f crates crates fo fo r h an andl dling an d tran ransp spo o rtatio n
• D eve evel lop ing and an d enf en forcing stan standa dar rds and certications erating im plem ent en tati ation of G S T • A ccelerati In d u str stry y p articip an ts can can facilitate these he se cha chang ng es by taking a lon gg-t term view w hen he n inve sting in d deve evel lop m ent en t o f cap capab ab ilities (m an p o w er a an n d ca cap p ital), w hich can hel he lp the them m reach the scale an d n netw etw ork r req eq uired for sup superi erior perf per form orm ance.
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A t the the p o licy level,m u ltiple in itiatives can ca n facilitate the these se ch an g es:
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
services in clu d in g e edu du catio n an a nd train in g of tran spo sp o rters of pe peri risha sh able p ro du ce ( (as as is th th e ca case se f fo o r th ese services p pr rovi ov id ed to farm farm ers)
• Development and facilitation of Public Private Partnership models fo r th e est e stabl ab lishm ent en t an d op erat erati io n
of specic training facilities for cold chai ch ain per pe rson sonn n el(in depe de pen n dentl de ntly o r as p pa art of a large rger r lo g istics train in g infrastruc rastructure) ture)
• Support provided to industry p laye ay ers or a asso ssoci ciatio n s to to estab establ lish
certication and accreditation stand stan d ards fo r sk ski ills In du str stry y pa p art rti icipan ts can facilitate th thes ese e chan ch an g es by th e fo llow in g in itiatives: ve s:
• Collaborating and proactively reaching ou out t to the G overnm ent w ith w orkable m od els to set up infrastr rastru u ctu cture re a an n d re reso sou u rces for skill developm ent
• Creating a certication and grading sys syst tem and an d recog nizing its im po rtan ce in recruitm en t an d progr prog ression of em ploye es ( (Th Th is sy syst stem could b e d evelop oped ed by ind ustry pl p laye ayer rs com ing tog ether on a com m on platf atform ,e.g., g.,an ind ust ustr ry asso ssoci ciatio n .)
• Introducing incentives for em p loy oyee ees s to en e n h an ce the thei ir skills by
participating in such certied training progr program am s
• Increasing credibility and en han ha n cing pe rcep cept tion of the im po rtan ce o f train ing th rou gh th e im p lem en tatio n of o f train in g in itiatives, ve s, e.g ., ap app pren ticesh ce shi ip progr prog ram s:T his w ou ld requ requi ire th at t th h e train in g p rovi ov id ed by in sti stitu tio n s is com p lem en ted by h an d s-o n p ractical p ractice sessio n s.V isib le up u p gradin g of sk ski ills in term s o of f gain in g know kn ow led ge of t the he latest atest tech ec h n o lo g y,w o rk p pr ractices, and an d co conseq nseq uentl ue ntly,im proved career caree r op oppo po rtu n ities for pe peo o p le u n d ergo in g train in g ,w o u ld create a n atu atur ral in cen cen tive fo r in crea creased sed enr en rolm ent en t in su such ch p pr rog ram s.
• Monetary and progression in ce cen n tive ves s for train ed vis-àvis un unt train ed p erson n el by
companies: For example, prog rogressi ressio n to cert ce rtain leve ev els co cou u ld be linke nked d to to achi a chieve evem m en t of a
particular certication. certication. • Undertaking initiative initiativess to uplift the im ag e o f th e in du stry stry t to o attract ac t sup su perio r talen t
Efciency and
produ pro duct ctivity ivity of enterprises O n th the e in d ivid u alen terp erpri rise fr fro o n t,th ere is qu q u ite a b it servi service p rovid ers a an n d u sers need ne ed to do. d o. T he latt atter s sho ho uld be b e m ore op en an d recep recept tive to the idea de a o f giving vol vo lum e co m m itm ent en ts to to reliabl ab le service provi prov ide rs,w ho ,in tu rn, nee need d to take a lo n g-term view w ith resp respec ect t to in vest ve sti in g in the righ t kin d o f equ eq u ipm en t an d tech n olog y infr nfrast astruct ructu u re an and d be beco com m ing
more efcient in their service delivery. T he ob sessive focu s of s servi ervice u sers on bring ing do w n u nit cost costs s on a piecem eal basi ba sis ne need eds s to to be repl ep laced b y a h o listi stic view o f th eir ow n sup su p p ly chai ch ain s,to en ab le in teg rated rated service
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
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14
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
p rovide rs to de liver ve r savin g s at a t th e syst system em level ve l.S ervice p rov rovi id ers,in tu rn, need ne ed to b e abl a ble to de devel velop enden d-t to-en o-end d prop o sition s an d bu ild the bu sin ess ca case se fo r system -level ev elcost co st savin g s for se servi rvice u sers,in st stea ead d o f cut cu ttin g co corne rners rs (an d com prom ising on qu ality) to m eet cost co st-redu red u ct cti io n targe target ts at a pi p iecem ec em eal ea l level ev el w h ile d rivin g u p th e to talcost co sts s in th e form o f ad m in isteri sterin g m u ltip le d isjo in ted se servi rvice p rov rovi id ers, w asta stage, p ilfera ferag ges, etc. T h ere is cu curr rren en tly lack o f trust b etw een ee n service u sers an and d p rovide rs,w ith u sers dem de m andi an ding con tinu ou s cost reduct ed ucti ion at ind ividu alroutes an and d w areh areho o use level ev els,p artly b ecau ec au se o f lack ac k o f faith in p rov rovid ers’ ab ility to d eliver en d- totoend en d solution s tha that t can address ad dress s syst ystem em cost co sts. s.U sers t the he ref efo o re pref prefer er t to o kee keep p th e ad m in istrat strati io n co cost st of m u ltip le service provi pro vid ers in -h o u se, alth o u g h th is is a n o n -core co re a acti ctivity for the them m. S ervice p ro vider de rs,on the othe other r han d, need com m itm ent ents s on volum e and in teg rated rated o u tsou rcin g co c o n tract racts, s,to b e able to in vest ve st in d eliveri ve rin g th e en d -to en d services req u ired. Th Thi is “ C atch 2 2 ” situ ation ne eds ed s t to o be reso esol lve ved, d, and the service p rovid er an d u ser w illh av ave e to m eet half w ay t to o m ake t thi his happ en.
Policy support for implementation of such su ch in itiatives ve s ca can n b e in th e fo rm o f th e fo llo w in g:
• In cen cen tives ve s fo fo r service p rovid ers th at faci ac ilitate invest ve stm m en ts in en d to -en d a an n d q u ality so sol lu tio n s an and d establ estab lishm sh m en t of in frastructu astructur re th at is alig n ed to th e p peri erishab sh ab le su sup p ply ch ain in stea stead d of p pi iecem ece m eal ea linfrastr astru u ct ctu u re b u ilt at an any y lo ca cati tio n
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
• Innovative and unconventional incen ncent tive m echan ism s to to enco encour urage age servi ser vice user users s to m ove aw ay f fr rom piece ecem m eal ea lto en d-t d-to-en o-en d ou tsou sour rcin g, ther he reby eb y releasi ea sing the pressure o on n cost co sts s at a t th e in divid u al lev eve el( S u ch pressur pressu res a ar re resp respo o n sib le for low qu ality se servi rvices a an n d lead ea d s t to o w astage astage, , dam da m age ag e and a nd ove over rallpo or ser servi vice delivery.)
Some specic policy interventions th at can e en n h an ce e en n terpri erp rise-l se-level ev el
productivity and efciency: ed ucti ion of cust custom om s • R em oval or reduct du ties on im po rted reef eefer er equ ipm ent en t par pa rts to enco e ncourage urage a ass ssem em bly of such eq uipm en t w ithin In dia
• Formulation of standards for refrig erated tran sp refri spo o rtatio n in lin e w ith th e req requ u irem ent en ts of In dian con co n d itio n s on sim ilar lin es to t th he N H B Tech n icalS tan da dar rds for C old S tore C o n structi structio n
• MORTH considering allocation of fasttrack ac k lan e fo r pe peri risha b les to red redu u ce th e tim e reef reefer er con taine rs ne ed to sto sto p at t to o llbo oths in o rd er t to o red u ce w astage
• Increased use of data loggers and o per pe ration alm o nitors t to o sup suppo po rt stri strin gen t fo o d traceab ceab ility an d q u ality norm s
• Reduced import duty on GRP ssheets heets to facilitate the thei ir usa u sag g e, gi give ven n thei the ir en ergy ergy-savin g po ten tial
• Facilitated development and avai va ilab ility o of f Infrastru structu cture re a t airpo rts,e.g e.g .,col co ld ro o m s an a n d d o llies for the m ovem ent of tem per perat atur ureesen sitive cargo fro m airport rpo rt w ar areho eho uses to t the he t tar arm m ac
15
• Permission for movement of non-
Fu rthe rm o re, in suran surance ce for v veh eh icles
hazar ha zardo do us drugs in p passeng assenger er aircra rcraft ft
does not cover any nancial loss due
• Regulatory bodies reconsidering the p rovisio n th at r re eq u ires a n atio n al p erm it g ran ted to ree eef fer t trucks rucks t to o be renew en ew ed annu an nu ally an d perm p erm itting issue o f a p perm erm it for m o re than eigh t years
• Removal of permit license fee for carr ca rri iers o f p erishab sh ab le pr p ro d u cts
• Inclusion of transportation of ag ricul cu ltu ral prod rodu u ce a as s pa part rt of p rio rity se secto ctor r in ag ricu lture
• Extension of custom and excise duties for temperature/energytemperature/energym o nito ring an d op tim ization of gadgets
• Appropriate Appropriate amendments in reg u latio n s to e el lim in ate un unw w arran arran ted 2
rise in th e cost co st of r re eefer tru cks
• Additional Additiona l incentives provided for vehicles with temperature logging/ m on oni itoring eq uipm ent
• Establishment of standards, protocols and guidelines that span rst-mile 2
E xemption from excise duty is available for
co com m pl pleted eted reefer trucks, trucks, but bu t not f for or ind ividu al com po nen ts.Since reefer t trucks rucks are are a ssem bled
according to specic requirements and are not sold off the shelf, availing of excise duty benets is procedurally challenging. Availing intended benets for the sector thus leads to un inten de d cost c ost esca lation that is un av avoi oida da bl ble e if
one wants to gain from the benets provided.
p reco n d itio n in g ,last st-m ile d elive very ry an d an cillary a acti ctivities asso associ ciated w ith th e co ld ch c h ain ,e.g e.g .,p rodu rod u ct-
specic designs for packing houses, ha nd lin g, m on ito ring equ eq u ipm ent en t,etc. etc.
to po w er f fai ailu re,w h ich is a fr freq eq u en t occur occu rrence. en ce. Insu nsur rance an ce com pani pa nies need to co n sider de r am en din g this clause. au se. In du stry stry p articip an ts ca can n facilitate the chan ges m ent enti ioned above b y im p lem en tin g th e follo w in g in itiatives: ve s:
• In trodu rod u cin g p pass assi ive c co o o lin g to se servi rvice the last m ile, and an d use ph ase ch ange an ge
materials (PCMs) and eutectic cells to free in ternal ern alcap aci ac ity o n trucks a n d reduce ed uce their risk and depe de pend nd ence en ce on conne con nect cted ed p ow er for pr pree-de det term ined ne d p erio ds
• Developing integrated packaging sol so lu tio n s tha that t w illen sure su re t th he lo n g evi ev ity of p pr ro d u cts, cts,even eve n if th ey have ha ve t to o be transport an sported ed over lon g d istan stan ces
• Being aware of the specications and sizes zes o of f tran spo sp o rtatio n veh ve h icles to en sure o op p tim alsolu tio n s
• Standardizing vehicle boxes to ensure effect ec tive carriag e of g go oods
• Developing cost-effective refri efrige ratio n syst system em s w ith tem per pe ratur ature e con tro llers t th h ro ug h researc esearch h and an d deve devel lop m ent en t effort orts s
• Enforcing stringent food traceability and an d q ual ua lity norm n orm s to ensu e nsur re im p roved ov ed u se o f col co ld chai ch ain lo g isti stics to en han ha n ce the q ual ua lity of o f foo d item s
Glossary APMC
Agricultural Produce Marketing
CMVR
C om m ittee C en ent tralM o to r Veh V ehi icles R u le
NCCD
N atio n alC en tre fo r Co C o ld -ch chai ain
NHB
developm ent N atio n alH o rticu cul ltu re B o ard
FEHL
Fresh an a n d H ea eal lth y En E n terpr erpri ises L im ited
PPPIAD
Public Private Partnership for Integrated Programme
FDI
Fo reig n D irect In ve vest stm m en ent t
RFID
Radio Frequency Identication
GST
Goods and Service Tax
SSI
S m allS ca cal le In d u st str ries
MOFPI
Ministry of Food Processing Industry
MRH
M in ist str ry of o f R o ad T ran anspo spor rt an and d H ighw ay
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
17
A b out out N C C D N C C D is a no n o da dal lbo dy set up by the G overnm ov ernm en t of Ind ia w ith the a ai im to facilitate cold ch chai ain de deve vel lop m en t across al a llu ser segm en ts t throu hrou gh po licy interven ntervent tion , cap capaci acity bu ilding ,standa an dar rdizat zati ion a nd aw a w areness pr prog og ram s.N C C D includ es m em ber be rs from
private industry, policy inuencers, knowledge partners and other government ag agen en cies.
18
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
Our ofces Ahmedabad 2nd oor, Shivalik Ishaan
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Mumbai 1 4 th Floo r,Th e R ub uby y 2 9 Sen apat apati iB apat M arg arg D adar (W ),M um bai- 40 00 28 Tel: + 91 022 619 2 0000
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Off. Western Express Highway
Chennai Tidel Park, 6th & 7th Floor A B lock (M odu le 60 1 ,7 0 1 -7 0 2 ) N o. o.4 4 ,R ajiv G an dh iS alai,T aram an i C hennai- 60 01 13 Tel: + 91 44 6654 810 0
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Pune C-401, 4th oor Panchshil Tech Park Y erw erw ada ( (N N ear D on B osco Scho ol)
Pune - 411 006 Tel: + 91 20 66 03 600 0
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5 th Flo o r,B lo ck B -2
Nirlon Knowledge Park G oregaon oregaon (E) M um bai- 40 0 06 3 Tel: + 91 22 6192 00 00
Fax: + 91 22 6192 3000 14, Mittal Chambers, 1st oor Opp Inox Mall, Nariman Point M um bai- 40 00 21 Tel: + 91 22 619 200 40
R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
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R efr efri ige rated Transp ortati ortation :bo ttlen eck ecks s an d soluti solution s
Dear Conclave Participants
Greetings!!! We’re glad you were able to join us for the NCCD Conclave on Refrigerated Transportation. Thanks to your participation, the conference was inspiring. Your presence and the interchange of ideas among government representatives, industry colleagues, and all the stakeholders provided valuable inputs regarding bottlenecks faced by the Refrigerated transport industry in our country. We are receiving feedback and emails from some of our participants and thank you for the same. Our next events planned are an education workshops (members only), conclave on cold storages, conclave on best practices and others topics depending on demand as we receive from all of you. This conclave was organized with a fixed aim to understand support needed from NCCD and the policy makers of the Government of India. The brainstorming sessions brought out some vital issues faced by the refrigerated transport sector. The sectors covered included road, rail, air, sea and across associated cargoes of Food (fresh, processed & frozen), f rozen), Pharmaceuticals products and Life Sciences. Those who would like to express other particular points on the bottlenecks faced by [email protected].. Kindly use the this sector, please email your thoughts to [email protected] subject “Reefer bottlenecks”. The report from the conclave shall be emailed to all NCCD members as soon as ready. Others can view a copy from the website thereafter. Again we are thankful to all the delegates for bringing forth the great ideas and opinions on the opportunities and challenges faced by the sector. Picassa or or on Facebook. The pictures from the event can be viewed at Picassa The compilation of the event (video recording and presentations) is available on DVD. To DVD. To order the DVD please send your request – kindly include your return mailing address. Regards !!" $%&'%()'*)( +,-. *'/)0 12)3)0 %3 "%42*
Department of Agriculture & Cooperation
Ministry of Agriculture -
Web:
www.nccd.gov.in Email : [email protected] Tel : +91-11-23061595 Addr :
645, A-Wing, Nirman Bhawan, New Delhi
