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Cargo – Retail Perspective
Fortune Jan 2013
Lost in Transit – Quick Facts

   19.75 kmph is the average speed. Maximum speed possible: 120
   kmph
   40% of road traffic on national highways and expressways, which
   form 1.67% of the total road network
   11.52 seconds per km is the average delay on routes which adds to
   costs.
   On the Delhi – Mumbai route the average cost of delay is Rs.122.80
   per hour
   250 – 400 km a day is the average distance covered by a truck,
   compared with 700 km to 800 km per day in developed countries
   5 – 10 minutes Average estimated time to cross a toll plaza. Toll
   expenses for the Delhi – Mumbai and Delhi – Bangalore corridors are
   Rs. 0.19 and Rs. 0.11 per tonne km*, respectively
   3.96 km per litre - The average mileage of trucks on Indian roads.
   Fuel accounts for nearly 50% of trip expenses
   48% - The percentage of total freight that railways carry in the US
   and in China
THE PRICE THE ECONOMY PAYS

  Rs.30,300 crore is the annual cost of road transport delays
  The cost of additional fuel consumption due to delays Rs. 66,000
  crore
  Approximate delay at toll plazas 5 – 10 minutes. Fuel wasted 0.5-1 litre
  per hour
  The stoppage expenses (National average across 17 key routes) in Rs
  16 per tonne per km
  The daily losses due to fuel wastage at toll plazas Rs. 3 – 6 crore. The
  annual losses to road developers Rs. 1,200 crore
  Rs.1.59 per tonne per km is the average cost of freight expenses
  (national average across 17 key routes)
  Source: Transport Corporation of India. IIM Calcutta, fortune India
  research
Key Issues – Indian Road Logistics

               Lack participation of private sector
               Network Connectivity
               Travel time
               Maintainance
               Reliability




5
Reference KPMG analysis
Share amongst different segments of Logistics sector:

         Cargo Share amongst                                  Share in Revenue Generation
          different Segments                                   amongst different Segments
 Civil Aviation
                                                               Civil
 (Negligible)
                                                              Aviation
                                                                1%
                                                                          Railways
                                                                            13%
                         Railways
                                                     Warehousing
                           24%                          37%

                            Major
            Roads
                            Ports                                           Roadways
             55%
                            15%                                               47%

                                                      Ports
                              Minor Ports              2%
                                 6%



                                               Where do we stand Globally ..

          Nearly 70% of domestic freight is    •Indian Railways is 2nd largest in the world just marginally
       carried by the Road segment and         behind China
      the remaining by Rail segment while
        the contribution of the remaining
                                               •Indian Roadways is also the 2nd largest behind U.S which
         two segments is comparatively
                   negligible.                 has 6.4 million km of network.

         International freight is completely   •India has the largest merchant shipping fleet among the
        dominated by Sea Port Segment.         developing countries and is ranked 17th globally.

                                               •Constitutes just 3% of global air cargo.
Quick Facts




Indian Road Network –Annual Growth Rate
Air Cargo - Opportunity

  Time Sensitive – Speed to market

  Inventory holding cost

  Wharehousing cost



  Rs. 10 per kg Is the price at which Drumsticks are sold by farmer in BLR

  Rs.60 per kg is the retail price of Drumsticks at an average supermarket in DEL

  Road – 5 days

  44% wastage - farm produced never reaches the market

  Air Cargo Solution – 24 hrs in the market

  Better price for farmers – inefficiencies more than enough makes it a good
  proposition.
Customised Solution – Fruits & Vegetables

  Farm produce from Bangalore to DEL

   – Drum Sticks - 500 kgs per day

   – Cauliflower – 1 ton per day

  Guvuava from Nagpur – 2 ton per day

  Strawberries from Pune – 400 kgs per day

  Apple from J&K – 1 ton per day

  Pineanple from GAU - pilot to commence

  Pharma

  Dairy Products

   – Misti Dohi from Kolkata – 500 kgs per day
Business Driver

  Fixed cost of the A/c - 25-30%

  With 5-6 ton in belly sapce – commercially viable dedicated
  operations not possible

  Night operations – Pax move during the day/ cargo in the night

  Smart solution without increasing assest base for Jet

  Cargo on SEAT – gets additional 4-5 tons

  Restrcition on types of cargo
Turn empty passenger seats into Revenue
  Night Operations for Mail/Courier service using B737 NG fleet without affecting
  the scheduled operations.

  This will be achieved by using specially designed and manufactured
  passenger seat cargo containers(bags).

  This container meets all Airworthiness , performance and flammability
  requirements as required by FAR 121.285.

  These passenger seat cargo containers are available in 3 configurations have
  decided to use triple cargo seat containers on the economy class triple seats.

  Only Economy Cabin to be used
Regulation
 FAR 121.285 allows carriage of cargo onto empty passenger seats in
 containers.

 The containers meets the requirements of the above regulation.

 Amsafe Bridport Ltd. UK is a DOA and production organization
 approved under EASA/ CAA UK.

 Under this approval Amsafe designs and manufactures Passenger
 seat cargo containers.




 FAR 121.285                EASA Approval             Bridport CAA
Passenger Seat Cargo Containers

  Top open - for convenient cargo loading after installation on the seats.

  Installation time - 5 minutes.

  Independently anchored onto the a/c structure by 4 attachments to the seat
  track

   When fitted in position between 2 rows of seats , the shape is supported by
  two elasticated pockets which are fitted over seat headrests one behind the
  other.

  The upper opening of the container is closed by four flaps.

  The cargo is secured by the fabric of the container and by the straps which
  pass over and around its contours.

  Max load of 225 kg. (equivalent to three adult pax)

  Business class seats are not included in the installation of the seat container.
Passenger Seat Cargo Containers as installed




Product
specifications
Weight: 6 kg
Dim: 1.33mx 0.92m
x 0.93m




14
Passenger Seat Cargo Containers as installed
Passenger Seat Cargo Containers as installed
Passenger Seat Cargo Containers as installed
Passenger Seat Cargo Containers as installed
and loaded
PROCEDURE TO BE FOLLOWED:
 A task card has been introduced to cover the following tasks :

       Installation of Qty 2 cargo kit trolley in G2 and G4B galleys each
       containing a fire suit and qty 3 water type fire extinguisher.

       Installation of the cargo seat bags.

       Precautions to be observed during loading and unloading of courier.

       Location of passenger seats and overhead bin where courier can be
       loaded.

        Load and Trim Sheet has been prepared and submitted for approval
       to DGCA headquarters Delhi.
Cargo Kit Trolley
LOCA




Following cargo will be prohibited in the Main cabin
       No gel / Liquid / Chemicals
       No DGR items, No wooden Box
       No metal box, No perishable items
       No flammable goods
Installation of cargo seat bags will be in the supervision of AME.
Loading and unloading of Cargo will be in the supervision of AME.
Cabin Crew will double check securing of cargo seat bags.
Commitment by Jet airways to

  work with you to customise the solution to your requirement

  Offer best price

  Help find some solutions

  Work together to build pipeline visibility – important

  Scaleup – 40 aircraft

  Look after you as well as your Cargo.
WE CAN’T SOLVE ALL THE
PROBLEM ALONE
Open for discussion :
Arindam Banerjee – 9820108092
Sr GM – Airport Operations & Cargo
Krishnaswamy Rammohan – 9820096431
Sr GM – Crago Sales




 THANK YOU

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Jet airways air cargo retail perspective

  • 1. Cargo – Retail Perspective
  • 3. Lost in Transit – Quick Facts 19.75 kmph is the average speed. Maximum speed possible: 120 kmph 40% of road traffic on national highways and expressways, which form 1.67% of the total road network 11.52 seconds per km is the average delay on routes which adds to costs. On the Delhi – Mumbai route the average cost of delay is Rs.122.80 per hour 250 – 400 km a day is the average distance covered by a truck, compared with 700 km to 800 km per day in developed countries 5 – 10 minutes Average estimated time to cross a toll plaza. Toll expenses for the Delhi – Mumbai and Delhi – Bangalore corridors are Rs. 0.19 and Rs. 0.11 per tonne km*, respectively 3.96 km per litre - The average mileage of trucks on Indian roads. Fuel accounts for nearly 50% of trip expenses 48% - The percentage of total freight that railways carry in the US and in China
  • 4. THE PRICE THE ECONOMY PAYS Rs.30,300 crore is the annual cost of road transport delays The cost of additional fuel consumption due to delays Rs. 66,000 crore Approximate delay at toll plazas 5 – 10 minutes. Fuel wasted 0.5-1 litre per hour The stoppage expenses (National average across 17 key routes) in Rs 16 per tonne per km The daily losses due to fuel wastage at toll plazas Rs. 3 – 6 crore. The annual losses to road developers Rs. 1,200 crore Rs.1.59 per tonne per km is the average cost of freight expenses (national average across 17 key routes) Source: Transport Corporation of India. IIM Calcutta, fortune India research
  • 5. Key Issues – Indian Road Logistics Lack participation of private sector Network Connectivity Travel time Maintainance Reliability 5 Reference KPMG analysis
  • 6. Share amongst different segments of Logistics sector: Cargo Share amongst Share in Revenue Generation different Segments amongst different Segments Civil Aviation Civil (Negligible) Aviation 1% Railways 13% Railways Warehousing 24% 37% Major Roads Ports Roadways 55% 15% 47% Ports Minor Ports 2% 6% Where do we stand Globally .. Nearly 70% of domestic freight is •Indian Railways is 2nd largest in the world just marginally carried by the Road segment and behind China the remaining by Rail segment while the contribution of the remaining •Indian Roadways is also the 2nd largest behind U.S which two segments is comparatively negligible. has 6.4 million km of network. International freight is completely •India has the largest merchant shipping fleet among the dominated by Sea Port Segment. developing countries and is ranked 17th globally. •Constitutes just 3% of global air cargo.
  • 7. Quick Facts Indian Road Network –Annual Growth Rate
  • 8. Air Cargo - Opportunity Time Sensitive – Speed to market Inventory holding cost Wharehousing cost Rs. 10 per kg Is the price at which Drumsticks are sold by farmer in BLR Rs.60 per kg is the retail price of Drumsticks at an average supermarket in DEL Road – 5 days 44% wastage - farm produced never reaches the market Air Cargo Solution – 24 hrs in the market Better price for farmers – inefficiencies more than enough makes it a good proposition.
  • 9. Customised Solution – Fruits & Vegetables Farm produce from Bangalore to DEL – Drum Sticks - 500 kgs per day – Cauliflower – 1 ton per day Guvuava from Nagpur – 2 ton per day Strawberries from Pune – 400 kgs per day Apple from J&K – 1 ton per day Pineanple from GAU - pilot to commence Pharma Dairy Products – Misti Dohi from Kolkata – 500 kgs per day
  • 10. Business Driver Fixed cost of the A/c - 25-30% With 5-6 ton in belly sapce – commercially viable dedicated operations not possible Night operations – Pax move during the day/ cargo in the night Smart solution without increasing assest base for Jet Cargo on SEAT – gets additional 4-5 tons Restrcition on types of cargo
  • 11. Turn empty passenger seats into Revenue Night Operations for Mail/Courier service using B737 NG fleet without affecting the scheduled operations. This will be achieved by using specially designed and manufactured passenger seat cargo containers(bags). This container meets all Airworthiness , performance and flammability requirements as required by FAR 121.285. These passenger seat cargo containers are available in 3 configurations have decided to use triple cargo seat containers on the economy class triple seats. Only Economy Cabin to be used
  • 12. Regulation FAR 121.285 allows carriage of cargo onto empty passenger seats in containers. The containers meets the requirements of the above regulation. Amsafe Bridport Ltd. UK is a DOA and production organization approved under EASA/ CAA UK. Under this approval Amsafe designs and manufactures Passenger seat cargo containers. FAR 121.285 EASA Approval Bridport CAA
  • 13. Passenger Seat Cargo Containers Top open - for convenient cargo loading after installation on the seats. Installation time - 5 minutes. Independently anchored onto the a/c structure by 4 attachments to the seat track When fitted in position between 2 rows of seats , the shape is supported by two elasticated pockets which are fitted over seat headrests one behind the other. The upper opening of the container is closed by four flaps. The cargo is secured by the fabric of the container and by the straps which pass over and around its contours. Max load of 225 kg. (equivalent to three adult pax) Business class seats are not included in the installation of the seat container.
  • 14. Passenger Seat Cargo Containers as installed Product specifications Weight: 6 kg Dim: 1.33mx 0.92m x 0.93m 14
  • 15. Passenger Seat Cargo Containers as installed
  • 16. Passenger Seat Cargo Containers as installed
  • 17. Passenger Seat Cargo Containers as installed
  • 18. Passenger Seat Cargo Containers as installed and loaded
  • 19. PROCEDURE TO BE FOLLOWED: A task card has been introduced to cover the following tasks : Installation of Qty 2 cargo kit trolley in G2 and G4B galleys each containing a fire suit and qty 3 water type fire extinguisher. Installation of the cargo seat bags. Precautions to be observed during loading and unloading of courier. Location of passenger seats and overhead bin where courier can be loaded. Load and Trim Sheet has been prepared and submitted for approval to DGCA headquarters Delhi.
  • 21. LOCA Following cargo will be prohibited in the Main cabin No gel / Liquid / Chemicals No DGR items, No wooden Box No metal box, No perishable items No flammable goods Installation of cargo seat bags will be in the supervision of AME. Loading and unloading of Cargo will be in the supervision of AME. Cabin Crew will double check securing of cargo seat bags.
  • 22. Commitment by Jet airways to work with you to customise the solution to your requirement Offer best price Help find some solutions Work together to build pipeline visibility – important Scaleup – 40 aircraft Look after you as well as your Cargo.
  • 23. WE CAN’T SOLVE ALL THE PROBLEM ALONE Open for discussion : Arindam Banerjee – 9820108092 Sr GM – Airport Operations & Cargo Krishnaswamy Rammohan – 9820096431 Sr GM – Crago Sales THANK YOU