magazine of the international federation of freight...

Magazine of the International Federation of Freight Forwarders Associations

No. 124 | September 2018

INDIAA warm welcometo the FWC 2018

RAP & UNESCAPSuccessful meetings inBusan, hosted by KIFFA

VICE PRESIDENTAdelaide Yangenjoys training

MEET YIFFY 2018Four regional winnerswill be in New Delhi

document5809824044142432414.indd 1 14.08.2018 07:58:58

We care for your cargo.swissworldcargo.com

How we contributeto the successof cancer research.Recently we transportedsome 2°C to 8°Ctemperature-sensitivebiotech productsin special boxes fromSan Francisco to aSwiss laboratory wherecancer drugs areprepared to improvepatients’ quality oflife worldwide. This isjust one of the manysuccess stories we sharewith our customers.

document3595323771861599119.indd 2 14.08.2018 07:59:01

No. 124 | September 2018 FIATA REVIEW 3

CONTENTS

Provider of theFIATA Group Bond

Programme

Avalon’s programs are designed specifically for internationallogistics providers and our products and services are tailoredfor FIATA members. In addition to the FIATA Group BondProgramme, we also offer the following:● Forwarder’s Liability Insurance● Errors & Omissions Insurance● Surety Bonds● Cargo Insurance

● Business Insurance● Claim Handling &

Subrogation Services

Contact us at [email protected] +1 847 700 8176.

www.avalonrisk.com

EXCLUSIVEEditorial5 From the President’s Desk

The YIFFY Award finalists6 Which of the four

candidates willmake it in New Delhi?

Country Report10 India –

ambitious plans for theintegrated development ofthe logistics and forwardingsector to 2022 and beyond

Also a call for peace12 RAP and UNESCAP meetings

held in conjunctionin Busan, Korea

Second joint conference14 Utikad hosts OSJD-FIATA meeting

in Istanbul on ‘CombinedTransport Coordination’

Unified Railway Law in the making16 Experts meet in Geneva

Personally17 Meet Adelaide Yang –

Vice President of FIATA

Here & There / Agenda18 Obituary19 Happy Birthday!19 Forthcoming Events / Masthead

FIATA SecretariatSchaffhauserstrasse 104CH-8152 Glattbrugg/SwitzerlandPhone +41 (0)43 211 65 00, Fax +41 (0)43 211 65 [email protected], www.fiata.com

CoverThe holy city of Varanasiwith its ghats onthe bank of theriver Ganges.Photo: iStock /narvikk

document3595323771861599119.indd 3 14.08.2018 07:59:03

THE LARGEST AND MOST INFLUENTIAL BUSINESS PLATFORM IN THEWORLD FOR THE FREIGHT AND LOGISTICS INDUSTRY

CAPE TOWN AND THE CONGRESS VENUE

Situated on the southeastern tip of Africa, at the foot of the iconic Table Mountain,

Cape Town is undoubtedly one of the world’s most beautiful cities. It is also a melting

pot, where East meets West in Africa, and the resulting blend is a fascinating mix of

cultures, flavours, and history – a diversity that is easily seen in the faces of its people,

their languages, architecture, and food. It’s easy to see why Sir Francis Drake, when he

circumnavigated the globe, described it as “the fairest Cape of them all”.

The Congress will be held at the Cape Town International Convention Centre (CTICC),

a modern, world-class conference venue conveniently located on Cape Town’s

foreshore. Adjacent to the popular V&A Waterfront and the central business district,

the CTICC is within walking distance of many leading hotels.

LEARN, UPDATE YOUR KNOWLEDGE, IMPROVE YOUR SKILLS

A comprehensive programme with sessions and content delivered by renowned

industry thought leaders will present innovative, interesting, relevant, and at times,

controversial, discussion on topics including:

• Management of transport

• Customs-clearing documentation

• 3rd-party payments and international supply chain

• The role of the freight and logistics industry in international trade

• Port health: marine, land, aviation

• Regulations and permit systems

• Border legislation

• Vocational training of staff across the spectrum of industry operations and

international recognition of qualifications

• And more…

The International Federation of Freight Forwarders Associations (FIATA), with the South AfricanAssociation of Freight Forwarders (SAAFF), is pleased to announce that the 2019 World Congress will take

place in Cape Town, South Africa from 1 to 5 October 2019.

ONLINE REGISTRATION opensin September 2018

REGISTER to join thenetworking opportunitieswith freight forwarders fromaround the globe andexperience one of the mostbeautiful cities in the world.

REGISTER

REGISTRATION OPENS26 September 2018

EARLY REGISTRATIONRATE ENDS: 30 April 2019

EARLY ACCOMMODATIONRATES END: 30 April 2019

STANDARD REGISTRATIONRATE ENDS: 31 Aug 2019

IMPORTANT DATES

CONTACT USFIATA World Congress 2019 Organiser: T +27 (0)21 683 2934 E [email protected]

www.fiata2019.org

document3595323771861599119.indd 4 14.08.2018 07:59:03


FROM ThE pRESidENT’S dESk

four winners will be invited to introducethemselves and their dissertations in theFIATA regional meetings on the first dayof the FIATA World Congress. I wouldinvite you to listen to their speeches andget to know these outstanding youngforwarders.On 22nd June, the FIATA Region AsiaPacific Field Meeting was held in Busan,hosted by our member the Korea Inter-national Freight Forwarders Association(KIFFA), also the host of the FIATAWorld Congress 2020. I was impressedby the organisation of the field meetingand the diligent work of KIFFA, whichhas the full support of their governmentauthorities in South Korea. I am veryconfident that with such dedication, theFIATA World Congress 2020 in Busanwill be a great success.Between 11th and 12th of July 2018,FIATA and OSJD held the secondmeeting on ‘Combined TransportationCoordination’ in Istanbul, with the lo-cal host being our FIATA AssociationMember UTIKAD. 55 delegates from18 countries participated. The four pan-els hosted under the main theme of ‘NewOpportunities in Europe–Asia–EuropeMultimodal Transport’ discussed vari-ous issues, such as the current status ofthe Southern Corridor, development ofcombined and multimodal transport, thefuture of Asia–Europe railway routes andthe legal status of the Baku–Tbilisi–KarsRailway Line, etc.We also interviewed another lady VicePresident of FIATA, Mrs Adelaide Yangfrom Chinese Taipei. Adelaide is passion-ate about training and education in theindustry; you can read more about herstory in this edition.

Best regards!

Babar BadatPresident of FIATA

Welcome to the September editionof FIATA Review. The FIATA

World Congress 2018 will be hosted from26th to 29th September, in New DelhiIndia, a city with long history, uniqueculture and new economic vitality. I lookforward to meeting you in various busi-ness sessions and networking events co-hosted by our FFFAI friends in India. Acountry report on India in this editionwill introduce you the current economicstatus of this country and its logistics andfreight forwarding industry.As is tradition, I am very glad to an-nounce the four regional winners of theYoung International Freight Forwarder ofthe Year Award (YIFFYA) 2018, an awardsponsored by the TT Club. This year, thewinner of the Region Africa Middle Eastis Ms Tjaka Segooa of South Africa, inthe Region Americas North and South itis Ms Kendyl Baptiste of Canada, in Re-gion Europe Mr Louis Perrin of UnitedKingdom and in Region Asia Pacific MsSarah Kate Skrypec of Australia. It is in-spiring to see that three of four regionalwinners are ladies.I personally find the dissertations of theseyoung forwarders very innovative and in-teresting. They discussed the transporta-tion of cargo that is not often seen in themarket and therefore becomes a challengefor logistics, such as iceberg water for pro-ducing high-quality alcohol, a 2.3 tonnewhite rhinoceros, heavy and oversizedbulk cargo like power transformers, nu-clear power plant equipment and aircraftparts for an Airbus A400M, as well ashumanitarian aid cargo. Reading fromtheir dissertations you can tell the cha-racter of the new generation of freightforwarders; they enjoy challenges, havea deep source of observation and under-stand logistics issues and bottlenecks. All

Dear friends and colleagues,

document3595323771861599119.indd 5 14.08.2018 07:59:04

NEWS – YIFFY AWARD

6 FIATA REVIEW No. 124 | September 2018

YOUNG INTERNATIONAL FREIGHT FORWARDER OF THE YEAR

Meet the YIFFY AwardRegional Winners

ily agree with this statement, a number of industrieshave to make sure that they attract enough profes-sional offspring. Certainly, the freight forwardingsegment is one of the industries which constantlyhas to convey the message to youngsters of how at-tractive its business really is and what career oppor-tunities it can offer. One of the instruments to thisend is FIATA’s YIFFY Award for young profession-als in the freight forwarding industry. Come to theFIATA World Congress in India and get to knowthe four regional winners in person!

Another round for the Young

Freight Forwarder of the Year

Award: who of the four regional

winners will make it to the top?

Franklin D. Roosevelt said that “wecannot always build a future for our

youth, but we can always build our youthfor the future.” Though everyone will eas-

Kendyl Baptiste has been workingin the transport industry for ten

years. Her first experience was a sum-mer student job at Shipco TransportCanada (Toronto), a neutral NVOCC,helping with filing, documentation andshipment tracking from 2008 to 2012.She was afforded the opportunity towork as a full-time ocean import cus-tomer service representative at ShipcoTransport after obtaining a bachelor inPhysical and Health Education at theUniversity of Toronto.

In 2014, Kendyl was offered a posi-tion with the ocean import team at Bol-loré Logistics Toronto (known as SDVLogistics at the time). Working as afreight forwarder, she was able to increaseher knowledge in ocean imports. Afterone year of service she was promotedto join the customer service team andworked closely with the company’s keyaccounts, sales and management teams.

This new role allowed her to expand herknowledge base and skills, by taking onocean quoting and learning air freighthandling and quoting. Kendyl went onto obtain her Canadian InternationalFreight Forwarders Association (CIFFA)Certificate in 2016, receiving the JobNicolai Education Award for highestmarks in the process. In 2017, Kendylcompleted the CIFFA Advanced Certi-ficate, again receiving the highest marksaward, the George Kuhn Award for Ex-cellence. In October 2017, she was pro-moted to interim Customer Service TeamLead, covering her supervisor’s maternityleave. Due to an influx of new businessand re-structuring within the branch,Kendyl was promoted to Ocean ImportSupervisor in April 2018.

ALSO HUMANITARIAN AIDHer first dissertation, entitled ‘HeavyEquipment for a Nuclear Power Plant Ex-

Kendyl, from Toronto, Canada.

Pho

tos:

iSto

ck/F

IATA

pansion in Canada’, details the complexi-ties faced when arranging and executing alogistics plan to move oversized breakbulkcargo across the globe. At the request ofthe client, the Canadian Nuclear Gene-rating Station, a transportation solutionwas required to import a 100 MT sta-

REGION AMERICAS NORTH AND SOUTH WINNER

Ms Kendyl Baptiste, CIFFA

document2178896809195168605.indd 6 14.08.2018 07:59:20


YIFFY AWARD – NEWS

Representing the Asia Pacific regionthis year is Sarah Kate Skrypec, a

young and enthusiastic freight forwarderfrom Melbourne, Australia.

For someone so young, Sarah hasamassed an inspiring range of industryqualifications. Having started her careerjust four days after completing her finalyear of high school studies, she passedan impressive number of specificallytargeted nationally-recognised industryqualifications. On top of her Diplomaof Customs Broking and her Diploma ofInternational Freight Forwarding, com-pleted through the International Tradeand Logistics College (ITALC), Sarah hasalso completed an advanced Certificatein Transport and Logistics (majoring inWarehousing and Storage), a Diploma ofLogistics as well as a Diploma of Sustain-ability, via the Kangan Institute, and isalso IATA certified in Dangerous Goods.These qualifications were obtained whilstworking full-time throughout her careerover the past nine years.

Sarah is also someone who will berecognised in the future by her peers inthe industry for her contribution to rai-sing the profile of the international tradesector in Australia. Currently workingas a Customs Compiler and Classifier atVisa Global Logistics, the winner of the2017 Australian Freight Forwarder of theYear award is striving to develop a strong

stance within the freight industry andcontinues to throw herself eagerly intonew challenges.

DISSERTATION ON ANTARCTICWATER & WHITE RHINOCEROSHer dissertation is broken into two com-plex shipments; the import of 6000 litres oficeberg water sourced from the Antarctic,for the purposes of producing high-qualityalcohol: and the export of a 2.3 tonneSouthern White Rhinoceros for breedingpurposes, as part of a global conservationprogramme.

The first section of the dissertationfocuses on the complexity of a shipmentthat has no standard commercial sale, notrue value for customs purposes and nostandard commercial documentation.

Before booking the client’s cargo andprior to export from Chile, checks weremade regarding the import requirementsin Australia. These checks establishedthat an Import Permit for biologicalproducts (non-standard goods) neededto be applied for and approved prior toimport into Australia, and assistance wasprovided to the client to apply for this.Upon arrival, a sample needed to be ana-lysed for quarantine purposes, to confirmthe goods were in fact water. The goodsunderwent heat treatment to be releasedfrom ‘Biosecurity Control’ and were thenreleased to the client.

The second section comprises the exportof a rhinoceros from Australia to NewZealand by air. The animal is intendedfor breeding purposes. Amongst the chal-lenges presenting themselves were con-siderations of quarantine risks in bothsending and receiving countries, due tostrict biosecurity standards in each, cratechallenges for the transportation of sucha large animal, documentation require-ments covered under the Convention onInternational Trade in Endangered Spe-cies of Wild Fauna and Flora (CITES),permit validations, veterinary require-ments, sedation and medication. Uponarrival the rhinoceros was subjected tophysical and documentation inspectionsto meet ‘biosecurity authorisation’, be-fore he could finally be transported to hisnew home in Auckland Zoo.

These shipments illustrate the degreeof diversity freight forwarding has to face.

Sarah, from Melbourne, Australia.

tor from EXW door Lubliniec, Poland,to Tiverton, Canada. An examination ofthe possible methods of transport, a routestudy, logistic execution plan as well as arisk analysis were carried out. The bestoption to move the 100 MT stator wasa combination of short-haul trucking,barge and vessel transport.

Her second dissertation, entitled‘The Challenge of Shipping Humani-tarian Aid Cargo to the Central Afri-

can Republic’ outlines the uniquechallenges encountered when shippingto an underdeveloped country. Trans-porting humanitarian aid is unique,as the shipments’ destinations are ina state of crisis. Banditry, corruption,violence, poor road conditions, anddifficult weather contribute to thecomplexity of executing a transportand logistics operation. Ongoing riskanalysis must be conducted. Speci-

fically, this paper looks at the multi-modal transport of humanitarian aidunder DDP terms in containers fromdoor Toronto, Canada, to four remoteCAR locations – Bangassou, Rafaï,Zemio and Mboki. It explores the vari-ous options available to transport theaid to southeastern CAR, includingby truck, barge, small aircraft and airdrops. Each method has its own risks,challenges and expense.

REGION ASIA PACIFIC WINNER

Ms Sarah Skrypec, CBCFA

document2178896809195168605.indd 7 14.08.2018 07:59:20


NEWS – YIFFY AWARD

From winning First place in the 2008National Maths and Science Com-

petition Award, to winning the Region-al Young Freight Forwarder of the Year2018, Tjaka continues to challenge thestatus quo of every learning and deve-lopment opportunity. As a BSc (Hons)graduate with undergraduate speciali-sation in Urban Design and Civil En-gineering, Tjaka is currently pursuingher Master’s Degree in Operations andSupply Chain Management through theUniversity of Liverpool.

The feisty young engineer joined Bid-vest Panalpina Logistics three years agoas part of a Business Development teamserving clients, providing support to thetender team, and actively managing andpreparing tender submissions under theguidance of the Supply Chain Manager.Tjaka learnt how to apply engineeringprinciples to the management of globalsupply chains and these abilities led toher moving into the organisation’s ware-housing division at one of BPL’s leadingFMCG clients.

WHAT IS SHE UP TO NOW?As a world affairs enthusiast, Tjaka hasbeen avidly following the US-Chinatrade war, which is thought to have suchadverse global effects that it may lead toworld recession. When asked about herthoughts on the effects it may have onfreight forwarding, she proclaimed thatthis aspect of world economic policy ispretty interesting. How can two countrieshave such a major effect on the prospectsof shared wealth in an open market?

South Africa strives to developfriendly trade agreements so that one daywe will sail the seven seas, shipping ourSouth African products proudly. Tjakashares her sentiments with the mass ofSouth Africans who, because of the sanc-tions prior to 1994, were subject to puni-tive trade barriers, whose brunt was ulti-mately borne by the man and woman inthe street. She sees that freight forwarding

stands a better chance of flourishing whenopen trade policies apply, and countriesjoin forces – as in the African Continen-tal Free Trade Area recently adopted bythe majority of the continent’s countries.

With a more than full-time job, a de-manding university schedule and strongfamily commitments, Tjaka still makestime to give back to the community.She is a part-time volunteer at Johannes-burg Zoo. She also tutors mathematics,sciences, economics and accounting to

complex for national traders. This in turnaffects South African freight forwarders,as they are employed to negotiate thesecomplexities for them.

Presently, the value of South Africa’sexports and imports roughly equatesto 60% of South Africa’s GDP and istherefore the most significant part ofthe South African economy. This evi-dences the fact that South Africa is anopen economy; because of its openness,the country offers itself to larger volati-lity, as the local economy is in a greatpart influenced by global economiesand events.

Tjaka’s winning dissertation presen-ted an airfreight export commodity thatwas made up of an abnormally-sizedconsignment of aircraft parts for an Air-bus A400M from South Africa to Ger-many, and a sea freight import commod-ity of a temperature-controlled 6M FCLSTC of six pallets of carbon compositesfrom France to South Africa.

The two commodities of interestwere chosen based on their special re-quirements in respect of their perishabi-lity, packaging, handling, shipping andregulatory challenges. The export ship-ment had an abnormal length and wastime-sensitive, and the import shipmentwas temperature-controlled with shorttransit, shelf and out-lives. While theexport commodity showcased the coun-try’s technical capabilities, the importcommodity explored strategic responsesand demonstrated how modern techno-logies cannot be taken for granted.

Tjaka’s paper evidenced that, irre-spective of the type of industry, freightforwarding can be a very intricate re-sponsibility with an extensive amountof documentation often needed; a soundknowledge of shipping law and practiceand working knowledge of internationalcustoms’ regulations is also critical. Com-munication between different key stake-holders and authorities is vital to ensuresmooth end-to-end movement.

Tjaka, from Johannesburg, South Africa.

school-children orphans and those whoseek guidance. She enjoys reading novelsand writing poetry, as well as listening tojazz or classic music.

THE WHEEL OF THE SOUTHAFRICAN ECONOMY

Recognised as the most untappedmarket in the world, Africa has become avery attractive marketplace, coupled withhuge opportunities to do business. Sub-Saharan Africa embraces ten of the fastestgrowing markets in the world (whetherSouth Africa still holds the key to logisticsaccess is questionable). As the new glo-bal legislation and other local transportregulation revisions are underway, inter-national trade is becoming increasingly

REGION AFRICA/MIDDLE EAST WINNER

Tjaka Segooa, SAAFF

document2178896809195168605.indd 8 14.08.2018 07:59:20


YIFFY AWARD – NEWS

Louis is truly passionate about his joband the logistics and transport in-

dustry. He feels that each day presentsnew challenges and opportunities. He isextremely grateful for the opportunity ithas provided for him to travel around theworld, which has enabled him to learnfrom and work with great people fromvarious cultures and backgrounds.

Starting in the warehouse withHemisphere Freight Services Ltd to hismost recent role as company director,the career of Louis Perrin in freight for-warding and logistics has been a hugelyrewarding journey. Over time, as hisrole within the warehousing team grewand he completed his degree in Logis-tics and Transport, Louis found thathe was receiving the ideal groundingin both the company and the industryas a whole. Gaining crucial experienceof how the company operated fromthe ground up – with the warehous-ing team so integral to so many of theircustomers – he grew to understand theday-to-day operations of the businessand worked with individuals through-out their team; building relationshipsand helping wherever he could.

Louis’s hard work eventually re-sulted in one of their high-profileclients recommending that he took onthe management of their warehousing,fulfilment and distribution, due to hisknowledge of the ins and outs of theiraccount. Time spent working in theImport Operations and Ocean Salesteams followed, before Louis’s projectmanagement experience led him tothe Projects Team where he was peer-nominated for promotion to Head ofProjects. This is a role of which Louisis particularly proud. During the threeyears as team leader they secured someof the biggest contracts Hemispherehas seen to date, including one contractwhere the team’s logistics solutionsprovided significant cost savings on aproject of major strategic importance

to the Turkish government. By deliver-ing on-time and on-budget and to thecomplete satisfaction of both the clientand the end user, they also secured thesecond phase of the project. Across thedepartment, through focusing on spe-cialisation and securing diverse projectsacross a range of different industries,they managed to build sustainable busi-ness that led to a revenue increase from£1.185 m in 2013/14 to £2.062 m in2016/17 for the projects team.

Over the past year, Louis hasmoved into a director role. During hisbrief time as a director so far, Louis hasrelaunched the company website andmarketing tools to truly demonstratetheir capabilities. He has also been atthe forefront of opening Hemisphere’sfirst office in China, to enhance clientdoor-to-door experience, and broughton board a number of talented newteam members, who they believe willtruly help to enhance the services thatthey offer clients.

Louis is also working hard to developthe IT infrastructure within Hemisphere,to enable the team to focus less on ad-min. His aim is to also develop a moretransparent, informative, and live view oftheir supply chains, to enhance informa-tion exchange, logistics products and ulti-mately, client experience.

However, most of all, Louis would liketo provide education, training and de-velopment opportunities to both exist-ing team members and young peoplein schools and colleges. Via graduateschemes and further training, he hopesto enhance the professional and person-al development of both newcomers andtheir existing team, and promote the in-dustry to the next generation.

FROM SUPER GRID TRANS-FORMERS TO SUPERCARS‘From Super Grid Transformers to Super-cars’ is an exploration of the complexitiesthat impact global logistics and transportoperations, especially during large projectmoves. Using two very different case stu-dies, Louis Perrin demonstrates the impor-tance of freight forwarders and the valuethat they can add to an industry on theverge of a technological evolution.

The paper looks at the transport ofa huge 180,000 kgs power transformerfrom Korea to the United Kingdomand juxtaposes it against the shipmentof a beautiful Bugatti Chiron, worthin excess of US$ 3 million, from theUnited Kingdom to Saudi Arabia. Bothprojects came with their own challengesand complexities beyond any currentsoftware system or automation. Onlyby the unique experience and insightfrom the team involved could theyovercome these challenges and deliverexceptional solutions.

This deep dive into two specificand unique cases breaks down the pro-cess from the initial requirement phaseand walks the reader through the tai-lored solution needed to complete thejob, highlighting the importance of thefreight forwarder at every stage.

By breaking down the intricacies ofproject logistics, Louis hopes to provethat the future of global logistics is one tobe welcomed, and establish the vital rolepeople and relationships play in the move-ment of goods around the world.

Louis, from Ipswich, United Kingdom.

REGION EUROPE WINNER

Louis Perrin, BIFA

document2178896809195168605.indd 9 14.08.2018 07:59:20


COUNTRY REPORT

Pho

tos:

FIAT

A;i

Sto

ck/E

XTR

EM

E-P

HO

TOG

RA

PH

ER

TARGETS SET TO REDUCE LOGISTICS COST

Logistics driveseconomic growth

Today, the Indian logistics sector isa sunshine industry and is going

through a phase of rapid transform-ation. The country’s position in theWorld Bank’s Logistics PerformanceIndex (LPI), in terms of its overall lo-gistics performance, improved from the54th rank in 2014 to 35th in 2016, dueto initial efforts by the Government ofIndia (GoI), such as the ‘Make in India’programme and improvements in theinfrastructure, along with the emer-gence of skilled professionals. In fact,India improved its tally in all six com-ponents of the LPI. It also registered anoverall 30-point rise in the World Bank’sEase of Doing Business Index (EoDBI)in 2017, compared to 2016. Now, itranks 100th in this index.

As per the Economic Survey 2017–2018,the Indian logistics sector provides a livelihood to more than 22 million people. Improving the sector would facilitate a 10%decrease in indirect logistics cost, leading to a growth of 5–8% in exports. TheIndian logistics market is worth aroundUS$ 215 billion over the next two years,compared to about US$ 160 billion currently. The boom in the next couple of yearsis expected largely due to the implementation of the Goods and Services Tax (GST).

InvestMents In LOGIstICsThe Indian freight transport market isexpected to record a compound annualgrowth rate (CAGR) of 13.35% by calendar year (CY) 2020, driven by growthin the manufacturing, retail, fastmoving

consumer goods and ecommerce sectors.The freight transport market in India isexpected to be worth US$ 307.7 billion from CY 2015 to 2020. In India,road freight accounts for around 63% ofthe total freight movement, carried outby 2.2 million heavyduty trucks and0.6 million light trucks annually. Theroad freight movement is expected toregister a CAGR of 15% over the next

the outlook for the Indian economy in general and its logistics

sector in particular is positive. the Government of India (GoI) is

pushing investment in infrastructure and has established a new

Logistics Division in the Department of Commerce, in order to

ensure the integrated development of the sector to 2022.

InDIA – FACts & FIGUres

A kaleidoscope of traditions, culture and vibrant regions, India speaks foritself as a soul-stirring journey. India is best known as the land of opportunities.

Official Name Republic of India

Capital New Delhi

Form of government India is a federal state with a parliamentary form of government

Area 3,287,263 sqkm

Coastline 7,517 km

Population 1,324,171,354

Major trading partners US, UAE, Hong Kong, China, Singapore, UK, Germany, Vietnam,Bangladesh, Belgium, Italy, Malaysia, Nepal, Netherlands, Saudi Arabia.

document2278250976429937125.indd 10 14.08.2018 07:59:24


RUBRIK

five years. Sea freight accounts for around9% of the total freight market and ismainly used as a major mode for importsand exports. Air freight makes up about1% of the total freight market in Indiaand is projected to register a CAGR ofaround 12.5% over the next five years.

India spends around 14.4% of itsGDP on logistics and transportation,compared with less than 8% by otherdeveloping countries. According to Assocham, India can save up to US$ 45 billion, if logistics costs are brought downto 9% of the country’s GDP, thereby making domestic goods more competitive inglobal markets.

To alter the country’s logistics landscape, the government has taken a number of decisions. The GST regime iscertain to expedite faster conversion ofinformal logistics setups to formal ones,and speed up freight movement at interstate borders, due to the dismantling ofcheck posts. There is a target to reducelogistics costs in India from the present14% of GDP to less than 10% by 2022.

the integrated development of the logistics sector through policy amendments,infrastructural development, tax reformsand technology adoption will certainlydeliver desirable results. It will enhancetrade competitiveness, create jobs, shootup the country’s performance in globalrankings and pave the way for India tobecome a logistics hub. Such measureswill also contribute to creation of a newIndia by 2022, as envisioned by thePrime Minister of India.

FFFAI As representAtIveThe Federation of Freight Forwarders’Associations in India (FFFAI) is theapex body and the sole representative of28 member associations from all overIndia, representing 6,500 Customs Brokers (employing over 110,000 people). Inaddition, organisations that are directlyor indirectly connected with freight forwarding, shipping and commerce are alsoassociated with the FFFAI.

Sources: NITI Aayog, The Economic Times, Wikipedia

A national committee headed by a Cabinet Secretary is in place to develop a panIndia road map for trade facilitation.

A new Logistics Division has beenestablished in the Department of Commerce, to coordinate the integrated development of the sector by way of changingpolicies, improving existing procedures,identifying bottlenecks and gaps, andintroducing technologybased interventions. The GoI’s commitment towards

India is a huge country and is becominga major destination for import and exportbusiness. There are lots of Indian ports,which contribute substantially towardsIndian import and export business.

Indian Railways’ Chhatrapati Shivaji Maharaj Terminus inMumbai, a UNESCO world cultural heritage site.

document2278250976429937125.indd 11 14.08.2018 07:59:25

RAP And UnESCAP mEEtingS


More thaN 100 participaNtS at the 12th rap MeetiNg

Keeping connected tomarket developments

This year’s FIATA Region Asia Pacific Field Meeting (22 June 2018),

which was held in conjunction with theUNESCAP Conference (21 June 2018)for the 12th time, convened in Busan,Republic of Korea.

The Chairman of the FIATA RAP,Mr Chris Kanter welcomed 88 participants from the hosting country and40 more from 13 countries or regions ofthe Region Asia Pacific. Attendees wereable to experience the superior qualityof the events, which were hosted by theKorea International Freight ForwardersAssociation (KIFFA).

These events, which included aGala Dinner sponsored by KIFFA, gave

a very positive impression and a mostpleasant anticipation of the FIATAWorld Congress 2020, which will beheld in the impressive, dynamic andwonderful city of Busan.

The 12Th RAP MeeTingIn his introduction Kanter said: “In ourindustry, changes are coming faster thanever, and this also has transpired in thevarious recent FIATA events, and aswell in the previouslyheld UNESCAPConference. Nowadays we all have todeal with many changes and challengesin the modes of transport, e.g. drones.Ecommerce affects all of us and hasquite a big impact to our industry. It is

very important that these developmentsare taken up closely during FIATAevents. If this is not done thoughtfully,our industry will lose its connection tothe market. There is a big developmentthat can be achieved in the logistics industry, which connects to ecommerce.The challenges encountered shall befaced successfully.”

Member regions and countries haveto work closely with their governments,because the government has to preparethe regulations and the procedureswhich will support development, Kanteradded. He felt that in many countries ofthe RAP it has not yet developed withthe speed that is needed.

The combination of FiATA’s Region Asia Pacific Field Meeting with the UneSCAP conference in

Busan proved to be a success. A large number of participants took up the invitation of the Korea

international Freight Forwarders Association (KiFFA), amongst them the FiATA President.

More than 88 Korean and over 40 international delegates convened in Busan, republic of Korea.

pho

to:F

iata

document5025408464020247418.indd 12 14.08.2018 08:12:10


RAP And UnESCAP mEEtingS

On behalf of FIATA the Chair welcomed notable guests from the Republic of Korea and from the RAP. Themeeting was honoured with the presence of the following, to name just afew of many more.

honoRARy gUeSTS– Mr Kim, Se Yeon, Congressman of

the Republic of Korea– Mr Jee, Jong Chul, Director Gene

ral, Ministry of Land, Infrastructureand Transport

– Mr Song, Sam Jong, Director General, Busan Metropolitan City

FiATA PReSidenCy– Mr Babar Badat, FIATA President– Mr Huxiang Zhao, Immediate Past

President of FIATA

FiATA exTended BoARd– Mr Byung Jin Kim, the hosting

Chairman of KIFFA– Mrs Adelaide Yang– Mr Stanley Lim, Chairman Congress

Committee– Mr Krishnan Chelliah

time, a President of a country pledgedthe government’s full support for theFIATA World Congress 2020, in a videopresentation.

PeACe on A gloBAl SCAleThe whole event with its content ofspeeches and presentations felt the spiritthat was expressed as well by Mr Jee,Jong Chul, Director General, Ministry ofLand, Infrastructure and Transport. “Theworld has been paying close attention toour country recently, with the historicPanmunjom Declaration of the NorthSouth Summit, and later with the historicTrumpKim Summit, held in Singapore.”

They were now expecting peace ona global scale, starting first with the Korean Peninsula. This mood of peace theyhope will lead to expansive cooperationbetween the two Koreas and the promotion of exchanges between other affiliating nations.

FIATA is grateful for the hospitality,support, contribution and assistance itreceived from the Korean InternationalFreight Forwarders Association (KIFFA)in arranging this meeting and in makingit so successful.

– Mr Thomas Sim – Chairman ABVT– Mr Suwit Ratanachinda, FIATA

Honorary Board Member– Mr Pierre Chartier, UNESCAP

Chief Transport Infrastructure Section Transport Division

Welcome messages were receivedfrom the Honorary Guests listed above,followed by the welcoming words of theFIATA President and the KIFFA Chairman, Mr Byung Jin Kim.

KoReA SPeCiAl SeCTionThe Chairman maintained the RAPmeeting with important and interestingpresentations, including a Korea SpecialSection that was moderated by Dr Choi,Hyungrim, the Dean of DongA University. Besides engaging in the usualnetworking opportunities, delegates alsodiscussed current themes and receivedor exchanged information on current regional and global issues. It is selfevidentthat, within the wellchosen location, bilateral exchanges also continued beyondthe boundaries of the meeting.

Participants were able to witness apremiere in FIATA’s history. For the first

the traditions of the host country go hand in hand with the hope for a permanent peace agreement in the Korean Peninsula.

pho

to:K

iFFa

document5025408464020247418.indd 13 14.08.2018 08:12:10

Second joint conference


UTIKAD HOSTED OSJD-FIATA MEETING IN ISTANBUL

Status of railway transportfrom an Eurasian perspective

55 delegates from 18 countries representing state railways, terminal ope

rators and privatesector stakeholdersdiscussed developments, opportunitiesand constraints of the future of Asia–Europe railway routes, under the meetingtheme ‘New Opportunities in Europe–Asia–Europe Multimodal Transport’.OSJD was represented by Mrs ZubaidaAspeyeva, Chairperson of the OSJDCommission for Freight Transportation,while FIATA was represented by twoSenior Vice Presidents: Dr Ivan Petrovand Mr Turgut Erkeskin.

This was the second CombinedTransportation Coordination Meetingheld by FIATA and OSJD, an initiative

launched last year. 55 representativesfrom 18 countries gathered at the OSJD-FIATA Combined Transportation Coor-dination Meeting in Istanbul, to evaluatethe problems of railway transport onEurope–Asia–Europe routes and studyproposals for solutions.

Representatives of Austria, Azerbaijan,Belarus, Bulgaria, China, Czech Republic,Georgia, Switzerland, Italy, Kazakhstan,Lithuania, Moldova, Poland, Russia, Slo-vakia, Turkey, Ukraine and Vietnam staterailways and private-sector stakeholdersattended the two- day event and discussedthe current status of railway transport inthe Eurasian region. The OSJD-FIATACombined Transportation Coordination

Meeting started on the 11th of July, withspeeches by OSJD President ZubaidaAspayeva, FIATA Senior Vice Presidentand UTIKAD Vice President Mr TurgutErkeskin, FIATA Senior Vice Presidentand Chairman of FIATA Working GroupRail, Dr Ivan Petrov.

Following the opening speeches, themain topic of the first panel, modera-ted by Dr Ivan Petrov, was ‘MultimodalTransport in the Eurasian Railways’.The panel assessed the current status ofthe Southern Corridor, extending fromEurope to Iran and from Iran to China,in addition to the facts and expectationsfor the development of Eurasian trans-port corridors.

FIATA (International Federation of Freight Forwarders Associations) and OSJD (Organisation for

Cooperation of Railways) held the second meeting on ‘Combined Transportation Coordination’ at

the Crowne Plaza Hotel in Florya, Istanbul, on the 11th and 12th of July 2018. The two-day event

was hosted by the Turkish Forwarders’ Association UTIKAD, the Associate Member of FIATA.

document2985286184402444369.indd 14 14.08.2018 07:59:10


Second joint conference

COMbIneD eFFORTSThe second panel, entitled ‘Combinedand Multimodal Transportation Applica-tions and Expectations’, was moderatedby OSJD Freight Forwarding Commis-sion Chairperson Zubaida Aspeyeva.The panel discussed the experience ofinternational organisations in the fieldof development of combined and multi-modal transport; challenges and practi-cal solutions in combined Europe–Asia–Europe multimodal transport; containertrain operations of railway operators,transport companies; and interactionswith national shipping agencies andassociations.

On the second day of the OSJD-FIATA Combined Transportation Coor-dination Meeting the intense interest ofattendees continued. OSJD Transporta-tion Policy and Development StrategySpecialist Zurab Kozmava was the mode-rator of the first panel on the 12th July,about ‘Facilitating Border Crossings inCombined and Multimodal Transport’.The panel discussed the use of informa-tion technology; exchange of electronicdata; the use of documents in all pro-curement processes; benefits gained fromthe use of OSJD documents (SMGS andCIM-SMGS documents); and strategicissues to be developed for effective logis-tics solutions.

Turgut Erkeskin, FIATA Senior VicePresident and UTIKAD Deputy Direc-tor of the Board, moderated the lastpanel, entitled ‘Legal Status of Baku–Tbilisi–Kars Railway Line, includingRailways of Azerbaijan, Georgia andKazakhstan Customs Administrations’.The panel discussed the capacity of theSilk Road to reach Europe from China,Southern Asia, Southwest and SoutheastAsia through the Black Sea and CaspianSea regions; hopes of providing addi-tional flow for work areas and cargo;and Europe–Asia–Europe traffic on theroute passing through the Caspian andBlack Sea regions.

ROOM FOR DevelOPMenTThe panel also evaluated the reasons forthe failure to reach the expected transitfreight traffic with the opening of Tur-

it was also mentioned that the route isvery useful for goods arriving in Turkeyand destined for Southern Europe andNorth Africa via the southern Turkishport of Mersin.

At the end of the interactive panels,question and answer sessions started.It was stated that a report, to be for-mulated as a result of the coordina-tion meeting, with the proposals of theparticipants after the current situationevaluations are received, will be sharedwith the sector. In addition, it was sta-ted that UTIKAD’s participation in theevent, organised every year by OSJD-FIATA, will be beneficial for the sector.UTIKAD was represented by Mr Ibra-him Dolen, Member of the board ofDirectors, and Mr Cavit Ugur, GeneralManager of the association.

key’s Baku–Tbilisi–Kars line. It is saidthat the Northern Corridor passingthrough Russia for trade between Chinaand Europe has developed very muchand is actively used; in the Middle Cor-ridor, cargo is forwarded through theCaspian region to the Black Sea andEurope, instead of through Turkey. Rea-sons given by representatives of differ-ent countries was that there was igno-rance of the fact that the route passesthrough Turkey; delays in passage atVan Lake and Marmara regions of theCentral and South Corridors for cargocoming from China and connected toTurkey via Caspian Sea. For this reason,it was emphasised that this route is pre-ferred, although the 30% of total costof the line from Europe to Iran arisesfrom the Black Sea passage. However,

The facilitation of border crossings was one of the major subjects of the conference.

Turgut Erkeskin (left) and Ivan Petrov. Debating the capacity of the Silk Road.

Pho

tos:

UTI

KA

D

document2985286184402444369.indd 15 14.08.2018 07:59:14


Railway law

A draft URL Consignment Note could soon be prepared for the planned pilot project.

Pho

to:F

IATA

RePoRT oN UNeCe GRoUP oF exPeRTS MeeTING IN GeNevA

URL is a work in progress

During the past 16 sessions the Grouphas agreed on a draft version of Uni-

fied Rail Law (hereinafter URL). Thisversion combines the current regulationson contracts for the carriage of goods byrail in both OTIF-CIM (Uniform Rulesconcerning the Contract of InternationalCarriage of Goods by Rail) and OSJD-SMGS (The Agreement on InternationalGoods Transport by Rail).

However, differences still existamong Member States in the Group onthe way forward for this draft to becomea regionally/globally-binding legal frame-work, namely whether the current URLversion is adequate to perform rail trans-

port along Europe–Asia corridors, andwhether issues such as dangerous goods,use of freight wagons, rail infrastructureand rolling stock should be added to it.

The 17th Session focused on discuss-ing administrative issues of the Group,such as the length of the Group’s mandate,the nomination of a Vice Chair and workplans for the following sessions. The Ger-man Railway, Deutsche Bahn, was invitedto introduce the planned pilot project,which was intended to test the feasibility ofprovisions in URL and to design a modelConsignment Note. DB mentioned that adraft URL Consignment Note could soonbe prepared for the pilot, based on the ex-

isting CIM/SMGS Consignment Note.However, in order to convince clients tojoin the pilot, relevant railway and cus-toms authorities along the pilot route needto confirm their support for such pilots.

After the discussionit wAs decided, Amongother issues, thAt– The railway companies will draft a URL

Consignment Note and try to start areal pilot project as soon as possible.This draft will be used as the basis forOSJD and CIT to finalise the formalConsignment Note at a later stage.

– The following railway corridors will beconsidered for pilot tests: Germany–Poland–Belarus–Russia, Azerbaijan–Georgia–Turkey, Turkmenistan–Iran–Turkey, and China–Austria blocktrains.Relative authorities will be contactedfor their support to the pilot. Experi-ence of these pilots will be included inthe report of the Group to UNECEWorking Party on Rail Transport(SC.2) in November 2019.

– The Group secretariat will draft a reporton the advantages and disadvantages ofdifferent ways for the current URL tobecome a regional/international rule.The ways include, but are not limitedto, URL being approved by UNECEas a regional convention; URL to beapproved by both OTIF and OSJD,so that it can be binding for MemberStates of both organisations; URL to beapproved as a model law, etc.

FIATA supports UNECE’s effort toaddress the long-standing problem of twoseparate legal regimes for rail transporton the Eurasian continent, to enhancethe competitiveness of railway transportcompared to maritime, road and air ser-vices in terms of legislative uniformity.This is an encouraging attempt that willbenefit the Eurasian railway transport inthe long term.

from the 9th to 11th of July 2018, fiAtA attended the 17th ses-

sion of the unece group of experts towards unified railway

Law at un headquarter in geneva, switzerland. the group was

established by a unece working Party on rail transport (sc.2) in

2009, to unify railway laws in the pan-european region, and es-

pecially to bridge the differences between the two legal regimes

of cotif-smgs to promote eurasia railway transport.

document3747706811242001523.indd 16 14.08.2018 07:59:21


Personally

VICE PrESIdENt YaNg: INduStrY aS a gatEwaY of world trENdS

“Think ahead of customers”

If you had not joined the transpor-tation business, which professionwould you have chosen (and why)?I guess that I might be a teacher, becauseI enjoy sharing and delivering knowledge to people. He who teaches, learns.I always believe that service begets happiness. To be able to help others means weare blessed and should be grateful.

So what fascinates you about thefreight forwarding industry?The freight forwarding industry is veryinternational and thus we are able tocatch up with world trends and never gettired of it. There is always something newfor you to learn, to challenge!

And what was the motivation toaccept your post with FIATA?When I was a child, my dream was to bea diplomat. I think my post with FIATAplays a more important role than beinga diplomat, as it enables me to promoteglobal exchange in the freight forwardingindustry. Meanwhile, continued trainingto bring more young people to join thisindustry is our commission.

How do you view the state of theindustry today?It has been very difficult for the industryin the past few years. Over capacitiesare always an issue. Nevertheless, thereare still some logistic operators runningvery successfully, even in times like these.Every cloud has a silver lining. I firmlybelieve that innovation is the catalyst forsuccess in the supply chain.

What changes would you like tosee taking place?Discipline and innovation – which somehow correspond with the previous answer. With discipline in mind, there willbe less vicious competition; whilst withinnovation to create demand we wouldfind a better way for logistic operators.

Looking at the future, what ad-vice would you give a young per-son joining the industry today?Never stop learning and always try to becreative – innovation again! Think aheadof your customers. Put yourself in yourclient’s shoes to find his needs.

Generally speaking, what, in youropinion, has been mankind’s bestinvention (and why)?I think the internet has dramaticallychanged people’s life in many ways. It

makes people’s communication far easierthan before. It also expedites business inthe logistics environment.

Which famous person would youlike to have met (and why)?Ha ha, it would be Herbert von Karajan,the conductor of the Berlin PhilharmonicOrchestra, because I like the style withwhich he interprets classical music.

Do you have any unfulfilled wishes(professional or personal)?Both on the professional and personalsides, I count myself lucky to be in thepresent situation. On professional side Ihope that I can continue to contributeto this industry where possible. On thepersonal side I would like to spend moretime with my family and promote QiGong to more people around the globe,helping people get healthier!

What plans do you have for thefuture, or for your retirement?Continued training and learning in theindustry! Lifetime learning is my goal. Asfor retirement, I guess that I might wantto be a Qi Gong coach, helping peoplelive a healthier life.

She’s an English major, but more like a sponge keen to absorb broad fields of knowledge; used to

attending law, non-life insurance and maritime law courses; is learning pipa (a classic Chinese musical

instrument) and Qi Gong (slow exercises), etc. Nevertheless, her career spans over thirty years serving the

shipping industry and solving its claims. Starting from 2003, she was a FIATA course trainer in IOFFLAT,

later in TILSCA, TAFLA and TFLA in Taiwan. It is her great honour to be elected a FIATA Vice President.

adelaide Yang banks on lifetime learning.

Pho

to:f

Iata

“I believe thatservice begetshappiness.”

document8244664273633825681.indd 17 14.08.2018 07:59:26

18 FIATA REVIEW No. 1XX | Month 2017

OBITUARY

ObituaryDr Milos PohunekFIATA was sad to learn that Dr MilosPohunek, a knowledgeable and respec-ted member of ABLM, passed away inJuly 2018.

Dr Pohunek first built his career withinthe monopolistic structure of Czecho-slovak transport industry. He joinedABLM in the 1990s and participatedin several projects over the years thatstill benefit FIATA today, such as theformulation of FIATA Model Rulesand the drafting of FIATA documents.Dr Pohunek’s commitment to FIATAremained remarkable. Despite the stateof his health he still joined us in theHeadquarters Session this March.

document7230486422915161661.indd 18 14.08.2018 07:59:06


HERE & THERE / AGENDA

6–7 September 2018

Prague, Czech Republic

Working Group Road Transport

28–30 March 2019

Zurich, Switzerland

FIATA Headquarters Session

Forthcoming EventsBi-monthly magazine of FIATA, the InternationalFederation of Freight Forwarders Associations

Circulation 8250 copies

Published by FIATA, the International Federationof Freight Forwarders Associations

Articles written by outside contributors do notnecessarily reflect the views or policies of FIATA.Intellectual property rights for contributedmaterial must be met by the contributors.

EditorFIATA, the International Federationof Freight Forwarders AssociationsSchaffhauserstrasse 104CH-8152 Glattbrugg/SwitzerlandTelephone +41 43 211 65 00Fax +41 43 211 65 [email protected]

Advertising salesFIATA Secretariat, telephone +41 43 211 65 [email protected]

ProductionDesign and printing:Swiss Professional Media AG, Basel

CopyrightNo article may be reproduced by any means in wholeor in part without the written permission of FIATA.

NEXT EDITION

DECEMBER 2018

Happy Birthday!FIATA congratulates two well-known delegates on their birthdays.We wish them many more years of good health and happiness.

Mr Colin S. Beaumont celebrated his 75th birthdayon 1 September 2018. Since 1996, he has been a FIATADelegate. In 2001 he became Chairman ABPR, and hasbeen an Honorary Member of FIATA since 2006.

Mr Valeri Alisseitchik (Russian Federation) celebrateshis 80th birthday on 7 October 2018. He has been aFIATA Delegate since 1984, was FIATA Vice Presidentfrom 1999 until 2004, and became an Honorary Mem-ber of FIATA in 2005.

Pho

to:i

Sto

ck/r

clas

senl

ayou

ts

document7230486422915161661.indd 19 14.08.2018 07:59:07

THE LARGEST AND MOST INFLUENTIAL BUSINESS PLATFORM IN THEWORLD FOR THE FREIGHT AND LOGISTICS INDUSTRY

CAPE TOWN AND THE CONGRESS VENUE

Situated on the southeastern tip of Africa, at the foot of the iconic Table Mountain,

Cape Town is undoubtedly one of the world’s most beautiful cities. It is also a melting

pot, where East meets West in Africa, and the resulting blend is a fascinating mix of

cultures, flavours, and history – a diversity that is easily seen in the faces of its people,

their languages, architecture, and food. It’s easy to see why Sir Francis Drake, when he

circumnavigated the globe, described it as “the fairest Cape of them all”.

The Congress will be held at the Cape Town International Convention Centre (CTICC),

a modern, world-class conference venue conveniently located on Cape Town’s

foreshore. Adjacent to the popular V&A Waterfront and the central business district,

the CTICC is within walking distance of many leading hotels.

LEARN, UPDATE YOUR KNOWLEDGE, IMPROVE YOUR SKILLS

A comprehensive programme with sessions and content delivered by renowned

industry thought leaders will present innovative, interesting, relevant, and at times,

controversial, discussion on topics including:

• Management of transport

• Customs-clearing documentation

• 3rd-party payments and international supply chain

• The role of the freight and logistics industry in international trade

• Port health: marine, land, aviation

• Regulations and permit systems

• Border legislation

• Vocational training of staff across the spectrum of industry operations and

international recognition of qualifications

• And more…

The International Federation of Freight Forwarders Associations (FIATA), with the South AfricanAssociation of Freight Forwarders (SAAFF), is pleased to announce that the 2019 World Congress will take

place in Cape Town, South Africa from 1 to 5 October 2019.

ONLINE REGISTRATION opensin September 2018

REGISTER to join thenetworking opportunitieswith freight forwarders fromaround the globe andexperience one of the mostbeautiful cities in the world.

REGISTER

REGISTRATION OPENS26 September 2018

EARLY REGISTRATIONRATE ENDS: 30 April 2019

EARLY ACCOMMODATIONRATES END: 30 April 2019

STANDARD REGISTRATIONRATE ENDS: 31 Aug 2019

IMPORTANT DATES

CONTACT USFIATA World Congress 2019 Organiser: T +27 (0)21 683 2934 E [email protected]

www.fiata2019.org

document7230486422915161661.indd 20 14.08.2018 07:59:08

magazine of the international federation of freight...

Documents