The World Logistics Passport (WLP), a major policy initiative established by Dubai to increase trading opportunities between emerging markets has announced India, Indonesia and South Africa as members. They join Colombia, Senegal, Kazakhstan, Brazil, Uruguay and the UAE in a club of trading nations sharing expertise to smooth trade flows around the world.
The WLP creates opportunities for business across Africa, Asia, Central and South America to improve existing trading routes and develop new ones through the world’s first logistics loyalty program for freight forwarders and traders. It overcomes non-tariff trade barriers by fast-tracking cargo movement, reducing administrative costs, advancing cargo information and facilitating movement between ports and air.
Take, for instance, the cargo journey from Jakarta to Johannesburg — transporting high-value, low-weight goods through historically established transport routes in Europe takes considerably longer, and is therefore more expensive — but if the goods pass through Dubai through the WLP, traders can expect to save 25% on freight costs and 10% on transit time moving goods from Indonesia to South Africa.
The WLP has a proven track record. In Dubai, 12 local providers have confirmed more than 50 benefits which have in turn been applied to over 300 traders, accounting for approximately 50% of the emirate’s trade. Since its inception in 2019 — as part of Dubai’s Silk Road strategy to position the emirate of Dubai at the centre of new trade corridors running East and West — the WLP has generated more than AED 3 billion in total trade.
India has become the largest economy to join the WLP to date
The WLP now counts Mumbai International Airport (Chhatrapati Shivaji Maharaj International Airport), Nhava Sheva International Container Terminal (Mumbai), and Emirates SkyCargo in India as well as Nepal as partners.
As a trade enhancing policy initiative, the WLP is closely aligned with the Strategy for India@75 in its aims to boost national competitiveness, increase the efficiency of India’s logistics sector and build tighter economic integration with emerging economies in South and South East Asia.
The WLP now looks forward to welcoming the participation of the Ministry of Commerce & Industry to represent the government’s oversight of local operations, and the CBIC (Customs) as a partner, as well as other regional organisations.
Rizwan Soomar, CEO and MD- Indian subcontinent, DP World said, “As more partners join the World Logistics Passport network in India, the opportunities to reimagine how trade moves from Asia to Africa and Latin America multiply. It is a win-win for business as they join a network of fast-growing mega-hubs around the world which, in turn, will help boost their trade flows.”
Mike Bhaskaran, CEO of the World Logistics Passport said, “The World Logistics Passport increases resilience in global supply chains and removes the barriers that prevent developing economies from trading as freely as they might, which is more important than ever as governments around the world seek to recover from the economic impact of COVID-19.”
“This announcement shows that governments and businesses are thinking differently about how goods and services move round the world, and we are delighted to welcome India, Indonesia and South Africa to the club,” he added.
South Africa signs up to spur intra-regional trade opportunities
The WLP programme is closely aligned with South African National Development Plan 2030, particularly in terms of increasing intra-regional trade and improving trade penetration into fast growing markets in Asia and Latin America.
The Johannesburg Chamber of Commerce has signed a framework agreement with the WLP and bilateral negotiations with the government continue. Joining the WLP will be a key enabler of the African Continental Free Trade Agreement, opening up new market potential among countries in the region.
South Africa has joined the WLP at a time where the country, and broader region, seeks to recover from the economic impact of COVID-19. The WLP will help to achieve the goals in the Reconstruction and Recovery Plan, boosting job creation and supporting export-led growth.
Indonesia the first Southeast Asian nation to join
Indonesia is a strategically important market for the WLP, as it represents a region key to the WLP concept for its fast economic growth driven by manufacturing exports.
The WLP will compliment and reinforce the headline aims of the final stage of the Long-Term National Development Plan (RPJPN), specifically in terms of boosting national competitiveness and higher-wage job creation across all of Indonesia’s varied geographies.
The WLP now counts the Indonesia National Shippers’ Council as a partner, which will provide benefits related to navigating the local market. Last year, the Indonesia National Shippers’ Council signed a Memorandum of Understanding with PCFC in Dubai to realise trade cooperation, thus the registration can be seen as an evolution of an already entrenched and fruitful partnership.
Ecom Express Limited, India’s sole pure-play B2C e-commerce logistics provider as of the Financial Year 2024, has introduced a new brand identity, underscoring its commitment to customer-centricity. This rebranding reflects a focus on addressing specific customer needs, prioritising customer-facing metrics, and integrating innovative technology across its nationwide express logistics network. The goal is to enhance speed, agility, and network reach, ensuring a customer-focused approach. The rebranding includes a dynamic logo and a refreshed visual identity, symbolising Ecom Express’s pursuit of excellence. The new logo features a forward-moving arrow within a square, representing the company’s dedication to delivery. The letter "E" in the logo stands for Expression, Innovation, and Progress, while the bold magenta colour signifies bravery, self-expression, and strength. This vibrant magenta reintroduction reflects Ecom Express's renewed commitment to customers, partners, and team members, as the company aims to simplify and democratise logistics for all. Ajay Chitkara, CEO and MD of Ecom Express, elaborated on the transformation, stating, “Our refreshed brand identity reaffirms our customer-first approach as we continue to integrate technology and innovation to provide reliable, high-speed services with the widest network reach. This transformation also underscores our commitment to our employees and delivery partners, who are essential to our business.” The new logo embodies Ecom Express’s dedication to its core values, focusing on customer welfare and fostering a diverse, inclusive environment. This rebranding signifies a promise to redefine logistics through advanced technology, making life easier for all types of customers.
The Federation of Freight Forwarders’ Associations in India (FFFAI) held its 6th EC Meeting for the term 2021-23 on May 27 and 28 in Bengaluru. The meeting was attended by the Office Bearers and 28 Member Association representative of FFFAI from across the country, there were many issues discussed and updates provided concerning customs, CBLR, EDI, Service Tax/GST, logistics, air cargo, sea cargo, skill development,importance of social media which FFFAI has expanded recently, technology developments, etc. The special focus of the 6th EC meeting was the updates on forthcoming 24th Biennial Convention of FFFAI to be held from August 12 to 14, 2022 in Chennai with the theme LOGISTICS RESHAPE, EMBRACE AND SURGE IN THE DIGITAL ERA. At this EC meeting, FFFAI also implemented Digital Learning platform for members and next generation for e-learning. It has been decided that FFFAI would initiate FIATA eFBL here in India to benefit the trade, which empowers customs brokers, freight forwarders and logistics service providers. In addition, updates on the recently held FIATA HQ Meet was also provided by the concerned members of FFFAI. FFFAI members present at this EC meeting stressed upon enhancing productivity on ICEGATE for trade facilitation and Ease of Doing Business. The FFFAI members also urged for creating a dedicated portal for LSP integration. As regard to skill development initiatives, IIFF’s (training arm of FFFAI) past and forthcoming training programmes (both online and classroom/physical) for the entire logistics industry were presented at the EC meeting. In addition, FFFAI’s various initiatives on capacity building through technology/IT also discussed withadequate importance. Recent activities of FFFAI Women’s Wing including organising interactive meetings with Government of India officials and industry experts were highlighted at this meeting which drew huge appreciation from the members. The members committed to expand the activities of the Women’s Wing in all the 28 member association locations to empower/encourage the women logistics practitioners. At this EC meeting FFFAI has signed an MoU with the National Institute of Industrial Engineering (NITIE) with an objective of skilling the aspiring candidates looking for opportunities in the logistics sector. Notably, a special session was organised at this 6th EC Meeting where N Sivasailam, former Special Secretary (Logistics), Ministry of Commerce, Government of India was present to address the FFFAI members and highlight the recent initiatives of the government in strengthening the logistics infrastructure, thereby leading in increase of international trade through multimodal connectivity and faster cargo clearance. He projected the ambitious growth potential of the logistics industry in India with a strong collaboration between government and industry people. Also speaking on the occasion was Bani Bhattacharya, IRS, who interacted with members of FFFAI on various initiatives of CBIC for the trade facilitation without human intervention. FFFAI Chairman Shankar Shinde thanked all the 28 associations for their support and appreciated the contribution of CBIC/DG systems trade facilitation measures. FFFAI Member Associations are: 1. Ahmedabad Custom Brokers' Association2. Aurangabad Customs House Agents Association3. Association of Custom House Agents Thiruvanthapuram4. Bangalore Custom House Agents Association5. Brihnamumbai Custom Brokers Association6. Calcutta Customs House Agents Association7. Chennai Customs House Agents Association8. Cochin Customs Brokers' Association9. Coimbatore Customs House and Steamer Agents Association10. Custom Brokers Association Hyderabad11. Delhi Customs Brokers Association12. Goa Custom Brokers Association13.Indore Customs House Agents Association14. The Kakinada Customs Brokers Association15. Kandla Custom Brokers Association16. Kanpur Customs Brokers Association17. Ludhiana Customs House Agents Association18. Mangalore Customs House Agents Association19. Mundra Customs Brokers Association20. Nagpur Customs House Agents Association21. Nashik Customs House Agents Association22. Nadia Custom Brokers Association23. Pipavav Custom Brokers Association24. Pune Customs House Agents Association25. Rajasthan Customs House Agents Association26.Tuticorin Custom Brokers Association27.Visakhapatnam Cusotms Brokers' Association28.West Bengal Custom House Agents Society FFFAI welcomes Women in Logistics/Youth in Logistics to participate on FFFAI forums and also invites membership application form logistics service providers in industry as this is a big national and international forum to network.
Building a visionary company requires one percent vision and 99 percent alignment. This analogy resonates deeply when we compare the process of building a company to conducting a symphony orchestra. Just as a conductor leads musicians to create a harmonious masterpiece, a successful business and its management fosters alignment among team members to achieve extraordinary success. In the business world, this vision translates into a clear understanding of where the company wants to go and what it aspires to achieve. The one percent of vision acts as the guiding force that sets the stage for greatness. However, a conductor alone cannot create a symphony. The true magic lies in the collective effort of the musicians, each playing their part to perfection. Similarly, in a visionary company, alignment becomes paramount. Every team member needs to be facing in the right direction, equipped with the right skills, and focused on delivering the right results at the right time. By fostering alignment, harnessing the diverse talents within the team, and continuously fine-tuning performance, savvy teams and visionary leaders carry the potential to transform their companies into harmonious and successful organisations that resonate with greatness. Embracing the power of alignment, inspiring teams with a clear vision, and actively cultivating an environment where every member can contribute their unique talents, RE Rogers India has over the years formed an indispensable pillar of business triumph. Most recently, the company orchestrated a symphony of success handling over 300 events in the fiscal year 2023. Four of these were mammoth events taking place in four different cities at around the same time frame. And these were not merely gatherings, they were milestones. The four gigantic events (CPHI and PMEC 2023 – 28 to 30 November at India Expo Centre, Noida; ENGIMACH 2023 – 6 to 10 December at Helipad Exhibition Centre, Gandhinagar, Gujarat; EXCON 2023 – 12 to 16 December at Bangalore International Exhibition Centre, Bengaluru; PLASTIVISION 2023 – 7 to 11 December at Bombay Exhibition Centre, Mumbai) entailed approximately 650 on-ground manpower, 4300 packages, 370 equipment display, and 3600 vehicles. The symphony of greatness bubbled up in RE Rogers India's operational procedures and functions, and the teams and management leadership soared to create a masterpiece of lasting success as always. "To our heroes who faced the challenges head-on in handling their jobs with total finesse, and to our valuable customers who trusted us blindly during our busiest period pan-India: A HUGE THANK YOU!," the RE Rogers India team was quoted expressing in a LinkedIn post. As the demand for large-scale events and exhibitions continues to rise, the need for comprehensive and reliable exhibition logistics services has never been more critical. In India, where the exhibition industry thrives, one name stands out among the rest — RE Rogers India — who have been delivering unparalleled logistical solutions tailored to the unique demands of the exhibition sector. RE Rogers India have years of first-hand, specialist experience in handling every aspect of exhibitions, ranging from freight forwarding, transportation, customs formalities, secure handling of materials, on-time delivery and site assistance and supervision. Remember that logistics is not just about getting your materials from point A to point B; it’s about ensuring a seamless and stress-free experience for everyone involved in your exhibition, from exhibitors to attendees. So, if you partner with RE Rogers India, you’re not just hiring a logistics company; you’re bringing a dedicated and reliable team on board to ensure your exhibition materials reach their destination in perfect condition and on time. Having served a variety of clients from both the domestic and international arena, the company has developed deep understanding of the unique challenges of delivering time-critical goods in the face of huge crowds, open day pressure, and complex logistical requirements. RE Rogers India fully understands the value of complete exhibition sets in terms of the clients’ reputation and market standing, ranging from trade show booths, exhibits, and other equipment, which include wooden panels, steel frames, prefabricated designs, bunk houses, E-houses, printed material, lights, electronic items and other display resources. The company therefore takes utmost care to pay close attention to critical things like packing, loading, storing, lifting, etc. so as to eliminate any chance of damage. Due diligence is also exercised in choosing optimum and fastest mode of transport to enable the materials to reach the venue well in time, so as to facilitate timely set-up by the clients team at the venue. Post-exhibition, pick-up and delivery back to the shipper is also handled. With RE Rogers India as your esteemed logistics partner, you can focus on wowing your audience and making the most of your exhibition experience. Under the astute leadership of Ravinder Sethi, RE Rogers India is not just reaching new heights; it is setting successive benchmarks. With the innate ability to see through the intricacies and a commitment to perfection down to the minutest detail, Sethi has steered the company towards a trajectory of unparalleled success. His visionary approach complemented by the team's meticulous attention to excellence have become the driving force behind RE Rogers' ascent in the events and exhibition logistics sector. The collective efforts of Sethi and his entire team continue to sculpt a legacy of precision and excellence in the world of logistics that remains exciting, challenging and rewarding.
A significant milestone has been achieved in the Indo-Bangla railway project with the inauguration of the inaugural freight train connecting Bangladesh's Gangasagar to Tripura's Nischintanpur. This momentous event marks a significant step forward in strengthening the rail connectivity between the two neighboring countries. The new railway connection is set to enhance trade and commerce between India and Bangladesh, providing a more efficient and cost-effective mode of transportation for goods. It will not only boost bilateral trade but also promote economic development in the region by opening up new opportunities for businesses and industries. The Indo-Bangla railway project is part of a broader effort to improve connectivity and foster closer ties between the two nations. It is expected to play a vital role in facilitating the movement of goods and passengers, ultimately contributing to the economic growth and prosperity of both countries.
The past decade has been a transformative period for the Indian logistics sector, characterised by a blend of challenges and growth opportunities. Key milestones such as the formal recognition of logistics as infrastructure, the implementation of GST, and disruptions from COVID-19 have reshaped the industry landscape. During this time, technology adoption surged, sustainability became a focal point, and the sector prioritised agility and resilience. As a result, new business models emerged, and the sector registered a growth rate of 8%-9%. Throughout this period of growth, logistics companies have created significant value for their customers by offering innovative solutions, improving efficiency, and providing exceptional service experiences. However, the process of capturing and capitalising on this value is complex, requiring long-term investment and strategic focus. Companies typically follow one of two paths: competitive pricing or superior customer value. Yet, only a few have successfully extracted profits and solidified their competitive position, while others have faced decline. On a broader scale, while the logistics sector has made substantial progress in innovation, infrastructure, and technology, its financial returns and profitability have often fallen short of expectations. The challenge lies in the varied performance of subsegments such as express delivery, e-commerce logistics, and contract logistics. Each of these subsegments faces distinct challenges, influenced by factors such as market demand, regulatory policies, technological integration, and investment levels, leading to diverse outcomes across the sector. India's transportation sector is predominantly road-based, with nearly two-thirds of the market share. Among road logistics, Full Truck Load (FTL) remains highly fragmented, with a minimal presence of organised players. While the market has nearly doubled over the last decade, along with technology adoption in fleet and transport management, startups like Blackbuck have made attempts to drive the sector toward organisation, but no significant breakthroughs have emerged. As a result, FTL has struggled to create substantial value for customers, and profitability within the segment has remained stagnant. The second major segment in road logistics is Part Truck Load (PTL) services, where organised players have made gradual improvements. Companies like VRL and V-Trans India have established a national presence, supported by relevant infrastructure and technology. These organised players have delivered tangible value to customers, improving profitability alongside revenue growth through a cost-conscious approach. Rail logistics, on the other hand, has created significant value in specific subsegments, such as container train operators, private rail operators, and car carriers. While Indian Railways remains the primary infrastructure provider, private players like Adani, DP World, Gateway Distriparks, and Pristine have experienced profitable growth over the past decade. E-commerce logistics has been the most hyped segment in the last ten years. While e-commerce logistics started gaining traction in 2010, it exploded in 2014 with technological advancements and the emergence of new-age companies. This segment has grown into a US$6 billion market, creating immense value by reducing transit times, improving customer service, and offering tech-driven solutions. However, as these differentiators become industry standards, the rate of value creation has slowed. Despite significant investments to achieve profitability, most e-commerce companies are still either EBITDA-negative or marginally positive. While they have made strides in reducing losses, profitability remains below industry benchmarks. The express logistics segment, largely controlled by organised players, has also experienced incremental improvements in service offerings and customer service. Despite challenges such as declining document volumes, slow air cargo growth, and cost pressures, express logistics has achieved double-digit growth. However, the segment has failed to create significant new value, as many differentiators have now become standard offerings. This inability to create and capture value raises concerns for the future of express logistics. In contrast, the contract logistics segment has benefited from complex global supply chains and the post-GST momentum, providing significant opportunities for value creation through optimisation. Organised players, with their advanced solutions, technology, and automation, have been able to capture substantial value in this segment. Overall, while the logistics industry has created value across most of its segments, the ability to capture this value has been suboptimal. Factors such as technological advancements, sustainability trends, and evolving customer expectations will continue to influence value creation. However, value capture will hinge on effective pricing strategies, market positioning, and operational scalability. In the future, a balance between continuous innovation and profitability will be essential for long-term success in the logistics industry. Author: Vikash Khatri, Founder, Aviral Consulting
In a momentous event today, PM Modi inaugurated a 77-kilometer-long section of the Western Dedicated Freight Corridor (WDFC), marking a significant milestone in India's ambitious infrastructure development efforts. The inauguration ceremony, held in the presence of key dignitaries and government officials, showcased the country's commitment to enhancing its transportation network. The Western Dedicated Freight Corridor is a game-changing project that aims to revolutionize India's freight transportation sector. The newly inaugurated 77-kilometer section connects key industrial regions, providing a dedicated pathway for the efficient movement of goods. With this achievement, India takes a major step towards reducing logistics costs, boosting manufacturing, and improving the overall economy. PM Modi, while addressing the audience, emphasized the importance of this project in promoting economic growth, generating employment, and reducing the carbon footprint. He noted, "The Western Dedicated Freight Corridor is a testament to India's vision for a modern and efficient transportation system. It will not only enhance our connectivity but also make us a global logistics hub." The event was attended by several Union Ministers and top officials from the Ministry of Railways, underscoring the government's commitment to accelerating infrastructure development in the country.
TVS Supply Chain Solutions (TVS SCS) announced the expansion of its Centre of Excellence (CoE) by inaugurating a new technology centre in Madurai. The CoE, a core unit of the company's global operations, strengthens TVS SCS' leadership as a technology-led global supply chain player and acts as an important pillar of the company's growth strategy. The company looks to tap into the rich talent available in the region to build on its competitive advantage and aims to double its employees' strength in two years from its current level of 300. The new wing will have a total work area of around 13,000 sq ft and would provide advanced services such as technology product development and deployment; analytics and business intelligence support; and business process outsourcing for its global operations. Thangam Thennarasu, Minister for Industries, Investment Promotion and Commerce, Government of Tamil Nadu; P Moorthy, Minister for Commercial Taxes, Registration and Stamp Law, Government of Tamil Nadu; and Dr S Aneesh Sekhar, IAS, District Collector, Madurai inaugurated the new centre. Commenting on the CoE's expansion, R Dinesh, Executive Vice Chairman, TVS SCS said, "I am happy that we are expanding our operations in Madurai through our Centre of Excellence, which provides specialised services, using technology and data analytics, to our global operations. Being a home-grown organisation, we always wanted to provide opportunities to the local talent here and that's when we started our Centre of Excellence in 2017 with 5 employees. Going forward, CoE will be the hub for all technology developments for our operations globally besides being the back-office capital for TVS SCS." Ravi Viswanathan, Managing Director, TVS SCS said, "The expansion of the CoE facility is a testimony to the value it drives to our operations both in India and globally and helps in being an agile and responsive partner to our customers globally. The CoE today boasts of deep domain depth combined with the latest technology capabilities serving our global customer clientele. Our expansion in Madurai is based on the underlying belief in the rich talent available in the region and be a key driver in realising our vision of being a global leader in the Supply Chain Solutions space." The new technology facility is an ISO 27001:2013 certified and has implemented required information systems, management systems, policies, and procedures to maintain industry standard best practices and applicable controls. TVS SCS' Centre of Excellence in Madurai, established in 2017, has now completed five years and employs over 300 strong workforce of supply chain experts and technology professionals.
Dubai-based DP World and CDPQ, the Canadian global investment group, announced a joint investment of US$5 billion in three flagship UAE assets controlled by DP World. "CDPQ will invest US$2.5 billion in Jebel Ali Port, Jebel Ali Free Zone, and National Industries Park through a new joint venture in which it will hold a stake of approximately 22 per cent (through a sub-concession of up to 35 years) with the remainder of the transaction being financed by debt," according to an official statement from DP World. "Other long-term investors will have the opportunity to acquire an additional stake of up to US$3 billion. The transaction implies a total enterprise value of approximately US$23 billion for the three assets." "The Jebel Ali Port, Free Zone and National Industries Park together form a world-class integrated ecosystem for the supply and logistics chains of over 8,700 companies from around the world, serving more than 3.5 billion people globally. The three assets generated pro-forma 2021 revenue of US$1.9 billion, the statement said. The three assets will remain fully consolidated businesses within the DP World Group, and day-to-day operations, customers, service providers and employees will not be affected," it added. According to the DP Word statement, "Tranche 1 (US$5 billion) of the transaction is expected to close in the second or third quarter of 2022, and tranche 2 (up to US$3 billion) is expected to close during the fourth quarter of 2022." "We are delighted to announce the broadening of our partnership with CDPQ," says Sultan Ahmed Bin Sulayem, Group Chairman and CEO, DP World. "The DP World and CDPQ co-investments have been very successful, thanks to our complementary expertise and long-term investment horizon. We believe this new partnership will enhance our assets and allow us to capture the significant growth potential of the wider region. The transaction also achieves our objective of reducing DP World's net leverage to below 4x Net Debt to EBITDA and this has been achieved despite the challenges of the pandemic and recent global economic conditions." Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure, CDPQ adds, "This investment in Jebel Ali is another great illustration of the partnership between CDPQ and DP World, which now spans four continents and eighteen terminals. Today, we are pleased to deepen our long-standing relationship with a world-class logistics and supply chain operator by investing in this strategic trade infrastructure, one that will play a pivotal role in the evolution of the global economy." "DP World is well positioned to provide innovative solutions to their customers worldwide, and we welcome this opportunity to invest in a best-in-class group of infrastructure that provides CDPQ with exposure to new fast-growing markets and trade routes in Africa and South Asia."
