The Air Cargo Agents Association of India (ACAAI), the only national association representing the Air Cargo Industry in India, is holding its 42nd annual Convention in Ho Chi Minh City next week (December 16-19, 2015).
Just In Time
The meeting comes at an appropriate time. While on one hand, air cargo growth remains stymied, putting stakeholders under immense pressure, on the other hand opportunities are opening up or are in the process of opening up with Prime Minister Narendra Modi’s ambitious ‘Make in India’ move.
It is this move that ACAAI wants to get next to and expand; hence, the theme for the convention is:
‘Make in India - Local is now global.’
The ‘Make in India’ initiative has the potential to transform Indian business and industry into global enterprises.
For its part, the government of India is keen to ensure that the processes required to kick start this initiative are in place.
To begin with, the challenges—and indeed, there are many, starting with a change in regulations and development of proper infrastructure to simplifying the rules for doing business—have to be overcome.
Challenges Noted
ACAAI understands that to ensure the success of the ‘Make in India’ initiative, what is of utmost importance is a national logistics strategy that will help in the transformation of the country into a global manufacturing hub.
As Hemant Bhatia, President, ACAAI, put it, “There are multiple challenges which have to be tackled on a war footing to expeditiously implement this program. The elimination of regulatory impediments; simplification of rules, regulations, and procedures; abolition of obsolete practices; and development of infrastructure are only a few of the changes which will be essential in this regard.”
Bhatia went on to point out that “at our convention, we shall be deliberating and evaluating how our industry can capitalize on this unique opportunity for growth.
Not All Business
Needless to state, business must be complemented by pleasure.
Accordingly, there will be adequate scope for fellowship, sightseeing, shopping, and other recreational activities for the participants and their spouses in Ho Chi Minh City.
The convention will also provide ACAAI members to discuss trade opportunities with their Vietnamese counterparts.
High On Vietnam
Sunil Arora, ACAAI’s Convention Chairman, said, “Vietnam is a growing economy. It has come up with sound infrastructure in such a short time. The rapid growth of Vietnam’s export-oriented manufacturing sector has boosted demand for logistics services. Hence, the destination will also complement the theme.”
However, before the Prime Minister-backed initiative takes off in earnest, the air freight sector has to counter challenges at hand. These, of course, include the obvious infrastructure.
Added to that are skill development, regulations, procedures, and mindsets.
Matter of Issues
S. L. Sharma, Member, Board of Advisors, ACAAI and Immediate Past President of the Association said that the main issues that ACAAI members would like to have raised during the Convention were:
- Simplification of Custom Rules & Procedures
- Reduction in Dwell Time
- Skill Development
- Provision of World Class Standard Infrastructure
- 24/7 Clearance
- Setting up of Air Freight Stations
ACAAI would like to know the latest status of these issues from the Ministry of Civil Aviation.
Sharma went on to say that ACAAI supported the government’s keenness to establish Manufacturing Hubs and to set up Air Freight Stations under the ‘Make in India’ program.
“Our government is very keen to make our industry attain high standards which will improve the growth of various products. “There is also the need to transform the country into a global hub since efficient logistics do not just reduce transportation costs, but help in decreasing the overall production costs.
“The modalities, processes, and evaluation of bringing improvement and growth in our industry that demand immediate attention will be deliberated and interacted during the convention,” said Sharma.
Overall, he said, the steps towards ‘ease in doing business’ have to come in so that “we are able to compete in the global market.
“Much needed are tax reforms and highway corridors that will reduce transaction costs.” ACAAI, Sharma insists, is also keen that the Ministries of Finance, Commerce and Civil Aviation should promptly take up the issues raised by ACAAI and ensure the implementation of their decisions within a timeframe.
The Foreign Legion of Aircraft
With only foreign carriers operating cargo flights, air cargo stakeholders point out that India’s shippers have no other option, but depend on them.
“That is why there are a large number of stakeholders who believe that domestic air cargo should be nurtured first,” was one comment.
“There is, therefore, a demand that the development and enhancement of capacity of domestic air cargo be a focus area in the Civil Aviation Policy.”
In fact, J. Krishnan, an air cargo veteran and former President of ACAAI had stated that the country should have a prominent flag carrier for this purpose.
“Until India creates a sustainable and robust international logistics player, there will always be a threat to economic security.
“With a national player, the country’s exports can move to CIF (Cost, Insurance, and Freight) terms and not the present FoB (Free on Board) term, which indirectly supports foreign interests.
“China, for example, has its own strong shipping and airline network,” Krishnan said.
Shah Looking Ahead
Samir J. Shah, Chairman, Federation of Freight Forwarders' Associations in lndia (FFFAI is the apex body and the sole representative of 27 Member Associations from all over India, representing 5,000 Customs Brokers), is looking forward to the convention and its outcome. He believes that “ACAAI has played a major role as one of the important associations in the Indian logistics fraternity for many years and air cargo holds the key to growth of an economy.”
He pointed out to the ACAAI President that “your members service this mode of transport with finesse and professionalism” and FFFAI cherished its association with ACAAI and looked forward “to many interactions and joint action for the overall growth of the logistics industry in India.”
Tirthankar Ghosh |
