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SLS NEWSLETTER | JULY 2017

JULY 2017

A recent pre-feasibility assessment report on “MMLPs in Hyderabad,”

prepared by KPMG reveals that multimodal logistics parks have been planned to be developed at 35 locations across India by the Ministry of Road Transport and Highways, as a part of the Bharatmala Pariyojana. Hyderabad is one of the fifteen locations planned in Phase 1 of the Bharatmala Pariyojana.

The identified locations near Hyderabad for MMLPs are Bhuvanagiri and Zahirabad. Bhuvanagiri is around 50 km away from Hyderabad and this region is well connected to various seaports by road and rail and will also be nearer to the Airport and manufacturing clusters like Pharmaceuticals and Aero SEZ. Zahirabad is around 100 km away from Hyderabad and National Investment and Manufacturing Zone is approved by the Government of India for development in this region.

The key demand drivers for a logistics park in Hyderabad are: industrial ecosystem, proximity to Hyderabad Airport, access to production and consumption centers in hinterland, ability to connect central India to two large container ports (JNPT and Chennai). The city is in proximity to the mega food park proposed in Nizamabad, the textile park in Warangal spread across 400 acres and pharma city in Mucherla.

Timeline for these logistics parks:June 2017: Completion of pre-feasibility assessmentOctober 2017: Completion of detailed project reportDecember 2017: Invitation of bidsMarch 2018: Appointment of concessionaire

MMLPs in Hyderabad

Our numbers compared to last year in terms of IT growth rates have been impressive. Unofficial figures received from STPI (a government body) and SEZs show we are growing better than national growth rates.

- KT Rama Rao Minister for IT

Telangana has emerged as a leader in the life-sciences sector and has immense scope for further industrial growth. The state has emerged as a hub for logistics and startup development activities. Major companies such as Flipkart, Amazon, NASSCOM, T-Hub have made Telangana a centre for business growth.

- ESL Narasimhan Governor of Telangana

We have made significant progress this year in terms of investments attracted and development of new industrial parks and clusters. We hope to push our small and micro industries through new initiatives such as the Industrial Health Clinic and thereby increase productivity of Telangana in the coming years.

- Jayesh Ranjan Information Technology Secretary

Govt of Telangana

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RGIA begins mango exportsGMR Hyderabad Interna-tional Airport Ltd has started exporting mangoes to South Korea. The initial commercial consignment of 2.5 tonnes was exported for the first time to South Korea through its cargo terminal operated by Hyderabad Menzies Air Cargo Pvt Ltd. RGIA becomes the first airport in India to export mangoes to South Korea directly from a farm-based infrastructure, and export to South Korea is expected to grow up to 10 tonnes per day.

GHIAL and HMACPL teams worked with the farmers in Vizianagaram for develop-ing a pack-house, creating markets, commissioning this project with requisite approv-als from govt and exporting Suvarnarekha variety of mangoes to South Korea.

Centre to fund textile park at WarangalAdditional Secretary to Textiles Ministry, Pushpa Subramanyam has an-nounced that the centre will fund a proposed textile park at Warangal, adding that the ministry is awaiting a formal request in this regard from the Telangana govt. The Centre has prepared a National Textile Policy with an objective of generating $300 billion (over `20 lakh crore) from textiles exports and generating 35 million jobs by 2025.

th JOIN US ON 14 JULY 2017The first-ever logistics conference

in the state of Telangana

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W h e r e s h i p p e r s m e e t s e r v i c e p r o v i d e r s

Distance from Hyderabad (in km)

Seaport Road Rail

Visakhapatnam 623 696

Machilipatnam 342 429

Krishnapatnam 480 638

Chennai 631 777

JNPT 730 745

Mormugao 690 860* With shortest rail and road distances, Krishnapatnam Port is Gateway Port for Telangana Region.

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SLS NEWSLETTER | JULY 2017NEWS

Updates

State govt to prepare logistics policy soon

The Telangana government is mulling a dedicated logis-

tics policy. “Logistics has been identified as one of the priority sectors. We will be preparing a policy for the sector. As of now, the regular incentives that we provide under the industrial policy are available for the sector but we would like to customize certain benefits for logistics players,” Telangana industries department principal secretary Jayesh Ranjan said.

Work on the logistic park (truck terminal) at Man-

galapally in Ibrahimpatnam mandal in Rangareddy district will commence shortly. HMDA has planned two logistic parks on the city’s outskirts, one at Mangalapally and the other at Batasingaram adjoining NH-9. About 35,000 to 40,000 trucks carry around one lakh tonne cargo into and out of the city. These parks will have facilities for truck parking, warehousing apart from dhabas, cafeterias and restaurants, vehicle servic-ing workshops, petrol pumps.

The logistic parks will have parking space for 500 trucks, warehousing facility and cold storage for storing 4,000 tonnes of goods.

The Rajiv Gandhi

International Airport (RGIA) at Hyderabad has drawn up am-bitious plans to emerge as the hub airport for entire south and central India. GMR sees RGIA as a gateway to vast region stretching into northern Karnata-ka, south eastern Maharashtra, Chattisgarh, Odisha and Andhra Pradesh. GMR Hyderabad International Airport (GHIAL) is also aiming at making the RGIA the next big logistics hub. “There is an opportunity to develop dry ports in the vicinity of Hyderabad airport to facilitate air-to-sea and sea-to-air cargo links and

Hyderabad airport to emerge as hub for south, central India

Truck terminalat Mangalapally

gain further advantage and help Hyderabad become a regional hub for cargo business,” said GHIAL Chief Executive Officer, SGK Kishore. The airport has the country’s first modular, integrated cargo facility, which also houses India’s first Pharma Zone. A network connecting cold storages with farms and warehouses will be developed for perishable products.

Expansion in line with growing trade

G Ravi Kumar, CGM, CONCOR – Telangana Region

Concor in the south central region is in an expansion mode mainly to boost the exim traffic. While the phase II of MMLP in Vizag is already operational, a third railway line is planned at Sanathnagar and land acquisition is in progress in Nagulapally, all of this is to accommodate the growth in cargo movement.

only two rakes can be loaded. Currently the utilisation of the existing two lines is more than 100 per cent and so we find it difficult to handle cargo movement in the peak season.

With the third line our operational costs will also come down as the rakes that were not coming to Sanathnagar directly will also start coming. Today the rakes are stationed at Zaheerabad, Bidar and Khanapur area which is hardly 120km away. They are coming to

Q Tell us about your Telangana operations? The Sanathnagar ICD has shown very good improvement in the first two months of this financial year and we expect the trend to continue. We are adding additional features to the Sanathnagar ICD. Currently we are dealing with movement of exim cargo with only two railway lines, but shortly the third line will also get operational in this financial year and with that three rakes can be loaded as compared to the current capacity wherein

secunderabad area but not reaching Sanathnagar. Thus the third line will also help in attracting more cargo.

Q Expansion plans of Concor in Telangana region? At the outer ring road we are having 17 acres of land where we are operating domestic containers for Nagulapally, but the land is not sufficient to cater to the exim traffic. So, 65 acres of land will be added to Nagulapally for developing additional lines and that will give a boost to the exim traffic. The expansion will be complete by next financial year and traffic from here can be dispersed to Karimnagar, Nizambad or Khammam.

Q Your plans to divert road traffic to rail? Majority of the cargo moving from Telangana is handled by us. But still certain amount of cargo is going by road. But all this will change once

GST is introduced. If proper invoicing of cargo is done, then compared to the truck rates, our rates are cheaper. Today truck operators may do the invoicing in a different way to make their rates appear cheaper, but actually it is not so. Irrespective of the cargo, if proper billing is done then definitely rail will be cheaper.

We have extended rail service upto thimmapur private terminal. We plan to have 100 terminals by 2020 so that traders will not have to travel long distances. Today traders from Khammam are coming here, but if a terminal is available to them they need not travel long distances.

Q How is the response to time-tabled freight trains? At Nagulapally we have recorded 28% growth in the first two months of this financial year, basically moving cargo from Delhi to Sanathnagar.

Interview

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SLS NEWSLETTER | JULY 2017

Focus

The Telangana State Industrial In-

frastructure Corp has so far developed 116 industrial parks and in the FY 2016-17, it has allotted land to about 500 industries with an expected investment of `1,000 crore.

Pharma City, Phase-1 is being developed on 8,200 acres, of which, 6,300 acres is already in possession of TSIIC. Genome Valley which has over 200 companies is being expanded with more than 2 Mn Sq. ft. of laboratory/incubation space in partnership with IKP Knowledge Park and MN Park. Medical De-vices Park is being developed in about 250 acres at Sultanpur.

Industrial development in Telangana

Airbus to set up centre of excellence in Hyderabad

Developing Rajanna-Sircilla our priority: KTR

The state government has allocated a budget of `1,200 crore for the year 2017-18 to the textiles sector, comprising of `373.00 crore for handlooms and `827.00 crore for power looms and industrial textiles for modernization of power looms. Among new developments: Ka-katiya Integrated Mega Textiles Park, Sircilla Apparel Park, four Mega Food Parks at Nizam-abad, Gadwal, Khammam, Sangareddy are coming up.

Airbus signed a Memorandum of Understanding for estab-

lishing a Centre of Excellence for aerospace skill development in Hyderabad, together with the Telangana government. The Centre, which will come up at Begumpet Airport, will train candidates ranging from high school graduates to experienced

The state govt has been taking all measures to develop the

newly-formed district by setting up more industries. A food pro-cessing park will come up on 50 acres of land at Narmala village in Gambhiraopeta mandal. Industrial parks are also planned in Pedduru village in Sircilla mandal and Jillela village in

InterviewLife Science Excellence Center near the airport. The 6,000 sq. ft facility is catering to pharma manufacturers in Hyderabad, Goa, Pune, Visakhapatnam and Bengaluru. It will be providing conditioning, preparation and storage facility for pharmaceutical goods and operates as a control tower for Agility life sciences customers in India. The facility also works as a Network Station (NWS) for va-Q-tec, an advanced passive packaging company specializing in high-end, secured cold chain products.

Q How is the cargo growing in this region? What challenges you see?

Hyderabad branch registered one of the fastest growth among all the branches of Agility in 2016. We are seeing some really good volumes out of Hyderabad and neighbouring areas so I can comfortably say this region is doing really well.

Satish Lakkaraju Chief Commercial Officer Agility Logistics Pvt. Ltd.

Q What is your presence and operations in Hyderabad?

Agility Logistics has significant presence in South India region, including Hyderabad. We have two offices for freight forwarding business, one in heart of the city and the other one at the airport. We have a 65,000 sq. ft. warehouse for contract logistics business through which we cater some of the leading companies’ various segments like FMCG, White Goods, Consumer Electronics, etc. In Feb this year we also inaugurated our

One of the major challenges we face at Hyderabad is port to hinterland connectivity, so infrastructure is one issue that needs to be addressed. That said, I have also seen that state government is already up to the task and working on improving the infrastructure.

In terms of air cargo movement, GMR, the airport operator in Hyderabad has made some significant investments to develop world class infrastructure but some more work is required if Hyderabad has to emerge as the hub for Pharma exports. First, we will need a larger pharma zone to handle the surge in volume. It is critical that the area where we build of pallets at the airport is under temperature control completely. Secondly, we need larger screening machines at the airport to ensure cold chain equipment’s like va-Q-Tec are screened easily and do not have to be opened. Also, the Airport

needs to have Cool Dolly like other Airports.

Q What is the temperature sensitive infrastructure available currently? What needs to be done further?

Temperature sensitive infrastructure currently available in the country is not enough. We have taken some actions in our capacity. When we set up the Pharma Competence Center, a temperature controlled facility for ocean shipment, at Nhava Sheva in 2012, we didn’t even have any customers on board; still we went ahead with the development. Now 15+ pharma customers use the facility regularly. Fortunately when we came up with our new facility in Hyderabad, we already had many customers on board. So you see, there is a huge demand for such infrastructure.

“Develop Temperature-Sensitive Infrastructure”

Thangallapalli mandal. KT Rama Rao said the state government has ensured setting up of 58 industries at a cost of `81 crore through TS-iPASS. The com-pletion of the ongoing Mano-harabad and Kothapalli railway line via Sircilla and Vemulawada would result in more develop-ment activities in the district.

aviation personnel on aircraft manufacturing, logistics, Main-tenance, Repair and Overhaul (MRO), ground handling and special aviation processes. The Telangana government will provide space for setting up the Centre and would arrange the initial seed fund for the project.

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SLS NEWSLETTER | JULY 2017

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Gateway Media Pvt Ltd #407, Fifth Floor, Pavani Plaza, Khairatabad, Hyderabad - 500 004, Telangana, India. Tel: +91 40 2330 0061, 2330 0626; Fax: +91 40 2330 0665. www.gatewaymedia.in

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Corporate Affairs & LogisticsHetero Drugs Ltd

The first­ever logisticsconference in thestate of TelanganaTHEMELOGISTICS OPPORTUNITIES IN LAND-LOCKED STATE

JULY 14, 2017 HOTEL PARK HYATT

Supporting Partners Television Media Partner Print Media Partner

09.30hrs Onwards : Registrations

10.00hrs – 11.00hrs : Inaugural Session - Logistics opportunities in a landlocked state

11.00hrs – 11.30hrs : Tea & Coffee Break

11.30hrs – 13.30hrs : Keynote Session - Enabling Smart Logistics in Telangana

13.30hrs – 14.30hrs : Lunch Break

14.30hrs – 16.00hrs : Business Session 1 Sea Cargo

16.00hrs – 16.30hrs : Tea & Coffee Break

16.30hrs – 18.00hrs : Business Session 2 Air Cargo

18.00hrs – 19.00hrs : Networking Over Cocktails

19.00hrs – 20.30hrs : Smart Logistics Awards

20.30hrs Onwards : Networking Cocktails Dinner

Programme*i

nvi

ted

SMART LOGISTICSH Y D E R A B A D 2 0 1 7

W h e r e s h i p p e r s m e e t s e r v i c e p r o v i d e r s

Mr Prabhakar VennetiVice President(Commercial)

ITC Paperboards and Specialty Papers

Ms Vinita VenkateshDirector

Krishnapatnam Port Container Terminal

Mr Madan Mohan ReddyChairman, Pharmaceuticals Export

Promotion Council of India

Dr Ravi Prakash MathurSenior Director Supply Chain -

Head of Logistics, Central Planningand Corporate Sourcing Dr Reddy's Laboratories

Mr Samir J ShahChairman, Federation of FreightForwarders Association in India

CVD Ram Prasad Director

Software Technology Parks of India

Mr Satish LakkarajuChief Commercial Officer

Agility Logistics Private Ltd

Mr Vinay Kumar P COO

Greenko Energies Pvt Ltd

Mr Ravinder ReddyDirector Marketing

Bharathi Cement CorporationPrivate Limited

Dr Rakesh P SinghChairman, Institute of Supply Chain

and Management Pvt Ltd

Mr Mahesh BhalgatChief Operating Officer

Sanofi India Limited

Mr Bankey Behari Agrawal*Principal Commissioner

Hyderabad Customs Commissionerate

Mr M Jayant Tagore* President, Bulk Drugs

Manufacturers Association of India

Mr N Krishna KumarVice President - South India

MSC Agency (India) Private Limited

Mr Hemanth DPChief Operating Officer

GMR Airport Sector

Mr Raj KhalidIndia Representative

Port of Antwerp

Mr G Ravi KumarChief General Manager

Container Corporation of India Ltd

Mr Laurence JacobiCargo Manager - TS & AP

Emirates Sky Cargo

Mr Ravinder BolangdyCEO, Hyderabad Menzies

Air Cargo Pvt Ltd

Mr Srinivas BandaVice President, IL&FS Maritime

Infrastructure Company Ltd