CEO Speaks - Hyderabad Menzieshyderabadmenzies.com/images/news_letter.pdf · Finally transshipment...

Rajiv Gandhi International Airport, Shamshabad-500409 Tel No: +914066977036, Fax No:+914066977050 Website: www.hyderabadmenzies.com

INDEX CEO speaks-1 Joint venture-2 Facilities-3 Site map-4

Cold storage facility-4 Service offered-5 Business philosophy-6 Learning&sharing-7 Performance awards & Staff day out - 8 Airline customers-9 Customer Satisfaction

Survey-10 Survey results-10, 11 & 12 Statistics- 13 & 14 Together we fly-15 Helping hands-15 Trade blog-16 & 17 Service standards-18

India rates us economical-18 New initiatives-19 Key contacts-19

Conclusion-20

CEO Speaks

We have much to be proud of as we reflect on what we have achieved over the last two years and going forward, following detailed discussions with our airline customers and trade partners, we have been able to envisage the future needs of the market. This insight has driven and continues to drive our pursuit in the delivery of

world class service in our cargo terminal today and to better plan for the added market requirements from the terminal in the years to come. Despite the global recession we have seen an overall volume growth of 5% in 2009. Exports have continued to grow steadily although there has been a marginal dip in imports. We acknowledge that industry commentators forecast that over the next five years there will be a global shortfall in cargo terminal capacity. Freighter fleets continue to expand at a pace that can’t be matched by developers. At HMACPL (Hyderabad Menzies Air Cargo Private Limited) we are well placed to meet the demands of the coming year’s growth and changing market requirements and are ready to take our performance to the next level. We will ensure we maintain profitability to fund further investment

on our terminal facilities, employees and new technology to support the future growth and create value for our share holders, customers and employees. In true HMACPL spirit we will focus on key fundamentals such as: Customer service and meeting their needs Converting our features into benefits for the customers Training and developing our people

In closing, I would like to thank each and everyone for a great support and effort which has enabled HMACPL (Hyderabad Menzies Air Cargo Private Limited) to deliver

which is to be a world class cargo service provider.


Joint Venture Hyderabad International Airport has an independent cargo facility with a dedicated cargo terminal handled by Hyderabad Menzies Air Cargo Private Limited (HMACPL) which is a joint venture between Menzies Aviation & GMR Hyderabad International Airport Limited (GHIAL)

GMR Hyderabad International Airport Limited, the developer of the Rajiv Gandhi International Airport is a public-private joint venture between GMR Group, Malaysia Airports Holdings Berhad, state government of Andhra Pradesh and Airports Authority of India. GMR Group is one of the

fastest growing and leading private sector organizations in India founded by its present group chairman Dr. G M Rao in 1978.

Menzies Aviation is one of the world’s leading providers of ground and cargo handling services with network spread across five continents, operating over 125 airports in 28 countries , serving a customer pool of more than 500 airlines and delivering tailored service solutions. Headquarted in London the Menzies group has 2 main operating divisions-Menzies Aviation & Menzies Distribution

Menzies Aviation with its extensive experience in cargo handling & GMR with its competence in providing world class and advanced infrastructure is undoubtedly an ideal joint venture to handle cargo operations in Hyderabad. Our purpose built air cargo terminal was commissioned on 23rd March 2008. It is the first cargo complex in India to have implemented a concept of an integrated cargo facility housing both domestic and international operations under one roof.


Facilities Cargo warehouse-14000 sqm Office Space-3300 sqm Separate Cold storage facility for

domestic & international Total Cold Storage-712 cum Dangerous Goods Storage-140 cum Exclusive VAL/VUN storage Separate area for customs examination Live animal holding area-17 sqm

Transshipment cargo facility-253 cum Plug in facility for cool containers X-ray screening Automated Lift & Run system (an

improved version over ETV) Access control and Security surveillance

24/7 CCTV surveillance Biometric access system 24 Truck docks

Dock Levellers Second longest runway in India-4.26KM

compatible to A380 3 Separate parking bays for Freighter

aircrafts ATC Tower(75 mts height) with latest

control systems Cargo satellite building-office and

Warehouse space for trade partners

250 acres of cargo SEZ adjacent to cargo terminal building Drug control authority office Plant quarantine office Animal quarantine office Rest Room & Canteen facility Truck & Car parking Bank Help desk Business centre

Cold storage Transshipment storage Plug in facility

Plant quarantine Lift & Run system Animal quarantine


Site map

Cold storage facility With the view of enhancing our products and services to meet the growing demand of the trade we have set up additional cold rooms in the warehouse. The cold room expansion program comprises of freezer (-20 degrees Celsius) in imports, controlled ambient temperature (15-25 degrees Celsius) in exports & the expansion of the existing 2-8 degrees facility. The facility was inaugurated on 16th October 2009 by the trade and customs officials.

Location Temperature Total Volume (cu mt)

Total Capacity

(Tons)

Export 2 to 8/15 to 25 384.8 40

Import 2 to 8 196.23 20

Import 0 to -20 49.85 5

Domestic 2 to 8 79 8


Services offered to airline customers Physical Warehouse handling Documentation Services Cargo security screening Build up & Break down of ULD’s Manifestation Post flight messaging General Supervision Dedicated handling of freighter operations Tracing & Irregularity Management

ULD inventory management ULD storage Warehouse inventory management Control & Security of loading materials Update of manuals and Instructions Cargo Surveillance Record IT interface to airline & customs systems Training profile & update Records & Filings Supplier Supervision

Office accommodation for operators

VCT generation

Unloading

Acceptance

Screening

Build up

Manifestation


Business philosophy Services offered to airlines SPIRIT is our way of doing business.

Safe & Secure Passion Innovation Reliable Integrity Team work

Safety and security being our top priority we all follow our Menzies Aviation designed safety code “Morse”. The Airport Operator, M/s GHIAL, observed a Security Week from 18th to 22nd January, 2010 during the course of which, they organized various competitions involving the complete airport community. K. Ravindran (Security Manager, HMACPL), Mr. A. Sandeep Kumar (Security Officer, HMACPL) and Mr. M.M. Baig (Security Officer, HMACPL) took part in the competitions and won prizes.

Mr. Ravindran won First prize in the “Slogan writing competition” Mr. Sandeep Kumar won Second prize in the “Security suggestions competition” Mr. Mirza Manzur Baig won Second prize in the “Quiz competition”

Performance on safety and security aspects-2009

Month Damage to cargo by HMACPL

Theft & Pilferage cases

Jan-09 0 0

Feb-09 0 0

Mar-09 0 0

Apr-09 0 0

May-09 0 0

Jun-09 0 0

Jul-09 0 0

Aug-09 0 0

Sep-09 0 0

Oct-09 0 0

Nov-09 0 0

Dec-09 0 0


Our Mission

Effective cargo management

Efficient, superfast and reliable

service

Safe & Secured handling

Delivering agreed service level

standards

Learning and sharing We had conducted a Five day training Programme on 8th, 9th, 10th 18th & 19th of June ’09. Mr. Paul Smith, CEO addressed the Associates and appraised them of the programme’s objectives and advised them to take the benefit of the training being imparted so as to improve their on Job Performance. Training was imparted in the areas such as Standard Operating

Procedures, Import & Export Procedures, Customer Service with Role Plays, Safety & Security Procedures & IT Practices on Operations. A total of 78 Associates were covered in these five days. Mr.Manoj Singh, General Manager – operations imparted training on operational issues , Mr.Ravindran on Safety & Security Issues , Mr.P.Ashvini Kumar on Customer Service, IT team consisting of Mr.B.Srinivas & Mr.Sastry on IT issues. Mr.Satish Prasad, & Mr. Praveen Chander had devised the role plays for the training programme on Customer Service, the role plays have been designed based on the day to day experiences in the Ware House & Counters.

Our Vision

To deliver consistently great service to customers in

a safe and secure environment providing value for

money while controlling costs. To be a good

employer, supplying the right tools for the job and

providing a platform for our staff to grow and

develop. Enhance Regional, National and Global

awareness of Hyderabad by active marketing and

maintaining balance between satisfied customers,

satisfied staff and satisfied shareholders.


Performance Awards

Star of the month

Staff day out

Star of the month awards for Two Associates and four Senior Utility Personnel were given away by the CEO

with a cash price and a commendation certificate. These associates were given the awards for their performance in operations.

Staff day out was organized for our staff

on December’12th at a resort. About 90

Associates participated in the event and

unwinded with their colleagues and

Managers. The day out included various

activities like singing, dancing, mimicry,

team building activities etc. Prizes were

given away to the winners of the events.


Airline Customers

Air India Air Arabia Blue Dart British Airways Emirates Etihad crystal cargo Indian Airlines Indigo Jet Airways

King Fisher Airlines Lufthansa Cargo (Pax &Freighter) Malaysian Airlines Oman Air Paramount Airways Qatar Airways Saudi Arabia Airlines Spice Jet Silk Air

Thai Airways

In today’s rapidly changing air transport environment, it all started with 12 international and 8 domestic carriers connecting Hyderabad to the rest of the world. British Airways, Etihad, Air Arabia & Silk Air later joined the team. Jet Airways started the international operations to Dubai adding more connectivity to Middle East. Lufthansa cargo has started the first ever freighter movement in the history of Hyderabad operating with MD11 aircraft. Air India has introduced the express services connecting HYD- DXB with its B737 fleet. In addition to regular scheduled freighter operations we have been delivering full ground handling and individual solutions to the non -scheduled charter aircrafts also. Finally transshipment has started in Hyderabad in the month of September 2009 with Jet

Airways taking the initiative and acquired all the concerned permissions. Kingfisher is the next

to start and Indian airlines, Indigo are in the race.

Airline News

Srilankan airlines planning to restart operations

Malaysian airlines have plans to upgrade their fleet

Air Asia going to commence its operations effective20th July 2010

Deccan 360 soon planning to start their operations


Customer satisfaction survey

An effective customer satisfaction survey program should focus on measuring customer perceptions of how well the company delivers on the critical success factors and dimensions of the business. These usually include factors like service promptness, staff responsiveness, and understanding of the customer's problem. We, HMACPL has conducted the customer satisfaction survey in the month of January2010, for the first time since the start of our operations. The survey is measured against company “SPIRIT” goals. The objective behind conducting the program is to

determine overall customer satisfaction with our products & services identify customer perceptions of “ key areas of weakness”, “key areas of strengths” & “

key areas of improvement”

Survey results-Overall

83%

72%

74%

69%

64%

68%

Customer survey-Results

Safety and Security

Passion

Integrity

Reliability

Innovation

Teamwork


Customer Feedback

Category Aspects Feedback (in %)

Safety and security

Always puts safety first and never cut corners 100%

Conduct regular safety meetings and discuss safety related issues with customers

57%

Safety is our priority and we never compromise on our commitment to it

75%

All employees take responsibility for their actions 75%

Passion Staff are enthusiastic and motivated 75%

Staff react positively in resolving problems 100%

Always handle operational disruptions professionally 88%

Committed to give great service 88%

On time for the required job 100%

Integrity Our employees always do what they say they are going to do 0%

Our employees are committed in conducting business fairly, honestly and in compliance with all applicable ethical standards

100%

We openly share operational quality data based on service level agreements

75%

We take the time to understand any problems our customers have 75%

We trust and respect our people and the jobs they do 100%

Reliability Staff are reliable and dependable 75%

Our company consistently delivers against agreed service level targets

63%

We maintain good rapport with the customers 100%

Have adequate and right equipment for the job 88%

Equipment is well maintained 88%

Responds immediately to issues raised by customers with corrective action steps with out any delay

75%

Innovation Good at introducing new ideas and not just respond to issues as they happen

63%

Developed various innovative systems and technologies to enhance service standards to customers

63%

Introduce international standards and working practices to our station

88%

Teamwork Work closely with our airline customers 100%

Whatever is the function or role of staff, staff are aware that they are working towards the same goal

88%

Management always encourages staff to take up challenges and leads them towards growth path

63%

Brief team at start and end of the shift 75%

Provides a high standard of safety training to our employees 88%


Customer Feedback

Category Aspects Feedback (in %)

Reliability Staff are reliable and dependable 75%

Our company consistently delivers against agreed service level targets

63%

We maintain good rapport with the customers 100%

Have adequate and right equipment for the job 88%

Equipment is well maintained 88%

Responds immediately to issues raised by customers with corrective action steps with out any delay

75%

Innovation Good at introducing new ideas and not just respond to issues as they happen

63%

Developed various innovative systems and technologies to

enhance service standards to customers

63%

Introduce international standards and working practices to our station

88%

Teamwork Work closely with our airline customers 100%

Whatever is the function or role of staff, staff are aware that they are working towards the same goal

88%

Management always encourages staff to take up challenges

and leads them towards growth path

63%

Brief team at start and end of the shift 75%

Provides a high standard of safety training to our employees 88%


Statistics

Category 2009(Tons) 2008(Tons) Year-on-Year

Export 25486 21500 19%

Import 9388 9594 -2%

Outbound 8805 9697 -9%

Inbound 13078 13603 -4%

Transshipment 164 0 100%

Total 56921 54394 5%

Export cargo volume has registered a growth of 19% compared to 2008. In 2009 cargo was able to reach around 500 destinations in nearly 120 countries from

Hyderabad Airport Transshipment: After customs declaration on Hyderabad as “transshipment hub” airlines

swung in to action and started optimizing the potential resulted in month on month

growth effective 2009. In the month of Jan 2010 we handled 100 tons of “transshipment” which is really an encouraging sign;” it’s a fantabulous achievement by Jet airways team”.

Top Export Commodities (Jan-Dec2009)

Commodity (Tons) %

Pharmaceuticals 18649 75%

Mangoes 1355 5%

Engineering goods 1021 4%

General cargo 927 4%

Fruits & Vegetables 485 2%

Electrical goods 564 2%

Vaccines 544 2%

Pomegranates 319 1%

Garments 364 1%

Top Import Commodities (Jan-Dec2009)

Commodity (Tons) %

Pharma+Chemicals 2341 25%

Spare parts 905 10%

Electrical/Electronics 780 8%

Computer parts 569 6%

Solar cells 534 6%

Radio active material 527 6%

Machinery parts 222 2%

Medical equipment 198 2%

Carbon products 152 2%

Bearings 125 1%

Glass products 121 1%


Top Export Destinations(JAN-DEC2009)

Destination (Tons) %

USA 4700 19%

Russia 1726 7%

Saudi Arabia 1538 6%

Great Britain 1481 6%

Germany 1222 5%

Bangladesh 940 4%

UAE 832 3%

South Africa 675 3%

Canada 663 3%

Italy 508 2%

Netherlands 448 2%

Nigeria 441 2%

Turkey 407 2%

Spain 392 2%

Top countries of origin-Imports (Jan-Dec2009)

Origin (Tons) %

Germany 1562 17%

USA 1208 13%

Singapore 1036 11%

China 811 9%

Russia 714 8%

France 529 6%

Hong Kong 527 6%

Great Britain 502 5%

Italy 268 3%

UAE 234 2%

Netherlands 193 2%

Switzerland 171 2%

Taiwan 148 2%

Sweden 134 1%

South Korea 133 1%

Malaysia 108 1%

Thailand 104 1%

Japan 102 1%


Together we fly

In our endeavor to strengthen the bond between all our trade partners, customers and regulatory bodies, we are having regular monthly interactive meetings. This enables all the stake holders sit and list out all the issues pertaining to the business resulting in the path breaking solutions to boost the trade. Trade Meetings:

CAFAC DACCAI Key Account Managers with airlines Importers & Exporters

Regulatory bodies

Helping hands

Blood Donation Camp: “Donating blood is a holy activity

and a social responsibility”. Every year lakhs of people die at

the time of surgery only because of shortage of blood. Over

200 HMACPL employees & trade partners participated in the

noble cause organized by HMACPL on 29th may 2009 and

planning to organize more in this year.

Flood Victims: At a time when Kurnool, Andhra Pradesh

has witnessed a large scale loss of human lives and

property due to floods, HMACPL employees have come

together to provide some succor to the victims. Cartons of

clothes, food, cash and other essential items has been

dispatched to the flood victim thru lions club.


Trade blog

Share-e-Hyderabad (Market share)

Located strategically at the geographical centre of India, Hyderabad is with in a 2 hour flying radius to all major cities in India and a four hour flying radius to all the major cities in the Middle East and South East Asia. The airport therefore holds tremendous potential to emerge as main and critical destination and transit point for transshipments between east and west. Our focus in the coming years should be to promote Hyderabad as a transshipment hub and improve its share in the Indian market. Flying cars For the first time in the history of Hyderabad Cargo Terminal “cars “were exported. Two cars Mahindra-Xylo & Toyota-Innova were exported to cologne on the Lufthansa freighter loaded on 16ft pallets. It was a great moment for all of us.

“It’s time to see more cars flying from Hyderabad”

International Domestic

Airport Rank % Share Airport Rank % Share

BOM 1 32 BOM 1 28

DEL 2 26 DEL 2 22

MAA 3 20 BLR 3 12

BLR 4 9 CCU 4 9

CCU 5 4 MAA 5 8

HYD 7 2 HYD 6 4


“Jaago-Bhaago-Vizago”

“We must not go where the path may lead; instead we must go where there is no path &

leave a trail” Vizag is one of the fastest developing cities in the world and many private & public sector companies have established their factories and some are in progress. The city has tremendous potential for air exports and imports for the following. Ironically some of the exports/imports are taking place through other airports such as Chennai, Bangalore and Mumbai. Focusing on vizag will boost exports/imports of Hyderabad in many ways.

Here are the few leads you may wish to explore:

Opportunities available in Vizag for Hyderabad

Commodity Origin Transit Station

Destination Qty/Month (tons)

Sea Foods Vizag Chennai Japan/Europe 300

Fruits & Vegetables

Rest of Andhra Chennai/Kerala Middle East 100

Mangoes Coastal Andhra Chennai Europe, Middle East, USA

150

Human Hair Eluru Chennai Europe Volumetric

Pharmaceuticals Hyderabad Bombay African Sectors

50

- Vizag Bangalore USA 300

- Rest of the world

Chennai Hyderabad 500

Seeds Rest of the world

Chennai Hyderabad 50

Spare

Parts/Machinery/ Garments

Europe, USA,

Russia, Far East

Chennai,

Bombay ,Bangalore

Hyderabad 50

“It is not because things are difficult that we do not dare, it is because we do not dare that they are difficult.”


Service standards

Performance-2009 Category Average(hrs)

International Exports

Truck Queue time 0.35

Acceptance Dwell time 0.31

Build Up time 0.21

Imports

Break down time 2.19

Truck queue time 0.29

Dwell time(Cargo Delivery) 0.31

Domestic Outbound

Truck Queue time 0.24

Acceptance Dwell time 0.20

Inbound

Breakdown time 1.18

Truck queue time 0.18

Dwell time(cargo delivery) 0.19

Dwell time Period values

(Imports Clearance) Free Period Clearance 62%

Between 4-5 days 14%

Between 6-30 days 20%

After 30days 1%

Not Cleared 3%

India rates us economical Storage charges:

Time(Hrs)

Hyderabad Bangalore AAI-Chennai Delhi Mumbai

GEN SPL VAL GEN SPL VAL GEN SPL VAL GEN SPL VAL GEN SPL VAL

0-72 Free period Free period Free period Free period Free period

72-120 1.30 2.60 5.20 1.50 2.80 5.60 1.37 2.73 5.46 1.30 2.60 5.20 1.13 2.26 4.50

120 - 720 2.60 5.20 10.40 2.80 5.60 11.25 2.73 5.46 10.92 2.60 5.20 10.40 2.26 4.50 9.00

Beyond 720 3.90 7.80 15.60 4.20 8.40 16.85 4.10 8.19 16.38 3.90 7.80 15.60 3.38 6.75 13.50

Minimum 295 580 1160 320 625 1275 310 610 1220 295 580 1160 250 500 1000


New Initiatives-ISAGO accreditation HMACPL is in the process of attaining ISAGO certification. ISAGO stands for “IATA safety audit for ground operations”. The program was designed and introduced by IATA to benefit airlines, ground handlers, regulatory as well as airport authorities in the following way Benefits: Safer ground operations, less accidents and injuries Elimination of redundant audits from airlines Reduced costs: Less damage and Less audits

Uniform audit process and harmonized standards Improved quality standards Enhanced understanding of high risk areas with in ground operations.

ISAGO is an essential alternative to the redundant and multiple audits the airlines and ground handlers are subject to today. We will be facing the first audit in the month of April/May, and a satisfactory performance in the same will furnish us a list of action items followed by another audit in the month of Oct/Nov.

Key contacts

Mr. Paul Smith, CEO, HMACPL

Contact: 040-66977021

Mr. Manoj Singh, General Manager-Operations, HMACPL

Contact: 040-66977018

Mr. Ravindran, Safety & Security Manager, HMACPL

Contact: 040-66977014

Mr. Ram Dharmana, Head-Business Development, HMACPL

Contact: 040-66977034

Mr. Vinod Sajnani, Chief Finance Officer, HMACPL

Contact: 040-66977039

Mr. Anil Kumar, Head - HR , HMACPL

Contact: 040-66977012

Mr. Hari Prasad, Duty manager, HMACPL

Contact: 040-66977052

Duty Manager in shift, HMACPL

Contact: 040-66977036, +919704678160

HMACPL Website – www.hyderabadmenzies.com

http://www.hyderabadmenzies.com/


Conclusion We are extensively committed to deliver comprehensive services facilitating the smooth transfer of business. We provide the right service at the right price and make sure we work in a safe & secure environment. With over 200 employees who are well trained to handle operations at the terminal, we have been consistently meeting the service standards what we have agreed for. We thank you for your support and looking forward for your co-operation and participation in making Hyderabad a major transshipment cargo hub.

Paul Smith CEO, HMACPL

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