CII IL Monthly Digest: A Newsletter from the CII Institute of Logistics
Edition - 33
April 2025
About CII IL



We create avenues for the industry to gain more insights into emerging trends, industry-specific problems of national importance, and global best practices in logistics & supply chain management. We enable the industry to cut down transaction costs, increase efficiency, and enhance profitability. We are committed to sensitizing the industry about macro-level issues and helping find solutions to them.
MONTH'S HIGHLIGHTS

Indian

Vadhavan Port, Airport to Redefine State's Logistics Landscape: Maharashtra CM. CMA CGM Welcomes First Boxship Flying Indian flag at Nhava Sheva. CBIC Implements Reforms to Streamline Air Cargo. Jet Freight Logistics to Launch Converted Airbus Freighters. Working to Reduce Logistics Costs to Spur Economy Growth: DPIIT. Air India SATS Inaugurates the AISATS BLR Logistics Park at Kempegowda International Airport. NICDC Bags the Udyog Vikas Award. ABB India’s EV Initiative Aims to Slash Scope-3 Emissions. DHL Express India Evolving Marketing Strategies Amidst Price Competition.


International

Blackstone Launches Pan-European Logistics Platform. Republican Lawmakers Draft $15B Plan to Fix Air Traffic Control. BMW Group Tests Hydrogen Trucks. Northrop Grumman, NASA Commence Integration & Testing of (HALO). CMA CGM Strengthens Position With $440M Acquisition. Escalating Trade War Hits US Economy. Temperature-Controlled Pharma Packaging Logistics To Grow On Healthy Demand.

INDIA

Maharashtra Chief Minister Shri Devendra Fadnavis announced a strategic initiative to position the state as a logistics hub through the development of the Vadhavan Port and a proposed airport, reported CNBC TV18. Speaking at the India-Middle East-Europe Economic Corridor (IMEC) Summit 2025 in Mumbai, Shri Fadnavis highlighted that the ₹76,000-crore Vadhavan Port, which is set to begin operations in the next three to four years, will be one of India's largest deep-water ports, connecting to global shipping routes. The accompanying airport aims to facilitate cargo movement and enhance last-mile logistics, significantly reducing transportation costs and time. Shri Fadnavis noted that 17 districts in Maharashtra will benefit from the new hub, improving logistics efficiency. He also mentioned that the state secured $30 billion in infrastructure funding from 2014 to 2019 and is pursuing an additional $50 billion through partnerships with foreign financial institutions.


The French shipping giant CMA CGM Group has marked a significant milestone with the arrival of the CMA CGM Vitoria, the first India-flagged containership registered by a major foreign carrier, at the Nhava Sheva Freeport Terminal (NSFT), reported the Offshore Energy news portal. The 2,592 TEU vessel will operate within the Group’s BIGEX Network, which offers direct weekly service between India, the Gulf, and the Red Sea, with calls at Nhava Sheva and Mundra. CMA CGM plans to register three additional vessels in India soon, affirming its commitment to the local market. Furthermore, the company has made history by becoming the first foreign shipping line to register a containerized vessel in Gujarat International Finance Tec (GIFT) City. With a workforce of 17,000 in India, CMA CGM’s initiative will contribute to bolstering the India-Middle East-Europe Economic Corridor (IMEC).


The Central Board of Indirect Taxes and Customs (CBIC) has implemented reforms to streamline air cargo movement, benefiting farmers, exporters, and logistics companies, said a Rural Voice news portal article. Effective April 24, 2025, the abolition of transhipment permit fees aims to reduce delays and costs associated with moving goods between terminals, enhancing efficiency for high-value items like fruits and processed foods. Additionally, a harmonized process for the temporary import of Unit Load Devices (ULDs) now allows airlines to manage re-export responsibilities, aligning Indian customs practices with global standards. The All-India National Transhipment Bond system is also gaining traction, simplifying compliance by allowing a single bond for multiple customs locations. CBIC has also digitized the cargo movement application process via ICEGATE, facilitating a shift towards a paperless environment, said the article.


The Flight Global news portal reported that Jet Freight Logistics, a Mumbai-based cargo specialist, will become India's first operator of converted Airbus freighters under a modification agreement with Elbe Flugzeugwerke (EFW), an Airbus joint venture with Singapore-based ST Engineering. The initiative involves a multi-aircraft deal with UAE investment firm Confity Capital Partners, which will oversee the aircraft conversions starting at the end of this year. EFW has not specified the aircraft variants to be converted, but it offers the A300-200P2F with a 60-ton payload and the A300-300P2F with a 62-ton capacity. The agreed modifications will take place at EFW’s Dresden facility and partner sites. Confity managing partner Ms. Sia Ashok stated that this collaboration supports their goal of developing future-ready cargo infrastructure.


The government is actively seeking to reduce logistics costs by addressing regulatory challenges and enhancing private sector access to the PM Gati Shakti initiative, stated Shri Pankaj Kumar, Joint Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), SME Times reported. Speaking at an ASSOCHAM logistics and warehousing conference, Shri Kumar emphasized the need for collaboration among stakeholders to promote a safe business environment and continued economic growth. Shri Kumar noted that the PM Gati Shakti and National Logistics Policy aim to ease logistics costs using the E-Logs platform. The Ministry of Railways is also enhancing connectivity to ports through new programs aimed at expanding railway infrastructure. In his special address at the conference, Ministry of Railways' Executive Director Surendra Kumar Ahirwar said: "The Ministry of Railways has launched three major programmes to develop connectivity for the ports in form of rail Sagar, enhancing the network capacity of the railway infrastructure in form of high-density network projects and the Energy, Mineral, and Cement Corridor."


Air India SATS inaugurated the AISATS BLR Logistics Park at Kempegowda International Airport in Bengaluru, marking one of South India’s largest on-airport logistics facilities, reported the Indian Transport and Logistics News. Developed with an investment of ₹200 crores, the park spans 8 acres and aims to significantly enhance the airport's cargo handling capabilities, catering to the surging demand for efficient supply chain solutions. Currently the third busiest airport in India, BLR Airport accounted for 40 percent of the region's air cargo volumes and achieved a record cargo tonnage of 502,480 MT in FY25, with goals to handle 1 million metric tonnes by 2030. The logistics park features a modern two-level warehouse with over 240,000 sq. ft of Grade A space for freight forwarders, a public bonded warehouse of 11,000 sq. ft for secure cargo storage, and an office block of 24,000 sq. ft for logistics and support services.


The National Industrial Corridor Development Corporation (NICDC) received the Udyog Vikas Award at an event organized by Janmabhumi Daily in Kerala, highlighting its pivotal role in India's industrial transformation, reported PIB. Union Minister for State for Heavy Industries, Public Enterprises, and Steel, Shri Bhupathi Raju Srinivasa Varma, emphasized the Union Government’s commitment to establishing Greenfield Industrial Smart Cities nationwide. He praised the Integrated Manufacturing Cluster (IMC) in Palakkad, predicting it would revolutionize Kerala's industrial framework. The Palakkad Industrial Smart City, encompassing 1,710 acres, is strategically situated 21 km from Palakkad city and aims to enhance interstate connectivity, attracting substantial investments and employment opportunities.


ABB India’s EV initiative aims to slash Scope-3 emissions in Bengaluru as the company transitions to electric vehicles (EVs) for logistics operations, reported Manufacturing Today. The initiative, led by the Electrification (EL) and Motion (MO) commercial teams, focuses on transporting finished goods and raw materials between its factory and distribution center, as well as last-mile deliveries throughout Bengaluru. Officially launched at the Smart Power factory campus in Nelamangala and the distribution center in Hanchipura, this switch to EVs is expected to significantly reduce the company’s Scope-3 greenhouse gas emissions. ABB India views the integration of electric mobility into its logistics as a pivotal step toward achieving sustainable operations and showcases its commitment to environmental responsibility, said the article. The company further believes that this initiative could set a new standard for industries striving to minimize their carbon footprint while driving operational efficiency in transportation.


DHL Express India is refining its marketing approaches to navigate the highly competitive and price-sensitive world of international express logistics, reported Mint. According to Mr. Sandeep Juneja, vice president of sales and marketing at DHL Express India, the company's focus is on simplifying global trade for businesses across 220 countries. While price competitiveness is essential, DHL emphasizes enhancing customer experiences to bolster their brands. This strategy aims to make complex logistics straightforward and dependable, encapsulated in their brand promise: "Excellence. Simply Delivered." Furthermore, DHL's efforts include collaborations with small and medium enterprises (SMEs) and policymakers, as well as tailored communications for various segments. Sponsorships, such as those with the Mumbai Indians and Formula One, are also seen as integral to maintaining visibility for the B2B brand in a challenging market landscape.



INTERNATIONAL

Leading global investment firm Blackstone has launched Proxity, a new pan-European logistics platform, per a company statement. Proxity, a logistics operator and developer, will provide flexible warehousing solutions across Europe's key metropolitan areas. Initially, Proxity will manage a portfolio of around 500 properties and development projects, amounting to over seven million square meters of rental space, all owned by Blackstone’s real estate funds. Based in Frankfurt and headed by CEO Mr. Guido Piñol, Proxity plans to expand its presence in Continental Europe, the Nordics, and Ireland while developing its portfolio. Proxity is set to become operational by 2026, with hiring initiatives in Germany and other European countries already in progress.


The U.S. Republican party members of the House Transportation and Infrastructure Committee are drafting a $15 billion proposal aimed at modernizing the outdated air traffic control system, reported Supply Chain Brain. This initiative allocates over $4.7 billion for upgrades to the Federal Aviation Administration’s (FAA) telecommunications network and an additional $3 billion for radar system replacements. It also includes funding for enhancements to control towers and initiatives to boost air traffic controller recruitment. This push for infrastructure improvement follows a fatal midair collision near Washington earlier this year, amplifying industry demands for safety upgrades.


The BMW Group is advancing its commitment to emission-free heavy-duty transport with the pilot launch of hydrogen trucks at its Leipzig facility, part of the European H2Haul project, per the Fuel Cell Works news publication. These fuel-cell trucks will operate between Leipzig, Landsberg, and Nuremberg to evaluate their effectiveness in daily logistics. To support these operations, hydrogen refuelling stations are being established in Leipzig and Hormersdorf, ensuring efficient refuelling for the trucks. Collaborating with Iveco, DHL, and TEAL mobility, BMW's initiative reflects its broader hydrogen strategy aimed at integrating sustainable technologies in production and logistics. This effort aligns with BMW's aim to achieve emission-free transport logistics globally.


Aerospace and defence multinational Northrop Grumman Corporation and NASA have commenced the integration and testing phase of the Habitation and Logistics Outpost (HALO) module, a pivotal component of the Gateway project, marking humanity's first space station in deep space as part of the Artemis campaign. Space news portal Satellite Evolution reported that the core structure of HALO, delivered from Thales Alenia Space in Turin, Italy, arrived in Arizona on April 1. This milestone allows Northrop Grumman to begin outfitting HALO with essential systems for supporting astronauts in prolonged missions near the Moon. Mr. Brandon White, vice president and general manager of tactical space systems at Northrop Grumman, emphasized the importance of HALO as the first habitat for humans in deep space, underscoring the team's commitment to developing safe and dependable systems that will also contribute to future journeys to Mars.


One of the world's largest container lines CMA CGM strengthened its position in Turkey with a $440 million logistics acquisition as CEVA Logistics, a subsidiary of the French shipping giant, announces its purchase of Borusan Tedarik Zinciri Çözümleri ve Teknoloji Anonim Şirketi, a Turkish outfit. The acquisition, which encompasses Borusan Tedarik's subsidiaries in Germany, Bulgaria, Hong Kong, and China, is pending customary closing conditions and regulatory approvals, reported Baird Maritime. Mr. Mathieu Friedberg, CEO of CEVA Logistics, emphasized that Turkey is a key strategic market for growth. The deal will nearly double CEVA’s warehousing in Turkey, expanding its capacity from 620,000 square meters to approximately 1.19 million square meters. It will also enhance CEVA's domestic ground transport operations, increasing its annual domestic shipment capacity to nearly 1 million. Known for owning the largest port in Turkey's manufacturing hub of Gemlik, Borusan Tedarik’s integration is expected to accelerate CEVA’s growth trajectory in the region.


The escalating trade war between the US and China is showing significant effects on the broader US economy, as container port operators and air freight managers eport dramatic declines in shipments from China, reported Business Standard, citing the Financial Times. Following the implementation of 145 percent tariffs on Chinese imports, logistics firms in the US have noted a sharp decrease in container bookings, with the Port of Los Angeles expecting a 33 percent drop in scheduled arrivals during the week of May 4 compared to the previous year. This downturn comes at a critical time for retailers like Walmart and Target, who are already warning of empty shelves and rising prices. Traditionally, March and April are crucial months for stock preparations ahead of the back-to-school and Christmas shopping seasons. An International Chamber of Commerce survey indicates a pessimistic outlook, predicting lasting trade damage and a potential baseline tariff of at least 10 percent may become the new norm.


The pharmaceutical temperature-controlled packaging solutions market is poised to grow significantly, projected to reach USD 11.03 billion by 2034, up from USD 6.38 billion in 2025, with a compound annual growth rate (CAGR) of 6.30 percent. This expansion is driven by heightened demand for reliable cold chain logistics for sensitive medications, including biologics and vaccines, reported London Daily. Maintaining strict temperature ranges is vital, as even minor deviations can compromise drug efficacy and patient safety. Packaging solutions are categorized based on storage needs, from cold chain (2°C to 8°C) to ultra-cold (-70°C or lower). The integration of artificial intelligence is transforming the field, enabling real-time monitoring, predictive analytics, and automated inspections to enhance efficiency and compliance. AI also optimizes supply chains and ensures product integrity through digital logging, fostering trust among consumers and regulatory bodies like the FDA and WHO.



We will connect again next month, with a comprehensive dossier of news, trends and events from the industry.




Courtesy: Newsletter content developed by Mr. Aanand Pandey