Volume: 31
CONTENTS
Foreword
L&T Heavy Civil Infra.-
MTHL Package- 1
LTHE-Onshore,
Hasbah Project
LTHE-Onshore,
Farabi Project
L&T HE IC HTE BU
Transportation of H2S
skids/IUG Packages
from BGR Energies –
Chennai to L&T MFF Hazira
Transportation of 10000
Smart Panels to
10000 ASK’s in Rajasthan
Project Logistics Scope
E-Way (EWB) Bill System and
Its Implementation in India
Know LMC’s Stakeholder
June 2018
Pg. Dear Reader,
No.
Rising fuel prices: What lies ahead?
1
Rising fuel prices affect us all. Here is a summary of the situation and LMC has
been addressing these challenges.
2-3
Road freight:
Diesel prices have grown steadily from the beginning of FY 16 at nearly 4.9% year
on year for last three years. This year (FY 19) alone, it has jumped by almost 7% in
4-5 last three months. Domestic road transportation has been hard hit, and in
particular, many small owner-operators have been forced out of the market. Road
transporters are threatening a nationwide indefinite strike from 20th July onwards.
It is worth remembering that diesel accounts for more than 40% of total operating
costs for road transport.
6-7
Air freight:
Aviation turbine fuel (ATF) costs have also surged from beginning of FY 16 at
8-9 nearly 8.3% year on year for last three years. What is worse is that it has increased
by almost 15% in just one year. Fuel is an airline’s second-largest expense after
labour. Steadily rising ATF costs does not leave most airlines with any choice but
to pass on whatever is possible as price increase to all its consumers, including
Freight Forwarders.
10-11
Ocean freight:
HFO/HFHSD costs, similarly, have risen steadily from beginning of FY 16 at nearly
14.9% year on year for last three years. Within last one year itself, it has jumped
upwards by nearly 25%.
12 But naturally, almost all liner and tramp services, globally, are trying to pass on as
much of this burden as possible to its consumers, including Freight Forwarders,
affecting both Container and Break Bulk cargo ocean freight rates.
We are happy to let you know that against this steep increase in fuel prices
affecting all the modes of transport, rates of nearly 75 annual rate contracts
13-14
covering Road, Air and Ocean transport, have been maintained either almost at
same level or there has been modest year on year reductions, for three years in
15-16 succession. LMC could do this by effective win-win fact based negotiations,
structural changes of contracts, need based augmentation of vendor base and
suitable leveraging of corporate relationships. We hope this step has contributed
in its own way, towards improving the bottom-line of all the ICs, in this turbulent
17 business environment. Rest assured that we at LMC would continue putting in our
very best in this direction.
Neelaj Sengupta
1
Overview of Logistics Cases handled
12MT structurals from Kuwait to Mumbai
 Business: Heavy Civil Infrastructure
 Project: MTHL – Package 1 (Mumbai Trans Harbour Link)
 Period of movement – April ‘18 to June ’18
 H-Beams & Deck Plates from Kuwait to Mumbai Port
 Total Qty: 12000 MT / ~ 15000 FRTs, moved in two lots.
 Door-to-door movement
 Transporter: M/s ACL

2
12000 MT structural from Kuwait to Mumbai (……contd/-)
 Total pieces: ~37500
 This was the first major shipment LMC executed for HCI IC.

Sr. Aspect Challenge How it was overcome

No.
1 No storage Feeding the A sufficient number of
space cargo trucks were made
available at continuously to available to pick up the
Kuwait ship without goods & work was done
Ports hook idling in round-robin manner.
Avoided hook idling and
vessel detention
charges.
2 Huge Evacuation of It was decided to split
quantity such a huge the quantity into two
~15000 FRT quantity at lots for ease of
in one go. Mumbai Port is a operations. Saved on
major issue, storage charges.
considering free
period available. 3
 Valves & Actuators – from Italy to Saudi Arabia

Business: L&T Hydrocarbon,

Onshore
Project: Hasbah (KSA)
Period of movement:
March ‘18 to June ‘18
Total Qty: 26 valves, 921 MT
/ 950 FRT, in multiple lots.
Gross weight:17 MT to 46 MT
each
INCOTERMS: Third-country
(door-to-port)
Freight Forwarder:
Boxcoworld Logistics

4
Valves & Actuators – from Italy to Saudi Arabia (…..contd/-)

Sr. Aspect Challenge How it was overcome

No.
1 Valves It was Road permits in Italy were
were necessary to applied for immediately
ready in move the after nomination of the FF.
multiple valves as soon LMC identified the monthly
lots. as they were sailing schedule of a
ready. shipping line having fixed
call between Italy and
Dammam.
2 2 ODC Movement of LSP with a strong project
valves, these valves to background and a solid
each Genoa Port was network with trucking
440 cm a major companies specializing in
tall. challenge. such ODC movement, was
identified & nominated.
(Many LSPs refused to move
cargo to Genoa). 5
Overview of Logistics Cases handled
Farabi Project , KSA
Period of movement – Apr’18 to
May’18
Hot oil packages.
From Sattahip, Thailand to Farabi
site, Yanbu, KSA
Total Qty: 171 packages, 841 MT /
6990 FRT, in one lot.
Dimension : 20x5x2 m ( LXBXH) Wt :
19 MT
Third country (port-to-door)
Geodis Overseas
Custom online formalities ( Bayan )
were completed 2 days in prior and
duty was paid next day. Farabi site
unloaded 40-50 trucks per day. Entire
7000 CBM cargo was delivered within
3 days.
Farabi Project , KSA

Sr. Aspect Challenge How it was overcome

No.

1 Hot Oil It was necessary Freight forwarder identified

Packages to move all the suitable vessel to
were ready packages in one accommodate all the
in multiple vessel as soon as packages. Shipper meticulously
lots at they were ready. planned movement from all
three site three sites to Sattahip port.
locations in
Thailand.

2 The entire Custom clearance LSP having strong project

7000 CBM and evacuation of background and solid network
cargo all the packages with trucking companies
arrived at within free period specialized in such ODC
Yanbu port and delivery to movement was identified &
and was Farabi site nominated. LSP managed with
required as was a major vessel owner to submit the
soon as challenge. manifest to port & customs 3
possible. days before vessel arrival.

7
Heat Transfer Equipment from Chennai to Bangladesh
 Period of movement – Dec’17 to Jan’18 (for HE IC)
 Metallic Bellows from Chennai to Bheramara site (Bangladesh)
 Dimensions and weight: 5.5 m (L) x 5.5 m (L) x 1.5 m (L); 3.8
MT; 45.38 CBM
 Door-to-door movement
 LSP: M/s LIPL

8
Heat Transfer Equipment from Chennai to Bangladesh (..contd/-)

Sr. Aspect Challenge How it was overcome

No.

1 Export Document cut-off was The original documents

document on 4th Dec 2017 for for customs clearance
readiness vessel sailing 7th Dec were received by the LSP
2017. only on 3rd Dec 2017.
Customs formalities
completed on the same
day to meet the deadline
of 4th Dec 2017.

2 Transport of Since the width of the A detailed route survey

bellow from bellow was 5.5 m, it from both Mongla and
Chittagong was not possible to Chittagong ports was
port to site transport it by road. undertaken to ascertain
if road transport was
possible. The survey
confirmed that the road
transport was NOT
possible and a barge was
the only option

3 Draft Deep winter setting in The barging operations

available in mid-Jan 2018 were handled in such a
during way that the cargo
barging reached the jetty just
before deep winter set
in.

9
ODC packages from Chennai to Hazira

Business: LTHE Upstream – MFF Hazira

Project: - Neelam Re-Development Project.
Cargo: - 3 Packages comprising
H2S skids and utility gas separators
Dimensions: 4.3 x 4.0 x 5 m.
Weight of each piece: ~16 MT
Type of vehicles required: 40’ Low bed trailers
From: BGR Energy, Chennai
To: L&T MFF Hazira
Estimated Transit time: 15 days
Execution period: Dec. 2017 onwards
 All the three packages were almost 15 feet in height and 13 feet in width.
 Transportation of such over-dimensional packages from Chennai to Hazira
(almost 1500 km) within 15 days time (as per commitment) was a very
challenging aspect.
 Challenge augmented by high tension wires in a nearby factory. We were
unable to get the wiremen locally for nearly 3 days (for lifting those wires so
that cargo could be passed smoothly). Eventually, skilled wiremen were
sourced just in the nick of time.
 With reference to route map shown below, it can be seen that the last leg of
400 km was a single-lane road. Driving on such a road was a challenging job
in view of the tight transit time.

Route Map : Chennai to Hazira

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ODC packages from Chennai to Hazira (….contd)

Despite 3 days loss (due to unavailability of wiremen and other challenges) the
transporter and his team managed to deliver the first skid in 12 days time
(meaning that overall transit time remained 15 days only). Subsequently the
other packages were also delivered smoothly, keeping project deadlines in mind.

Lashing and final touch-up of the first skid……….

…..and it’s ready to go! 11

Smart Panels to 10000 rural centers all over Rajasthan

Unit: Control & Automation, Mahape, (EAIC)

Project: RISL – Awarded by Government of Rajasthan
Cargo: Raw material, wires, conduits, smart panels, etc.
Dimensions: 700 X 700 X 300 mm (for finished panel)
Weight: ~45 kg per piece. Total: 450 MT (for 10,000 panels)
Type of vehicles required: Various types but mostly closed vehicles
From: Hub and spoke distribution, one nodal point being C&A Mahape
To: Atal Seva Kendras (ASKs) situated in each village of Rajasthan. ASKs are
switch-over centres between solar energy and conventional electrical energy.
Estimated Transit/Project time: 175 days
Execution period: Jan 2018 onwards

12
Smart Panels to 10000 rural centers all over Rajasthan ..(contd.)

The project
 Pick up 10000 fabrication material for panels from Udaipur and deliver them
to Nashik (Boost Electronics)
 Pick up the fabricated smart panels from Nashik and bring them to C&A
Mahape for testing/inspection and final dispatch to the central warehouse
at Jaipur
 Pick up other raw material, i.e. conduits and wires, required for
installation, from suppliers in and around Jaipur and bring them to the
central warehouse
 Segregate the cargo as per districts and send to 33 district warehouses (set
up and managed by the transporter). Oversee proper full kitting at these.
 Once cargo is received at district-level warehouses, milk run to be carried
out by transporter for dispatching a group of 4-5 panels per vehicle (along
with contractor’s people in same vehicle) to the respective ASKs. Once
installation is complete, the contractor’s people were brought back, in a
given milk run route.
The Challenges
 Shortlisting correct transporters with a wide enough reach and warehouse
network (since some of the villages in Rajasthan are situated near the
Pakistan border)
 Coordination between several teams i.e., L&T Project team in Mumbai as
well as Jaipur, LMC, Transporters’ in Mumbai as well as the Jaipur team,
contractors in Rajasthan and their KAMs, suppliers of raw material,
authorized people in ASKs, etc.
 Project timeline was tight i.e. 175 days, with stringent LD for delayed stage
deliveries
 Weather and geographical location of Rajasthan i.e. in day time
temperature is not less than 45 degrees and the night temperature is below
20 degrees as well. In some districts, villages are remotely located with
little or no connectivity.

13
Smart Panels to 10000 rural centers all over Rajasthan ..(contd.)

Special initiatives jointly discussed and implemented :

 Use the bar code system to efficiently track and make sure that right panel
gets installed in the designated ASK
 Transporter-developed mobile-based App (which runs on GPS) to find out
optimum route for the milk run, which helped to drastically reduce our lead
time
 A WhatsApp group was formed with all concerned, to eliminate information
loss and ensure real-time updates

Considering above challenges/scope, we targeted the installation of 100-150

panels per day. The project started in full swing in January 2018 and by the
end of May 2018 almost 92% project was completed. That means ~9200 panels
were successfully delivered and installed in just 150 days. Project was
completed by end June 2018. This was made possible only with the active
involvement of the entire C&A Mahape project team, suppliers, contractors and
transporter. LMC’s specially thanks to all of them!

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 E-Way Bill (EWB) System – Speedy and Smooth

After the revolutionary decision taken by the Government to implement

GST nationwide, the next step was, of course, to regularize the ‘Road
permit/Way bill’ regime in India, in order to keep in step with the idea of
‘One Nation One Tax’. A decision was taken to implement the EWB system
from 1st February, 2018. However, the date was postponed to 1st March
2018 due to technical issues.

What is EWB?
 Basically a transit pass for movement of goods by motorized
conveyance across Indian territory
 Pre-GST, it was referred to as ‘Road permit/Way bill’ (designated
differently by different states, e.g. Form 402 and 403, E-Sugam, etc.)
and was applicable for inter-state movements only. A hard copy
mandatorily to be carried with the vehicle.
 In the post-GST regime, the transporter needs to carry hard copy
printout of EWB, generated electronically through a portal. Post-GST,
the applicability now is for both intra and inter-state movements.

Comparison
Earlier System (Prior to GST) EWB System (in GST era)

1) No uniform procedure. Each State had their 1) Uniform procedure under the motto ‘One
own system of Road Permits/Way Bills – and, Nation One Tax’, EWB bill is applicable for
that too, under different names like Form each and every State of India for interstate
403/402, E- SUGAM, Form JJ, etc. as well as intrastate movements.

2) Government officials faced difficulties in 2) Smooth, hassle-free, unique procedure for

validating the different waybills. entire country, ease of validation

3) Hard copies of the way bills had to be 3) No hard copy required. Even EWB no. can
carried. do the job. This eliminates paper wastage.

4) Huge waiting at different state border 4) Reduction in waiting time at check posts
check-posts resulting in increased transit time thus reducing overall transit time and also
and fuel costs. saving fuel costs.

15
 E-Way Bill (EWB) System – Speedy and Smooth (……contd/-)

When should you generate an E-Way Bill?

 When conveyance is motorized.
 PART-B of EWB is to be filled up for all distances >10 km.
 When an invoice shows the value of goods more than Rs.50000/- all the vehicle(s)
meant for transporting these goods will need an EWB
 Any GST registered entity i.e. supplier, customer or transporter (Exception: A non-
GST registered Transporter, who is also legally allowed to fill in Part B of EWB)

Roles & responsibilities w.r.t. generation of EWB

Responsibility of
Particulars Remarks
generating EWB
From To Part A Part B
Consignor: L&T
Any L&T factory Domestic L&T/
Transporter Consignee: Any of L&Ts' domestic
(Domestic) Vendor Vendor
vendors
Any L&T Consignor: Any of L&T's domestic
Registered Vendor/
factory Transporter vendors
Domestic Vendor L&T
(Domestic) Consignee: L&T
Registered L&Ts' Consignor: Any of L&Ts' domestic
Registered
Domestic Domestic Transporter vendors Consignee: Any of L&Ts'
Domestic Vendor
Vendor Vendor domestic vendors
Domestic Air or
Any L&T
Sea Port - Consignor: Any of L&Ts' foreign
factory L&T Transporter
IMPORT vendors; Consignee - L&T
(Domestic)
SHIPMENT
Any L&T factory Consignor: L&T
(Domestic) Domestic Air
L&T Transporter Consignee: Any of L&Ts' foreign
EXPORT or Sea Port
SHIPMENT customers/ vendors

Domestic L&T/ Consignor: L&T

Any L&T Factory Transporter
Customer customer Consignee: Domestic customer
If vendor is unregistered then in all
Any L&T
Unregistered cases E-way bill - Part A is required
factory L&T Transporter
Vendor to be generated by recipient of
(Domestic)
goods

 Apart from the initial hiccups, the vast majority (including transporter and supplier)
are well aware of the system and its importance, and have started generating EWBs
correctly.

16
Know LMC’s Key Stakeholder

Mr. Govind Waghralkar joined L&T Construction in 2012 at

Mumbai Cluster as Head Procurement in Heavy Civil Infra.
(HCI IC).

An engineering graduate from VJTI, Mumbai, Mr. Waghralkar

has 25 years of SCM experience with various business
houses.

He is working on the prestigious Mumbai Trans Harbour Link

(MTHL) Package-1 as Head Procurement & Contracts. LMC
Govind Waghralkar,
acknowledges Mr.Waghralkar’s full involvement, guidance
Jt.General Manager
and support with respect to overall logistics of moving the
- L&T Construction
Access Bridge consignment of 12000 MT from Kuwait to STP
Yard, Sewri, via Mumbai Port. (Heavy Civil Infra)

LMC – Preferred partner for Logistics value-added services (Domestic & International).
For further details, please contact:
Mr. Neelaj Sengupta – Head – Corporate SCM & LMC, Landmark Bldg., 4th Floor, ‘A’ Wing,
Near WEH Metro Station, Chakala, Andheri (E), Mumbai – 400 093
Email: neelaj.sengupta@Larsentoubro.com Phone: 22-6696 5373

Disclaimer: This newsletter is a forum to share experiences by the Logistics fraternity within the L&T Group. The views
expressed in this Newsletter are not necessarily those of the company.
17