1. International Cargo & Logistics Conference, 2012
Kuala Lumpur, Malaysia
17-18 April 2012
C. Maheshwar
Anglo Eastern Maritime Academy

2. This presentation covers the following
topics:
Introduction - Reefer Cargo
and South Asia
The Cold chain Issues
Refrigerated Containers
Solar Powered Reefer
Containers
360 Degree and Zero Damage
Concepts
Partners in the Reefer Cargo Export Supply Chain

3.  The apples that are available in today’s
supermarkets could be as old as six years and
could have been grown in apple orchards in
New Zealand and stored in cold storages
using Controlled Atmosphere.
 They would look and taste as if they were
plucked from the apple orchard yesterday.
 That is the Power of Reefer Technology!

4.  Fruits, Vegetables and Flowers – Chilled
Cargo
 Meat, Fish, Seafood, etc. – Frozen Cargo
 Live Worms – Chilled Cargo
 Pharma products and Vaccines - Chilled
Cargo
 Temperature Sensitive Chemicals &
Explosives - Chilled or Frozen
 Photo films - Chilled cargo
 Electronic Components – Chilled Cargo

5. Carried in a 40 feet Reefer Container
 Fruits & vegetables: < US$ 60,000
 Frozen fish, frozen meat and cut flowers:
US$ 60,000 – US$ 120,000
 Chilled Meat, frozen shellfish and flower
bulbs: US$ 120,000 – US$ 300,000
 Electronic Equipment, Photo film,
computer chips, printer cartridges,
medical supplies etc: > US$ 300,000

7. South
Asia

8.  Second largest producer in  Cold storages available for
the world of fruits and only 10% of the produce.
vegetables -  Milk cold storage capacity
 Second highest producer of of only 40%
milk  Insufficient storage
 Fifth largest producer of capacity for preservation
eggs  Require billions of dollars
 Sixth largest producer of fish worth capital investment
–
The story goes on and on…………

9.  About 30% of South Asia’s production of fruits and
vegetables gets wasted because of poor post harvest
management practices.
 In India, the value is about US$ 13 billion every year.
 Tomatoes, Cauliflowers, onions and watermelons are
thrown on the highway because it is not worth the effort
to transport it to the markets.
 Cold storages are uneconomical to run, inadequate and
are located far away from the farms and harvested
products have to endure the ambient heat.

10.  1996: Polio Eradication
Program started
 2000: Expected Global
Eradication of Polio
 2007: 866 Polio cases
reported
 Fresh Polio cases are still
being reported.
 One of the reasons for the
failure of Polio Vaccination
program in India is the
absence of an effective
cold chain, especially, at the
Last Mile which rendered
the vaccine ineffective

11. The wastage of perishables is attributed to
gaps in Cold Chain because of:
 High Ambient temperature
 Poor transport infrastructure
 Lack of knowledge and awareness
 Poor roads and poor connectivity
 Dusty atmosphere
 Non availability of refrigerated carriers
 Difficult Geographical terrain
 Unreliable grid power
This results in instability in prices, farmers not
getting remunerative prices, rural
impoverishment resulting in farmers’
frustrations and suicides.

12.  RetailDistribution of perishables presents
two particular challenges:
• • Maintaining product quality throughout
the distribution chain, including
requirements for gap free cold-chain
continuity
• Managing the distribution of the products
to consumers in the “last mile” of the
distribution chain (i.e., the stage where
products are delivered from the wholesaler
or retailer to the consumer).

13.  Farmer
Village agent at Taluka Level
Market agent at Mandi level
Wholesaler
Semi-Wholesaler
Retailer
Consumer
 Contributesto Product Deterioration, especially in
case of perishable products like fruits and
vegetables due to extended post harvest time lag
without any value addition.

14.  What we need is a seamless gap-free cold
chain.
 About one-third of these post harvest losses of
perishable products can be reduced by using
Solar Powered Refrigerated Containers to
transport harvested products from farms to
cold storages.
 For India, optimum usage of the containers can
yield an annual savings of about US$ 4.5 billion.
 The investment is US$ 2.5 billion and the
payback period is just 6-9 months.

15.  External Dimensions: 20x8x8.5 Ft.
 Internal Dimensions: 18x7.5x7 Ft.
 Internal Volume: 1000 Cu. Ft.
 Payload Capacity: 21350 Kgs
 Gross Weight: 24000 Kgs
 Temperature : -25 To +35 Deg C
 Power Consumption: 3-5 KWh

16. Why Solar Power
 Depleting Fossil
Fuels
 Growing
Environmental
Concerns
 Erratic and
Unreliable Grid
Power
Myth about Solar Power
 Solar PV power is
very expensive

17.  Following Moore’s law, it is expected that with the new
generation technology with concentration equivalent of
more than 1,600 times the sun's energy onto solar cells,
it would be possible to produce electricity at a
wholesale cost of US $0.05 per kilowatt-hour (kWh)

18. For INDIA:
 Total Annual Losses in Fruits and Vegetables: 40
million MT of Value: US$ 13 bn (30% of total
production)
 Payload per Reefer Container: 21 MT
 Containerisability Factor of Fruits & Vegetables: 0.5
 No. of Containers required to transport the total
produce: 16 million
 No. of Containers required if each Container makes
one trip a day: 42,000
 Cost of a 20 ft. Container with Solar PV panel: $
15,000+$ 37,400=$ 52,400
 Cost of 42,000 Containers: $ 2.2 bn
 Reduction in Post Harvest Losses achieved per year: $
4.5 bn (35% of Total Losses).
 Payback Period: 0.5 years or 6 months

19.  The solar energy
available averages 5.0
kw/sq. m/day
 South Asia has
abundant solar
resources, receiving
about 3000 hours of
sunshine every year,
 Has a potential of
about 20 MW per sq
km

21.  Cost Of 1 Kwh Using DG Set: 15 Ct
 Cost Of Running Reefer Container Per Hour @5kwh: 75 Ct
 Cost Of Running Reefer Container Per Day (12 Hrs.): $9
 Cost Of Running Reefer Container Per Year (365 Days):
$3,285
 Cost Of Running Reefer Container Using Solar Power: Nil
 Cost of fitting Solar PV panel on a 20 ft Reefer container: $
37,400
 Cost of a 6KVA DG Set: US$7,000
 Cost of maintenance of a DG Set: US$ 3,000 per year
 Payback Period Of Solar Power Vs. DG Set: 27,400/3285=
approx 8.4 Years
 Other long term environmental and social gains.

22.  Refrigerated Containers: upto 42,000 to
start with (India alone)
 Solar PV Panels: upto 18.4 million
square feet

23.  The 69% of South Asian
population depending upon
agriculture and allied
activities will be lifted up into
positive economy.
 Better quality and nutritious
food for our population.
 Better health standards.
 Increase in awareness of the
availability and use of
technology for preservation of
food products.
 Better export potential and
increased foreign exchange
earnings.

24.  Cold chain is a logistic system that provides a series of
facilities for maintaining ideal storage conditions for
perishables from the point of origin to the point of
consumption in the food supply chain.
 The chain needs to start at the farm level (e.g. harvest
methods, pre-cooling) and cover up to the consumer
level or at least to the retail level.
 A well-organized cold chain reduces spoilage, retains
the quality of the harvested products and guarantees a
cost efficient delivery to the consumer given adequate
attention for customer service.
IF ANY OF THE LINKS IS MISSING OR IS WEAK,
THE WHOLE SYSTEM FAILS.

25.  Temperature Measurement, Monitoring,
Control and Recording
 Traceability
 Accountability
 Transparency
 Effective Communication
 Networking and Involvement

26. An integrated cold chain infrastructure covering major
production areas, processing units and distribution
centers which will call for the following:
 Strong fleet of refrigerated transport vehicles to
connect the farm level storage facilities, the
processing units and the various distribution centres.
 At retail outlets, display cabinets for marketing of
frozen food products are to be provided.
 Need to augment cold storage facilities and container
handling facilities at major ports as also an air cargo
complex for targeting the global market.
 Quality Awareness and Consciousness to compete
globally.
WE NEED SOMETHING ON THE LINES OF 360
QUALITY AND ZERO DAMAGE CONCEPT OF REEFER
PRODUCTS WHICH IS BEING USED IN EUROPE.

27.  Set of voluntary standards for specialised reefer shipping lines
and their service providers.
 Launched by a group of specialised reefer operators
(Specialised Reefer Shipping Association - SRSA) including
Great White Fleet Ltd, Green Reefers ASA, NYKLauritzenCool AB,
Seatrade Group N.V., STAR Reefers Ltd. (Blue Star Line) and
Universal Reefers Ltd./Cape Reefers in 2006
 Aims to meet customer needs by promoting the highest standard
of quality and cargo care; on reefer vessels, in port terminals and
in liner trades.
 Recognises that the specialised reefer shipping lines and their
service providers have to work jointly to achieve this goal.
 Brings transparency in the supply chain of perishables on the
basis that in a collaborative supply chain everyone involved
should assume responsibility for their activities and take
corrective action to eliminate defects.

28.  Implementing practices and using equipment in terminals
and ships that will prevent damage to cargo
 Uniform way of establishing damage and following an
agreed action plan when damaged cargo or cargo with
exceptions is presented to the terminal and ship
 Uniform way of recording exceptions at reception, loading,
unloading and delivery of cargo.
 Establishing local working procedures for ports of loading
and unloading which are compatible with the requirements
of the Code
 Establish quality teams in ports who will analyse the
damages their cause and introduce preventive measures
 Provide feedback upstream in the supply chain

29. A body dedicated to improving Food Safety
and Food Quality in the specialised reefer
shipping has been formed.
 Main task - to develop guidelines for the
implementation of the 360 Code and
develop it further to meet the needs of the
market.
 Developed Uniform Guidelines for auditors
and certification bodies that will audit the
terminal and ships.
 Classification societies and other accredited
bodies that meet the approval of the 360
Quality Association will certify the shipping
lines and the port terminals according to
certification procedures.

30.  Checkpoints are established in the supply chain to
monitor the condition of the cargo and prevent
damaged cargo from coming onboard and recording
accurately the exceptions at the time of delivery.
 The terminals and stevedores record the exceptions
at the checkpoints in a properly structured database
which allows to analyse the exceptions to reach the
Six Sigma method for improving quality.
 Lays down the conditions for inspection and
recording of exceptions, for measures taken, and
communication to everyone involved of the results –
all in a uniform way and by using properly structured
data.
 Makes the transport process transparent and
provides a firm base for taking corrective action at
one or more points in the supply chain.

31.  Zero Damage - a mindset in which we develop
respect for the products we carry along with the
livelihood of all partners in the production and
supply chain.
 Zero Damage is an industry standard adopted by
SRSA members and is a part of 360 degree Quality
Initiative of SRSA.
 Motivates people to take care of the cargo all along
the way.
 A drive against reefer cargo claims and aims to
enhance Customer Satisfaction.
 Reminds about respect for cargo and equips the crew
members with the knowledge and expertise in cargo
care, Reefer Cargo losses have been reduced
substantially by use of Zero Damage Concept.

32.  Procedures have been clearly spelt out so that
the cargo is handled economically, efficiently,
professionally and carefully.
 Checkpoints in the supply chain ensure that
responsibility is handed over smoothly removing
any ambiguity and enhancing transparency.
 Whenever any cargo damage occurs, answers
are sought as to WHY, WHERE and WHEN the
damage had occurred reinforcing the
commitment “Whoever is responsible for
damage is accountable for the damage”.

34.  Farmer/grower  Vessel
 Packing Station  Stevedore in
 Truck Discharge port
 Terminal or Cold  Terminal or Cold
store in Load Port Store in Load Port
 Stevedore in Load  Truck
Port  Distribution Centre
 Port Captain  Supermarket

35.  Being his livelihood,
the grower/farmer
takes very good care
of the cargo.
 Regular quality checks
will be carried out
during the various
stages of the growing
or production process.

36.  Refrigeration of the product at the grower’s end is
highly recommended as the grower has no control
over its handling and storage after it is sold and
leaves his hands.
 It buys the growers that extra shelf life time that the
wholesaler and retailer might reduce with poor
handling procedures.
 A grower who can meet the challenges of
preserving the quality from field to dinner table
will be able to expand his marketing opportunities
and will be able to compete better in the market
place.
 If a product does not hold up in the distribution
chain, often the grower is blamed for poor handling
practices.

37.  Even the truck driver
who takes the cargo
to the final
destination point - a
supermarket or a
local grocery store
has a role to play in
the Quality System.

38.  This could be our End Consumer!

39. This is not
THE END
This is a NEW BEGINING!

40. Namaste