• Like
  • Save
Analysis of Indian Logistics Sector - 2009
Upcoming SlideShare
Loading in...5
×
 

Analysis of Indian Logistics Sector - 2009

on

  • 6,204 views

 

Statistics

Views

Total Views
6,204
Views on SlideShare
6,204
Embed Views
0

Actions

Likes
3
Downloads
728
Comments
4

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

14 of 4 Post a comment

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • thnks
    Are you sure you want to
    Your message goes here
    Processing…
  • nice one...........
    Are you sure you want to
    Your message goes here
    Processing…
  • Good Report...any updated report available?
    Are you sure you want to
    Your message goes here
    Processing…
  • Good One
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Analysis of Indian Logistics Sector - 2009 Analysis of Indian Logistics Sector - 2009 Presentation Transcript

    • Analysis of Indian Logistics Sector - 2009 Manoj Bharadwaj Fortress Financial Services ltd. Mumbai
    • Overview of the Logistics Sector Flow of the Presentation Structure of the Logistics Sector Major Demand and Growth Drivers of Indian Logistics Comparison of Indian Logistics Sector with different countries 3PL and 4PL SWOT Analysis Challenges and Opportunities
    • Overview of the Logistics Sector: Definition of Logistics: • The process of planning, implementing, and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of meeting customer requirements Total Market Size of Logistics is estimated to be $ 95 billion Market Structure Level of Competitiveness 10 to 100 Unorganized Player: Organized crore more than • Owner with less than or equal to 5 10% 2% 100 crore trucks. 0.3% • They contribute about 80% of the 1 to 10 crore revenue. 9% Unorganized 90% 0.3 to 1 crore 89% Level of competition is extremely intense, undercutting beyond a point Penetrating this huge may not be feasible. Hence volume of Unorganized LSP’s have to go beyond Players is by far the rendering just the basic biggest challenge services. LSP: Logistic Service Provider
    • Share amongst different segments of Logistics sector: Cargo Share amongst different Share in Revenue Generation amongst Segments different Segments Annual Turnover in 2008-09 (INR Civil Aviation (Negligible) Civil Segments billion) Aviation Railways 534 1% Railways Railways 13% Roadways 2086 24% Warehousin g Ports 91 Major Ports 37% Roads 15% 55% Warehousing 1,500 Roadways 47% Minor Ports Ports Civil Aviation 43 6% 2% Where do we stand Globally ..  Nearly 70% of domestic freight is carried by the Road segment and the •Indian Railways is 2nd largest in the world just marginally behind remaining by Rail segment while the China contribution of the remaining two segments is comparatively negligible. •Indian Roadways is also the 2nd largest behind U.S which has 6.4 million km of network.  International freight is completely dominated by Sea Port Segment. •India has the largest merchant shipping fleet among the developing countries and is ranked 17th globally. •Constitutes just 3% of global air cargo.
    • Structure of Logistics Sector Projected Barriers to Capex Logistics Segment Growth Drivers Growth Rate entry Dominance of Players Requirement Nature of Competition Courier Domestic growth 20-25% Low Unorganized Low Local XPS FMCG, Retail, Auto & Auto Ancillaries 20-25% High Organized High National Agriculture commodities, Warehousing Manufacturing activity 40% Medium Unorganized High Regional to National Agriculture commodities, Trucking Manufacturing activity 12% Low Unorganized Low Local Container EXIM and domestic trade 15-20% Medium Organized High National Inland Container Depots / Container Freight Organized / Stations EXIM 15-20% Low Unorganized High Local Value Driver: Characteristics of Logistics Sector  Competitive Pricing High costs of operations  Safety Low margins  Customer Satisfaction Shortage of talent  Wide Geographic Reach Infrastructural bottlenecks  Operational Efficiency Demand from clients for investing in technology and providing one-stop solutions to all their needs.  Time Factor Consolidation through acquisitions, mergers and alliances.  Value added services
    • Major Cost Elements Customer Shopping 6% Losses Loses of 14% translates into 14% roughly INR 290 billion for Transportation various industries primarily Packaging 35% due to the Unorganized 11% section Inventory Handling and Warehousing 34% Certainly a huge opportunity for Organized players to cash in by providing the requisite safety and the insurance coverage for the truck load of goods.
    • Major Demand and Growth Drivers of Indian Logistics: Enhances the market reach of the industry Logistics Growth Driver Demand Driver Growth Driver Government Policies, Plans and Agricultural industry Manufacturing Industry Infrastructure Taxation Roads Implementation Textiles of GST Auto Railways Accounts for Food & about 50% of the Cement Beverages total logistics market Ports Steel FMCG Civil Aviation Favorable policies drives the growth of Warehouses logistics sector FMCG, Pharma and Food processing apart from agro products have substantial requirement
    • Government Plans 11th Five Year Plan (2007-12) (Roads, Railways, Ports and Civil Aviation) 8% of India’s GDP Slightly over 3 times (INR billion) in 2009 jump from 10th 5YP 4,457 9.77% 56.3% 24.08% 9.84% 10th 10th 10th 10th Railways Roadways Shipping & Ports Civil Aviation 606 2,510 621 1,073 54 438 129 435 > 4 times 1.72 times 8 times 3.4 times Private 867 368 934 Investments Gross Budgetary Support (GBS) Internal and Extra Budgetary Resource (IEBR) Railways - 2,510 INR billion Roadways - 1,941 INR billion Shipping & Ports – 807 INR billion Civil Aviation - 1,370 INR billion GBS GBS 1% 5% GBS GBS Private Private IEBR 34% 37% Investmen Investme 31% ts nts Private IEBR 45% IEBR Investments 46% 66% IEBR 49% 68% 18%
    • Government Policies and Taxation Rationalization of tax: Goods and Services Tax (GST) – Proposed to be implemented by April 2010. Impact •Aims to remove multiple taxation by abolishing taxes such as Octroi, Central sales tax, State level sales •The introduction of GST in India would mean that tax, entry tax, stamp duty, telecom licence manufactures will now base their logistics decisions on fees, turnover tax, tax on consumption or sale of operational efficiency instead of tax optimization. electricity, taxes on transportation of goods and services •Will enable manufacturers and 3PLs to set-up and position their warehouses and distribution channels •Hopes to increase the tax base based on the considerations of time, cost and logic. •Aims to remove the disparity in taxation or •Manufacturers will now be encouraged to outsource differential treatment to manufacturing and service their logistics and supply chain operations. sector. Other Tax Reliefs The 100 % deduction allowed in respect of capital expenditure for the business of setting up and operating cold chain facilities for specified products, and setting up and operating warehousing facilities for storage of agricultural produce. The enhancement of limit for disallowance of expenditure made in the case of transporters i.e. to raise the limit from Rs 20,000 to Rs 35,000 effective October 1, 2009 and NIL TDS for road transport, would certainly address the stringent practical difficulties, which is step towards moving of this Industry from unorganised to organised structure. Deductions under section 80-IA meant for infrastructure industry, which has been extended to railways.
    • Infrastructure Roadways: Post-Liberalization A few Vital Stats .. Type of Road Length (in km) Percentage Average Growth of NH during each 5 YP is •70% of freight taken by roads Expressways 200 --- 24.08% •NH carries about 40% of road traffic National Highways (NH) 70,548 2.12% •Avg. truck speed in NH – 20 to 30 km / hr State Highways (SH) 1,31,699 3.96% Major District Roads Number of kilometers •SH and MDR carries 40% of road traffic (MDR) 4,67,763 14.08% added post- liberalization 39,901 •Traffic on roads is growing by 7% - 10% Rural and Other Roads 26,50,000 79.81% km. •Vehicle population 12% growth Total Length 33,20,210 (as of 2009) Sale of Commercial Vehicles (in lakhs) Post liberalization Road Freight Valuation (INR billion) growth 9.1% and 6 2500 growth from 2000 is 4.9 10.6% 5 4.6 2086 2000 3.8 4 3.5 1430 3.1 1500 3 2.6 1.9 1000 840 2 610 Growth in 500 Commercial 1 vehicles from 0 2002-03 is 12.2% 0 1995 2000 2005 2009 (Source till 2005: KPMG) (Source : SIAM)
    • Infrastructure Projects undertaken by NHAI: Development Projects: S. No. Name of Project Likely Cost ( INR billion) Completion Dates 1. Completion of GQ and EW-NS corridors 524 December 2009 (Phase I and II) 2. 4 -laning of 11,113 km under NHDP Phase-III 724 December 2013 3. 2-laning with paved shoulders of 20,000 km 278 --- of National Highways under NHDP Phase-IV 4. 6-laning of selected stretches of National 412 December 2012 Highways under NHDP Phase-V 5. Development of 1000 km of expressways 166 December 2015 under NHDP Phase-VI 6. Construction of ring roads, flyovers and 166 December 2015 bypasses on selected stretches under NHDP Phase-VII. Total 2,272 Current Status of Projects: Corridors Total Length Length Completed Length Under Balance for award (as of Dec 2009) (in km) (in km) implementation (in km) (in km) Golden Quadrilateral 5846 5713 133 ---- North-South & East- 7142 3291 3030 821 West Port Connectivity 380 206 168 06 Out of a total length of 6283 kms under implementation, 4/6 NHDP Phase-III 12,109 659 1816 9624 laning has been completed for a NHDP Phase-V 6500 77 953 5470 partial length of 2130 kms. Total 32939 10705 6283 15951
    • Infrastructure Development Projects: Major Industrial Regions Delhi Mumbai Industrial Corridor Delhi-Mumbai Industrial Corridor is a mega infra-structure project of $90 billion with the financial & technical aids from Japan, covering an overall length of 1483 KMs between the Dadri in Delhi and JNPT in Mumbai. This Dedicated Freight Corridor envisages a high-speed connectivity for High Axle Load Wagons (25 Tonne) of Double Stacked Container Trains supported by high power locomotives. Distribution of length of the corridor indicates that Rajasthan (39%) and Gujarat (38%) together constitute 77% of the total length of the alignment of freight corridor, followed by Haryana and Maharashtra 10% each and Uttar Pradesh and National Capital Region of Delhi 1.5 % of total length each. National Expressway: This project incorporates Nine Mega Industrial zones of about 200-250 sq. km., Target: 15,766 km. High speed freight line, Three ports, and Phasing of expressway: 2012, 2017, 2022 Six air ports; Six-lane intersection-free expressway connecting Delhi and Mumbai Project Cost estimation: >> INR 2.5 trillion 4000 MW power plant. Plan for Phase I: 3,530 km (Report from Yahoo News Several industrial estates and clusters, industrial hubs, with top-of- 9th Dec ’09) the-line infrastructure would be developed along this corridor to Estimated Cost for Phase I: Rs. 20,000 crore. attract more foreign investment. Lanes: 6 to 8 lanes Funds for the projects would come from the Indian government, Japanese loans, and investment by Japanese firms and through Japan 11 stretches and 12 states identified depository receipts issued by the Indian companies.
    • Infrastructure Railways Cargo Constituents and its share Railways: Iron & Steel 3% Others Passenger traffic / day 18 million Fertilizers 14% 5% Freight traffic / day 2 million tonnes Coal 43% Railway coverage 63,465 km Foodgrains 6% Freights wagons 2,00,000 POL Coaches 50,000 5% Cement 9% Locomotives 8,000 Ore to Ore - Steel (as of 2009) Export plants 7% 8% Freight Earnings (INR billion) Cargo (in million metric tonnes) 600 534 Growth of 14.75% 848 473 900 785 500 800 726 416 667 700 602 400 363 600 308 500 300 400 200 300 200 100 100 Growth of 8.9% 0 0
    • Infrastructure Development Projects: Dedicated Freight Corridor – Rs. 40,000 crore States Traversed Western DFC (in kms) Haryana 192 Rajasthan 553 Gujarat 588 Maharashtra 150 Total 1483 Western Logistics Park: Corridor 1483 km JNPT in Mumbai to Dadri in U.P Proposed to set up Logistics Parks at 1. Mumbai area, particularly in the vicinity of Kalyan-Ulhasnagar or Vashi- Projected Traffic (in million tonnes) Belapur in Navi Mumbai. 45 2. Vapi in southern Gujarat 40 40 3. Ahmedabad area in Gujarat, 4. Gandhidham in the Kutch region of Gujarat 35 5. Jaipur area in Rajasthan, 30 6. NCR of Delhi. 25 23 These parks are proposed to be developed on Public Private Partnership mode by 20 creating a sub-SPV for the same. 15 Cargo Constituents: 10 6.2 5 0.69  ISO containers from JNPT and Mumbai Port in Maharashtra and ports of 0 Pipavav, Mundra and Kandla in Gujarat destined for ICDs located in northern India 2005-06 2021-22  POL, Fertilizers, Food grains, Salt, Coal, Iron & Steel and Cement. Western Corridor Container WC
    • Infrastructure Development Projects: States Traversed Eastern DFC (in kms) Punjab 102 Haryana 82 Uttar Pradesh 1002 Bihar 93 Total 1279 Eastern Corridor 1279 km Sonnagar in Bihar to Ludhiana in Punjab Logistics Parks: It is also proposed to set up Logistics Park at Kanpur in U.P. Projected Traffic (in million tonnes) and Ludhiana in Punjab. 140 116 120 The parks are proposed to be developed on Public Private 100 Partnership mode by creating a sub-SPV for the same. 80 Cargo constituents: 60 38 40 Coal, finished steel, food grains, cement, fertilizer, limestone and general goods 20 0 2005-06 2021-22
    • Capacity Enhancement – Spread of Funds Other Measures for Running Of 25 Tones Axle Running Of 23/24 Coach Enhancing Capacity Load On Iron Ore Routes Length Trains 3% 3% 1% Metropolitan Projects Funds for setting 6% New Line Projects up Logistics park 12% Rs. 770 crore Other Railway Electrification Traffic 4% Facility works Logistic Park 3% 1% Freight Terminals 2% Grade Separators/Flyovers/Bye- pass lines Gauge Conversion 2% 24% Terminals at State Capitals and important tourists places 1% Traffic Facility Works Mega Terminals at 11% Metropolitan cities 2% Doubling Total Funds allocated in 11th five 25% year plan: Rs. 77,050 crore
    • Infrastructure A few Vital Stats .. *Some 60% of India’s container traffic is handled by the Jawaharlal Nehru Port Trust in Mumbai Ports: *It has just 9 berths compared to 40 in the main port of No. Traffic Capacity Singapore. Major Ports 12 465.7 MT 508.6 MT *It takes an average of 21 days to clear import cargo in India compared to just 3 in Singapore. Minor Ports 187 170 MT 228.31 MT *Cargo handling is projected to grow at 7.7% until 2013-14. (as of 2006-07) *Only 43 of the 187 minor ports can handle cargo Projections for 2012: *Mundra port alone handles 60% of minor port traffic Traffic Capacity Coal Others 13% Major ports 800 MT 1001.8 MT 17% Container Minor ports 300 MT 345.19 MT Ports Cargo 12% Constituents and its POL & its Share products Development Project: Fertilizer Iron Ore 36% NMDP (National Maritime Development Programme): and FRM 18% 4% Objective: • Upgrade and modernize the port infrastructure in India and benchmark its performance against global standards. • Total investment for the programme is Rs. 1, 00,339 crore and out of them about Rs. 34,505 crore is expected from the private sector. Allocation Rs. 55,804 crore for port sector. Project •Construction / up gradation of birth, Covers Rs. 44,535 crore for shipping and inland •Deepening of channels, water transport sectors. Target To be completed in phases within 2011- •Rail / road connectivity projects, 12. •Equipment up gradation and modernization scheme, No. of 276 Projects •Other related schemes for creation of backup facilities.
    • Infrastructure Cargo (in million metric tonnes) Major Cargo Constituents 2 1.8 •Express Mail Civil Aviation: 1.8 •Computers 1.6 •Chips 1.4 1.2 •Electronic and Optical 1.2 No. of Airports 449 airports / airstrips Equipment 1 0.8 0.8 •Precision Instruments 0.6 Under AAI 92 airports and 0.6 •Perishable food stuff 28 Civil enclaves at defence airfields 0.4 0.2 Share in cargo traffic Major Airports 6 0 2008-09 2011-12 (E) Non Non Metro Airports 35 Metro International Domestic Airport Domestic Airports 87 s Major 12% Airport •12.1% growth rate in Internatinal International Airports 12 s cargo 88% •10.1% growth rate in domestic (as of 2009) cargo AAI: Airport Authority of India Development Project: MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur.) The Cargo hub in Nagpur is Cost: INR 25.8 billion built to handle nearly 50% >> Spread over an area of 4025 Hectares of the total air cargo traffic all over India >> The airport will have parking space for 50 aircraft at any time with 50 additional bays at fringe areas. >> With a projected target of serving 14 million passengers and handle 0.87 million tonnes of cargo this is one of largest aviation project in India.
    • Infrastructure Warehouses: As per planning commission & industry estimates: • Total existing warehousing capacity is 80 million MT out of which CWC has 10.8 million MT and 21.9.million MT in SWC • There are three agencies in the public sector which are engaged in building large scale storage/warehousing capacity, namely, Food Corporation of India (FCI), Central Warehousing Corporation (CWC) and 17 State Warehousing Corporations (SWCs). Requirement: • Additional warehousing capacity of 35 million MT in next 5 to 10 years at an investment of about INR 6 billion. Current Status: Major investments on these infrastructures have come from Government agencies like CWC, SWC, CONCOR etc. Current private sector initiatives are small and sporadic. Private sector warehousing are of poor quality, small, fragmented and does not meet infrastructure standards. No quality standards or benchmarks are followed in infrastructure creation Developmental Works: • IL&FS is working with Continental Warehousing Corporation Ltd to set up six agri parks across India FTWZ • Primary objective is to create trade related infrastructure, envisaging world-class infrastructure for warehousing of various products • FTWZ addresses these issues effectively as they would enable supply chain / logistics to function much more efficiently by removing the cargo bottlenecks witnessed at the ICDs • In addition, such zones are envisaged to provide common infrastructure such as storage and handling equipments, shared storage space, etc. which would enable the apportionment of associated capital costs across a larger base of users leading to significant costs reduction. Reference: IF&LS
    • INLAND CONTAINER DEPOTS (ICD)  Robust growth of exim trade and capacity constraints in movement and evacuation of cargo has lead to a surging demand for greenfield ICDs and expansion of existing facilities  At least 40 to 50 new rail/ road ICDs/ CFS across the country needed to handle the projected traffic in next 5 to 10 years  IL&FS is initiating development of ICDs on PPP format with agencies like CONCOR as well as private enterprises with the objective of filling up this critical infrastructure need  To create economies of scale, the business plan of ICD is being expanded to include SCM functions like warehousing, C&F (Clearing and Forwarding) and other value added services to give the project shape of “Mega Logistics Park” INTEGRATED TRANSPORT CENTER  The unplanned development of transport nagars across major industrial townships, metros, mini metros etc. This has led to inefficient utilization of space, shabby infrastructures, road jams and danger to human life  IL&FS has initiated development of integrated and modern logistics cum transport centers across major locations in the country on PPP format  The centers will lead to integrated development of warehousing, transportation and traffic planning leading to a much better logistics operations  Development of such integrated estates on in Uttaranchal, Chattisgarh, North East and Jharkahnd, in collaboration with respective State Governments Reference: IF&LS
    • Manufacturing Industry Industry Size in 2009 (in INR billion) 15% 3000 16% 14% Cost of Logistics to Total Sales 2500 2412 2200 12% 2000 10% 1480 8% 1500 6% 6% 5% 1000 4% 605 590 4% 3% 3% 489 500 2% 0% 0 Steel Textiles Auto Cement FMCG F&B Impact on the Logistics Sector Cement Industry: Share of Logistics (in INR billion) Challenge: •Road transportation beyond 200 kms is not 160 145 economical therefore about 55% of cement is being 140 moved by the railways. There is also the problem of inadequate availability of wagons especially on 120 western railways and southeastern railways. 100 91 Opportunity: 80 66 •Under this scenario, manufacturers are looking for 60 sea routes, this being not only cheap but also 44 reducing the losses in transit. 40 24 24 20 •Today, 70% of the cement movement worldwide is by sea compared to 1% in India. 0 Steel Textiles Auto Cement FMCG F&B
    • Comparison amongst different countries Developed Country Logistics Cost / GDP Infrastructure Bottlenecks China 13% to 15% US, UK 9% Europe 10% Japan 11.4% India (45% of GDP) 13% to 14% Country Logistics activities performed by 3PL / Logistics activities China, India <10% Emerging US, UK 57% Low High Europe 30% to 40% Japan 80% Estimated Size of 3PL and 4PL in 20 Years Current GDP in 2029 Share of Share of 3PL Share of 3PL GDP (in INR with a Logistics (11% and 4PL with a and 4PL with That’s about 40 times jump trillion) growth rate of 45% of GDP) 30% market 40% market in market size in a span of of 7% (in (in INR trillion) Share (in INR share (in INR 20 years from the current INR trillion) trillion) trillion) market size of INR 78 billion 55 212.83 10.53 3.16 4.21
    • Definition of 3PL: • A 3PL provider is a company which supplies /co-ordinates logistics functions across multiple links in the supply chain. • The company acts as a ‘third party’ facilitator between seller/manufacturer (the ‘first party’) and buyer/user (the ‘second party’).” Supply Chain Model 3PL 3PL Manufacturing Unit Design Market Customers / End Supplier’s Acquire Convert Distribute Distributers Suppliers Users Supplier Mngmt Control 3PL 3PL
    • Why 3PL ? For Operation Efficiency For Business Growth Improve focus on core activities Operational cost reduction Improve return on assets  Reduced cycle time Diverting capital investment  More specialized logistics expertise Access/ Expansion to unfamiliar market  Improve on time delivery Higher Profitability  Enhance geographic reach Increased Sales and Market Share  Flexibility in operations Enhanced Customer Service Why not? • Inability to respond to changing needs • Non compatibility of IT systems • Lack of grasp of business goals • Difficulty to manage and change provider • Unreliable promises from providers • Fear of loss of control • Concerns about capability of providers • Lack of confidence in provider • Fear of leakage of important information • Poor infrastructure of providers company
    • 4PL:  It acts as single interface between the client and multiple logistics service providers.  All aspects of the client’s supply chain are managed by the 4PL organisation.  The 4PL organization is often separate entity established as a joint venture or long term contract between a primarily client and one or more partners.  It is also possible for a major 3PL provider to form a 4PL organisation within existing structure. Key Characteristics: Client  Hybrid organisation formed from a number of 3PL different entities  Typically established as a JV or long term contract 3PL  Responsible for management and operation of entire 4PL supply chain  Continuous flow of information between partners and 3PL 4PL organisation
    • SWOT Analysis of Logistics Sector: STRENGTHS WEAKNESS  Extremely critical for manufacturing  High cost – low margin business industry and agri commodity industry  Large number of unorganized players  No dearth in volumes  Low IT penetration  Critical component in operational efficiency  Highly fragmented  Contributes heavily towards customer  High Capital expenditure satisfaction OPPORTUNITIES Implementation of GST from 1st April 2011 Implementation of Golden quadrilateral THREATS and NS-EW corridors.  Increase in fuel costs Heavy investments to improve  Government Policy infrastructure through developmental  Taxation projects like Mihan, delhi-mumbai industrial corridor, Dedicated freight corridor and National Maritime Development Projects.
    • Challenges: Unfair Competition Solution / Opportunity: Unorganized players get away without paying taxes Implies that a truckload loss of Goods is always Don’t follow the operating norms stipulated in the motor vehicle act such as round the corner. Organized players can cash in by quality of drivers, vehicles, volume and weight restriction. providing the requisite level of safety and insurance cover for goods. Diseconomies of scale Solution / Opportunity: Differential sales tax structure in different states Proposal for implementation of GST. Apart from non-uniform tax structure, LSP’s (Logistics Service Provider) have With uniform taxation across all states companies to pay other kinds of taxes like octrois. could focus on supply chain efficiency rather than Governments failure in implementation of VAT since 1st of April 2005 Tax avoidance optimization. Face multiple check post Solution / Opportunity: This delays the process of delivery Integration of IT into the process like EDI could Compliance with varying documentation requirement of different states is greatly speed up the whole process and bring in the certainly a difficulty. required efficiency. Low IT penetration Lack of communication infrastructure Solution / Opportunity: Lack of visibility Penetration of 3PL players and high level of Lack of real time tracking ability investments into technology like GPRS would This leads to a lot of uncertainty and lack of transparency in terms of cost change the scenario. structure and service delivery Highly Fragmented Sector Solution / Opportunity: Value Added Services provides a great LSP’s stick to their basic services. They don’t provide value added services opportunity to increase the margins. like packaging / labeling, order processing, distribution, customer support etc. Solution / Opportunity: Bribery and Police harassment The scenario could grossly change with greater $5 billion paid by truckers annually penetration of Organized players.
    • Some of the major logistics companies .. Listed Shipping Road Transport Companies - Large Companies Associated Road CRC Carrier Patel Integrated Essar Shipping ABC India Autoriders Intl. Delhi Assam Rdwy Peirce Leslie(I) GE Shipping Co Adani Agri Log. Balurghat Tech Premier Road Car Great Offshore Agarwal Indl. Broekman Logisti DLF Retail Reliance Logis. Mercator Lines Agrocargo Trans. Bulk Cem.Corpn. E I T A India Roadways India SCI Allcargo Global Central Province Frontline Corp. SER Inds. Varun Ship. Co. Alltrans Logistc Chart.Logistics Inland Vikash Southern Roadwys Listed Shipping Alltrans Port Coastal Roadways Inter State Oil Sri Venkatesa Tr Companies – Medium & Small Arshiya Intl. Kausar India T N St Trans Coi Chowgule Steam Arvind Roadlines Containerway Int T N St Trans Kum Garware Offshore Assam Beng.Carr Wilson Sandhu Vins Overseas Transport Corp. SEAMEC Ltd Shreyas Shipping Courier Corporate Courier Container Konkan Orbit Multimedia Corpn. Rly.Corpn SKS Logistics mundra port Blue Dart Exp. Gati Skypak Serv. Sp. Delhi Metro Elbee Express Rail Chokhani Global Killick Air Cour gateway dis Elbee Services
    • Source and References Merci Beaucoup ..
    • National Expressway Cost estimation for a 100 km 4 lane expressway - Rs. Mumbai-Pune Expressway Ganga Expressway 1784 Cost estimation for a 100 km 6 lane expressway - Rs. Taj Expressway Kundli-Manesar-Palwal Expressway(KMP) 2548 Delhi-Noida Direct Flyway Eastern Peripheral Expressway Funding options including PPP mode, cost sharing by states/ Centre, Commercial utilization of land Chennai-Bangalore Expressway Pathankot-Jalandhar-Ajmer Expressway within/beyond ROW etc. Jaipur-Kishangarh Expressway Bangalore-Mysore Expressway At present expressway handles about 30,000 PCUs and is designed to handle up to 10,00,000 PCUs. Durgapur Expressway Hosur Road Expressway Belghoria Expressway PV Narsimha Rao Expressway to HIAL PSU: Passenger Carrying Units Panipat Elevated Expressway Chennai Elevated Expressway Shimla-Chandigarh Expressway Mumbai eastern Freeway that starts from CST The Uttar Pradesh government is planning five more expressways in the state. • Greater Noida-Saharanpur-Dehradun expressway (in partnership with the Uttarakhand state government) • Jhansi-Lucknow expressway The five proposed expressways will have a combined length of around 1,400km. • Lucknow-Gorakhpur expressway • Agra-Kanpur-Lucknow expressway • Farrukhabad-Kotdwar expressway. Back
    • National Highways Sr.No. Name of the State /Union Territory Length (Kms) 1 Andhra Pradesh 4,537 22 Nagaland 494 2 Arunachal Pradesh 1992 23 Orissa 3704 3 Assam 2836 24 Pondicherry 53 4 Bihar 3642 25 Punjab 1557 5 Chandigarh 24 26 Rajasthan 5585 6 Chhatisgarh 2184 27 Sikkim 62 7 Delhi 72 28 Tamil Nadu 4832 8 Goa 269 29 Tripura 400 9 Gujarat 3245 30 Uttar Pradesh 5874 10 Haryana 1512 31 Uttaranchal 1991 11 Himachal Pradesh 1409 32 West Bengal 2524 12 Jammu & Kashmir 1245 33 Andaman & Nicobar 300 13 Jharkhand 1805 Total 70,548 14 Karnataka 4396 15 Kerala 1457 16 Uttarakhand 2042 17 Madhya Pradesh 4670 18 Maharashtra 4176 19 Manipur 959 20 Meghalaya 810 21 Mizoram 927 Back
    • Cargo handled by the Major Ports in tonnes of '000 PORT 2003-04 2004-05 2005-06 2006-07 2007-08 % Growth Annualised growth KOLKATA 8,693 9,945 10,806 12,596 13,741 58.07 12.13% HALDIA 32,567 36,262 42,337 42,454 43,541 33.70 7.53% PARADIP 25,311 30,104 33,109 38,517 42,438 67.67 13.79% VIZAG 47,736 50,147 55,801 56,385 64,597 35.32 7.86% ENNORE 9,277 9,480 9,168 10,714 11,563 24.64 5.66% CHEENAI 36,710 43,806 47,248 53,414 57,154 55.69 11.70% TUTICORIN 13,678 15,811 17,139 18,001 21,480 57.04 11.94% COCHIN 13,572 14,095 13,887 15,257 15,810 16.49 3.89% NMPT 26,673 33,891 34,451 32,042 36,019 35.04 7.80% MORMUGAO 27,874 30,659 31,688 34,241 35,128 26.02 5.95% MUMBAI 29,995 35,187 44,190 52,364 57,039 90.16 17.43% JNPT 31,190 32,808 37,836 44,815 55,756 57.60 15.63% KANDLA 41,523 41,551 45,907 52,982 64,893 56.28 11.81% TOTAL 3,44,799 3,83,746 4,23,567 4,63,782 5,19,159 50.58 10.77% Back
    • GDP and industry contribution Sector Employment Interms of contribution Agriculture 60.00% 27.00% Service 28.00% 55.00% Industrial 12.00% 18.00% Back
    • EXIM Major Items of imports: * Gold, * Cashew Nuts Major items of exports: * Inorganic Chemicals, Major Exports * Cotton yarn, fabrics made ups etc. * Wood & Wood Products, Industries * drugs, pharmaceuticals and fine chemicals * Metalifers ors & Metal Scrap, Petroleum products * manufactures of Metals * Iron & Steel, Textile goods * Machinery and Instruments * Cotton raw. Comb/uncombed/waste, Gems and jewellary * Man made Yarn, Fabrics Made ups * Coal, coke & Briquettes etc. Engineering goods * Transport equipment * Pulp and waste paper, Chemicals * Primary and Semi finished iron and steel * Non ferrous metals, Leather * RMG cotton including accessories * Organic chemicals, * Plastic and linoleum products * Machinery except elect. & electronic, * Inorganic/organic/agro chemicals. * Fertilizer crude, * Electronic goods, * Pearls precious semiprecious stones. Back
    • Catering to Agricultural Industry Major agricultural products include Poultry and diary products •Rice •Cattle •Wheat •Water buffalo •Oilseed •Sheep •Cotton •Goats •Tea •Poultry •Potatoes •Fish •Jute sugarcane Back
    • Major Industries Textiles Cement Chemicals Mining Food processing Petroleum Steel Machinery Transportation equipment Software Industrial Regions • Mumbai-Pune Region, • Hugli Region, Major Industrial belts .. Middle Malabar • Bangalore-Tamil Nadu Region, .. Ambala-Amritsar .. Adilabad-Nizambad • Gujarat Region, .. Saharanpur-Muzzaffarnagar .. Allahabad-Varanasi-Mirzapur • ChhotaNagpur Region, .. Indorer-Dewas-Ujjaini .. Bhojpur-Mungar • Vishakhapatnam-Guntur Region, .. Jaipur-Ajmer .. Durg-Raipur • Gurgaon-Delhi-Meerut Region, .. Kolhapur-South Kannada .. Bilaspur-Korba .. Northern-Malabar .. Brahmaputra valley • Kollam-Thiruvantapuram Region. Back