This document provides an overview of the transportation and logistics industry in India. It discusses the key modes of transportation including road, rail, water and air. It then summarizes the major segments of the Indian logistics industry including transportation, warehousing, freight forwarding and value-added logistics. The document also lists and briefly describes the top 10 logistics companies in India and some other major competitors in the industry. It highlights the growth of the logistics industry in India in recent years due to initiatives like Make in India and increasing e-commerce.

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INDUSTRYANALYSIS
TRANSPORTATION
AND
LOGISTICS
Md Wasim Akram
XIME, Chennai
Batch 2017

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BRIEF CONTENTS
 Introduction
 Definition-Transportation and Logistics
 Fields of Logistics
 Modesof Transportation and Logistics
 Indian Logistic Industry
 Overview
 Indian Logistic Segment
 Logistic Industry in India
 Competitorsand their Performance
 Issues and Challenges
 Recent Development
 GovernmentInitiatives

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Introduction
Transport or transportation is the movement of humans, animals and goods from one location to
another. Modes of transport include air, land (rail and road), water, cable, pipeline and space.
Logistic is the process of planning, implementing, and controlling procedures for the efficient and effective
transportation and storage of goods including services, and related information from the point of origin to the
point of consumption for the purpose of conforming to customer requirements.
Logistics is broader than transportation. While transportation focuses on the 'movement' of goods from one
place to the other, logistics refers to the whole 'flow' management which includes not only transportation, but
also
 Packaging
 Containerization
 Documentation
 Insurance
 Storage
 Importing and Exporting Regulations
 Freight Damage Claims
 Working & collaborating with other executives within the supply chain
 Managing vendors and partners
 Responsible for mitigating risk and mitigating expenditures
Given the services performed by logisticians, the main fields of logistics can be broken down as
follows:
 Procurement logistics
 Distribution logistics
 After-sales logistics
 Disposal logistics
 Reverse logistics
 Green logistics
 Global logistics
 Domestics logistics
 Concierge Service
 RAM logistics
 Asset Control Logistics
 POS Material Logistics
 Emergency Logistics
 Production Logistics
 Construction Logistics
 Capital Project Logistics
 Digital Logistics

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Modes of Transportation and logistics
Road
Road transportation is one of the most basic and historical means of transportation from one place to
another. There are many different types of automobiles found on roads, although trucks and carriers typically
are used for carrying or delivering freight. Road transportation incurs a relatively lower cost than other
logistic forms and has a widely recognizable and flexible route. However, transport by road takes a relatively
longer period of time than other possible means of transportation, and it offers a limited capacity. Road
transport is most often used for relatively inexpensive, non-perishable items or for shorter distances.
Rail
Rail transport uses freight trains for the delivery of merchandise. Freight trains are usually powered by
diesel, electricity and steam. Since the late 1900s container trains were considered to be the dominant
solution for bulk quantities of freight, but as they lack the flexibility of road transport and incur an additional
transshipment cost, this logistics method has become a little less popular in recent times. However, using rail
transport can be less expensive if freight is large and heavy and the pickup point as well as the delivery point
is near the rail head.
Water
Water transport uses ships and large commercial vessels that carry billions of tons of cargo every year.
Developed in the 18th century, steam engines have been a long favorite choice for making ships move,
although now a little more refined type of petroleum referred to as bunker fuel is used instead. Sea, lake or
river transport is particularly effective for significantly large quantities of goods that are non-perishable in
nature and for cities or states that have water access. Moreover, transport via water is considerably less
expensive than other logistics methods, which makes it one of the most widely used choices of transport for
merchandise.
Air
Merchandise is carried in cargo holds within passenger airlines and/or viaaircraft designed to carry freight
alone. Although air transport is more expensive than all other means of transportation, it is undeniably most
time-efficient. Perishable merchandise like fruits and vegetables are mostly sent by air.

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Indian Logistic Industry
Overview:
In the wake of globalization, the importance of logistics is increasing as more and more, both national and
multi-national companies are sourcing, manufacturing and distributing their products and services on a
global scale. Thus, the recognition of performance of logistics industry would become prime importance of
economic development for India in long term. The Indian logistic industry has been gaining traction, with e-
commerce penetration, economy revival, proposed GST implementation and government initiatives like
“Make in India”, National Integrated Logistic Policy, 100% FDI in warehouses and food storage facilities, etc.
Some of the aforementioned initiatives during FY12-FY16 (refers to the period April 1 to March 31) have led
to significant improvement in functioning and operations of logistics companies in India which is reflected in
multiple notching up of India’s logistic performance index (LPI) rank by 19 places to 35th position from 54th
position as per LPI 2016 report by World Bank. Furthermore, with respect to India’s GDP growth the logistics
industry is expected to grow at 1-1.5x as logistics business is directly correlated with economic activity.
Considering the aforementioned aspect the Indian logistic industry is projected to grow at a CAGR of 15-20%
during FY16~FY20.
Source: CMIE
10.18
11.49
8.15
10.41 10
8.1
7.4
6
7.3 7.6
0
2
4
6
8
10
12
14
FY12 FY13 FY14 FY15 FY16
Logistic companies growth rate GDP Growth rate
0
0.5
1
1.5
2
FY12 FY13 FY14 FY15 FY16
Growth oflogistic industrywrt GDP
Growth of logistic industry wrt GDP

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Indian logistic segment
The Indian logistic sector is primarily categorized into four segments comprising Transportation (rail, road,
air, water-ways), warehousing (Container freight stations and Inland Container Depots), freight forwarding
and value-added logistics. The transportation contributes maximum (60%) to the whole pie of logistic sector
which comprises of various means such as road, rail, air and water. India being emerging country is primarily
dependent upon transportation through land, ie, road and rail. The transportation through road and rail
together contributes about 56% followed by Warehousing 24.5% comprising industrial and agricultural
storage in the entire pie of logistics segment.
60%
24%
10%
5%
Categories Contribution
Transportation
Warehouse
Freight forwarding
Value added logistics
36%
19%
5%
1%
Tranportation mode Contributionout of 60%
Road
Rail
Water
Air

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Logistic industry in India
Logistics industry in India is an industry that has not achieved its much deserved attention or recognition. It
is an area that is ripe with potential and yet the resources are far from complete utilizations. There is
however a huge demand for logistic services in India especially with the growth of the Indian economy along
with the influx of new companies in sectors that was otherwise unknown. Estimated at a value of $14 billion
US dollars this industry is slated for another 9% to 10% growth in the years to come.
TOP 10 LOGISTIC COMPANIES IN INDIA 2017
 DHL
 Blue Dart
 TNT Express
 DTDC
 All cargo logistics ltd
 Agarwal Packers and movers
 Gati
 FedEx
 First Flight
 Globe Express services
1. First in the listis DHL. DHL India is a part of global logistics giant Deutsche Post DHL Group, which is
present in 220+ countries in the world.
In India, they offer Express Delivery Solutions, International Express Delivery, Global Forwarding (By Air, sea,
Rail, and Road), ecommerce Logistics, Freight Transportation, Warehousing & Distribution, Temperature
Controlled Logistics, and Supply Chain Solutions. They have separate sections, which handle industry specific
logistics such as Aerospace, Automotive, Chemical, and Consumer Domains.
2. Second in the list is Blue Dart. Blue Dart Express - Blue Dart Express is among India's most trusted logistic
companies. It was established in the year 1991 at Mumbai. They were the first Logistic Company to come up
with India's first international air package service. Today, they serve entire length and breadth of the country
with an extensive network covering more than 35,000 domestic locations. They are considered as South
Asia's leading Logistic Companies with extensive presence in South Asia. They are the part of global logistic
group - DHL.
Blue Dart Express' main services are Domestic Priority (Guaranteed door-to-door time-definite delivery of
shipments by air in definite timings), Dart Apex (Guaranteed door-to-door delivery of Commercial Shipment),
Dart Surfaceline (Economical door-to-door ground distribution services), Airport-to-Airport ( Air Freight
Services between the airports of Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Ahmedabad, and Kolkata),
Charters (Separate Delivery of Sensitive Equipments and Large loads), Smart Box (Box based Air Express -
Smart Box), Express Pallet (Especially made for logistics of heavy weights logistics ranging between 50kg to
100kg), International Services (Worldwide Shipping and Courier of goods), and Temperature Control
Logistics (Temperature Controlled Logistics of Perishable items and Clinical Trial Services, and Medicines).
They have built world class warehouses in 69 locations in the country.
3. Third place is acquired by TNT Express. TNT India is a part of global logistics Company TNT Express. TNT
provides unmatched speed with urgent deliveries such as Medical Supplies, Machinery & its critical parts,

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Legal Documents etc. Similarly, their Bulk Shipment Solutions are also at par with the world's standards. Be it
Humatarian relief Cargo or Oil & Gas Shipment, they have the ability to handle all with perfect score.
4. Fourth in the list is DTDC. DTDC was founded in the year 1990 and since then, there is no looking back.
They are known as homegrown Courier brand and still trusted most for door-to-door deliveries in India.
Their main services are Domestic & International Courier Services, Premium Express Delivery Services,
Supply Chain Solutions, and e-Commerce Shipping Services. They have won many awards & accolades for
their services in Logistics Domain. Their recent award is 'National Award for Exemplary Position 2016' under
Express Courier category.
5. Fifth in the list is All cargo logistics ltd. Founded in the year 1983, All Cargo is India's largest integrated
logistic solution provider in private sector. Headquartered in Mumbai, they offer varied services such as
Coastal shipping, Contract Logistics, Supply Chain management, NVOCC, Container Freight Stations, Project
engineering Solutions, and Inland Container Depot facilities. All of their facilities have required certifications
in place such as OHSAS 18001:2007, ISO 9001:2008, and CT-PAT Compliant etc.
6. Agarwal Packers and movers is placed at the sixth position in the list of top 10 logistic companies in
India. Established in the year 1987, Agarwal Packers & Movers is considered as India's largest logistic
company handling movement of household goods. They hold record in Limca Book of Records, of moving
largest number of household goods in 2015-16. They have smoothened the whole shifting process of
household goods within different cities. They pack all household goods, from fragile LED TV to kitchen items
carefully and deliver them without any wear & tear to the desired address.
7. At seventh place, we have placed Gati, GATI is among India's most trusted Logistic Service Provider in
Express Distribution and Supply Chain Solution domain. With extensive network spread in all over the
country, they cover 672 districts in the country and deliver to 19000 pin codes. Their Express Distribution
Service is unmatched in India. With over 28 years of experience in Logistics in the country, they truly know
length and breadth of the country.
8. FedEx is an American Logistic Company which has presence in 220+ countries in the world. They have
huge network in all over the world and handles 3.6 millionshipments every day. In India, they offer both
Domestic & International Courier Services. They have different solutions for all kind of shipments light &
heavy weight, express & standard delivery, and time definite delivery of goods.
9. First Flight is a homegrown Courier & Logistics Company, which started with just 3 offices in the year
1986. Today, with extensive network in the country, they offer Domestic & International Courier Services,
Priority Courier, e-Commerce Logistics, Reverse Logistics, Train cargo, and Air Cargo. They are the courier
partners of leading e-commerce retailers such as Home Shop 18, Myntra, and Jabong etc.
10. Globe Express services is a renowned global Supply Chain Solution provider. In India, they are
headquartered in Mumbai and offer variety of Supply Chain Solutions such as Domestic & International
Transportation, Temperature Controlled Land Transport, and Air & Ocean Freight Services. They serve clients
in different verticals such as Automotive, Fashion and Apparel, and Chemical industries.

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Other Competitors
Container Corp – Established in the year 1988, Container Corporation of India Ltd. is a Govt. of India
undertaking logistic company. The company was established to provide high quality, seamless, efficient,
responsive and cost effective logistic solution to consumers. CONCOR is India’s largest logistic company with
62 ICDs and CFFs spread across the country. They have become backbone of domestic and international
trade in country, with millions of businesses relying on their cargo services. Their main carrier is Rail but also
provide last miletransportation by road. They have biggest network of rail-linked containers, connecting
almost all major destinations in country. Out of their 62 terminals, 18 are dedicated for import and export
and rest are for exclusive domestic trade.
VRL Logistics – VRL Logistics started a humble beginning in the year 1976 in small town in Karnataka.
Slowly and steadily, they expanded their network to 28 states & 4 UTs. Today, they are India’s largest road
transport logistic company with a fleet of 4107 vehicles. They hold a Limca Book of records as “Largest Fleet
owner of Commercial vehicles in India. Over the years, with changing demand of customers, they have also
started their operations in Courier Service, Priority Cargo and Air Chartering. They also provide customized
3PL and warehousing solutions to their clients. They have largest network of 1013 branches and numerous
franchises which covers all corners of India. Their huge success lies in their reliable, on time delivery of
goods.
Aegis Logistics – Established in the year 1956, Aegis is India’s most trusted and one of the largest oil, gas and
chemical logistics company. They are the leaders in Liquid and Gas Logistics. They have a network of
terminals for handling of bulk liquids. Their terminals are located at Mumbai, Kochi and Haldia and are ISO
9001:2008 and OHAS 1800:2007 certified. They handle 700,000+ MT of LPG per annum, making them largest
Gas logistic provider in India. They offer start to end logistic services for LPG, starting from complete supply
chain management from product planning, sourcing, shipping, storage, and delivery by network of pipelines
and tankers. Their customer base includes big names such as Tata Steel, FIAT, Eicher, Bharat Petroleum,
Laxmi Organics, and Reliance Industries etc.
Transport Corporation of India – TCIL is India’s leading logistic service provider company. They have 10.5
millionsq. ft. of exclusive warehousing space which are all equipped with modern machineries and facilities.
They operate via 1400 offices spread all over the country. They have all kind of latest IT systems and work on
latest technologies which makes them deliver error free and timely delivery of logistics. They have thousands
of commercial vehicles and 4 exclusive cargo ships, which gives them an edge over their competitors. They
have offices in 4 countries outside India, which makes it easy for import and export in these countries.
Snownman Logistics – Snowman is a leading cold supply chain company in India. They offer services like
warehousing, distribution and temperature controlled transportation. They have a total warehouse capacity
of around 90,000 pallets. Their warehousing solutions cover all kind of temperature such as ambient, chilled,
frozen, blast freezing etc. Similarly their transportation has also facility of controlling temperature of the
cargo. They are the first choice of intercity transport of perishable items and other food products such as
milk, raw materials for restaurant chains, cheese, Bread, fruits, vegetables etc. They also offer a range of value
added services such as kitting, labeling, stuffing, sorting, blast freezing and repacking services.
Navkar Corporation – Navkar Corporation Limited is a Mumbai based cargo and logistic company which is
considered leader in western India. They offer services such as container and cargo handling, rail terminal
cargo handling, project cargo, warehousing, import containers, export containers, buffer yard, EXIM cargos,

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Customs & Plant and Quarantine Facilities, Palletizing, shrink-wrapping, Packing and re-packing, Surveying,
Fumigation and Pest control, Bar-coding and Labeling etc. They have a network in PAN India and exclusive
network in western part of country.
Chartered Logistics – Chartered logistics was established in the year 1963 with a visionof providing cost
effective logistic solutions. Today, they have annual turnover of 136 crore and 650 owned and attached
vehicles. Their portfolio includes road transport services, cost & freight services and special warehousing
services. Their Road Transportation services include ODC Work, Project Work and customized work. They are
fast, secure, safe and reliable logistic company. Their clients are Aditya Birla Group, Bharat Petroleum, Dalmia
Cement, Finolex, Hindustan Unilever and many more leading companies in country.
Jagson Airlines - Based in Delhi, India, it is counted as one of the leading and prestigious air charter firms.
Founded in year 1991, it is known to operate and run charter services between India, Nepal and Bhutan.
Began its charter operations in November 1991 backed with two 18 seat Dornier 228-201 aircraft at that
time, JAL - Jagson Airlines Limited was established in January 1994 to handle and run air and taxi services
held under the open sky policy as per headed by the Government. Been promoted and marketed by J.P. Gupta,
associates and Pradeep Kumar Gupta, it has been known that soon it was going to acquire four aircraft but
started its operations with the one Do 228. Later in year 2006, the company announced and declared its plans
to expand its services to other 9 cities as well, utilizing leased Airbus A321-200 aircraft. In early 2009, the
company received and acknowledged its regional airline license from the DGCA, though the regional services
never took place within the defined and time frame of 18 months causing the regional airline license to lapse
and delay. At present, the company is known to provide only charter services in between Delhi and Mumbai.
Adding to this, the airlines has the license but does not operate in scheduled flights and all.
Balurghat Tech - Committed and is been a renowned logistic service provider since year 1952, it has been
serving from over sixdecades of loyalty, trust and passion and sheer commitment. Highly committed to
excellence and achievement, the company has simply unmatchable and quality connectivity over air, road and
sea involving travel and freight forwarding solutions. Spread in about 23 states, the company has more than
45 branches and offices and is reckoned as the country's premier and geographically sound logistics service
provider. Along with offering cost efficient and great logistics solutions, it proffers services including travel
solutions and freight forwarding services through pioneering Balurghat supply chain solutions. Adding to
this, the company offers logistics services to prime industry areas and sectors involving industrials,
automotive, FMCG, retail, pharma, property developers, healthcare, government agencies and more. Well
known as a popular supply chain and logistics service provider, it majorly deals through three segments
covering trading of petroleum products, transportation operations and travel division. Also, it provides
solutions to diverse industries and verticals from the FMCG sector, automotive industry and forest products,
and much more.
Satya miners & transporters- It is another renowned and one of the leading logistics service providers
having name and recognition all around the nation as well as overseas. Listed in BSE, its office is in Kolkata,
West Bengal, India. Being a non banking finance service provider, it is also engaged in financing and
investments. Established and started its operations in year 1975, it is known and popular to acquire, invest
and hold stocks, shares, debenture stocks, debentures, warrants, bonds, obligations and other securities
dealing primarily in bonds and shares. Adding to this, the company also provides advances and loans to firms,
companies, organizations, enterprises, corporations, businesses, associations, individuals, partnerships,
concerns, and others in setting up, working, running, managing, functioning, operating, conducting, operating
of industry, commerce, business, trade or profession and more.

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Inter State Oil - Being one of the reckoned and one of the famous logistics firms of the country, it is highly
engaged in the transport industry of India. Engaged extensively in operating fleets on rental basis, the
company is a renowned one that owns and operates construction equipment machines and tippers. Founded
and set up in year 1984, it is a leading Kolkata based company and proffer services in the financial,
transportation and investment solutions. Owing and operating 24 fleets along with about 50 fleets of rentals
serving all over the country, its carrier loading and unloading activities take place all around the country
including Cochin, Chennai, Namrup, Guwahati, Haldia and Bongaigaon. In fact, over the years since its
establishment, it has expanded its infrastructural development by buying premium quality and cost efficient
dumpers and earth moving equipments. As per the proven track record it has about 5300 authorized
ordinary shares. Known all over for offering amazing trucking services all around the country, it simply offers
great and affordable trucking services for the transportation of plastic products, chemicals and fuels.
Agarwal Industries - Famous and formerly been known all around as Bombay Baroda Roadways India
Limited, it is a reputed and esteemed logistics firm of the country. The widely reckoned Agarwal Industrial
Corporation Limited is been set up and founded in year 1995. The major motive of the company is to carry
the business of transportation and logistics of Bitumen and LPG all across the country. As per the information,
it came out with its first public issue in year 1996 and is known to expand and spread its business operations
all around by adding Bitumen and LPG fleet tankers and then after there was absolutely no looking back. As
per the company's records, since its establishment it has been consistently striving to work harder and
deliver the best and what they have acquired is actually the goodwill and recognition of its valuable
customers and users from all around through its strong business abilities, skills, expertise, technical know-
how's and adaptability to new industry scenarios. Adding to this, it assures to take uttermost care of its
customers by offering them products and services within stipulated time period and that too at competent
prices.

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Top Logistic Companies of India according to Market Capitalization
Company Name Market Cap(in Cr)
Container Corp 30,002.63
Allcargo 3,996.34
Jet Airways 3,703.27
VRL Logistics 3,418.44
Aegis Logistics 2,959.24
Transport Corp 2,254.82
Navkar Corp 2,238.95
SpiceJet 1,756.39
Snowman Logist 1,570.63
Arshiya 413.09
Chartered Logis 144.74
Patel Integrate 140.1
ABC India 54.15
Agarwal Ind 52.32
Satya Miners 13.25
Inter State Oil 4.98
Balurghat Tech 4.62
Jagson Airlines 1.89

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Latest market shares of various Indian logistics companies as on Nov 21, 2017, by Money Control
Company Name Last Price % Chg
52 wk
High
52 wk
Low
Market Cap
(Rs. cr)
Interglobe Avi 1,168.50 -0.32 1,346.35 816.00 44,878.60
Container Corp 1,350.00 -0.98 1,418.90 844.00 32,901.89
SpiceJet 142.30 -0.73 154.70 55.50 8,530.18
Aegis Logistics 232.75 -0.24 243.80 126.20 7,773.85
Jet Airways 663.20 -7.96 727.00 332.40 7,533.78
Allcargo 171.00 1.36 198.90 155.25 4,201.39
VRL Logistics 391.00 -0.39 409.55 256.05 3,567.62
Navkar Corp 190.05 0.13 246.55 159.00 2,860.62
TCIExpress 586.35 1.20 608.65 2.00 2,245.06
TransportCorp 287.50 -1.47 349.65 144.00 2,201.60
Arshiya 94.60 2.38 94.60 26.10 1,501.11
Sical Logistics 218.75 -1.22 285.00 162.15 1,216.29
Snowman Logist 57.70 -1.95 67.65 46.00 964.10
Agarwal Ind 528.00 0.38 792.00 265.15 536.38
Global Vectra 181.70 -1.60 194.20 73.00 254.38
Tiger Logistics 188.00 0.97 304.00 151.70 198.76
Chartered Logis 19.35 0.00 28.00 18.00 192.22
North Eastern 31.75 -2.46 111.30 30.50 159.38
Patel Integrate 87.75 -2.61 98.00 69.50 145.10
Starlog Enter 65.45 -6.10 122.00 48.25 78.32
Shreeji Translo 155.00 3.30 155.00 131.60 54.16
TAAL Enterprise 168.50 0.66 249.95 131.10 52.51
ABC India 96.00 4.29 116.00 77.80 52.01
Inter State Oil 22.05 5.00 22.05 7.02 11.01
Balurghat Tech 4.00 0.00 5.19 2.10 7.28
ASIS Logistics 4.76 0.00 8.97 4.13 3.58
Source: http://www.moneycontrol.com/stocks/marketinfo/marketcap/bse/transport-logistics.html

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Current Issues and challenges
India, despite being a low-cost country, has higher logistics cost due to various issues and challenges faced by
the industry. Apart from being entangled in complex tax structure the industry is also affected by poor rate of
customs efficiency of clearance processes and procedures thus affecting the international export logistics
stratum. Furthermore, sub-optimal comfort provided by the existing Indian infrastructure combined with
lack of implementation of efficient IT-enabled tracking and tracing mechanisms has affected the performance
of logistics. A country’s competitiveness is measured by the ease of doing business. India stands at 35th
position in the logistics performance index (LPI) amongst 160 countries around the world, with Germany on
top, Singapore, China and United States of America in 5th, 9th, and 10th positions, respectively, as per the
World Bank report 2016.
India’s logistics performance has seen a rise in all the sixkey performance indicators used to compute
international LPI. The factors which led to growth in improvement of LPI includes increase in infrastructure
(especially Road, Railways and Ports) spending along with their successful commissioning, growth in
investments and participation of international logistics players in Indian firms which attracted better
technology along with rise in international shipments coupled with leveraging the established network of the
investor and implementation of effective IT systems used for tracking and tracing the goods.
Congestioninconnectivityhasbeenleadingto highturn-aroundtimeinsupplychain:
The logistic competence although has improved by 19 notches as per World Bank Report 2016 on LPI, the
delays due to roadblock, tolls, inter-state checkpoints and other stoppages are leading to increase in the
logistic costs in India to 2 to 3 times global benchmarks. Transit times are higher owing to lower average
speeds this is due to waiting times at toll stations, snail pace movement of the trucks during the day especially
in prime cities and towns, port turnaround times, low priority accorded to freight trains and poor track
infrastructure. For example, almost five to seven hours of transit time of trucks are wasted at the interstate
check points. National Highways constitute just 2% of the Indian road network but carry 40% of the total
traffic, resulting in severe congestion. Different aspects of the logistics industry falling under different
ministries also create inefficiencies in the system.
Higherlogisticcost:
India’s outgo on logistic cost/GDP is about 13-14% of value of goods, whereas for other
developed/developing economies the average cost stands at 10-11% value of goods as shown in the figure.
The key reasons for this is higher transit time due to infrastructural bottlenecks across different modes
(Road, Rail, and Water), administrative delays, extra indirect taxes levied for inter-state transport and
inefficiencies in the system.
Unfavorablemodal mix:
There is an unfavorable modal mix that is skewed toward roads as a major mode of transportation, along with
underutilization of other modes — rail, air, shipping and coastal shipping. Despite being inefficient mode,
road transportation has the highest goods traffic share in India, whereas railways being economic mode of
goods transport has lostmarket share in India due to under investments leading to capacity constraints. Air is
the quickest possible way but shares just about 1% of the means of logistics. Even though India lags behind its
global peers it is increasing its spending in airport infrastructure through various air projects across the

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country. The freight travel although is more suitable through rail and waterways but due to high tariffs, less
flexibility in wagons, uncertain transit times and poor terminal quality in railways and inadequate
infrastructure for coastal shipping and inadequate depths at ports in India has led to high reliance on road
transport.
The following table illustrates the logistics flow through various mans
31 23
48
10
60
30
37
46
8
46
14
43
1 1 1 1
0%
20%
40%
60%
80%
100%
India China US Europe
Air
Water
Road
Rail

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Recent Development in Transportation and Logistics
High-tech Tracking Device
Cities are grappling with decaying transportation infrastructure and booming populations driven by global
urbanization. Meanwhile, new, digitally-enabled transportation services like ride-hailing are increasing total
miles driven in urban centers, exacerbating traffic congestion, according to a new study from the University of
California Davis. Managing these growing challenges will require cities to adopt software platforms to track
and manage traffic across all modes of transportation, according to a new Deloitte report.
SELF-DRIVING CARS
In a significant step forward for its self-driving car development, Google spinoff Waymo has begun testing its
autonomous cars on public roads in Chandler, Arizona without a driver behind the wheel, CEO John Krafcik
announced at a conference in Lisbon, TechCrunch reports .
BI Intelligence

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Government Initiatives
During last five years, the Government of India has been taking various initiatives in order to develop road
infrastructure. The net road projects awarded by NHAI during FY16 have increased to 4368 km in
comparison with 3250 km level of FY12.
NHAI plans to increase both awards and execution of road projects in FY17 by four times over FY16 levels, ie,
with target execution of 8000 km (@21.92 km/day) and target awards at 15,000 km. Furthermore, on
account of various government initiatives, focus on hybrid annuity as well as EPC contracts and structural
changes in the concession agreement, CARE expects substantial increase in pace of award and execution of
road projects during FY17 over FY16.
Means India’sInfrastructureSnapshot
Road
 2nd Largest in world with a total of more
 than 3.34 mn Km road length National Highways/Expressway of 0.10 mn
 Km 0.15 mn Km of state highways and 4.98 mn
 Km of major & other district roads
Rail
 Covers almost all parts of the country with
 routes covering a total length of 67,312 km
Air
 18 international airports 7 custom airports, 78 domestic airports and
 26 civil enclaves at Military fields
Sea
 6000 km of natural peninsular coastline
 12 major ports and 187 minor ports
As per the railway budget for the year 2016-17, the capital plan has been pegged at Rs.1.21 lakh crore. The
railway ministry has given emphasis on rapid expansion of freight business to take up freight corridors:
North-South connecting Delhi to Chennai, East-West connecting Kharagpur to Mumbai & East Coast
connecting Kharagpur to Vijayawada. Apart from above, various initiatives such as setting up the broad gauge
lines, capacity building plans and to improve the customer interface through IT systems to provide better
quality of services have been taken up. As a part of reviving the existing ports of the country, the Indian
government has developed 10 coastal economic regions which led to improvement in the capacity of all the
major ports to 892.92 MMT as on January 31, 2016 (871.52 MMT as on March 31, 2015). Furthermore, the
government is taking up various initiatives such as investing Rs.70,000 crore under ‘Sagarmala project’ in 12
major ports in the next five years, allowing upto 100% FDI under automatic route for port development
projects and providing income tax incentives. India, although gearing towards logistic friendly on its
performance index, has been facing inhibitions that primarily include higher logistic costs and complex tax
structure. The implementation of Goods and Service Tax (GST) bill is expected to trim the logistic costs upto
20% from the current levels, however, the persisting high logistic costs could only be resolved by
development of logistics infrastructure. Transportation alone holds 60% share of the logistic industry and
rest 40% is contributed by warehousing, freight forwarding, value-added logistics, etc. Thus, the growth in

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logistic sector to a large extent depends upon successful implementation of the aforesaid initiatives taken by
the government. India as Investment destination for PEs and global logistic players: Significant investment
opportunities exist across every segment in Indian logistic industry and several leading international logistic
companies such as Fedex, UPS supply chain, DHL, Kintetsu World express etc have already entered the Indian
market, through green field projects, JVs and acquisitions. Over the last few years, India’s logistics sector has
received unprecedented interest among the global and domestic investor community. Specific segments like
agriculture logistics, cold chain logistics and warehousing have received special attention from a wide range
of global investors. For India to compete with other developing countries and attract Foreign Direct
Investment, it certainly has to invest in logistics. With 100% FDI in warehouses and food storage facilities
under the automatic route (where manufacturers can sell their products online directly), coupled with some
zones to be tax-free (ie, free trade warehousing zones), has brought the sector under the foreign PE
investment radar. In 2015, the government has allotted an $11 billion from the public budget to boost overall
infrastructure.