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Road logistics india

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Road logistics india

  1. 1. AGENDA• Indian Logistics sector – Introduction – Comparison to the other countries• Road Logistics in India Agenda• Key players in Indian Road Logistics – Ashok Layland – BLR Logistics India• Key Issues faced by the road logistics in India – Network Connectivity – Travel time – Maintainance – Reliability• Final word...
  2. 2. Introduction – Indian Road Logistics Quick Facts India is having second largest road network in the world.(3.83 million km) Road network carry nearly 65% of freight and 85% of passenger traffic Average speed on Indian highways is 30 km per hour, which is three times lower than the average speed on highways in developed countries. Roads in India are divided into the following five categories:  National Highways (NH)  State Highways (SH)  Major District Roads (MDR)  Other District Roads (ODR)  Village Roads (VR) National highways form only 2% of the total roads by length and carry about 40% of the traffic Out of total length of national highways:  27 % - single lane/intermediate lane  59 % - double-lane standard  14 % - four-lane/ six-lane/ eight lane standard
  3. 3. Introduction – Indian Road Logistics  Quick Factsndian Road Network Share of Transport in India’s GDP
  4. 4. Introduction – Indian Road Logistics Key players in Indian Road Logistics  Quick Factsndian Road Network –Annual Growth Rate
  5. 5. Indian Road Logistics- Comparison
  6. 6. Road Logistics in IndiaMajor National Highways Major State Highways
  7. 7. Road Logistics in India Golden Quadrilateral The Golden Quadrilateral is a highway network connecting Indias four largest metros : Delhi, Mumbai, Chennai, Kolkata First phase of the National Highways Development Project . The project aims of building 5,846 km (3,633 mi) of four/six lane express highways at a cost US$12.2 billionAdvantages: Better and faster transport networks between many major cities and ports Industrial and job development in smaller towns & villages
  8. 8. Key players in Indian Road Logistics One of the largest commercial vehicle manufacturers in India with a turnover of US $ 2.5 billion Flagship of Hinduja Group, founded in 1948 ,headquarters – Chennai, India Annual sales of about 60,000 vehicles and about 7,000 engines Manufacturing Facilities:  India ― Pantnagar- commercial vehicles ― Alwar - assembly part with focus on passenger chasis ― Bhandara - gearbox assembly ― Hosur— diesel and CNG engines, axles, gearboxes ― Ennore- axles, gearboxes  Czech Republic — Letnany - D-Line series of AVIA trucks  UAE — Ras Al Khaimah – Bus production line
  9. 9. Key players in Indian Road Logistics Joint Ventures Nissan Motor Company (Japan)-Light Commercial Vehicles John Deere (USA) - Construction Equipment. Continental AG (Germany) – Design and development of automotive Infotronics Alteams Group (Finnland) - Producing High Pressure Die Casting (HPDC) aluminum components Suppy Chain ManagementTo maintain a highly capable and competitive supply base, focus is on:  Partnering best-in-class suppliers  Conducting rigorous evaluation and improving supplier performance - measured on Quality, Cost, Logistics, Development and Management (QCLDM)  Optimizing supplies in coordination with third party logistics (3PL) providers  Vendor Development and Strategic Sourcing
  10. 10. Key players in Indian Road LogisticsTrucks Defence VehiclesLight Vehicles
  11. 11. Key players in Indian Road Logistics • A Logistic company specializing in road transport has experience of more than 40 years on Indian roads. • Has fleet of more than 500 different vehicles • Has annual turnover of 250 crore rupees (equal to 50 million US Dollars) • BLR provides services like – Container Movement – Full Truck Load (FTL) Transportation – Less than Truck Load (LTL) Transportation – 32 feet Containerized Vehicles – Premium Car Transportation – Hazardous Cargo Transportation – 24hrs Surface ExpressReference http://www.blrlogistiks.com/services/transportation.html
  12. 12. Key players in Indian Road Logistics • BLR has Fleet of different transport vehicles some of the variations are as below – Hydraulic axels – Semi - Low Bed trailers – LCV’s – MCV’s – 32ft containerized vehicles (6 and ten wheels) – 28ft containerized vehicles – 12 wheel trucks, open and full body – Full Body Truck (18-20-22-24 ft) – Open Body / 24ft Container – Half Body, Open, 20ft Container Carrier – 20ft Container Carrier (only frame) – High Bed Trailer with frame (20 and 40 ft) – High Bed Trailer with platform (20 and 40 ft) – 44ft Low Bed Trailer – 20ft HQ ContainerReference http://www.blrlogistiks.com/services/transportation.html
  13. 13. Key Issues – Indian Road Logistics • Lack participation of private sector • Network Connectivity • Travel time • Maintainance • ReliabilityReference KPMG analysis
  14. 14. Key Issues – Indian Road Logistics • High Co2 EmissionReference KPMG analysis
  15. 15. Key Issues – Indian Road LogisticsReference KPMG analysis
  16. 16. Final word… • Robust growth in road transport in recent years has been attained, But…. – India’s logistical cost as a percentage of total production cost is about twice the world average of 7%. – Estimated the economic losses from bad roads at anywhere up to Rs. 30,000 crore (4.2 billion EUR) a year, or around 1 to 2 percent of GDP each year – Out of total national highway length of 70,934 Km, it is estimated that only 14% is four lane • Golden Quadrilateral project showing ray of hope • About 50% FDI granted in Retail sector with mandatory investment in local infrastructure for the foreign investors.Reference KPMG analysis

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