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DEDICATED
FREIGHT CORRIDOR
VJTI-
MTech(Proj.Mgmt) /
Fall 2014
1
PROJECT MEMBERS
UNDER THE GUIDANCE:
Veermata Jijabai Technological Institute (VJTI)
Mumbai, India
UNDER THE GUIDANCE:
Prof. BALAJI RAMADURAI,PMP (balajir16@gmail.com)
SRUTHI
NAIR
sruthinair160@gmail.com
SWAPNIL
SACHDEV
swapnilsachdev911@gmail.com
HARSHAD
JOSHI
jharshad.1356@gmail.com
MASOOM
DESHMUKH
masoomkhan.deshmukh@gmail.com
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
2
Dedicated Freight Corridor
The transportation of freight or goods through high speed railway lines
dedicated for quick supply of goods across country and ports for export
Illustration
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
3
Freight Transportation ModeFreight Transportation Mode
AIRWAYS WATERWAYS
ROAD PIPIELINE
RAILWAYS
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
4
Contd…
Sources:RITES(2009)
Freight Traffic in Billion (2007-08)
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
5
INDIAN RAILWAYS
• Indian railways benefit from freight transportation
• In 1970’s, 70% freight transport on railways
30% on roadways
• Current scenario, 30%- railways
70%- roadways
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
6
RAILWAYS v/s ROADS
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2007-08
Road
Rail
Source: RITES (2009)
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
7
CONTD..
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
8
WHY DFC IS REQUIRED
To cope with increased freight traffic:
• To carry the same on existing network OR
• Creation of a new passenger corridor OR
• To go for separate freight corridor.
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
9
CONTD…
• First option of upgrading not convincing due to
-average freight speed is very low
-Heavy traffic density routes
-Technical constraints
-to overcome these constraints the cost incurred is very high
• Second option not feasible.
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
10
SALIENT FEATURES & DESIGN CONSIDERATIONS
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
11
CONTD..
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
12
BENEFITS OF DEDICATED FREIGHT
CORRIDOR
• Contribution to economic development by freight
transportation
• Segregated electrified line for freight, parallel to the
existing railway line, allows the passenger trains to move
faster in the existing lines
• For industry, reduced unit cost of transportation as DFC
provides rail infrastructure to carry higher throughput per
train
• Guaranteed, faster transit at an economic tariff
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
13
CONTD..
• Accelerate nation-wide economic development as
well as improve the environment
• Less energy consumed as compared to truck mode
and avoided gas emissions
• Increase in employment opportunities of the region
• Improve and expand the market for agricultural
produce, forestry and fisheries of the regions
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
14
WHAT IS INDUSTRIAL CORRIDOR?
• Development of the Industries along the transport
Corridor to facilitate the movement of Goods from
these industries.
• It is the iintegration between the industries and the
infrastructure
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
15
Selection Criteria for Investment Region:
To ensure at least one such node in each of the DMIC
State to spread the economic benefits;
• Benefit from the proximity to Metropolitan Areas as
Delhi, Mumbai;
• Potential for Developing Greenfield Ports (or)
Augmentation Possibilities;
• Easy Availability of such huge land parcels and
established industrial base.
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
16
Selection Criteria for Industrial Area:
• To take advantage of inherent strengths of specific
locations (mineral resources, rich agriculture base,
availability of skilled human resource base, potential
for setting up specific group of industries, IT/ITES
etc);
• Selection of suitable locations to ensure an
opportunity to transform under-developed regions
along the Corridor to Developing/ Well Developed
regions.
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
17
INDUSTRIAL CORRIDORS IN INDIA
• Delhi - Mumbai
• Amritsar - Kolkata
• Mumbai - Bengaluru
• Chennai - Bengaluru
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
18
ESTIMATED TOTAL COST OF PROJECT
Source: JICA report
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
19
DELHI MUMBAI INDUSTRIAL CORRIDOR
States covered
1. Uttar Pradesh
2. Haryana
3. Rajasthan
4. Gujarat
5. Maharashtra
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
20
SHORTLISTED INVESTMENT REGION IN PHASE1
SHORTLISTED IR
Dadri-Noida-Ghaziabad (U.P. ) General Manufacturing ;
Manesar-Bawal in Haryana Auto Component/ Automobile
Khushkhera-Bhiwadi-Neemrana in
Rajasthan
General Manufacturing/ Automobile/ Auto
Component
Pitampura-Dhar-Mhow in Madhya
Pradesh
General Manufacturing
Bharuch-Dahej in Gujarat Petroleum, Chemical and Petro-Chemical
Igatpuri-Nashik-Sinnar in Maharashtra General Manufacturing
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
21
SHORTLISTED INVESTMENT AREA IN PHASE 1
Meerut-Muzaffarnagar in Uttar Pradesh Engineering/ Manufacturing
Faridabad-Palwal in Haryana Engineering & Manufacturing
Jaipur-Dausa in Rajasthan Marble/Leather/Textile
Nimach-Nayagaon in Madhya Pradesh Engineering/ Agro-Processing
Vadodara-Ankleshwar in Gujarat General Manufacturing
Dighi/Alewadi in Maharashtra. Greenfield Port
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
22
PROJECT COST AND FINANCING OF THE
WESTERN CORRIDOR
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
23
DMIC in Maharashtra
• Node No.17:
Dhule-Nardhana Investment
Region
• Node No.18:
Igatpuri-Nashik-Sinnar
Investment Region
• Node No.19:
Pune-Khed Industrial Area
• Node No.20:
Industrial Area with Greenfield
Port at Dighi
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
24
Length of corridor: 930 km approx.
GENERAL
FEATURES
of
DMIC (in
Vadodara-
Rewari)
Junction stations:10, crossing station:10
Major & Important bridges:207
Road over bridges:8
Alignment passed through: Gujarat,
Haryana, Rajasthan
District involved:17, Villages covered: 451
Maximum Speed: 100 km/hr
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
25
Status of the Project: Land Acquisition - Being acquired
under Railway Amendment Act (RAA) 2008 - (units in
hectares)
Land to be
acquired
Land Acquired
Eastern DFC 4807 3635 (75%)
Western DFC 5860 5039 (85%)
Total 10667 8673 (81%)
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
26
REHABILITATION AND
RESETTLEMENT POLICY (RRP)
Objective of RRP :
Avoid or minimize land acquisition; where
displacement is unavoidable, prepare time bound
RRP for PAPs.
Special care for weaker sections/vulnerable groups
 To provide better standard of living
 Facilitate harmonious relationship between the
requiring body and affected families through mutual
cooperation.
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
27
COMPENSATION POLICY
Application
Definition of Affected
Persons Entitlement
Land on the Project
Right of Way
Loss Of Private
Agricultural,
Homestead &
Commercial Land
Legal Title holders and
Affected Parties with
traditional land rights
1.Compensation at
replacement cost
2.Resettlement and
Rehabilitation
Registered tenants,
contract cultivators &
leaseholders
Compensation for standing
crops at market rate
Un-registered tenants,
contract cultivators,
leaseholders,
sharecroppers
Compensation for standing
crops at market rate
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
28
CONTD..
Structure on the Project
Right of Way
Loss of Private
Structures
(Residential/Commerci
al)
Title Holder/Owner Compensation At
replacement rate
Resettlement &
Rehabilitation Assistance
Tenants/Lease Holders
Resettlement &
Rehabilitation Assistance
Standing Trees, Crops on
Project Right of Way
Loss of Trees & Crops
Owners & beneficiaries of
land
Compensation at market
value
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
29
Structures on the Project
ROW
Loss of
Residential/Commer
cial Structures by
Non Title Holders
Owners of structures
identified as on date of
notification
Compensation at replacement
cost
Resettlement & Rehabilitation
Assistance
Households living on
Right of way
Loss of Livelihood
Title Holders/ Non-Title
holders/share-croppers,
agricultural labourers
and employees
Rehabilitation Assistance
Households affected by
ROW
Additional support to
vulnerable group
Households affected
Rehabilitation Assistance
CONTD..…
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
30
Affected Scheduled
Tribes
Households affected by
ROW
Rehabilitation Assistance
Structures & other
resources (eg land,
water, access to social
services etc) on ROW
Loss of Community
Infrastructure/Com
mon Property
Resources
Affected communities
and groups
Reconstruction of
community structure and
common property resources
Land & assets
temporarily impacted
during construction
Owners of land & assets Compensation for temporary
impact during construction
like disruption of normal
traffic, damage to adjacent
parcel of land/ assets due to
movement of heavy
machinery and plant site.
CONTD.. VJTI-MTech(Proj.Mgmt)
/ Fall 2014
31
HINTERLAND DEVELOPMENT
• NODE-18: IGATPURI-NASHIK-SINNAR INVESTMENT REGION
• Close by the Mumbai-Kalyan-Igatpuri-Manmad-Jalgaon trunk road.
• Industrial sectors in Nashik - Engineering, Automobile, Aluminium, Raisins,
and Steel Furniture.
•
ADVANTAGES:
Proximity to urban center of Nashik.
Served by NH-3 and NH-50.
• Widening and Strengthening of NH-3 to four lane dual carriageway being
implemented whereas NH-50 has two-lane carriageway configuration.
• Construction of Nashik-Mumbai Expressway is under implementation.
• Wine Park in Nashik district at Vinchur
• Urban Infrastructure improvement under JNNURM Scheme
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
32
• Export-oriented Industrial Units/ SEZ: has the potential for
Engineering, Automobile, Aluminium, Raisins, and Steel Furniture
Sectors.
• Augmentation of Existing Industrial Estates: augmentation of two
industrial areas in Nashik district (Nashik and Sinnar) are considered for
implementation under DMIC.
• Integrated Agro/Food Processing Zone: an Integrated Agro/Food
Processing Zone with horticulture market will be developed as part of the
Nashik-Sinnar Investment Region.
• Knowledge Hub/Skill Development Centre: To support the
engineering, automobile, wine production/ agro-processing sectors, a
Knowledge Hub/skill up gradation centre is proposed to be developed with
integrated infrastructure facilities.
BUSINESS CASE
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
33
Contd..
• Integrated Logistics Hub
• Integrated Township
• Development of Nashik Airport
• Feeder Road Links
• Feeder Rail Links
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
34
Logistics
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
35
NEED FOR LOGISTICS IN INDIA
•Highly Competitive and Low Cost
•Low Utilization and High Transit Times
•Overloading of Vehicles
•Poor Infrastructure
•Barriers to Free Movement
•Very Unsafe
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
36
Freight Cost
• Canada - US$ 0.02
• Japan – US$ 0.037
• France - US$ 0.055
• India – US$ 0.07
high rates of economic
growth and trade growth
weaknesses in quality
and geographical
coverage of the logistics
services and facilities
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
37
BENEFITS
• Reduced transit time and processing time
• Optimal use of all modes of transport thus
reducing overall cost
• Easy access to value added logistics services
• Improved service levels, professionalism
• Reduction in inventory and damages.
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
38
VJTI-MTech(Proj.Mgmt)
/ Fall 2014
39

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Dedicated freight corridor

  • 2. PROJECT MEMBERS UNDER THE GUIDANCE: Veermata Jijabai Technological Institute (VJTI) Mumbai, India UNDER THE GUIDANCE: Prof. BALAJI RAMADURAI,PMP (balajir16@gmail.com) SRUTHI NAIR sruthinair160@gmail.com SWAPNIL SACHDEV swapnilsachdev911@gmail.com HARSHAD JOSHI jharshad.1356@gmail.com MASOOM DESHMUKH masoomkhan.deshmukh@gmail.com VJTI-MTech(Proj.Mgmt) / Fall 2014 2
  • 3. Dedicated Freight Corridor The transportation of freight or goods through high speed railway lines dedicated for quick supply of goods across country and ports for export Illustration VJTI-MTech(Proj.Mgmt) / Fall 2014 3
  • 4. Freight Transportation ModeFreight Transportation Mode AIRWAYS WATERWAYS ROAD PIPIELINE RAILWAYS VJTI-MTech(Proj.Mgmt) / Fall 2014 4
  • 5. Contd… Sources:RITES(2009) Freight Traffic in Billion (2007-08) VJTI-MTech(Proj.Mgmt) / Fall 2014 5
  • 6. INDIAN RAILWAYS • Indian railways benefit from freight transportation • In 1970’s, 70% freight transport on railways 30% on roadways • Current scenario, 30%- railways 70%- roadways VJTI-MTech(Proj.Mgmt) / Fall 2014 6
  • 7. RAILWAYS v/s ROADS 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1950-51 1960-61 1970-71 1980-81 1990-91 2000-01 2007-08 Road Rail Source: RITES (2009) VJTI-MTech(Proj.Mgmt) / Fall 2014 7
  • 9. WHY DFC IS REQUIRED To cope with increased freight traffic: • To carry the same on existing network OR • Creation of a new passenger corridor OR • To go for separate freight corridor. VJTI-MTech(Proj.Mgmt) / Fall 2014 9
  • 10. CONTD… • First option of upgrading not convincing due to -average freight speed is very low -Heavy traffic density routes -Technical constraints -to overcome these constraints the cost incurred is very high • Second option not feasible. VJTI-MTech(Proj.Mgmt) / Fall 2014 10
  • 11. SALIENT FEATURES & DESIGN CONSIDERATIONS VJTI-MTech(Proj.Mgmt) / Fall 2014 11
  • 13. BENEFITS OF DEDICATED FREIGHT CORRIDOR • Contribution to economic development by freight transportation • Segregated electrified line for freight, parallel to the existing railway line, allows the passenger trains to move faster in the existing lines • For industry, reduced unit cost of transportation as DFC provides rail infrastructure to carry higher throughput per train • Guaranteed, faster transit at an economic tariff VJTI-MTech(Proj.Mgmt) / Fall 2014 13
  • 14. CONTD.. • Accelerate nation-wide economic development as well as improve the environment • Less energy consumed as compared to truck mode and avoided gas emissions • Increase in employment opportunities of the region • Improve and expand the market for agricultural produce, forestry and fisheries of the regions VJTI-MTech(Proj.Mgmt) / Fall 2014 14
  • 15. WHAT IS INDUSTRIAL CORRIDOR? • Development of the Industries along the transport Corridor to facilitate the movement of Goods from these industries. • It is the iintegration between the industries and the infrastructure VJTI-MTech(Proj.Mgmt) / Fall 2014 15
  • 16. Selection Criteria for Investment Region: To ensure at least one such node in each of the DMIC State to spread the economic benefits; • Benefit from the proximity to Metropolitan Areas as Delhi, Mumbai; • Potential for Developing Greenfield Ports (or) Augmentation Possibilities; • Easy Availability of such huge land parcels and established industrial base. VJTI-MTech(Proj.Mgmt) / Fall 2014 16
  • 17. Selection Criteria for Industrial Area: • To take advantage of inherent strengths of specific locations (mineral resources, rich agriculture base, availability of skilled human resource base, potential for setting up specific group of industries, IT/ITES etc); • Selection of suitable locations to ensure an opportunity to transform under-developed regions along the Corridor to Developing/ Well Developed regions. VJTI-MTech(Proj.Mgmt) / Fall 2014 17
  • 18. INDUSTRIAL CORRIDORS IN INDIA • Delhi - Mumbai • Amritsar - Kolkata • Mumbai - Bengaluru • Chennai - Bengaluru VJTI-MTech(Proj.Mgmt) / Fall 2014 18
  • 19. ESTIMATED TOTAL COST OF PROJECT Source: JICA report VJTI-MTech(Proj.Mgmt) / Fall 2014 19
  • 20. DELHI MUMBAI INDUSTRIAL CORRIDOR States covered 1. Uttar Pradesh 2. Haryana 3. Rajasthan 4. Gujarat 5. Maharashtra VJTI-MTech(Proj.Mgmt) / Fall 2014 20
  • 21. SHORTLISTED INVESTMENT REGION IN PHASE1 SHORTLISTED IR Dadri-Noida-Ghaziabad (U.P. ) General Manufacturing ; Manesar-Bawal in Haryana Auto Component/ Automobile Khushkhera-Bhiwadi-Neemrana in Rajasthan General Manufacturing/ Automobile/ Auto Component Pitampura-Dhar-Mhow in Madhya Pradesh General Manufacturing Bharuch-Dahej in Gujarat Petroleum, Chemical and Petro-Chemical Igatpuri-Nashik-Sinnar in Maharashtra General Manufacturing VJTI-MTech(Proj.Mgmt) / Fall 2014 21
  • 22. SHORTLISTED INVESTMENT AREA IN PHASE 1 Meerut-Muzaffarnagar in Uttar Pradesh Engineering/ Manufacturing Faridabad-Palwal in Haryana Engineering & Manufacturing Jaipur-Dausa in Rajasthan Marble/Leather/Textile Nimach-Nayagaon in Madhya Pradesh Engineering/ Agro-Processing Vadodara-Ankleshwar in Gujarat General Manufacturing Dighi/Alewadi in Maharashtra. Greenfield Port VJTI-MTech(Proj.Mgmt) / Fall 2014 22
  • 23. PROJECT COST AND FINANCING OF THE WESTERN CORRIDOR VJTI-MTech(Proj.Mgmt) / Fall 2014 23
  • 24. DMIC in Maharashtra • Node No.17: Dhule-Nardhana Investment Region • Node No.18: Igatpuri-Nashik-Sinnar Investment Region • Node No.19: Pune-Khed Industrial Area • Node No.20: Industrial Area with Greenfield Port at Dighi VJTI-MTech(Proj.Mgmt) / Fall 2014 24
  • 25. Length of corridor: 930 km approx. GENERAL FEATURES of DMIC (in Vadodara- Rewari) Junction stations:10, crossing station:10 Major & Important bridges:207 Road over bridges:8 Alignment passed through: Gujarat, Haryana, Rajasthan District involved:17, Villages covered: 451 Maximum Speed: 100 km/hr VJTI-MTech(Proj.Mgmt) / Fall 2014 25
  • 26. Status of the Project: Land Acquisition - Being acquired under Railway Amendment Act (RAA) 2008 - (units in hectares) Land to be acquired Land Acquired Eastern DFC 4807 3635 (75%) Western DFC 5860 5039 (85%) Total 10667 8673 (81%) VJTI-MTech(Proj.Mgmt) / Fall 2014 26
  • 27. REHABILITATION AND RESETTLEMENT POLICY (RRP) Objective of RRP : Avoid or minimize land acquisition; where displacement is unavoidable, prepare time bound RRP for PAPs. Special care for weaker sections/vulnerable groups  To provide better standard of living  Facilitate harmonious relationship between the requiring body and affected families through mutual cooperation. VJTI-MTech(Proj.Mgmt) / Fall 2014 27
  • 28. COMPENSATION POLICY Application Definition of Affected Persons Entitlement Land on the Project Right of Way Loss Of Private Agricultural, Homestead & Commercial Land Legal Title holders and Affected Parties with traditional land rights 1.Compensation at replacement cost 2.Resettlement and Rehabilitation Registered tenants, contract cultivators & leaseholders Compensation for standing crops at market rate Un-registered tenants, contract cultivators, leaseholders, sharecroppers Compensation for standing crops at market rate VJTI-MTech(Proj.Mgmt) / Fall 2014 28
  • 29. CONTD.. Structure on the Project Right of Way Loss of Private Structures (Residential/Commerci al) Title Holder/Owner Compensation At replacement rate Resettlement & Rehabilitation Assistance Tenants/Lease Holders Resettlement & Rehabilitation Assistance Standing Trees, Crops on Project Right of Way Loss of Trees & Crops Owners & beneficiaries of land Compensation at market value VJTI-MTech(Proj.Mgmt) / Fall 2014 29
  • 30. Structures on the Project ROW Loss of Residential/Commer cial Structures by Non Title Holders Owners of structures identified as on date of notification Compensation at replacement cost Resettlement & Rehabilitation Assistance Households living on Right of way Loss of Livelihood Title Holders/ Non-Title holders/share-croppers, agricultural labourers and employees Rehabilitation Assistance Households affected by ROW Additional support to vulnerable group Households affected Rehabilitation Assistance CONTD..… VJTI-MTech(Proj.Mgmt) / Fall 2014 30
  • 31. Affected Scheduled Tribes Households affected by ROW Rehabilitation Assistance Structures & other resources (eg land, water, access to social services etc) on ROW Loss of Community Infrastructure/Com mon Property Resources Affected communities and groups Reconstruction of community structure and common property resources Land & assets temporarily impacted during construction Owners of land & assets Compensation for temporary impact during construction like disruption of normal traffic, damage to adjacent parcel of land/ assets due to movement of heavy machinery and plant site. CONTD.. VJTI-MTech(Proj.Mgmt) / Fall 2014 31
  • 32. HINTERLAND DEVELOPMENT • NODE-18: IGATPURI-NASHIK-SINNAR INVESTMENT REGION • Close by the Mumbai-Kalyan-Igatpuri-Manmad-Jalgaon trunk road. • Industrial sectors in Nashik - Engineering, Automobile, Aluminium, Raisins, and Steel Furniture. • ADVANTAGES: Proximity to urban center of Nashik. Served by NH-3 and NH-50. • Widening and Strengthening of NH-3 to four lane dual carriageway being implemented whereas NH-50 has two-lane carriageway configuration. • Construction of Nashik-Mumbai Expressway is under implementation. • Wine Park in Nashik district at Vinchur • Urban Infrastructure improvement under JNNURM Scheme VJTI-MTech(Proj.Mgmt) / Fall 2014 32
  • 33. • Export-oriented Industrial Units/ SEZ: has the potential for Engineering, Automobile, Aluminium, Raisins, and Steel Furniture Sectors. • Augmentation of Existing Industrial Estates: augmentation of two industrial areas in Nashik district (Nashik and Sinnar) are considered for implementation under DMIC. • Integrated Agro/Food Processing Zone: an Integrated Agro/Food Processing Zone with horticulture market will be developed as part of the Nashik-Sinnar Investment Region. • Knowledge Hub/Skill Development Centre: To support the engineering, automobile, wine production/ agro-processing sectors, a Knowledge Hub/skill up gradation centre is proposed to be developed with integrated infrastructure facilities. BUSINESS CASE VJTI-MTech(Proj.Mgmt) / Fall 2014 33
  • 34. Contd.. • Integrated Logistics Hub • Integrated Township • Development of Nashik Airport • Feeder Road Links • Feeder Rail Links VJTI-MTech(Proj.Mgmt) / Fall 2014 34
  • 36. NEED FOR LOGISTICS IN INDIA •Highly Competitive and Low Cost •Low Utilization and High Transit Times •Overloading of Vehicles •Poor Infrastructure •Barriers to Free Movement •Very Unsafe VJTI-MTech(Proj.Mgmt) / Fall 2014 36
  • 37. Freight Cost • Canada - US$ 0.02 • Japan – US$ 0.037 • France - US$ 0.055 • India – US$ 0.07 high rates of economic growth and trade growth weaknesses in quality and geographical coverage of the logistics services and facilities VJTI-MTech(Proj.Mgmt) / Fall 2014 37
  • 38. BENEFITS • Reduced transit time and processing time • Optimal use of all modes of transport thus reducing overall cost • Easy access to value added logistics services • Improved service levels, professionalism • Reduction in inventory and damages. VJTI-MTech(Proj.Mgmt) / Fall 2014 38