The document provides an overview of logistics and transportation in India, with a focus on key players. It introduces concepts of logistics, the different types of logistics operations, and the functions of business logistics. It then discusses transportation as a key part of logistics, describing various transportation modes used in India like air, sea, road and rail. It outlines both growth drivers and challenges for each mode of transportation in India. The document concludes by profiling Container Corporation of India (CONCOR), the largest rail container operator in India, describing its services, network, assets and strategic vision.

1. Logistics: A Transportation
Perspective
Abhijit Parekh (12P090)
Shubham Tomar (12P107)
Karan Jaidka (12P141)
Nikhil Rana (12P153)
Preetish Rao (12P094)
Gautam Hariharan (12P137)
Lucky Sharma (12P145)
Rajesh Kumar Choudhary(12P158)
Operations Strategy (OS) – Section B – Group 10
PGPM 2012-2014, Management Development Institute (MDI), Gurgaon

2. Transportation in
Logistics

3. Introduction to Logistics
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It is the management of the flow of goods
between the point of origin and the point of
consumption in order to meet some
requirement
It originated out of requirements of military
services and was developed to procure, maintain
and transport material, personnel and facilities
It is the process of planning, implementing,
and controlling the effective and efficient flow
of goods and services from the point of origin to
the point of consumption
The logistics cost of company is estimated to be
around 2% of its sales
Types of logistics: Inbound Logistics: It concentrates on
purchasing and arranging the inbound
movement of materials, parts, and/or
finished inventory from suppliers to
manufacturing or assembly plants,
warehouses, or retail stores
 Outbound Logistics: It is related to the
storage and movement of the final product
and the related information flows from the
end of the production line to the end user

4. Business Logistics
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It is defined as “having the right item in the right quantity at
the right time at the right place for the right price in the right
condition to the right customer”
The main functions of a qualified logistician include
inventory management, purchasing, transportation,
warehousing, consultation, and the organizing and
planning of these activities
The nodes of a distribution network include: Factories where products are manufactured or
assembled
 A depot or deposit is a standard type of warehouse
thought for storing merchandise (high level of
inventory).
 Distribution centers are thought for order
processing and order fulfilment (lower level of
inventory) and also for receiving returning items from
clients.
 Transit points are built for cross docking activities,
which consist in reassembling cargo units based on
deliveries scheduled (only moving merchandise).
 Traditional retail stores of the Mom and Pop variety,
modern supermarkets, hypermarkets, discount stores
or also voluntary chains, consumer cooperative,
groups of consumer with collective buying power.
Note that subsidiaries will be mostly owned by
another company and franchisers, although using
other company brands, actually own the point of sale

5. Transportation in Logistics
 Cargo, i.e. merchandise being transported, can
be moved through a variety of transportation
means and is organized in different shipment
categories
 Unit loads are usually assembled into higher
standardized units such as: ISO containers,
swap bodies or semi-trailers
 For
very
long
distances,
product
transportation will likely benefit from using
different transportation means: multimodal
transport, intermodal transport (no handling)
and combined transport (minimal road
transport)
 Operators involved in transportation include:
all train, road vehicles, boats, airplanes
companies, couriers, freight forwarders and
multi-modal transport operators
 Merchandise being transported internationally
is usually subject to the Incoterms standards
issued by the International Chamber of
Commerce

6. Growth Drivers and
Challenges

7. Transport in India: Game Changers (1 of 4)
Air: The quickest possible way!
 Emergence of new cargo centres:
Opportunities in the air cargo sector now
extend to Tier-II cities as well. Tier-II hubs
have witnessed a growth of 14.5% in air
cargo volumes between 2006 and 2011.
Rising local demand, improved international
connectivity and resulting consolidation
activity, and expanding cargo-handling
infrastructure are the key drivers of
increased freight handling at Tier-II city
airports
 Improving air cargo infrastructure at
airports and more investments: Though
India currently lags behind its global peers,
increased
spending
in
airport
infrastructure through various airport
projects is expected to improve air cargo
infrastructure across the country. Investment
in airport infrastructure has grown
substantially over the last 3 Five-Year plans

8. Transport in India: Game Changers (2 of 4)
Ports: The Gateways to India
 Growth of Non-Major Ports: With a CAGR
growth of 13% from 2007-08 to 2011-12
(compared to 2% for Major Ports), Non-Major
ports have captured nearly 40% of the volume
of trade carried out by sea. Capacity overruns at
major ports, aided by a substantial increase in
the cargo traffic of fertilizers, building material
and coal, have resulted in significant
investments in the development of non-major
ports. Mundra, Pipavav and Hazira ports are the
frontrunners
 Emergence of East-Coast Ports: With
China’s emergence as India’s leading trade
partner, India’s ‘Look East’ policy and
overcapacity at west coast ports, east coast
ports present significant development
opportunities. Non-major ports are
expected to contribute 57 % of total
investments in east-coast ports

9. Transport in India: Game Changers (3 of 4)
Rail: India’s Lifeline
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Dedicated Freight Corridors: It is expected to
mark a paradigm shift in the transportation
scenario, resulting from the segregation of freight
on trunk routes, improving service delivery and
generating additional freight-carrying capacity.
There will be a reduction in unit cost of
transportation, guaranteed transit time and
improved service quality for a very focussed
overall approach
Road: For Last-Mile Connectivity
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Development of National Highways: To
encourage private players, the Government
has announced several incentives such as
declaring the road sector as an industry,
providing 100% tax exemptions in any
consecutive 10 years out of 20 years, duty
free imports of certain identified
construction plants and equipment, FDI of
up to 100%, and increased concession
periods

10. Transport in India: Game Changers (4 of 4)
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The desired ‘to
be’ state would
be an overlay of
transportation
networks,
allowing for the
efficient
transportation
of
each
commodity type
as well as a
natural
handover
point — where
networks
intersect
and
where
large
quantities are
broken down
into
smaller
volumes
for
last-mile
transportation
into
urban
centers

11. Transport in India: All’s Not Well!
Rail
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Important rail networks are over-saturated
Rail tariffs are quite high: Indian Railways
subsidizes passenger tariff at the expense of
freight tariff, resulting in Indian rail freight rates
being amongst the highest in the world
Long and uncertain transit times
Less flexibility in carrying different types of
goods: This is due to the unavailability of
specialized wagons for each type of product
Ports and Air Freight
Road
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Inadequate Road Network Coverage: National
Highways constitute just 2% of the Indian road
network, but carry 40% of the total traffic, resulting
in severe congestion
Poor road quality
High level of fragmentation of the trucking
industry: This leads to fierce competition, resulting
in truck owners trying to overload to recover their
investments
Multiple check-points result in unnecessary
delays
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High Turnaround times: This is because of the
congestion on berths and slow evacuation of
cargo which are unloaded at the berths
Inadequate depth at the ports: Depth at many
Indian ports is inadequate, resulting in many
large vessels choosing not to dock at Indian ports
Coastal shipping is yet to take off: Inadequate
port and land infrastructure and a non-favourable
tax regime has inhibited the growth of this sector
Higher waiting times, high fuel costs and
tariffs negatively impact the air freight sector

12. Key Company Profiles

13. Rail Freight: Container Corporation of India
CONCOR Functions
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Overview
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Year of Establishment: 1988
Year of Operation: 1989
Holding Pattern: MOR – 63%,
Public FIIs 37%
Listed Company: NSE and BSE
Status: Schedule A Mini Ratna
Network Strength: 61 ICDs/CFS
• EXIM Pure: 17
• Domestic Pure: 12
• Combined: 32
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Logistics Support to EXIM
(Export/Import) and domestic
traffic
Coordinate
containerized
railway movements across
country
Provide warehousing facilities
Design, construct and operate
ICDs
Operates
port
terminals
collaborating
with
International Port Operators
Significant player in multi
modal transport services
Regional Distribution
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North India: 19
South India: 14
West India: 14
East India: 09
Central India: 05
Total: 61
Core Business
CONCOR Services
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Train Handling
Container Stacking
Customs clearance of
Import/Export cargos
Warehousing
of
Cargo (transit, multistack, air)
Value Added Services
Door
to
Door
Solutions
Movable Asset Details
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No of rakes – 240
Wagons – 10,777
Containers – 15,579
Gantry Cranes – 14
Reach Stackers - 60
Important Projects
Cargo
Carrier
Terminal
Operator
Warehouse
Operator
 ICD, Dadri (Noida)
 ICD,Tughlakabad(Delhi)
 ICD, Whitefield (B’lore)

14. Rail Freight: Container Corporation of India
Business Trends
Turnover
IT Systems
Container Traffic Trends
(MT of container traffic)
2009-10
2010-11
Carried by IR
34.36
36.86
Carried by CONCOR
26.60
27.75
%ge share of IR Traffic
77.4%
75.28%
Carried by other CTOs
7.76
9.11
%ge share of IR Traffic
22.59%
24.72%
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VSAT based network extended over 64 locations
Web Enabled Customer Feedback
Facility for e-filing of documents
Terminal Management Systems for
• EXIM (ETMS, CCLS)
• Domestic (DTMS)
• ERP for Finance (Oracle Financials)
• Data Warehouse for commercial applications
IT Applications
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Container Repair System, Track &Trace System
Online Vigilance Clearance System

15. Rail Freight: Container Corporation of India
Strategic Vision
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Continue to be leading player in India for rail
based inter-modal services
Be the leading “third party logistics” service
provider of India
Integrate rail, road, sea and air cargo logistics
and operate multimodal cargo hubs in India
Extend operations in foreign countries and
emerge in league of international operators
Certifications and Awards
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ISO 9000 Quality System Certification
MOU Excellence Awards from FY’05 to
FY’09
Dun and Bradstreet Corporate Award –
2008, 2009, 2010
Accredited with “AAA” rating by CARE –
Best Credit Quality, Highest Safety for
Timely Debt Service Obligation
Future Roadmap
Ranking
Turnover
Net
Profit
Overall
161
85
Transport and
Logistics Sector
3
1
(source: Economic Times, 2011)

16. Road Freight: Transport Corporation of India
4.1 TCI Freight
3. Network
1. Market Position
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Started as ‘One Man, One
Office, One Truck’ company
in 1958
Leading integrated supply
chain and logistics solution
provider
Listed on both NSE and BSE
2. Operations
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Fleet of 7000 trucks/
trailers/ reefer vehicles
Fleet of 4 cargo ships
9.75 mn sq ft of warehousing
space
Skilled workforce of 6500
with
20,000
outsourced
positions
Own offices in 6 countries
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Pan India Network
1400 company owned
branches
nationwide,
covering 99.45% of GDP
Covers 17,000 locations
within India and abroad
Transporting 2.5% by
value of India’s GDP
4. Divisions
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TCI Freight
TCI XPS
TCI Suply Chain Solutions
TCI Seaways
TCI Global
5. IT
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In-house ERP: EDI Capable
Web based Track and Trace
through GPS
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Largest Division
2400 trucks and trailers
4.2 TCI XPS
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Express door to door service
for time sensitive and high
value items
4.3 TCI SCS
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Logistics solutions provider
Customized fleet of 1100 own
trucks
including
38
refrigerated trucks
Auto sector -70% revenue
JV with Mitsui, Japan
4.4 TCI Seaways
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Coastal shipping services
Net Capacity: 15634 DWT
4.5 TCI Global
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Establish subsidiaries globally
Indonesia, Brazil and Nigeria

17. Air Freight: BlueDart Aviation Ltd.
Delivering Leadership
Air Freight Services
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Year of commencement: 1983
Territories Serviced: 220+
Domestic Locations Serviced:
32,000+
Air Support: 7
Air Network Stations: 7
2011 Annual Shipments (mn):
100
2011 Annual Tonnage (‘000):
423
Workforce: 8,000+
Retail Outlets: 486
Advanced Technology
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Weight Dimension Labeling
(WDL)
Hand Held Device (OTM)
Ground Technical Support (GPS)
Smart Truck
RFID
Airport-to-Airport
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Interline Services
Charter Services
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Co-Load
India Post
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Proprietary
Aviation
Network: First scheduled
cargo airline with dedicated
fleet
of
freighters
and
infrastructure support
Market
Leading
Transit
Times:
Fastest
deliveries
across B2B, B2C, C2B and C2C
channels
Innovator: 28+ years and
numerous industry firsts

18. Sea: Shipping Corporation of India
Total Ships: 74
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Established on 2nd October, 1961
Fleet includes Bulk carriers, Crude oil tankers,
Product tankers, Container vessels, Passengercum-Cargo vessels, Chemical carriers and
Offshore Supply Vessels
Operates 1/3rd of the Indian tonnage
Services Provided: Break-bulk services,
international container services, liquid/dry
bulk services, offshore & passenger services
Major Clients
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Indian Oil Corporation Ltd.
Bharat Heavy Electricals Ltd.
Steel Authority of India Ltd.
Oil & Natural Gas Corporation Ltd.
Reliance Industries Ltd.
Bharat Petroleum Corporation Limited
Hindustan Petroleum Corporation Ltd.
British Petroleum
British Gas
3 Segments of SCI: Growth Rate
Dry Bulk
• Growing
at 6.4%
Crude Oil
• Growing
at 3.8%
Products
• Growing
at 2.3%

19. The Way Forward
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Increase investment in railways by reallocating
from roads
Creating enablers to maximize efficiency,
logistics parks, standardized containers etc.
Improve rail and road maintenance and
existing equipment
If current trends prevail, inefficiencies
associated with poor logistics infrastructure
will increase from $45 billion today to $140
billion in 2020. However, a well-planned
infrastructure program could help India cut
this waste by half and transportation fuel
requirements by 15 to 20 percent.
Projections

20. Logistics: A Transportation
Perspective
Thank You!