Analysis of Indian Logistics

Sector

Manoj Bharadwaj. B
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 ..

v 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.
v 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
Ø Competitive Pricing
vHigh costs of operations
Ø Safety
vLow margins
Ø Customer Satisfaction
vShortage of talent
Ø Wide Geographic Reach
vInfrastructural bottlenecks
Ø Operational Efficiency
vDemand from clients for investing in technology and providing
one-stop solutions to all their needs.
Ø Time Factor
vConsolidation through acquisitions, mergers and alliances.
Ø 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, Manufacturing Industry

Agricultural industry Infrastructure
Plans and 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 tax, •The introduction of GST in India would mean that
entry tax, stamp duty, telecom licence fees, turnover manufactures will now base their logistics decisions on
tax, tax on consumption or sale of electricity, taxes on operational efficiency instead of tax optimization.
transportation of goods and services
•Will enable manufacturers and 3PLs to set-up and
•Hopes to increase the tax base position their warehouses and distribution channels
based on the considerations of time, cost and logic.
•Aims to remove the disparity in taxation or
differential treatment to manufacturing and service •Manufacturers will now be encouraged to outsource
sector. their logistics and supply chain operations.

Other Tax Reliefs

vThe 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.

vThe 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.

vDeductions 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

vNine Mega Industrial zones of about 200-250 sq. km.,
ØTarget: 15,766 km. vHigh speed freight line,
vThree ports, and
ØPhasing of expressway: 2012, 2017, 2022 vSix air ports;
vSix-lane intersection-free expressway connecting Delhi and Mumbai
ØProject Cost estimation: >> INR 2.5 trillion v4000 MW power plant.

ØPlan 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
ØEstimated Cost for Phase I: Rs. 20,000 crore. attract more foreign investment.

ØLanes: 6 to 8 lanes Funds for the projects would come from the Indian government,
Japanese loans, and investment by Japanese firms and through Japan
Ø11 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 Ø 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
Ø 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:

vMajor investments on these infrastructures have come from Government agencies like CWC, SWC, CONCOR etc.
vCurrent private sector initiatives are small and sporadic.
vPrivate sector warehousing are of poor quality, small, fragmented and does not meet infrastructure standards.
vNo 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)

Ø 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

Ø 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

Ø 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

Ø To create economies of scale, the business plan of ICD is being expanded to include SCM functions like warehousing, C&F and
other value added services to give the project shape of “Mega Logistics Park”

INTEGRATED TRANSPORT CENTER

v 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

v IL&FS has initiated development of integrated and modern logistics cum transport centers across major locations in the country
on PPP format

v The centers will lead to integrated development of warehousing, transportation and traffic planning leading to a much better
logistics operations

v 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

vImprove focus on core activities

üOperational cost reduction
vImprove return on assets
ü Reduced cycle time
vDiverting capital investment
ü More specialized logistics expertise
vAccess/ Expansion to unfamiliar market
ü Improve on time delivery
vHigher Profitability
ü Enhance geographic reach
vIncreased Sales and Market Share
ü Flexibility in operations
vEnhanced 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:

v It acts as single interface between the client and multiple logistics service providers.

v All aspects of the client’s supply chain are managed by the 4PL organisation.

v 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.

v 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
ü Extremely critical for manufacturing Ø High cost – low margin business
industry and agri commodity industry Ø Large number of unorganized players
ü No dearth in volumes Ø Low IT penetration
ü Critical component in operational efficiency Ø Highly fragmented
ü Contributes heavily towards customer Ø High Capital expenditure
satisfaction

OPPORTUNITIES
• Implementation of GST from 1st April 2011
• Implementation of Golden quadrilateral THREATS
and NS-EW corridors. v Increase in fuel costs
• Heavy investments to improve v Government Policy
infrastructure through developmental v Taxation
projects like Mihan, delhi-mumbai
industrial corridor, Dedicated freight
corridor and National Maritime
Development Projects.
Challenges:
Unfair Competition Solution / Opportunity:
ØUnorganized players get away without paying taxes üImplies that a truckload loss of Goods is always
ØDon’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:

ØDifferential sales tax structure in different states üProposal for implementation of GST.
ØApart 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
ØGovernments failure in implementation of VAT since 1st of April 2005 Tax avoidance optimization.

Face multiple check post

Solution / Opportunity:
ØThis delays the process of delivery üIntegration of IT into the process like EDI could
ØCompliance 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
ØLack of communication infrastructure Solution / Opportunity:
ØLack of visibility üPenetration of 3PL players and high level of
ØLack of real time tracking ability investments into technology like GPRS would
ØThis 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:

üValue Added Services provides a great
ØLSP’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 üThe scenario could grossly change with greater
Ø$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.
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 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

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 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%

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 GDP and industry contribution

Sector Employment Interms of contribution

Agriculture 60.00% 27.00%

Service 28.00% 55.00%

Industrial 12.00% 18.00%

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 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.

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 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

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 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