Business Potentialsin IndianTransport Industry

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Cooperation Opportunities between EU and India in the transport sector

The EBTC project – European Business & Technology Centre

Business Potentials in Indian Transport

Industry

Sofia 30 th June 2010

Speaker: Annalisa GAMBA

Ceipiemonte S.c.p.a. – Italy -

EBTC is a programme co-financed by the European Commission, managedfrom its Delegation in India, and co-ordinated by EUROCHAMBRES

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Topics

• Overview of Indian transport sector

• Focus aviation/aerospace

• Focus ITS


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FOCUS INDIA TRANSPORT SECTOR


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7.2% (2008 estimate)9.1% (2008 estimate)UNEMPLOYMENT rate

3.5% (2008 estimate)8.3% (2008 estimate)INFLATION RATE (consumer

prices)

224.4 million(2008 estimate)

523.5 million(2008 estimate)

LABOUR FORCE

USD 33,700 (2008 estimate)

USD 2,900 (2008 estimate)

GDP per capita (PPP) (Purchaising Power Parity)

3% (2007 estimate)9% (2007 estimate)GDP real growth rate

USD 18.14 trillion(2008 estimate)

USD 1.207 trillion(2008 estimate)

GDP

491,582,852 (july

2009 estimate)

1,166,079,217 (july

2009 estimate)POPULATION

4,324,782 sq km3,287,263 sq kmSURFACE AREA

EU-27 INDIAINDICATORS

EU – INDIA Short Comparison

5464 per 1000 people (the figure refers to passenger cars)

12 per 100 peopleMOTOR VEHICLES

452 billion tkm407,398 million tkmRAILWAY goods transported

3 billion tkm (tons per km)773.22 million tkm(tons per km)

AIR goods transported

395 billion pkm(passenger per kilometre )

575,202 million pkm(passenger per kilometre )

RAILWAYS,

Passengers carried

571 billion pkm

(passenger per kilometre ) The

figure refers to intra-EU air transp.

25,527,740AIR TRANPORTS,

passengers carried

52,332 km (2006 data)14,500 KmWATERWAYS

5,454,446 km (2008 data)3,316,452 km (includes 200Km of expressways)

ROADWAYS total

229,450 km (2008 data)63,327 kmRAILWAYS total

100 (2007 data)37 (2009 data)HELIPORTS

3,391 (2009 data)454AIRPORTS

EU-27INDIAINDICATORS

EU –INDIA COMPARISON

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INDIA TRANSPORT SECTOR: Facts & Figures

• Catering to the needs of 1.1 billion people

• In 1997 the sector contributed 4.4% to the

nation’s GDP

• Since the early 1990s rise in demand for

transport infrastructures and services by

around 10% per year


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India Railway Transport Sector: Facts & Figures

• The largest railway network in Asia

• The 4th most heavily used system in the world

• Some 14 million passengers per day carried

• One of the world’s largest employer

• Leading role in carrying passengers and cargo acrossIndia

• Increasing shifting of movement of freight from rail toroad due to tariff policies that overcharge freight to

subsidize passenger travel


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India Road Transport Sector: Facts & Figures

• 3.316 million km road network including National Highways, Expressways, State Highways, Major DistrcictRoads, Other District Roads, Village Roads

• National Highways constitute 2% of the road network butcarry 40% of the total road traffic

• 65% of freight carried by roads

• 87.4% passenger traffic carried by road

• The density of India’s highway network at 0.66 km of highway per square kilometer of land is similar to that of the USA (0.65) and much greater than China (0.16) or Brazil (0.20)


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India Maritime Transport Sector: Facts & Figures

• 12 major and 185 minor and intermediate ports

serving the country’s growing foreign trade in

petroleum products, iron ore and coal as well as

the increasing movement of containers

• Inland water transportation largely

underdeveloped despite India’s 14000 kms of

navigable rivers and canals


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India Aviation Transport Sector: Facts & Figures

• 12 international airports

• Delhi and Mumbay airports accounting for

50% of the nation’s air tarffic

• Air traffic growing at over 15% a year

leading to severe strain on infrastructure at

major airports


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INDIA TRANSPORT SECTOR: Future Challenges

India’s roads congested and of poor quality .

• Low lane capacity (most national highways are twolanes or less)

• High congestion reducing truck and bus speeds to 30-40 kmph

• Poor quality and road maintenance significantly under-funded (only one third of maintenance needs are met)

• Consequence: deterioration of roads and high costs forusers


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Poor access by rural areas.

• Roads significant for the development of rural areas hosting

almost 70% of India’s population

• Rural road network extensive but some 40% of India’s

villages do not have access to all-wheather roads and

remain cut-off during the monsoon season

• Problem more serious in India’s northern and northeastern

states poorly linked to the country’s major economic

centers


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Railways facing severe capacity constraints

• All the country’s high density rail corridors face

severe constraints

• Freight transportation costs by rail are much higher

than in most countries as freight tariffs in India

have been kept high to subsidize passenger traffic


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Urban centres severely congested

• Roads often severely congested in metropolitan

centers during rush hours

• Dramatic growth in vehicle ownership at some 15%

a year during the past decade has reduced rush

hour speeds to 5 – 10 kmph in the central areas of

major cities


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Ports are congested and non-efficient

• Port traffic has more than doubled during the 1990s reaching 521 million tons in 2004-2005.

• It is expected to grow further to about 900 million

tons by 2011 – 2012

• Urgent need for India’s ports to significantly rampup their capacity and efficiency to meet thissurging demand


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Crucial issues in India’s transport sector

• India’s transport sector is poised for huge growth but it has also to face big challenges

• The country’s automotive and lorry industries need advanced IT-basedsystems and capabilities

• Road construction equipment and methods need to be modernised tomeet rising safety standards

• India’s extensive rail network needs a complete overhaul

• Improving road safety in India is crucial due to the high rate of fatalities

• Strong interest in new materials research, telematics, radar technology and satellite-based positioning capabilities, collision-avoidance systems for carsand lorries.

All the above issues are of equal interest to EU industries


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EU-INDIA cooperation

• Great potential for scientific and industrial cooperation EU-INDIA in the transport sector

• Both countries already involved in advanced research on fuel cell technologies and in exploitation of new materialsto make vehicle safer and cleaner

• Both are exploring new concepts in road construction and traffic flow

• Shared priority: reduce road fatality rates

The EC Communication “An EU-INDIA Strategic Partnership” (June 2004) emphasizes the need to build on synergies within the framework of

scientific and technological cooperation


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THANK YOU


CEIPIEMONTE S.c.p.a.

Piemonte Agency for

Investments, Export and

Tourism

�Corso Regio Parco 27 – 29

10152 Torino – Italy –

�+39 011-6700.511

�+39 011 696.54.56

E-mail: [email protected]

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Business Potentialsin IndianTransport Industry