OPPORTUNITIES IN DRY BULK LOGISTICS IN INDIA

B. VelanManaging Director

Scorpio Engineering Pvt Ltd India

ENVIRONMENTAL DISASTER OR COMMERCIAL OPPORTUNITY?

28 States and 7 Union Territories

1.Andhra Pradesh2.Arunachal Pradesh3.Assam4.Bihar5.Chhattisgarh6.Goa7.Gujarat

8.Haryana9.Himachal Pradesh10.Jammu and Kashmir11.Jharkhand12.Karnataka13.Kerala14.Madhya Pradesh

15.Maharashtra16.Manipur17.Meghalaya18.Mizoram19.Nagaland20.Orissa21.Punjab

22.Rajasthan23.Sikkim24.Tamil Nadu25.Tripura26.Uttar Pradesh27.Uttarakbhand28.West Bengal

States of India 28

A.Andaman and Nicobar IslandsB.ChandigarhC.Dadra and Nagar HaveliD.Daman and DiuE.LakshadweepF.National Capital Territory of DelhiG.Puducherry

Union Territories of India 7

MAJOR ROADS NETWORK670000 KM excl rural roads of 2000000 KM65% of freight moves on roads

North-South 3200kmEast-West 3000km3.3m sq km area7th largest country

Total navigable length 14200km ( will increase with desilting) Developed to date: 5 national waterways, 4500km

63000 ROUTE KM NETWORK

3RD LARGEST IN THE WORLD

(114000 TRACK KM)

bottom discharge alumina rail wagon

7500km coastline180 minor ports13 major ports

INDIA PORTS

• 13 Major Ports, mainly Government owned• 180+ Minor Ports, open to private investment

and public-private partnership• Total of USD 10 billion to be spent on Ports

and Terminals by 2020• Projects for interlinking rivers and developing

Inland Waterways

TYPICAL PRODUCTION LEVELS

• Sugar 20 million tonnes per year– equal to production in entire Europe

• Cement 300 million tonnes– equal to production in entire Europe

• Soda Ash 3 million tonnes• Grain 86 million tonnes• Rice 120 million tonnes• Alumina 2 million tonnes

TOTAL NUMBER OF 50KG BAGS: 10 BILLION/YR27 MILLION /DAY

THE DISTRIBUTION SCENE

• 27 million 50kg bags per day• Potentially 67500 linered 20ft containers per

day• Potentially 33000 silo trucks (40T) per day• Potentially 675 river barges per day (2000 dwt)

IS THIS NOT A CASE FOR A SPECIALIZED DRY BULK LOGISTICS COMPANY IN INDIA?

Kassbohrer Germany

Convair Australia ACC

Cement India

Types of Road Bulk Trucks

                          

1. BE LT THROWERGranules

FILLING OF CONTAINER

NICOR IN TERNATIONAL 1121-1

Silo outlet

Silo outlet

Silo outlet

2. AU GERPowder

3. PN EUMAT ICCONV YEING

Telescope pipe

High pressure bloweror compressor

Rotary valve Filter unit

CourtesyCaretex Denmark

Courtesy Interbulk Group UK

Silos for dry bulk materials in Indian manufacturing plants- these are few and far between as of now- the potential is exponential. The silo to silo concept should become the norm.

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POSSIBLE BUSINESS MODEL

• Own all assets: silo trucks, barges, bulk trucks, isocontainers. Provide one stop solution

• Outsource and manage• Lease silos and silo loading/unloading,

bagging equipment to customers. Use modular concept- silo parks

• Take long term contracts on per tonne basis of materials supplied

FUNDING

• Capital is not a constraint• VCs and Investment funds are plenty waiting

to invest in India and Indian infrastructure/logistics ( highest logistics costs in India compared to all other comparable countries)

• Long term approach and investment as a focussed business area

THANK YOU FOR YOUR PATIENCE

for further information and facts please mail velan@scorpioengg.com