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LOGISTICS
INDIAin
OVERVIEW
Rajath D. M. 12.12.2016
14.4%Logistics Cost asPercentage of GDP
Scenario
LPI3.42Logistics Performance Index
Ranks 35 Globally
Major contributing IndustriesAutocomponentsCementsTextilesPharmaceuticals
$300billionSize of India’s Logistics marketGrowing at a rate of 16% CAGR
ScenarioCost & Mode of logistics
TransportInfrastructure, Initiatives, Growth
Rail7,549Freight trains
239,321Freight Cars
64,600Route Kms
2.8M tonnesFreight Traffic per day
Dedicated Freight CorridorsEastern & Western DFCs comprising total of 3,360KMs completed
Additional DFCs under planning: North-South, East-West, East coast & South-West
The Golden Quadrilateral Freight Corridor - GQFC connects 10,122 kms & generates 55% of revenue
Ro-Ro schemeUnique Roll on - Roll off scheme introduced for Trucks by Konkan Railway
Allows trucks to be transported on flatbed trailers
110,000 trucks transported so far, bringing in ₹ 740 million in revenues
Private RailwaysFew private companies, ports own private railways
The Freight Charges on these routes are decided by Indian Railways
Some of these are joint sector companies and some work on a model similar to BoT
Road5 millionKms of Total road network
70,934Kms of National Highways
1,208Kms of Expressways
Public-Private PartnershipBuild Operate Transfer (BOT) Toll, BOT (Annuity) and the Hybrid Annuity Model (HAM)
Plan to build 2M Kms of NH & to convert 40,000 Kms of SH to NH
Investment opportunities in logistic parks, cold storage, warehousing along the Highways
Golden QuadrilateralGolden Quadrilateral project connecting 4 metropolitans completed in 2012
5th largest highway project in the world connecting 5,846 Kms
Major Industrial hubs planned across GQ to boost economy
Smart HighwaysSmart Highways initiative with Intelligent Traffic Management Systems, Variable Messaging Systems etc planned
Rs 5 to Rs 100 coupons introduced by MoRTH to promote cashless toll collection on National Highways
2.8 millionFreight trucks
50%Of total Freight Movement
Water7,517Kms of coastline
95%Of Foreign trade by Sea
12Major ports
Shipping Corporation of IndiaGovt owned company owns & operates 35% of tonnage
Has a fleet of 79 ships of 2750,000 GT (4.8 million DWT) and also manages 53 research, survey and support vessels of 120,000 GT (060,000 DWT)
Sagarmala InitiativeStrategic and customer-oriented initiative of the GoI to modernize India's Ports
6 megaports planned in states of Karnataka, Tamil Nadu, Kerala, West Bengal & Andhra Pradesh
Total investment of USD 10 Billion committed
Inland WaterwaysIndia has an extensive network of inland waterways in the form of rivers, canals, backwaters and creeks
5 National Waterways have been declared connecting over 2000Kms
Waterways have immense potential and are highly underutilized in India
1605MMetric Tonnes of Cargo in 2014-15
187Minor Ports
$2.69BInvested in ports & shipping in last 3 years
Air2.28millionMetric tonnes of cargo per year
350Major airports
Scope for growthWith Make in India and increased focus on electronics, Air Cargo has a lot of scope for growth
Key growth to come from light, high value goods
Great potential for foreign trade and exports
3PLs leading Air CargoEntry of DHL, TNT etc Third party logistics is fuelling Air Cargo logistics
$14BInvested in airports in last 3 years
12.5%CAGR for next 5 years
$85billionEstimated market in 2020
Dedicated Air Cargo terminalsDedicated terminals and private bonded facilities being set up at metro airports
Smaller, new airports being built to promote air cargo
Storage & Warehousing
Industrial WarehousingDriven by high retail demand and consumer appetite. Currently on most promising growth trajectory
Liquid WarehousingMainly refers to the storage of liquid bulk such as crude, petroleum products, chemical and edible oil
Cold StorageStorage of perishable goods. High potential of growth targeting un- broken cold chain
Agri WarehousingTargeted to store agricultural goods with larger shelf life
Container StoragePrimarily targeting export-import led container handling
Growth Drivers
Export Import Led Demand
In 2014-15, all major and non-major Indian Ports in India, as listed by Indian Ports Association (IPA) handled about 1605 Million Metric Tonnes (MMT) cargo
EXIM cargo is expected to increase to 2,800 MMT by 2020
Containers handling is growing at about 11% CAGR
Manufacturing Led Demand
Indian manufacturing GDP is approximately 15% of the total and stood at INR 8.6 trillion in 2013–14
The manufacturing sector is growing at a CAGR of 7.3% since the past nine years
The "Make in India" initiative is expected to boost the manufacturing sector to 10% growth
The manufacturing sector spends 2-20% of its revenue on logistics
Consumption Led Demand
Per capita income - Growth of 10.4% in 2013-14
Booming e-commerce industry
E-commerce industry to reach USD 20 billion to USD 25 billion by 2017
FMCG market is also gaining traction
Agriculture Led Demand
India is the second largest producer of vegetables and fruits after China
Because of the lack of infrastructure and broken cold chain, more than 30% of agri-produce is lost in fields post harvesting