analysis of indian logistics sector - 2009
TRANSCRIPT
Analysis of Indian Logistics Sector - 2009
Manoj BharadwajFortress Financial Services ltd.
Mumbai
Overview of the Logistics Sector
Structure of the Logistics Sector
Major Demand and Growth Drivers of Indian Logistics
Comparison of Indian Logistics Sector with different countries
SWOT Analysis
Challenges and Opportunities
Flow of the Presentation
3PL and 4PL
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
Unorgan-ized90%
Organized10%
Unorganized Player:• Owner with less than or equal to 5 trucks.• They contribute about 80% of the revenue.
0.3 to 1 crore89%
1 to 10 crore9%
10 to 100 crore2% more than 100 crore
0.3%
Total Market Size of Logistics is estimated to be $ 95 billion
Level of Competitiveness
Overview of the Logistics Sector:
Market Structure
Penetrating this huge volume of Unorganized
Players is by far the biggest challenge
Level of competition is extremely intense,
undercutting beyond a point may not be feasible. Hence
LSP’s have to go beyond rendering just the basic
services.
LSP: Logistic Service Provider
Share amongst different segments of Logistics sector:
Railways24%
Major Ports16%
Minor Ports6%
Roads55%
Cargo Share amongst different Segments
Share in Revenue Generation amongst different Segments
Railways13%
Roadways47%
Ports2%
Warehousing37%
Civil Aviation1%
Civil Aviation (Negligible) Segments
Annual Turnover in 2008-09 (INR
billion) Railways 534
Roadways 2086Ports 91
Warehousing 1,500
Civil Aviation 43
Nearly 70% of domestic freight is carried by the Road segment and the remaining by Rail segment while the
contribution of the remaining two segments is comparatively negligible.
International freight is completely dominated by Sea Port Segment.
Where do we stand Globally ..
•Indian Railways is 2nd largest in the world just marginally behind China
•Indian Roadways is also the 2nd largest behind U.S which has 6.4 million km of network.
•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
Logistics Segment Growth DriversProjected
Growth RateBarriers to
entry Dominance of PlayersCapex
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
WarehousingAgriculture commodities,
Manufacturing activity 40% Medium Unorganized High Regional to National
TruckingAgriculture commodities,
Manufacturing activity 12% Low Unorganized Low Local
Container EXIM and domestic trade 15-20% Medium Organized High National
Inland Container Depots / Container
Freight Stations EXIM 15-20% LowOrganized /Unorganized High Local
Characteristics of Logistics Sector
High costs of operations
Low margins
Shortage of talent
Infrastructural bottlenecks
Demand from clients for investing in technology and providing one-stop solutions to all their needs.
Consolidation through acquisitions, mergers and alliances.
Value Driver:
Competitive Pricing
Safety
Customer Satisfaction
Wide Geographic Reach
Operational Efficiency
Time Factor
Value added services
Transporta-tion35%
Inventory Handling and Warehousing
34%
Packaging11%
Losses14%
Customer Shopping6%
Major Cost Elements
Loses of 14% translates into roughly INR 290 billion for various industries primarily
due to the Unorganized section
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:
Logistics
Manufacturing Industry InfrastructureGovernment Policies, Plans and Taxation
Roads
Railways
Warehouses
Ports
Civil Aviation
Auto
Cement
FMCG
Food & Beverages
Steel
TextilesImplementation of GST
Agricultural industry
Enhances the market reach of
the industry
FMCG, Pharma and Food processing apart from agro products have
substantial requirement
Accounts for about 50% of the
total logistics market
Favorable policies drives the growth of
logistics sector
Growth Driver Growth DriverDemand Driver
11th Five Year Plan (2007-12) (Roads, Railways, Ports and Civil Aviation)
(INR billion)
Railways Roadways Shipping & Ports Civil Aviation
4,457
2,510
Slightly over 3 times jump from 10th 5YP
Private Investments
GBS37%
IEBR18%
Private Invest-ments45%
Roadways - 1,941 INR billion
GBS6%
IEBR49%
Private Invest-ments46%
Shipping & Ports – 807 INR billion
GBS1%
IEBR31%
Private Invest-ments68%
Civil Aviation - 1,370 INR billion Railways - 2,510 INR billion
8% of India’s GDP in 2009
56.3%24.08% 9.84%
9.77%
Government Plans
Gross Budgetary Support (GBS)Internal and Extra Budgetary Resource (IEBR)
1,073 438 435606 621 54 129
10th 10th 10th 10th
867 368 934
> 4 times 1.72 times 8 times 3.4 times
Rationalization of tax:
Goods and Services Tax (GST) – Proposed to be implemented by April 2010.
Other Tax ReliefsThe 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.
The 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.
Deductions under section 80-IA meant for infrastructure industry, which has been extended to railways.
•Aims to remove multiple taxation by abolishing taxes such as Octroi, Central sales tax, State level sales tax, entry tax, stamp duty, telecom licence fees, turnover tax, tax on consumption or sale of electricity, taxes on transportation of goods and services
•Hopes to increase the tax base
•Aims to remove the disparity in taxation or differential treatment to manufacturing and service sector.
Impact
•The introduction of GST in India would mean that manufactures will now base their logistics decisions on operational efficiency instead of tax optimization.
•Will enable manufacturers and 3PLs to set-up and position their warehouses and distribution channels based on the considerations of time, cost and logic.
•Manufacturers will now be encouraged to outsource their logistics and supply chain operations.
Government Policies and Taxation
Roadways:
(as of 2009)
(Source till 2005: KPMG)
Type of Road Length (in km) Percentage
Expressways 200 ---
National Highways (NH) 70,548 2.12%
State Highways (SH) 1,31,699 3.96%Major District Roads (MDR) 4,67,763 14.08%
Rural and Other Roads 26,50,000 79.81%
Total Length 33,20,210
A few Vital Stats ..
•70% of freight taken by roads
•NH carries about 40% of road traffic
•Avg. truck speed in NH – 20 to 30 km / hr
•SH and MDR carries 40% of road traffic
•Traffic on roads is growing by 7% - 10%
•Vehicle population 12% growth
Infrastructure
1995 2000 2005 20090
500
1000
1500
2000
2500
610840
1430
2086
Road Freight Valuation (INR billion)
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
0
1
2
3
4
5
6
1.9
2.6
3.13.5
4.64.9
3.8
Post-Liberalization Average Growth of NH
during each 5 YP is 24.08%
Number of kilometers added post-
liberalization 39,901 km.
Sale of Commercial Vehicles (in lakhs)
(Source : SIAM)
Post liberalization growth 9.1% and
growth from 2000 is 10.6%
Growth in Commercial
vehicles from 2002-03 is 12.2%
S. No. Name of Project Likely Cost ( INR billion) Completion Dates
1. Completion of GQ and EW-NS corridors (Phase I and II)
524 December 2009
2. 4 -laning of 11,113 km under NHDP Phase-III 724 December 2013
3. 2-laning with paved shoulders of 20,000 km of National Highways under NHDP Phase-IV
278 ---
4. 6-laning of selected stretches of National Highways under NHDP Phase-V
412 December 2012
5. Development of 1000 km of expressways under NHDP Phase-VI
166 December 2015
6. Construction of ring roads, flyovers and bypasses on selected stretches under NHDP Phase-VII.
166 December 2015
Total 2,272
Projects undertaken by NHAI:
Corridors Total Length(in km)
Length Completed(in km)
Length Under implementation(in km)
Balance for award
(in km)
Golden Quadrilateral 5846 5713 133 ----
North-South & East-West
7142 3291 3030 821
Port Connectivity 380 206 168 06
NHDP Phase-III 12,109 659 1816 9624
NHDP Phase-V 6500 77 953 5470
Total 32939 10705 6283 15951
Out of a total length of 6283 kms under implementation, 4/6 laning has been completed for a partial length of 2130 kms.
Current Status of Projects:
Infrastructure Development Projects:
(as of Dec 2009)
National Expressway:
Target: 15,766 km.
Phasing of expressway: 2012, 2017, 2022
Project Cost estimation: >> INR 2.5 trillion
Plan for Phase I: 3,530 km (Report from Yahoo News 9th Dec ’09)Estimated Cost for Phase I: Rs. 20,000 crore.
Lanes: 6 to 8 lanes
11 stretches and 12 states identified
Infrastructure
Development Projects:
Delhi Mumbai Industrial CorridorDelhi-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.
This project incorporates Nine Mega Industrial zones of about 200-250 sq. km., High speed freight line, Three ports, and Six air ports; Six-lane intersection-free expressway connecting Delhi and Mumbai 4000 MW power plant.
Several industrial estates and clusters, industrial hubs, with top-of-the-line infrastructure would be developed along this corridor to attract more foreign investment.
Funds for the projects would come from the Indian government, Japanese loans, and investment by Japanese firms and through Japan depository receipts issued by the Indian companies.
Major Industrial Regions
Railways:
(as of 2009)
Passenger traffic / day 18 million
Freight traffic / day 2 million tonnes
Railway coverage 63,465 km
Freights wagons 2,00,000
Coaches 50,000
Locomotives 8,000
Infrastructure
Coal 43%
Ore to Steel plants9%
Ore - Export7%
Cement9%
POL5%
Foodgrains
6%
Fertil-izers5%
Iron & Steel3% Others
14%
Railways Cargo Constituents and its share
2004-05
2005-06
2006-07
2007-08
2008-09
0
100
200
300
400
500
600
308
363
416
473
534
Freight Earnings (INR billion)
2004-05
2005-06
2006-07
2007-08
2008-09
0
100
200
300
400
500
600
700
800
900
602667
726785
848
Cargo (in million metric tonnes)
Growth of 14.75%
Growth of 8.9%
Dedicated Freight Corridor – Rs. 40,000 crore
Western Corridor 1483 km JNPT in Mumbai to Dadri in U.P
Infrastructure Development Projects:
Projected Traffic (in million tonnes)
Logistics Park: Proposed to set up Logistics Parks at
1. Mumbai area, particularly in the vicinity of Kalyan-Ulhasnagar or Vashi-Belapur in Navi Mumbai.
2. Vapi in southern Gujarat3. Ahmedabad area in Gujarat, 4. Gandhidham in the Kutch region of Gujarat5. Jaipur area in Rajasthan, 6. NCR of Delhi. These parks are proposed to be developed on Public Private Partnership mode by creating a sub-SPV for the same.
Cargo Constituents:
ISO containers from JNPT and Mumbai Port in Maharashtra and ports of Pipavav, Mundra and Kandla in Gujarat destined for ICDs located in northern India
POL, Fertilizers, Food grains, Salt, Coal, Iron & Steel and Cement.
Western DFC (in kms)
Haryana 192
Rajasthan 553
Gujarat 588
Maharashtra 150
Total 1483
2005-06 2021-220
5
10
15
20
25
30
35
40
45
23
40
0.690000000000001
6.2
Western Corridor Container WC
States Traversed
Development Projects:Infrastructure
Eastern DFC (in kms)
Punjab 102
Haryana 82
Uttar Pradesh 1002
Bihar 93
Total 1279
States Traversed
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. and Ludhiana in Punjab. The parks are proposed to be developed on Public Private Partnership mode by creating a sub-SPV for the same.
Cargo constituents: Coal, finished steel, food grains, cement, fertilizer, limestone and general goods
2005-06 2021-220
20
40
60
80
100
120
140
38
116
Projected Traffic (in million tonnes)
New Line Projects 12%
Gauge Conversion 24%
Doubling 25%
Traffic Facility Works 11%
Mega Terminals at Metropolitan
cities 3%
Terminals at State Capitals and important tourists places
1%
Grade Separ-ators/Fly-overs/Bye-pass lines
2%
Freight Terminals
2%
Other Traffic Facility works
3%
Logistic Park 1%
Railway Electri-fication
5%
Metropolitan Projects
6%
Other Measures for Enhancing Capacity 3%
Running Of 25 Tones Axle Load On Iron Ore Routes
3% Running Of 23/24 Coach Length Trains 1%
Capacity Enhancement – Spread of Funds
Total Funds allocated in 11th five year plan: Rs. 77,050 crore
Funds for setting up Logistics park
Rs. 770 crore
Ports:
No. Traffic Capacity
(as of 2006-07)
Projections for 2012: Traffic Capacity
Development Project:NMDP (National Maritime Development Programme):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.
Major Ports 12 465.7 MT 508.6 MT
Minor Ports 187 170 MT 228.31 MT
A few Vital Stats ..
*Some 60% of India’s container traffic is handled by the Jawaharlal Nehru Port Trust in Mumbai
*It has just 9 berths compared to 40 in the main port of Singapore.
*It takes an average of 21 days to clear import cargo in India compared to just 3 in Singapore.
*Cargo handling is projected to grow at 7.7% until 2013-14.
*Only 43 of the 187 minor ports can handle cargo
*Mundra port alone handles 60% of minor port traffic
Allocation Rs. 55,804 crore for port sector.
Rs. 44,535 crore for shipping and inland water transport sectors.
Target To be completed in phases within 2011-12.
No. of Projects
276
Project Covers
•Construction / up gradation of birth,
•Deepening of channels,
•Rail / road connectivity projects,
•Equipment up gradation and modernization scheme,
•Other related schemes for creation of backup facilities.
Major ports 800 MT 1001.8 MT
Minor ports 300 MT 345.19 MT
Infrastructure
Coal 12%
POL & its products
36%Iron Ore
18%Fertilizer and FRM
4%
Container12%
Others 17%
Ports Cargo Constituents and its
Share
Civil Aviation:
(as of 2009)
No. of Airports 449 airports / airstrips
Under AAI 92 airports and28 Civil enclaves at defence airfields
Major Airports 6
Non Metro Airports 35
Domestic Airports 87
International Airports 12 •12.1% growth rate in Internatinal cargo •10.1% growth rate in domestic cargo
Development Project:
MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur.)
Cost: INR 25.8 billion
>> Spread over an area of 4025 Hectares
>> 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.
Major Cargo Constituents•Express Mail•Computers•Chips•Electronic and Optical Equipment•Precision Instruments•Perishable food stuff
Major Airports88%
Non Metro Airports
12%
Share in cargo traffic
Infrastructure
The Cargo hub in Nagpur is built to handle nearly 50% of the total air cargo traffic
all over India
2008-09 2011-12 (E)0
0.20.40.60.8
11.21.41.61.8
2
1.2
1.8
0.600000000000001
0.8
International Domestic
Cargo (in million metric tonnes)
AAI: Airport Authority of India
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.
Developmental Works:• IL&FS is working with Continental Warehousing Corporation Ltd to set up six agri parks across IndiaFTWZ• 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
Current Status:
Major investments on these infrastructures have come from Government agencies like CWC, SWC, CONCOR etc.Current private sector initiatives are small and sporadic.Private sector warehousing are of poor quality, small, fragmented and does not meet infrastructure standards.No quality standards or benchmarks are followed in infrastructure creation
Infrastructure
INTEGRATED TRANSPORT CENTER
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
IL&FS has initiated development of integrated and modern logistics cum transport centers across major locations in the country on PPP format
The centers will lead to integrated development of warehousing, transportation and traffic planning leading to a much better logistics operations
Development of such integrated estates on in Uttaranchal, Chattisgarh, North East and Jharkahnd, in collaboration with respective State Governments
INLAND CONTAINER DEPOTS (ICD)
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
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
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
To create economies of scale, the business plan of ICD is being expanded to include SCM functions like warehousing, C&F (Clearing and Forwarding) and other value added services to give the project shape of “Mega Logistics Park”
Reference: IF&LS
Manufacturing IndustryIndustry Size in 2009 (in INR billion)
Share of Logistics (in INR billion)Cement Industry:Challenge:•Road transportation beyond 200 kms is not economical therefore about 55% of cement is being moved by the railways. There is also the problem of inadequate availability of wagons especially on western railways and southeastern railways.
Opportunity:•Under this scenario, manufacturers are looking for sea routes, this being not only cheap but also reducing the losses in transit.
•Today, 70% of the cement movementworldwide is by sea compared to 1% in India.
Impact on the
Logistics Sector
Cement Steel Food and Beverages
FMCG Textiles Auto 0%
2%
4%
6%
8%
10%
12%
14%
16% 15%
6%5%
4%3% 3%
Cost of Logistics to Total Sales
Steel Textiles Auto Cement FMCG F&B0
500
1000
1500
2000
2500
3000
24122200
1480
605 590 489
Steel Textiles Auto Cement FMCG F&B0
20
40
60
80
100
120
140
160144.72
66
44.4
90.75
23.6 24.45
Country Logistics Cost / GDP
China 13% to 15%
US, UK 9%
Europe 10%
Japan 11.4%
India (45% of GDP) 13% to 14%
Current GDP (in INR trillion)
GDP in 2029 with a growth rate of 7% (in INR trillion)
Share of Logistics (11% of 45% of GDP) (in INR trillion)
Share of 3PL and 4PL with a 30% market Share (in INR trillion)
Share of 3PL and 4PL with 40% market share (in INR trillion)
55 212.83 10.53 3.16 4.21
Comparison amongst different countries
Country Logistics activities performed by 3PL / Logistics activities
China, India <10%
US, UK 57%
Europe 30% to 40%
Japan 80%
Estimated Size of 3PL and 4PL in 20 Years
That’s about 40 times jump in market size in a span of 20 years from the current
market size of INR 78 billion
Infrastructure Bottlenecks
Emerging
HighLow
Developed
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’).”
Supplier’sSupplier Suppliers
Distributers
Customers/ End Users
Design Market
Acquire Convert Distribute
Mngmt Control
Manufacturing Unit
Supply Chain Model3PL 3PL
3PL3PL
Why 3PL ?
Operational cost reduction
Reduced cycle time
More specialized logistics expertise
Improve on time delivery
Enhance geographic reach
Flexibility in operations
Improve focus on core activities
Improve return on assets
Diverting capital investment
Access/ Expansion to unfamiliar market
Higher Profitability
Increased Sales and Market Share
Enhanced Customer Service
For Operation Efficiency For Business Growth
• Inability to respond to changing needs
• Lack of grasp of business goals
• Unreliable promises from providers
• Concerns about capability of providers
• Fear of leakage of important information
• Non compatibility of IT systems
• Difficulty to manage and change provider
• Fear of loss of control
• Lack of confidence in provider
• Poor infrastructure of providers company
Why not?
4PL:
It acts as single interface between the client and multiple logistics service providers.
All aspects of the client’s supply chain are managed by the 4PL organisation.
The 4PL organization is often separate entity established as a joint venture or long term contractbetween a primarily client and one or more partners.
It is also possible for a major 3PL provider to form a 4PL organisation within existing structure.
Client
4PL
3PL
3PL
3PL
Key Characteristics:
Hybrid organisation formed from a number of different entities
Typically established as a JV or long term contract
Responsible for management and operation of entiresupply chain
Continuous flow of information between partners and4PL organisation
SWOT Analysis of Logistics Sector:
STRENGTHS Extremely critical for manufacturing
industry and agri commodity industry No dearth in volumes Critical component in operational efficiency Contributes heavily towards customer
satisfaction
WEAKNESS High cost – low margin business Large number of unorganized players Low IT penetration Highly fragmented High Capital expenditure
OPPORTUNITIES Implementation of GST from 1st April 2011 Implementation of Golden quadrilateral
and NS-EW corridors. Heavy investments to improve
infrastructure through developmental projects like Mihan, delhi-mumbai industrial corridor, Dedicated freight corridor and National Maritime Development Projects.
THREATS Increase in fuel costs Government Policy Taxation
Challenges:
Solution / Opportunity:Implies that a truckload loss of Goods is always round the corner. Organized players can cash in by providing the requisite level of safety and insurance cover for goods.
Unfair CompetitionUnorganized players get away without paying taxesDon’t follow the operating norms stipulated in the motor vehicle act such as quality of drivers, vehicles, volume and weight restriction.
Diseconomies of scaleDifferential sales tax structure in different statesApart from non-uniform tax structure, LSP’s (Logistics Service Provider) have to pay other kinds of taxes like octrois.Governments failure in implementation of VAT since 1st of April 2005
Solution / Opportunity:Proposal for implementation of GST. With uniform taxation across all states companies could focus on supply chain efficiency rather than Tax avoidance optimization.
Face multiple check post
This delays the process of deliveryCompliance with varying documentation requirement of different states is certainly a difficulty.
Solution / Opportunity:Integration of IT into the process like EDI could greatly speed up the whole process and bring in the required efficiency.
Bribery and Police harassment$5 billion paid by truckers annually
Solution / Opportunity:The scenario could grossly change with greater penetration of Organized players.
Low IT penetrationLack of communication infrastructureLack of visibilityLack of real time tracking abilityThis leads to a lot of uncertainty and lack of transparency in terms of cost structure and service delivery
Solution / Opportunity:Penetration of 3PL players and high level of investments into technology like GPRS would change the scenario.
Highly Fragmented Sector
LSP’s stick to their basic services. They don’t provide value added services like packaging / labeling, order processing, distribution, customer support etc.
Solution / Opportunity:Value Added Services provides a great opportunity to increase the margins.
Listed Shipping Companies - Large
Essar Shipping
GE Shipping Co
Great Offshore
Mercator Lines
S C I
Varun Ship. Co.
Listed Shipping Companies – Medium
& Small
Chowgule Steam
Garware Offshore
SEAMEC Ltd
Shreyas Shipping
SKS Logistics
Road Transport Companies Associated Road CRC Carrier Patel Integrated
ABC India Autoriders Intl. Delhi Assam Rdwy Peirce Leslie(I)
Adani Agri Log. Balurghat Tech Premier Road Car
Agarwal Indl. Broekman Logisti DLF Retail Reliance Logis.
Agrocargo Trans. Bulk Cem.Corpn. E I T A India Roadways India
Allcargo Global Central Province Frontline Corp. SER Inds.
Alltrans Logistc Chart.Logistics Inland Vikash Southern Roadwys
Alltrans Port Coastal Roadways Inter State Oil Sri Venkatesa Tr
Arshiya Intl. Kausar India T N St Trans Coi
Arvind Roadlines Containerway Int T N St Trans Kum
Assam Beng.Carr Wilson Sandhu Vins Overseas Transport Corp.
Courier Corporate Courier
Orbit Multimedia
Blue Dart Exp. Gati Skypak Serv. Sp.
Chokhani Global Killick Air CourElbee Express
Elbee Services
mundra port
Container Corpn.
Konkan Rly.Corpn
gateway dis
Delhi Metro Rail
Some of the major logistics companies ..
Merci Beaucoup ..
Source and References
Mumbai-Pune Expressway Ganga Expressway
Taj Expressway Kundli-Manesar-Palwal Expressway(KMP)
Delhi-Noida Direct Flyway Eastern Peripheral Expressway
Chennai-Bangalore Expressway Pathankot-Jalandhar-Ajmer Expressway
Jaipur-Kishangarh Expressway Bangalore-Mysore Expressway
Durgapur Expressway Hosur Road Expressway
Belghoria Expressway PV Narsimha Rao Expressway to HIAL
Panipat Elevated Expressway Chennai Elevated Expressway
Shimla-Chandigarh Expressway Mumbai eastern Freeway that starts from CST
National Expressway
Cost estimation for a 100 km 4 lane expressway - Rs. 1784Cost estimation for a 100 km 6 lane expressway - Rs. 2548
Funding options including PPP mode, cost sharing by states/ Centre, Commercial utilization of land within/beyond ROW etc.
At present expressway handles about 30,000 PCUs and is designed to handle up to 10,00,000 PCUs.
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
• Lucknow-Gorakhpur expressway
• Agra-Kanpur-Lucknow expressway
• Farrukhabad-Kotdwar expressway.
The five proposed expressways will have a combined length of around 1,400km.
Back
PSU: Passenger Carrying Units
Sr.No. Name of the State /Union Territory Length (Kms)
1 Andhra Pradesh 4,537
2 Arunachal Pradesh 1992
3 Assam 2836
4 Bihar 3642
5 Chandigarh 24
6 Chhatisgarh 2184
7 Delhi 72
8 Goa 269
9 Gujarat 3245
10 Haryana 1512
11 Himachal Pradesh 1409
12 Jammu & Kashmir 1245
13 Jharkhand 1805
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
22 Nagaland 494
23 Orissa 3704
24 Pondicherry 53
25 Punjab 1557
26 Rajasthan 5585
27 Sikkim 62
28 Tamil Nadu 4832
29 Tripura 400
30 Uttar Pradesh 5874
31 Uttaranchal 1991
32 West Bengal 2524
33 Andaman & Nicobar 300
Total 70,548
National Highways
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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%
Cargo handled by the Major Ports in tonnes of '000
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Sector Employment Interms of contribution
Agriculture 60.00% 27.00%
Service 28.00% 55.00%
Industrial 12.00% 18.00%
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GDP and industry contribution
Major items of exports:
* Cotton yarn, fabrics made ups etc.
* drugs, pharmaceuticals and fine chemicals
* manufactures of Metals
* Machinery and Instruments
* Man made Yarn, Fabrics Made ups
* Transport equipment
* Primary and Semi finished iron and steel
* RMG cotton including accessories
* Plastic and linoleum products
* Inorganic/organic/agro chemicals.
Major Items of imports:
* Gold,
* Cashew Nuts
* Inorganic Chemicals,
* Wood & Wood Products,
* Metalifers ors & Metal Scrap,
* Iron & Steel,
* Cotton raw. Comb/uncombed/waste,
* Coal, coke & Briquettes etc.
* Pulp and waste paper,
* Non ferrous metals,
* Organic chemicals,
* Machinery except elect. & electronic,
* Fertilizer crude,
* Electronic goods,
* Pearls precious semiprecious stones.
Major Exports Industries
Petroleum products
Textile goods
Gems and jewellary
Engineering goods
Chemicals
Leather
EXIM
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Major agricultural products include •Rice•Wheat•Oilseed •Cotton •Tea •Potatoes •Jute sugarcane
Poultry and diary products •Cattle •Water buffalo •Sheep •Goats •Poultry •Fish
Catering to Agricultural Industry
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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,
• Bangalore-Tamil Nadu Region,
• Gujarat Region,
• ChhotaNagpur Region,
• Vishakhapatnam-Guntur Region,
• Gurgaon-Delhi-Meerut Region,
• Kollam-Thiruvantapuram Region.
Major Industrial belts
.. Ambala-Amritsar
.. Saharanpur-Muzzaffarnagar
.. Indorer-Dewas-Ujjaini
.. Jaipur-Ajmer
.. Kolhapur-South Kannada
.. Northern-Malabar
.. Middle Malabar
.. Adilabad-Nizambad
.. Allahabad-Varanasi-Mirzapur
.. Bhojpur-Mungar
.. Durg-Raipur
.. Bilaspur-Korba
.. Brahmaputra valley Back