Download - Logistics India 24-05-2011
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INDIA
LOGISITCS TRANSPORT
SYSTEMS AND
INFRASTRUCTURE
by Arvind Autar
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Global Value Chains
Global Value Chains
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Geography Of India
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Indias Advantage
One of the fastest growing economies of the world.
One quarterof the worlds youth live in India.
54% of the Indian population is less than 25 years of age.
2ndlargest English speaking workforce.
Focus on Higher Education.
Second largest pool of technically qualified knowledge workers.
IPRlaws in place.
There are more IT engineers in Bangalore (150,000) than inSilicon Valley (120,000).
GE, Microsoft, IBM, Cisco, Intel, GM, Astra Zeneca, Motorola etc. , All
have theirR&D Centres here.
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Indias Advantage
Strong GDPgrowth
Economic liberalisation and relaxed FDInorms
Growth in Retail, Agri, Pharma, Automobile, FMCG, Textile sectors.
Opportunity to reduce logistics cost.
Infrastructure development.
Investment in logistics by Companies.
Change in tax laws VAT/CST. Industry moving toward outsourcing logistics
Moving toward shift to organised players
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23%51%Service17%28%Manufacturing60%21%Agriculture
Work Force
Employment
Contribution to
GDP
Indias Economy& Logistics Industry
Indias GDPis USD 750 billion and would touch USD 1.4 trillion in the next twodecades (as per Goldman Sach).
Currently it is 10th largest economy
Logistics Spend is currently13% compared to 8.7% of US.Enough Scope to reduce the Logistics Spend which would require growth of 3PLsand 4PLs andimprovement in Infrastructure
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35%
25%
14%
11%
9%
6%
0% 10% 20% 30% 40%
Transportation
Inventories
Losses
Packaging
Handling &
Warehousing
Customers' Shopping
Elements ofLogistics cost
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Road etwork Current Status
Y Road etwork has grown 8 fold(1950 - 2004) to 3.31 Million Kms.
Y ational Highways form only 2% of thenetwork, but carry 40% of the totaltraffic
Y Only 2-3 % of H& SH are 4 lane,15% are single lane
Y 85% of passenger and 70% of FreightMoves through Road.
Y Commercial vehicles ply on an average300 km per day, compared to 600-700km in developed nations.
I DI RO D ORK
ype ofRoad ength in KMs
ational Highways 65569
State Highways 131899
Major DistrictR
oads 467763illages and OtherRoad 2650000
otal 3315231
source: www.nhai.org
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Y National HighwayDevelopmentPro ect(NHDP), US $13 billion, 1998-2012 .
Y Four/six laning of the highwayconnecting Bombay, Delhi, Calcutta and
Chennai (Golden Quadrilateral)
Y 5846 KMS
North-South and East-West corridorsY (NS-EW), Kashmir to Kanyakumari and
Silchar to Porbandar.
Y 7300 KMS
Y Target Completion date completed
December07
National Highways Plan & Current Status
RoadNetwork Current Status
Delhi
Kolkatta
Chennai
Mumbai
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Y Out of 65,569 Km ofNational Highways,about 25,000 Km are under severe straindue to High volume of traffic.
Y Slow speeds, traffic congestion, high wearand tear of vehicles are some of theproblems
Y Estimated loss due to lack of an efficienthighway system $314000 cr./Year.
Y Once completed ,the Golden Quadrilateralwill result in a saving of$125000cr./Year( as per world bank report)
Estimated Savings On completion
RoadNetwork Current Status contd..
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Lost share to Road in freight movement
Rail Traffic Expected to touch 624tonnes up from 473.5 million in 2000-10
68% Revenue ofRailway comes fromFreight
89% of its freight is commodities likecoal, fertilizers, cement, petroleum
products, food grain, finished steel, ironore and raw material to steel plants
High DensityNetwork (HDN) connectingBombay, Delhi, Calcutta and Chennai Carries 65% of the total rail freight
traffic and 55% of passenger traffic
Container movement is done throughCONCOR(1.7Mn TEU)
Till recentlyICD was monopoly ofCONCOR. Recently has beenprivatized
Railways Largest Network in Asia
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Sea Ports Current Status
RVast coastline of 7,517 kms
R12 ma or ports and 184 other ports(minor and intermediate)
R95% of Foreign trade by volume &75% by value.
RTonnage handled increased 16 fold(in last 50 years) to 453 million Tonnes
Port- Hinterland connectivity- a ma or issue(Caluta economic stagnation )
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Airports Current Status
Tonnage handled increased 16 fold
(in last 50 years)
255, 665 Tons ofDomestic&616,317 Tons ofInternational cargohandled in 2003-04
For Cargo, India follows Open SkyPolicy
The four metro Airports handle 70% ofthe Air cargo Traffic
Privatization of Airports
Most of the domestic air cargomovement takes place in passengerplanes
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