logistics india 24-05-2011

8/6/2019 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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THANK YOU

logistics india 24-05-2011

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