Analysis of Indian Logistics

Sector

Manoj Bharadwaj. B
Fortress Financial Services Ltd.
Mumbai

Overview of the Logistics Sector

Flow of the
Presentation
Structure of the Logistics Sector

Major Demand and Growth Drivers of

Indian Logistics

Comparison of Indian Logistics Sector

with different countries

3PL and 4PL

SWOT Analysis

Challenges and Opportunities

Overview of the Logistics Sector:

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
Total Market Size of Logistics is estimated to be $ 95 billion

Market Structure

Level of Competitiveness
Unorganized Player:
Owner with less than or equal to 5
trucks.
They contribute about 80% of the
revenue.

Organized
10%

10 to 100
crore
2%
1 to 10 crore
9%

more than
100 crore
0.3%

Unorganized
90%

0.3 to 1 crore
89%

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
LSPs have to go beyond
rendering just the basic
services.
LSP: Logistic Service Provider

Share amongst different segments of Logistics sector:

Cargo Share amongst different
Segments

Share in Revenue Generation amongst

different Segments

Civil Aviation (Negligible)

Civil
Aviation
1%

Railways
24%
Roads
55%

Major Ports
15%

Railways
13%
Warehousin
g
37%
Roadways
47%

Minor Ports
6%

Ports
2%

Segments

Annual Turnover in
2008-09 (INR
billion)

Railways

534

Roadways

2086

Ports

91

Warehousing

1,500

Civil Aviation

43

Where do we stand Globally ..

v 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.
v International freight is completely
dominated by Sea Port Segment.

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

Projected
Barriers to
Growth Rate
entry
Dominance of Players

Capex
Requirement

Nature of Competition

Unorganized

Low

Local

High

Organized

High

National

Medium

Unorganized

High

Regional to National

12%

Low

Unorganized

Low

Local

15-20%

Medium

Organized

High

National

Low

Organized /
Unorganized

High

Local

Logistics Segment

Growth Drivers

Courier

Domestic growth

20-25%

Low

XPS

FMCG, Retail, Auto & Auto Ancillaries

20-25%

Warehousing

Agriculture commodities,
Manufacturing activity

40%

Trucking

Agriculture commodities,
Manufacturing activity

Container

EXIM and domestic trade

Inland Container Depots

/ Container Freight
Stations

EXIM

15-20%

Characteristics of Logistics Sector

vHigh costs of operations
vLow margins
vShortage of talent
vInfrastructural bottlenecks
vDemand from clients for investing in technology and providing
one-stop solutions to all their needs.
vConsolidation through acquisitions, mergers and alliances.

Value Driver:
Competitive Pricing
Safety
Customer Satisfaction
Wide Geographic Reach
Operational Efficiency
Time Factor
Value added services

Major Cost Elements

Customer
Shopping
6%
Losses
14%

Packaging
11%

Transportation
35%

Loses of 14% translates into

roughly INR 290 billion for
various industries primarily
due to the Unorganized
section

Inventory
Handling and
Warehousing
34%

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:

Growth Driver

Logistics

Demand Driver

Government Policies,
Plans and Taxation

Enhances the
market reach of
the industry

Agricultural industry

Growth Driver

Manufacturing Industry

Infrastructure

Roads
Implementation
of GST

Textiles

Auto

Accounts for
about 50% of the
total logistics
market

Railways
Food &
Beverages

Cement

Ports
Steel

Favorable policies
drives the growth of
logistics sector

FMCG
Civil
Aviation
Warehouses

FMCG, Pharma and

Food processing
apart from agro
products have
substantial
requirement

Government Plans

11th Five Year Plan (2007-12) (Roads, Railways, Ports and Civil Aviation)
8% of Indias GDP
in 2009

(INR billion)

Slightly over 3 times

jump from 10th 5YP

4,457
9.77%
56.3%
24.08%

10th

10th

Railways

606

2,510

9.84%

10th

Roadways

621

1,073

> 4 times

54

438

1.72 times

Private
Investments

10th

Shipping & Ports

Civil Aviation
129

435
3.4 times

8 times

368

867

934
Gross Budgetary Support (GBS)
Internal and Extra Budgetary Resource (IEBR)

Railways - 2,510 INR billion

Roadways - 1,941 INR billion

Shipping & Ports 807 INR billion

Civil Aviation - 1,370 INR billion

GBS
1%

GBS
5%
GBS
34%
IEBR
66%

GBS
37%

Private
Investmen
ts
45%
IEBR
18%

Private
Investme
nts
46%

IEBR
31%
IEBR
49%

Private
Investments
68%

Government Policies and Taxation

Rationalization of tax:
Goods and Services Tax (GST) Proposed to be implemented by April 2010.

Impact
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

The introduction of GST in India would mean that

manufactures will now base their logistics decisions on
operational efficiency instead of tax optimization.

Hopes to increase the tax base

Will enable manufacturers and 3PLs to set-up and

position their warehouses and distribution channels
based on the considerations of time, cost and logic.

Aims to remove the disparity in taxation or

differential treatment to manufacturing and service
sector.

Manufacturers will now be encouraged to outsource

their logistics and supply chain operations.

Other Tax Reliefs

vThe 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.
vThe 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.
vDeductions under section 80-IA meant for infrastructure industry, which has been extended to railways.

Infrastructure
Roadways:
Type of Road

Length (in km)

Expressways

200

National Highways (NH)

Percentage
---

70,548

A few Vital Stats ..

Post-Liberalization
Average Growth of NH
during each 5 YP is
24.08%

70% of freight taken by roads

NH carries about 40% of road traffic

2.12%
Avg. truck speed in NH 20 to 30 km / hr

State Highways (SH)

Major District Roads
(MDR)
Rural and Other Roads

1,31,699
4,67,763
26,50,000

3.96%
14.08%
79.81%

SH and MDR carries 40% of road traffic

Number of kilometers
added postliberalization 39,901
km.

Traffic on roads is growing by 7% - 10%

Vehicle population 12% growth

Total Length

33,20,210
Sale of Commercial Vehicles (in lakhs)

(as of 2009)

Road Freight Valuation (INR billion)

2500
2086

Post liberalization
growth 9.1% and
growth from 2000 is
10.6%

2000

6
5

4.6

3.5

3
840

1000

Growth in
Commercial
vehicles from
2002-03 is 12.2%

610
500
0
1995

2000

2005

3.8

3.1

1430

1500

4.9

2.6
1.9

1
0

2009

(Source till 2005: KPMG)

(Source : SIAM)

Projects undertaken by NHAI:

Infrastructure
S. No.

Name of Project

1.

Completion of GQ and EW-NS corridors

(Phase I and II)
4 -laning of 11,113 km under NHDP Phase-III

2.
3.

Likely Cost ( INR billion)

2-laning with paved shoulders of 20,000 km

of National Highways under NHDP Phase-IV
6-laning of selected stretches of National
Highways under NHDP Phase-V
Development of 1000 km of expressways
under NHDP Phase-VI
Construction of ring roads, flyovers and
bypasses on selected stretches under NHDP
Phase-VII.
Total

4.
5.
6.

Development Projects:
Completion Dates

524

December 2009

724

December 2013

278

---

412

December 2012

166

December 2015

166

December 2015

2,272

Current Status of Projects:

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 & EastWest

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

(as of Dec 2009)

Out of a total length of 6283 kms

under implementation, 4/6
laning has been completed for a
partial length of 2130 kms.

Infrastructure
Development Projects:

Major Industrial Regions

Delhi Mumbai Industrial Corridor

Delhi-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.

Project Cost estimation: >> INR 2.5 trillion

This project incorporates

vNine Mega Industrial zones of about 200-250 sq. km.,
vHigh speed freight line,
vThree ports, and
vSix air ports;
vSix-lane intersection-free expressway connecting Delhi and Mumbai
v4000 MW power plant.

Plan for Phase I: 3,530 km (Report from Yahoo News

9th Dec 09)
Estimated Cost for Phase I: Rs. 20,000 crore.

Several industrial estates and clusters, industrial hubs, with top-ofthe-line infrastructure would be developed along this corridor to
attract more foreign investment.

Lanes: 6 to 8 lanes

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.

National Expressway:
Target: 15,766 km.
Phasing of expressway: 2012, 2017, 2022

11 stretches and 12 states identified

Infrastructure

Railways Cargo Constituents and its

share

Railways:

Iron &
Steel
3%

Passenger traffic / day

Freight traffic / day

18 million

Fertilizers
5%

2 million tonnes

Railway coverage

63,465 km

Freights wagons

2,00,000

Coaches

50,000

Locomotives

8,000

Others
14%
Coal
43%

Foodgrains
6%

POL
5%

Cement
9%
Ore to
Steel
plants
8%

Ore Export
7%

(as of 2009)

Freight Earnings (INR billion)

Cargo (in million metric tonnes)
600

534

Growth of 14.75%

473

500
416
363

400
308
300
200
100
0

Growth of 8.9%

900
800
700
600
500
400
300
200
100
0

602

667

726

785

848

Infrastructure

Development Projects:

Dedicated Freight Corridor Rs. 40,000 crore

States Traversed
Western DFC (in kms)

Western
Corridor 1483 km JNPT in Mumbai to Dadri in U.P

45
40
35
30
25

Rajasthan

553

Gujarat

588

Maharashtra

150

Total

1483

Proposed to set up Logistics Parks at

2.
3.
4.
5.
6.

40

192

Logistics Park:

1.

Projected Traffic (in million tonnes)

Haryana

Mumbai area, particularly in the vicinity of Kalyan-Ulhasnagar or VashiBelapur in Navi Mumbai.

Vapi in southern Gujarat
Ahmedabad area in Gujarat,
Gandhidham in the Kutch region of Gujarat
Jaipur area in Rajasthan,
NCR of Delhi.

23
These parks are proposed to be developed on Public Private Partnership mode by
creating a sub-SPV for the same.

20
15
10
5

6.2

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

0.69

0
2005-06
Western Corridor

Cargo Constituents:

2021-22
Container WC

POL, Fertilizers, Food grains, Salt, Coal, Iron & Steel and Cement.

Infrastructure

Development Projects:

States Traversed
Eastern DFC (in kms)
Punjab

102

Haryana

82

Uttar Pradesh

1002

Bihar

93

Total

1279

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.

Projected Traffic (in million tonnes)

140
116

120

The parks are proposed to be developed on Public Private

Partnership mode by creating a sub-SPV for the same.

100
80

Cargo constituents:

60

Coal, finished steel, food grains, cement, fertilizer,

limestone and general goods

40

38

20
0
2005-06

2021-22

Capacity Enhancement Spread of Funds

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%

Metropolitan Projects
6%

Funds for setting

up Logistics park
Rs. 770 crore

New Line Projects

12%
Other Railway Electrification
4%
Traffic
Facility
works
Logistic Park
3%
1%
Freight Terminals
2%
Grade
Separators/Flyovers/Byepass lines
2%

Gauge Conversion
24%

Terminals at State Capitals

and important tourists
places
Traffic Facility Works
1%
11%
Mega Terminals at
Metropolitan cities
2%

Doubling
25%

Total Funds allocated in 11th five

year plan: Rs. 77,050 crore

Infrastructure

A few Vital Stats ..

*Some 60% of Indias container traffic is handled by the
Jawaharlal Nehru Port Trust in Mumbai

Ports:
No.

Traffic

Capacity

Major Ports

12

465.7 MT

508.6 MT

Minor Ports

187

170 MT

228.31 MT
(as of 2006-07)

Projections for 2012:

*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

Traffic

Capacity

Major ports

800 MT

1001.8 MT

Minor ports

300 MT

345.19 MT

Others
17%

Ports Cargo
Constituents and its
Share

Coal
13%

Container
12%
POL & its
products
36%

Development Project:
Fertilizer
Iron Ore
and
FRM
18%
NMDP (National Maritime Development Programme):
4%
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.
Allocation

Rs. 55,804 crore for port sector.

Project
Covers

Construction / up gradation of birth,

Rs. 44,535 crore for shipping and inland

water transport sectors.

Deepening of channels,

Target

To be completed in phases within 201112.

Rail / road connectivity projects,

No. of
Projects

276

Equipment up gradation and modernization scheme,

Other related schemes for creation of backup facilities.

Infrastructure

Cargo (in million metric tonnes)

Civil Aviation:
No. of Airports

449 airports / airstrips

Under AAI

92 airports and
28 Civil enclaves at defence airfields

Major Airports

Non Metro Airports

35

Domestic Airports

87

International Airports

12

AAI: Airport Authority of India

2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0

1.8

1.2
0.8
0.6

Share in cargo traffic

2008-09
International

(as of 2009)

Major Cargo Constituents

Express Mail
Computers
Chips
Electronic and Optical
Equipment
Precision Instruments
Perishable food stuff

2011-12 (E)
Domestic

12.1% growth rate in Internatinal

cargo
10.1% growth rate in domestic
cargo

Non
Metro
Airport
s
12%

Major
Airport
s
88%

Development Project:
MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur.)

The Cargo hub in Nagpur is

built to handle nearly 50%
of the total air cargo traffic
all over India

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.

Infrastructure
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.
Current Status:
vMajor investments on these infrastructures have come from Government agencies like CWC, SWC, CONCOR etc.
vCurrent private sector initiatives are small and sporadic.
vPrivate sector warehousing are of poor quality, small, fragmented and does not meet infrastructure standards.
vNo quality standards or benchmarks are followed in infrastructure creation
Developmental Works:

IL&FS is working with Continental Warehousing Corporation Ltd to set up six agri parks across India
FTWZ

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

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 and
other value added services to give the project shape of Mega Logistics Park

INTEGRATED TRANSPORT CENTER

v 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
v IL&FS has initiated development of integrated and modern logistics cum transport centers across major locations in the country
on PPP format
v The centers will lead to integrated development of warehousing, transportation and traffic planning leading to a much better
logistics operations
v Development of such integrated estates on in Uttaranchal, Chattisgarh, North East and Jharkahnd, in collaboration with
respective State Governments

Reference: IF&LS

Manufacturing Industry
16%
14%
12%
10%
8%
6%
4%
2%
0%

15%

Industry Size in 2009 (in INR billion)

3000

Cost of Logistics to Total Sales

2500

2412

2200

2000
6%

1480

1500
5%

4%

3%

3%

1000

605

590

489

Cement

FMCG

F&B

500
0
Steel

Textiles

Auto

Impact
on the
Logistics
Sector
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 movement
worldwide is by sea compared to 1% in India.

Share of Logistics (in INR billion)

160

145

140
120
91

100
80

66

60

44

40

24

24

FMCG

F&B

20
0
Steel

Textiles

Auto

Cement

Comparison amongst different countries

Developed
Infrastructure
Bottlenecks

Emerging
Low

High

Country

Logistics Cost / GDP

China

13% to 15%

US, UK

9%

Europe

10%

Japan

11.4%

India (45% of GDP)

13% to 14%

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

Current
GDP (in INR
trillion)

GDP in 2029
with a
growth rate
of 7% (in
INR trillion)

55

212.83

Share of
Logistics (11%
of 45% of GDP)
(in INR trillion)

10.53

Share of 3PL
and 4PL with a
30% market
Share (in INR
trillion)

3.16

Share of 3PL
and 4PL with
40% market
share (in INR
trillion)

4.21

Thats about 40 times jump

in market size in a span of
20 years from the current
market size of INR 78 billion

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).

Supply Chain Model

3PL

3PL

Manufacturing Unit

Design

Suppliers
Supplier

Suppliers

Acquire

Mngmt

3PL

Market

Convert

Distribute

Distributers

Control

3PL

Customers
/ End
Users

Why 3PL ?
For Operation Efficiency
Operational cost reduction
Reduced cycle time
More specialized logistics expertise
Improve on time delivery
Enhance geographic reach
Flexibility in operations

For Business Growth

vImprove focus on core activities
vImprove return on assets
vDiverting capital investment
vAccess/ Expansion to unfamiliar market
vHigher Profitability
vIncreased Sales and Market Share
vEnhanced Customer Service

Why not?
Inability to respond to changing needs

Non compatibility of IT systems

Lack of grasp of business goals

Difficulty to manage and change provider

Unreliable promises from providers

Fear of loss of control

Concerns about capability of providers

Lack of confidence in provider

Fear of leakage of important information

Poor infrastructure of providers company

4PL:
v It acts as single interface between the client and multiple logistics service providers.
v

All aspects of the clients supply chain are managed by the 4PL organisation.

v The 4PL organization is often separate entity established as a joint venture or long term contract
between a primarily client and one or more partners.
v It is also possible for a major 3PL provider to form a 4PL organisation within existing structure.

Key Characteristics:
Client

3PL

Hybrid organisation formed from a number of

different entities
Typically established as a JV or long term contract

3PL
4PL

3PL

Responsible for management and operation of entire

supply chain
Continuous flow of information between partners and
4PL 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
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.

WEAKNESS
High cost low margin business
Large number of unorganized players
Low IT penetration
Highly fragmented
High Capital expenditure

THREATS
v Increase in fuel costs
v Government Policy
v Taxation

Challenges:
Unfair Competition
Unorganized players get away without paying taxes
Dont follow the operating norms stipulated in the motor vehicle act such as
quality of drivers, vehicles, volume and weight restriction.

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.

Diseconomies of scale
Differential sales tax structure in different states
Apart from non-uniform tax structure, LSPs (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 delivery
Compliance with varying documentation requirement of different states is
certainly a difficulty.
Low IT penetration
Lack of communication infrastructure
Lack of visibility
Lack of real time tracking ability
This leads to a lot of uncertainty and lack of transparency in terms of cost
structure and service delivery
Highly Fragmented Sector
LSPs stick to their basic services. They dont provide value added services
like packaging / labeling, order processing, distribution, customer support etc.

Bribery and Police harassment

$5 billion paid by truckers annually

Solution / Opportunity:
Integration of IT into the process like EDI could
greatly speed up the whole process and bring in the
required efficiency.

Solution / Opportunity:
Penetration of 3PL players and high level of
investments into technology like GPRS would
change the scenario.

Solution / Opportunity:
Value Added Services provides a great
opportunity to increase the margins.

Solution / Opportunity:
The scenario could grossly change with greater
penetration of Organized players.

Some of the major logistics companies ..

Listed Shipping
Companies - Large
Essar Shipping

Road Transport
Companies

Associated Road

CRC Carrier

Patel Integrated

ABC India

Autoriders Intl.

Delhi Assam Rdwy

Peirce Leslie(I)

Adani Agri Log.

Balurghat Tech

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

Kausar India

T N St Trans Coi

GE Shipping Co
Premier Road Car

Great Offshore
Mercator Lines
SCI
Varun Ship. Co.

Listed Shipping
Companies Medium
& Small

Arshiya Intl.
Chowgule Steam
Garware Offshore

Arvind Roadlines

Containerway Int

Assam Beng.Carr

Wilson Sandhu

T N St Trans Kum
Vins Overseas

Transport Corp.

SEAMEC Ltd
Shreyas Shipping

Courier

Corporate Courier

Container
Corpn.

Orbit Multimedia
SKS Logistics
Blue Dart Exp.

Gati

Skypak Serv. Sp.

mundra port
Delhi Metro
Rail

Elbee Express
Chokhani Global
Elbee Services

Killick Air Cour

gateway dis

Konkan
Rly.Corpn

Source and References

MERCI
BEAUCOUP ..

National Expressway
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

Cost estimation for a 100 km 4 lane expressway - Rs.

1784
Cost 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.

PSU: Passenger Carrying Units

Panipat Elevated Expressway

Chennai Elevated Expressway

Shimla-Chandigarh Expressway

Mumbai eastern Freeway that starts from CST

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

The five proposed expressways will have a

combined length of around 1,400km.

Lucknow-Gorakhpur expressway
Agra-Kanpur-Lucknow expressway
Farrukhabad-Kotdwar expressway.

Back

National Highways

Sr.No.

Name of the State /Union Territory Length (Kms)

Andhra Pradesh

4,537

22

Nagaland

Arunachal Pradesh

1992

23

Orissa

Assam

2836

24

Pondicherry

Bihar

3642

25

Punjab

1557

Chandigarh

24

26

Rajasthan

5585

Chhatisgarh

2184

27

Sikkim

Delhi

72

28

Tamil Nadu

Goa

269

29

Tripura

Gujarat

3245

30

Uttar Pradesh

5874

10

Haryana

1512

31

Uttaranchal

1991

11

Himachal Pradesh

1409

32

West Bengal

2524

12

Jammu & Kashmir

1245

33

Andaman & Nicobar

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

Total

494
3704
53

62
4832
400

300
70,548

Back

Cargo handled by the Major Ports in tonnes of '000

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%

Back

GDP and industry contribution

Sector

Employment

Interms of contribution

Agriculture

60.00%

27.00%

Service

28.00%

55.00%

Industrial

12.00%

18.00%

Back

EXIM

Major Items of imports:

* Gold,
* Cashew Nuts
Major items of exports:

Major Exports
Industries

* Inorganic Chemicals,

* Cotton yarn, fabrics made ups etc.

* Wood & Wood Products,

* drugs, pharmaceuticals and fine chemicals

* Metalifers ors & Metal Scrap,

* manufactures of Metals

* Iron & Steel,

* Machinery and Instruments

* Cotton raw. Comb/uncombed/waste,

* Man made Yarn, Fabrics Made ups

* Coal, coke & Briquettes etc.

* Transport equipment

* Pulp and waste paper,

* Primary and Semi finished iron and steel

* Non ferrous metals,

* RMG cotton including accessories

* Organic chemicals,

* Plastic and linoleum products

* Machinery except elect. & electronic,

* Inorganic/organic/agro chemicals.

* Fertilizer crude,

Petroleum products
Textile goods
Gems and jewellary
Engineering goods
Chemicals
Leather

* Electronic goods,
* Pearls precious semiprecious stones.

Back

Catering to Agricultural Industry

Major agricultural products include

Rice
Wheat
Oilseed
Cotton
Tea
Potatoes
Jute sugarcane

Poultry and diary products

Cattle
Water buffalo
Sheep
Goats
Poultry
Fish

Back

Major Industries
Textiles

Cement

Chemicals

Mining

Food processing

Petroleum

Steel

Machinery

Transportation equipment

Software

Industrial Regions
Mumbai-Pune Region,
Hugli Region,
Major Industrial belts

.. Middle Malabar

.. Ambala-Amritsar

.. Adilabad-Nizambad

.. Saharanpur-Muzzaffarnagar

.. Allahabad-Varanasi-Mirzapur

ChhotaNagpur Region,

.. Indorer-Dewas-Ujjaini

.. Bhojpur-Mungar

Vishakhapatnam-Guntur Region,

.. Jaipur-Ajmer

.. Durg-Raipur

Gurgaon-Delhi-Meerut Region,

.. Kolhapur-South Kannada

.. Bilaspur-Korba

.. Northern-Malabar

.. Brahmaputra valley

Bangalore-Tamil Nadu Region,

Gujarat Region,

Kollam-Thiruvantapuram Region.

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