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Project Planning for

Time & Cost Overruns in Indian Road Projects


Time & Cost Overruns in Indian Road Projects Percentage Road Projects
60 50 40 30 20 10 0 0-25 25-50 50-75 75-100 >100

Time Cost

Percenatge Overruns
Source: World Bank Chart

The main reasons for delays in overall project execution & overruns are (a) Land acquisition & clearances delays (b) Planning inefficiencies (c) Challenging logistics as the projects are linear in nature & spread over several kms

Importance of Logistics Planning


Logistics cost is a substantial part of the overall project cost. To add to the complexity the logistics cost can have high variability because of the following reasons 1. Escalation in Diesel Prices Every 10% increase in diesel prices will increase logistics cost by 4-5%. 2. Dependence on manufacturing activity High GDP growth rates can keep the freight rates above the justified freight rates for extended period of times. 3. Sudden & Unexpected Rule Changes For eg. An outright ban on overloading of trucks ( a normal industry practice) can cause the freight rates to rise unexpectedly. 4. A large number of construction projects (road projects) starting simultaneously in the same vicinity can cause the freight prices to temporarily increase to high levels, which can cause the actual logistics to exceed the planned logistics cost.

Services

Description

2000 TEUs 1-2 TEU 70-100 TEUs

100-200 TRUCKS

20-30 TRAINS

1 SHIP

Hub- Spoke Model

Integrated Freight Terminal


CONCOR is considering the option of moving into operating large railway goods-shed hubs. CONCORin the long term plans to set up Distriparks/ Freight Centres/ Trade Development Centres etc. at some of its terminals. The focus of providing such services will be on the backward and forward integration of various value added services with the core business of transport logistics, in which the company already has an established foothold.

Information System
CONCOR is using various online applications like Export/Import Terminal Management System (ETMS), Domestic Terminal Management System (DTMS), Oracle FinancialsERP, HR-Payroll system etc. Facility for electronic filing of commercial documents have been provided to customers. Digital Signatures have been integrated with e-filing to make the system more secure.