International Logistics Parks The Indian Way
Sr. No I II III IV V VI VII VIII Topics Concept & Need of an International Logistics Park Concept of Regional Hub & Demand & Supply Mumbai Region - Bhiwandi Emerging Warehouse Hub Operational Challenges – Bhiwandi Warehousing Hub Renaissance Logistic Park – A Snapshot Key Learnings & Best Practices Client Expectation & Needs Satisfaction Business Proposition & Way Forward
I. Concept and Need of International Logistics Park
Global Logistics Industry (LI) Scenario
Global Logistics Industry (LI) = US$ 3500 billion India’s Logistics Industry (LI) = US$ 66 billion India’s LI % to Global Industry = 1.90 %
International Logistics Performance Index (LPI) LPI depends upon the following areas: 1. 2. 3. 4. 5. 6. Infrastructure : Quality of trade & transport related infrastructure Logistics competence : Competence and quality of logistics services Timeliness : Timeliness in shipments in reaching destination within the scheduled or expected delivery time Tracking & Tracing : Ability to track & trace consignments International shipments : Ease of arranging competitively priced shipments Customs : Efficiency of clearance process
Rank 1 2 7 8 15 27
Source: World Bank LPI Survey 2010
Country Germany Singapore Japan U.K. U.S.A. China India
Global Logistics Industry (LI) Scenario
International Spends on Logistics Management Logistics Spending (% of GDP) 9.50 % 10.50 % 11.00 % 18.60 % 13.00 % 3rd Party Logistics (% of total movement) 57 % 80 % 68 % < 10 %* < 10 %
Country US Japan UK China India
Lower the % of logistics spent to GDP, better is the logistics management Higher % of 3PL shows a higher share of organized players Developing countries spend excess on logistics management
5 37.00 India's Total Logistic Market 2009-10 Organized 6% 7.50 Unorganized 86% 116.India’s LI Scenario
India’s Logistic Market : Expected growth of CAGR of 8% p.2012-13 Particulars (US $ in Expected Logistic % Share Bn) (Rs.20% p.Y . over the next 3-5 years.90 94.5 Unorganized 94% 117.a. 2012-13 Organized 14% 18.
. In 000' Cr) Market of India for India's Total Logistic Market 100% 135.2009-10 Particulars (Rs.a.
Overall India’s Logistic Market Growth rate is 18% .Y .10 580.00 the F. in the year
India’s Expected in Investment is LI by 2015 USD $350 billion.00 625.5 587.50 Future F.00 560. In 000' Present Logistic % Share (US $ in Bn) Cr) Market of India FY 100% 125.Y .
the cost of Logistics Industry will also
stay higher & the efficiency will be low.
.Organised LI in India
60 50 40 30 20 10 0 4 India US Europe 34 54
India's Total Logistic Market
6% Organized Unorganize d
Share of organised LI in India : 6% Need of the hour : International Quality of Logistics Parks Without this vital infrastructure.
II. Concept of Regional Hub & Regional Demand & Supply
Ahemdabad Surat .Potential Regional Hubs in India
JLL Warehousing Hubs
1 NCR Mumbai Bangalore Kolkata Chennai Hyderabad Pune Ahmedabad Surat Goa Chandigarh Kochi Vishakhapatanam Nagpur Coimbatore Kochi – Trivendrum Vizag .Nashik Surat .Kakinada
Mckinsey High Growth (ProductionConsumption) Clusters
NCR Mumbai – Pune .Ahmedabad
3 4 5 6 7 8 9 10 11 12 13 14 15
Coimbatore – Salem
.Mysore Kolkata Chennai Hyderabad Mumbai – Pune .Nashik Bangalore .
Logistic Parks – Demand Factors
• Major Demand for Logistics comes from:
– Industrial Activity
– Automobile Industry – Electronics & Electrical Industry – Textiles Industry – Machine & Engineering – Chemical & Pharmaceuticals – Food Processing Industry – Manufacturing SEZs
– Agricultural – Retail Sector – EXIM Cargo
retail EXIM cargo. SEZ). 5. 2. & agriculture Industry (Electronics. industry (Pharma) Industry (electronics. textile/garment).N. auto). EXIM cargo Agriculture. 4. auto. EXIM. electronics. textiles. retail. agriculture Retail. pharma. SEZ). 3. SEZs). retail. Electronics. 1. Textile. retail. textile.
Demand Factors Industry (Auto. Machine &Engineering. 8. agriculture. retail Industry (Electronics. auto -components). 6.Demand Parameters in Top 8 Locations
NCR Delhi Mumbai Chennai Kolkata Bangalore Hyderabad Pune Vishakhapatanam
S. EXIM cargo Industry (Auto. retail. 7. textiles. industry (Chemicals & pharma.
1200000 1000000 800000 600000 554016 400000 200000 0 NCR Delhi 182098 114730 104136 94545 20285 29378 Chennai Bangalore Pune 1015123
1 2 3 4 5 6 7 8
CWC is the biggest player in Logistics sector with operations from Agriwarehouses to ICDs
Establishment of ICDs/CFSs offer advance logistic facilities and play important role in organized logistic activity
.Supply Scenario of Logistics Space
Number of CWC Place/ City Warehouses NCR Delhi 25 Mumbai 18 Chennai 4 Kolkata 11 Bangalore 7 Hyderabad 1 Pune 2 Vishakhapatana m 4 Number of ICD/ CFS 12 30 20 7 3 2 2 4
otal CWC Capacity in 8 Locations (MT) S.
III. Mumbai Region – Bhiwandi Emerging Warehouse Hub
Key Logistics Hubs in MMR
Aver age Rent als
Establis hed/Eme rging Logistic Hubs in Mumbai
Bhiwandi Panvel Taloja Trans Thane Creek Rasayan i Patalgan ga
Rs/ Sq Ft/ Mont h
13 17 20
Land Cost Rs in Crores/ Acre
Focus: Bhiwandi City
SN 1 Current Market Trend Of Rental Rate Of Warehousing Complex In Bhiwandi Warehousing Complex ‘A’ Grade Warehouses ‘B’ Grade Warehouses ‘C’ Grade Warehouses Rent Per Sq. 8 – Rs. 11 – Rs. Rs.18 Rs.Ft.10 2 3 4 5 6 7
Sectors Textile Sector Automobile Sector FMCG Sector Pharma Sector Cement Sector IT Sector Other Total
% Share 6% 32% 18% 14% 4% 16% 10% 100%
Main Users / Sectors of the Proposed Product
.14 Rs.15 – Rs.
Report by Cushman and Wakefield.Focus: Bhiwandi Warehousing Hub
Buyer’s Segment / Key Players In Various Industries Road Express • Gati • Safexpress • TNT • TCI Buyers’ Segments/ Players in various Industries Air Express • Bluedart • Gati
Warehousing Industry • CWC • DHL logistics • AFL • Om Logistics • Safex • Delhi Assam
Courier Industry • Bludart • First flight • AFL • DTDC • Overnight • Professional Courier
Roadways • Patel Roadways • DHL • Schenker BAX • Semb Corp • Panalpina • Agil Freight Logistics
Source : CII Report. REC. World Bank Survey. ASSOCHAM Survey
Future Demand for Warehouses for Year 2010-2015
Switchover of Corporate from illegal Warehouses in Bhiwandi Agro & Industrial Need for Warehouses Retailing Sector Need for Warehouses Export & Import (Cargo Handling) Need for Warehouses Total Warehouses Space Demanded in Bhiwandi Sector
.Switchover of Corporate
from existing Illegal Warehouses
SN 1 2 3 4
Particulars Switchover of Corporate from illegal Warehouses in Bhiwandi Agro & Industrial Need for Warehouses Retailing Sector Need for Warehouses Export & Import (Cargo Handling) Need for Warehouses Total Warehouses Space Demanded in Bhiwandi Sector
Area in Mln Sq.Ft.00 15.40 25. 15.00 2.
Area in Lac Sq.09 3.Ft. 8.
I II III IV V VI
.67 2.00 2.Future Demand
Agro & Industrial need for Warehouses 2010 .40 1.00 7.58 0.40
Industrial Sectors Agriculture Metal Chemical Petrochemica l Pharmaceuti cal Cement Total ( I to VI ) Converted into Million Sq.92 24.
Stores Super Market Mega Specialty Stores Exclusive Brand Outlets Total
225 280 400 3. Reliance (Hypercity).00 Need in Mumbai & MMR Region (Mln Sq.50 45. DLF Shopping Malls. Leading Corporates like Pantaloons (Big Bazaar).80 2.00 25. Crossword and other global players are in the foray.00 10.25% p.a.000
Allowance of FDI in Retail sector (Single brand & Multi-brand). Hypermarkets. number of Malls.00 40.20 2.) 20% 9.Ft.
Particulars No. Raheja’s (Shopper’s Stop).200 1.00 8. Reliance Retails. Retail market is growing at 20%. Bharti Retails.Future Demand
Retail Sector need for Warehouses 2010 .00
Shopping Malls Hyper Market Dept.00 14. Bata. of Units Warehouse Space Required (Mln sq. Supermarkets will increase in the coming years.00 125.00 10.) Retail : WH = 1 : 0.00 6.200 20.ft. Archies.00 2.00 1. TATA (Westside).
. Air Cargo Handling Space required Total Area
150 Lac Sq. Ft. Ft.76 Lac Sq. 0.08 Mln Sq.Future Demand
Export & Import (Cargo handling) need for Warehouses 2010 15
Addl. Coastal Cargo Handling Space required Addl. 15.
IV. Operational Challenges : Bhiwandi Warehousing Hub
food courts hygiene Absence of planned complex Absence of Infra & Utilities of world class levels Local issues of various monopoly of varia. dock leveler etc Water logging flooding & termites Insects pests creating lot of goods lost
Non-compliance of fire & safety norms hence loss of insurance cover
. dusty environment etc No human Interface in terms of toilets. forklifts. cold storage. labour supply. chemical storage high cost good storage in
Non-compliance Building for modern facilities like Racking system. restrooms.N 1 Absences of Legal and Marketable title for warehouse No common facilities & amenities in warehousing complex Non-compliance of Development control rules & legal approvals Substandard warehouse building with broken floor. Cracked walls.Major Issues faced by Operator
in Bhiwandi Warehousing Hub
S. local transport. heating. security etc No specialised facilities for temperature control .
Renaissance Logistics Park
Master Plan .Renaissance
750 sq ft large plot with building 1360 Units .5 acres .BTS Warehouse complex of 62.Standard Warehousing complex of 120 acres .Green Industrial Complex of 80 acres .Sr.Each 6.BTSIndustrial Complex of 95 acres + 9 acres Commercial spare of 9 acres 138 Units .250 sq ft Small plot with building 24 Units . area 3 lac million metric tonnes storage capacity
Type of Project
Green Industrial Units
. No A
Project Particulars Summary
Project promoted by Special Purpose Vehicle
Renaissance Infrastructure 376 acres of Integrated Warehousing and Industrial Complex . ft.Each 18.Each 2065 sq ft Industrial gala 27 buildings 2 million sq.
designed and executed by PMC approved by Government of India
. further transferred to buyer ensuring 100% title legality The complex is master planned.Unique Selling Propositions
What makes Renaissance Warehousing Business-class?
Assurance 1 2 3 4 ‘First 100% Legal’ Warehousing complex in Bhiwandi The project is promoted by the Special Purpose Vehicle(SPV) and is being developed under the approvals granted by Central and State Government to SPV All land rights are in the name of SPV.
main road and 121 ft. trade centre • Warehouse support services outlets • Logistics equipment and service centres • Goods storage. exclusive road for every building with 68 ft. 46 ft. drainage. loading. trading and display support services The complex will have all MIDC equivalent facilities of roads. palletizing and checking out. security system and fire fighting system The fire fighting station located within the complex The complex will be professionally managed by a dedicated Operations and Management team headed by the CEO
4 5 6
.Business Class Facilities 1 The superior warehousing facilities speed up the throughput time and efficiency of the business operations from checking into terminals. power supply. (8-lane-one way) circular loop road around the entire complex The complex comes with world-class exclusive common facilities: • Inbound and outbound truck terminal • HRD training centre • Food courts. water distribution. commercial complex. docking unloading.
Strong reinforced. roofing system is designed to handle expansion and contraction of the sheets during high temperature variations and avoiding corrosion FM II (TR34) compliant flat floor for safety.Business Class Design 1 All 27 buildings of the warehousing complex are branded world-class PEB structures The new warehouse structure has exclusive features of building insulation. air-conditioned. racking compliance and exclusive road for each warehouse building with controlled access Screwless. precision. abrasion crack and dust resistant floor designed for racking and forklift loading Poliginus reflective insulation: Heat insulated (reduction of 7°C when outside temperature is 45°C plus).free roof system. breadth and height) is compliant to positioning of heavy duty racking system and designed to maximise the number of pallet positions Continuous canopy of 6 m over-hung with Soffit
. fire retardant. improves work efficiency and offers safer storage of goods. wide and narrow aisle racking arrangement. standing seam roofing (SS 2000): Puncture. Pallet compliant flooring: The warehouse layout (length.
Location of Future
Ring Road – MMR Plan Location Plan
.Proposed Ring Road .
Project Land & Approvals
100% Marketable Title & Freehold Property
Step 1 to 6 to make property 100% marketable to freehold SPV transfer the title to the buyer or purchaser
World Class Infra
signages. Trucks will be permitted to enter the premises only if there is room else will be instructed to be parked in the truck terminal until availability of space in that warehouse.Traffic Management: Facilitating Business
Facilitating a smooth flow: Our world-class traffic management systems are strategically planned to ensure that your goods move business-class. 40 ft. and 30 ft. C Entrance Management For every truck which enters. Shops
Facilities in Truck Terminal a. D Security Post Each entrance has a security cabin responsible for screening all the vehicles entering. Driver Dormitory c. The terminals.N A Truck Terminal The truck terminal has been designed considering the length of the containers (60 ft. wide central roads.).
S.. directional guides. with a parking capacity of 100 trucks. inter-connected roads leading to warehouse and other units are planned for smooth flow and hassle-free movement. the security checks for vacant space in the respective warehouse. coordinating on the availability of space with the warehouse in-charge and directing them towards the truck terminal or the respective warehouse. Canteen / Mess b.
oneway) • 46 ft. N
Vehicular Movement One-way movement of all trucks Two loop roads to facilitate movement of the vehicle internally (in case of wrong turns) G Traffic Flow Management •Internal signage assisting smooth vehicular movement •One-way traffic for incoming vehicles •Efficient traffic management staff controlling the traffic flow
Road System • 121 ft. two-way) • 68 ft. warehouse internal road (one-way) • Industrial tonnage cement concrete road • Road illuminated with sodium vapour lamp • Loop road for quick
. main road (4-lane.S. central complex road (8-lane.
Dry Shake Hardener with Liquid Surface Hardener (LSH) Built-to-suit possibility: Depending on the business need. flooring with greater weight-bearability can be created
. steel fibre reinforced concrete (SFRC).N 1
Customization possibilities Standard ceiling height: 8 m Built-to-suit provision: Height can be extended up to 10 m Built-to-suit possibility: Racking can be created with various financial options Standard Flooring: M25 grade. if your wares need temperature control. Below is a comprehensive list of built-to-suit provisions and possibilities over and above the standard elements.
S. you require a ceiling higher by a couple of meters. For example. 150 mm thick. our structures have been designed in a manner that allows us to incorporate certain additions as per your unique business needs. At the Renaissance warehouse. there are various such possibilities along with the trust of getting the additions done through the same expert team that has designed this worldclass structure.Built-to-Suit: Provisions & Possibilities
At the Renaissance warehouse.
including: • Pharmaceutical Industry • 3 PL & 4 PL Logistic • Studio • Low cost IT • Agricultural Warehouse
Mezzanine Air Conditioning Cold Room Office Space
.N 4 5
Customization possibilities Built-to-suit possibility: Mezzanine floor can be created as per the occupier’s need Built-to-suit possibility: In case the wares require temperature controlled environment. the same can be created on demand Built-to-suit possibility: Walk-in cold room can be created In case the occupiers need to use a portion or the unit for office purpose. the same can also be designed and created in a fully-functional format depending upon the needs Standard offering: The structure comes with 265 lights Built-to-suit provision: More lights can be added as per the need Our warehouse is compliant with various business types.S.
Provision of dock leveler for easy loading and unloading.Office & Toilet Design Changing & Locker Room Mezzanine Floors
Built-to-suit options Provision of office at entrance of the warehouse.S.11457 nos.
Value Generation Customization
Toilets at entry side of the Customization warehouse for executives and at exit side for labor and drivers Provision of changing & locker rooms for workers Provision of mezzanine floors of required size for office purpose.N 1 2
Elements Contd… Interiors . as per requirement Provision of racking system pallet location . as per requirement Provision of air-conditioning of required tonnage Customization
Heavy-duty Racking System Dock Levelers
Learnings & Best Practices
Locating & Land Acquisition
of Logistics Park
S. court search. forest search etc Strong local team with surveyor having understanding of land possession Local connect from collector office to talathi inhouse team of experienced people to follow through & get complete approval Local Influential people part of land acquisition parcel to manage
Title holder not having possession Land approvals
Stopage of work
.N 1 Critical issues Fragmented ownership of land Defective title Problems Consolidation of land No marketable title No possession of land Non transferability of land Learning / Best practice Local facilitator / Aggregator having in depth understanding and relation in village Comprehensive title search since 1957 (day).
of Logistics Park
Design & Engineering
of Logistics Park
All Building at zero degree . fire station & CFO compliance certificate Standard building & Built to Suit plots Optimise FSI Utilisation Centrally located open spaces & landscaped areas At least 10% as open space 5% common facilities & amenities Common facilities & amenities location
2 3 4
Road & storm water network through the complex Utilities corridors & Ducts Locating WTP.2 to 3 meter above high flood line (HFL) .International standard for warehouse building .STP to recycle water for irrigation & Flushing . STP.Always reside people around complex travelling is most energy draining activity .Plotting out area for building in project .3 to 4 meters utilities corridors . Fire station
6 7 8
.Specialised contractors to execute specialized job .Nothing coordinates to create a grid for Vastu Compliance .Development
of Logistics Park
S.Residential Complex for work to work with all township amenities
.Highway class lanes .N 1 Ideal steps to follow the development of Logistics park Earth work to achieve desired level .Fire fighting system.Continuous source of water (Ideal from irrigation department) . UG tanks.
HRD centre to train people on logistics
Monopoly of Labour supply
Monopoly of local transport
Monopoly of security
Fixed percentage of
. Labour contractor with license & compliance on market driver pricing 2. No monopoly in labour supply 1. Take land on joint development & made properties for letting out for villages 4. Laid out policies for non interface by locals 3. Created fix compensation for village development 1.Local Issue Management
Critical issues Varai Problems Monopoly of Loading and unloading by locals Learning / Best practice 1. Creates 3 to 4 security licensed agency within village to provide services on market driven pricing & with quality of services 2. Transportation in local 2. Create local representative bodies 2. Objective to provide services to occupier 3. No monopoly 1. Tempo station on market driven pricing 3. No monopoly 1.
wages system.Operation & Maintenance
Quality of Infra
Learning & Best Practices
Design & Build to last for decades
Quality of Utilities
Common facilities & amenities
Create & build most reliable utilities i. water-logging. Insulation Warehouse Structure & fire. fire fighting Human interface ignored . Dormitories. water supply. insects Maintenance heat Fire-fighting system Professional & skilled facilities management company Operation Management & Run Logistics Park as a service Facilities Absence of professionalism operation like hotel.Very human centric master plan & Lack of Restrooms. electric system. sewage system. hospital
. leakages. around the complex & keeping it clean Provision stores & usable World class flooring complying FM standards Standing sun roof
Broken flooring.e. creating sweet-spots areas.reliability system. Food complex use plan. drainage Non .
Client Expectation & Needs satisfaction
HRD centers local population to be trained to be employable .FM: Compliant.Commutation facilities for 24 x 7 & residential facilities within complex .Two level gated complex with security system .5 to 7% of area dedicated for truck terminal .Local committees & fixed payments .1. Righ vents.2 meters Docking bay with dock levelers . International certified flooring .CFO Compliance & Certification .N 1 2 3 4 5 6 7 8 9 10 11 Critical issue for client in operation of warehouse Flooring of warehouse Leak proof roofing Docking Bays with Dock levelers Security gates & gated complexes Truck terminal Fire fighting system & Insurance compliance Local issue Availability of skill & semi-skilled labour 24 x 7 operation Heating & humidity in summer Flooding & Water logging Learning (Best practice) .Critical issues for client
S. Turbo Ventilation . effective storm water drainage
.3 to 4 meters above HFL.Standing seem (Screwless roofs) .Insulation.
Excellent road.Club facilities.Professional team for facilities management
. sitouts .Solid waste management & regular cleaning through facilities management .Marketing centre.Critical issues for client
S. bus shelters. clear traffic movement. . Exhibition Area.N 12 13 14 15 16 17 18 19 20 Critical issue for client in operation of warehouse 24 x 7 Power Solid waste & unclear Fast turnaround time Human Interface in term of clean toliets etc Hygiene Food Recreation to loose Fat Traffic swift mobility Area for commerce Maintainance of warehouse building equipment Learning (Best practice) . Recreation grounds. hotels Factory outlets. location standies. instruction boards . back up generator .Food courts lunch home.Express fidder. Highspeed connectivity . foot path. gardens .Public toilets. restaurants . equipment loading & unloading.Signages.
Business proposition & way forward
5 lac sq ft 10.0 lac sq ft 4.Business proposition & Way Forward
Properties at Renaissance Logistic Park Bhiwandi Standard Building Lease Ready for Possession Area under construction Sale Area under construction for sale 3.00 lac sq ft Built-to-Suit Lease Ready to Build BTS under Negotiation Sale Ready to be sold under BTS 10 lac sq ft 15 lac sq ft 10 lac sq ft
Total Industrial Space Demanded Total Industrial Park supply by RI 5. Ft.50 0
No. of Accommodation required
47% 22. Ft.Demand Supply Analysis
Bhiwandi .48 Total Warehouses Space Demanded
12% 6. Ft.83
Mn Sq. of Accommodation available
Total Industrial Township supply by RI
.71 Mn Sq.
Total Warehouses Supply by RI 53.65
% of RI’s Supply to total Demand
Total Industrial Township Demanded
No. Ft. MMR Demand
Deman d Suppl y