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Logistics as an

Opportunity
: New Markets

- R. Radhakrishnan

Chairman– FFFAI
Chairman – Clearship Group
INDIA
:: AN OVERVIEW
India : An Overview
 Population – 1.14 billion

 GDP – 1.098 trillion $

(Services – 52%, Industry – 27%, Agriculture – 21%)

 Exports – 155 billion $

 Imports – 235 billion $

 Forex Reserves / Gold – 275 billion $

 Trading Partners (in $)– US 10%, China 6.4%, UAE – 5.4%, UK

3.7%, Singapore 3.7%, Germany 3.6%, Switzerland 3.3%


India: Among the Top-15 Countries in terms
of GDP at Constant prices
India’s GDP
has The Indian economy has witnessed unprecedented growth…. Booming services and
witnessed industry sectors are providing the required impetus to economic growth
high growth,
and was the
GDP
second
fastest
2007
growing Fastest
GDP after 2006
GDP growth
China in 2005
of 9.6 % in
2006-07 GDP
2004
2006-07
2003

2002

0 200 400 600 800 1000 1200

The sound
performance
of each Sectors Growth
industry
segment is Growth in sectors
2007
leading to at Current Prices
the overall 2006
(07-08)
robust 2005 Services Industry: 39.5%
performance Industry
2004 Services: 28%
of the Indian Agriculture
economy
2003 Agriculture: 32.8%
2002

0.00 100.00 200.00 300.00 400.00 500.00 600.00 700.00

Source: MOSPI Statistics


Logistics Infrastructure

 14 Major and 187 minor ports along 7000 KM coastline

 5 Major and 341 minor airports

 63221 kms of rail network in place


46807 kms broad gauge and 16414 narrow gauge

 3.38 million km of road network


1.60 million km paved and1.78 million km unpaved

 14500km waterway
5200 kms on major rivers 485 kms on canals
suitable for
mechanized vessels (2006 data)
The Indian Logistics Sector

 Consumption expenditure formed 78% of GDP

 Services sector contributed for over 60% to GDP

 Logistics sector contributed around 13% of GDP

 Indian logistics market is valued over US$14 billion

 Indian logistics is growing at a compounded rate of


7%
Cargo Traffic
 Major seaports handle 70% of seaborne trade

 Expected growth rate : 10-12% per annum

 Major airports handle 90% of total air traffic

 Expected growth rate: 12 -14% per annum


India’s EXIM Trade
Services sector has
been a major
contributor to Exports
increased exports Quality and cost
from India advantage are the
2007-08
two important
2006-07
parameters
Acceptance of 2005-06 leveraged by the
Indian products
along with the cost 2004-05 Exports Indian producers
advantage has to increasingly
provided an edge to 2003-04 market products
Indian companies 2002-03 and services
0 20 40 60 80 100 120 140 160

Indian companies
have chalked out
extensive plans to
increase their
presence abroad Im ports

2007-08 Petroleum
Product imports by products are
2006-07
India mainly include the major
petroleum products 2005-06 contributors
and minerals
2004-05 Im ports towards India’s
growing imports
2003-04

2002-03

0.00 50.00 100.00 150.00 200.00 250.00

Source: Ministry of Finance (August Report)


India’s Trade Composition
Middle east
15% South
Africa 7% America 3%

Far East
Oceania
Far East 24% USA
Europe
Europe 34% Africa
Middle east
South America
Oceania 1%

USA 16%
India’s Exports

 India’s merchandise exports have reached a record figure


of US $102.7 billions during the financial year 2005-06

 Exports grew at the rate of 23% and crossed 100 billion


dollar during 2005-06

 It is expected to cross $120 billion by the end of 06-


07
India’s Top 10 Export
Destinations USA -16.75%

2.39% 1.77% UA E - 8.36%


2.39%
China - 6.54%
2.78% 16.75%
Singapore - 5.42%
3.42%
UK - 5.01%

4.34% Hongkong - 4.34%

Germany - 3.42%
5.01%
Belgium - 2.78%
8.36%
Luxembourg - 2.39%
5.42%
6.54%
Japan - 2.39%

Republic of Korea - 1.77%


India’s Imports

 India’s total merchandise imports during the financial


year 2005-06 was US $ 149.16

 Imports grew at the rate of 33.76% when compared to the


financial year 2004 – 2005

 Bulk imports as a group registered a growth of 39.86% in


rupee terms during April-March 2004-05 and
accounted for 39.09 per cent of the total imports
India’s Top 10 Import
Destinations
2.63% China -7.29%
2.72% 7.29%
USA - 6.3%

2.76% Switzerland - 4.4%


Germany - 4.04%
2.92% A ustralia - 3.32%
6.30%
Belgium - 3.17%
3.06% Republic of Korea - 3.06%
UA E - 2.92%
3.17%
4.40% France - 2.76%
3.32% Japan - 2.72%
4.04%
UK - 2.63%
INDIAN PORTS
LUDHIANA
Inter- land Connectivity
NEW DELHI
DADRI
NEPAL
JAIPUR
MORADABAD
JODHPUR

KANPUR
MUNDRA KANDLA
PITHAMPUR
AHMEDABAD
KOLKATA
HALDIA
PORBUNDER BARODA
PIPAVA NAGPUR

NHAVA SHEVA PUNE

HYDERABAD VISHAKHAPATTNAM

GOA

BANGALORE

CHENNAI
Approximately 30% of Exim containers move
COCHIN by
TUTICORIN
Rail
 Balance is handled by Road.
PORTS

IN

MUMBAI
Ports in Mumbai
 Mumbai has two major ports namely – the Old Mumbai Port
(Mumbai Port Trust) and the New Mumbai Port (Jawaharlal
Nehru Port Trust)

 Both the ports are situated in the west coast close to the
commercial capital of India – Mumbai

 Both ports together cater to the Western and Northern region


of India
Ports in Mumbai
 Mumbai Port Trust mainly cater to bulk traffic and JN
Port Trust predominantly cater to container traffic

 JNPT and MBPT have together handled 21.78 % of the


total traffic of 5192.40 MT

 JNPT has emerged as the premier port of the country


with highest container throughput of 519.23 lakh tonnes
in 2007-08 with a record of 4.060 Million TEUs
Ports in Mumbai
PORT LOCATION ENTRANCE CHANNEL TYPE OF
DOCK/PORT
LATITUDE LONGITUDE DISTANCE MINIMUM MINIMUM
FROM DEPTH WIDTH
HARBOUR (IN MTRS) (IN MTRS)
ENTRANCE
(IN KM.)

MBPT 18º 54'N 72º 49'E 9.6 10.9 366 Natural


(Mumbai) Harbour
with
impounded
Wet Docks

JNPT 18º56.43'N 72º56.24'E 10.0 11 350 All Weather


Tidal Port
Number of Berths
JNPT MBPT

 General Cargo 1 40
 Liquid Berth 2 5
 Container 9 4
 Total 12 49

 JNPT has got 2 private terminal operators namely


Maersk Consortium (GTI) and Dubai Port Authority
(NSICT)
Mumbai Port Trust
Mumbai Port Layout
About Mumbai Port
 Over 135 years of contribution to country’s EXIM trade and
Mumbai City’s growth

 1st Major Port - ISO 9001:2000 Quality Certification

 Numero Uno Port in Mumbai region

 No. 1 in Break Bulk handling

 No. 1 in Automobile Handling

 No. 1 in handling Project Cargo

 No. 2 in Oil handling

 No. 1 in Passenger Traffic


Traffic Handled at MBPT
Year 2006 2007 2008 % Growth
(07 to 08)

Tonnage 44190 MT 52364 MT 57039 MT 8.93%

Storage Capacity (in sq m)

Transit Shed 22971


Warehouse 121357
CFS 66534
Open Area 318321
Tank Farm 487000 (139 Tanks)
Traffic Forecast
Capacity Creation (By
2011-12)
(In million tonnes)
CARGO TYPE EXISTING ADDITION TOTAL

Container 3.50 10.00 13.50


General Cargo 9.20 10.28 19.48

POL 30.00 17.78 47.78


Chemical 2.00 2.00 4.00
Coal -- 5.50 5.50
TOTAL 44.70 45.56 90.11

( Excluding handling capacity at anchorages)


Development plan for
MBPT
 Re-development of harbour walls by Feb 2010

 Off Shore Container Terminal by Dec 2010

 2nd Chemical Jetty by Feb 2010

 5th Oil Berth by end of 2012

 Cruise Terminal by June 2009


JAWAHARLAL
NEHRU

PORT

TRUST
JNPT Port Layout
Proposed 4th Container
Terminal
Traffic Handled at JNPT
Year 2006 2007 2008 % Growth
(07 to 08)

Tonnage 37836 44815 55756 24.41%

Storage Capacity (in sq m)

Warehouse & CFS 215000


Open Area 618014
Tank Farm 629990 (118 Tanks)
Development plan for
JNPT
 330 m extension of existing berth at an estimated
cost of Rs 600 cr by beginning of 2010
 4th Terminal & Marine Chemical Terminal at a cost of
Rs 4100 cr by 2010
 Proposal for creating a Port based special economic
zone
 Multi-Product SEZ over 745 hectares of Port Land
CONNECTIVITY

BETWEEN

INDIA & ITALY


Connectivity ex Mumbai
Ports to Italy
Type of Service Port/ (s) Transit Frequency
Time
Direct La Spezia 20 days Weekly

Trans-shipment Via Port Said, Approx 24- Weekly


Cagliari, 25 days
Malta, Gioia
Tauro
Connectivity ex Italian
Ports to Mumbai
Type of Service Port/ (s) Transit Time Frequency

Direct Genoa 20-22 days Weekly

Trans-shipment Via Port Said, Approx 26- Weekly


Cagliari, Malta, 29 days
Gioia Tauro
Commodity Exports to Italy
(Jan-Aug,08)
COMMODITY TOTAL (IN TEUs) Cotton Fabric 509

Handicrafts 406
Steel Products 3039
Rice 399
General Cargo 1440
Garments 392
Chemicals – NON HAZ 1378
Textile Goods 391
Cotton Yarn 1364
Tyres with Tubes 379
Machinery/ Spares 1265
Made-ups 361
Polyster Products 889
Leather Products 887 Aluminium Products 329

Electrical Products 706 Household 328

Automobiles 594 Iron Sheets 318

Accessories 562 Others 6706

Frozen Food Products 532 TOTAL 23174


Exports to Italian Ports
(Jan-Aug,08)
PORT TOTAL (IN TEUs) Ravenna 481

Trieste 334
Genoa 7337
Catania 273
La Spezia 6193
Palermo 270
Venice 2182
Taranto 228

Naples 1815 Leghorn 158

Gioia Tauro 1029 Napoli 152

Ancona 908 Civitavecchia 123

Livorno 678 Others 405

Salerno 608 TOTAL 23174


Commodity Imports ex Italy
(Jan-Aug,08)
COMMODITY TOTAL Scrap 246
(IN TEUs)
Household 229
Machinery/ Spares 3085
General Cargo 195
Granite Products 1806
Furniture 187
Chemicals – NON HAZ 809
Slate/ Stone Products 185
Steel Products 746
Foodstuffs 170
Metals 585
Wool 149
Paper 542
Raw Materials 136
Automobiles 519
Packaging Materials 117
Granite Blocs. 406
Electronic Goods 115
Consol Cargo 401
Timber 107
Electrical Goods 377
Pulp 107
Plastic Products 372
Glass Products 104
Accessories 361
Rubber Products 101
Textile Goods 338
Others 2572
Made-ups 333
Ceramic Products 256 TOTAL 15656
Imports ex Italian Ports
(Jan-Aug,08)
PORT TOTAL (IN TEUs) Merone 245

Leghorn 219
Genoa 5386
Ancona 191
La Spezia 3064
Tavernelle 161
Gioia Tauro 1857
Melilli 123

Venice 1544
Salerno 102

Naples 646 Livorno 90

Palermo 498 Others 676

Trieste 441 TOTAL 15656

Ravenna 413
Logistics Industry’s
Opportunities
 Growth of retail segment due to growth in domestic
consumption
 Development in major sea ports and airports

 Growth in manufacturing sector

 Urbanization causing demand for domestic logistics

 Demand for reverse logistics and repair services


Logistics Industry’s
Opportunities
 Potential for 3PL growth estimated to grow at 20%
per annum
 Emerging warehousing and distribution demand by
domestic and global retailers
 Capital investment resulting in demand for Project
Logistics
 Door- to –Door deliveries resulting in DDU/DDP
shipments
New Market :: India

 India is being touted as the land of opportunity for


logistics service providers all over the world
 India is developing as a major trans-shipment hub
for sea-freight
 India is also developing as a major air cargo and
express cargo hub
New Market :: India
 India will eventually develop as a global warehouse
and distribution centre
 India is pursuing global best practices and
producing world-class managers
 Indian Logistic players are partnering to grow
Globally

Related Interests