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Logistics as anOpportunity
: New Markets
- R. Radhakrishnan
Chairman FFFAI
Chairman Clearship Group
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INDIA
:: AN OVERVIEW
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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 : An Overview
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The Indian economy has witnessed unprecedented growth. Booming services and
industry sectors are providing the required impetus to economic growth
The soundperformanceof eachindustry
segment isleading tothe overallrobustperformanceof the Indianeconomy
Indias GDPhas
witnessedhigh growth,and was thesecondfastestgrowingGDP afterChina in2006-07
FastestGDP growthof 9.6 % in
2006-07
Source: MOSPI Statistics
Growth in sectorsat Current Prices(07-08)Industry: 39.5%Services: 28%Agriculture: 32.8%
0 200 400 600 800 1000 1200
2002
2003
2004
2005
2006
2007
GDP
GDP
0.00 100.00 200.00 300.00 400.00 500.00 600.00 700.00
2002
2003
2004
2005
2006
2007
Sectors Growth
Services
Industry
Agriculture
India: Among the Top-15 Countries in termsof GDP at Constant prices
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14 Major and 187 minor ports along 7000 KM coastline
5 Major and 341 minor airports
63221 kms of rail network in place46807 kms broad gauge and 16414 narrow gauge
3.38 million km of road network1.60 million km paved and1.78 million km unpaved
14500km waterway
5200 kms on major rivers 485 kms on canalssuitable for
mechanized vessels (2006 data)
Logistics Infrastructure
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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 of7%
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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
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Petroleumproducts are
the majorcontributors
towards Indiasgrowing imports
Quality and costadvantage are the
two importantparameters
leveraged by theIndian producersto increasingly
market products
and services
Services sector hasbeen a major
contributor toincreased exportsfrom India
Product imports byIndia mainly includepetroleum productsand minerals
Indian companieshave chalked outextensive plans toincrease theirpresence abroad
Acceptance ofIndian productsalong with the costadvantage hasprovided an edge to
Indian companies
Source: Ministry of Finance (August Report)
0.00 50.00 100.00 150.00 200.00 250.00
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Import
Import
0 20 40 60 80 100 120 140 160
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Exports
Exports
Indias EXIMTrade
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Far East 24%
Oceania 1%
USA 16%
Africa 7%
Middle east
15% South
America 3%
Europe 34%
Far East
OceaniaUSA
Europe
Africa
Middle east
South America
Indias Trade Composition
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Indias Exports
Indias 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
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Indias Top 10 ExportDestinations
16.75%
8.36%
6.54%
5.42%
5.01%
4.34%
3.42%
2.39%
2.39%
2.78%
1.77%
USA -16.75%
UAE - 8.36%
China - 6.54%
Singapore - 5.42%
UK - 5.01%
Hongkong - 4.34%
Germany - 3.42%
Belgium - 2.78%
Luxembourg - 2.39%
Japan - 2.39%
Republ ic of Korea - 1.77
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Indias Top 10 ImportDestinations
7.29%
6.30%
4.40%
4.04%3.32%
3.17%
3.06%
2.92%
2.76%
2.72%
2.63% China -7.29%
USA - 6.3%
Switzerland - 4.4%
Germany - 4.04%
A ustralia - 3.32%Belgium - 3.17%
Republic of Korea - 3.06%
UA E - 2.92%
France - 2.76%
Japan - 2.72%
UK - 2.63%
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INDIAN PORTS
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NHAVA SHEVA
NEW DELHI
LUDHIANA
JODHPUR
DADRI
JAIPURMORADABAD
KANDLAPITHAMPUR
AHMEDABAD
NAGPUR
PUNE
GOA
BANGALORE
HYDERABAD
TUTICORINCOCHIN
KOLKATA
MUNDRA
PIPAVA
PORBUNDER
CHENNAI
HALDIA
KANPUR
NEPAL
Inter- land Connectivity
BARODA
VISHAKHAPATTNAM
Approximately 30% of Exim containers moveApproximately 30% of Exim containers movebyby
RailRail
Balance is handled by Road.Balance is handled by Road.
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PORTS
IN
MUMBAI
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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
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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 countrywith highest container throughput of 519.23 lakh tonnes
in 2007-08 with a record of 4.060 Million TEUs
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Ports in Mumbai
PORT LOCATION ENTRANCE CHANNEL TYPE OFDOCK/PORT
LATITUDE LONGITUDE DISTANCEFROM
HARBOURENTRANCE
(IN KM.)
MINIMUMDEPTH
(IN MTRS)
MINIMUMWIDTH
(IN MTRS)
MBPT(Mumbai)
18 54'N 72 49'E 9.6 10.9 366 NaturalHarbourwithimpoundedWet Docks
JNPT 1856.43'N 7256.24'E 10.0 11 350 All Weather Tidal Port
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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)
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Mumbai Port Trust
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Mumbai Port Layout
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Over 135 years of contribution to countrys EXIM trade and
Mumbai Citys 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
About Mumbai Port
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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 121357CFS 66534
Open Area 318321
Tank Farm 487000 (139 Tanks)
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Traffic Forecast
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CARGO TYPE EXISTING ADDITION TOTAL
Container 3.50 10.00 13.50General Cargo 9.20 10.28 19.48
POL 30.00 17.78 47.78
Chemical 2.00 2.00 4.00Coal -- 5.50 5.50
TOTAL 44.70 45.56 90.11
( Excluding handling capacity at anchorages)
(In million tonnes)
Capacity Creation (By
2011-12)
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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
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JAWAHARLALNEHRU
PORT
TRUST
JNPT P L
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JNPTPort Layout
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Terminal
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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 618014Tank Farm 629990 (118 Tanks)
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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
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Connectivity ex MumbaiPorts to Italy
Type of Service Port/ (s) TransitTime
Frequency
Direct La Spezia 20 days Weekly
Trans-shipment Via Port Said,Cagliari,Malta, Gioia
Tauro
Approx 24-25 days
Weekly
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Connectivity ex ItalianPorts to Mumbai
Type of Service Port/ (s) Transit Time Frequency
Direct Genoa 20-22 days Weekly
Trans-shipment Via Port Said,Cagliari, Malta,
Gioia Tauro
Approx 26-29 days
Weekly
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Commodity Exports to Italy(Jan-Aug,08)
COMMODITY TOTAL (IN TEUs)
Steel Products 3039
General Cargo 1440
Chemicals NON HAZ 1378
Cotton Yarn 1364Machinery/ Spares 1265
Polyster Products 889
Leather Products 887
Electrical Products 706
Automobiles 594
Accessories 562
Frozen Food Products 532
Cotton Fabric 509
Handicrafts 406
Rice 399
Garments 392
Textile Goods 391
Tyres with Tubes 379
Made-ups 361
Aluminium Products 329
Household 328
Iron Sheets 318
Others 6706
TOTAL 23174
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Exports to Italian Ports(Jan-Aug,08)
PORT TOTAL (IN TEUs)
Genoa 7337
La Spezia 6193
Venice 2182
Naples 1815
Gioia Tauro 1029
Ancona 908
Livorno 678
Salerno 608
Ravenna 481
Trieste 334
Catania 273
Palermo 270
Taranto 228
Leghorn 158
Napoli 152
Civitavecchia 123
Others 405
TOTAL 23174
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Commodity Imports ex Italy(Jan-Aug,08)
COMMODITY TOTAL(IN TEUs)
Machinery/ Spares 3085
Granite Products 1806
Chemicals NON HAZ 809
Steel Products 746
Metals 585
Paper 542
Automobiles 519
Granite Blocs. 406
Consol Cargo 401
Electrical Goods 377Plastic Products 372
Accessories 361
Textile Goods 338
Made-ups 333
Ceramic Products 256
Scrap 246
Household 229
General Cargo 195
Furniture 187
Slate/ Stone Products 185
Foodstuffs 170
Wool 149
Raw Materials 136
Packaging Materials 117
Electronic Goods 115
Timber 107
Pulp 107
Glass Products 104
Rubber Products 101
Others 2572
TOTAL 15656
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Imports ex Italian Ports(Jan-Aug,08)
PORT TOTAL (IN TEUs)
Genoa 5386
La Spezia 3064
Gioia Tauro 1857
Venice 1544
Naples 646
Palermo 498
Trieste 441
Ravenna 413
Merone 245
Leghorn 219
Ancona 191
Tavernelle 161
Melilli 123
Salerno 102
Livorno 90
Others 676
TOTAL 15656
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Logistics IndustrysOpportunities
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
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Logistics IndustrysOpportunities
Potential for 3PL growth estimated to grow at 20%
per annum
Emerging warehousing and distribution demand bydomestic and global retailers
Capital investment resulting in demand for Project
Logistics
Door- to Door deliveries resulting in DDU/DDP
shipments
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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 hubfor sea-freight
India is also developing as a major air cargo and
express cargo hub
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New Market :: India
India will eventually develop as a global warehouse
and distribution centre
India is pursuing global best practices andproducing world-class managers
Indian Logistic players are partnering to grow
Globally
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