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Transportation Industry Is Likely To See Good Days - Mytrux
Transportation Industry Is Likely To See Good Days - Mytrux
Transportation Industry Is Likely To See Good Days - Mytrux
Since the beginning of the first plan in 1951, road freight traffic has grown
annually by 9.1% but the road network has grown annually by just about 4.2%.
This has put tremendous pressure on the existing road network leading to
congestion, delays and eventually higher costs and lower profitability in the
trucking business. In India National Highways account for 2% of the road
network but they account for 40% of total road freight movement. That is why
road infrastructure becomes so important and can have a multiplier effect on
the trucking industry. The National Highway Development Program (NHDP)
envisages an additional 50,000 km of national highways by this year end with
a total investment of Rs.3 trillion. This could be a big boost for the trucking
and road freight business.
However, at "Mytrux" the belief is that while road infrastructure is critical to
move goods, the trucking industry can benefit substantially through the rapid
adoption of technology. "Mytrux" has, therefore, focused on a platform where
truckers, users, brokers and the fleet owners can use technology to find critical
paths for efficient and effective transportation of goods.
GDP growth will give a big push to the transportation segment...
It has historically been seen that the goods transportation segment has a 1.3
times sensitivity to GDP growth. That means, if Indias GDP grows at 8% per
annum for the next 5 years, the transportation industry will see a growth of
10.4% per year. For a $130 billion industry, that is a huge boost each year.
Additionally, the improved spread and quality of roads will also give a 1%
boost to GDP which will in turn create a virtuous cycle of GDP and the
transportation sector helping each other grow.