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Port & Logistics
Port & Logistics
GDP Growth
Importance of Ports
Ports Today Are dynamic nodes in the Supply chain involving complex international production / distribution network; Have become Integrated Transport Centers and Logistics platforms for International trade, and Stimulate Trade and Regional development Developed under Land-lord Port and Private Port Model in India Opportunities for Private Sector to either act as Port Operator at Major Ports or Port Developer at minor Ports.
Future ?
Future of Indian Ports ?
Will Indian port sector really see the emergence of private sector as a major player in the port sector in the future? Will major ports be fully corporative, and bring about greater rationalization and transparency in functioning? Are minor ports in India poised to take a lead over performance of major ports? Is there enough room for new green field port projects in Indian port sector? Several of these questions loom large, as the Indian port sector is increasingly coming under the impact of wide ranging port reforms and private sector investments, in line with larger transformations underway in many global ports. The development of the port sector is important to development of maritime trade is an axiom that no nation can afford to ignore in todays globalised world. This was equally true in the distant past, when maritime nations undertook extensive overseas maritime explorations and trade to set their mark on global economic history.
Capacity Utilization
(*) TENTATIVE
PORTS APRIL TO DECEMBER TRAFFIC 1 KOLKATA Kolkata Dock System Haldia Dock Complex TOTAL: KOLKATA PARADIP VISAKHAPATNAM ENNORE CHENNAI V.O. CHIDAMBARANAR COCHIN NEW MANGALORE MORMUGAO MUMBAI JNPT KANDLA TOTAL: 2012* 2 8666 20198 28864 40749 44201 12212 39896 20951 14893 27025 14918 44090 47977 69497 405273 2011 3 9392 24427 33819 40500 52646 10392 41940 20853 14872 24233 28337 40217 49489 60910 418208
(IN ' 000 TONNES) % VARIATION AGAINST PREV. YEAR TRAFFIC 4 -7.73 -17.31 -14.65 0.61 -16.04 17.51 -4.87 0.47 0.14 11.52 -47.36 9.63 -3.06 14.10 -3.09
Logistics is the process of movement of goods across the supply chain of the company. This process is consist of various functions, which have to be properly managed to bring effectiveness efficiency in the supply chain of organization. The major logistical functions are:
5. Information: 6. Facilities:
Company
Ratings Outstanding* Port Companies LAA@ and A1+@ LA (Stable) LA (Stable) LA- (Stable) and A2+ LBBB (Stable) LBBB+@ and LBBB@ LBBB(Positive)
Mundra Port and Special Economic Zone Limited Ennore Port Limited Mormugao Port Trust Kakinada Seaports Limited Krishnapatnam Port Company Limited The Dhamra Port Company Limited Adani Petronet (Dahej) Port Private Limited Port Terminal Operators TM International Logistics Limited Chennai International Terminals Private Limited Nhava Sheva International Container Terminal Private Limited Terminal Private Limited Mundra International Container Terminal Private Limited Sical Iron Ore Terminals Limited International Seaports Private Limited Vizag Seaports Limited Private Limited
IrAA- (Stable) [ICRA]AA (SO) (Stable) and [ICRA]A1 LA+ (Stable) and A1+ Chennai Container LA (Stable) and A1 LA (SO) (Stable) and A2 [ICRA]BB+ (Negative) and [ICRA]A4+ Haldia LBBB+ (Stable) and A2+ LBBB- (Stable) Ennore Tank Terminals A4+
LPI SCORES
Country
USA UK Singapore India China Mexico
LPI Score
3.85 3.84 4.19 3.67 3.64 2.64
As per the World Bank's report on the Logistics Performance Index, a 0.5 per cent decrease in logistics cost leads to 2 per cent growth in trade and a 40 per cent increase in the range of products that get exported out of the country.
What is LPI/LPS
Market Potential
SIZE OF THE LOGISTICS MARKET IN INDIA:
Indian Supply Chain and Logistics Industry is more than USD 100 Billion in size and is the backbone of Indian Economy. Our industry is growing at a rate of 8-10% annually and has been a crucial contributor in the growth and development of the Indian economy. In the near future, Traditional Logistics services like Transportation and Warehousing would continue to growth at a good rate. However, the big ticket growth would come from the Value Added Logistics services in the near future. At present, Outsourced Logistics accounts for only one-third of the total Logistics market in India, which is a significantly lower proportion vis--vis the developed markets. Growth in this industry is currently being driven in India by over USD 300 billion worth of infrastructure investments, the phased introduction of VAT, the development of organized Retail and Agro-processing industries, along with a strong manufacturing growth. In addition, we expect strong Foreign Direct Investment inflows in the Indian markets, which would lead to increased market opportunities for providers of Third-Party Logistics in India. Therefore, India possesses substantial opportunities for growth in the Supply Chain & Logistics industry in the coming years, notwithstanding the temporary jolt due to the economic slowdown.
Manufacturing Hub
India becoming a manufacturing hub: The world over, India is being recognised as a destination for outsourcing of custom-based, high-technology manufacturing activities. According to Confederation of Indian Industries (CII), India will emerge as one of the global 'manufactured product' outsourcing hubs and reach revenues of approximately US$ 50 billion by 2015. In order to remain cost-competitive, contract manufacturers will be required to provide integrated logistics solutions that will bolster the cost savings potential of the outsourcing initiative. The increasing trend of outsourcing will, in turn, drive strong demand for logistics solutions in the country.
Logistic Potential
Despite problems, The Indian logistics industry is growing at 20% vis--vis the average world logistics industry growth of 10 %. Many large Indian corporate such as Tata and Reliance Industries have been attracted by the potential of this sector and have established logistics divisions. Large express cargo and courier companies such as Transport Corporation of India (TCI) and Blue Dart have also started logistics operations.. Since logistics service can be provided without assets, there is growing interest among entrepreneurs to venture into this business. Indian shippers are gradually becoming more aware of the benefits of logistics outsourcing. They are now realizing that customer service and delivery performance are equally important as cost to remain competitive in this global economy. The Indian economy is growing at over 8% for the last couple of years (compared to the world GDP growth rate of 3%), which implies more outputs and more demand for specialized logistics services. The Indian government has focused on infrastructure development. Examples include the golden quadrilateral project, east-west and north-south corridors (connecting four major metros), Free Trade and Warehousing Zones (FTWZ) in line with Special Economic Zones (SEZ) with 100% Foreign Direct Investment (FDI) limit and public-private partnerships (PPP) in infrastructure development. It is expected that infrastructure development would boost investments in the logistics sector. In India, 100% FDI is allowed in logistics whereas in China, until recently, foreign investment was not allowed in domestic logistics. Almost all large global logistics companies have their presence in India, mainly involved in freight forwarding.
An Industries View
According to a report by Cushman and Wakefield, real estate consultants, Indian logistics industry is expected to grow annually at the rate of 15 to 20%, reaching revenues of approximately $385 bn by 2015. Market share of organized logistics players is also expected to double to approximately 12% during the same period. The report said about 110 logistics parks spread over approximately 3,500 acres at an estimated cost of $1 bn are expected to be operational and an estimated 45 mn sq ft of warehousing space with an investment of $500 mn is expected to be developed by various logistics companies by 2012.
Disclaimer: The presentation has been made based on data available from various web site and govt sources. The presentation team do not take any guarantee for authenticity . The user may varify before using for any commercial purpose.
Reference: Economic Survey of India www.nic.in Ministry of Transports Kandla port Trust Indian Port Association Confederation of Indian Industries (CII) Indian Institute of Material Management World Bank Report on Indian logistics Asian Developement Bank Report on Indian Logistic Sector www.narendramodi.in ( report on port sector) Director General of shipping. www.investmentcommission.in