Transcript Presentation on LOGISTICS at the Business Roundtable (15

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PRESENTATION ON
LOGISTICS
K.U.THANKACHEN
CONTAINER CORPORATION OF
INDIA LTD.
INDIA- SOME BASIC FACTS
• Land Area: 3,287,590 sq.km
• Population :1.23 billion (2nd highest); Median
Age 27 years
• World’s largest democracy
• GDP nominal : 1.84 trillion USD
• Ranked fourth in terms of GDP Purchasing
Power Parity (USD 4.716 trillion)
• GDP per capita : USD 3800
• Services contribute to two-third (65%) of India’s
GDP
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INDIA-FOREIGN TRADE
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EXPORTS- USD 302
BILLION
Petroleum products
Precious stones
Textiles
Agricultural Products
Chemicals
Vehicles
Engineering Goods
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IMPORTS- USD 503
BILLION
Crude Oil
Precious stones
Machinery
Fertilisers
Iron & Steel
Chemicals
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INDIAN ECONOMY
 Average Growth Rate of 7% . GDP growth rate
declined to 5% in 2012-13 as against 10.5% in
2010-11.
 Nominal GDP growth of 9% expected- to grow
from current USD 1.8 trillion to USD 3.6 trillion
by 2020.
 Huge upsurge predicted in crude steel
production,cement,agricultural output, textiles,
organiized retail,energy consumption, etc.
 Logistics costs high- 13% of GDP
 Critical need felt for upgradation of logistics
infrastructure
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KEY TRENDS IN ECONOMY
• India is moving towards a manufacturing
and services led economy
• Growing migration towards urban centres
• New industrial clusters under development
• Enhanced sophistication in warehousing,
distribution and logistics
• Increasingly skewed modal mix
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MAJOR LOGISTICS
ELEMENTS
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AIR CARGO
RAIL
ROAD
PORTS
INLAND
WATERWAYS
• COASTAL
SHIPPING
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AIR CARGO
• Constitutes 1% of total trade, but accounts for
29% in terms of trade value
• Open sky policy adopted by GOI in 1990s,
wherein domestic and foreign carriers can
operate scheduled / nonscheduled cargo
services between all airports
• Indian airports handled 2.7 MMT of air cargo in
2011-12.
• Delhi and Mumbai airports collectively handle
50% of Air Cargo
• CAGR of 11.5% in past 5 years. Forecasted
CAGR of 10.3% upto 2020
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AIR CARGO PROSPECTS
• Growth drivers – Increasing domestic demand,
Low cost airlines, enhanced connectivity
• Emergence of air cargo centres in Tier II citiesNagpur, Amritsar, Jaipur
• Attractive for third party logistics (3PL) service
providers
• Attractive for freight forwarders
• Scope for enhanced air cargo infrastructure at
airports
• Increasing privatisation of airports
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PORTS
• India has a long coastline spanning over 7,500
kms.
• Has 13 major ports and 176 non-major ports
• Indian ports account for 90% by volume and
70% by value of India’s external trade
• Growth in port traffic from 368 MMT in 2000-01
to 898 MMT in 2011-12 with CAGR of 8.5%
• Cargo traffic expected to grow at 8%; 2500 MMT
expected by 2020
• Maritime Agenda 2010-2020 aims to enhance
investment in port sector. GOI has plans to
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invest INR 2,870 billion in port sector
TRAFFIC PROJECTIONS- INDIAN PORTS
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CONTAINERISATION
• Containerisation levels in India still low at 51% in
comparison to developed countries (70-80 per cent)
• CAGR of 12% in EXIM container traffic in India in the
past 5 years
• Growth in container traffic projected on account of :
Containerisation of bulk commodities (steel,
cement, rice, sugar)
Development of dedicated freight corridor and
Delhi-Mumbai Industrial corridor
 Healthy growth prospects for commodities carried
in containers
Development of new container terminals and
logistics parks
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RAIL
• Largest rail network in Asia and the second
largest in the world (behind U.S)
• Rail network spans 64,456 kms. & more than
7,133 railway stations
• Indian Railways operates 19,000 trains daily,
transporting 2.65 MMTs of freight and 23 million
passengers across the country
• Rail freight growing at 7% annually, crossing 1
billion ton mark in 2013.
• Share in total freight movement vis-à-vis road is
31% only as against 89% in 1951.
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RAIL FREIGHT TRAFFIC
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RAIL- Dedicated Freight
Corridor
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ROADS
• Network spread over 4.7 million kms. National
Highways constitute only 2%
• Roads account for 60% of total freight movement
in the country
• Road freight growing by 9.14% annually,touching
1,250 billion tonne kms. In 2011-12.
• Expected to grow by CAGR of 9.6%
• Under National Highways Development
Programme, 50,000 kms of Highways being
developed in seven phases at investment of INR
3000 billion.
• Unorganised transport sector
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WAREHOUSING
• Warehousing market size expected to grow
at CAGR of 16-18%.
• Demand for modern industrial warehousing
expected to grow exponentially
• Drivers:
– Rising domestic and EXIM freight volumes
– Increased outsourcing to 3 PL players
– Strengthened investment in infrastructure
– Organised retail
– Implementation of Goods and Services Tax
(GST)
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CONTAINER CORPORATION
OF INDIA LTD.
• Leading multimodal logistics professionals in
India
• Incorporated in March, 1988 as a Public Sector
Undertaking under the Ministry of Railways
• Large network of 63 container terminals across
India for handling international and domestic
cargoes
• Operates primarily as a carrier, terminal operator
and warehouse operator for containerised
cargoes
CONCOR’s MISSION
“Our mission is to join with our community
partners and stake holders to make CONCOR
a company of outstanding quality. We do this
by providing responsive, cost effective,
efficient and reliable logistics solutions to our
customers through synergy with our
community partners and ensuring profitability
and growth. We strive to be the first choice for
our customers. We will be firmly committed to
our social responsibility and prove worthy of
trust reposed in us.”
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CONCOR’s FUNCTIONS
• Logistics support to EXIM & Domestic Industry
• Designs, Constructs, and operates Dry Ports (ICDs) &
Domestic Terminals – currently operating 63 terminals
including 48 ICDs/Dry Ports
• Coordinates pan India Containerized Rail Movements
with first-last mile road bridging
• Over 30 million tonnes moved by rail over an avg lead
of 1000 kms, cuts down CO2 emissions by over One
Million tonnes per annum
• Operates Port terminals in
International Port Operators.
collaboration
with
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SERVICES PROVIDED AT
CONCOR TERMINALS
• Train Handling
• Container Handling and Storage
• Single Window facility hosting all agencies such
as Customs, Shipping Lines, Customs House
Agents, Freight Forwarders, Transporters under
one roof
• Warehousing of cargo (Transit, Bonded, LCL etc)
• Associated Value Added Services – Palletisation,
Fumigation
• Door to Door Solutions
• Also handle railway wagons in select locations 28
Rail yard- Operations (ICD-Tughlakabad)
Container Stack Yard (ICD-Dadri)
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Warehouse (ICD-Dadri)
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Warehouse – Inside View
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TRENDS IN BUSINESS
HANDLING OF CONTAINERS IN TWENTY FEET EQUIVALENT UNITS (TEUS)
EXIM
Domestic
Total
3000000
2500000
In TEUs
2000000
2308232
1854959
2421247
1882277
2562297
2018551
2604311
2585686
2136000
2152034
468311
433652
2011-12
2012-13
1500000
1000000
500000
453273
538970
543746
2009-10
2010-11
0
2008-09
Year
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CONCOR’s REVENUES
Total Income
Income from Operations
600
565
521
500
463
480
In million euros
432
444
400
464
525
488
407
300
200
100
0
2008-09
2009-10
2010-11
2011-12
2012-13
Year
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DETAILS OF MOVABLE ASSETS
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No of Container Rakes
No of Containers (Domestic)
No of Gantry Cranes
No Reach Stackers
~
~
–
–
270
20000
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Company is procuring around 1300 High
Speed wagons from IR workshops every year
We are also in the process of acquiring five
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Gantry Cranes and special purpose containers
DIVERSIFIED PORTFOLIO
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Air Cargo Services
Cold Chain- Contolled Atmosphere Stores
Transportation of Reefer containers
Auto Car Logistics
Multimodal Logistics Parks
Participation in Port Projects
Private Freight Terminals
Perishable Cargo Centres
Third Party Logistics
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MULTIMODAL LOGISTICS PARKS (MMLPs)
MMLPs being established for
• Rail access for container trains for movement in both
EXIM and Domestic sectors.
• Access to Indian Railway freight wagons for
loading/unloading of bulk cargo under the PFT policy.
MMLPs to have
• Inland Container Depot – Dry Port
• Domestic Container Terminal facilities
• Railway Goods shed facilties incl Railside Warehousing
• Specialised Warehousing
– Transit
– Bonded
– Cold Chain etc
THANK YOU
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