Logistics Park in India(Pt) (1)

GROUP NO - 4

LOGISTICS

PARK

MEMBERS

SEJAL BAGEWADI 08B404

AKSHAY GITE 08B414

ANEESH SAJI 08B434

PRATIK RANE 08B444

SHANTI SHUKLA 08B454

VIDYA THOMBRE 07B454

Logistics park in India

A logistics park could facilitate the co-location of value added service

providers. Even final assembly could happen within the park.

A logistics park would thus facilitate

(i) economies of scale, scope and co-location.

(ii) efficiency in transportation by way of integrated, multi-modal access.

(iii) light manufacturing activities.

(iv) co-location of value added service providers.

(v) reduced inventory.

Essential componentsEssential components of a logistics park are

suitable location

rail terminal

air cargo complex

intermediate container terminal

warehousing (temperature controlled and ambient)

value added logistics services

food processing zones

open stocking yards

Benefits

Logistics park create community and economic benefits, such as

Reduced pollution.

single window clearances

greater industrialization

Focused environment management and

greater use of environment-friendly rail systems.

CWC logistics park The CWC Logistics Park is the largest such facility not only in JNP but in

any Port area in the country, has been constructed over a 30-hectare plot and is about 15 km from JNP.

The facility is being developed in two phases, of which Phase 1 (12.8 ha) has been completed and commercial operations have begun.

Three warehouses, of 30,000 sq. ft each, have been constructed for import, export and bonded warehousing facilities, along with a fully paved area of 70,000 sq. m for a container yard.

Construction work on the second phase is on in full swing and should be completed in the first quarter of 2008. On completion, the facility will have covered warehouses of 3,00,000 sq. ft which will cater to the diverse requirements of the trade, including cold storage facilities.

Amenities providedSome of the amenities provided at the CWC Logistics Park

are:

Office block for Customs,users, CHAs, surveyors

EDI connectivity and computer systems

Duly approved firecapable fighting and smoke/fire alarm sensing devices in the warehouse and container yard

Fully electronic weighbridge of 100 tonnes firecapable of weighing a Volvo trailer 4 high masts

Fumigation/lashing/choking/palletisation/shrink wrapping facilities lFull-fledged canteen facility.

Overview of Indian Logistics industry

The Indian logistics industry accounts for a mere 2% of

the $5,000 billion global logistics industry.

In India, majority of the products are still transported by

road and by rail.(primarily EXIM and bulk products)

Owing to general inefficiencies, logistics is a high-cost

activity in India (13% of GDP) compared to 8-9% of GDP

in the US.

The country has the second largest network of roads, the fourth

largest rail network,128 airports, 12major ports, 1 corporate port

and 187 non-major ports.

The domestic logistics industry is growing at 8-10% per annum and

is expected to reach a size of $385 billion by 2015

Logistics hubs in India

Established hubs: Mumbai, Kolkata and Chennai

Emerging hubs: Gurgaon, Vizag, Nagpur and Indore

Promising hubs: Jamshedpur, Alwar, Ahmedabad, Bangalore and Ambala

Nascent hub:-Kochi

Performance/Constraints

India ranks 39th in the World Bank logistics performance index that covers 150

countries.

The inefficiencies in the logistics industry stem from

(i) a fragmented market

(ii) multiple taxes

(iii) physical infrastructure bottlenecks

(iv) archaic labour laws, and

(v) state-centered policies.

National highways that form 2% of the total roads carry 40% of the traffic.

The industry is hampered by high transaction costs, more time taken in

processing exim containers, excess documentation, and high cost of

handling exim containers

The average speed of commercial vehicular movement in India is a

mere 20 miles/hour compared to 60 miles/hour in the West.

In the absence of modern warehousing practices, there are regular

slippages to the extent of 15-25% of cargo business

Growth

The anticipated growth of organized retail will also spur this

industry.

Outsourcing of logistics to will also act as a key industry growth

driver.

A 0.5% cost reduction in logistics will effect an additional 2%

growth in trade and 40% increase in the range of products exported

Introduction of VAT and phasing out of CST, outsourcing activities,

rise in FDI, greater organized retail, higher exports and imports,

and greater logistics linkages are key enabling factors.

India enjoys a time zone advantage, being located between the

global producers and consumers.

Key growth drivers

A new tax regime

Increased external trade

Higher organized retail

More outsourcing and

Huge infrastructure development