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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