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LOGISTIC OPPORTUNITIES IN
VALUE ADDED SERVICES IN
INDIA

FFFAI
Samir J Shah-Member EX Committee.

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3PL (Third Party Logistics)-
These companies invest on development and maintenance of warehouses, fleets,
and set up teams and/or systems to handle freight consolidation, route
optimization, etc.
The small and medium sized businesses lack the capital for such investments and
are always at a risk of loss due to shipment delays, under-utilized cargo space
and lack of visibility.

While 3PLs in developed markets already provide some or all of these services,
most of the Indian players offer only plain vanilla transportation services.

In India,@
36% of manufacturing firms use third party logistics (3PL) service providers for making dispatches,
30% use 3PL service providers for procuring their material from their suppliers. In fact, a vast majority
of the vendors run their businesses with a fleet of 5 trucks or less.
Thus, there exists clear prospects for 3PLs to, in addition to
transportation, offer tailored solutions to the businesses based on their
size and needs - supply chain consultation, shipment
routing/consolidation, freight audit, freight forwarding etc.
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Logistic Infrastructure-
Goods are transported mainly by road and rail in India.

Road transport is controlled by private players,
Rail transport is largely handled by the central government.

With the second largest road network in the world, road contributes to 54.5% of the
freight transport.
Road is preferred because of its cost effectiveness and flexibility.

Rail is preferred because of containerization facility and ease in transporting ship-
containers and wooden crates.
In order to encourage trade by small scale industries, Indian Railways has started a
road-railersystem where container vehicles are capable of running both on
highways hauled by trucks and on rail.
The 'roll-on, roll-off' ('RO-RO') concept between Mumbai (Kolad) and Goa (Verna)
exists. Privately owned trucks are loaded with their goods which are driven on to a
rake of flat cars and are carried (trucks and their cargo) to the destination.

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Logistic Infrastructure-

Sea is another complementary mode of transport.
95% of Indias foreign trade happens through sea.

India has
12 major ports, six each on the West and East coasts and
185 minor ports.

Following table shows that the preferred mode of cargo movement in India is Road
as compare to the Rail, Air and Sea.

Because roads are almost covers all the areas in India as compare to the other
mode of transportation.

Due to underdeveloped infrastructure and other service to choose best mode of
transportation is road.

As road covers almost all the rural, urban and hilly area as compare to railway.

In India cargo movement by air is least among the other three modes this due
to high cost involved in this mode of transportation
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Mode of Transport % of Total cargo movement
Air 2.5%
Sea 20%
Railway 23%
Road 54.5%
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Government is now betting big on public-private partnership projects
(PPPs) for the development of
highways,
port connectivity,
dedicated freight corridors and
establishment of free trade warehousing zones (FTWZ).

There is need for Exim based logistics infrastructure like number of ICDs
needed would be doubled in next 5 to 10 years and critical need for Free
Trade Warehousing Zones (FTWZ)
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TOTAL ESTIMATE OF BUSINESS SPACE IN LOGISTICS
SECTOR IS AS FOLLOWS
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Warehouses-
The role of a warehouse has also transformed from a conventional
storehouse to an inventory management set-up with a greater emphasis
on value added services.

Warehouses now look to provide additional services like
consolidation and breaking up of cargo,
packaging,
labeling,
bar coding,
reverse logistics etc.

It has emerged as a critical growth driver, leading to large investments
by logistics companies for the development of warehouses and logistics
parks. 26% cost of logistics in India, is due to warehousing, packaging
and losses. The distribution practice of pushing goods down the channel
might be responsible for high increase in the inventory and warehousing
costs.
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Name of Industry % share of Logistic cost in total sale
Cement 15%
Steel 6%
Food and Beverage 5%
FMCG 4%
Durable 4%
Apparel 3%
Auto 3%
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THE BELOW TABLE SHOWS THAT ZONAL ATTRACTIVENESS IN INDIA
Zone SEZs Retail
Develop
ment
Warehouse
Capacit
y
Logistics
park
South 40% 20% 20% 30%
West 55% 50% 60% 50%
North 5% 20% 15% 10%
East 0% 10% 5% 10%
Out of the four zones West zone is better develop as compare to the
other zones and the least develop zone is East zone. South and North
are shows the 2nd and 3rdposition for the development of the zone
respectively.
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There is urgent need to create modern agro
warehouses. This would be critical for sustaining for
sustaining agriculture.

As per Planning Commission, agro warehousing
needed is 35 mn MT in next 5 to 10 years.
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Inland Container Depot- Standardization of containers promotes a
mechanized form of cargo handling. Containerization has also led to
demand for services of ICDs and CFSs for stuffing/de-stuffing of
containers and also custom clearance away from the ports. ICDs will
benefit significantly from increased containerization of goods and entry
of private rail operators. The ability to control traffic flow is the key for
operating a CFS. A CFS/ICD that operates its own container terminal,
freight forwarder or shipping line is well positioned to benefit from the
surge in ocean freight. Presence of railway siding would play a key role
in freight handled and throughput of the ICDs. Another critical success
factor for ICDs would be road connectivity and proximity to industrial
belts or SEZs
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Custom Clearing and Forwarding- It is to provide timely and
accurate confirmation of shipment status via the web, EDI (electronic
data interchange), or other communication tools as appropriate and to
providing on-time service and real-time order status. It is focused on
creating quality service tailored to meet the unique delivery
requirements of the customer
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Packaging-
In India, consumer preference is increasing for
clean,
safe,
hygienic
nutritious and
properly packed, labeled and presentable food items.

Introduction of modern state art technology in processing, packaging, labeling,
preservation of perishable goods is required to improve "quality" for domestic
and export markets.

With economic liberalization and free trade under WTO, the domestic products
have to maintain "quality" to face the stiff competition from imported foreign
perishable goods.

Packaging is most important for jewelry and gems logistics. Until the jewelry
pieces are tactfully packed and are safe, the entire investment in the logistics
may be futile. Undoubtedly, all sorts of jewelry are precious and require special
care while packaging. All measures are taken by the jewelry retailers to ensure
that the precious merchandise is well protected and cushioned to avoid damage
from jerks and accidents
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Integrated Transportation Hub-
40% cost of logistic in India is due to transportation.
Inventory and transport planning is a key to reducing operational cost of distribution.

98% of manufacturing firms in India have a contract with trucking companies for making dispatches and
only 11% own their own fleet of trucks.

So, to reduce cost we have need for integrated transportation hub.
It requires detailed information of
major transporters,
users,
operators of Logistics Parks to determine need gap of
institutional,
legal,
infrastructure,
facilities desired,
demand assessment to estimate of total number of commercial vehicle arriving and leaving the
park, and warehousing requirement, parking space, traffic circulation plan.

It can be seen that
about 4% of firms have less than 5 suppliers,
about 85% of firms have less than 5 plants,
about 14% of firms have less than 5 regional distributors, and
about 9% of firms have less than 5 retailers.


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Integrated Transportation Hub-

A similar statistics is obtained for other ranges of suppliers, plants, distributors, and retailers.

What is worth noting is that
63% of firms have more than 100 suppliers,
about 39% of firms have more than 100 distributors, and
77% of firms have more than 100 retailers.
17% of firms claim to have more than 500 suppliers.

The same for distributors and retailers is 22% and 54% respectively.

This is perhaps where difficulties in managing logistics in India due to larger the number of suppliers or
distributors.

So, higher is the cost of coordination.

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Integrated Transportation Hub-

Of the manufacturing firms that operate more than one plant,

48% of these plants are located more than 100 kilometers away from each other,
33% of these plants are located more than 500 kilometers away from each other and
18% of these plants are located more than 1000 kilometers from each other.

Similarly, on an average,
only 4% of suppliers are located within 5 kilometers of the manufacturing plant,
about 13% are located within 5-25 kilometers of the plant,
16% are located within 25-100 kilometers of the plant and
about 67% of suppliers have facilities that are more than 100 kilometers away from the plants.

Location policies of the past may have forced some firms to locate plants away from each other.

However, this may be coming to haunt today as the cost of coordination increases and the ability to provide
quick response to customer requirements might reduce.

This problem gets exacerbated with suppliers.

Manufacturers have to either develop suppliers separately for each location thereby, increasing the number
and affecting consistency in quality, price & delivery times, else material has to travel longer distances if
there is a common supplier to all plants
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BUSINESS OPPORTUNITY IN INTEGRATION
TRANSPORTATION HUB-

Each location where a CONCOR DCT is located
No. of locations 15; Total Project Cost Approx Rs.
1125 Cr
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Inventory Management-
24% cost of logistic in India is due to inventory management.
Inventory and transport planning is a key to reducing operational cost
of distribution.
Inventory management is required to minimize cost of fulfill demand
and supply.

For example, the low change in order processing & administrative costs in the
cement sector could possibly be due to the use of call centers by various
producers for order processing and dispatch planning.


Labeling and Order Processing-
10% cost of logistic in India is due to order processing and
administration.

Order processing includes receiving orders from customers, prioritizing
orders, scheduling dispatch etc
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Cold Chain Facility-

Cold chains are essential for storage and distribution of
perishable goods and
temperature sensitive pharmaceuticals and
biological preparations and

forms an integral part of their supply chain.


The present cold storage capacity in the country is grossly inadequate and with a
positive future outlook for
the agro,
food processing,
retail and
pharmaceutical industry

there is an urgent need to scale up and develop integrated cold chain facilities
across the Country.
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Dairy and Milk Production
Poultry Production
Fisheries Production
Horticulture Production

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A)Dairy and Milk Production-
With an estimated 86.8 million tons of annual milk production from animals
managed by nearly 70 million farmers, India is the top-most milk producing
country in the world.
The average annual growth is about 5.6%.
With rapid industrialization, economic growth and 250 million potential
economically strong domestic consumers of milk and milk products, there is a
very strong potential for future growth of the industry.

In absence of properly developed infrastructure for preservation of
raw milk in local areas many plants in Govt. sector collect fresh raw
milk from the far-flung rural areas (each producer having very small
quantities) twice a day , send it over a long distance to towns for
processing, incurring high cost on transportation. This erodes the
profitability.

As a result, many plants have become uneconomical, non-functional or they
are working much below their potential capacities.
Alternative strategies need to be developed to store raw milk in bulk coolers in
the rural area and transport it in bigger volumes at a longer interval.
There is also a need to use alternative and cheaper energy sources
to store cool milk, and develop rural markets so that much of the milk
produced in the rural areas finds consumption avenue in the nearby
local markets
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B)Poultry Production-
The annual growth rate is
8-10% in egg and
12-15% in the broiler industry.

With the annual production of 33 billion eggs, India is the fifth worlds largest egg
producing country.
It also produces 530 million broilers per year.

According to a Kuwait based broiler Company, the demand in Gulf (West Asia) is
60000 tons of frozen chicken per month. In Kuwait ,the firm sells 1000 metric tons
per month.

One of the challenging problems faced by the Indian exporters so far is
that the export demands are in huge quantities while the quantity
available for export per lot from India is very small due to fragmented
small sized farms with little or no facility for processing, refrigeration
and marketing with infrastructure for maintaining a cold chain during the
transportation of products.
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C)Fisheries Production-

India has a coast line of about 6100 km ,
export economic zone of 2.02 million sq km with a continental shelf area of 0.5
million sq km along with peninsula.

India ranks 3rd in world production with total annual fish production of about 5.65
million ton.

Most of the production is in the coast line states. They have grounds for captive
rearing of prawns and fish and have many processing plants some of which are
100% export oriented units.

For that, resource specific vessels for exploitation of deep sea
resources, development of fisheries infrastructure facilities on landing
sites, harbors and establishing cold chain from production to
consumption is required
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D) Horticulture Production-

India may be among one of the worlds leading producers of horticulture products but more than
half the fruits and vegetable produce end up rotting as waste, even before it arrives in the market
for sale.

Poor post-harvest methods of warehousing, storage and unsafe transportation from point of
production to point of sale are among most prominent causes of this avoidable value drain.

The key issues in the Agri-logistics related to the development of the cold
chain industry are of
non-standard pricing,
limited financial capabilities of the transporters,
opportunistic profiteering,
lack of scientific handling of produce and
consequent high prices and
limited choices for the consumers.

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D) Horticulture Production-2

As per industry estimates,
approximately 104 million tonnes of perishable product moves in the country in a year.
Out of that around 100 million tones goes through the non-reefer mode and
remaining 4 million tonnes goes through reefer transport.

Out of the 100 million tonnes of perishable load
96 million tonnes directly enter in local and regional markets.
Out of this volume, around 86 million tonnes is sold through the wholesale and retail outlets
based in regional and local markets without warehousing and cold storage conditions and
10 million tones is the produce that requires cold storages even when they enter the markets.

Accordingly the requirement of cold chain across the country by the stakeholders far
outstrips the handling capacity of the available cold chain infrastructure in the
country.

Container Corporation of India (CONCOR) is moving into cold chain logistics in a big way and is
developing a cold supply chain business in the form of suitable logistics infrastructure as well as
state-of-the art storage facilities to sell fresh fruits and vegetables in the global food market.
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Reverse Logistics-

Many logistics movement of goods go beyond the conventional supply
chain perspective and thereby generate additional business
transactions.
These include
failed components repaired to serve as spare parts,
unsold stock being recovered,
old products improved to meet latest standards again,
reusable material returned and
refilled / re-developed etc.

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Reverse Logistics-2

Reverse product flows may generate value on a product, component, or
material level.

While earlier, the manufacturers tried to manage their reverse logistics
system in-house, manufacturers are now also seeking the option of
outsourcing of their entire reverse logistics network to third parties.

However outsourcing the management of reverse logistics flow entails
that the third party service provider has the mechanism to respond to the
customers query, develop suitable system to collect the old product from
the customer and if required possibly replace it with a new product,
deliver the product to the manufacturers location.
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Air Cargo-

The use of air as the mode of choice for the movement of cargo
has increased over the past few years.

At present India contributes over 1% of the world air cargo traffic.

The five major airports (Mumbai, Delhi, Kolkata, Chennai and
Bangalore) account for around 88% of the total air cargo
handled in India.

The major commodities being air freighted out of India are
garments,
machinery components,
pharmaceuticals,
dyes,
chemicals and
perishables such as fruits, vegetables, flowers, fish and meat.
Telecom items,
gems & jewelry,
electronics,
IT related equipments etc.
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THERE IS URGENT NEED FOR AIR CARGO PROCESSING SPACE, IN LIGHT OF
CARGO CAPACITY ENHANCEMENT AT AIRPORTS AND ARRIVAL OF WIDE BODIED
JETS CAPABLE OF CARRYING SUBSTANTIAL CARGO AT AN ECONOMICAL COSTS.
CURRENT CAPACITY IS 50000 SQ.M. AND THE TOTAL PROCESSING SPACE
REQUIRED IS 200000 SQ.M SIZE OF BUSINESS IN AIR CARGO IS AS FOLLOWS-


Current worth is Rs. 100 bn which is expected to increase to Rs. 400
bn in next five years
International Air Freight 0.92 Mn MT
Domestic Air Freight 4.3 Mn MT
80% of international cargo is handled at Delhi & Mumbai
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GOVERNMENT INITIATIVES TO RAISE BUSINESS IN AIR CARGO-


Modernization / restructuring of Delhi, Mumbai, Chennai and
Kolkatta Airports
Greenfield airports at Bangalore, Hyderabad, Goa, Pune and
Navi Mumbai
City side development of 35 Non-Metro airports
MoCA planning to allow foreign airlines to stake of upto 75%
in cargo airlines
Indian has started automation of cargo operations
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Business Opportunity in Air Cargo-

Total warehousing & processing space required-2,00,000 sq. m.
Total available space-50,000 sq.m => Infrastructure Gap of 1,50,000
sq.m.
Project size = Rs. 300 Crore (@ Rs. 20,000/ sq. m. of development)


Prospective Areas-
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Courier and Express Services- Cost and time efficiency from smoother
roads combined with expected growth in document shipments and high-value
products such as mobile phones, network hardware, jewelry and branded
drugs will allow the express industry to continue to grow at 25%-plus rate.



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Order Consolidation and Load Optimization-Consolidation
activity is matching multiple partial shipments into volume
shipments. Expert Transportation Coordinators uses
Transportation Management System to confirm the
match and plan the shipment according to delivery
requirements. This consolidation and optimization
capability yields cost-savings and improved on-time
delivery. multi-stop consolidation services amongst
customer orders or within a single client's orders
delivering to the same consignee or geographical
areas, providing significant transportation savings for
participating clients
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Drayage- Drayage services is to/from ports and rail yards or to a customers
site to support intermodal and international shipments. It is services as part of a
total logistics solution, allowing customers to execute various aspects of their
supply chain with one source. It to manage vendors, freight payment, and
ensures that everything is on schedule for on-time delivery. All of these services
are conveniently invoiced, saving the customer the administrative expense of
managing and processing multiple invoices from each provider.


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Track and Trace- Track and Trace services depend on the solution that
works best for the client. Shipment information can be made available on the
web, via auto e-mail notifications, or customers can contact the service
provider to know the location of the shipment and to provide tracking
services for shipments of all modes, including intermodal, rail and
international shipments.

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Transload Services- Transload services entail the physical transfer of goods
from one means or mode of transportation (i.e., truck, rail, air, ocean barge, or
intermodal) to another. It is helpful in multimodal transportation, product arriving
in railcars, intermodal containers, and domestic trailers can be received, and in
turn ship product out via almost any transportation mode prescribed by the
customer
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STATE WISE OPPORTUNITY IN SCM AND LOGISTICS-
Logistics Opportunity in Rajasthan

1) New ICD for Rajasthan- Rajasthan State Industrial Development and Investment
Corporation (RIICO) and Kribhco Infrastructure Limited (KRIL) to set up a Rs.150-crore
rail-linked inland container depot with allied facilities at Beda Banki village near Hindaun
City railway station in Karauli district.The KRIL also plans to set up a Free Trade
Warehousing Zone.
2) Air Cargo Complex- The air cargo complex at the Sanganer Airport Jaipur provides
facilities for customs inspection and shipment of non-bulk goods.
3) Rajasthan State Industrial and Investment Corporation (RIICO)- RIICO, a State
Government agency, has developed more than 300 industrial areas across various parts
of Rajasthan. These industrial areas are developed with water, power, roads, shops and
telecommunication facilities. Currently More than 26633 industries are in production
within the industrial areas developed by RIICO in Rajasthan. Some of the Important
Parks Developed by RIICO are :
Export Promotion Industrial Parks (EPIP), Jaipur, Jodhpur and Neemrana
Special Economic Zones (Jaipur and Jodhpur)
Agro Food Parks (Kota, Jodhpur, Sriganganagar & Alwar)
Information Technology Parks (Jaipur, Jodhpur, Kota and Udaipur)
Gems & Gold Jewelry Complex (Sitapura, Jaipur)
Textile City (Bhilwara)
Leather Complex (Manpur Macheri, Jaipur)
Ceramics Complex (Khara, Bikaner)
Minor Mineral Complexes(Karauli, Sawai Madhopur, Dhoinda in Rajsamand)
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CONT..
4) Delhi-Mumbai Industrial Corridor Project- With the $50 bn Delhi-Mumbai Industrial Corridor
Project on the anvil, the State is bound to witness the up gradation and expansion of its industrial
clusters. Nearly 40% of the Industrial Corridor will pass through Rajasthan, throwing open
unparalleled business possibilities in the field of logistics. Strategically positioned between the
industry-laden northern states and critical trade ports of the western states, Rajasthan presents
immense opportunities for logistic solution providers to facilitate easy movement of freight.

5) Retail Industry in Rajasthan- With growing purchasing power, the State is showing a tremendous
opportunity. The emerging cities and overall economic boom have attracted top retail brands and
chain stores to Rajasthan. Opportunity is in Chain Stores, Malls, Hypermarkets, Convenience Stores.

6) Stone Industry in Rajasthan- Rajasthan is the hub of stone activity in India, accounting for
approximately 65% of Indias stone production.
a) Marble Stone- Rajasthan is the main depository of marble, reserves currently stand at 1144 million
tonne, out of Indias total marble reserves of 2216 million tonne (90% of total marble production of the
country). This industry is spread over the districts of Nagaur, Udaipur, Rajsamand, Banswara,
Dungarpur, Jaipur etc. The main varieties in Rajasthan include Green, Makrana Albeta White, Jhiri
Onyx, Phalodi Pink, Ambaji White, Indo-Italian, Babarmal Pink, Bhainslana Black, Forest Green,
Forest Brown, Agaria White.b
b) Granite and Lime Stone- In Rajasthan, Granite reserves currently stand at 8479 million cubic meters
out of Indias total reserves of 42916 million cubic meters and 70% of the countrys Flaggy limestone
(Kota stone) reserves from rajasthan. Other stones include Sandstone, Slate are also reserves here.

7) Various Industry Sectors in Rajasthan- Agriculture, Cement, Energy, Gems and Jewellery,
Handicrafts, Mining Stone, Textile, Tourism.
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LOGISTICS OPPORTUNITIES IN MADHYA PRADESH


1) Industrial Policy- The Government of MP has devised an investor friendly industrial policy, which is aimed at
achieving global competitiveness. The policy emphasizes on industrial growth in the state through adopting
cluster approach, establishing specialized infrastructure and offering favorable incentives. The main thrust of this
policy is:
Establishment of a Madhya Pradesh Trade and Investment Facilitation Corporation which would take
decisions about rationalization of taxes, facilities of mega projects and other related matters.
Enacting an Industrial Facilitation Act and to change the rules of business with a view to make single window
system decisive and result oriented.
Developing infrastructure for supporting the identified industrial clusters
Reviving closed down/ sick industrial units by granting special packages.
Attractive incentive schemes.

2) MPAKVN- In a bid to build a competitive environment; industries and their ancillaries would be promoted in
clusters based on the availability of raw materials, skilled labour and market potential. Under this Industrial Policy
through Madhya Pradesh Audyogik Kendra Vikas Nigam Ltd (MPAKVNs) scheme, the State Government, has
identified industrial clusters. Many of the industrial giants have their establishments in these areas, however 44%
of developed area is still untapped and open for investment.

3) Warehousing- The state requires an immediate addition in capacity at trategic locations to ensure quality
services to the target market. The partition of the state has affected its warehousing capacity. The Government is
taking several initiatives to promote investments in this area to rebuild its warehousing and logistics might. The
state offers a lucrative utilization rates of 80-85%, which can be as high as 90-95% at strategic locations. The
Governments also invites private developers through lucrative business value propositions. The Government has
identified 11 locations as the hubs requiring immediate attention and have the capacity to become the major
distribution centers for logistical activities and management. Further, 23 other locations require capacity building
to meet requirements.
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4) Location Advantage- Central location of MP facilitates equidistance connectivity with major Indian
cities. The strategic location is the key incentive for various industries to establish their logistics hub
in the state. MP is the connecting link between the northern & southern states and eastern &
western states of the Country. All major highways and rail routes passes through the state. On
completion, the North-South and East-West corridor passing through the state will provide further
impetus to the logistics sector due to improved connectivity with key metro cities. Companies can
save a maximum of 25% of the transportation cost by locating their warehouse in MP via locating it
in North. Similarly saving of 17%, 23% and 16% can be made in MP via locating it in southern,
eastern and western part of the country. Since 90% of the operational cost of a logistics company
lies in transportation, substantial savings can be made by locating the company in the central
region. The peaceful labour environment in the state makes MP a favorable business destination.
Well developed infrastructure of roads and airports facilitates timely and expedite movement of
goods across the country.

5) Cold Chain Facility- Cold chain facilities have the potential to cater to the needs of
pharmaceutical, biotechnology and food processing companies. A central unit will facilitate
distribution in the wider area without locking investment in creating such expensive facilities in
multiple places.

6) Integrated Transport Terminal- Madhya Pradesh State Industrial Development Corporation
(MPSIDC) is planning to construct a state-of-the-art Integrated Transport Terminal, which will
provide one stop-shop solution for all the logistics requirements of a company. The State
Government is willing to partner with private players, foreign investors and other domestic and
international companies in its endeavor.

7) Central Warehousing- A central warehousing facility would facilitate uninterrupted supply of raw
materials and speedy distribution of finished goods across the country. Decrease in lead time will
further result in substantial cost saving for the company. So, Madhya Pradesh offers multiple
opportunities in the logistics sector specially for companies engaged in manufacturing and
distribution activities.
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LOGISTICS OPPORTUNITIES IN KERALA


1) Tourism- Picturesque locales, breathtaking scenic delights, treasure trove of
architecture, Kashmir of the South - tourists flock to Kerala to savor wondrous creations.
The burgeoning tourist industry is a huge money spinner for the country.

2) Sea Food- Sumptuous sea fare dished out by restaurants of Kerala, scores brownie
points with tourists visiting the backwaters. It comes as no surprise then that seafood
industry is one of the top revenue earners for Kerala. It is famed for supplying about
2,50,000 tons of squid, tuna, shrimps, lobster, cuttlefish and sardines, accounting for
about half of the countrys total output.

3) Vegetation and Horticulture- A variety of spices are also the mainstay of the booming
Kerala industrial sphere. Ginger, chillies, cardamom, turmeric, pepper estates dot this
magnificent state. Ninety six percent of Indias pepper is credited to this glorious state.
Pepper plantation occupies an astounding one hundred and fifty eight thousand hectares.
An assortment of spices boasts of medicinal properties and are also used as herbal
healing products, besides enhancing the taste of lip smacking delectable fares. India is
one of the biggest exporter of spices in the world.

4) Electronics sector- The electronics sector is an up and coming industry, registering
itself as a top revenue earner. The Electronics Technology Park of Trivandrum registers
high footfalls.
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5) Natural Minerals- Kerala is also a rich repository of several minerals and fine grained soil.
Sillimanite, Ilmenite, Monazite abounds in this state. Fire clay, Silica, Ball clay and China clay,
granite and graphite also occurs in large quantities in different parts of Kerala, paving the path
for a flourishing industry.

6) Petroleum and Natural Gas- Petroleum and natural gas products is also an important
industry of Kerala. The Cochin Refineries Limited, producing seven million tonnes of petroleum
and natural gas, is a jewel in the crown of Kerala.

7) Rubber Industries- The rubber industry occupies about 3.84 lakh hectares and boasts of a
turnover of 3.70 lakh tonnes that amounts to about ninety percent of the countrys total rubber
production.

8) Infrastructure- The infrastructure of a state determines its prosperity index. A sound
infrastructure depends on the smooth functioning of health sector, education, transport, power
supply, banking facilities, telecom sector. Keralas infrastructure reflects untiring efforts on the
part of the Government to showcase the state as a lucrative business hub.

9) IT sector- The information and technology sector, fuelled by the technology hub and the
Software Training and Development Centre situated in Trivandrum, is all geared up to become
a successful revenue generator.

10) Various Industry Sectors in Kerala- Handloom, Handicrafts, ProcessedFood and Spices,
Ayurvedic\Herbal\Pharmaceuticals, Rubber and Moulded Plastics, Wood-based products,
Electrical and Electronics, Chemicals, Machinery
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Welcome to India !!!!!!!
The Members of FFFAI have the ability and
willingness to partner with each and every of
you on all or any of the various Value Added
Logistic Services.
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THANK YOU
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