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Report Summary

The Indian government has assessed an outlay of Rs. 1,217.58 billion for the development of National Highways during the 11th Five Year Plan (2007-2012)

Road transport has a dominant role in India’s transportation sector with a share of 4.6% in India’s GDP in 2007-08 as per the data released by the Central Statistical Organisation (CSO). The aggregate length of roads in India increased from 0.4m km in 1950-51 to 3.314 million km by the end of 2007-08. The road network handles about 65% of the freight and 85% of the passenger traffic. As per the data released by CSO, during the 10th Five Year Plan the average annual growth in road sector is around 10%.

The Indian Railways combined route kilometres (rkm) of three gauges (broad, meter and narrow) went up from 53,596 rkm in 1950-51 to 63,327 rkm as of March 31, 2007 and around 28% of its rail network is electrified. The gross receipts of railways grew from Rs544.91 billion in 2005-06 to Rs627.32 billion in 2006-07. Interestingly, the revenue of Indian railways is growing at a CAGR of around 10% over the last six years, i.e. since 2000-01.

KEY FINDINGS & HIGHLIGHTS
- The road transport’s share in freight traffic has gone up from 13.8% in 1950-51 to over 65% in 2006-07. It is expected to reach 1,231 billion tonne Km (BTKM) in 2011-12, with a share of 65% in the freight movement in India
- During 2007-08, Indian Railways carried 794.21m tonnes of revenue earned cargo, witnessing an excellent growth rate of 8.98% against the previous year
- The government has assessed an outlay of Rs. 1,217.58 billion for the development of National Highways during the 11th Five Year Plan (2007-2012). The share of private sector investment during the 11th Five Year Plan is estimated to be Rs. 877.35 billion
- During the 11th Five Year Plan, the Indian Railways has allocated a total plan outlay of Rs. 2,300 billion. Dedicated Freight Corridors on the Western and Eastern routes will be laid at an estimated investment of Rs. 220 billion.

REASONS TO BUY
- Provides industry structure with reference to global logistics industry, brief about intermediaries, market dynamics and cost structure, growth drivers, major issues and challenges, major players, regulatory issues and outlook.
- The report is useful for logistics players to update their industry knowledge, industry analysts to make use of related industry statistics and other important facts and issues about surface logistics, foreign industry research houses and students enrolled in specialised curriculum in logistics


Table of Contents

CONTENTS
1. Executive Summary
2. Highlights
3. Logistics Industry Structure
3.1 Global Logistics Industry Overview
3.1.1 Components of Logistics Cost
3.2 Indian Logistics Industry Overview
3.2.1 Spending on Logistics in India
3.2.2 Cost Component of Indian Logistics Industry
3.2.3 Infrastructure Development – Boost to Logistics Industry
4. Surface Transport System in India
4.1 Road Transport system in India
4.1.1 Road Network in India
4.1.2 Road network characteristics
4.1.3 Trends in Road Freight in India
4.1.4 Structure of Road Freight Industry
4.1.5 Road Infrastructure and Role of NHAI
4.1.6 Carriers
4.2 Railways
4.2.1 Overview of Indian Railway
4.2.2 Management of Indian Railways
4.2.3 Rail network
4.2.4 Freight & passenger traffic
4.2.5 The Corporatization of Indian Railways
4.2.6 Recent developments
5. Intermediaries and Support Service Providers
5.1 Reasons to Outsource Logistics Functions
5.2 3PL Market Size
5.3 Function of Third Party Logistics
5.4 State of 3PL in India
5.5 Fourth Party Logistics (4PL)
5.6 Clearing & Forwarding Agents
5.7 Warehousing
6. Market Dynamics
6.1 Market size
6.1.1 Road Transport
6.1.2 Railways
6.2 Demand Supply Scenario
6.2.1 Roads
7. Growth drivers
7.1 Economic growth
7.2 Global trade
7.3 Corporate Trend
7.4 Improved infrastructure
7.5 Growth in the manufacturing sector and retail boom
7.6 Emergence of global manufacturing networks and increased FDI
7.7 Information technology
7.8 Liberalization and Deregulation
7.9 Development of E-commerce
8. Technology & Innovation
8.1 Road Transport Sector
8.2 Indian Railways
9. Major Players
9.1 Transport Corporation of India (TCI)
9.1.1 Key corporate data
9.1.2 Business profile
9.1.3 Financial performance
9.1.4 Recent developments
9.1.5 Strategies
9.2 Balmer Lawrie
9.2.1 Key corporate data
9.2.2 Business profile
9.2.3 Financial performance
9.2.4 Recent developments
9.2.5 Strategies
9.3 Gati
9.3.1 Key corporate data
9.3.2 Business profile
9.3.3 Financial performance
9.3.4 Recent developments
9.3.5 Strategies
9.4 Indian Railways
9.4.1 Corporate Profile
9.4.2 Financial performance
9.4.3 Strategies
10. Cost Structure
11. Issues and Challenges
11.1 Introduction
11.2 Road Transport
11.2.1 Infrastructural Bottlenecks
11.2.2 Nature of Road Transportation
11.2.3 Overloading
11.2.4 Ageing trucks increases fuel bills
11.2.5 Taxation
11.2.6 Trucking safety
11.3 Railways
11.3.1 Infrastructural Bottlenecks
11.3.2 Losing Ground to Roadways
11.3.3. Safety, Modernisation and Upgradation
11.3.4 Human Resources
11.3.5 Others
12. Government Initiatives, Schemes & Regulations
12.1 Introduction
12.2 Roads
12.2.1 NHDP
12.2.2 PPP in Road Infrastructure
12.2.3 Draft of National Road Safety Policy
12.2.4 Port Connectivity
12.3 Railways
12.3.1 Major Initiatives during 11th Plan
12.3.2 Dedicated Freight Corridor
12.3.3 Privatisation of Railway Container Movements
12.4 Regulations
12.4.1 Road Transport
12.4.2 Railways
13. Future Outlook
13.1 Road Transport
13.2 Railways
Annexure I: List of Abbreviations
Annexure II: Bibliography


LIST OF FIGURES
Figure 3.1: Elements of Global Logistics Costs, 2007-08
Figure 3.2: Logistics Industry Structure
Figure 3.3: Spending on logistics in India
Figure 3.4: Elements of Logistics Costs In India, 2007-08
Figure 4.1: Road Network Structure in India
Figure 4.2: Distribution of Roads in India, 2007
Figure 4.3: Road Freight Index in India
Figure 4.4: Road Freight (Organised Vs Unorganised)
Figure 4.5: Map of NHDP projects
Figure 4.6: Railway Network
Figure 4.7: Roads and Railways Freight and Passenger Traffic Share (2007-08)
Figure 4.8: Trends in Indian Railways Freight Movement
Figure 4.9: Railway Freight Revenue
Figure 6.1: Market Size of Road Transport Industry (at 1999-00 prices)
Figure 6.2: Indian Railways Revenue Earning Break-up
Figure 7.1: India's GDP Growth Rate
Figure 7.2: India’s Export-Import Growth Rate
Figure 9.1: TCI Segment-wise Revenue Break-up (2007-08)
Figure 9.2: TCI Sales
Figure 9.3: TCI Profit After Tax
Figure 9.4: Balmer Lawrie Segment-wise Revenue Break-up (2007-08)
Figure 9.5: Balmer Lawrie Sales
Figure 9.6: Balmer Lawrie Profit After Tax
Figure 9.7: Gati Segment wise Revenue Break-up (2007-08)
Figure 9.8: Gati Sales
Figure 9.9: Gati Profit After Tax
Figure 9.10: Trends in Operating Ratio of Indian Railways (in %)
Figure 9.11: Trends in Gross Traffic Receipts of IR
Figure 11.1: Railway Vs Roads (1950 – 51)
Figure 11.2: Railway Vs Roads (2007-08)
Figure 13.1: Forecasted Road Freight in India


LIST OF TABLES

Table 3.1: Projected spending on Infrastructure from 2007-08 to 2011-12
Table 4.1: Indian Road Network
Table 4.2: Road Network as on December 2007
Table 4.3: Development of Roads in India
Table 4.4: NHDP Projects
Table 4.5: Indian Railway Zones
Table 4.6: Rail Network 2006-07
Table 4.7: Key Statistics of Indian Railways, 2006-07
Table 4.8: Commodity-wise Break-up in Indian Railways
Table 6.1: 11th Five Year Plan – Investments Details
Table 9.1: Financial Highlights of TCI
Table 9.2: Financial Highlights of Balmer Lawrie
Table 9.3: Financial Highlights of Gati
Table 11.1: Ownership Pattern of Trucks
Table 11.2: Trucks and its Payload Capacity
Table 11.3: Age-wise average distance covered by trucks
Table 12.1: 11th Five Year Plan – Investments Details
Table 12.2: Status of NHDP & Other NHAI Projects (Status: October 31, 2008)
Table 12.3: Ongoing and Sanctioned Port Connectivity Projects
Table 12.4: Head wise Summary of 11th Plan Outlay
Table 12.5 Guidelines of Railway Transportation of Hazardous Goods
Table 13.1: 11th Five Year Plan Projections for Road Freight (2007-08 to 2011-12)
Table 13.2: Average Cost of Truck/ton km
Table 13.3: Forecasts of Traffic - Different Scenarios