1. Status & Leverage of Logistics Parks in India
Logistics Parks – A Catalyst For Growth
A. Nagendra

2. Definition
A logistic park is the hub of a specific area where all the activities relating to transport, logistics and goods distribution, both for national and international transit, are carried out on a commercial basis by various activities

3. Key Differentiating Factors
Key factors differentiating a logistics park from ICD, CFS, or warehouses are the VAS such as
Cross-docking
Customization
Stacking
Labeling
Management reporting
Merge – in – Transit
Pick and pack
Repair or refurbishment
Reverse logistics
Contract logistics
Freight consolidation
Packaging
Purchase order management
Quality control

4. Essential Requirements
Suitable location
Rail terminal
Air cargo complex
Intermediate container terminal
Warehousing (temperature controlled and ambient)
VAS
Food processing zones
Open stocking yards
Ancillary production

5. Key Differentiating Factors
Economies of scale
Scope and co-location
Efficiency in transportation
Co-location of VAS providers
Reduced inventory requirements
Single window clearances
Greater industrialization
Reduced pollution

6. Market Size & Growth
Container trade is witnessing a growth rate of about 14 – 15%
Market size for CFS/ICD stood at Rs. 38 billion
CFS share estimated to be 70%
ICD share estimated to be 30%
Increasing level of containerization for erstwhile break-bulk commodities (Steel, cement, rice, sugar)
Growth in India’s Containerised Traffic at ports in ‘000 TEUs

7. Growth Drivers Growth in Exim Traffic
India’s merchandise exports registered a growth of 39.6% in FY’11 compared to 3.8% in the previous year
Imports in India registered a growth of 35.9% in FY’11 compared to 7.1% in the previous year
Increase in Container Traffic at Major Ports
During the last 5 years container traffic at Indian ports has increased at a CAGR of 10.06%
Majority of the container traffic in India is handled
Development of DFC & DMIC along the North West Corridor are expected to drive the demand for container logistic infrastructure
Increasing thrust on developing container terminal on the East and the West Cost of India

8. Growth Drivers Electronics FMCG Textiles and Garments
Currently worth $ 32 Billion
Largest segment is consumer electronics while the largest export segment is of components
FMCG
4th largest sector in the Indian economy valued at Rs. 850 billion
Spends about 10 – 12% o f their operating cost on logistics and warehousing
With the increase in population the demand for FMCG is bound to increase, fuelling the demand for warehousing and cold storage
Textiles and Garments
The total market size of Indian textile industry is $52 billion of which exports constitutes $20 billion
Logistics, including warehousing, account for around 5% of the total costs of production and distribution
MMLP & Mega Food Parks

9. Issues & Concerns Cumbersome Land Acquisition Process
Nomination Premium Issues
Low Level of Containerization in India
Lack of Skilled Manpower
Inadequate IT Initiatives
Absence of a Hub Port

10. Key Players Company / Organization Area in Sqft. Location
Investment in Million Rs.
Safexpress
200,000
Agra
300
270,000
Mahudanchavadi (Tamil Nadu)
250
Apeejay Infra Logistics
39,20,400
Haldia
2 Billion
13,06,800
Kalinganagar
(Orissa)
500
Shree Subham Logistcs
400,000
Jodhpur
Indev Group
871,200
Chennai
1.25 Billion

11. Upcoming Projects Company / Organiation Location
Investment in Bilion Rs.
Balmer Lawrie & Company
Visakhapatnam
1.55
Safexpress
Across the country 6
Vision India Real Estate
Haldia
2,000
Apeejay Infra Logistics
Bangalore & Chennai
Bangalore – 60 Million
Chennai – 50 Million
Anil Group
Vadodara 2
Union Government
7.5
Dedicated Freight Corridor Corporation of India Ltd.
Delhi - Mumbai Industrial Corridor NA
Cochin Port Trust
Vallarpadam
Future Supply Chain Solutions Ltd.
9 Cities in India
Concor
Rajasthan, Andra Pradesh, Gujarat

12. Future Outlook – Existing Hubs
Logistics Hubs
Features
Mumbai
Financial capital of the country
Two major ports – Mumbai and the JNPT (near Mumbai) handle about 60 per cent of the country’s container traffic.
Mumbai is the busiest airport in terms of cargo traffic.
The city has one operational electronics and gems and jewellery SEZ. Formal approval has been given to 19 SEZs of which nine are information technology (IT)/ information-technology enabled services (ITes) based, two each for multi services and gems and jewellery7, and one each for an FTWZ, biotechnology, light engineering, pharmaceuticals and multiproducts and port-based multiproducts.

13. Future Outlook – Existing Hubs
Logistics Hubs
Features
Chennai
Chennai and its surrounding areas continue to be the most important industrial centre in the state of Tamil Nadu.
Four major national highways link Chennai to Mumbai (via Bangalore), Kolkata, Tiruchirapalli (Trichy) and Tirupati.
Chennai Port is the second largest in terms of container traffic
The airport is the second busiest cargo terminus in the country.
The city has four operational SEZs (three IT / ITeS and one multiproduct). Formal approval has been given to 22 SEZs, of which 16 are IT/ITeS based, and one each of multi services.

14. Future Outlook – Existing Hubs
Logistics Hubs
Features
Kolkata
Major manufacturing hub of West Bengal.
The city has four operational SEZs (two IT/ITeS and one each of gems and jewellery and software development). Formal approval has been given to eight SEZs, one is for leather products.

15. Future Outlook – Emerging Hubs
Logistics Hubs
Features
Gurgaon
Gurgaon is the industrial and financial centre of Haryana.
Gurgaon has the advantage of being situated on the Golden Quadrilateral with easy access to the DFC giving it a clear advantage of developing a logistics hub. An eight lane expressway runs between Delhi and Gurgaon and connects to NH-8 (Delhi-Jaipur-Mumbai national highway).
Indira Gandhi International Airport, Delhi is 15km from the city centre, and the city is well connected to the airport by the Delhi Gurgaon expressway.
The city has three IT/ITeS based operational SEZs. Formal approval has been given to 38 SEZs, of which 29 are IT/ITeS based, three each for multi services and biotechnology, and one each for gems and jwellery, engineering and textiles.

16. Future Outlook – Emerging Hubs
Logistics Hubs
Features
Visakhapatnam
Visakhapatnam is one of the major cities on the east coast of India connected by NH-S, a major national highway and a part of the Golden Quadrilateral system of Indian highways connecting Chennai and Kolkata
The Visakhapatnam port is one of the busiest ports in India . The shipbuilding yard situated at Visakhapatnam is the largest in India.
The Visakhapatnam airport is the busiest airport in coastal Andhra.
The city has seven operational SEZs (three IT/ITeS, two pharmaceutical, and a multiproduct and textile). Formal approval has been given to 12 SEZs, of which six are IT/ITeS based, three pharmaceutical, and one multiproduct, textile and aluminum refining each.

17. Future Outlook – Emerging Hubs
Logistics Hubs
Features
Nagpur
Nagpur is located at practically the geographical centre of India. All major highways NH-7 (Varanasi Kanyakumari) and NH-6 (Mumbai-Sambalpur-Kolkata) and major railway trunk routes (Mumbai, Chennai, Howrah and Delhi) pass through the city.
Nagpur holds a strategic position in international aviation routes.
A multi-modal international cargo hub and airport are being developed at Nagpur.
The city has one operational SEZ (multiproduct). Formal approval has been given to four SEZs, one each for IT/ITeS, multiproduct, textile and FTWZ.

18. Thank You