Transcript Slide 1

CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Building an Efficient Transportation
& Supply Chain System
AMIT CHAUDHRI
CEO - KRIL
09.12.2014
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Synopsis
•
•
•
•
•
Introduction.
Current Logistics infrastructure in India.
Crystal Ball Gazing.
Potential areas of new business.
The Path Ahead.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Supply Chain
A Supply Chain is a global network to improve the
flows of material and information between
suppliers and customers at the lowest cost and
the highest speed.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
CUSTOMERS
Shipping Lines
CHAs
Exporters / Importers
Freight Forwarders
Domestic Manufacturers
PROVIDERS
Indian Railways
Container Train Operators
Terminal Operators
Ports
Governments & their Agencies
Road hauliers
 Customs
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
• Railways - Loading in MMT & earnings
• Customs – Earnings
• Container Train Operators – Earnings & asset
utilization
• Government – Facilitation & infrastructure
Development, Economy indices (GDP/BOP) &
Taxes
• Customers – Cost and Service levels
• Ports – Throughput and asset utilisation
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
No. OF DOCUMENTS REQUIRED FOR EXPORT
10
9
9
8
8
INDIA
BRAZIL
8
7
7
6
5
4
4
DENMARK
SINGAPORE
4
3
2
2
1
0
FRANCE
CHINA
PAKISTAN
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
AVERAGE COST TO EXPORT ONE
CONTAINER (IN US $ PER TEU)
1800
1600
1540
1472
1400
1200
1000
945
800
744
600
450
456
MALAYSIA
SINGAPORE
500
400
200
0
CHINA
DENMARK
INDIA
MEXICO
BRAZIL
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
CHANGING FACE OF MULTI-MODALISM
-A TESTING TIME
• ENHANCED EXPECTATIONS OF CUSTOMERS .
• SHIFT FROM RAIL/ROAD BASED MOVEMENT TO
TOTAL LOGISTIC SOLUTIONS .
• DOOR-TO-DOOR SERVICE THROUGH SINGLE WINDOW
SERVICE PROVIDERS .
• THIRD PARTY LOGISTICS- INCREASING TREND IN THE
DOMESTIC SEGMENT
• LOGISTICS COST REDUCTION.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
COST is the prime concern
Global Meltdown has made them economize
Competition is helping them bargain hard
Mckenzie Report – talks of high logistics costs in developing
economies (13-14%) as compared to those in US, Europe (around 8%)
weighs very heavily on mind of customers
Looking to maximize their margins
Want better access to information
Ease in Transaction & better service levels
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
ISSUES
Multiplicity of Ports
• Vast coast line
• Multiplicity of management
• Capacity creation / augmentation
Vast Hinterland
• Medium and deep inside destinations.
•
•
•
•
Regional disparity in Export / Import business
Door-to-Door service needed
Inland Container Depots (ICDs)
Container Freight Stations (CFSs)
Rail connectivity and road linkages
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
• Vast coast line
PORTS
• Multiplicity of management
• Capacity creation / augmentation
Vast Hinterland:
• Medium and deep inside destinations.
Multiplicity of Ports:
• 13 major ports and in India - Calcutta, Haldia, Paradip,
Visakhapatanam, Ennore, Chennai, Tuticorin, Cochin, New Mangalore,
Mormugao, JNPT, Mumbai Port Blair and Kandla.
• About 180 minor and intermediate ports
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
ABOUT ROADS
• Indian Road Network - 33 lakh Km
• Second largest in the world
•
•
•
•
•
•
•
Length (In Km)
Expressways
National Highways
State Highways
Major District Roads
Rural and Other Roads
Total Length
200
79,243
1,31,899
4,67,763
26,50,000
33,00,000 (Approx)
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
ROAD Contd….
MODAL SHIFT
• About 65% of freight and 80% passenger traffic is
carried by the roads.
• National Highways constitute only about 1.7% of the road
network but carry about 40% of the total road traffic .
• Number of vehicles has been growing at an average pace
of 10.16% per annum over the last five years.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
ROAD NETWORK
• Focus area
NHDP – Golden quadrilateral, diagonals
Pradhan Mantri Grameen Sadak Yojana
• Fragmented
• Cost effective over short distances (500 km)
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
RAILWAYS
• Bulk commodities
• Core sector.
• Mover and shaker – key player in connecting
hinterland.
• Transformation and facilitator.
• Unified command.
• Faster & cost effective over long haul.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
1
18
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
COAST
•
•
•
•
•
•
•
•
•
•
Bordered by Bay of Bengal, Arabian Sea and Indian Ocean.
Coastline of more than 7,000 kms.
Extensive network of inland waterways and seaports.
Inland waterways include rivers, canals, backwaters and creeks.
Total navigable length of inland waterways is 14,500 km.
Inland Waterways Authority of India (IWAI) statutory authority
Three national waterwaysAllahabad Haldia stretch of the Ganga Bhagirathi Hooghly river
Sadiya Dhubri stretch of the Brahmaputra river system
Kollam Kottapuram stretch of West Coast Canal along with
Champakara canal and Udyogmandal canal.
• 13 major ports and in India - Calcutta, Haldia, Paradip, Visakhapatanam,
Ennore, Chennai, Tuticorin, Cochin, New Mangalore, Mormugao, JNPT,
Mumbai, Kandla and Port Blair.
• About 180 minor and intermediate ports
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
THE
CRYSTAL BALL
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
INDIA – 2020
An Economic Super Power
• GDP to grow at 8% per annum.
• India’s GDP will over take the GDP of Italy, France/ Britain, and
Germany by 2020.
• India will be fourth largest economy after US , Japan and China .
• Indian GDP is expected to be about $2.5 trillion .
• Change in sectoral Composition of GDP in %
2020
Agriculture
6.0
Industry
34.0
Services
60.0
• International trade in goods as % of GDP will increase to 35.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
INFRASTRUCTURE -2020
• Integrated Transport Policy
• Environmental and social consideration.
• Port infrastructure :
• Addition of port capacity of more than 45 million TEU at Indian
Ports. Mumbai area will cross 20 million mark.
• Accelerated growth to short sea bridging with development of
small/intermediate ports, Sethu Samundram Project.
• Inter linking of all weather rivers encouraging Inland Water
Transport.
• Air Port Infrastructure:
• Congestion free dedicated air cargo terminals.
• Customised warehousing facilities
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
INFRASTRUCTURE -2020
•
•
•
•
•
Railways
DFC on golden quadrilateral and on diagonals
Longer double stack container trains at 100 KM/Hr.
No more congestion on IR system- Transit time guarantees .
South trans Asian rail connectivity from Singapore-China to Iran
moving into Europe .
• Piggyback and RORO systems - decongest national highways.
• Consolidation in container train operation - maximum six players.
•
•
•
•
Roads
National highways developed to 8 Lanes.
Transport Nagar at every 200 KM.
State high way developed to 4 lanes.
• Initial modal shift to Road – but by 2015 Environmental concerns cause
modal shift back to Rail.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
LOGISTICS -2020
 Global Customer
 Global Manufacturing
 Vertical Integration
 Movement of Material, Information and Funds across
continents.
 Efficiency, synchronization,
and competencies in
network
 The control of logistics is more important than actual
execution.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
LOGISTICS -2020
• Changes in legal regimes -- no paper work -- borderless
transport across States and Countries
• Direct call of Post Panamax vessels. Seamless hinterland
connectivity…….
• Reduction in shelf life of products, Reduction in bulk
transportation, more finished goods--Containerisation …
• 3 PL- 4PL Logistics to grow minimum 25% per annum to
increase share in logistics from 3% to 23%.
• 5PL will be a reality in India.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
LOGISTICS -2020
 Chain of SEZs, Large Distriparks outside city limits - provide valueadds, effective distribution management, modern storage, subassemblies, palletisation, retailing etc.
 Seamless EDI connectivity through Integrated Networking linking to
different users and service providers-Data/Document & Fund Flows
synchronized through EDI.
 One point (door to door) liability.
 Cold Chains spanning the country providing Controlled Atmosphere
and Hypo baric Warehouses, Cold Storages, Transport Chains (backend and front-end integration)– Part of Global Supply Chain.
 Customized containers for different products-Cement and foodgrains
in bulktainers in single units.
 Bulk Logistics
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
“WHEN LOOKING AT FUTURE, IMAGINATION
IS MORE IMPORTANT THAN ANALYSIS”
-C.K.PRAHLAD
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
POTENTIAL AREAS OF NEW BUSINESS
 ROAD BASED SERVICES - LOGISTICS
PROVIDER, WAREHOUSING “HUB”.
 “HUB & SPOKE” ARRANGEMENT.
 TOTAL LOGISTIC SOLUTIONS.
 MULTI MODAL LOGISTICS PARKS.
 COASTAL SHIPPING.
 COLD CHAIN.
 AUTOMOBILE TRANSPORTATION.
 TECHNOLOGIES IN MULTIMODALISM
SERVICE
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Warehousing
• Modern state - of - art facilities
• Adaptability to change / expansion
• Boundary wall, fencing, pavements, lights,
administrative block, public amenities
• Communication system, computerisation, EDI
facilities
• Accommodation for users & service providers
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
“Hub & Spoke” Concept
Transportation to become seamless and “door-to-door”
A
K
A
K
B
L
B
L
TERMINAL 1
TERMINAL
2
C
M
C
M
D
N
D
N
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
TOTAL LOGISTICS SOLUTION
• Tie-up with an existing road transport player with country-wide
network or enter into contractual arrangements with a set of
strong regional players.
• Target market leaders in specific industries (e.g. Automobiles,
FMCG).
• Tie up with a supply chain solution provider.
• Expand the scope of business with existing customers to help
them outsource the entire supply chain management.
• Main investments in IT.
• Contract and Interface Management Key Issues.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Integrated Logistics Hub
–
–
–
–
–
–
–
–
–
–
–
Bulk handling yard for normal railway wagons
Container handling yard
Rail side warehousing
Multi user warehousing
Warehousing/distribution for Food grains, Cement, etc.
Specialised Cold Chain warehousing for perishables
Wholesale mart
Office complex
Specialised cargo distribution centre for Steel, Auto etc.
Truck terminus
Administrative block
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
TENTATIVE BREAK UP OF AREA
TOTAL SIZE
200 ACRES
BREAK UP OF AREA
% BREAK UP
AREA IN
ACRES
SIZE IN SQ.FT.
ICD RAIL SIDING
20%
40
1742400
WAREHOUSING ZONE
30%
60
2613600
BULK HANDLING
15%
30
1306800
TRUCK PARK
2.5%
5
217800
WHOLE SALE MART
7.5%
15
653400
ADMN BLOCK
1%
2
87120
ROADS AND GREENS
24%
48
2090880
100%
200
8712000
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Artistic impression…1
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Artistic impression…2
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Project Development Activities
• Obtaining Statutory & Regulatory Approvals
–
–
–
–
State Level approvals
Railway interface for railway siding
Local state bodies/authorities
MoC – ICD / CFS operations
Would require support from the State Government in obtaining the relevant
approvals
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
COASTAL SHIPPING
Inter linking of all weather rivers encouraging
Inland Water Transport.
Transit container movement – alternative to
Colombo
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
COLD CHAIN
POST HARVEST MANAGEMENT
Estimated loss of Rs.50,000 crore
NEED FOR COLD CHAINS
• Controlled Atmosphere Warehouses, Cold
Storages, Ripening Chambers
• Transport Chains (back-end and front-end
integration)
GLOBAL SUPPLY CHAIN
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
AUTOMOBILE EXPORT TRENDS
Passenger
Vehicles
Commercial
Vehicles
Three
Wheelers
Two wheelers
Grand Total
2008-09
335729
42625
148066
1004174
1530594
2009-10
446145
45009
173214
1140058
1804426
2010-11
444326
74043
269968
1531619
2319956
2011-12
508783
92258
361753
1975111
2937905
2012-13
559414
80027
303088
1956378
2898907
2013-14
593507
77056
353392
2083938
3107893
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
TECHNOLOGIES IN MULTIMODALISM
 STATE - OF - THE - ART ICDs/CFSs .
 LATEST HANDLING EQUIPMENTS viz. RMGs/RTGs,
REACH STACKERS ETC.
 DESIGNER WAREHOUSES
 CC BLOCK PAVING
 ROAD RAILERS
 RORO CONCEPT
 STATE - OF - THE - ART ROLLING STOCK
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
USE OF I T
 Freight Operation Information System
 Dedicated communication network through V-SATs
 Automated Terminal Management System on Centralised
Architecture
 ERP packages for Financial Accounting, Human Resource and
Pay Rolls.
 Customer friendly Web - enabled services
 Project Monitoring System
 EDI system with community partners
 Container Track and Trace System
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Innovations
 Innovation to do value addition & provide value for
money to customers.
 Use of appropriate technology.
 Rewarding the innovations.
 Provide truly multi-modal choice- land, air and sea -to
offer competitive seamless logistic solutions to
targeted group of customers.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
The Path Ahead
• Avoid
duplication of infrastructure and
sub-optimal utilization of resources.
• Achieve economies through collaboration
ensuring optimum use of assets.
• Work together to bring about reduction in
logistics Costs and provision of cost efficient
services to customers.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
The Path Ahead
• IR initiatives – to promote clean, fuel efficient movement of cargo to
hinterland ports
• Relook at the Rail policies with focus on what Dr Robert Schuller, US
televangelist, said:
Better do something imperfectly than do nothing flawlessly.
• Need to bridge the Cost gap between Rail and Road – Approach
Environment Ministry for subsidies ?
• GOI initiatives – to make a world standard Highways system - as auto
trailers will continue to play a major role
• Container operator’s efforts to create a better rail based container transit
systems
• Last but not least an enduring partnership between Manufacturers- Rail –
Road for cost effective and clean logistics
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Quality of Customer Care
Create Customer Delight.
 Infrastructure & Services.
 Organizational Response.
 Dissemination of Information.
 Prompt Redressal of Grievances.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Cost Effectiveness
Need to optimize costs to offer competitive
services.
 Benchmarking of all activities.
 Effective contract management.
 Reduce empty haulage.
 Reduce ‘Over Heads’.
 Better utilization of assets.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Business Environment
Ability to mould Business Environment.
Knowledge of the Market.
Collection & Use of market intelligence.
Constant evaluation of business environment
and resultant changes in existing policies.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
The next five years
• Structural Changes in Container Transport
Business.
• Development of Clusters of ICDs/CFSs.
• Possible fragmentation of the market.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
Coping With Uncertainties
• Stability of rates.
• Service guarantee issues.
• Congestion level on important rail corridors.
• ‘Dedicated Freight Corridor’ – utility and interface with IR
network
• Double stack operation – Routes & rates v/s long haul
• Port capacities: Operational Issues.
CONTAINER CORPORATION OF INDIA LIMITED
Kribhco Infrastructure Limited
THANK YOU