Status & Leverage of Logistics Parks in India

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 • 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

11. Upcoming Projects

12. Future Outlook – Existing Hubs

13. Future Outlook – Existing Hubs

14. Future Outlook – Existing Hubs

15. Future Outlook – Emerging Hubs

16. Future Outlook – Emerging Hubs

17. Future Outlook – Emerging Hubs

18. Thank You