A month in the India Transport Sector

July, 2011

FOCUS
ISSUES AFFECTING INDIAS RUBBER TYRE MARKET The rising cost of natural rubber has hit Indian tyre manufacturers hard. One of the biggest Indian tyre companies, JK Tyre and Industries, suffered a 50% drop in quarterly net profit to Rs 130 million from the year before even though sales increased 29% in January to March. But why is rubber so important in tyre manufacturing? Natural rubber has outstanding properties in terms of flexibility, low heat build-up during use and durability. Coupled this with a fairly simple tyre assembly process and you can see why around 70% of the total production of natural rubber is used in tyre manufacturing. More information on ITP

FREIGHT
FREIGHT TRANSPORT: TRUCKS Trucks are dominating the freight transport market and, with billions of dollars being ploughed into Indias road network infrastructure, this dominance looks set to continue. On-going investment in Indias road infrastructure is driving the growth of the road freight segment which now transports 60% of the countrys goods and in the past ten years has shown a compound annual growth rate of 8.9%. More information on ITP

SOLVING THE PROBLEM OF INDIAS RUBBER MARKET Indias rubber market is in a precarious position. Although the country is the fourth highest producer of rubber in the world, the domestic market faces a large shortage. Tyre producers are some of the main users of rubber, and as vehicle ownership in India rises, the demand for rubber increases. However, rubber production has not risen sufficiently, leaving a shortage with extremely high rubber prices to accompany it. The president of the Indian Rubber Dealers Federation (IRDF), George Valy, said: The price of natural rubber in the international market is increasing sharply and that trend is reflecting in the domestic market too. In an attempt to curb the price rises, the state-run Rubber Board decided to drastically cut import duties from 20% to 8%, but it did not have the desired effect. More information on ITP THE IMPORTANCE AND GROWTH OF THE TRUCK SECTOR IN INDIA According to figures from a study by the World Bank into the efficiency of Indian transport Indias transport sector caters for the needs of 1.1 billion people. Of this, roads are the main form of transportation and they carry 65% of Indias freight. Trucking is the number one form of freight transportation in India. More information on ITP

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A month in the India Transport Sector RAILWAYS

INDIAN RAILWAYS IN NEED OF INVESTMENT Indian railways are a key part of the Indian economy, a driving force in the countrys transport system and its unity, since its inception in 1853. The rail system covers the length and breadth of the country and is among the top five largest networks in the world, but it is in desperate need of investment in order to keep pace with the countrys rapidly expanding economy. More information on ITP

July, 2011 MEDIA PARTNER WITH

6TH IRF REGIONAL CONFERENCE October 3 5, 2011 New Delhi

INTERTRAFFIC INDIA October 3 - 5, 2011 New Delhi

INDIAN RAILWAY SAFETY ISSUES MOUNT With crude oil prices rising, driving is becoming an expensive way to get from place to place in India. So people turn to public transport, and while busses are at the whim of traffic jams, trains have a dedicated network and should be able to provide a consistent and safe service. But sadly this is not the case. The railway network in India needs upgrading and updating to bring it into the 21st century. Indian Railway runs the trains, and the stateowned country-wide service carries over 20 million passengers every day. More information on ITP

ASIAN TYRE & RUBBER CONFERENCE December 2 - 3, 2011 Chennai

BRIDGES
INDIAS FOURTH CABLE STAYED BRIDGE IN JAMMU AND KASHMIR Srinagar: Work on Indias fourth cable stayed bridge has started in the border state of Jammu and Kashmir where it will enhance connectivity of the landlocked region and be of strategic importance to armed forces. More information on ITP

DEVELOPMENT WORK AT BHOPAL RAILWAY STATION Expansion and development work worth Rs 21.44 crore would be undertaken at the Bhopal railway station soon. The proposed works include construction of an additional platform (number 6), extension of platform numbers 4 and 5, development of second entry at western side of station, construction of a foot over bridge and remodeling of Bhopal yard among others. More information on ITP

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A month in the India Transport Sector ROADS

A FOCUS ON INDIAS ROAD NETWORK It may be one of the worlds fastest growing economies, but India is all too aware that fast, major investment is needed in its vast road network in order for the growth to continue. The Asian nation has the worlds second largest road network, covering no less than 3.314 million kilometres, but until now the maintenance and expansion of the Indian road sector has been a low priority for the government. All this is now changing though, with major initiatives such as the National Highways Development Project showing that Indian road sector investment is becoming a major priority. This very ambitious scheme is the nations largest ever highways project, costing approximately $13.2 billion. But while the work is well under way, with certain phases already completed, it is clear that the problem of substandard roads is not one that can be easily solved overnight.

July, 2011 LUXURY CARS

INCREASE IN SALES OF LUXURY CARS IN INDIA DURING THE RECESSION According to the Society of Indian Automobile Manufacturers (SIAM) during the worst period of recession the Indian luxury car grew at 23% to 6,671 More information on ITP FERRARI MAKES ITS INDIA FORAY! Even after brands like Bentley, Rolls Royce, Lamborghini are selling their luxurious products in the domestic circuit, Ferrari was still one of the most-awaited brands in the Indian market. Now that the Fiatowned sports carmaker is here making India the 58th market of the Prancing Horse, the company is leaving no stone unturned to make it count in Asia's second fastest growing automobile market. More information on ITP LAMBORGHINI NOW HAS A MUMBAI ADDRESS Car enthusiasts can now add a new address to their wish lists Mumbais busy business district of Worli that is now home to Indias second Lamborghini showroom. These elegantly fast cars are poised and ready to set hearts racing on the streets of Mumbai. More information on ITP

segment vehicles.

More information on ITP HIGHWAY DEVELOPMENT IN KARNATAKA New Delhi: The road sector in Karnataka will get a boost with the signing of an agreement between the Government of India and the World Bank in New Delhi on Monday. The Government of India and the World Bank has signed a $350 million loan to accelerate the development of Karnatakas major road network through the Second Karnataka State Highway Improvement Project (KSHIP II). Karnataka Chief Minister BS Yeddyurappa along with Public Works Minister CM Udasi was also present on the occasion. Karnataka Chief Minister BS Yeddyurappa said, Karnataka government has already identified about 25,000 km of the most important traffic corridors and termed them as the states core road network.

More informations on ITP

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A month in the India Transport Sector AUTO INDUSTRY

THE IMPACT OF THE RISE IN PRICE OF CRUDE OIL ON INDIAS AUTOMOBILE INDUSTRY When the price of crude oil rises globally, it has a big impact on India, and in particular its automobile industry. India is the fourth biggest user of crude oil in the world, importing three-quarters of it, at a huge cost. Between January and October, 2010 India spent $82.1 billion on crude oil imports. So when the price rises, there is an instant effect on Indias economy. More information on ITP THE INDIAN CAR MARKET The Indian car market is the second fastest growing automobile market in the world, behind only China. The Indian car industry saw a 30 per cent increase in sales in 2010, and, although this figure fell to just seven per cent in May because of rising interest rates, vehicle costs and fuel prices, the trend is expected to continue. The car market in India is the fourth largest in the world, with the number of Indian cars sold totalling 1.9 million in 2010 compared to 13.8 million Chinese cars. However, by 2020 the Indian automobile market is expected to overtake Japan and the US to become the second largest. More information on ITP GUEST ARTICLE: NEW MARUTI SWIFT: THE EMPEROR STRIKES BACK! Ever since Maruti launched the Swift in 2005, it has been ruling its segment quite comfortably. True the Maruti brand name is enough to make a car sell but in this case, the Swift packs in enough features to make sure it attracts more than 10,000 customers each month. The demand is so high that people are willing to wait for upto two months for the diesel variant. The Swift was launched in both petrol and diesel engine options and needless to say, the latter is the higher selling of the two. The car offers thrills for those who like driving as well as comfort and peace of mind for those with a family More information on ITP

July, 2011 BUSES

THE INDIAN COMMUTER PARADIGM INDIAN RAILWAYS OR PUBLIC BUS SERVICE ? The public bus service, which even though restricted by the snail paced traffic and poor infrastructure, avails of the 2.05 million mile road network in India to access even the most remote areas in towns and the countryside. More information on ITP NEW CODE FOR BUS BODY BUILDERS Seventy-five bus body builders from Madhya Pradesh, along with more that 6,000 bus body-builders all over the country, are up in arms against a new bus code, which will force them to buy extra land and invest beyond their means. More information on ITP

ABOUT US
Indian Transport Portal is an online news center covering the most critical industrial issues related to transport markets in India. India Transport Portal and India Transport Portal are edited by Digital Bizzline Ltd. a UK based press agency recently launched by a group of freelance journalists. Digital Bizzline Ltd. is registered at the Companies House UK: 07301455 contact@indiatransportportal.com

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