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§ SEJAL BAGEWADI 08B404

§ AKSHAY GITE 08B414

§ ANEESH SAJI 08B434

§ PRATIK RANE 08B444

§ SHANTI SHUKLA 08B454

§ VIDYA THOMBRE 07B454

 Logistics park in India
§ A logistics park could facilitate the co-location of value added service

providers. Even final assembly could happen within the park.

§ A logistics park would thus facilitate

(i) economies of scale, scope and co-location.

(ii) efficiency in transportation by way of integrated, multi-modal access.

(iii) light manufacturing activities.

(iv) co-location of value added service providers.

(v) reduced inventory.

M

 

Essential components of a logistics park are

§ suitable location

§ rail terminal

§ air cargo complex

§ intermediate container terminal

§ warehousing (temperature controlled and ambient)

§ value added logistics services

§ food processing zones

§ open stocking yards

Benefits
Logistics park create community and economic benefits, such as

§ Reduced pollution.

§ single window clearances

§ greater industrialization

§ Focused environment management and

§ greater use of environment-friendly rail systems.

OWO logistics park
§ The OWO Logistics Park is the largest such facility not only in JNP but in
any Port area in the country, has been constructed over a 30-hectare plot
and is about 15 km from JNP.

§ The facility is being developed in two phases, of which Phase 1 (12.8 ha)
has been completed and commercial operations have begun.

§ Three warehouses, of 30,000 sq. ft each, have been constructed for import,
export and bonded warehousing facilities, along with a fully paved area of
70,000 sq. m for a container yard.

§ Oonstruction work on the second phase is on in full swing and should be

completed in the first quarter of 2008. On completion, the facility will
have covered warehouses of 3,00,000 sq. ft which will cater to the diverse
requirements of the trade, including cold storage facilities.
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Logistics hubs in India

§ Established hubs: Mumbai, Kolkata and Ohennai

§ Emerging hubs: Gurgaon, Vizag, Nagpur and Indore

§ Promising hubs: Jamshedpur, Alwar, Ahmedabad, Bangalore and

Ambala

§ Nascent hub:-Kochi
Performance/Oonstraints
§ India ranks 39th in the World Bank logistics performance index that covers 150

countries.

§ The inefficiencies in the logistics industry stem from

(i) a fragmented market

(ii) multiple taxes

(iii) physical infrastructure bottlenecks

(iv) archaic labour laws, and

(v) state-centered policies.

§ National highways that form 2% of the total roads carry 40% of the traffic.
§ The industry is hampered by high transaction costs, more time taken in

processing exim containers, excess documentation, and high cost of

handling exim containers

§ The average speed of commercial vehicular movement in India is a

mere 20 miles/hour compared to 60 miles/hour in the West.

§ In the absence of modern warehousing practices, there are regular

slippages to the extent of 15-25% of cargo business

Growth
§ The anticipated growth of organized retail will also spur this

industry.

§ Outsourcing of logistics to will also act as a key industry growth

driver.

§ A 0.5% cost reduction in logistics will effect an additional 2%

growth in trade and 40% increase in the range of products exported

§ Introduction of VAT and phasing out of OST, outsourcing activities,

rise in FDI, greater organized retail, higher exports and imports, and

greater logistics linkages are key enabling factors.

§ India enjoys a time zone advantage, being located between the

global producers and consumers.

Key growth drivers

§ A new tax regime

§ Increased external trade

§ Higher organized retail

§ More outsourcing and

§ Huge infrastructure development