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1、ASCELA is registered in India as ASCELA Advisors Private Limited and in UAE as ASCELA Management Consultancies Est.2023 ASCELAASCELA Insights|Edition 12|January 2023Indian Logistics Investability Index-2023Exploring Indian Logistics InvestabilityASCELA,being involved in the development of key logist
2、ics infrastructure developments in India and across the globe,has been monitoring recent investment opportunities.The Index is an attempt to assess investability in various Logistics sub-sectors in India.Image on the cover page is representativeNivesh ChaudharyManaging Director,Infrastructure Adviso
3、ry,ASCELANivesh is a seasoned Infrastructure professional with around 15 years of progressive experience in consulting landscape,across multiple transportation sub-sectors,including Ports and Shipping,Logistics,and Supply Chain.Nivesh is leading the Infrastructure Advisory practice at ASCELA and is
4、operating from the firms offices in India and UAE.She splits his time between Delhi and Dubai.Shikha KostaManager,Infrastructure AdvisoryShikha is an Infrastructure Consultant with knowledge of Urban Infrastructure Development and holds specific experience in transportation and logistics planning,in
5、cluding urban transportation and supply chain.Yamini KhuranaSenior Consultant-Infrastructure AdvisoryYamini is an Infrastructure Consultant with specific knowledge of logistics planning and supply chain management.ContributorsIndustrial and logistics sector in India has proven its resilience in the
6、tough times and will continueto amplify,supported by growing policy thrust and upbeat investor sentiments.Moreover,Indiaspositioning to become a global manufacturing destination is in fruition.We have seen increasedinterest from several companies in the US and Europe wanting to invest in India and i
7、nvolve in keyindustrial micro-markets.The governments focus is to develop its own supply chain and build up the domesticmanufacturing industry.The logistics sector is set to witness large-scale investments this year and,in the years,to come.Logistics is an interdependent sector,which is constantly b
8、eing affected by global trends and by advances in technology,materials,and fuels.Nivesh ChaudharyManaging Director,Infrastructure Advisory,ASCELA |3The BIG Picture-Indian Logistics Industry3Opportunities for Year 2023Shipping Industry4Port Sector6Railways Freight Sector8Air Cargo Sector10Inland Wate
9、rways12Warehousing Infrastructure14Urban Logistics16INVESTABILITY INDEX 202317Indian Logistics IndustryThe BIG PictureIndias logistics services cost accounts for about 14.4%of GDP,compared to the global averageof 7%.As per the Niti Aayog,currently,India transports 4.6 billion tonnes of freight annua
10、lly,generating transport demand of 2.2 trillion tonne-km at the cost of around INR 9.5 lakh crore.Foreign InvestmentMerchandise ExportsEconomic DevelopmentGDP growth,as forecasted by IMF,against 2.7%global GDP forecastIn 20246.8%Real GDP growth Rate in IndiaIn 20226.8%Highest ever Merchandise export
11、 value in IndiaIn FY-2022USD 418billionMerchandise export value of India(highest before 2022)In FY-2019USD 330 billionHighest ever FDI Inflow in India,rising from USD 74.39 billion in FY-2020In FY-2022USD 81.97 billionY-o-Y Increase in FDI Inflow in Manufacturing SectorsIn FY-202276%As per the Paris
12、 Agreement(2015)on climate change,India has pledged to reduce the intensity of GHGemissions by 33-35%by 2030 from 2005-levels.Furthermore,India has set a target to transition to non-fossil fuel-based energy for 40%of its cumulative electricity generation capacity by 2030.In India,a predominant mode
13、of freight transportation is via road,with nearly 66%cargo share,and is themost polluting mode.Multimodal is a key that can provide great impetus in achieving Indias 2030 targetsfor Net-Zero emissions and pave a way for USD 5 Trillion economy by 2024.ASCELAs View|4Shipping IndustryBurgeoning require
14、ment of Alternate Fuels40%70%Reduction in carbon emissions by 2050targeted by International Maritime Organization(IMO)Reduction target by 203030-40%Carriers non-compliantPolicy/Regulatory FrameworkIMO 2023 RegulationVessel operators eying to invest in alternate fuel technologiesCII Regulation (IMO)G
15、lobally,30-40%of container ships and bulk carriers were considered non-compliant in 2021Positive OutlookPrivatisation/Private InvestmentPrivatisation of SCIWith 59 vessels and capacity of 5.3 million DWT,SCI is Indias largest carrier.Currently operates 6 year long contract by ONGC for Samudra Nidhi,
16、to end by 2023.Integration with inland operationsLast decade,10 largest carriers increased market shares from 60%to 85%of global capacity through vertical integrationsNeutral OutlookAlternate Fuel Opportunities LNG and Hydrogen Bunkering Shipbuilding(for LNG and Hydrogen compliant vessels)Short-sea
17、segments and ferries also aiming electrificationMerger&AcquisitionAlliances to increase market shareIn 2000,10 largest container line,with mere 52%market share,reached 81%by 2020Key alliances:2M,OCEAN,and THEEmergence of regional operatorsHigh freight rates on East-West trade lanes attracted smaller
18、 regional container operators like CU Lines,BAL Line,and SJJPositive OutlookDemise of Hanjin ShippingHanjin Shipping,4th largest container line in 2000,was bankrupt and shut down in 2016.Maersk has started to manageall logistics operations for theFMCG multinational Unilever.Moller-Maersk has acquire
19、d B2CEurope and Visible Supply ChainManagement,for parcel deliveryIn2021,MSCexpandeditslogisticsarmMedLog by buying the Brazilian company Log-InLogstica Intermodal and Bollor Group Africa.CMA CGM integrated its inlandlogisticsoperations.Ithasconnectivity to over 50 ICDsCMA CGM also runs block trains
20、from Mundra to ICD Garhi Dadri,Sonipat,Ludhiana,TughlakabadHapag Lloyd is operating India-Nepal Inlandservices,connecting ICD Birgunge to Ports atKolkata and VishakhapatnamKey Global ExamplesKey Indian ExamplesOperational Risks SCIs 40%revenue driven by oil majors,witnessing volatility.Vertical Inte
21、gration Opportunity Integration with MMLP operators integrating logistics and value-adding servicesMergers with large carriers Ports/Terminal operators can merge with shipping lines to increase ship calls and attract more traffic.Opportunities for new carriers Smaller vessel operations along regiona
22、l routes,as larger vessels are not viable due to limited cargo.13%16%5%17%3%2%20002022MaerskMSCZIM3%13%4%11%6%6%20002022CMA-CGMCoscoEvergreen2%7%9%6%2%3%20002022Hapag-LloydONEYML2M AllianceOcean AllianceTHE AlliancePre and post alliance snapshots(market share in terms of global container traffic)Sou
23、rce:Alphaliner|5BhavnagarContainer Manufacturing OpportunitiesIncreasing Container DemandIndian coastal shipping adds 10,000 TEUs annual demand,while CONCOR may require 2,000 TEUs annually(MoPSW)Opportunities in GujaratBhavnagar in Gujarat is to be developed as a container manufacturing hub.Positive
24、 OutlookShip BuildingContainer and Bulk Fleet RecyclingIndia is one of the worlds top 5 ship recycling countries and holds 30%share in the global ship recycling marketShipbuildingAs per UNCTAD 2022,the current average age of maritime fleets is 21.9 years,and by carrying capacity 11.5 yearsPositive O
25、utlookGrowing Industrial OutputManufacturing sectorAsian regions witnessed an increase in exports by 13.3%E-Commerce sectorIndian eCommerce market increased by 32%Y-o-Y in 2021,compared to worldwide growth rate of 18%.Positive OutlookInternational and coastal shipping demandIndustries rely on extens
26、ive last-mile logistics,creating demand for coastal shipping and multimodal transport.Entry BarriersSoaring Charter ratesBy mid-2021,container freight and charter rates peaked at 4X to pre-pandemic levelsDiversifying economies to save lead timeNike transferred some production from Asia to Latin Amer
27、ica.GoPro and Universal Electronics shifted some production from China to MexicoNeutral OutlookHigh cost of alternate fuelsAlternative fuels currently cost 2-5X more than conventional fuelShipbuilding Container Freight Rates can be subdued by rise in Shipbuilding in IndiaVolatile Fuel Prices VLSFO p
28、rices in February 2022 were USD 730/ton,reached USD1,000/ton in June 2022Investability in Shipping SectorAPPL(Aawadkrupa Plastomech Pvt.Ltd.)Containers,a Vartej-based company,has been given an order to supply 10,000containers annually to CONCOR.CONTAINER HUB IN BHAVNAGARKey OpportunitiesContainer ma
29、nufacturing setup at Bhavnagar.Coastal shipping of steel from east coast to Bhavnagar.Shipping of manufactured containers to various Ports.010203More companies are being reviewed for container manufacturing inBhavnagar.StatusThe Government of India has been increasingly focusing on sectors related t
30、o ship-building,recycling,andrepair,along with growing Indias growing stature as a maritime power.There is a vast demand for Indianflagged fleets with increasing multi-modality through coastal shipping and inland waterways.ASCELAs ViewContainer ManufacturingRegions around Chennai,Jamshedpur,and Pune
31、 may also be targeted due to presence of large-scale steel industries.Ship building and recyclingGrowing demand for cleaner fuel compliant vessels would add to capacity augmentation of shipbuilding infrastructure.Steel Manufacturing Hubs|6Port SectorSteering Port Privatisation to Encourage Investmen
32、ts31 berths423 MTPAPort Capacity Addition targeted by 2030by Ministry of Ports,Shipping,and Waterways(MoPSW)to be privatized by 2024-25108 berthsMechanization aimed by 2030Policy/Regulatory FrameworkNational Logistics Policy 2022Increasing efforts for reducing average turn-around time of vessels and
33、 reduce logistics cost.Resolution of PPP port projectsPorts can take over a project by paying a partial amount equivalent to the work already done by the concessionaire or bid for an abandoned project that is undergoing insolvency under the NCLT.National Green Hydrogen Mission,2023Promotes productio
34、n and Export of Green Hydrogen from IndiaPositive OutlookPrivatisation/Private InvestmentPrivatisation of existing berthsPrivatisation of 31 cargo berths by MoPSWworth INR 12,828 Cr by 2024-25.Capacity Augmentation under PPPAs part of MIV 2030,Major Ports need to undertake 423 MTPA capacity addition
35、.A total investment cost of over INR 33,400 Cr.has been earmarked.Out of this,95%capacity expansion is to be planned under PPP/Captive modePositive OutlookMerger and AcquisitionIntegration with marine operationsAdani Group,under its subsidiary TAHSL has entered into a definitive agreement for acquir
36、ing Indias largest marine service provider OSLIntegration with Industrial DevelopmentMundra SEZ,operated by the Adani Group,is providing integrated Rail,Air,and Port connectivity and is inviting large-scale manufacturersPositive OutlookIncreasing Port Privatisation Better Port Performance through pr
37、ivatisation of activities New resolution likely to unblock the countrys cargo handling capacity,which can be further privatized.Green Hydrogen Export Opportunity for development of green hydrogen handling infrastructure at Ports.Privatisation of berths Existing berths are being privatized for mechan
38、ization and operationLandlord Model for Major Ports Major Ports would likely follow Landlord Model for privatisation.Integration with Shipping Lines Port operators can integrate with Shipping Lines to increase ship calls at Ports,and thus increase traffic volumes.Integration with Logistics Parks Por
39、t operators can integrate with Logistics Pars/SEZs to inflate cargo volumes.Greater NicobarGovernment of India is targeting a Mega Port at Galathea Bay in Greater Nicobar Islands,aiming for a container transhipment hub in India.With a deep draft of 20m,the port wouldlikely enable anchoring of Mega S
40、hips,and raise Indias share in Maritime Trade.TRANSHIPMENT HUB AT GRATER NICOBARKey OpportunitiesOpportunities for Port/Terminal Operators for container handling.Opportunities for Shipping Lines and Logistics Service Providers.Opportunities for Coastal Shipping to other Ports in India.010203Status:E
41、oI to be floated by GoI by early 2023.|7JN PortPrivatisation targeted at East-CoastTajpur,Subarnarekha,Bhavnapadu,Ramayyapatnam,Ramanapadu,Machilipatnam,etc.along East Coast,TuticorinKDS Privatisation TargetsPhase 1:4 Berths+Outer Terminal;Phase 2:Berth 2 and 3Proposed Container Terminals Developmen
42、tContainer Terminals proposed in Tuticorin Port,Vizinzham Port,and Ports in Andaman and Greater Nicobar IslandProposed Container Terminals At upcoming Vadhawan Port and Nargol PortContainer TerminalProposed at Tuna location of Deendayal PortEntry BarrierReduced OpportunitiesMajor Private Port player
43、s are collaborating with Shipping Lines,likely reducing ship calls at other Ports.Delayed PrivatisationDelayed Security Clearance for privatisationhas been a concern.Only 14%of the target invested in 2021-22.Neutral OutlookShipbuilding Container Freight Rates can be subdued by rise in Shipbuilding i
44、n IndiaVolatile Fuel Prices VLSFO prices in February 2022 were USD 730/ton,reached USD1,000/ton in June 2022Investability in Port SectorBunkering InfrastructureLNG FSRUOwing to the IMO Regulations,demand for LNG Bunkering would likely increase.Green HydrogenWith the National Green Hydrogen Mission 2
45、023,India may be targeted as hub for Green Hydrogen Bunkering.Positive OutlookPort Mechanization and AutomationMIV 2030As per MIV 2030,21 berths across Major Ports identified as high potential for mechanization in Phase-1.Remaining 87 berths are to be targeted in next 2-3 yearsPositive OutlookTransh
46、ipment OpportunitiesTranshipment HubVizinzham,Kanyakumari region and Campbell Bay in Greater Nicobar Islands have deep draft potential of 20m and are at approximately 6-10NM deviation(0.5-1 hours)from the Suez route.Positive OutlookContainer TranshipmentLarge opportunities for transhipment along Por
47、ts in southern region.Bunkering Infrastructure at PortPort/Terminal Operators may likely target increase in FSRUs for LNG and Hydrogen Bunkering Infrastructure.Smart PortsOpportunity for mechanization and inclusion of Smart Ports Technologies to compete globally.Data Integration with ULIPThe Governm
48、ent of India has big plans for port capacity augmentations,improving operationalefficiencies,and port modernization.This creates large opportunities for privatisation of ports and alliedlogistics services,leading to increased consolidation of supply chain activities and higher trade volumesacross In
49、dian Ports.ASCELAs View|8Railways SectorNeed for High-Speed Dedicated Freight Movement3,600 MT45%freight via railways(current 27%)by Indian RailwaysRail Freight Traffic by 203130%Reduction in freight costPolicy/Regulatory FrameworkNational Railways Plan 2020Increase rail mode share to 40-45%;Target
50、3,600 MTPA by 2031Premium Indent Policy 2020Prioritized allotment of rakes in 2 days with payment of 5%premium over normal freight chargesLSFTO Scheme,202012%freight rebate to promote privatized procurement and operations of specialized wagons for non-traditional commodities.No freight charge for em
51、pty run.Kisan Rail Project 202150%subsidy in freight,borne by MoFPI,under“Operation Greens”Scheme,for F&VPositive OutlookPrivatisation/Private InvestmentPrivatisation in rolling stock operationsCMA CGM runs block trains between Mundra Port ICDs at Tughlakabad,Dadri,Sonipat,Ludhiana and GarhiPrivatis
52、ationof RRTSNCRTC is planning on privatisation of Rapid Rail cargo operations in Delhi/NCRCONCOR PrivatisationCONCOR owns 61 container terminals targeted to be privatisedPrivatisation of DFC operationsIndian Railways is discussing operation of private freight trains along DFCPositive OutlookMerger a
53、nd AcquisitionAdani Tracks Management ServicesAll owned rail units under a single entity;Target 2,000 Km track length from 690 KmTransport Bundling-Python TrainIn Feb 2021,CMA CGM launched Python Train Service on Western DFC from New Kishangarh Junction to MundraPositive OutlookRail Privatisation Be
54、tter Performance through privatisation of activities Subsidies on transportation of non-traditional industrial commodities.Subsidies on transportation of F&VDevelopment of PFTs In Tier-II and Tier-III cities.Integration with rake operationsNCR RegionRRTS is envisioned to accommodate freight traffic
55、during the off-peak passenger hoursalong Delhi-Meerut,Delhi-Alwar/SNB,and Delhi-Panipat routes in Phase-I.It would likelyreduce logistics travel time and associated logistics costs.RAPID RAIL TRANSIT SYSTEM,NCR REGIONKey OpportunitiesOpportunities for Warehousing and Depot operations along corridor.
56、Integration of RRTS operations along with Depot operation.Opportunities for new markets and businesses along corridor for better connectivity010203Status:Feasibility Study in progress.Privatisation in Operations Privatisation of rail services from proposed MMLPs to Ports Private ownership of cargo d
57、epots along RRTS corridor Development of PFTs along DFC routePython Train Service Integration with other operators for common rail movement Integration with Port and Terminal operators|9Entry BarrierProcedural DelaysProcedural delays and regulatory uncertainties have been restricting private sector
58、participation in Indian RailwaysCross SubsidizationRevenue earned through freight traffic is diverted to meet shortage in passenger revenue,due to which expansion of freight infrastructure suffersNeutral OutlookBetter Policy Incentives Better policies and regulations required for PPP engagementOwner
59、ship to Private Player Increase in PPP operations would foster competition and better logistics servicesInvestability in Indian RailwaysVertical IntegrationNew PFTsLikely increase in demand for PFTs upon commencement of Industrial CorridorsIntegration with MMLPsIntegration with MMLPs would likely of
60、fer increase in throughputPositive OutlookModernization of InfrastructureHigh-speed freight trainsPPP infusion may lead to capacity building and modern technology like smart yards,green corridors,and AI integration.Positive OutlookNew DevelopmentsHigh speed corridors along major trade routes like MM
61、LPs and PortsModern and smart PFTs at Tier-II and Tier-III cities.Smart TechnologiesOpportunities for smart tools integration like blockchain.Likely increase in use of electric reefer cars like in RRTSBeing worlds second-largest railway network,India holds vast demand for use of green fuel for low-c
62、arbon economic growth.Alternative fuels like LNG and Green Hydrogen may be targeted along majoreconomic corridors for cargo operations on the railway network.ASCELAs View11 Industrial Corridors Projects withHigh-Speed Rail connectivity are beingtaken up for development in 4 phasesup to 2024-25.Weste
63、rn-DFCProposed at Tuna location of Deendayal PortDMIC CorridorProposed at Tuna location of Deendayal PortEastern-DFC Proposed at Tuna location of Deendayal PortAKIC CorridorProposed at Tuna location of Deendayal PortECIC and VCIC CorridorProposed at Tuna location of Deendayal PortBMIC CorridorPropos
64、ed at Tuna location of Deendayal PortCBIC CorridorProposed at Tuna location of Deendayal PortHBIC CorridorProposed at Tuna location of Deendayal PortDNIC CorridorProposed at Tuna location of Deendayal PortNCRNagpurKharagpurAmritsarMughalsaraiPatnaJharsugudaParadeepMumbaiVishakhapatnamKolkataVijaywad
65、aHyderabadChennaiBangaloreCoimbatoreKochiAnantpurPuneMundraPalanpurAhmedabadSuratIndoreBhopalKanpurGwaliorLucknowAzamgarhJaipurAjmerKotaSiliguriGuwahatiChennaiKey cargo centresDevelopment of PFTsEconomic development around Industrial Corridors would create large demand for PFTs|10Merger and Acquisit
66、ionDemerger of SpiceJetDemerged cargo operations to Spice Express in August 2022;Reported revenue of INR 20.6 Bn in just 3 months of OperationIntegrations in cargo operationsFedEx Corporation acquired regional express players to increase its service rangePositive OutlookAir Cargo SectorHub-and-Spoke
67、 Air Connectivity to Tier-II and III30-3510 MTPAAir freight traffic by FY-2030For Airports with 1.5 Million Passenger TrafficAirports privatize by 2025INR3,660 Crlikely private investmentsPolicy/Regulatory FrameworkMoCA 2022Air Cargo traffic targeted to reach 10 MTPA by FY-2030,from 3.1 MTPA in FY-2
68、022Open Skies PolicyAmendments to Open Air Policy 2020limits foreign ad hoc and pure non-schedule flights by foreign carriers to six airports Air Cargo Policy 2019Agreements between foreign and Indian Air Freight Carriers;Last Mile Connectivity Program:Tier-II&IIINeutral OutlookPrivatisation/Private
69、 InvestmentNational MonetisationPipeline30-35 Airports to be privatized by 2025 with INR 3,660 Crore Likely Private Investment Privatisationof AirportsIn 2019,Adani Group won 6 airports from AAIPositive OutlookAirport Privatisation 60%investment is likely to be targeted by private investors;rest wou
70、ld be borne by AAI.JewarAirportOperator:Yamuna International Airport Private Limited(YIAPL).Located in Delhi/NCR,targeted to be developed as largest Airport in Asia.Likely traffic by 2045=2.6 MTPA80 acres land dedicated on the eastern side for a large warehousing and logistics facility.INTEGRATED CA
71、RGO HUB AT JEWAR AIRPORTKey OpportunitiesOpportunities for Warehousing,cold chain,and Value-added services at Airport.Opportunities for new markets and businesses in the hinterland0102Status:Under Construction;Likely commencement by 2025.Privatisation of Operations Privatisation of terminals at Inte
72、rnational Airports Tri-partiate agreement with private operators and AAIDomestic Freighters Opportunities to operate at Tier-II and III citiesCapacity Augmentation Increased freighters capacity with dedicated cargo handling Investment Opportunity for additional freighters and warehousingFocus on pas
73、senger traffic Passenger traffic preferred for operator selections at AirportsIn 2021,Maersk acquired freightforwarder Senator Internationaland ordered 5 freight airplanes.CMACGMorderedsixairfreighters for the launch of itsairline.MSC has started developing a new MSC AirCargo solution,to be availabl
74、e from 2023,thatwill be operated by Atlas AirBIAL is working with Amazon toestablish Joint Innovation Center(JIC)at KIA Airport in Bengaluru.AirIndiaordered500newaircraftinJanuary2023forpassenger and cargo operationsIBS Software,signed a long-term agreementwithAlaskaAirCargototransformandmodernise i
75、ts air cargo IT ecosystem.Key Global ExamplesIndian Examples|11Increasing Cargo trafficNMIA,Mumbai Operator:NMIAL23,700sqm international and 33,000sqm domestic cargo building by 2023.MIHAN,Nagpur4,025 Ha SEZ and Airport;Likely to commence in 2023Entry BarrierAFS PrivatisationNo AFS registered since
76、2014,likely due to lack of financial interest for Terminal OperatorsHigher lay-time and demurrage costsAirports(cargo)in India are suffering from congestion as well as decreasing executive efficiency in loading and dischargingNeutral OutlookBetter Policy Incentives Better policies and regulations re
77、quired for PPP engagement at Indian AirportsInefficient cargo operations Shortage of landside truck docks,vehicle holding area,and airside operational spaceInvestability in Airport SectorGrowing e-commerceSmart AFS DevelopmentWith rise of e-commerce,Indian Freighter Fleet would likely multiplySmart
78、AFS demand for quick evacuationTranshipmentIndia being targeted to be developed as Air Cargo Transhipment HubPositive OutlookUse of small freighters fleetCargo operation using A-320-P-2-F CarrierPradhan Air introduced All-cargo airline after Blue Dart in Oct 2022.Indigo is planning to add 4 all carg
79、o A-321 by 2023.Positive OutlookAutomation and DigitizationDigital IntegrationImproving logistics cost and time through AI integrationTier-II and Tier-III cities maybe targetedPositive OutlookAI IntegrationIntegration with ULIP and Kales Air Cargo Community System.Infrastructure at PortAirport/Termi
80、nal Operators may likely target capacity addition at AirportsNew AFS may be targeted around Major AirportsSmall Fleet demandDedicated operations in future.Likely target:Tier-II and III cities with small aircrafts.India is likely to see a boom in air cargo infrastructure facilities with a focus on in
81、creasing domesticmovement.Indian registered airlines are likely to be encouraged more,especially for the movement ofperishable commodities like fruits,vegetables,pharmaceuticals,etc.to/from remote locations.ASCELAs ViewMajor AirportsSmaller AirportsAmritsarDehradunVaranasiVaranasiMumbaiNagpurIndoreJ
82、abalpurRaipurBhubaneswarJharsugudaChennaiCoimbatoreTrichyGayaKushinagarKey development regionsMumbai Airport(FY-2022)40%increase in Domestic cargo 26%increase in international cargoHyderabad Airport(FY-2022)38%increase in Domestic cargo 18%increase in international cargoAirports likely to be privati
83、zed in 2023|12Inland Waterways SectorInclining trend towards IWT for Cost SavingPolicy/Regulatory FrameworkIWT Transport Subsidy Scheme90%subsidy on cargo movement along NW-2 in North-East India.IWAI capacity augmentation planIWAI has targeted to handle 140 MTPA traffic along IWT routes by 2020.Unde
84、r India75,IWAI is targeting development of 5,000 km of IWT routes across StatesInland Vessels Act,2021For regulating IWT operations across all states,routes are segregated into zones.Positive OutlookPrivatisation/Private InvestmentJal Marg Vikas Project(JMVP)GoI is planning to privatize Multi-modal
85、Terminals built by IWAI under JMVPPositive OutlookMerger and AcquisitionJal Marg Vikas Project(JMVP)GoI is planning to privatize Multi-modal Terminals built by IWAI under JMVPVertical IntegrationIWAI signed MoUs with 15 organizations to increase the cargo traffic,cruise movement,and infrastructure d
86、evelopment along NWsPositive OutlookMultimodal Integration With MMLPs,shipping lines,and freight forwarders Large demand for freight forwardersUnder the BBIN initiative,various agreements have been signed toenhance the use of water connectivity.A set of four MMLPs connectedmajorly via waterways woul
87、d be a sustainable way to boost BBIN trade.BBIN SUBREGION AND MMLP QUADRILATERALKey OpportunitiesOpportunities for MMLP and Terminals privatisation along the region.Opportunities for new markets and businesses in the hinterland0102Privatisation of Operations Terminal operation at MMLPs Tri-partiate
88、agreement with for logistics services and value-added operationsCapacity Building Opportunities in eastern and western coast of IndiaDiagonal Integration Sharing of logistics services with other players;reduces cost Vertical integration with operators of other legs in supply chainMMLP Integration Op
89、portunities to integrate with Jogighopa MMLP along NW-2Jogighopa in Assam,expected to be completed by 2023,would beIndias first MMLP.The MMLP would likely divert cargo from roadwaysto waterways in the region,which would significantly decongest theSiliguri corridor.17140 MTPAIWT freight traffic by FY
90、-2030as per Maritime India Vision Report and India75 by NITI AayogOperational IWT routes5,000 kmIWT Route by 2075BBIN SubregionSahibganjTriveniAshuganjMMLPTerminal|13Entry BarrierUnsuccessful PrivatisationAt MMLPs along NW-1 due to lack of financial viability at Varanasi and Sahibganj.Night Navigati
91、onLack of night navigation limits cargo operations along NWsLack of infra along IBP route Dredging in length across Bangladesh is pending for long due to inadequate finance.Neutral OutlookBetter Policy Incentives Better tax incentives required for PPP engagementNeed for Night Navigation to increase
92、cargo movementNeed for AI integration With other logistics facilities and consumption centresInvestability in Warehousing SectorMechanizationVertical IntegrationVertical integration with other services to reduce cost and for organized spatial planningPositive OutlookAutomationDigital IntegrationIWAI
93、 developed Cargo Data Portal(Car-D)and PANI for information on National Waterways in IndiaPositive OutlookVertical Integration With trucking,shipping lines,air carriers,Port operators Large demand for freight forwardersIncreased EfficiencyAs NWs come with real-time tracking along IWT routeThe curren
94、t trend towards larger vessels leads to a decline of the inland fleet with smaller loading capacityand smaller waterways,which cannot accommodate those new vessels.This develops a huge demand forshipbuilding opportunities for inland waterways fleet,with an average loading capacity of 2,500-3,000tonn
95、es.Vertical integration would likely make IWT economically attractive for freight owners and ports.ASCELAs ViewCold Chain InfrastructureIncreasing DemandHigh growth in FMCG,pharmaceutical,and organized retail sectors during the pandemicPositive OutlookCapacity BuildingIWT Vessels Shipbuilding and Dw
96、arf ContainersDwarf containers may likely allow easy stacking and movement along NWs for movement of low-density products.Positive OutlookEC approved Dutch Scheme 2022,allowing non-refundable grants tologistics operators for IWT use.Recharging and refueling infrafor“0-emission”vessels targetedat Eur
97、opes inland ports by 2030.EUfundedPLATINA3programworksonCoordination and support action to implement afuture inland navigation ProgrammeNorwayistestingunmannedvesselonFlemishIWrouteunder AUTOSHIP Programme“Green Danube”Programme forintegrated transnational policiesfor environment-friendly IWT.Modern
98、ization and Greening of Danuves IWTfleetsunder“GRENDEL”Programmewithidentification of investment needs.Key Global ExamplesCapacity AugmentationWithin MMLPs for storage of perishable goodsAlong NW routesCapacity Augmentation Dwarf containers may reduce operation cost and likely increase revenue.|14Wa
99、rehousing SectorSpiking demand for Smart WarehousingPolicy/Regulatory FrameworkGati Shakti MCT Policy,2022Indian Railways announced development of 100 Gati Shakti Multi-modal Cargo Terminals till FY-2025.Guidelines for ICD/CFS/AFS Development,2020Regulates regional disparities in the concentration o
100、f facilitiesBharatmalaProgramme35 MMLPs proposed;Increased concession period from 30 years to 45 yearsPositive OutlookPrivatisation/Private InvestmentPrivatisationof MMLPsFeasibility studies in progress at Mumbai,Pune,Hyderabad,and Coimbatore,and being initiated at Anantapur,Jammu,Kanpur,Visakhapatn
101、am,and JalnaPositive OutlookMerger and AcquisitionVertical IntegrationBeing capital-intensive infrastructure projects,adopting a“warehousing”model alone is not sustainableResource sharingPepsiCo and Nestle share warehousing,co-packing,and outbound distribution to retail stores of fresh and frozen pr
102、oducts.Positive OutlookMultimodal Integration With trucking,shipping lines,air carriers,IWT operators Large demand for freight forwardersPuneOccupier demand spiked 62%YoY after COVID-19 pandemic to 4.8 mn sq m(51.3 mn sq ft)in FY-2022.Pune and Hyderabad saw the most YoY increases in annual transacte
103、d volumes at 166%and 128%YoY,respectively.WAREHOUSING OCCUPIER DEMANDKey OpportunitiesOpportunities for Warehousing development in Tier-II and Tier-III cities.Integration of Cold-chain development with Warehousing operations.0102Privatisation of Operations Terminal operation at MMLPs Tri-partiate ag
104、reement with for logistics services and value-added operationsCapacity Building Opportunities in eastern and southern regions of IndiaDiagonal Integration Sharing of logistics services with other players;reduces cost Vertical integration with operators of other legs in supply chainMMLP Privatisation
105、 In Tier-II and Tier-III cities.Integration with port operators and rail sidingsHyderabad3PL sector accounted for the highest market share among all occupier groups at 29%in FY2022.31%of the total space taken up by the 3PL sector in FY-2022 was located in Pune.NCR and Mumbai led the market in terms
106、of overall transaction volumes during FY-2022According to MORTH,logistics parks will drive anestimated 10%reduction in transportation cost for the top15 nodes by enabling INTEGRATED freight movement.|15Entry BarrierLack of integrated infrastructure Lack of planned and integrated warehousing infrastr
107、ucture development with inadequate cold chain capacity and truck parking.Globally uncompetitive warehousing infrastructureCompared to global warehouses,Indian warehouses lack significantly in terms of equipment and smart toolsNeutral OutlookLack of Policy Incentives Better tax incentives required fo
108、r PPP engagement in smart warehousingNeed for AI integration With other logistics facilities and consumption centres.Investability in Warehousing SectorSpatial IntegrationTransformation to Logistics ParksSpatial integration with other services to reduce cost and for organised spatial planningPositiv
109、e OutlookAutomationDigital IntegrationTo improving logistics cost and time through AI integrationPositive OutlookVertical IntegrationTransformation of Warehouses as MMLPs;CFSs as FTWZSmart WarehousingNear large air-cargo hubs.Within MMLPs for real-time supply chain management.Warehousing industry is
110、 expected to expand further in the coming years with the rise of e-commercetransactions and demand for storage in Tier lI and Tier lIl cities strengthening the last-mile delivery tocustomers.This creates huge demand for temperature-controlled warehouses,high-density storage,andadvanced distribution
111、centers.ASCELAs ViewCold Chain InfrastructureIncreasing DemandHigh growth in FMCG,pharmaceutical and organized retail sectors during the pandemicPositive OutlookDark StoresIncreasing DemandInstamart,Dunzo,Blinkit and Zepto,etc,are maintaining these premises at urban consumption centresPositive Outlo
112、okAmazonhassemi-automatedwarehouses in US,where 400robots do stacking&scanning.Alibabalaunchedfullyroboticwarehouse in 2018 where 700guided robots move parcels.DHL uses smart glasses,robots,drones,andautonomous vehicles for a worker to identifyproducts and sort through parcelsDHL has teamed up with
113、Ciscoto create a platform to monitorsupply chain in real-timeIKEA converted its warehousesintoshowrooms,integratingphysical and virtual shoppingHitachiuses2-armedRobotforscanning,picking,and packing cargo.Robot doubled theworking speed.Key Global ExamplesCapacity AugmentationWithin MMLPs for storage
114、 of perishable goodsNear Industrial CorridorsCapacity Augmentation In Tier-II and Tier-III cities.Integration with rail sidings and MMLPs|16Private Investment for Charging Infrastructure?Policy/Regulatory FrameworkGati Shakti Focus on last mile connectivityFreight Smart Cities 2021 Logistics Plan fo
115、r 75 GOI proposed citiesMandate under LEADS Survey for States Medium OutlookPrivatisation/Private InvestmentFragmented Transporters&Facilities Transporters as individual entitiesE-commerce players own distribution centers Neutral OutlookCollaborationDelivery Service PartnersE-commerce players appoin
116、t 3-P TransportersAmazon partners within a cityPositive OutlookEntry BarrierB2C ShippingEkart expands services beyond Flipkart Amazon to deliver 3-P e-commerce orders soonNeutral OutlookInvestabilityLast Mile Delivery Start-ups140%e-commerce growth in this decade71%freight movement via roadPositive
117、OutlookDrone-based DeliveryIndia to witness delivery by drones for small payloads of 1kg to 100kg,in pharma and e-commerce sector.INR 60 Cr dedicated for drone manufacturing under PLI SchemeEfficient&Sustainable Urban Freight Systems Urban LogisticsInfrastructure DemandPeri-urban freight centresPriv
118、ate investment seekedPrivate SectorLimited investment scopeDevelopment of DCs as per demand Urban freight arguably accounts for 10%of freight-related CO2emissions and 50%of E-commercesupply chains TLC.The sectors improvement is bottle-necked with insufficient data,lack of focusedpolicies on urban fr
119、eight.Covid-19 has,however,changed the outlook of decision-makers towards urbanfreight issues.Competitive Environment For faster deliveries Competition For smaller Indian Players like Delhivery,etc.Full-time OpportunityFor small transporters Multi-Modal IntegrationMMLP Development Vehicle Availabili
120、ty Charging Infrastructure Private Player ParticipationPolicy PushIncentivesOpportunitiesChallengesTata launched e-LCVMultiple E-Goods CarriersOpportunity to setup exclusive charging station95%manufacturers to invest in green measuresInterest building in electric freightSMEV suggests commercial vehi
121、cles on project mode Limited E-Freight vehiclesLimited Public Charging Infrastructure for freight E-vehicle costlier than ICE vehicle Focus on passenger vehiclesLimited carriers covered under FAME Subsidy|17Sector ScoringINDIAN LOGISTICS INVESTABILITY INDEX 2023Policy/RegulationsPrivatisationMergers
122、/AcquisitionsEntry BarriersInvestabilityLowFairly LowModerateFairly HighHighInvestability Index in India Year 2023ShippingPortsRailwaysAirwaysIWTWarehouseUrban LogisticsShippingPortsRailwaysAirwaysIWTWarehouseUrban LogisticsLower growth in Indian CarriersIncreasing PrivatisationSlower PrivatisationI
123、ncreasing Privatisation in Tier-II and Tier-III citiesSlow development in India and lack of night navigationIncreasing infrastructure development and high private investmentIncreasing infrastructure development and high private investmentWarehousing,Urban Logistics,and Port sectors have high potenti
124、al for investments in India in 2023 owingto the greater policy push and consumer market demand.This would likely be followed by Air Cargo andIWT infrastructure due to large infrastructure investments planned by GoI.ASCELAs ViewASCELA MANAGEMENT CONSULTANCIES EST.Office 212,Block A Commercial Buildin
125、g,Al Goze 3,Sheikh Zayed Road,Dubai,UAE(Professional Licence No 1000645)United Arab EmiratesASCELA ADVISORS PRIVATE LIMITED311-312,3rdFloor,Good Earth City Centre,Sector-50Gurgaon-122018(HR),India.(CIN-U74999HR2018PTC072828)IndiaAbout ASCELAASCELA is a professional service company providing advisory
126、 services to organizations to help them enhance efficiencythrough analysis of market potential,competitive landscape,operational,financial,economic,technical,and strategicchallenges.The firm was established in 2018 with a vision to provide independent strategic insights into Infrastructure andbuild
127、environments.ASCELA is headquartered in India and has offices in India and United Arab Emirates(UAE).The firm is registered in Indiaas ASCELA ADVISORS PRIVATE LIMITED(CIN-U74999HR2018PTC072828).In India,ASCELA is recognised by theDepartment for Promotion of Industry and Internal Trade(erstwhile DIPP
128、),Ministry of Commerce and Industry,Governmentof India,under the Startup India initiative(Recognition ID-DIPP17959).ASCELA is operating in UAE as a registered entity ASCELA Management Consultancies Est.(Professional License no1000645).About ASCELA Infrastructure AdvisoryASCELAs Infrastructure Adviso
129、ry practice helps clients develop and leverage core competencies to deliver sustainable andtangible returns.We define strategies that help clients gain market share,enter new markets,regions,and products,improvethe bottom line and reconfigure organizational/operational structures.ASCELA is well plac
130、ed to provide strategic inputs andanalysis for assessing potential development opportunities in Infrastructure design and development space.Our in-depthknowledge of our focus transportation sectors,backed by intensive research and analysis of our clients specific contexts,helps define superior strat
131、egies,frameworks,and implementable action plans.2023 ASCELA MANAGEMENT CONSULTANCIES EST.All Rights Reserved.This publication contains information that is intended for general guidance only.It is not intended to be a substitute fordetailed research or the exercise of professional judgment.ASCELA cannot accept any responsibility for loss occasioned toany person acting or refraining from action as a result of any material in this publication.On any specific matter,referenceshould be made to the appropriate advisor.