LOVE AAJ KAL 1 4th CII India - Latin America and Caribbean Conclave - - PowerPoint PPT Presentation

4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

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LOVE AAJ KAL

Transportation and Logistics Bringing India and LAC Closer

Improved connectivity between India and Latin America is the essential first step towards developing a deeper trade and economic relationship. Developing logistical chains and creating inter-connected transportation hubs will address more than just the trade needs on both sides and there is need for policy intervention with strong private sector involvement in this critical area.

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

GLOBAL SHIPPING ROUTES

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

WORLD’S 20 MAJOR CENTRAL PORTS

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

1.Panama Canal (Panama) 2.Suez Canal (Egypt) 3.Shanghai (China) 4.Singapore 5.Antwerp (Belgium) 6.Piraeus (Greece) 7.Terneuzen (The Netherlands) 8.Plaquemines (Louisiana, USA) 9.Houston (Texas, USA) 10.Ijmuiden (The Netherlands) 11.Santos (Sao Paulo, Brazil) 12.Tianjin (China) 13.New York and New Jersey (USA) 14.Europoort (The Netherlands) 15.Hamburg (Germany) 16.Le Havre (France) 17.St Petersburg (Russia) 18.Bremerhaven (Germany) 19.Las Palmas (Canary Islands, Spain) 20.Barcelona (Spain)

WORLD’S 20 MAJOR CENTRAL PORTS

4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

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WORLD MAJOR SEAPORTS

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

THE BOOM IN WORLD SHIPPING TRADE

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

Shipping routes reflect world trade flows. Sailings are most numerous and most frequent on routes where trade volumes are largest and demand is therefore greatest. In liner trades to and from the UK, the busiest routes are to the Far East (especially China and Japan), passing through the Mediterranean, the Suez Canal and the Malacca Straits. The North Atlantic route, linking Western Europe and the USA and Canada, is also busy, and there are well-established routes to the Middle East, India, Australia and New Zealand, Central and South America, as well as to East and West Africa. SHIPPING ROUTES

4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

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It is difficult to quantify the value of volume of world seaborne trade in monetary terms, as figures for trade estimates are traditionally in terms of tonnes or tonne-miles, and are therefore not comparable with monetary-based statistics for the value of the world economy. However, the United Nations Conference on Trade and Development (UNCTAD) estimates that the operation of merchant ships contributes about US$380 billion in freight rates within the global economy, equivalent to about 5% of total world trade. Shipping trade estimates are often calculated in tonne-miles, as a way of measuring the volume of trade (or "transportation work", as it is sometimes referred). In 2008, for example, it is estimated that the industry transported over 7.7 thousand million tonnes

• f cargo, equivalent to a total volume of world trade by sea of over 32 thousand billion

tonne-miles. World seaborne trade 1969-2010

WORLD SEABORNE TRADE

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

WORLD SHIPPING TRADE

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

MAJOR TRADE ROUTES

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

The Strait of Malacca is a narrow, 805 km (500 mile) stretch of water between Peninsular Malaysia (West Malaysia) and the Indonesian island of

• Sumatra. It is named after the Empire of

Melaka that ruled over the archipelago between 1414 to 1511.

THE STRAIT OF MALACCA

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

SHIPPING LANES & STRATEGIC PASSAGES IN PACIFIC ASIA

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

THE SUEZ CANAL

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

The Suez Canal is an artificial sea-level waterway in Egypt, connecting the Mediterranean Sea and the Red Sea. Opened in November 1869, it allows water transportation between Europe and Asia without navigating around Africa. The northern terminus is Port Said and the southern terminus is Port Tawfik at the city of Suez. The canal is 192 km (119 mi) long with Ismailia, on the west bank, 3 km (1.9 mi) north of the half-way point. It consists of the northern access channel of 19.5 km/12.1 mi, the canal itself of 162.25 km/100.82 mi and of the southern access channel of 8.5 km/5.3 mi. It is single-lane with passing places in Ballah By-Pass and in the Great Bitter Lake. It contains no locks; seawater flows freely through the canal. In general, the Canal north of the Bitter Lakes flows north in winter and south in summer. The current south of the lakes changes with the tide at Suez. The canal is owned and maintained by the Suez Canal Authority (SCA) of the Arab Republic of Egypt. Under international treaty, it may be used "in time of war as in time of peace, by every vessel of commerce or of war, without distinction of flag.”

THE SUEZ CANAL

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

THE PANAMA CANAL

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

THE PANAMA CANAL

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

The Panama Canal is a 77 km (48 mi) ship canal that joins the Atlantic Ocean and the Pacific ocean and is a key conduit for international maritime trade. Annual traffic has risen from about 1,000 ships in the canal's early days to 14,702 vessels in 2008, displacing a total 309.6 million Panama Canal/Universal Measurement System (PC/UMS) tons. One of the largest and most difficult engineering projects ever undertaken, the canal had an enormous impact on shipping between the two oceans, replacing the long and treacherous route via the Drake Passage and Cape Horn at the southernmost tip of South America. A ship sailing from New York to San Francisco via the canal travels 9,500 km (5,900 mi), well under half the 22,500 km (14,000 mi) route around Cape Horn.

THE PANAMA CANAL

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

SOUTH AFRICA

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

ARGENTINA

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

URUGUAY

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

BRAZIL

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

Lack of sustained investment in planned infrastructure like warehouses,

transport centers, ICDs etc Cold Chain infrastructure is very sporadic. The concept of “Integrated Cold Chain” is non existent Major investments on these infrastructures have come from Government agencies like CWC, SWC, CONCOR etc Current private sector initiatives are small and sporadic Private sector warehousing are of poor quality, small, fragmented and does not meet infrastructure standards No quality standards or benchmarks are followed in infrastructure creation

CURRENT STATE OF LOGISTICS INFRASTRUCTURE IN INDIA

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

INDIA GROWTH STORY Trillion $ Economy Fifth Largest Economy by PPP GDP Growth Rate of 8 % p.a. Demographic Dividend 450 m Growing Middle class Improving Infrastructure Road - Golden Quadrilateral Rail - Dedicated Freight Corridor Sea - Port Developments Air - Cargo Airports / Terminals

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

OPPORTUNITY

Indian Logistics at an Inflection Point

Industry Outsourcing less than 10% in India Trade - related Infrastructure IT enabled Service Logistics Outsourcing Trend VAT / GST regime Warehouse Receipt a Negotiable Instrument Delhi – Mumbai Industrial Corridor ( DMIC) The Multimodal International Hub Airport at Nagpur ( MIHAN) Globalization Regionalization & Free Trade Agreements

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

THANK YOU

Dynamic Logistics 14, Motilal Talera Road Pune 411 001 Maharashtra, India T 91.20.2612.5858 F 91.20.2612.9595 E praful.talera@dynamiclogistics.com www.dynamiclogistics.com

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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010