Look at Integrated Transport & Logistics Sector

India Integrated Transport & Logistics Summit (IITLS) 2017 was organised by the Ministry of Road Transport, Highways& Shipping and National Highways Authority of India in collaboration with Confederation of Indian Industry and Federation of Indian Chambers of Commerce and Industry (FICCI) from 3rd to 5th May, 2017 at Vigyan Bhawan, New Delhi. The Minister of Road Transport and Highways Shri Nitin Gadkari inaugurated the three day Summit. The outcome of the summit was fruitful with the signing of 32 MoUs worth 2 lakh crore investment in Integrated Transport & Logistics Sector in coming years

Logistics Efficiency Enhancement Programme (LEEP)

The IITLS was envisaged as a platform for all stakeholders in transport and logistics sectors to come together and initiate collaborative partnerships to realize the various greenfield and brownfield opportunities in logistic parks, freight corridors and IT solutions. The Ministry of Road Transport and Highways (MoRTH) had undertaken a study, called the Logistics Efficiency Enhancement Programme (LEEP), which has identified four key solution themes to improve the state of logistics in India. These are,

1. Freight corridor upgradation,
2. Logistics park development,
3. Seamless interstate movement and
4. Electronic toll collection systems.

Huge Potential in Transport and Shipping

Taken together, these initiatives are expected to reduce India's logistics costs and bring them closer to the accepted global benchmarks from the current high levels of 13-14% of GDP. 

The Ministry plans to develop 35 Multimodal Logistics Parks (MMLPs) in India which will, cater to 50% of the freight movement, enable -10% reduction in transportation costs and -12% reduction in C02 emissions. Land parcels have been identified and pre-feasibility studies initiated on six of these locations. The government is also working to formulate a uniform policy for the development of MMLPs.

Going forward, growing focus on Logistics Sector would investment in below sub areas

• Material Handling Equipment
• Packaging and Labelling Technology
• Collection and Assembly Systems
• Spare Parts Management Systems
• Inventory Control Systems
• Cold Storage / Perishable Goods Storage Equipment
• Freight Transport Vehicles
• Big Data Analytics

Multi Modal Logistics Parks

The upcoming Multi Modal Logistics Parks are the way forward for reducing logistics costs in India, and IndianGovernment needs to focus on putting in place the right policy, regulatory and institutional support for building the same. 

Developing a network of multimodal logistics parks (MMLPs) to act as logistics hubs will address the issues of unfavorable modal mix, inefficient fleet mix and an underdeveloped material handling infrastructure. Logistics parks are expected to help transition from the current situation of point-to-point freight movement to an ideal situation of hub and spoke model freight movement.

The large-scale investment required for developing logistics parks and the need to leverage industry best practices make the PPP model the most viable option. The involvement of a private player will enable access to state-of-the-art technologies available with the private sector and help in achieving efficient delivery of quality operational and maintenance services. 

Availability of long tenured loans, assistance in land acquisition and quality of trunk infrastructure are some of the other reasons which make the participation of the government critical in the development of logistics parks.

Multi Modal Logistics Parks are expected to bring down logistics costs by serving four functionalities - Freight aggregation and distribution, Multi Modal freight transportation, Storage and Warehousing with modern, mechanized warehousing space satisfying the special requirements of different commodity groups and  value added services: such as customs clearance with bonded storage yards, warehousing management services, etc.

Stock From Integrated Transport & Logistics Sector

These are not recommendation, but just to familiarize few good players related with Integrated Transport & Logistics Sector.

1. Concor
2. ACE
3. Navkar Corporation
4. Sanghvi Movers

 

A Few Stocks from Integrated Transport & Logistics Sector

news source:pib, bseindia