Category Archives: Rail/Road

In the wake of keen interest showed by the investors and investments worth several hundred billion rupees being in the pipeline, Yogi Adityanath, Chief Minister, Uttar Pradesh has issued directions for further strengthening of the investor-friendly industrial ecosystem and for building a robust logistics infrastructure in the state. The state government has nominated Additional Chief Secretary (Infrastructure & Industrial Development) Alok Kumar as state nodal officer for developing the integrated state logistics plan aimed at overall development of logistics sector. Kumar will head a newly created state logistics cell to function in sync with national logistics division for development of supply chains and warehousing facilities for industries. The officials of state government departments like Planning, Transport, Civil Aviation, Revenue, PWD, Export Promotion Bureau, UP Expressways Industrial Development Authority (UPEIDA) will be the key members on board, and nodal officers from Central agencies like National Highways Authority of India (NHAI), Airports Authority of India (AAI), Inland Waterways Authority of India (IWAI), etc. will be special invitees to the cell. The state government will also set up a state logistics coordination committee under the chairmanship of the chief secretary to monitor the progress and implementation of the logistics plan. Uttar Pradesh is attracting sizeable investments in warehousing & logistics sector, so far, total 6 proposals worth approximately Rs 438 Crores have been received in the sector.

In order to address the inadequacies of capacity constraints and improve its modal share in total freight ecosystem of the country, Indian Railways has issued draft National Rail Plan. “A long-term strategic plan called the National Rail Plan has been developed to plan infrastructural capacity enhancement along with strategies to increase modal share of the Railways. The National Rail Plan will be a common platform for all future infrastructural, business and financial planning of the Railways. This plan is being circulated among various Ministries for their views now. Railways aim to finalise the final plan by January 2021,” said Ministry of Railways in an official release. The aim is to create capacity ahead of demand by 2030, which in turn would cater to growth in demand right up to 2050 and also increase the modal share of Railways from 27 per cent currently to 45 per cent in freight by 2030 as part of a national commitment to reduce carbon emission and to continue to sustain it. Net zero carbon emission by 2030. The objective of the plan is: • To assess the actual demand in freight and passenger sectors, a yearlong survey was conducted over 100 representative locations by survey teams spread all over the country. • Forecast growth of traffic in both freight and passenger year on year up to 2030 and on a decadal basis up to 2050. Formulate strategies based on both operational capacities and commercial policy initiatives to increase modal share of the Railways in freight to 45% by 2030. • Reduce transit time of freight substantially by increasing average speed of freight trains from present 22 Kmph to 50 Kmph. • Reduce overall cost …

Automotive Component Manufacturers Association of India (ACMA) has announced the findings of its industry performance review for the first half of fiscal 2020-21. The turnover of the automotive component industry stood at Rs.1.19 lakh crore (USD 15.9 billion) for the period April 2020 to September 2020, registering a de-growth of 34 per cent over the first half of the previous year. Commenting on the performance of the auto component industry in India, Vinnie Mehta, Director General, ACMA says, “The auto industry witnessed a downturn in FY2019-20, the situation further aggravated with the outbreak of the pandemic and the lockdown. While the first quarter for FY20-21 was significantly stressed, however with unlocking of the economy, the sales of vehicles witnessed improvement, month-on-month, in the second quarter. The component industry, in tandem, posted a subdued performance with de-growth of 34 per cent over the first half of the last fiscal, registering a turnover of Rs.1.19 lakh crore (US$ 15.9 billion). However, for the first time ever, the industry witnessed a trade surplus with Auto Component exports at Rs 39,003 crore (US$ 5.2 billion) and imports at Rs.37,710 crore (USD 5.0 billion); both exports and imports declined by 23.6 per cent and 32.7 per cent respectively. The aftermarket estimated at Rs 31,116 crore, also witnessed de-growth of 15 per cent. Component sales to OEMs in the domestic market contracted the most to Rs.87120 crore (US$ 11.6 billion), declining 42 per cent”. Sharing his insights on the performance of the auto component industry, Deepak Jain, President, ACMA said, “In the backdrop of the pandemic and the lockdown, the automotive industry faced unprecedented challenges in the first-half of FY 2020-21. The auto component industry, through …

Responding to November 2020 export figures, Sharad Kumar Saraf, President, FIEO, says that the monthly exports have shown a single-digit negative growth of 8.74 per cent with US$ 23.52 billion due to supply side disruptions including restricted container movement and declining petroleum exports due to its crashing prices. Besides, farmers agitation in some of the hinterland states have also affected exports during the month. Exports have been seeing signs of revival as order booking position has continuously improved and more new orders are in the offing. Saraf reiterated that the forecast of the arrival of the Covid-19 Pandemic vaccine along with gradual lifting of lockdown across the country and the globe has also helped in boosting the business sentiments for the sector as a whole, which can be expected to be seen from the positive figures of the upcoming months. Going by this trend, we expect to end the financial 2020-21 with an overall merchandise exports of about US$290 billion, adds FIEO President. Exporters have continuously been receiving a lot of enquiries and orders further adding to the positive sentiments with signals of further resilience in the global supply chain. However, the litmus test for the traditional sectors of our exports would be the Christmas and New year sale. If that goes well, the inventory will be liquidated, adding to further demand, observed Saraf. FIEO Chief said that the exports of other cereals along with oil meals, iron-ore, rice, ceramic products and glassware, handicrafts excluding hand-made carpet, cereal preparations and miscellaneous processed item, carpet, jute mfg. including floor covering, spices, drugs and pharmaceuticals, tobacco, cotton yarn/fabrics/made-ups, handloom products etc., fruits and vegetables, tea, gems and jewellery, mica, coal and other …

Continuing to maintain the high momentum in terms of earnings and loading, Indian Railways has marked nine per cent increase in the month of November 2020. Indian Railways loading was 109.68 million tonnes which includes 48.48 million tonnes of coal, 13.77 million tonnes of iron ore, 5.1 million tonnes of food grains. On mission mode, Indian Railways’ freight loading for the month of November 2020 crossed last year’s loading and earnings for the same period. In this period Indian Railways earned Rs 10657.66 crore from freight loading which is also Rs 449.79 crore (4 per cent) higher compare to last year’s earnings for the same period (Rs 10207.87 crore). During this period, average wagon loading per day in November 2020 is 58,726 which is 4.6 per cent higher than October, 2020 (56,128 wagons). Despite festival holidays and Cyclone Nivar affecting freight loading, Indian Railways continue to register impressive figures in freight loading in last three months (in October 15%, in September 15%) suggesting steady economic recovery. A number of concessions/ discounts are also being given in Indian Railways to make railways freight movement very attractive. It may be noted that improvements in freight movements will be institutionalized and incorporated in the upcoming zero based time table. COVID 19 has been used by Indian Railways an opportunity to improve all round efficiencies and performances.

To bring transparency and cost efficiency to the logistics industry, LogisticsNow has launched ‘LoRRI Benchmark’ – India’s first benchmark for contracted freight for the road transport industry, which will enable democratisation of the logistics industry with a focus on full truck load (FTL) freight for medium and long haul lanes. The platform was designed after observing an industry need for freight benchmarking focused on contracted freight, which could help create win-win outcomes for manufacturers and Logistics Service Providers (LSPs)/Transporters and enable competitiveness of an ‘Atmanirbhar Bharat’. LoRRI Benchmark connects the nation with 20,000 routes, 80+ truck-types, and 650+ transporters, spanning 10,000+ crore of freight spend. It aims to provide the range of freight costs at which one can connect a district, taluka or city across India, identifying truck-types and transporters at competitive costs for 600+ districts. It also enables manufacturers and transporters to interact and close the transaction online, serving not only the large manufacturers but also the food and agri sector. Announcing the launch, Raj Saxena, Founder & CEO, LogisticsNow, says, “Transportation is gradually getting organised and LoRRI Benchmark seeks to support the next phase of organised and efficient transportation. As the government builds the hard infrastructure, the highways, national waterways etc., LoRRI Benchmark will work to create the soft infrastructure, the commercial information and intelligence layer to connect and make seamless logistics happen” Benefits to manufacturers & government: • National Reach: 600 districts of India and growing • Readily accessible information for contracted freight rates, online • Single secure and trusted platform pan India Benefits to transporters: • Neutral trusted platform • Data driven Business development channel to acquire new customers and enable efficiencies through return loads / …

GEODIS has structured its internal network of women and its mission is to give GEODIS employees opportunities to express themselves, to propose, initiate or relay actions that positively contribute to gender parity and to the assumption of responsibilities of women. The network also intends to act on the reputation of the logistics and transport industry, a traditionally male sector, in order to change its image and attract more women. The company has held its annual summit of the ‘GEODIS Women Network’ (GWN). “We want to continue the action taken and give women the means to access key positions. Our goal is to increase the number of women in managerial positions”, indicates, Mario Ceccon, Human Resources Director of the GEODIS group. “13% in 2017, they are now 18% women in management positions. We have set ourselves the objective of reaching 25% by 2023.” The GWN works for inclusion, reduction of professional disparities between men and women, improved work-life balance and equal career prospects. “With a President at its head, GEODIS is already sending a strong signal showing the access by women to positions of responsibility” indicates Mario Ceccon. Over the next 3 years, the GWN will focus its actions on the following various objectives: • Study and harmonization of possible pay gaps, • The establishment of a leadership program aimed at empowering women, • The development of the recruitment and representation of women in the transport and logistics industry. Attract more women to the Logistics & Transport sector The other objective of the network is to deconstruct the image of the sector by acting in favour of actions aimed at encouraging women to join the logistics and transport professions. “We encourage …

Infraprime Logistics Technologies, the electric truck and construction logistics start-up, is planning to catalyse investment of US$ 200 million to electrify and organise construction logistics in India. The three-year-old company has grown to over US$ 50m in terms of annualised gross logistics value of the contracts being executed. The investment by the company would go in expanding the marketplace for construction logistics all over India, in establishing a state-of-the-art platform for vehicle servicing, charging and maintenance, and towards plant automation. Fleet operators, charging network franchisee owners and banks would be playing their part via purchase and financing of various assets. The investment would add over US$ 1 billion in annual margins to stakeholders across the value chain. As per a report by KPMG, the construction sector is expected to be a US$ 1 trillion industry by 2025 and is expected to engage one million heavy duty trucks. The company plans to showcase through its investment that all these one million heavy duty trucks can be replaced with electric trucks. The country wide displacement would need a charging network spanning 2,000 sites across 500+ routes. Electric trucks can generate four times as much margins as a corresponding diesel truck. With introduction of BS VI, the prices of diesel trucks have gone up which creates a compelling case for electric trucks. The company’s electric trucks are priced at twice the price of a corresponding diesel truck. The company launched its first electric truck model “Rhino 5536″ in August 2019, which immediately garnered eyeballs. The company is planning to soon launch a 37 MT GCW model and a 28 MT GCW model.

Omega Seiki Mobility aims to bring in multiple electric products including two-wheelers, a four-wheeler cargo vehicle and a tractor over the next two years. The company, which is a part of the Delhi-based Anglian Omega Group, also aims to set up manufacturing facilities across various parts of the country. Omega Seiki already has multiple manufacturing sites in Delhi/NCR. The company also plans to have around 200 dealerships across the country by the end of next year. It has earmarked an initial investment of Rs 200 crore for the projects and going ahead aims to raise another Rs 1,000 crore in order to fund the expansion plans. “We are going to have factories and we are going to line up the products, we are going to be non-stop from here till next few years. The company would consider taking various routes to raise required capital to fund various projects. We will try a combination of various things which may include going public, private equity, green bonds etc,” Uday Narang, Chairman, Anglian Omega Group. Elaborating on the product pipeline, Deb Mukherji, Managing Director, Omega Seiki Mobility, said, “The electric two-wheelers for both passenger and cargo segments would be introduced around April next year, while the four-wheeler for cargo and tractor would make way around next 2021-end or early 2022. Commenting on electric two-wheeler range, he said the vehicles would be powered by lithium ion batteries and would cater to last mile deliveries. “These scooters are already in advanced stages of testing and trial stages,” Mukherji said. The electric pick-up truck would come with two tonne payload and would cater to last mile cargo delivery, he added. “The market is moving towards higher …

With a primary focus on BBIN (Bangladesh, Bhutan, India & Nepal), V-Trans India has announced the commencement of its operations in SAARC countries on its 62nd foundation day. Initially, the service will primarily be focused on surface movement and will soon be covered with express and multimodal. On this M. K. Shah, MD, V-Trans says “This is one more milestone in our journey to become one of the most reliable and trusted players in the logistics business. The starting of our operations to SAARC countries is the beginning of a new chapter in the history of our company. We have been able to successfully manage the current scenario and looking forward to many more accomplishments in the near future. While the present times are challenging and tough, our team has gone all out and brought the best possible results, which are fully supported and integrated with the advanced technology and a collaborative approach.” One of the highlights for the company has been the successful management of the impact of the COVID pandemic. The company adapted quickly to the situation, digitised the processes, enabled smooth flexi working, and most importantly modified the decision-making process thus leveraging maximum to its advantage. It has undertaken several initiatives in the last couple of months towards the aim of achieving service excellence. The objective has been to ensure smooth conduct of its operations and maintaining high-quality standards in terms of delivery.