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4th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010 1

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.

24th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

GLOBAL SHIPPING ROUTES


WORLD’S 20 MAJOR CENTRAL PORTS


1. Panama Canal (Panama)

2. Suez Canal (Egypt)

3. Shanghai (China)

4. Singapore

11.Santos (Sao Paulo, Brazil)

12.Tianjin (China)

13.New York and New Jersey (USA)

14.Europoort (The Netherlands)

WORLD’S 20 MAJOR CENTRAL PORTS

4. Singapore

5. Antwerp (Belgium)

6. Piraeus (Greece)

7. Terneuzen (The Netherlands)

8. Plaquemines (Louisiana, USA)

9. Houston (Texas, USA)

10. Ijmuiden (The Netherlands)

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 MAJOR SEAPORTS


THE BOOM IN WORLD SHIPPING TRADE


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

SHIPPING ROUTES

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.


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

WORLD SEABORNE TRADE

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

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

tonne-miles.

World seaborne trade 1969-201094th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

WORLD SHIPPING TRADE


MAJOR TRADE ROUTES


The Strait of Malacca is a narrow,805 km (500 mile) stretch of water

THE STRAIT OF MALACCA

805 km (500 mile) stretch of waterbetween Peninsular Malaysia (WestMalaysia) and the Indonesian island ofSumatra. It is named after the Empire ofMelaka that ruled over the archipelago

between 1414 to 1511.


SHIPPING LANES & STRATEGIC PASSAGES IN PACIFIC ASIA


THE SUEZ CANAL


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 SUEZ CANAL

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.”154th CII India - Latin America and Caribbean Conclave April 29 – 30, 2010

THE PANAMA CANAL


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.

THE PANAMA CANAL

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.


SOUTH AFRICA


ARGENTINA


URUGUAY


BRAZIL


� 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

CURRENT STATE OF LOGISTICS INFRASTRUCTUREIN INDIA

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


INDIA GROWTH STORY

� Trillion $ Economy

� Fifth Largest Economy by PPP

� GDP Growth Rate of 8 % p.a.

� Demographic Dividend� Demographic Dividend

� 450 m Growing Middle class

� Improving Infrastructure

� Road - Golden Quadrilateral

� Rail - Dedicated Freight Corridor

� Sea - Port Developments

� Air - Cargo Airports / Terminals


OPPORTUNITY

� Indian Logistics at an Inflection Point

� Industry Outsourcing less than 10% in India

� Trade - related Infrastructure

� IT enabled Service

� Logistics Outsourcing Trend � 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


THANK YOU

Dynamic Logistics

14, Motilal Talera Road

Pune 411 001

Maharashtra, India

T 91.20.2612.5858

F 91.20.2612.9595

E [email protected]

www.dynamiclogistics.com


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