Logistics in India
India has hardly been able to position itself on the economic market – despite its favorable location between Asia and Europe and a population of more than 1.2 billion people. Only in recent years has this country been able to increasingly flex its economic muscle. But, India has much catching-up to do in regards to logistics before in can reach the same level as the world’s leading industrial nations.
Geographic Challenges
On the north, India is bordered by the Himalayan Mountains. For this reason, creating road and rail connections from this direction presents major challenges. However, located in the south, is the Indian peninsula – an area which is well-suited for sea harbors but containers frequently sit for weeks in the harbor before they can be transported. While India is the country with the world’s second-largest population, there is an unequal distribution. An unequally distributed population creates major challenges for logistic service providers.
Indian Infrastructure
A vital step in India’s further development is the expansion of road and rail networks, as well as modernizing harbors and airports. Transport volume has climbed rapidly in recent years through the process of globalization, which is expanding India’s position in world trade. The expansion of the logistics infrastructure has been unable to keep up with this pace which has resulted in transport capacities reaching their maximum limits. The transshipping times for ships in Indian harbors are three to four times longer than the average time in the West. Also, because of the poor infrastructure, logistics costs are very high in international comparison. For this reason, India will have difficulties when attempting to position itself as a global logistics hub in the future.
India has one of the world’s largest road networks, with a total length of 3.3 million kilometers. Therefore, road transport is especially important for India’s transport system. However, a substantial amount of this network does not meet Western standards. For example, a transport truck takes five to six days to cover the 2,061-kilometer-long route between Bangalore and Delhi. These infrastructure challenges have influenced the Indian government to introduce counter-measures and shift freight transports from the roads to the rails. In order for this to be successful however, the rail infrastructure must be expanded and the connections to harbors and airports improved. Many sub-areas of the 63,000-kilometer-long rail network still use the technology of 1947, the year that British colonialists left where only about one-quarter of the routes are electrified.
The Future for Logistics in India
In terms of logistics, India remains a developing country in many areas. It hardly has any intermodal freight transports, despite its admirable geographic position. Additionally, India has been unable to evolve into a hub for international freight transports, like Dubai. In regional terms, India lags behind logistics centers like Singapore, Thailand and Hong Kong. Currently, India is moving forward with a plan to turn the country’s 12 main harbors into integrated freight hubs. Many of these harbors do not have the rail and road connections needed to handle the transport volume of ships.
Link(s):
http://www.dhl-discoverlogistics.com/cms/en/course/trends/asia/india.jsp
http://logisticsweek.com/column/2013/04/challenges-faced-in-logistics-sector-in-india/
Geographic Challenges
On the north, India is bordered by the Himalayan Mountains. For this reason, creating road and rail connections from this direction presents major challenges. However, located in the south, is the Indian peninsula – an area which is well-suited for sea harbors but containers frequently sit for weeks in the harbor before they can be transported. While India is the country with the world’s second-largest population, there is an unequal distribution. An unequally distributed population creates major challenges for logistic service providers.
Indian Infrastructure
A vital step in India’s further development is the expansion of road and rail networks, as well as modernizing harbors and airports. Transport volume has climbed rapidly in recent years through the process of globalization, which is expanding India’s position in world trade. The expansion of the logistics infrastructure has been unable to keep up with this pace which has resulted in transport capacities reaching their maximum limits. The transshipping times for ships in Indian harbors are three to four times longer than the average time in the West. Also, because of the poor infrastructure, logistics costs are very high in international comparison. For this reason, India will have difficulties when attempting to position itself as a global logistics hub in the future.
India has one of the world’s largest road networks, with a total length of 3.3 million kilometers. Therefore, road transport is especially important for India’s transport system. However, a substantial amount of this network does not meet Western standards. For example, a transport truck takes five to six days to cover the 2,061-kilometer-long route between Bangalore and Delhi. These infrastructure challenges have influenced the Indian government to introduce counter-measures and shift freight transports from the roads to the rails. In order for this to be successful however, the rail infrastructure must be expanded and the connections to harbors and airports improved. Many sub-areas of the 63,000-kilometer-long rail network still use the technology of 1947, the year that British colonialists left where only about one-quarter of the routes are electrified.
The Future for Logistics in India
In terms of logistics, India remains a developing country in many areas. It hardly has any intermodal freight transports, despite its admirable geographic position. Additionally, India has been unable to evolve into a hub for international freight transports, like Dubai. In regional terms, India lags behind logistics centers like Singapore, Thailand and Hong Kong. Currently, India is moving forward with a plan to turn the country’s 12 main harbors into integrated freight hubs. Many of these harbors do not have the rail and road connections needed to handle the transport volume of ships.
Link(s):
http://www.dhl-discoverlogistics.com/cms/en/course/trends/asia/india.jsp
http://logisticsweek.com/column/2013/04/challenges-faced-in-logistics-sector-in-india/