Envisioning thefuture of Indian
logistics@2047
April 2023

Contents

01
Foreword

02
04

03
Ports, shipping andlogistics in India:
current scenario
and outlook

Executive summary

06

04
12

Measures required toaccelerate India’s
competitiveness inglobal ports, shipping
and logistics sector

22

Key considerations

56

05

Neville M. Dumasia
India Leader
Advanced Manufacturing,
Mobility and Infrastructure
EY India

EY projects that India will continue its strong economic performance and become a US$26t economy
by FY48. This will create a significant opportunity for India’s transportation and logistics sector,
which is poised to grow at ~4.5% CAGR (from 2022 to 2050) to 15.6 trillion-ton km by 2050.

Foreword

To realize the full potential that exists in the sector, it is imperative for stakeholders including,service providers, customers and GOI (government of India) to collaborate and compliment eachother. Although GOI has launched several initiatives, such as GatiShakti and National Logistics Policy,
there are numerous challenges related to implementation, infrastructure development, digital
readiness and supply chain transparency, which need to be addressed.

4

In this thought leadership, EY and BCCI have come together to analyze key challenges in India’slogistics sector and recommend strategies to address them.
First is the adoption of advanced technologies and new business models. Although new digitalplatforms, such as ICEGATE (e-Sanchit), E-Logs, are playing a pivotal role in streamlining processes
and rooting out inefficiencies, a considerable effort is required to ensure end-to-end monitoring andsupply chain visibility in the logistics sector.
Second is fast tracking infrastructure development, which is being addressed by initiatives such as
Bharatmala, Dedicated freight corridor (DFC) and Sagarmala, among others. However, numerous
policy measures need to be adopted to alleviate delays in land acquisition and clearances andstimulate infrastructure development ecosystem further.
Third, infrastructure financing is complex and therefore stakeholders should develop and build on
their infrastructure asset strategy and adopt a collaborative approach to design a risk sharing
protocol. The GOI should formulate a uniform and simplified tax and regulatory landscape and adopt
policies to facilitate greater participation of the private sector.
Fourth, adoption of sustainable practices is critical, to keep up with stringent domestic andinternational regulatory customers and investors requirements. However, EY’s supply chain
sustainability survey 2022 indicates that 33% companies lack a strong business case for sustainablesupply chain. Thus, stakeholders need to identify and prioritize focus areas for decarbonization,
including climate financing for emerging markets. Moreover, they should consider additional drivers,
such as higher revenues, market share, as a result of their focus on sustainability.
To help set a context for discussion among stakeholders participating in the conference, the thought
leadership highlights implementation related challenges and recommendations. It aims to facilitate
development of a roadmap to ensure that India’s ports, shipping and logistics sector leapfrogs andcan benefit from the multi-fold GDP growth projected for the Indian economy.

Envisioning the Future of Indian Logistics@2047

Rajiv Jalota
Chairman, Mumbai Port Trustand Additional Charge, DG,
Directorate General of Shipping

As the Indian economy continues to grow and evolve, the importance of efficient and effective
movement of goods cannot be unnoticed. In today’s interconnected world, shipping and logistics
stand at the heart of the economy, serving as crucial gateways for international trade andcommerce.
Indian logistics sector comprises the entire inbound and outbound segments of the manufacturing
and service supply chains. Of late, the shipping and logistics infrastructure has received a lot of
attention both from business and industry as well as policy makers — posing tremendous
opportunities for development across different avenues.
The logistics management regimen has the capability of overcoming the disadvantages of theinfrastructure in the short run while providing cutting-edge competitiveness in the long term. It ishere that exist several challenges as well as opportunities for the Indian economy.
With increasing complexity in logistics and supply chain management, it has become imperative to
adopt innovative approaches and groundbreaking technology to ensure that goods are delivered ontime and in good condition, as it is the need of the hour. Physical transporters who run their businessprocess in manual and offline model, can utilize different technologies such as AI, Big data, IoT, to
increase their service and compete with an international market by providing real time andend-to-end connectivity.
While we move ahead, sustainability is no longer an option today but an essential aspect to consider
by all stakeholders in all future endeavors. While the government has been launching several
initiatives to support this, we must work together to ensure that the sector can continue to grow andcontribute to the economy while also mitigating its impact on the environment.
In view of this, the Bombay Chamber of Commerce and Industry (BCCI) in association with EY as theKnowledge Partner, presents to you this Thought Leadership paper.
It aims to provide a comprehensive overview of the current state of the ports, shipping, and logistics
industry. Through extensive research and analysis, we explore the latest trends, challenges, andopportunities shaping this dynamic sector. We examine key issues such as the impact of COVID-19 on
the industry, emerging technologies and new business models, infrastructure development andinvestment need, regulatory developments, and sustainability initiatives.
Our goal is to provide valuable insights that will help businesses, policymakers, and industry
stakeholders navigate the rapidly evolving landscape of ports, shipping, and logistics in India. We
hope that this report will serve as a useful resource and contribute to informed decision-making andstrategic planning for the sector's growth and development.

5

Envisioning the Future of Indian Logistics@2047

Envisioning the Future of Indian Logistics@2047

5

Executive summary

6

Envisioning the Future of Indian Logistics@2047

Executive summary

India’s projected GDP growth to US$26t by FY48
(US$6t by FY2030) and the impetus to acceleratemerchandise exports to US$1t by 2030 are key
drivers which will increase demand for India’s logistics
sector.

GOI acknowledges the issue of high dependence onroad transportation and is exploring options to movefreight optimally with a focus on reducing logistics
costs and bringing it at par with the global standards.

As of FY22, India’s exports grew by 44.6% to
US$422b and imports grew by 55.4% to US$613b.
This growth has propelled the Indian transportationand logistics sector, which has grown between~US$160 and US$200b (INR13- 16 Lakh cr.) in 2022.

This uneven distribution of modes oftransportation has led to low operational
efficiency; prompting the GOI to
undertake multiple logistics specificinitiatives, such as GatiShakti, National
Logistics Policy and others. These
programs aim to streamline India’slogistics sector by making it more green,
agile, transparent and integrated.

India’s transportation and logistics landscape
Modal split-freight movement in India in 2022

Road
3.05
trillion
ton-km

66%

Rail
0.82
trillion
ton-km31%

Shipping
1,108
millionmetric ton

Air
2,068
millionton- kmWater
12 major,
200+
non-major
ports

Airport131
airports

3%

India aims to reduce logistics cost from
13% to 14% of GDP, to 8% to 10% ofGDP, by 2030. It is estimated that a
10% reduction in indirect logistics cost
will result in 5% to 8% rise in exports.

1%

Infrastructure present
Road
63.73 lackmRail1.08 lackm

The transportation and logistics sector, and inparticular the ports and shipping sector is grapplingwith several structural challenges:

Support Infrastructure present

InlandContainer
Depot

Container
Freight
Station

129

168

Multi
Modal
Logistics
Park
1*

300m
sq. ft.
warehouse
space►

The inter-state movement of goods takes a longtime due to complex regulations, delayed
clearances and involves a significant amount of
paperwork.

►

As the industry is fragmented, there are several
intermediaries in the ecosystem leading tomultiple cargo exchanges, thereby increasing
costs and operational inefficiencies.

►

Lack of end-to-end supply chain visibility andability to track and trace the cargo remains achallenge for the service providers and customers.

*Under construction

Source- PBI, Ministry of shipping, Ministry of civil aviation, Niti Aayog

India’s Transportation and Logistics sector acts as the
backbone to support the fast-paced growth which it ispoised to achieve in the next 25 years.
India’s freight movement is heavily skewed toward
road transportation, which moves 66% of cargo (inton-km). This is followed by rail (31%), shipping (3%)
and air (1%). To aid this cargo movement, India has anextensive network of support infrastructure
comprising 129+ In-land container depots, 168+
container freight station, and ~300 m sq. ft. of
warehousing space.

These issues have a significant bearing
on the cost of operations forstakeholders and may directly or
indirectly hinder their green ambition.

Envisioning the Future of Indian Logistics@2047

7

Executive summary

To address some of these challenges, there has beena recent spurt in development of associatedinfrastructure, which is in line with the changing
business environment. The sector is witnessing a
rapid development of infrastructure, greater thrust indigitalization, and enhanced focus on sustainablelogistics.
Launch of multiple start- ups and GOI’s digital
initiatives such as “Make in India”, Unified Logistics
Platform (ULIP) etc. are helping to bring greatertransparency in the logistics sector. Digitization ofwork processes to facilitate paperless processing of
documents and clearances and enhanced tracking of
shipment helps to increase the speed of movement ofgoods and reduce logistics cost.
There has been an enhanced focus on infrastructuredevelopment, which is playing a significant role inincreasing the pace of movement of goods. India’s
road network has grown from 62.15 lakh km in FY21
to 63.73 lakh km until Jan 2023. As part of DedicatedFreight Corridor (DFC) India has pledged ~US$38b(INR 3 lakh cr. ) to develop exclusive rail tracks andassociated infrastructure for movement of goods
train.

In the ambit of Maritime India Vision(MIV), GOI has pledged US$38b to
US$44b (INR 3-3.5 lakh cr.) acrossports, shipping, and in- land
waterways, which will help unlock
US$2.5b (INR 20,000+ cr.) worth ofpotential annual revenue for Indian
ports.
MIV targets to reduce the average vessel turnaroundtime (for containers) from ~22 hours in 2021 to <20hours by 2030.
The proposed growth in the logistics sector requires
major private and foreign investment to alleviate theload on GOI’s finances. Initiatives such as National
Infrastructure Pipeline, is one such lever which is
expected to raise ~US$650b (INR 50 lakh cr.) worthof investment. Additionally, GOI has rolled out
multiple policies to facilitate PPP in ports, rail androad sector.
To fulfill India’s commitment to the Net Zeroemissions by 2070, the logistics sector’s contribution
to decarbonization is essential. Several initiatives,
such as adoption of alternate fuel vehicles, increasing
share of renewable energy in ports, providing shore
power to dock ships and others, are being
incorporated. Maritime India Vision indicates specifictargets for Indian ports to promote sustainability inthe maritime sector.

8

Envisioning the Future of Indian Logistics@2047

Although the above-mentioned initiatives are likely totransform and improve efficiency in the logistics
sector, some challenges continue to persist, which
may limit its growth. A collaborative effort of industry
and GOI may be required to resolve them. Thus, EY
and BCCI suggest following strategies to accelerate
India’s competitiveness in global ports, shipping andlogistics sector.

1
2
3
4

Adopt advanced technologies
and explore new business models

Fast-track infrastructuredevelopment

Attract investment and investor
interest

Focus on sustainable logistics

Adopt advanced technologies and explore
new business models
Recent supply chain disruptions and amplified focus
on sustainability have led to increased adoption oftechnology- enabled solutions. As a result, blockchain,
big data, cloud computing, digital twins and others areseeing widespread adoption, globally. Although thelevel of adoption is relatively low in India, the renewedinterest of the GOI has resulted in the launch of
several digital solutions, such as ICEGATE and E-Logs.
These solutions have helped to reduce inefficiencies,
improve transparency and increase the speed of
movement of goods.

Executive summary

While digital technologies have been
pivotal in increasing the efficiency andspeed of freight movement, there is aneed for greater transparency and endto-end visibility across the supply chain.

A better collaboration between startups and industry would be crucial topaving the way for an integrated andtransparent logistics ecosystem.

Recommendation
Technological advancements and global supply chain
constraints have resulted in the development of new
business models

Service providers and customers need to carefully
consider the adoption of digital technologies andupgrade their legacy systems. Seamless
implementation of digital technologies is required
across multiple government bodies to avoid siloedcommunication.

Digital freight forwarders

Fast-track infrastructure development
On-demand warehousing

Digital load boards

Crowdsourcing model

Recently, the GOI has launched several programs witha focus on building new roads, railways, ports
infrastructure, etc.

The average speed of road development
has increased from 20.79 km/day in
FY22 to 22.23 km/day till Jan-23.

Workforce modelThis has paved the way for multiple start-ups which
are offering innovative solutions by either working
independently or partnering with traditional players.
However, a coordinated effort by all stakeholders is
required to boost the adoption of digital technologies.
Special focus is required to implement acomprehensive digital tool which offers end-to-end
cargo tracking and acts as an inclusive digitalmarketplace. This requires a complete transition fromport community to cargo community system.
Additionally, NLP- Marine should be agile enough tooffer transactional rates and allow users to bid onthem to make it an inclusive marketplace platform.

This is complimented with measures to attract private
capital and implement administrative reforms tostreamline processes for planning and executing
infrastructure investments. GatiShakti is a criticalcomponent of this strategy, which aims to integrate
planning and implementation of infrastructure
projects.
As a result, programs such as Bharatmala, Dedicatedfreight corridor and Sagarmala were developed.
Several Multi Modal Logistics Parks (MMLPs) arebeing developed to connect multiple modes oftransport. MMLPs also help to improve utilization andperformance of inland container depots and container
freight stations. Development of maritime clusters,
container terminals and warehouses are other key
initiatives being undertaken.

Envisioning the Future of Indian Logistics@2047

9

Executive summary

These will help increase competitiveness of India’slogistics sector globally, boost MSME (medium andsmall manufacturing enterprise) growth and reduceship turnaround time.
However, delayed land acquisition and clearances are
key challenges which need to be addressed. It has asignificant impact on project timelines andprofitability. A complete roll out of Nationwide single
window clearance system by government will go along way to resolve this.

India will need to speed up dedicatedfreight infrastructure connecting four
major metros. So far, only around
1,724 km out of planned 2,843 km
direct freight corridor got
commissioned as of Jan 2023. DFC is
an important part of National Rail Plan
2030, which aims to increase the rail
share from 26% to 45% over the next
10 years. Higher rail share will resultin significant logistics cost savings for
manufacturing companies. In addition,
new rail infrastructure can boost
industrial townships along the freight
corridor.

Attract investment and investor interest
Traditionally, GOI has been the main proponent andfinancier for the development of infrastructure.
However, it is increasingly adopting new policies toattract private and foreign investment as levers tofast-track infrastructure development.
This includes 100% Income Tax exemption in any
consecutive 10-year period out of 20 years ofoperations for road construction projects, volumebased rebate scheme of up to 100% on rail tariff formovement of empty containers from orts tohinterland for its utilization in exports as offered by
CONCOR, among others.

In total, the investors have opportunity
to invest in ~6,000 projects worth INR
52 lakh crore (~US$650b), which can
aid the transportation andlogistics sector.

10

Envisioning the Future of Indian Logistics@2047

Although 100% FDI has been permitted in mosttransport infrastructure development initiatives, thesector requires establishment of processes toaccelerate clearances, simplification of regulations topromote higher FDI inflows.

100% FDI allowed in• Air transport (including air freight)• Port and harbor’s construction and maintenance• Railways: under automatic route forconstruction, operation and maintenance of
suburban corridor projects through PPP

Additionally, GOI is aggressively pushing Public
Private Partnerships to increase investments and has
met with a significant success in the maritime sector.

Proposed MMLPs will need aninvestment of over US$6.25b(INR50,000 cr.) from the private
sector. The projects will include
warehouses, specialized cold chain
facilities, freight/container terminals,
and bulk/break-bulk cargo terminals
and will help in achieving better modal
mix in favor of rail. Interest fromprivate sector is subdued so far due tothe large investment size anduncertainty in demand.

Stakeholders need to develop and build
expertise in Infrastructure asset
strategy, project financing,infrastructure M&A and deal structuring;
and adopt a collaborative approach todesign an optimal risk-sharing protocolthat can enhance bankability of large
infrastructure projects.

Executive summary

Focus on sustainable logistics
India’s shipping and logistics sector is poised toembrace sustainable practices to comply withdomestic and global regulatory policies. This includes
complying with key regulations and initiatives, such as
Energy Efficiency existing ship Index, Carbon intensity
rating and Emissions Trading System.
To meet emission related regulations, several
initiatives are being adopted globally such asissuance of green bonds for raising capital, adoptionof low/ zero-emission fuels, improved availability ofshore power, development of intermodal transport
within port, usage of eco- friendly packaging
materials, and others.
India’s maritime vision aims to inculcate practices toreduce cargo emissions per ton. Moreover,development of institutes such as the National Centreof Excellence for Green Port & Shipping will act as atechnological arm and will help develop data driven
policies to foster carbon neutrality and circular
economy in the shipping sector. The institute will also
carry out education, applied research and technology
transfer in maritime transportation at the local,
regional, national and International levels. It will focus
in the area of energy management, emission
management and sustainable maritime operations.

EY view- Global supply chain
executives on ESG.
Motivators for improving supply chain sustainability

Cost saving

61%

Regulatory compliance

51%

Pressure- partners

41%

Revenue growth28%

Pressure from
customers

26%

Pressure fromworkforce

25%

Ethics21%

India has committed to implement
IMO’s energy efficiency requirements
for existing ships and carbon intensity
requirements for all vessels. IndianPorts are expected to adhere to all
the targets which are in line with nine
UN Sustainable development goals.
These include obligations on safety,
efficiency and sustainability. Also,
India has been selected as the first
country under the IMO’s Green
Voyage 2050 project to conduct apilot related to green shipping.

According to EY’s sustainable supply
chain survey- 2022, althoughcompanies are emphasizing on
adoption of ESG initiatives, they lacka viable business case to commit andpursue sustainable practices. To
solve this, organizations need tooffer innovative solutions to enhance
the inherent willingness of
stakeholders to pay a premium forcarbon-neutral shipping.

Cost saving, regulatory compliance, andpressure from partners are top
motivators for supply chain executives
to improve supply chain sustainability.

Envisioning the Future of Indian Logistics@2047

11

Ports, shipping andlogistics in India:

current scenario and outlook

12

Envisioning the Future of Indian Logistics@2047

Ports, shipping and logistics in India:
current scenario and outlook

By FY48, India’s GDP is expected to grow to US$26t, with freight being the major driver inachieving and sustaining this growth.
From 2023, India is expected to be a part of a
select group of three countries whose yearly GDP
growth exceeds US$300b.
In 2022, the US pipped China to register the highest
GDP growth in absolute terms. However, China is
expected to reclaim this position in 2024. Between
2022- 2027, India’s contribution to global GDP
growth is projected to average ~6.4% with the highest
being 7.6% in 2023.

India’s financial performance and global standing

GDP- global
share and rank

Investment as% of GDP

Government
spend1 as a
% of GDP

30.2%

27.2%

32.8%

30.1%

2016

3.0%
7th

2021

3.3%
6th

2027E

13.2

25
10.4

20

12
10

8

15

8

6

10

2.9

14

6

4.3

4

5

2

0

2020 2025 2030 2035 2040 20450

GDP (US$ trillion)
Source: EY @100, Niti Aayog
GDP projections as per “most favoured case”

On the contrary, China's contribution to global GDP
growth averages ~24% with the highest being 30.9%.
However, India’s projected growth of “Investment
percentage of GDP” at 33.7% in 2027, reflects India’s
position as a strong investment hub.
India’s “Investment as a percentage of GDP”
averages ~31.9% from 2016 to 2027E, whichsurpasses the global average of ~24%.
India- merchandise trade performance versus peers

4.1%
3rd

India- GDP and freight projections

33.7%

27.6%
Freight
moved(ton-km)2020

Global shareImports2021

Global shareExports2021

China~20.2t

11.9%

15.1%

India

~3t

2.5%

1.8%

Source- IMF
Government spend1- General government expenditure

India’s GDP growth has traditionally outgrown
growth in freight activity. Same trend is expected
to continue in the future.
From 2015 to 2020, GDP grew by 32% but freightactivity increased by 28% only. EY estimates thatIndia’s GDP is projected to grow to US$26t by FY48.
However, despite a higher base, GDP is projected to
grow at a CAGR of ~11.3% from 2020 to 2025, andfreight activity is only expected to grow by 8.2%
CAGR.

Source- WTO, Niti Ayog
Countries in order of freight moved (ton-km)

Envisioning the Future of Indian Logistics@2047

13

Ports, shipping and logistics in India:
current scenario and outlook

India’s target to have US$1t merchandise exportby 2030 will be a significant driver to push trade,
thereby increasing freight movement.
In 2021, commercial activities generated about 4.6b
tons of freight annually, which resulted in ~3 trillion
ton-km of transportation demand. This demand was
driven by rising income levels, higher exports, rapidly
growing e-commerce sector and a growing retail sales
market.

GDP outgrows freightContinuing with the past trends, India’s GDP
growth of 8.4% CAGR is expected to be higher
than that of freight (6.3% CAGR).

15.6t ton- km
Expected goods movement by 2050. This growthis expected to be boosted by higher exports.
Source: EY analysis, Niti Aayog

India’s high logistics cost as a share of GDP presents a unique opportunity to optimize
freight movement via efficient modes.
India’s logistics sector grew by ~45% since 2020 and
is currently valued at ~US$160b to US$200b (INR
13- 16 lakh cr.)India- logistics service performance comparison
Logistics cost as a share of GDP

India’s transportation and logistics sector acts as the
backbone to support the fast-paced growth, which thecountry is poised to achieve in the next 25 years. The
sector comprises four different modes- Road, Rail,Shipping and Air.
India’s freight movement is heavily skewed toward
road transportation, which moves 66% of cargo (inton-km). This is followed by rail (31%), shipping (3%)
and air (1%).
To aid this cargo movement, India has an extensive
network of support infrastructure comprising 129+in-land container depots, 168+ container freightstation, and ~300 m sq. ft. of warehousing space.
The sector handles ~10,000 commodities andemploys ~22m people. It is one of the highly
fragmented sectors, with only 10% of the sector
operated by organized players.
GOI acknowledges the issue of high dependence onroad transportation and is exploring options to movefreight optimally with a focus on reducing logistics
costs and bringing it at par with the global standards.

The EU and the US have invested heavily inincreasing logistics efficiency by optimizing modeshare.
Currently, 62% of logistics cost in India is attributed totransportation and 34% to inventory management.
India needs to adopt inventory management bestpractices to improve supply chain management anddesign.

India

13%-14%

China

10%

US

8%

EU

8%

India’s transportation and logistics landscape
Modal split- freight movement in India in 2022
(ton-km)Road
3.05
trillion
ton-km

66%

Rail
0.82
trillion
ton-km31%

Shipping
1,108
millionmetric ton

Air
2,068
millionton- kmWater
12 major,
200+
non-major
ports

Airport131
airports

3%

1%

Infrastructure present
Road
63.73 lackmRail1.08 lac
km

Support Infrastructure present

InlandContainer
Depot

Container
Freight
Station

129

168

Multi
Modal
Logistics
Park
1*

300m
sq. ft.
warehouse
space*Under construction

Source- PBI, Ministry of shipping, Ministry of civil aviation, Niti Aayog

14

Envisioning the Future of Indian Logistics@2047

Ports, shipping and logistics in India:
current scenario and outlook

India’s high average lead freight distance (500 km)
indicates a strategic misalignment of manufacturing
centers and consumption areas
Despite having one-thirds the geographical area,
compared to the US, India has 37.5% more leadfreight distance. This significantly increases India’s
manufacturing cost and reduces the export potential.

India plans to reduce its logistics cost
as a share of GDP between 8% and10%, by 2030. This will be at par withinternational standards.
Sources: Business Standard, The Hindu

Vision@ 2047 is a guiding principle which is being supported by multiple regulatory andgovernment initiatives to revamp India’s logistics sector
Vision@ 2047 and its relevance in the logistics sector

Vision@2047
aims to set
specific targets
for 10 sectors totransition India
into a developed
nation by 2047.

Road Logistics infrastructure• Build 32,000 km of expressway andaccess-controlled highways• Invest US$6t (INR 480-490 lakh cr.)for urban infrastructure development
Rail infrastructure development• Invest ~US$1.7t (INR 135-145 lakhcr.) over the next 25 years• Target 40% to 45% railway share in
freight transport by 2030
• Develop seven hyperloop lines,
including two for cargo

Maritime infrastructure• Increase port capacity by four times to 10,000
MTPA
Air infrastructure development• Develop 20 new airports on aerotropolis
approachMulti-modal and logistics hub• Reduce logistics costs by augmenting cargo
speed by two to three times (current average
speed of intercity transport ~24 kmph)• Build more than 70 multi-modal logistics park

Regulatory levers which are expected to help achieve Vision@ 2047

Freight Corridor• Private Freight
Terminal Policy —Dedicated Freight
Corridor
Corporation ofIndia Limited

Railways

Digitalisation of logistics• Integrated digital systems• Unified Logistics Interface
Platform• Ease of logistics portal• National Civil

Aviation Policy

Vision@2047

Multi-modal• GatiShakti MultiModal Cargo
Terminal Policy• Multi-modal
Logistics ParkBharatmala
SchemeRoad• Bharatmala scheme

National
Logistics
Policy(NLP)

GATI
Shakti
Airways• National Rail Plan
• 100% railway

electrification
Shipping• Sagarmala Scheme,
Inland Vessels Bill, Major
Port Authorities Act

Regulatory framework• Transform logistics ecosystem
to meet global regulatory
standards• Improve logistics services andease of doing business

Envisioning the Future of Indian Logistics@2047

15

Ports, shipping and logistics in India:
current scenario and outlook

The Government of India plans to invest ~US$1.2t(INR 100 lakh cr.) in building a holistic infrastructure
through GATIShakti.

NLP aims to develop a technology enabled, costefficient, resilient and sustainable logistics
ecosystemGATI Shakti aims to strengthen local manufacturing,push exports, and raise possibilities of new futuristic
economic zones, thereby making India a hub forworld-class logistics infrastructure. Furthermore, themulti-modal connectivity plan aims to increase cargohandling capacity and reduce the turnaround time
across all the transport modes.

Initiatives taken under NLP include- automating EXIM
processes for paperless clearances (eSanchit- eStorage and Computerized Handling of Indirect Tax
documents), building complimentary infrastructure
related projects under Gati Shakti and reforming rail
sector. NLP also focuses on improving seaportquality, engaging with private and MSME sectors toboost exports (for toys, textiles, chemicals) andfacilitating modal shift in first and last mile logistics.

India’s share of global “container port throughput” increased from 1.7% in 2016 to 2% in
2020. In contrast, China’s share exceeded 30% in 2020
India's rank in “container throughput” improved
from 16 to 11 in 2016 and has since remained
constant.

Also, India’s share of global “container throughput”
shrunk from 2.1% in 2019 to 2.04% in 2020. Thoughinternational maritime trade grew by ~3.2% in 2021,
Indian shipments grew by 5.9% (in FY22).

Although “container throughput” reduced by ~1% (in2020) globally, for India, it reduced by ~4%.

0.30

0.90
0.75

0.20

0.60
0.45

0.10

0.30
0.15

0.00

2016
China

2017
US

2018
Singapore

2019
India

2020

0.00

Global Throughput inbillion TEU

Country wise throughput(million TEU)

Container throughput: Top three countries and India- 2020

World

Average vessel size and median time in port-2021

China's average vessel size is 1.12 times that ofIndia’s. Its median time in port is ~11% less. This is
likely due to superior systems, process and enhanced
level of digitization in Chinese ports.

1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0

35
30
25
20
15
10
5
0

Median time in port (days)
Sources: UNCTAD

16

Envisioning the Future of Indian Logistics@2047

Median port timein days

Despite the relatively smaller size of vessels at
Indian ports, their median time at port is muchhigher.

Avg. vessel size
(Trillion Ton)

Sources: UNCTADPorts, shipping and logistics in India:
current scenario and outlook

450

30

375

25

300

20

225

15

150

10

75

5

0

0

Container capacity(thousand TEU)

For ports to handle container vessels above 16,000
TEU, a draft of 18 m to 20 m is essential. Not many
Indian ports have sufficient draft to accommodate
them. The lack of deep draft ports result in shippinglines bypassing India, thereby reducing transshipment
opportunities.

Maximum cargo/container carrying capacity-2021

Max cargo capacity(`000 dwt)

India ranks 20th in “Max cargo carrying capacity forship” and 40th in “Max container carrying capacity
for ship”

Maximum container carrying capacity (TEU)
Sources: UNCTAD

Cargo moved by Indian ports increased by 5.5% in FY22, and has already exceeded thepre-COVID-19 levels
Cargo moved via maritime transport is projected toincrease by ~63.5% from FY22 to FY30

Cargo moved by Indian ports in million ton:
FY17- FY22

As of FY22, Kandla is the biggest Indian port handling
127.1 m ton cargo, followed by Paradip 116.1 million
ton. POL (Petroleum oil and lubricants) was the mosthandled commodity by top Indian ports.

1,324

1,320
1,282
1,250
1,208

Share of cargo handled for “Top ports”
which average ~45% pre-COVID-19 has
increased to 54.4% in FY22

1,134

FY17

FY18

FY19

FY20

FY21

FY22

Source: Ministry of Shipping- India
FY22 numbers are provisional

Envisioning the Future of Indian Logistics@2047

17

Ports, shipping and logistics in India:
current scenario and outlook

Growth of traffic handled by top Indian ports from FY21 to FY22

Kandla Deendayal
Port Authority
Growth: +8.1%
Jawaharlal Nehru
Port Trust
Growth: +17.3%

SMP- Kolkata
Growth: -3.9%

Paradip

Mumbai Port
Authority
Growth: +12.3%

MumbaiMormugao Port
Authority
Growth: -16.1%

Mangalore
Chennai

Cochin Port Authority
Growth: +9.7%

Paradip port authority
Growth: +1.4%

Visakhapatnam Visakhapatnam port
authority
Growth: -1.2%

Goa

New Mangalore Port Authority
Growth: +7.7%

SMP- Haldia
Growth: -5.7%

Kolkata

KandlaCochinKamarajar Port
LimitedGrowth: +49.6%

Chennai Port
Trust
Growth: +11.5%

Chidambaranar Port Trust
Growth: +7.3%

Thoothukudi

SMP- Syama Prasad Mukherjee PortSMP Kolkata includes SMP Kolkata Dock System

FY22 numbers are provisional

Observation

Observation

The total cargo handled by top Indian ports increased
by ~7% from 673 million ton in FY21 to 720 million
ton in FY22. However, the share of total overseas
cargo handled by these ports decreased from 78% in
FY21 to 76% in FY22.

As of FY22, Kandla Deendayal port (267.1 million ton)followed by Paradip (249 million ton) are the biggest
ports in India in terms of port capacity.

18

Envisioning the Future of Indian Logistics@2047

Ports, shipping and logistics in India:
current scenario and outlook

There is an opportunity to improve port capacity utilization, which remains underutilized
due to mismatch in the growth of cargo and port capacity expansion
Top Indian ports performance- FY22
Port Location

Port Name (In order of capacity
utilization)

MumbaiMumbai Port Authority

Kolkata

Capacity
Utilization %Avg. output per ship
berth- day (Ton)

Avg. turnaroundtime (days)

75.8%

20,053

2.38

7,393

2.57

14,5892.13

SMP Kolkata

70.5%

SMP Haldia

Mumbai

Jawaharlal Nehru Port Trust

54.7%

29,418

1.15

Visakhapatnam

Visakhapatnam Port Authority

51.4%

16,0693.08

KandlaKandla Deendayal Port
Authority

47.6%

18,975

2.50

Paradip

Paradip Port Authority

46.6%

56,767

2.21

CochinCochin Port Authority

44.0%

31,513

1.44

Chennai

Kamarajar Port Limited

42.6%

27,482

1.93

Mangalore

New Mangalore Port Authority

37.5%

19,6272.00

Chennai

Chennai Port Trust

36.0%

20,1522.22

Thoothukudi

V.O Chidambaranar Port Trust

30.6%

19,9942.02

Goa

Mormugao Port Authority

29.1%

52,921

2.66

Source- Ministry of Shipping | FY22- provisional | List may not be exhaustive

Top state maritime board- capacity utilization for other ports- FY22
State Maritime Board (Inorder of capacity utilization)

Capacity Utilization %Port Capacity (million ton)

Cargo handled (million ton)

Gujarat73.4%

552.00405.39Odisha

59.3%

70.00

41.54

Andhra Pradesh

45.5%

193.4088.00

Maharashtra

42.0%

125.0052.47

Andaman and Nicobar

37.5%

4.11

1.54

Puducherry

34.4%

16.96

5.84

Tamil Nadu

31.3%

25.05

7.84

Kerala

29.9%

1.07

0.320

Karnataka

15.8%

5.00

0.79

Lakshwadeep

3.2%

5.82

0.18

Goa

0.3%

9.00

0.027

Source- Ministry of Shipping | FY22- provisional | List may not be exhaustive

As per international standards, ports should have an ideal surplus capacity of 30% for proper
functioning. However, Indian ports have a surplus capacity of 53.1% for top ports (total cargocapacity- 1535 million tons) and 40.1% for other ports (total cargo capacity- 1007 million
tons). The surplus capacity is due to the plan of augmenting India’s port handling capacity andbe ready for the upcoming potential growth In the sector.
Envisioning the Future of Indian Logistics@2047

19

Ports, shipping and logistics in India:
current scenario and outlook

India’s rail, road and air freight sector is witnessing improvement. However, it needs
regulatory and technological interventions to match global standards
In 2022, cargo moved by Indian railways increased
by ~7.5% YoY to 1,497 million tons.

Rail share in traffic having lead distance of 300 km
reduced from 51.5% in FY2008 to 32.4% in FY2019.

Currently, the share of Indian railways in total cargo
moved is ~31% and GOI aims to increase this to 44%
by 2051. To achieve this growth, challenges such as
low level of containerization, higher cost for
movement of lighter cargo and insufficient first andlast mile connectivity need to be addressed.

Development of new infrastructure and launch ofsuper freight trains like 3.5 km long Super Vasuki is awelcome step for improving rail freight efficiency.
Rail- Cargo moved and projection (billion ton-km)

Share- global rail freight (ton-km)

US

21.2%
6.5%

India
EU 3.5%

Average goods train speed in India
increased by 83.5% to 43.2 kmph fromFY20 to FY21. However, this pales incomparison to the high-speed freighttrain (350kmph) running in China.
Source: National Rail Plan

Congestion due to poor road conditions and absenceof city bypass network has significantly impacted
the average speed of trucks in India
Indian trucks cover an average daily distance of 250
km to 400 km, which is very less compared to 700 km
to 800 km covered for trucks in the EU and the US.
Moreover, India’s fleet is skewed toward smaller 16
ton to 25 ton trucks which tends to be less costeffective. This coupled with high empty running
percentage increases the total cost of ownership,
thereby increasing the cost of transportation
drastically.
Road freight performance- India and peers- 2020

27.5%

India

35%

Trucks with a higher payload (which havea lower share in India) are more fuelefficient. For example: Freight cost (perton-km) for 9T truck is ~US$0.04 (INR
3.56) which is 2.5x that for a 40T truck.

800

4

600

3

400

2

200

1
0

0
2018 2024 2031 2041 2051
Freight moved
Lead distace

With ~131 airports, India accounts for only ~0.3% of
the global air cargo. ~62% of Indian cargo wasinternational
Airlines transported ~35% of global cargo (by value)
but less than 1% of world trade by volume. Averagecargo load factor increased from 54% to 56% in 2021.
The highest load factor (76%) was for Asia- Europe
route in 2021. But, global freight in ton-km is
projected to reduce from 272 billion ton-km in 2021
to 240 billion ton-km in 2023.
Federal airlines leads the list of top 15 airlines/logics
services, by moving most cargo (20.6 ton-km)
globally in 2021. No Indian origin airlines/logistics
service figures in this list.
Air- Cargo moved- India and the world
5
India- Cargo moved(million ton)

China

20.2%

5

80
60

3

40
1

-1

20
2016 2017 2018 2019 2020 2021
India- International Cargo
India- Domestic Cargo
Global- Cargo moved

Source: Ministry of Civil Aviation, IATA, AAI, FAA
Source: Niti Aayog, Ministry of Road Transport, Eurostat,
Mahindra rise, ICCT

20

Envisioning the Future of Indian Logistics@20470

Global- Cargo moved(million ton)

EU

14.8%

1000

Source: National Rail Plan

Empty running percentage

US

6

Lead distance (km)

27.5%

China

Freight moved (billion
tonne- km)

Rail freight performance-India and peers (2020)

Ports, shipping and logistics in India:
current scenario and outlook

Stakeholders in shipping and logistics sector to revisit, elevate and resolve challenges andfast-track growth

Opportunity areas for India’s shipping and logistics sector
Policy• Lack of time bound land acquisition

Infrastructure• Captive logistics infrastructure is a(coupled with diverse land acquisition
regulations) and clearances resulted ina delay of ~850 government run
projects (till Dec 2022).

deterrent to inter-connect them withnationwide logistics infrastructure.

• Transition to hub and spoke model
requires development of logistics
parks, which are capital intensive.

• Lack of dedicated skill enhancement

policy for logistics sector employees is amajor impediment• Effective implementation of National

Logistics Policy requires a close
coordination between central and state
government. Effective execution of NLP
requires establishment of ground levelsystems and processes for efficient
implementation.

Business• Involvement of multiple players andintermediaries results in several cargoexchanges, leading to cost escalationand inefficiency• Arrival of bigger vessels at ports islimited by lower draft in Indian ports.

01• Diverse export and import commodities

result in a general mismatch between
type of containers used (40ft for importand 20ft for export). This results inoperational and financial challenges.

processes increases vessel
turnaround time.

• Uneven utilization of different modes

02
03

of transportation for freight
movement is a challenge.

Digital• Absence of a database to map goods04• Unorganized players choose labor overtechnology because it is cheaper
compared to investing in a forklift or
hand-held computers• Lack of modern equipment and05

moved by road makes it difficult tohave a data-based policymaking• Existing government backed digitalsolutions have not been fully effective
in offering end to end logistics
visibility• Lack of adoption of digital

06

technologies results in inefficientroute selection, manual processes anduninformed decisions, which increase
cost of transportation

Manufacturing• Due to dependence on imports,

Manpower• Frequent labor unrests and• Lack of shipping container• Lack of attractiveness of sector fails

container availability is delayedhindering freight movement and resultsin loss of revenue
manufacturing ecosystem in India
creates a huge dependency forcontainers on global container leasing
companies and Non-Vessel Owning
Common Carriers (NVOCCs)

unionization can impede the smoothfunctioning and infrastructuredevelopment
to attract skilled personnel

Envisioning the Future of Indian Logistics@2047

21

Measures required toaccelerate India’s
competitiveness inglobal ports, shipping
and logistics sector

22

Envisioning the Future of Indian Logistics@2047

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

In order to address these challenges, EY and BCCI have developed thefollowing strategies to enable the logistics sector and provide
suitable solutions:1

2
Adopt advanced
technologies andexplore new
business models

Road
logistics

Fast-track
infrastructuredevelopment
Port andshipping

Multimodal
Logistics

Air cargoRailtransport

Focus onsustainable logistics

4

Attract investment
and investor interest
3

Envisioning the Future of Indian Logistics@2047

23

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Adopt advanced technologies and explore new business models

1

COVID-19 pandemic, recent supply chain disruptions and increased focus on sustainability
have led to increased adoption of technology-enabled solutions.

Macro
economic

External

Internal/
operational

Drivers/triggers promoting digital adoption
Logistics/
inventory cost

Demanduncertainty

Labor
shortages

Increaseoperational
cost

Cybersecurity

Nearshore,offshoredecisionMuti-modaltransportation

Government
regulations/
Mandates

Increasing
focus on ESG

Transition toremotemanagement

Covid-19
pandemic

Conflicts/Wars

InflationTradebarriers

Climatedrivendisruptions

Geo-politicalchallenges

Advanced
technology

Shift in logistics priorities- adoption of digitaltechnologies
End-to-end visibility and traceability
Manage data in real-time to generate strategic
insights and improve productivity and processaccuracy.
Networked supply chain
Transition from a linear, rigid supply chain to an
integrated network, to increase agility andresilience
Automation and operational efficiencies
Improve productivity and decision making toincrease speed to market
Compliance and sustainability
Driven by demanding stakeholder
expectations, customers

COVID-19 pandemic and supply chain disruptions prompted logistics companies to monitor and gain visibility into their
supply chains minutely. As a result, logistics companies have accelerated the pace of adoption of digital technologies
across various modes of transportation and applications.

24

Envisioning the Future of Indian Logistics@2047

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Key technologies and their applications in various modes of transportation
Blockchain

Big Data

Cloud logistics

Maritime• Smartcontract• Automatedpayment• Smart bills of
lading• Certificate oforigin• EXIM license• Port traffic
management• Vesselmaintenanceandperformance
analysis• Spatial
imagery
analysis• Ship/cargomonitoring
solution• Digital
freight
forwardingRoad• Real-timetracking• Claims
management• Routeoptimization• Labormanagement• On-board
diagnostics• E-logs• Vehicle
navigation• Smart sensors
for safety

Air• Optimize
airportresourceusage• Develop air
cargo network• Informationexchange

Autonomous

DronesDigital twins• Autonomousvehicles foryard
management• Autonomous
ships• Security andsurveillance• Maritime
search andrescue• Port andterminal
operation
management• Fleetoptimizationvirtualtransition ofship control
system• Transportmanagement
system• On-demandtrucktransportatio
n portal• Real-timepricing• Autonomous
trucks• Optimize
middle, lastmile delivery• In-transit
vehicleinspection• Emergency
deliveries• Routeplanning• Identificationof constraints• Weather
updates• Safety reports• Groundoperation
automation• Dynamic
pricing• Cargo andasset
management• Autonomousvehicles for
airportmanagement• UAV
transport• Optimizationof air trafficsystems

Rail• Network
optimization• Cargotracking• Monitor track
condition• Demandplanning• Intermodal
monitoring
system• Real time
tracking• Delivery
updates• Autonomous
trains• Rail track
surveillance• Railroad
Infrastructure inspection• Predictive
maintenanceof rail tracks

Ware-house• Demand
forecast• Inventory
management• Anti-theftsolutions• LabourManagement• Network
performance
analysis• Dispatch
management• Multi-channel
orderfulfillment• Ordermanagement• Warehousemanagement• Multichannel
platforms• Robotic
applicationfor order
management• Inventory
management• Orderscanning andcollection• Warehouse
simulations

Envisioning the Future of Indian Logistics@2047

25

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Adoption of blockchain, big data and cloud computing is transforming the operational
efficiency for logistics companies
Blockchain - focus areas
Automation and efficiency
Physical and digital security
Visibility and resilience
Enhanced customer experience

Globally, the adoption rate of blockchain
technology is higher in shipping andtransportation industry. In India,
blockchain adoption is gradually
increasing, especially as part of multiple
government initiatives such as theElectronic Cargo Tracking System.

Big Data Analytics - focus areas
Automation and efficiency
Environmental Sustainability
Visibility and Resilience
Enhance Customer Experience

The adoption of this technology globallyis significantly higher across allfunctions of logistics.
In India, the emergence of logistics
start-ups backing this technology is
gradually transforming the unorganizedtransportation sector.

Cloud logistics — focus areas
Transportation and warehouse systems
Operational Efficiency
Physical & Digital Security
Visibility and resilience

Compared to other technologies,
affordability of onboarding thistechnology is the primary reason behind
its high adoption in the logistics
industry. Numerous start-ups are
implementing these solutions to support
heavy operational processes at a
relatively low price.

Blockchain is being used by logistics companies andports globally to improve operations and reduce
unwanted costs

The Ministry of Finance, India, has piloted E- Cargo
Tracking System (ECTS) for secure documentation and
GPS-tracking of containers

One such example is Maersk, which collaborated with
Dutch customs and the US Department of Homeland
Security to track cargo movement using blockchain.
Blockchain helps with digital documentation and smart
contracts and is being actively used in the ports of
Antwerp, Rotterdam, and Singapore. Rotterdam port isusing blockchain to make administrative and financial
streams paperless.

Test run of ECTS was carried out at the Inland Container
Depot of the Tughlakabad Import Commissionerate.
Post successful completion of the pilot, the initiative
may be launched across India after an assessment ofcost, time, and compliance. Also, the launch of OpenNetwork for Digital Commerce by the Indian
government in 2022 may lead the way for increased
adoption of blockchain in digital commerce.

26

Envisioning the Future of Indian Logistics@2047

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Big data-based solutions help to optimize operations,renew port assets while ensuring optimum cybersecurity
In Singapore and Malaysia, ports utilize big data
analytics to create advanced inspection systems toassess the history and cargo type of importers. Port ofCartagena uses multiple solutions for IoT analytics
which help forecast equipment failures. To implement
big data analytics, shipbuilders and shipping companies
have been entering into partnerships with leading
technology suppliers and universities.

Several Indian start-ups are using predictive data toenhance operational efficiency
Additionally, they are using big data technology
extensively for on-demand freight booking, increasingfuel efficiency, pooling truck drivers, route optimization,etc. A report by NASSCOM (National Association ofSoftware and Services) anticipates that India's big data
analytics market will reach US$16b by 2025, whichplaces it among the world's top 10 big data analytics
market.

Cloud-based solutions streamline logistics throughfleet management, inventory management and cargo
tracking

Indian Ports Association leveraged ERP to connect
major ports to decrease turnaround time, and increase
ease of doing business

Hamburg Port uses cloud-based data analytics tool
“SmartPort Logistics” to regulate vessel operations.
Global logistics company DHL integrates logistics
marketplaces using cloud-based technologies fortransparent shipping options, shipment tracking, andlast-mile delivery.

Another major initiative taken by the Indian Ports
Association is the introduction of NLP- Marine. It aims
to be a centralized hub for the electronic flow of traderelated information for all ports and ports related
entities. It is being replaced by NLP- Marine.

“
Everything comes around the cost involved with thedigitization. Once this factor is addressed, digitization ininternational trade will happen very rapidly.
Ravindra Rajwade,

Shipping & International
Logistics Professional

Envisioning the Future of Indian Logistics@2047

27

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Autonomous vehicles and drones are expected to play a pivotal role in middle and last milelogistics while digital twins help to pre-empt disruption in supply chain
Autonomous vehicles - focus areas
Sustainability
SafetyCost-efficient
Automation

Based on infrastructure development,
penetration of autonomous trucks is
expected to increase in the logistics
market in the next 5 to 10 years. Adoptionof this technology has already begun in
the US, China, and the Europe undercontrolled environment like port terminals,
yards, warehouses, airports, etc.

Drones - focus areas
Middle and last-mile deliveries
Security and surveillance
Increase logistics efficiency
Enhanced customer experience

Drones are currently deployed in case of
emergencies when medical and relief
packages are required to be transported
to remote areas. However, different
regulations across countries and regions
delay drones' mass adoption anddeployment in logistics.

Digital twins- focus areas
Freight handling
Efficiency at warehouses, yards, etc.
Customer experience
Protection to shipments

Not only are autonomous vehicles being
tested/introduced in road and maritime logistics, butalso in port operations
With autonomous technology in its initial stage, Volvo
Autonomous Solutions and its commercial partners arecollecting data with a sensor-equipped truck in theGothenburg, Sweden, port area. But start-ups, such as
TuSimple, have already completed the testing of fullyautonomous semi-trucks on public roads in July 2021.
Also, Orca AI partnered with NYK line, to trial the firstautonomous commercial cargo ship in the congested
waters of Tokyo Bay successfully. This was a landmark
moment in the application of autonomous ships.

28

Envisioning the Future of Indian Logistics@2047

Digital twins use simulations to build
resilience against natural disasters,
cyberattacks and others. By using satellite
and navigation systems, they help assess
the entire journey of shipments. Virtual
layouts help companies redesign
warehouses to enhance productivity
without impacting operations.

Although usage of autonomous vehicles has not yet
started in India, Indian shipyards are developing
autonomous ships
Cochin shipyard is manufacturing two autonomous,
zero-emission electric ferries for Norway-based
company ASKO Maritime AS. These vessels will be used
to transport trailers across Oslo Fjord between two of
ASKO’s distribution centers.

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Logistics companies are partnering with drone
manufacturers to assess the feasibility of delivery bydrone

In India, the usage of drones for commercial
transportation is low, but recent government
initiatives are expected to change that.

FedEx Express is testing middle-mile autonomous dronedelivery through a partnership with Elroy Air to improve
operational efficiency and safety. Drone canautonomously carry 300 500 pounds of cargo up to a
distance of 300 to 500 miles. In Europe, DHL has
partnered with Dronomics to use drone for middle-mile,cross-border, and inter-city transportation.

The demand is expected to be spearheaded bypharmaceutical and e- commerce industry. A typicalcase of this is the delivery of vaccines in the Northeast
by Health Ministry as part of Drone Response andOutreach (i-Drone). Also, the passage of “Drone Rules
2022” is a welcome step as it legalizes operation ofdrones (up to 2 kg) for non-commercial purposes. In
addition, budget FY2022, as part of ‘Drone Shakti’, aims
to support drone start-ups.

Globally, digital twins help to identify potential
weaknesses from production to delivery
Ericsson and the port of Livorno in Italy are working tocreate a digital twin to remove the inefficiencies infreight handling and loading and unloading of
shipments. This is being achieved by creating a realtime digital replica of the port area using a 5G network,smart sensors, LiDAR and advanced cameras.

Indian companies do not have adequate data sets toutilize digital twins to the fullest.
While these new-age tools can help companies, theyneed historical and newer data to predict irregularities.
However, with the rapid adoption of Warehouse
Management Systems or Transport Management
Systems, and Supply Chain Visibility Tools, the adoptionof a digital twin is set to increase.

“

Technological advancements and global regulations will impact
the international shipping and logistics industry. India needs
transparency in the logistics process and GOI needs to focus on
the integration of the e-way bill and tollgates with the GST. This
will align all the three major stakeholders, which are shippers,
consignee, and carriers.

Mr. Dharmendra Gangrade,
Head of Logistics Management
Center, L&T Ltd.

Envisioning the Future of Indian Logistics@2047

29

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Existing digital technologies have increased speed of movement of goods, and GOI is putting
significant efforts to ensure end-to-end supply chain visibility
Unified Logistics Interface Platform (ULIP)

Enablers of digital adoption in India
Emergence of several
new tech and PE fundedlogistics operators has
made a strong
penetration in Indian
logistics market‘Digital India,’ ‘Make inIndia,’ and National
Logistics Policies aresome of the initiatives
that work together withthe logistics industry todrive growth

Formation of Logistics
Division in Department of
Promotion of Industry andInternal Trade to devise
an action plan for
integrated developmentof the logistics sector.

Developing a national
logistics workforce
strategy for the
integrated skill
development ofprofessionals in thelogistics sector

Indian government’s digital solutions
E-way bill

Create a nationwide single window logistics
platform for end-to-end visibility
Provide visibility for optimal usage of various modesof transportation and offer a platform for dataexchange between government and private entities
Offer data which can be utilized by the stakeholders
for simplification of complicated processes likecompliance, document filing, certifications, andapprovals.

• It facilitates truck movements across states andreduce turnaround time.
• Companies are integrating e-way bill with RFID
tag and GST portal, for faster movement.

Develop a logistics gateway by integrating
information available with various government
agencies across the value chain

e- Sanchit (ICEGATE)ULIP integrates 24 systems, 78 APIs and1,454 fields across waterways, ports, shipping,
civil aviation, railways, DGFT and customs androad transport and highway• eSanchit (e-Storage and computerizedhandling of indirect tax documents)
supports paperless processing, uploading of
support documents• It saves time and facilitates international
trade
E-Logs• Portal was developed by logistics division of
DPIIT to facilitate time-bound resolution ofissues.
• Additional functionality of registering,
coordinating and monitoring resolution ofuser issues is being developed
GHG Calculator• Developed to promote sustainability in freighttransportation• It calculates and compares total cost ofoperation and GHG emissions, thereby
promoting a shift to low-carbon modes oftransport

30

1

In order to provide real-time information to all
stakeholders in the logistics value chain, GOI has
developed ULIP. It is positioned to be a unified platformthat offers information related to logistics-related
services such as cargo/ shipment visibility,
authorizations, and certifications seamlessly.

Envisioning the Future of Indian Logistics@2047

2

3

Leverage a network of 800+
toll plazas to gain visibility oftruck movements and control
toll-based payments

Capable to trackrail freightreal-time
movements andimproveefficiency

4

ULIP’skey traits

Obtain granularvisibility overseaportoperations andeliminate
wastefuldemurrage

Check truck driver’s status

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

To build a state-of-the-art port ecosystem, a collaborative approach for digitaltransformation is being conceptualized
Digital transformation involves the adoption of portbased Enterprise Business System (EBS) to improve
work processes
As part of detailed business process reengineering,
implementation of EBS aims to standardize processes
across all ports and build an all-inclusive connected
port eco-system for maritime trade.
This is a major step toward port modernization andautomation, which aims to foster growth anddevelopment of major public sector ports.

Benefits for traders
Increases visibility and access to logistics service
providers across India
Offers access to competitive rates for various
logistics services
Assists in EXIM certification through NLP single
window certification system
Gives access to useful statistics and dashboard
for efficient business planning

Vision for port-based EBS
To build a world-class port ecosystem which:
Promotes ease of doing business

EBS involves integration of core solution
components with Port Community System

Driven by transparent, simple and error-freebusiness processes
Uses technology to achieve strategic businessobjectives

Port
Community
SystemIntegrates seamlessly with prevalent systems
and devices

NLP aims to be a one-stop platform to connect all
stakeholders to improve efficiency and transparency
NLP plans to cover all trade processes of the logistics
sector across all modes of transportation. This iscomplimented with an E- marketplace, thereby
providing end-to-end coverage for EXIM Trade.
Implementation of NLP has been initiated with thedevelopment of NLP Marine in the first phase. NLPMarine can integrate with- Port Operating Systems/
Terminal Operating Systems, ICEGATE, multiple
regulatory agencies, among others. It aims to reduce
regulatory complexities and enhance ease of doing
business.
Some of the modules available for NLP- Marine are:Common Application Form (CAF) module, e-VGM (aslatch-on with service providers), Booking (as latch-on
with service providers), Transport Module, E-SEAL
Module, Finance Platform, Insurance Platform,
Documents Exchange ModulePort
operations
solutionStandard
ERP
solutions

Auxiliary
solutionsBenefits envisaged from the system
Improves operational efficiency through common
standardized business processes andoperating model
Enables faster request processing in delivery ofservices with better turnaround time
Reduces manual intervention/documentation
Improves transparency and accessibility of
information with integrated processing of
application and service request

Envisioning the Future of Indian Logistics@2047

31

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Activities of NLP Marine are categorized into four
distinct verticals:

Carriers

Bankingandfinance1

44

Aims to enrichuser experienceby enabling
seamless trackingof shipment andexchange of
documents andfacilitating securetransactions

2

Cargo

Benefit for Logistics Service
Provider (LSP)
Gives pan India visibility of services and accessto prospective users
Offers an opportunity to increase businessvolume and capacity utilization

Regulatory
bodies andparticipating
government
agencies

33

Improves collaboration between LSPs forproviding end-to-end solutions to users
Reduces time and effort for obtaining
regulatory clearances

Technological advancements and global supply chain disruptions have resulted in thedevelopment of new business models

External

Internal/
operational

Factors driving new business models
Labor
shortages

Utilization of
fixed assets

Labor
shortages

Business
expansionplans

Shrinkingmarketshare

Sustainability
goals

Increasedcompetition

Emergencenew tech.
start-ups

Customerpreferences

Market penetration of
e-commerce industry

Macroeconomic

Key shifts in logistics priorities for new
business models

Government
initiatives to reducecarbon emissions

Supply chain
constraints

Emergence of digital technology-based marketplaces

Collaborative logistics model

Circularity-based model

Post- pandemic
trendsChanging customer preferences and the evolution of disruptive technologies have led to the introduction of new businessmodels. In addition, emergence of digital start-ups is also transforming the traditional logistics companies. They aredeveloping in-house digital solutions and/or are collaborating with logistics companies to form new business models.

32

Envisioning the Future of Indian Logistics@2047

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Digital marketplaces- focus areas
and types of business models

Adoption in the logistics industry

Freight matchingHigh

MediumLow

High

MediumLow

On-demand service to customers
Optimization of vehicle fleet capacity
Agility and flexibility

GlobalDigital freight forwarders

Global• Uses digital tools that help in

communication and get quick status
updates regarding a shipment• Gives logistics providers access to• Digital freight forwarder employs a

IndianDigital load boards

Globaltransparent system that provides acomparison of various carriers tocustomers

GlobalOn-demand warehousing
shared warehouse and logistics
services on pay-per-use basis• Industries that benefit range from
hospitality to FMCG and industrial
manufacturing.

Crowdsourcing model• Known as a freight matching• It is a fulfillment method that allows

Indian• It is an online marketplace where truck• Model applies to last, middle, or first-

GlobalWorkforce marketplace

service, the digital load borads help
connect shippers and carriers.
owner-operators, shippers, and freight
brokers can post the load they haveavailable as well as find available loads.

• Provides a platform that connects
logistics providers with available
workforce like truck drivers• It helps optimize personnel resources

and address the volatility of workforce
demands.

owner-operators and individuals to use
their assets to transport products
mile transportation and offers
companies an opportunity to cut costs
and maximize supply chain efficiency.

70% to 80% of the logistics companies
have built or are planning to build orpurchase the marketplace models toincrease customer base and efficiency intheir services

Envisioning the Future of Indian Logistics@2047

33

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Collaborative logistics facilitates companies to have a platform to share assets. Circularity is
expected to grow with an increased focus on sustainability.
Collaborative logistics/Asset sharing
model- focus area and use cases

Circularity Model- Focus area and use cases

Combined usage of assets

Sustainability

New sources of revenue

Customer experience

Capacity utilization

Net zero emissions

Cost efficiency

Cost efficiency

Adoption in the logistics industry

Adoption in the logistics industry

High

MediumLow

High

MediumLow

High

MediumLow

High

MediumLow

Global companies explore ways to utilize theirdistribution center fully, by providing storage,
fulfillment services to others

Re-commerce returns shipment to in-country
recycle and resell channels reduces the originalretailer's freight and storage cost

“Fulfillment by Amazon” is one such example ofshared services or supply chain as-a service in retail
distribution. Many parcel delivery companies, such as
DHL and UPS, have developed joint parcel stores toreduce warehouse cost. This is also helping
companies, such as DB Schenker, who have partneredwith online freight exchange provider uShip to map
truck drivers and shipments efficiently.

UPS enabled a circular economy through smart andsustainable logistics by integrating circular economic
principles into its business model. This helps
customers reclaim or refurbish products andmaterials for subsequent use. Also, FedEx introduced
reusable packaging designed for shipments up to 2.5
kg. These shipments are resealable and facilitate
product return without the additional waste.

Although the usage of collaborative logistics model
is low in India, the GOI is launching multiple
initiatives to promote it

Globally, policymakers and regulators have identified
circularity as focus area and remain a significant
initiative

One such initiative is ULIP, which is a technologicalplatform, currently in the testing stage. It
collaborates with ministries, trade bodies, andlogistics companies to offer a common data platformthat enables optimum use of logistics modes, thereby
saving cost and time.

To reduce wastage, the EU mandated that by 2025,
textiles will have to be collected separately fromhousehold waste. Moreover, to promote sustainability,
the UK government has launched a joint initiative withthe private sector to offer funding of ~US$200 million
for research on new forms of packaging from plants,
wood chippings, and food waste.

“

In line with India's COP22 commitment to global climate change,
it is time to think differently and review our strategy, identify
sector-specific industrial clusters from the current model ofneed to promote and facilitate industrial zones/clusters withcomplementary industries and contribute to a circular economy
model, where one industry's input is the output of the other,
thereby reducing carbon footprint.

34

Envisioning the Future of Indian Logistics@2047

Capt. Ram Iyer,

Sr. VP, Seahorse Ship
Agencies Pvt. Ltd.

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Adoption of digital technologies in India’s logistics sector is in a nascent stage and will needsignificant intervention by industry and GOI for higher effectiveness
Challenge

Opportunity areas

Recommendations• To address this, GOI launched NLP-

• Complete transition from port

marine, which is positioned as aninclusive digital marketplace

Absence of a comprehensive
digital tool for end-to-end
cargo tracking and an
inclusive digital marketplace• NLP- Marine should also offer• As a result, the port community

system, which provided limitedcargo visibility, is being phased out• However, NLP-Marine only offers

Reduced interoperability
between systems andsubsystems results in siloed
implementation of digitalsolutions

Effectiveness of integrated
end-to-end logistics
solutions remains
challenging

transactional rates and allow users tobid on them

• Need for IT supported block handlingsystem, which can increase efficiency

tariff rates and customers cannot
make any transactions• Indian research institutions can be roped• Lack of digitization leads to manual• Service providers and customers needin to develop a comprehensive digitalsolution and ensure neutrality of
applicationintervention which affects
productivity

Legacy systems and manual
processes limit insights andproductivity

community to cargo community system• For e.g., manual review of purchaseorder before sending it to the vendor• In 2020, GOI announced plans to

implement Enterprise Business
Systems in Mumbai, Chennai, Deendayal, Paradip and Kolkata ports at a
cost of ~US$40m (INR 320 cr.)

to carefully consider adoption of digitaltechnologies and upgrade their legacy
systems• GOI should fast-track deployment ofenterprise business software for faster
digital adoption• Seamless implementation is required

across multiple government bodies toavoid siloed communication• Stakeholders may digitize operations• Participation by all logistics• Diverse regulations for data storage,• Stakeholders need to have a robust• Companies offering end-to-end• Offering "risk liability ownership“ withat different pace and intervals. Eachmay use a different solution andintegration of multiple solutions may
be challenging
protection and management may
result in siloed collection andprocessing of information

integrated logistics solutions arestill dependent on intermediaries
for services across the supply chain• Resultant multiple cargo exchanges
increase inefficiency• Intermediaries charge higher

stakeholders in global initiatives, suchas ICC- DSI (Digital Standards
Initiative), may help facilitate seamlessexchange of data
understanding of complex regulationsof data protection and privacy

integrated logistics solutions can help
improve effectiveness• Consolidation of some operations

handled by intermediaries can help
reduce cargo exchanges and drive
efficiency

margins, thus increasing the cost ofoperation significantly

Envisioning the Future of Indian Logistics@2047

35

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Fast-track infrastructure development

2

Major infrastructure initiatives undertaken by the Government of India
Recognizing the importance of improving and building new roads, railways, ports infrastructure, etc., the government has
increased its budgetary allocations. Simultaneously, GOI is also undertaking measures to attract private capital andimplement administrative reforms to make the process for planning and executing infrastructure investments efficient.
GatiShakti National Master Plan — a holistic approach for optimal utilization of infrastructure and predictive decision
making for seamless intermodal logistics movement

Key components
Mapping of allconnectivity andeconomic infrastructure
on a GIS-enabled platform
Whole of GOI approach.
Co-ordination with central
ministries, states and UTs

Mapping of all
infrastructure
for enabling
multi-modal
connectivity

Evidenced-based
decision making
for planning andoptimal utilizationof infrastructure

Integrated planning andimplementation of
infrastructure projects

Achieving
seamless andcost-effective
intermodal
logistics
movement

Institutional framework
Empowered Group of
Secretaries (E-GOS)
Network planning group
Technical support unit

Below are key project investments undertaken by ministries across various modes of transportation and logistics.

Dedicated Freight Corridor (DFC)
In line with the GOI’s initiatives to improve efficiency oflogistics in India, Indian Railways have taken a major
step toward providing better freight transportation.
Indian railways through Dedicated Freight Corridor
Corporation of India Ltd. have set up two DFCs which
are high speed and high-capacity railway corridors thatare exclusively meant for transportation of freight.
Total budget allocation

US$37.5b(INR 3 Lakh cr. )The Western DFC is 1,504 km long and runs from Dadri
near Delhi to Jawaharlal Nehru Port, near Mumbai. It is
designed for speeds up to 100kmph and has reduced
the traveling time from three days to one day. It isbeing developed in collaboration with the Japan
International Cooperation Agency (JICA). Eastern DFC
is 1856 km long, running from Ludhiana in Punjab to
Dankuni near Kolkata.

36

Envisioning the Future of Indian Logistics@2047

Major objectives of DFC

70% Total railway freight to be moved to DFCs
180% Improvement in freight movement speed.
40% Reduction in O&M cost.
30% Reduction in transportation cost.
India will need to speed up dedicatedfreight infrastructure connecting four
major metros. So far, only around 1,724
km out of planned 2,843 km direct freight
corridor got commissioned as of Jan
2023. DFC is an important part of National
Rail Plan 2030, which aims to increase therail share from 26% to 45% over the next
10 years. Higher rail share will result insignificant logistics cost savings for
manufacturing companies. In addition,
new rail infrastructure can boost industrial
townships along the freight corridor.

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Bharatmala
The Government of India launched “Bharatmala
Pariyojana” in 2017, a new umbrella program for the
highways sector that focuses on optimizing theefficiency of road traffic movement across the country
by bridging critical infrastructure gaps. The project
covering a whopping 34,800 km of the road would becompleted in a phased manner.

How can the Sagarmala program enhancelogistics performance?
The Sagarmala program has improved theperformance of India's logistics sector by leveraging
the country's waterways and coastlines. It was
launched with the goal of cutting logistical costs andreduce carbon emissions by 12.5 metric ton per year
through transportation.

• Under the Bharatmala Phase-I, a total of 34,800
kms of highway is to be constructed (24,800 km
through Bharatmala and 10,000 km throughNational highways development project (NHDP))Key pillars of Sagarmala• The first phase was scheduled from 2017 to 2022

and work on phase 2 was to be completed by 2028.
Targets envisaged for Bharatmala

Key Performance Indicator

From

To

6

50

Freight percent on National
Highway40%

70-80%

Number of districts connectedwith four-lane highway

300

~550

Highway corridors

Sagarmala
Sagarmala Programme for port-led development
comprises 1,537 projects and the capital expenditure
outlay of US$81b (INR 6.5 Lac cr.) by GOI. The
program will modernize existing ports, set up new mega
ports, and establish Coastal Economic Zones and Units.
The prime objective of the Sagarmala project is topromote port-led direct and indirect development andto provide infrastructure to transport goods to andfrom ports quickly, efficiently and cost-effective.
Sagarmala Project Vision
To reduce logistics cost for both domestic and EXIM
cargo with optimized infrastructure investment.
Sagarmala aspires to reduce logistics costs for EXIM
and domestic cargo leading to overall cost savings of~US$5b (INR 35,000 to 40,000 cr.) per annum.

Portmodernization• Capacity augmentation• New ports• Efficiency improvement• New road/rail connectivity• Upgradation of roads/
railwaysPortconnectivity• Coastal shipping• Inland water transport• Logistics parks

Port-led
industrialization

•
•
•
•
•

Industrial clusters
Coastal employment zones
Maritime clusters
Smart industrial port cities
Port-based SEZs

• Skill development• Coastal tourism projects• Development of fishingharbors, fish processing
centers

Coastalcommunity
development“

India occupies ~2% of global trade, where major players
are the US and China. To compete with these, India
needs to become a manufacturing hub for the world byincreasing the export volume. Investors are ready toinvest in Indian terminals, but major challenge is accessto consolidated land.

Mr. Manish Puri,
President, ACTO

Envisioning the Future of Indian Logistics@2047

37

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

MMLPs bring together road and rail: the two most important transport modes comprising~90% of the country’s cargo movement
National Highways Logistics Management Limited
under the Ministry of Road Transport and Highways(MoRTH) and the National Highways Authority of India(NHAI) are leading the development of Multi-Modal
Logistics Parks (MMLP) in a hub-and-spoke concept tostrengthen the nation's freight logistics sector.

MoRTH is currently implementing 37 MMLPs that will
be developed through Public Private Partnership (PPP)in the Design, Build, Finance, Operate, and Transfer(DBFOT) mode with a capital allocation of US$6.25b(INR 50,000 cr.). MoRTH minister Nitin Gadkari laid thefoundation stone of India’s first multi-modal logistics
park at Jogighopa, Assam in October 2020.

Success factors for MMLPs
Success factor

Description

Connectivity to adjacent nodes
Non-competing infrastructure
Competent service providers

logistics parks• Strong coordination is essential across multiple government entities developing
similar infrastructure so that competition can be avoided• Ability to attract world-class 3PL service providers for developing and operating
the logistics parks at a high service level will be critical to ensure the success of
the logistics parks.

• A comprehensive policy governing multi-modal freight transportation forComplementary policies

domestic freight movement needs to be developed.

Early involvement of all
stakeholders• Early involvement and alignment of all relevant stakeholders will be critical toensure faster development of logistics parks.

• Use of technologies like demand forecasting, warehouse management systems,

Adopting digital solutions

Key benefitsof MMLP• Ability to cater to demands of adjacent nodes will improve business viability ofand other digital enablers is essential

MMLPs improve the utilization and performance of inland container depots (ICDs) andcontainer freight stations where they exist.

Reduced Transportation Costs• Logistics parks would provide
a 10% reduction intransportation costs for the
top 15 nodes• It will improve the inter-fleet
mix by enabling freight
movement on higher sizedtrucks and rails

Reduction in CO2 emissions• Increased freight movement bylarger sized trucks and rail will
enable ~12% reduction in CO2emissions for top 15 nodes• Freight movement by rail has 65%

less CO2 emission compared to roadfreight on a per ton per km basis

Congestion reduction• Increased freight movementon higher sized trucks andrails will result in ~20%
reduction in freight vehicles
catering to the demands ofthe top 15 nodes

Proposed MMLPs will need an investment of over US$6.25(INR50,000 cr.) from the private
sector. The projects will include warehouses, specialized cold chain facilities, freight/container
terminals, and bulk/break-bulk cargo terminals and will help in achieving better modal mix infavor of rail. Interest from private sector is subdued so far due to the large investment size anduncertainty in demand. For this to take off, the government will need to bring in demandenablers through preferential shifting of rail cargo handling to designated MMLPs.

38

Envisioning the Future of Indian Logistics@2047

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Other infrastructure expansion opportunities

India has a vast layout of infrastructure, handling 4.6b
tons of goods each year, amounting to a total annual
cost of ~US$119b (INR 9.5 lakh cr.). Recognizing thecritical role of logistics and transportation, it isimperative to enhance the logistics infrastructure to
support this fast-paced growth.

Fast-paced growth
India has recently emerged as the fifth largest
economy in the world and with the fast pace ofeconomic growth, it is projected to grow and become
the fourth largest economy by overtaking Germany in2025 and the third largest in 2027 by overtaking
Japan. On the basis of an adjusted purchasing power
parity, India is only behind the US and China.
Below are some key avenues for infrastructure
improvement and greater investment opportunity.

Modernization/expansion of existing ports
infrastructure
India's ports offer potential for investment
opportunities with infrastructure.
Infrastructure• Upgrades to handle larger cargo volumes and ships.
• Dredging deeper channels, building new terminals,

improving connectivity, and implementing advanced
technologies

Streamlining processes

Infrastructure: Upgrading infrastructure such as
berths, cranes, and handling equipment to increase
capacity and efficiency.
Technology: Implementing advanced technologies,
such as automation, digitalization, and data
analytics, to improve terminal operations and reduceturnaround times.
Connectivity: Improving road and rail connectivity
to and from the terminals to reduce congestion andfacilitate faster cargo movement.

Maritime clusters
Maritime cluster is a high potential area, which
includes a geographic concentration of maritimerelated businesses, institutions, and infrastructurethat interact and collaborate with one another toenhance competitiveness and innovation.
Benefits• Fosters collaboration and knowledge exchange topromote innovation and entrepreneurship• Increasing the competitiveness and productivity of
the cluster• Improves the efficiency and sustainability ofoperations through the development and adoptionof new technologies, best practices, and standards.

• Enhances reputation and global competitiveness of
the region by building a strong maritime brandimage• Shift from paper-based processes to digital and

There is potential for the development in Gujarat
particularly in the Gulf of Kutch and Gulf of Khambhat
areas. These areas have strategic locations andnatural deep-water ports that could attract maritimerelated businesses and investments.

Port terminal

Inland waterways transport (IWT) and coastal
shipping (CS)

automated systems, thereby reducing bottlenecks
and increasing efficiency in cargo clearance andhandling

Indian maritime sector has grown significantly over the
past decade. By FY30, cargo handled by Indian ports is
projected to grow to 2570 million ton which presents a
unique opportunity to the Indian maritime sector.
However, issues such as high turnaround time, lack ofconnectivity, congestion and others plague the Indian
shipping and ports sector. Following are the criticalareas of development for container terminals in India
which can improve their functioning.

IWT and CS hold significant untapped potential as they
offer high levels of sustainability, have low runningcost and are critical in optimizing the existing logistics
modal mix. Thus, GOI has launched several initiatives
to promote their adoption.

Envisioning the Future of Indian Logistics@2047

39

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

To promote IWT, GOI has pledged an investment of~US$4.3b (INR 35,000 cr.) by 2047 to create a
network of waterways. GOI has already initiateddevelopment on 14 inland waterways and 26 viable
routes for cargo movement have been identified. To
improve connectivity, GOI is also developing associatedinfrastructure such as multi-modal terminals (oneterminal was recently inaugurated in Haldia).
To aid CS, GOI had reduced tariffs, given priority
berthing to coastal vessels and made green channels
for faster cargo clearance. Recently GOI has alsoannounced PPP schemes for enhanced participation ofprivate sector.
However, challenges such as limited cargo availability
due to insufficient connectivity with production andwarehouse hubs, seasonality of Indian rivers and others
may require urgent action to ensure successful
adoption.

Improving warehousing
Another important cornerstone of the overall logistics
sector in India is the warehousing industry. While thewarehousing sector in India has shown remarkable
growth, there are opportunities for improvement inareas such as infrastructure development, technology
adoption, and skill development to enhance the sector's
potential for even greater success. To achieve this,both GOI and industry need to work collectively toensure that the Indian warehouses become moreproductive and become important levers for the growthof India's logistics sector.
Focus areas to improve performance of Indian
warehouses

1
2
3
4

Infrastructure

Technology adoption

Skilled personnel

Simplified regulations

Thus, to facilitate seamless and efficient logistics, GOI
has launched new warehouse standards. These aim topromote standardisation in warehousing and otherrelated assets.

40

Envisioning the Future of Indian Logistics@2047

These include several standards related to design andconstruction, labour, safety, digital solutions andothers. Standardisation of pallet size is another key
focus area which focuses on economies of space andfacilitation of automation. A special focus is on thedevelopment of standards for racking to promote
efficient storage. Elements of transportation andmaterial handling have also been incorporated to haveend- to- end coverage.
Warehouse standards try to cover all the components
associated with warehousing holistically.

Warehousing

Scope ofwarehousing
standards

Palletization

OthersMaterial
handling andtransport

Racking

The thrust on infrastructure needs to continue
for several reasons
Increased competitiveness in International markets
According to an Assocham-Resurgent India study,
reducing expenses from 14% to 9% of GDP could
save India ~US$4b (INR 32,500 cr.). Thereby,
making the Indian goods more competitive ininternational markets.
Reduction in ships’ Turn Around Time (TAT)
Reducing the turnaround time for ships saves theport time, which translates into savings in port
infrastructure expenditure for ports, ship capitalcosts for carriers and inventory holding outlays forshippers.
Boosting growth in MSMEs
It would also drive growth in the employmentintensive MSME sector, where better transportationand logistics and reliable power are key ingredientsfor improved competitiveness, especially in sectors
like apparel, footwear, furniture, and foodprocessing.
Reduction in crop wastage
Every year, agriculture goods worth ~US$11.6b (INR
92,651 cr.) are lost in India due to a lack of storage
facilities and a poor transportation network. The
government's recent directive to establish Inland
Container Depots (ICD), cold chain, and warehousing
facilities across the country, on the other hand, is
expected to attract private investment. The logistics
sector would be upgraded as a result of the capitalinfusion, reducing industrial-scale food waste.

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

GOI aims to increase speed, agility and efficiency of freight movement in India with new
infrastructure development. However, several concerns limit its growth
Challenge

Opportunity areas

Recommendations• Lack of a nationwide single• GOI and state governments should

clearance system significantly
affects ease of doing businessensure a smooth roll out of nationwide
single window clearance system forhassle free approvals• Due to lack of digitisation, records
Delayed land acquisition andclearances impact project
timelines and profitability

are mapped by several authorities,
thus, accessing land records is acumbersome task

• Inefficient maintenance of land

• GOI should secure land and otherclearances before issuing the tender• Improve project planning andimplementation efficiency to reduce
cost and time overrun

records results in ownershiprelated legal challenges• De-risk infrastructure projects – landacquisition and environment clearances• Trends show that establishment of

Sub par performance of
SEZs and limited
connectivity of industrial
complexes

SEZs decreased average
productivity growth of firms by~15.4%• ~18% SEZs are located inland

infrastructure should include
construction of integrated industrial andlast mile road and rail connectivity• Space constraints in existing ports• 40% of the ships on order will

• Fast track development of Vizhinjam,• Vessels have to take a detour of at• To attract transhipment traffic GOI,

• Manufacturing containers in India• GOI’s projected requirement of 350K

Kanyakumari and Campbell Bay ports
which can offer higher draft

require >16m draft. Not many
Indian ports support thisleast 5-6 hours to reach nearest
key Indian ports. This reducestranshipment opportunities

is 50% more expensive than China,
due to higher price of Corten steel

Absence of indigenous
container manufacturing
ecosystem

clusters” instead of individual parks
such as chemical clusters, PCPIR(Petroleum, Chemical andPetrochemical Investment Region)• Blueprint for development of new port

which increases the travelingmiles and reduces export potential
limit development of integrated
industrial corridors

Draft restriction in line withchanging scenario and higher
distance from maritime(East- west) trade lanes
makes them unattractive• Switch to “comprehensive industrial• Limited manufacturing capacity ofCorten steel• Existing glut in container market

for EXIM trade may derail India’splans to attract investment incontainer manufacturing spaceshould consider offering benefits toshipping liners to invest capital and shiftoperations from existing ports

containers/ year and plan to develop
associated manufacturing capability
may need to be re looked• This may require reworking of, theproposed Production Linked Incentive
scheme for container manufacturing.
GOI may need to give assurance/
guaranteed orders to promote
investment• Corten steel manufacturing should be
an inclusive part of the policy

Envisioning the Future of Indian Logistics@2047

41

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

3

Attract investment and investor interest

For the development of the logistics sector, GOI is investing in ~100 infrastructure projects
for first and last mile connectivity with ports for coal, steel, fertilizer.
In FY24 budget, ~US$125b (INR 10 lakh cr.) has been
allocated toward capital expenditure, which will
benefit the logistics sector.
Apart from the 50 new airports and heliports, 100
critical transportation infrastructure projects worth~US$9b (INR 75,000 cr.) (including private investment)
will be crucial in improving first and last mileconnectivity for ports, coal, steel, fertilizer, and foodgrains. In addition to this, more than 39,000
compliances have been reduced and more than 3,400
legal provisions have been decriminalized to improveease of doing business.

Key assets to be monetizedRoad Length26.7K km

DFC Track- 673km

31 projects 9 major ports

25 airports

400 railway stations

21 MT warehouse capacity

Source: NIP, Niti Aayog

In total, the investors have an opportunity
to invest in ~6,000 projects worth INR 52
lakh crore (~US$650b), which can aid thetransportation and logistics sector. Road
sector accounts for the majority share(~82%) of these projects.

~US$34b (INR 2.7 Lakh cr.)
Planned investment- road infrastructuredevelopment- FY24

~US$30b (INR 2.4 Lakh cr. )Planned investment- rail infrastructuredevelopment- FY24

Source: NIP | Note: Some investment may be common to passenger
and freight transport | Note: Investment does not include “common
infrastructure for industrial parks”

Source: PIB~US$650b (INR 52 Lakh cr.) worth of infrastructure
investments are currently on offer in the National
Infrastructure Pipeline (NIP), with the highest being
for road.
NIP aims to showcase investment opportunities inIndia's infrastructure sector. NIP aims to capture key
greenfield and brownfield projects for investments
across all economic and social infrastructure subsectors on a best-effort basis.

With 100% FDI permitted in most transport
infrastructure; the sector has not witnessed the
expected momentum
FDI in the air transport sector was only US$3.61b(~INR 29,000 cr.) from April 2000- September 2022.
Similarly, FDI in ports for the same period was only
US$1.63b (~INR 13,000 cr.). Following a similar
trend, FDI in railways was US$1.2b (~INR 9,600 cr.)for the same period. Road also followed a similar
trajectory and did not register any major FDI, as ofDecember 2021.

NIP- Infrastructure opportunities on offer (Value)
65%

Road
Railways

29%

Aviation

3%

Shipping

1%

Logistics Park

42

1%

Envisioning the Future of Indian Logistics@2047

100% FDI allowed in• Air transport (including air freight)• Port and harbor's construction and maintenance• Railways: under automatic route forconstruction, operation and maintenance of
suburban corridor projects through PPPMeasures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Government is offering various tax incentives and financial support to boost private and foreign investment

Government offers the following subsidies:• Duty-free import of high capacity and modern
road construction equipment• 100% tax exemption in any consecutive 10 years
out of 20 years after commissioning of the
project

Indian Railway Finance Corporation Ltd is a PSU
which mobilizes market borrowings to financecapital expenditure in railways. The funds areinvested in rolling stock and projects leased by the
IRFC to the Ministry of Railways.

• Subsidy up to 40 % of the project cost to makeproject viable

Government will cover the following costs:• Environment clearance, cutting of trees andshifting of utilities• Land for the right of way and wayside amenities• Project Feasibility Study

CONCOR (Container corporation of India) announced
a volume-based rebate scheme of up to 100% on rail
tariff for movement of empty containers from Ports
to hinterland for its utilization in exports. This
helped to resolve the issue of shortage of containers
at the port.

Government is aggressively pushing Public Private Partnerships (PPP) to increase
investments and all modes of freight movement have seen a healthy response.
PPP is being adopted in the Indian transport
infrastructure development sector and helps
infuse capital.
Port management under Public Private partnership isbeing actively pursued. Until July 2022, 86 projects
worth ~US$6.9b (INR 55,000 cr.) have been granted
approval under PPP. In 2020, 51% of cargo in major
ports was handled via the PPP, Maritime India Vision2030 targets to increase this to >75% by 2030.

As per GOI, Indian Railways will need acapital investment of around ~US$625b(INR 50 lakh cr.) until 2030 for network
expansion and capacity enhancement.

“

As of now, India is a growing nation in terms of its
economy. Enquiries are coming from a lot of
economists, especially from the US, where there isa distinct shift toward getting into partnershipwith India.

Durgesh Buxy,

AVP, Crompton Greaves Consumer
Electricals Ltd.

Envisioning the Future of Indian Logistics@2047

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Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

58 projects worth ~US$5b (INR 40,000 cr.) are in various stages of implementation. Of these, 33
projects worth ~ US$3.4b (INR 27,000 cr.) are operational, whereas 25 projects worth over US$1.6b(INR 13,000 cr.) are under implementation. 19 such projects with a total investment of ~US$1.1b(INR 8,862 cr.) have been completed in 2021 alone.
Number of PPP airports is likely to increase from 5 in 2014 to 25 in 2025. AAI has formed JVs inseven airports. Recently, AAI has awarded 6 airports — Ahmedabad, Jaipur, Lucknow, Guwahati,
Thiruvananthapuram, Mangalore — for operations, management and development under PPP for aperiod of 50 years.
Government is reworking the terms of the PPP model, which will include a hybrid model in which thegovernment makes upfront payment of 40% of project cost to the developer under build operatetransfer mechanism.
Railways have invited private sector participation for GatiShakti Terminals. At present, the railways
are using the PPP route for modernization of 16 stations, including Anand Vihar and Vijayawada,
which is estimated to cost ~US$1.25b (INR 10,000 cr.).
India has a well-developed framework for Public-Private-Partnerships (PPP) in the highway sector.
Asian Development Bank has ranked India as the first spot in PPP operational maturity and has
designated India as a developed market for PPPs. NHAI continues to exploit a variety of contractual
structures in moving toward the PPP.
Government had planned to offer contracts for development of Multi Modal Logistics Parks (MMLP) at
four different locations through PPP mode in 2022-23. Reliance Industries Ltd. has been awarded
the project to build India's first MMLP in Chennai at the cost of ~US$180m (INR 1424 cr.).

Exports from SEZs dip to ~US$95b (INR 2.51 lakh cr.)in FY21- SEZs may not be having desired impact on
Indian exports.

JNPT is one of the first “Multi- purpose SEZs” inIndia and is a key cog in the Ministry of Shipping's
Sagarmala vision.

One of the main reasons is the waning competitive
advantage of Indian SEZs as other ASEAN countries are
adopting policies to boost investment. Moreover,withdrawal of tax concessions and ineffective
implementation of single window clearances are major
impediments. Additionally, 100% import duty is levied
during a domestic sale of goods made in SEZ units. This
makes SEZ goods unattractive in the domestic market.

JNPT offers access to upcoming multi-modal
infrastructure projects including New Mumbai airport,
DFC rail corridor and trans-harbor road link. This aims
to slash cost and facilitate easy movement of goods
to and from ports quickly and efficiently. Moreover,formation of the SEZ enables industrialization of
JNPT’s hinterlands, which is prompting an economictransformation.

Proposed DESH bill government suggests
moving away from the original idea ofexport-oriented production and intends toallow business units in SEZs to sell indomestic markets more easily and boost
domestic manufacturing.

JNPT-SEZ is expected to generate~US$500m (INR 4,000 cr.) investments
and create 72,600 direct jobs. In total, it
is expected to generate total employmentof 150,000. It aims to set a new
benchmark for port led industrialization.

44

Envisioning the Future of Indian Logistics@2047

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Governments across the world are using multiple financial routes, such as sovereign wealthfunds, PPP models, to boost infrastructure development
Egypt is facilitating investment by deployment ofsovereign wealth fund as a go-to partner for foreign
investors.
The Sovereign Fund of Egypt (TSFE) which wasestablished to attract private investments, is in talks withAD Ports Group (subsidiary- Abu Dhabi sovereign
investor ADQ) over development and operation of Suez
Port, known as Port Tawfiq. The contract would be thethird signed by AD Ports to operate ports in Egypt.

1
2Suez Canal Zone (SCZone) signed a US$3b
agreement to produce ~3,50,000 tons perannum of green energy for fueling ships in
Ain Sokhna with EDF Renewables and TSFE.
Dubai’s DP World signed an agreement tobuild a US$80m port-centric logistics
services zone at Ain Sokhna Port. The facility
will cater to logistics, trading, distribution,
value-added, and light industrial activities.

AP Moller-Maersk signed a contract worth
US$500b with Suez Canal Economic Zone
to expand East Port Said’s port terminal
capacity by almost 40%
Vietnam needs ~US$13.7b to develop modern ports
until 2030. Major funding is expected from non-budget
sources.
Seaports are experiencing high levels of FDI inflows.
Introduction of Investment Law and Enterprise Law is
one of the key reason as it reduces administrative
investment procedures. Free trade agreements such as
EU-Vietnam FTA and Comprehensive and Progressive
Agreement for Trans-Pacific Partnership are having asubstantial impact on bolstering maritime freight
volumes.

1

Mediterranean Shipping Company has
partnered with Vietnam National ShippingLines and Saigon Port to build a “mega” port,
worth US$6b. With an annual capacity of 1015 mil TEUs, the port will be able to receive
container ships of up to 24,000 TEUs
capacity.

2

Gemadept Corporation plans to launch two
deep water port worth US$264 mil in 2023.
They will have a capacity of 9,00,000 TEUs
and 5,00,000 TEUs per year, respectively.

In Vietnam ~US$8.8b was invested inseaports from 2011-2020, out of which
86% was from non-state budget capital

JNPT has become the first 100% Landlord Major Portof India and heralds India’s entry into the PPP model.
Currently, five container terminals are operated at
JNPT. Under the latest agreement, two berths of
JNPCT will be handed over under the PPP contract.
Minimum Guaranteed Cargo (MGC) will help guarantee
private port operators' investment and is expected toincrease from 0.4 mil TEUs in the first year to 0.9
million TEUs, starting 10th year until the end of the
30-year contract.

1

Out of the five berths in JNPT- DP World
operates two terminals, APM Terminals and
PSA operate one each and the remaining
one will be operated by a Joint Venture
between JM Baxi Ports and Logistics Ltd.,and CMA Terminals

2

JNPT charges a revenue share of around
30% of the business. However, the Major
Port Authorities Act and model concessionagreement allows terminal operators to fix
market determined tariff rates.

Port received the highest royalty pricebid of ~US$56.5 per TEU against
minimum reserve price of ~US$22.5, by
JV of JM Baxi and CMA Terminals.

GOI has brought in market pricing
for major ports. This is muchneeded to bring a level playing
field between various terminals.
However, Indian port tariffs are
too high to compete with
Colombo and Singapore. Port
developers will need to identify
measures such as operational
efficiencies, larger scale, better
land monetization and achieve
lower tariffs. Government may
also need to step in withincentives to bring Indian ports
at par with Global major ports.

Envisioning the Future of Indian Logistics@2047

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Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

The Indian transportation and logistic sector has witnessed the emergence of several startups which are being supported by GOI initiatives
Key government initiatives to support start-ups

Ashdod port’s technology incubator – Israel

GOI through Sagarmala project is supporting start-ups
in the maritime sector through various means, such as
setting up incubation centers, providing seed funding,creating networking opportunities, and offering
regulatory support. These initiatives are helping startups develop their products, invest in technology, hirestaff, and scale their businesses.

In 2021, the port of Ashdod established an
incubator to support early-stage start-ups in themaritime and logistics industry, providing them withaccess to resources, mentorship, and funding tohelp them grow and succeed.

• Jawaharlal Nehru Port Authority has established an

Enableentrepreneurs
understand theneeds of theinternational
port market.

• JNPT partnered with Invest India to establish a

The Port's Technology Incubator aims to help startups from the earliest stages of development to growand scale their products. It provides an ideal
environment and infrastructure for start-ups todevelop and refine their ideas, allowing them to turntheir concepts into scalable products. By providing a
range of resources and support services, theincubator helps start-ups to accelerate their growth
and achieve their business goals.

incubation center to support start-ups andentrepreneurs in the logistics sector. The center
provides infrastructure, mentorship, and othersupport to early-stage start-ups, with a focus ondeveloping innovative solutions for the industry.

dedicated start-up portal that provides information
and resources for start-ups in the logistics industry.

• Sagarmala Start-up and Innovation Initiative (S2I2)— providing financial, institutional, infrastructure
support, mentorship and new market access tostart-ups to create a Maritime Innovation Hub.

Select initiatives across the world to support thestart-up ecosystem
Govt. support
Provide financial, regulatory support to start-ups,
such as tax incentive, streamlined regulatory
processes.
Accreditation@SGD program - provides government
funding and support in Singapore
Incubation programs
Rotterdam Port Authority has set up an incubation
program called PortXL, which provides mentorship,
funding, and networking opportunities.
Technology partnerships
Port of Los Angeles partnered with General ElectricTransportation to develop a digital platform that
optimizes cargo movement and reduces congestion.
Annual Start-up challenges
Provide opportunity to get market access, grants, in
specific areas — smart ports, smart ships, green
tech.
Smart Port Challenge – Singapore.

46

Envisioning the Future of Indian Logistics@2047

Objective
Provide themwith theexpertise of
professionals
with extensive
knowledge.

Position itself(Ashdod port)
among theinvestors andowners of thestart-ups.

The incubator offered a 12-month program forselected start-ups, providing them with officespace, access to mentors and industry experts, andfunding of up to US$4,50,000.
Success so far…
Since its launch, the incubator has supported over
20 start-ups, with a focus on developing innovative
solutions for the shipping industry, such as AIpowered cargo tracking systems, blockchain-based
logistics platforms, etc.
Key success factors
Industry focus

Mentorshipand support
services

The incubator
program focuseson supporting
start-ups in themaritime andlogistics
industry, only
ensuring
targetedsolutions to thespecific sector
challenges

Office space,funding,
access toindustry
experts,
enabling
them torefine theirideas,
products,
and growbusinesses.

Funding
Adequatefunding at
early stagesof productdevelopment

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Simplification of regulatory policies, faster clearances and attractive infrastructure financing
schemes are key to promote investment
Challenge

Infrastructure financing iscomplex and involves
multiple parties with varying
priorities

Opportunity areas

Recommendations• Infrastructure funding involves• Develop and build expertise inmultiple contracts that require
agreements and clearances fromall project participants.
Negotiations can be extremely
difficult and expensive to carryout.

optimal risk-sharing protocol canenhance bankability of large
infrastructure projects.

may not be getting the desired
traction due to regulations limiting
investments by pension funds/
insurance companies

payments to contractors and poor
planning of utilities delay
infrastructure projects and impact
profitability• Higher risk and long project

overruns deter investors frominvesting in greenfield projects• Ever-changing tax and regulatory
Complex regulatory
landscape• Collaborative approach to design an• Infrastructure/ corporate bonds• Land acquisition, delayed

Lack of coordination, delay
in clearances/approvals andother inter-departmental
issuesInfrastructure asset strategy, Project
finance, infrastructure M&A and deal
structuringlandscape, requiring stakeholders
to navigate and maintaincompliance effectively, especiallyacross different jurisdictions.

• Set clear objectives for all stakeholders
and decisions makers prior to formal
decision making and developing
blueprint.

• GOI, along with key stakeholders, needs
to set up accountability matrix and timebound dispute settlement mechanism• Uniform and simplified tax andregulatory landscape can enable
stakeholders to navigate infrastructuredevelopment challenges.

• Stakeholders need to develop robust
systems and resilient processes todecode and address complex
regulations“

The importance of India in global trade is increasing, and the country
is becoming a more attractive investment opportunity for foreigncompanies. The recent focus on infrastructure must continue, as it is
the key element to reduce the overall logistic costs together withcargo visibility across the supply chain. Presently, it is practically
impossible for manufactures to make a reliable production plan, as
the cargo visibility within India is inadequate. By embracing
technology, innovation and remaining attentive to simplifying
regulatory processes, India will be able to reduce logistics costs andenhance the ease of doing business in the country.

Mr. Lars Sorensen,

MD, Hapag Lloyd India

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Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

4

Focus on sustainable logistics

India’s shipping and logistics sector is poised to embrace sustainable practices and is relying
on policies and measures mandated by regulatory bodies for compliance
Freight transportation has one of the highest relianceon fossil fuels of any sector and accounted for 21% of
CO2 emissions in 2020. While it was one of the sectors
most affected by the COVID-19 pandemic, emissions
resumed rising as demands increased and the uptake ofalternative fuels remains limited.
Global shipping spews out 3% of worldwide Green
House Gases (GHG). With the maritime industry
responsible for transporting no less than 90% of worldcommerce, there is increasing pressure on the sector
to reduce its carbon footprint swiftly.
In India, the transportation sector accounts for ~14% of
GHG emissions and freight transport accounts for over
40% of final energy use in the transport sector.
To manage transport and logistics related emissions,
global regulatory and government bodies havelaunched multiple initiatives
In order to achieve net zero target by 2050, it isestimated that emissions related to freight movement
have to be reduced from 6.6 MtCO2 in 2020 to 5.1
MtCO2 by 2030. Maritime sector is one of the few
modes in which an international coordinated effort isbeing undertaken by global bodies such as International
Maritime Organization (IMO) to have a systematic
reduction of emissions, globally. For this, they havemade several regulations and have taken several
initiatives.

~30% reduction in freight movement
related emissions is required by 2030
(from 2020 levels) to achieve net zerotarget in 2050

•International Convention for Prevention of Pollution from ships•*IMO - International Maritime Organization•Note- emission related to transport includes emissions light-duty
vehicles and heavy-duty trucks, rail, shipping and aviation. May include
some passenger vehicles.
•

Maritime emissions- International targets
International shipping has pledged to half its GHG
emissions by 2050 (from 2008 levels), withmany stakeholders pushing for 100%
decarbonization by that time.

Transport sector emissions- India’s target
GHG emissions from freight transport are
growing at an alarming rate and urgent action isneeded to achieve net zero emissions by 2070.

Globally, regulatory bodies have developed
rating mechanisms to track and benchmark
sustainable practices
Energy Efficiency existing ship Index (EEXI)• EEXI is a measure introduced by the International

Maritime Organization to reduce GHG emissions ofships. It relates to the technical design of a ship andships must attain EEXI approval once in a lifetime, by
the first periodical survey in 2023 at the latest• EEXI value is determined by ship’s type, capacity andpropulsion

Carbon Intensity rating (CII)• Operational energy efficiency performance rating

is assigned to each ship to which regulation 28 of
MARPOL* Annex VI applies. This rating is based on
the operational carbon intensity indicator• For easy assignment of ratings four boundaries

have been defined- superior boundary, lower
boundary, upper boundary and inferior boundary• Thus, a rating is assigned by comparing theattained annual operational CII of a ship with theboundary values

Emissions Trading System (ETS) - EU

• ETS aims to reduce GHG emissions cost-effectively.
It works on 'cap and trade' principle. Cap limits
total GHG that can be emitted by installations.
Gradually, the cap is lowered to reduce emissions.

• Installations can buy or receive emission

allowances, which are limited. An installation mustsurrender allowances for its emissions or facepenalties.

• This helps promote investment in innovative, lowcarbon technologies

48

Envisioning the Future of Indian Logistics@2047

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Global shipping-related sustainability trends
Green/ Sustainable Bonds

Increased LNG adoption

Electric Ship

• Green or sustainable bonds• Usage of LNG blended fuel (with• South Korea’s Ministry of

can be issued to boost
sustainability.

fossil fuels) is an upcoming segment

Oceans and Fisheries
announced plans to build anelectric ferry powered byrenewable energy.

• LNG is suitable for operations which• They differ from therequire an extended range or
demand high performance output.

conventional bonds as, issuer
provides a set of sustainable
criteria for them

• Chowgule Shipyard- Goa and• India is preparing a roadmap for

Cochin Shipyard, held a keellaying ceremony for two
autonomous E- ferries being
built for Norway-based
company- ASKO Maritime AS.

setting up floating storage facilities
for LNG at all major ports.

• Capital raised via the sale ofsustainable bonds is used tomeet that criteria.

• Liner- CMA CGM SA plans to develop
an LNG fleet to reduce emissions• Green bonds grew by 49%• Hapag- Lloyd AG has started a pilot

from 2016 to 2021. It is
expected that green bondmarket issuance could exceed
the US$1t mark by 2023.

• Mitsui OSK lines joined FMC,

to use LNG on “Brussels Express”

which commits to use zeroemission fuels for at least 5%of deep-sea vessels by 2030

• Mitsui OSK took delivery of a dualfuel methanol carrier

Multiple initiatives are being undertaken by the private sector firms and governments tomeet net zero targets and other regulatory obligations.
Global ports-related sustainability trends

1

2

3

Low and zero-emission fuelShore power

Intermodal

Adoption of hydrogen is expected tostart with cargo-handling equipment
and, in the future, move to poweringhydrogen-powered vessels. Dubai port
piloted a Box Bay system, whichworks on solar energy. Port ofSingapore is buying 200 LNG trucks(15% fleet) to reduce emissions.

It allows docking vessels to ‘plug-in’ topower units within the port complex. It
reduces CO2 emissions by 60 metrictons during a 10-hour stay in port.
Recently, Europe opened its largest
shore power plant in WarnemündeGermany. It can supply electricity to
two cruise ships simultaneously.

Transporting goods by rail is a lowcarbon alternative compared to fossil
fuel-powered trucks in terminal yards.
Due to this, the port of Valencia isinvesting heavily in intermodal transportand cut its carbon emissions by 30%
between 2008 and 2019 despite
continuing to grow cargo throughput.

Global logistics-related sustainability trends
Adoption of alternate fuel vehicles

Incorporation of eco- friendly
packing materials

Usage of digital tools to boost
sustinability• Although many alternate• Companies are increasingly using• Multiple digital tools are being

powertrains are being considered(LPG, Ammonia, Hydrogen,
Biofuels) electric has the highest
adoption• Light- duty last mile application isamongst the first to adopt
electrification as it uses a ‘hub andspoke’ model, which is well suited,considering the shorter duty cycle• Amazon has ordered 100,000

Rivian electric delivery vans, which
is a key to achieve its net-zerocarbon target by 2030

recyclable, reusable and chemical
free packaging materials• BMW is using 25% recycled content
in its expanded polypropylene(EPP) packaging, which saves
280T- CO2 annually. It plans toincrease the recycled share to100% by 2024

• Sealed Air uses automated boxing

systems to produce shipping boxes
to match the size of the shipped
items. This reduces waste andoffers weight and space savings

adopted to monitor andminimize transportation andstorage related emissions• DHL’s Go green is a carbon

transparency tool which helps
optimize green logistics andimprove carbon efficiency• UPS’s “Warehouse execution

systems” defines specificcustomer requirements andincreases productivity by up to
50%. This makes distribution
centers more energy efficient

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Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Responsible sourcing of packaging material

Developing eco-friendly facilities• Companies are conscious of the origin of• Companies use novel construction techniques andpackaging material. They consider thatsustainable practices should be employed to
manufacture it.

• Brambles a company specializing in unit load,

pallet and container logistics uses 100% of timberfrom certified sources. It has been recognized by
Carbon Disclosure Project (CDP) as one of the six
companies worldwide doing the most to reduce
deforestation in supply chains.`(Alternate) blended fuels emit 99% lessSOx and 92% less NOx, compared to
traditional fuels. This is well within theguidelines of existing regulations.

install high-tech heat and light systems to savepower.

• Automatic handling equipment is being used indark warehouses (lights out mode), to reducecarbon footprint.

• Maersk and Saudi Ports Authority are developing
an MMLP which will be fully powered by solar
energy. Higher storage density and mechanizedpallet-in-out solutions is expected to improve
productivity by ~50%

India plans to manufacture bio aviationfuel which is expected to reduce
emissions and cost of operation for theaviation industry.

Several global initiatives are being undertaken by the governments to promotesustainability
Several initiatives are being adopted to boost
sustainability in the shipping industry.
Vessels need to meet specific criteria outlined byorganizations or standards such as the Climate Bonds
Initiative, EU Taxonomy or Green Shipping Programme.
This requires the Annual efficiency ratio or Energy
Efficiency Operational Index to be below the defined
decarbonization trajectories. EU Taxonomy also allows
use of Energy efficiency design index and defines
requirements for vessel retrofitting.

In addition to the technical criteria for thevessel, the shipowner must prepare agreen finance framework that meetsrequirements of relevant bodies, such as
LMA, for loans and ICMA, for bonds.

*LMA – Loan Market Association** ICMA- international Capital Market Association

50

Envisioning the Future of Indian Logistics@2047

ESG indicators can often be considered as ‘nonfinancial’, but they may have major financial
consequences.
Capital invested in companies that meet ESG criteria
grew by 170% from 2015 to 2021. In the same period,
capital invested in euro green bonds grew seven times.
Valuation of green bonds increased by 8x in 2020
alone and grew to US$287b in 1Q21, which is twice asmuch in the same period last year. Banks aim to meet
ESG criteria for their investment and financing
decisions, as climate risk will soon be integrated by
European central bank into prudential supervision, toreduce risk posed by non-sustainable investments.

Integration of ESG criteria to comply
with banking and financial institutions’requirements helps shipping
companies get easier access to capitalMeasures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

India’s commitment to sustainability is backed by country’s decarbonization goals and the
GOI is undertaking several initiatives to achieve themIndia’s goalposts: COP26- Glasgow and FY23 capital
allocation to achieve it
2030

1b tons of CO2 emissions reduced

2070

India @ net zeroTo achieve Net Zero target, FY-23 budget has aplanned outlay of ~US$4.4b (INR 35,000+ cr.) for
green initiatives

India has submitted two commitments as part ofNational determined contributions (NDC).
As part of NDC, which is at the heart of Paris
agreement, India has committed to reduce theemission intensity of its GDP by 45% by 2030 from2005 level. For the same period, India aims to haveabout 40% electric power installed capacity from nonfossil fuel-based energy resources. This will besupported with low-cost international finance andtransfer of technology.
India is undertaking multiple projects with IMO toachieve IMO’s GHG reduction targets.

Maritime India Vision- to revitalize the Indian
maritime sector
Target 20% fresh-water
consumption / ton of cargo
Increase area
under green
Target increase incover fromshare of renewable<10% to 20%.
energy for major
ports from 10%
currently to 60%

Provide shore
power to all
vessels up to
150 KW

Total investment:~US$38b- 44b (INR
3-3.5 Lakh cr.)

Reduce carbon
emissions per
ton of cargohandled by
30% by 2030.

As part of a major push, India has committed to
implement IMO’s energy efficiency requirements forexisting ships and carbon intensity requirements for all
vessels. Moreover, Indian ports are expected to adhere
to all the targets which are in line with nine UN
Sustainable development goals. These include
obligations on safety, efficiency and sustainability.
Also, India has been selected as the first country underthe IMO’s Green Voyage 2050 project to conduct apilot related to green shipping. From a regulatory
standpoint, India has partnered with the Marine
Environmental Protection Committee, IMO, to devise
acceptable regulatory requirements and ensure GHG
emission reduction as per IMO’s GHG initial strategy.
National Centre of Excellence for Green Port &Shipping will act as a technological arm for the
Ministry of Ports, India
The center will provide policy and research support onsustainable goals for ports, DG Shipping, and otherinstitutions. The center will also run courses in thefield of maritime transportation at the local, regional,
and international levels.

“

ESG will play a very vital role and will eventually be implemented,
irrespective of whether it is cost-effective. If the customers have acarbon reduction roadmap, they will prefer to on-board logistics
partners who understand and can help achieve that goal. Sustainable
practices in logistics is going to be the future

Mr. Anil Radhakrishnan

Director, Accex Supply Chain &Warehousing Pvt. Ltd.

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Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Companies are emphasizing on adoption of ESG initiatives. However, some of them seem tolack a strong business case for green technologies adoption.
EY view- “Global supply chain executives” on ESG.

80%

70%

Companies areemphasizing ESG andsustainability initiatives.

Executives have seenor expect to see
increased revenue
from sustainablesupply chains

Motivators for improving supply chain sustainability

Cost saving

61%

Regulatory compliance

51%

Pressure- partners
44%

33%

Expect an increase incustomer loyalty due toadoption of ESG andsustainable initiatives

Companies lack abusiness case forsustainable supply chains

According to EY’s supply chain sustainability report2022, 50% companies report basic KPIs on supply
chain sustainability and risks
63% of companies are accelerating the use oftechnologies for sustainability tracking andmeasurement, including cloud-based platforms (80%),
IoT (63%), machine learning and artificial intelligence(62%) and robotic process automation (42%).
3D printing/ additive manufacturing (52%), digital twins(48%), drones (44%) are some of the technologies
which the executives are not planning to use as of now.

47% of organizations have spent most of
their supply chain sustainability efforts on
procurement.
In the next two years, 27% of thecompanies will look to delivery/ logistics
to make the most progress insustainability

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Envisioning the Future of Indian Logistics@2047

41%

Revenue growth28%

Pressure from customers

26%

Pressure from workforce

25%

Ethics21%

Cost saving, regulatory compliance, andpressure from partners are top motivatorsfor supply chain executives to improve
supply chain sustainability

Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Sustainability and ”green skills” have become
a top priority for corporations, nations andindividuals across the world

By 2026

39%

Green talent demand will
surpass supply
YoY growth rate between
2015 and 2022 for green
knowledge or skills neededin the workforce to support
environmental sustainability
now and in the future

Indian private sector is committed toaccelerate decarbonization

1000

Corporates will bemandatorily required tosubmit their Sustainability
Performance from FY23100+

Corporates have alreadystated Net Zero Goals(2035-2050)

500+

Investor engagement on
ESG Performance“

The whole world is focused on ESG and cutting carbon credits bymoving commodities and shipments in minimum time &efficiency. These can be achieved by improving the infrastructure
in various sectors.
Mr. Miheer Ghotikar,

Director, HD Fire Protect Pvt. Ltd.

Using EY ESG Compass platform, EY has developed an ESG performance analysis (including
third-party data) for global companies
Using EY ESG Compass, Indian logistics companies were compared with the global counterpartsin multiple ESG-related parameters.

A sub sector level
analysis highlighted
that cargo groundtransportation is anarea where Indiancompanies canimprove on ESG
parameters andcommunications

Favorable ESG
performance in marine
ports and services
suggest that Indiancompanies may
already be adopting
multiple ESG-related
practices andinitiatives

Companies in the marine transportation
sub sector seem to be behind theirglobal counterparts in ESG
implementation. There is a need to
improve performance andcommunications on parameters ofEnvironment, Social and Governance.

Indian railtransportationrelatedcompanies arealmost at parwith their global
counterparts.

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Measures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

ESG performance analysis (Index out of 100)
Sector level: ESG performance- Ports, Shipping and Logistics sector

India / ROW
Total
India
ROW

ESG
47
39
47

Environment
40
27
41

ROW- Rest of world

Social49
41
49

ESG performance:

Governance
52
50
52
Low

MediumHigh

Sector level: ESG performance- Ports, Shipping and Logistics sector

India / RoW

ESG

Environment

SocialGovernance

Air Freight & Logistics
India
Rest of the World

45
36
46

37
20
39

48
32
50

52
60
51

Cargo Ground Transportation

38

21

42

52

India
Rest of the World
Marine Ports & Services
India
Rest of the World
Marine Transportation
India
Rest of the World
Rail Transportation
India
Rest of the World

13
38
45
55
45
47
24
48
47
46
47

6
21
40
55
39
39
12
39
46
42
46

14
43
46
64
45
50
37
50
48
73
47

21
53
51
43
51
54
22
55
47
16
47

ESG performance:

ROW- Rest of world

Low

MediumHigh

Sustainability and ESG data model: emerging and evolving sectorization and future
forward looking insights

Comprehensive
Sector focused

ESG performance scopeEnterprise vs. societal | Sectorization | Data-led performance

•
•
•
•
•

• SEBI BRSR (140 parameters / ~400+ data points)

IFRS/ ISSB /sector metrics (77 sectors)

mandatory for 1,000 listed companies• ESG board matters/ governance• India central bank (RBI) – climate risk and

ESG performance IQ
Climate action

sustainable finance

WEF IBC framework (~55 kpis)• EU CSRD| 50,000 companies• Transition plan taskforce

Transition pathway initiative• Sbti (scope 1, 2 & 3) – net zero
• CDP (carbon disclosure project)• Task force on nature related financial disclosures(TNFD)• Deforestation | supply chain• Water | circularity | packaging• Financed emissions• Task force on climate-related financial
disclosures (TCFD)

•
•
•
•
•
•

Sector framework: CPG, aluminum, energy
EU taxonomy/ ETS/ CBAMUS SEC: proposed climate disclosure
Supply chain due diligence mandates
Human capital | human rights
Opportunities and risk management |green skilling

Commercial/ Supply chain performance
Type of specifications
ESG Benchmarks

54

Envisioning the Future of Indian Logistics@2047

MediumMediumMeasures required to accelerate India’s competitiveness inglobal ports, shipping and logistics sector

Addressing challenges such as, lack of business case, perception of high costs andinfrastructure limitations can fast-track the adoption of sustainable practices
Challenge

Perception that adoption ofsustainable practices
increases cost and hits
profitability

Opportunity areas

Recommendations• Stakeholders may have the• Adoption of sustainable practices may

tendency to equate investment insustainable practices to that being
counterproductive to efforts taken
to reduce logistics cost

• Adoption of green technologies

across the value chain is tough,considering supply chains are
spread across continents and havediverse stakeholders• A number of logistics companies
are inclined to start theirsustainable logistics journey but
are unsure of where to begin.

• Some do not have an articulated
Companies lack a businesscase for sustainable logistics
supply chains.

and defined business case forsustainability in logistics.

give an advantage to service providers
in contracts that mandate ESG
obligations• GOI should develop a framework tomeasure emissions across supply chain
and reward conformance• Technology companies have an

opportunity to develop solutions/platforms to monitor and analyze
emissions across supply chain• Stakeholders in transportation andlogistics sector should work to identify
and prioritize focus areas for
decarbonization and meet net zero
emission target• While cost reduction will remain the prime
motivator, companies should consider
additional drivers, such as higher
revenues, market share, as a result of
their focus on sustainability• Create a strong business case forsustainability that can enhance theinherent willingness of stakeholders to pay
a premium for carbon-neutral shipping• Without the appropriate
Companies struggle tomeasure tangible
sustainability
progress

technology in place to collectand analyze data from multiple
sources, performance metrics
tend to be less advanced andbased on qualitative and notquantitative data

digital connections throughout thelogistics supply chain and collaborate
among stakeholders.

• Stakeholders also need to invest indigital tools, data analytics andinformation sharing to capture
quantitative data, KPIs and develop
sustainability scorecards.

• Lower draft and length of port

• Bunker companies can deploy bunker• Dredging increases the content• GOI should adopt a sustainableterminal limits berthing of bigger
vessels for LNG refueling

Infrastructure limitations• Companies need to increase theirof organic matter, contaminants
and heavy metal, which impacts
water quality and aquatic life

barges to allow refueling outside theberthdredging disposal mechanism
including study (chemical andphysical) and identification of suitabledisposal location

Envisioning the Future of Indian Logistics@2047

55

Key considerations

56

Envisioning the Future of Indian Logistics@2047

Key considerations

Key considerations for stakeholders in the ports, shipping and logistics sector

Key themes

Government

Industry• Ensure complete transition to digital• Consider the adoption of modern digitalsolutions which offer visibility acrossthe complete supply chain on a single
platform

Adopt advanced
technologies andexplore new businessmodelstechnologies and upgrade their legacy
systems to support them

• Have a robust understanding of complex• Offer a comprehensive marketplacesolution shows transactional rates, andallows users to bid on them

• Fast-track deployment of enterprise• Offer "risk liability ownership“ withintegrated logistics solutions, to help
improve effectivenessbusiness software with seamless
implementation across multiple
government bodies to avoid siloedcommunication• Try and consolidate some operations

handled by intermediaries to reduce
cargo exchanges and drive efficiency• Facilitate a complete roll out ofnationwide single window clearance
system and secure land and otherclearances before issuing the tender toavoid delays

Fast-track
infrastructuredevelopment

regulations of data protection andprivacy• Switch to “comprehensive industrial

clusters” instead of individual parks
such as chemical clusters to streamline
logistics and connectivity challenges• Improve project planning andimplementation efficiency to reduce
cost and time overrun• De-risk infrastructure projects tominimize losses due to delay in landacquisition, environment clearance, etc.

• Fast-track port development with draft
considering the changing scenariosand develop an ecosystem forcontainer manufacturing• Set clear objectives for all

Attract investment andinvestor interest

decisions makers prior toformal decision making to
avoid delays• Formulate a time bounddispute settlement mechanism• Develop a uniform andstrategy, project finance, infrastructure
M&A and deal structuring• Collaborate to design an optimalrisk-sharing protocol to enhance thebankability of large infrastructure
projects

simplified tax and regulatory
landscape• Develop robust systems and resilient• Should develop a framework to• Identify and prioritize focus areas for• Adopt a sustainable dredging• Focus on creating a strong businessmeasure emissions across supply
chain and reward conformance

Focus on sustainablelogistics• Build expertise in infrastructure asset

disposal mechanism, including
study (chemical and physical) andidentification of suitable disposal
locationprocesses to decode and addresscomplex regulations

decarbonization and meet the net zero
emission target
case for sustainability that can enhance
the inherent willingness of stakeholders
to pay a premium for carbon-neutral
shipping• Technology companies have an

opportunity to develop solutions/platforms to monitor and analyseemissions across supply chain

Envisioning the Future of Indian Logistics@2047

57

Abbreviations and Notes

AI- Artificial intelligence

IWT- Inland waterways transport

ASEAN- Association of Southeast Asian Nations

JNPT- Jawaharlal Nehru Port Trust

CAGR- Compound annual growth rate

LNG- Liquid natural gas

CII- Carbon intensity rating

LSP- Logistics service provider

CS- Coastal Shipping

MIV- Maritime India Vision

DBFOT- Design, Build, Finance, Operate, and Transfer

ML- Machine learning

DESH- Development of enterprise and service hubs

MMLP- Multi modal logistics park

DFC- Dedicated freight corridor

MoRTH- Ministry of Road Transport and Highways

DG shipping- Directorate general of shipping

MSME- Medium and small duty medium enterprises

DHL- Dalsey, Hillblom and Lynn

NDC- National determined contributions

ECTS- Electronic Cargo Tracking System

NHAI- National Highways Authority of India

EEXI- Energy Efficiency existing ship Index

NHDP- National Highways Development Project

E-GOS- Empowered Group of Secretaries

NIP- National infrastructure pipeline

E-Logs- Ease of logistics Services

NLP- National Logistics Policy

E-Logs- Ease of logistics services

NMP- National master plan

ERP- Enterprise resource planning

NYK- Nippon Yusen Kaisha

eSanchit- e-Storage and Computerized Handling ofIndirect Tax documents

PE funded- Private equity funded

ESG- Environment sustainability and governance

PPP- Public private partnership

ETS- Emissions Trading System
EU- European union
e-way bill- Electronic waybill
EXIM- Export, Import
FDI- Foreign direct investment

PIB- Press information bureau
PSU- Public sector undertaking
SEZ- Special Economic Zone
UAV- Unmanned aerial vehicle
ULIP- Unified logistics interface platform

FDI- Foreign direct investment

UNCTAD- United nations conference on trade anddevelopment

FY- Financial Year (April- March)

UPS- United Parcel Service

GDP- Gross Domestic Product

US- United States

GHG- Green house gas

WTO- World Trade Organization

GOI- Government of India
ICD- inland container depots
ICEGATE- Indian Customs EDI Gateway
i-Drone- ICMR’s Drone Response and Outreach forNorth East
Note: Magnitudes in INR terms (except for EY Projections) have been converted to US$ terms using a common exchange rate of INR80/US$

Research methodology and EY approachThis thought leadership has been prepared jointly by EY and Bombay Chamber of Commerce and Industry (BCCI) by
conducting primary research, focused group discussions, one-on-one interviews with industry leaders and subject matter
experts in the transportation and logistics industry, backed by secondary research from government sources, press
releases, research papers and statements from industry stalwarts.

58

Envisioning the Future of Indian Logistics@2047

Contributors

Neville M. Dumasia

Kiran Malla

India Leader – Advanced
Manufacturing, Mobility
and InfrastructurePartner, Strategy Leader
for Energy Transition,
Infrastructure & Logistics,
EY-Parthenon India

EY India
neville.dumasia@in.ey.com

kiran.malla@parthenon.ey.com

Vivek Ogra

Mihir G. ShahPartner- Transport
consulting

Partner- Strategy &Transactions

EY India

EY India

vivek.ogra@in.ey.com

mihir3.shah@in.ey.com

Nitesh Mehrotra

Pratik ShahPartner- Consulting(Sustainability & ESG)

Director- Business
Consulting

EY India

EY Indianitesh.mehrotra@in.ey.com

pratik.s@in.ey.com

Akhil Khanna
Director- Business
Consulting
EY India
akhil.khanna@in.ey.com

Avinash Sagar
Assistant Director- Global
Advanced Manufacturingand Mobility
EY- Knowledge
avinash.sagar@gds.ey.com

Acknowledgments

Parag Parmar, Manager, Business Consulting, EY India
Tashi Singh, Manager, Business Consulting, EY India
Animesh Walia, Assistant Manager, EY Knowledge

Envisioning the Future of Indian Logistics@204759

Advisory Board Members

Shri. Rajiv Jalota, IAS
Chairman, Mumbai Port Trust andAdditional Charge, DG, Directorate
General of Shipping

Shri. Amitabh Kumar, IRS
Former DG,
Directorate General of Shipping

Mr. Ritesh Ramakrishnan
Joint Managing Director,
Transworld Group

Shri. Sanjay Sethi, IAS
Chairman,
Jawaharlal Nehru Port Authority

Mr. Atit Mahajan
Managing Director, CMA CGM India

Mr. Suresh Kumar Ramiah
CEO-India, Allcargo Logistics Ltd.

Mr. Nilesh ShahMr. Ritesh Tiwari

Group President and MD,
Kotak Mahindra AssetManagement Co. Ltd.

CFO, Hindustan Unilever Ltd. &Unilever South Asia

Capt. Avinash Batra
Chairman, Seahorse Ship
Agencies Pvt. Ltd.

Mr. Anil Radhakrishnan
Director, Accex Supply Chain Pvt. Ltd.

Mr. CR Nambiar
CEO, Seahorse Ship Agencies Pvt. Ltd.

Mr. S Hajara
Ex CMD, Shipping Corporation of India

Capt. Ram Iyer
Sr. VP, Seahorse Ship Agencies Pvt. Ltd.

Mr. Sandeep Khosla
Director General,
Bombay Chamber of Commerceand Industry

Team members

60

Mr. Pravin Rane

Ms. Minal Khadilkar

Joint Director, Bombay Chamber ofCommerce and Industry

India Business Accelerator Facilitator,
Bombay Chamber of Commerce and Industry

Mr. Siddhesh Pawar

Mr. Pranit Mali

International Trade and Investment Team,
Bombay Chamber of Commerce and Industry

International Trade and Investment Team,
Bombay Chamber of Commerce and Industry

Envisioning the Future of Indian Logistics@2047

NotesEnvisioning the Future of Indian Logistics@2047

61

Notes62

Envisioning the Future of Indian Logistics@2047

Disclaimer
The Bombay Chamber of Commerce & Industry
is India’s premier Chamber of Commerce andIndustry. Established in 1836, it is the oldest
Chambers in the country and has a long andillustrious history of 187 years of continuous
service to trade and industry.
The board of the Chamber includes top
professionals from most industry sectors. The
Chamber is playing a larger role of Corporate asa Citizen while promoting good governance andethical conduct in business and public life
towards the greater good of society
encompassing promotion of skill training, artsand culture in addition to ensuring equitableand balanced industrial growth of the country
in a sustainable manner.
Registered office
Mackinnon Mackenzie Building,
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Phone No. : +91-22 - 49100200 / 49100213
Email : bcci@bombaychamber.com
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The Ruby, 4th floor,
29, Senapati Bapat Marg,
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Phone No. : +91-22 - 61200200/ 61200213
Email : bcci@bombaychamber.com

This thought leadership is for the Bombay Chamber Of
Commerce & Industry (BCCI) as part of publication
submission for the BCCI- 11th Biennial International
Conference on Ports, Shipping and Logistics for which
Ernst & Young LLP (hereinafter referred to as ‘EY’ or‘Ernst & Young’ or ‘Us’) is the Knowledge Partner. EY isundertaking the pre-conference activities and providing
implementation support during the conference anddelivering the thought leadership to ‘Bombay Chamber
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The inferences and analysis made by EY in this reportare based on information collated through primaryresearch, secondary research, discussions with theclient personnel and key stakeholders, and ourknowledge about the sector. EY has taken due care tovalidate the authenticity and correctness of theinformation from various sources, however, norepresentations or warranty, expressed or implied, isgiven by EY or any of its respective partners, officers,
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Envisioning the Future of Indian Logistics@2047

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