“Infra investments to spur project logistics market in India”

Total market opportunity for project logistics services in India is estimated to be $150.86 bn during 2014-2019
 The total market opportunity for project logistics services in the country is estimated to be $150.86 billion for the 2014-2019 period, finds a study.
The new analysis from research firm Frost & Sullivan titled “strategic analysis of project logistics market in India” covered transportation, warehousing, freight forwarding and value-added logistics services.
“Currently, only a few companies are equipped with the requisite skill set to offer complex project logistics services,” said Frost & Sullivan’s Transportation and logistics research analyst. “Loading, lashing, surveying and route planning are some of the unique areas of expertise needed to offer these specialist services.”
Not many companies are equipped with these skills or the funds to offer project logistics services. Project logistics services often involve the use of purpose-built, heavy machinery, which needs to be imported as they are not manufactured in India. Consequently, high capital investment is required to acquire this special machinery that is of limited use outside of project logistics services.
Opportunities galore“With the shortage of project logistics service providers and the large number of projects in the execution and planning stage, the conditions are ideal for new companies to enter the market,” noted the analyst. “The handling of heavy, over-dimensional cargo is a particularly lucrative business for existing and prospective logistics players in India. Global and domestic firms such as DB Schenker, Bertling Logistics, Allcargo Global Logistics and Transport Corporation of India have already been cashing in on this area of opportunity.”
ChallengesThe market is not without challenges. Poor overall road infrastructure, especially for connectivity to remote locations, has made cargo movement very risky, endangering the cargo, equipment used to move it, people working on the operation, and general public.
Further, the lack of efficient documentation and approval procedures in several ministries and state departments has proven to be a hindrance to the smooth progress of large-scale project logistics activities.
Other market hindrances include customs clearance delays, tardy approvals from highway authorities and the lack of timely cooperation among stakeholders involved in the project logistics operations process.
Scope for the fittestDespite hindrances, the number of proposals for mass rapid transport system projects in India has been on the rise. This trend could create a space for niche project logistics service providers who have the best-suited equipment and mix of expertise to offer the required logistics services.

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