Transportation Industry

Neha Hemraj (IPG-2009-37) Sakshi Sharma (IPG-2009-68)

Introduction

Demand for transport grew at an annual rate of 10%, in the last decade the demand in the transport and logistics industry grew along with the accelerating Indian GDP. This growth increased the demand for practically all transport services. Transport and logistics services in India consume a large portion of energy, especially petroleum products. This share increases even more in India with the growth of economy and population. Urbanization and fast industrialization also increase this consumption because of higher demand in freight and passenger transport. The Indian urban population grows at an average rate of 3% a year. Higher income and government liberalization measures led to a rapid growth in the number of automobiles, two- and three-wheelers, private and public buses and urban rail networks, as well as an increased demand for leisure-related travel. Despite the growth of the population of India and its economy, infrastructure faces challenges: environment pollution, increasing traffic density, policies and other inefficiencies in the system.

http://www.ebtc.eu/pdf/130108_MAS_Overview-of-the-demand-in-the-Indian-transport-and-logisticsindustry.pdf

Services Spectrum

Road Transport

Rail Transport

Aviation (Domestic/ International)

Shipping

Passenger

Passenger

Passenger

Passenger

Cargo

Cargo

Cargo

Cargo

These services could be privately or publicly owned. Also can be for long and short distance. http://www.iptu.co.uk/content/trade_cluster_info/india/indian-transportprofile.pdf

Value Added Services

Online Booking/ Cancellation Food Services Entertainment on-board Staff/ Hospitality Travel Guide Accommodation Door to Door service Medical Aid Service maintenance Security Services Unloading/Loading Services

Worldwide Growth Rate

The industry encompasses freight transportation by rail, road, air and marine. The global transportation services market recorded more than 7% year-on-year growth in 2012 to exceed $2.8 trillion. The industry is expected to generate revenue of more than $3.8 trillion in 2016, representing 37% growth in five years. The Americas accounts for just more than a 42% share in the global transportation services industry.

http://www.reportlinker.com/ci02326/Transportation.html

Worldwide Growth Rate

Global airfreight
transportation services market will witness a decline in growth for the five-year period ending 2017 . The market is expected to reach $137 billion in 2017.

World rail freight

industry generated around $194 billion in 2012, having recorded yearly growth of more than 6% for the four preceding years. Industry growth is predicted to accelerate to a yearly rate of around 8% between 2012 and 2016, to reach $286 billion. The global rail freight industry encompasses revenue generated through freight transportation by rail.

http://www.reportlinker.com/ci02326/Transportation.html

Worldwide Growth Rate

Road freight
accounts for more than 74% of the overall industry in terms of value. Predicted to generate almost $2.2 trillion in 2015, representing 28% expansion over five years. The Americas account for 56% of the world road freight sector in terms of value.

Global maritime
container transport market is expected to exceed 730 million TEUs by 2017. Shipping containers have allowed companies to cut transportation costs dramatically, thereby fuelling global trade. Market performance is fuelled by a rise in sea trade, investments in port terminal facilities, rising frequency of global maritime freight transport and evolving shipping networks. The sector is also set to grow due to rising demand for oil and liquefied natural gas in Asia, prompting growth in the transportation of liquid and gaseous commodities.

http://www.reportlinker.com/ci02326/Transportation.html

Growth Rate in India

The huge and diverse transport sector of India includes all mediums of transport like road, rail, air and water. During 2007, the sector contributed to around 5.5 % in India's GDP. With the support from the World Bank, this industry has expanded to almost 900 million tons by the end of the financial year 2011 - 2012.

http://www.mapsofindia.com/india-business.html

Growth Rate in India

Table: Services Sector Growth (Per cent) Growth Rates 1980-83 1 Construction 2 3.9 1988-91 3 8.6 2005-08 4 11.3 2008-12 5 6.8 Shares in Services Sector 1980-83 1988-91 6 16.2 7 13.8 2005-08 8 12.9 2008-12 9 12.2

Trade
Hotels and restaurants

5.6
7.2

6.4
8.9

10.7
14.9

8.0
2.4

24.4
1.9

23.5
1.9

24.2
2.6

23.3
2.3

Railways Transport by other means

Storage Communication Banking and insurance Real estate, ownership of dwellings and business services Public administration and defence Other services Services Sector *: Share of services sector in GDP. Source: Central Statistics Office.

4.6 6.7
2.0 6.5 6.9 6.4 4.9 3.4 5.3

2.5 6.2
1.3 6.1 11.9 8.2 5.2 7.0 7.2

9.5 9.0
6.3 24.0 17.7 9.5 4.6 6.3 10.5

8.0 7.0
10.3 28.0 13.3 8.4 13.1 7.3 9.5

3.0 8.6
0.3 0.8 5.5 13.5 12.3 15.4 45.4*

2.5 8.7
0.2 0.7 7.7 15.5 13.1 14.3 49.0*

1.6 9.1
0.1 3.4 10.7 14.5 8.6 12.2 62.1*

1.5 8.5
0.1 5.3 12.2 14.2 9.2 11.2 64.9*

http://www.rbi.org.in/scripts/AnnualReportPublications.aspx?Id=1039

Growth Rate in India

http://www.rbi.org.in/scripts/AnnualReportPublications.aspx?Id=1039

Major Market Players in Transportation Industry

Rail Transport -- Indian Railways, DMRC Aviation -- Indigo, SpiceJet, GoAir, Jet Airways and JetLite Shipping -- Shipping Corporation of India, Apeejay Shipping Ltd, ABS Pacific, Chowgule & Co Private Limited Road Transport State Transport Corporation, private cab companies