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OPPORTUNITIES IN DRY BULK LOGISTICS IN INDIA. B. Velan Managing Director Scorpio Engineering Pvt Ltd India. ENVIRONMENTAL DISASTER OR COMMERCIAL OPPORTUNITY?. 28 States and 7 Union Territories. States of India 28. Union Territories of India 7. MAJOR ROADS NETWORK
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OPPORTUNITIES IN DRY BULK LOGISTICS IN INDIA B. Velan Managing Director Scorpio Engineering Pvt Ltd India
28 States and 7 Union Territories
States of India 28 Union Territories of India 7
MAJOR ROADS NETWORK 670000 KM excl rural roads of 2000000 KM 65% of freight moves on roads North-South 3200km East-West 3000km 3.3m sq km area 7th largest country
Total navigable length 14200km ( will increase with desilting) Developed to date: 5 national waterways, 4500km
63000 ROUTE KM NETWORK 3RD LARGEST IN THE WORLD (114000 TRACK KM)
7500km coastline 180 minor ports 13 major ports
INDIA PORTS • 13 Major Ports, mainly Government owned • 180+ Minor Ports, open to private investment and public-private partnership • Total of USD 10 billion to be spent on Ports and Terminals by 2020 • Projects for interlinking rivers and developing Inland Waterways
TYPICAL PRODUCTION LEVELS • Sugar 20 million tonnes per year • equal to production in entire Europe • Cement 300 million tonnes • equal to production in entire Europe • Soda Ash 3 million tonnes • Grain 86 million tonnes • Rice 120 million tonnes • Alumina 2 million tonnes TOTAL NUMBER OF 50KG BAGS: 10 BILLION/YR 27 MILLION /DAY
THE DISTRIBUTION SCENE • 27 million 50kg bags per day • Potentially 67500 linered 20ft containers per day • Potentially 33000 silo trucks (40T) per day • Potentially 675 river barges per day (2000 dwt) IS THIS NOT A CASE FOR A SPECIALIZED DRY BULK LOGISTICS COMPANY IN INDIA?
Kassbohrer Germany Types of Road Bulk Trucks Convair Australia ACC Cement India
Courtesy Caretex Denmark
Silos for dry bulk materials in Indian manufacturing plants- these are few and far between as of now- the potential is exponential. The silo to silo concept should become the norm.
POSSIBLE BUSINESS MODEL • Own all assets: silo trucks, barges, bulk trucks, isocontainers. Provide one stop solution • Outsource and manage • Lease silos and silo loading/unloading, bagging equipment to customers. Use modular concept- silo parks • Take long term contracts on per tonne basis of materials supplied
FUNDING • Capital is not a constraint • VCs and Investment funds are plenty waiting to invest in India and Indian infrastructure/logistics ( highest logistics costs in India compared to all other comparable countries) • Long term approach and investment as a focussed business area
THANK YOU FOR YOUR PATIENCE for further information and facts please mail velan@scorpioengg.com