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South Asia

India: A logistics powerhouse in the making?

Karla Gonzalez Carvajal's picture
Photo: Daniel Incandela/Flickr
The numbers are in: India now ranks 44th in the latest edition of the World Bank’s Logistics Performance Index, a relatively high score compared to other countries at similar income levels. This number matters not just to the logistics sector, but to India’s economy as a whole. Indeed, logistics can directly impact the competitiveness of an entire market, as its ability to serve demand is inextricably linked to the efficiency, reliability and predictability of supply chains.

Broadly defined, logistics covers all aspects of trade, transport and commerce, starting from the completion of the manufacturing process all the way to delivery for consumption. To say that it is a complex business is an understatement.

First, there is always a delicate balance between the public arm, which provides the roads, railways and waterways, and lays down the rules and regulations, and the private sector, which has responsibility for carrying out logistics operations in a smooth and seamless manner. This fine interplay is further complicated by the globalization of manufacturing which—with many more ports of call in the logistic chain—is putting ever-increasing pressure on the sector. In addition, there are very practical challenges in integrating different modes of transport, in speeding up border crossings, and in dealing with trade protections–all of which impact external trade.

But as difficult as it might be, creating a well-functioning logistics sector is essential to any nation looking to compete in the global economy. India is a case in point. To fuel its global ambitions, the country has taken active steps to up its logistics game.

E-commerce is booming. What’s in it for urban transport?

Bianca Bianchi Alves's picture
Também disponível em: Português
 

Worldwide, e-commerce has experienced explosive growth over the past decade, including in developing countries. The 2015 Global Retail E-Commerce Index ranks several of the World Bank’s client countries among the 30 most important markets for e-commerce (China ranks 2nd, Mexico 17th, Chile 19th, Brazil 21st, and Argentina 29th). As shown in a 2017 report from Ipsos, China, India, and Indonesia are among the 10 countries with the highest frequency of online shopping in the world, among online shoppers. Although growth in e-commerce in these countries is sometimes hindered by structural deficiencies, such as limitations of banking systems, digital payment systems, secure IT networks, or transport infrastructure, the upcoming technological advances in mobile phones and payment and location systems will trigger another wave of growth. This growth will likely lead to more deliveries and an increase in freight volume in urban areas.

In this context, the Bank has been working with the cities of Sao Paulo and Bangalore to develop a new tool that helps evaluate how different transport policies and interventions can impact e-commerce logistics in urban areas (GiULia). Financed by the Multidonor Sustainable Logistics Trust Fund, the tool serves as a platform to promote discussion with our counterparts on a subject that is often neglected by city planners: urban logistics. Decision-making on policies and regulations for urban logistics has traditionally been undertaken without sufficient consideration for economic and environmental impacts. For instance, restrictions on the size and use of trucks in cities can cause a number of side effects, including the suburbanization of cargo, with warehouses and trucks located on the periphery of cities, far from consumers, or the fragmentation of services between multiple carriers, which may lead to more miles traveled, idle truck loads, and inefficiencies.

In India, this transport engineer is racing toward the future… with German supercars

Shigeyuki Sakaki's picture
Harsh, a civil engineer from Surendranagar, the western State of Gujarat in India, proudly has a collection of supercars recently delivered from Germany. They are all brand new with sleek designs, glossy paint, and fully loaded with state-of-the-art features. One of them is a 600 horse-power monster, another is the first of its kind in India.
 
Without further ado, let's see what he has...

Climate change is forcing us to reinvent rural transport for the better

Ashok Kumar's picture
Photo: Ravisankar Pandian/Flickr
India is in the midst of implementing PMGSY, a $35-billion national level Rural Road Program designed to provide basic road access to rural communities. The World Bank is supporting PMGSY through a series of lending operations ($1.8 billion in Bank funding) and significant knowledge support. A key element of the Bank’s support has been to integrate a “climate and green growth lens” into these efforts in cost-effective ways.

How is “green growth” benefiting India? One important dimension of that effort has been  the use of environmentally optimized road designs, which has resulted in quality infrastructure using local and marginal materials, providing both economic and environmental benefits. Where available, sand deposits accumulated from frequent floods, industrial by-products, and certain types of plastic, mining, and construction waste have been used to good effect. Designs that use such materials have been about 25% cheaper to build, on average, than those requiring commonly used rock aggregates. The environmental benefits of using the above materials, in terms of addressing the big disposal problem of such materials and reducing the consumption of scarce natural stone aggregates, are as significant as the cost savings.

A second “green growth” dimension has been focusing investments on the “core” network, i.e. the network India needs to develop in order to provide access to all villages. Relative to a total rural road network of about 3.3 million kilometers, the core network that falls under PMGSY stretches over only 1.1 million kilometers. Prioritizing construction and maintenance on those critical road links will bring down costs as well as the associated carbon footprint.

Traffic jams, pollution, road crashes: Can technology end the woes of urban transport?

Shomik Mehndiratta's picture
Photo: Noeltock/Flickr
Will technology be the savior of urban mobility?
 
Urbanization and rising incomes have been driving rapid motorization across Asia, Africa, and Latin America. While cities are currently home to 50% of the global population, that proportion is expected to increase to 70% by 2050. At the same time, business-as-usual trends suggest we could see an additional 1 billon cars by 2050, most of which will have to squeeze into the already crowded streets of Indian, Chinese, and African cities.
 
If no action is taken, these cars threaten literally to choke tomorrow’s cities, bringing with them a host of negative consequences that would seriously undermine the overall benefits of urbanization: lowered productivity from constant congestion; local pollution and rising carbon emissions; road traffic deaths and injuries; rising inequity and social division.
 
However, after a century of relatively small incremental progress, disruptive changes in the world of automotive technology could have fundamental implications for sustainability.
 
What are these megatrends, and how can they reshape the future of urban mobility?

Techno-modalism: In the pursuit of equality and liberty in Transport

Rakesh Tripathi's picture


The 70’s were waning and the loudspeaker was still blaring disco. The celebration in this middle class New Delhi neighborhood was noticeable. It was a party to welcome a new car, which like a new bride was decked with marigold garlands. Neighbors had joined the obligatory prayer ceremony in anticipation of a festive lunch. The auspicious coconut was broken and a plump lemon crushed under the tire to ward off evil jealous eyes. A child birth in this neighborhood was rarely celebrated as grandly. Maybe unlike a baby, the car had come after ten long years of excruciating wait and bribes.

Below the garish decorations, the car was technologically from the World War era. Adorned with cheap interiors. It was pretentiously named “Ambassador” and for 50 years, it reigned as the queen of Indian roads. It should have been named “liberator” instead. It liberated the aspiring middle class from the indignities of soul crushing congestion and the curling stench of the Delhi Transport Corporation buses.

When it came to public transportation in pre-1990s India, the bus was a metaphor for socialism, where everyone riding was equal and equally miserable. The car on other hand signified individual liberty, a symbol of capitalism. This fundamental struggle and human desire to balance liberty and equality has historically and philosophically defined the debate on the preferred mode of transportation, Public-Private Partnerships and the role of Information and Communication Technologies.

What are some critical innovations for improving port-hinterland connectivity?

Bernard Aritua's picture
Photo credit: Hxdyl/Shutterstock
Imagine landing in the wee hours of the morning into Netaji Subhas Chandra Bose International Airport in Kolkata, India. As you leave the airport in a taxi, you find yourself stuck in heavy traffic and this at 4:00am in the morning! It does not take long to realize that you are sharing the roads with other early rising passengers riding in cars and buses, but also with a long queue of freight trucks, which seem to be the majority of vehicles along the road. Why are so many freight trucks winding through the city center? You soon learn from the taxi driver that some of the trucks are heading to, or coming from the famous ‘Barabazar’ market, but others are heading towards Kolkata port.

As your taxi leaves the line of trucks behind, you realize that you could be in any port-city in India or, for that matter, in China, USA or Europe. The types and number of trucks, and the freight carried may vary, but the challenges of port-generated traffic affecting the city hinterland is common. Of course, urban mobility solutions are multi-dimensional and usually include complementary strategies, investments and actors. However, the root cause of port-generated city traffic is simply a product of conventional port planning.

In Kolkata, the problem of port-generated traffic could get worse with the completion of the Eastern Dedicated Freight Corridor and National Waterway 1 (Jal Marg Vikas project). However, thanks to an innovative port-hinterland connectivity solution, supported by the World Bank, the ports of Kolkata and Haldia will dramatically increase their capacity while solving the issue of port-generated traffic. This is great news for the many truck drivers, who can often take a whole night just to get in queue to enter the port.

Unlocking the transformative power of waterways

Karla Gonzalez Carvajal's picture


Transport history was in the making a few days ago when a Bangladeshi ship carried a consignment of
1,000 tons of steel and iron sheets from the Port of Kolkata in West Bengal to India’s northeastern states, through Bangladesh. This first-ever transshipment of transit goods marked the formal launch of transit trade and transport between India and Bangladesh using a combination of river and land routes. 
 
Senior government officials and top diplomats from both countries, including the Indian High Commissioner in Dhaka, the Bangladesh Minister and Secretary of Shipping, the Senior Secretary of Commerce, and officials of the Bangladesh Inland Water Transport Authority, attended an inaugural ceremony to observe the unloading of goods at Ashuganj Port on the bank of the Meghna River, according to media reports. The general cargo terminal at Ashuganj Port will be rehabilitated and modernized under the newly approved regional IDA project to support Bangladesh’s waterways to handle the loading and unloading of large volumes of cargo.

​Air transportation – the critical infrastructure when disaster strikes

Charles E. Schlumberger's picture
Relief supplies being unloaded from a New Zealand C-130 at the airport in
Tuvalu after Cyclone Pam struck some outer islands. Photo: Nora Weisskopf

When disaster strikes, air transport is often the only feasible mode of transportation for first responders and urgently needed relief supplies. Following an earthquake, tsunami or hurricane, most roads, rail tracks and even ports become unusable, as they are blocked for days by debris. Airports, on the other hand, are remarkably sustainable and, within hours, usually become operational again.  

Kathmandu Airport: Already crowded
before the earthquake. 
​Photo: Charles Schlumberger
The main reason of this sustainability is that runways are on open space where debris of a disaster can be removed quickly. Furthermore, a runway usually suffers remarkable little damage even by a strong earthquake, such as experienced last week in Nepal or in Haiti in 2010. And even if there are cracks and holes in the runway, modern relief aircraft like C-130s can operate safely for some time.
 
However, the challenges of operating relief flights can quickly become overwhelming, especially for airports in developing countries that usually experience only moderate traffic. In Haiti, for example, more than 74 aircraft landed on a single day following the earthquake to unload supplies. Such traffic poses risks in the air; air traffic control, often hampered by inadequate or damaged surveillance installations, can’t cope managing all arriving aircraft. On the ground, where tarmac and taxiways are small, congestion quickly reigns which prevents the arrival of more flights.

Small changes, big savings: Innovation at work on Indian roads

Ashok Kumar's picture
One of the key issues in transportation is the ability to get both the wonderful advantages that a new road brings to a village, while being cost effective and environmentally and socially responsible. For example, when a village in India finally gets a paved road, life becomes freer, safer, and more prosperous. A new road that connects a rural village opens the local economy to new opportunities.

​Additionally, farmers can travel farther to sell their produce and get better prices, children can go to schools more easily and, migrants who go elsewhere to work can come back to their families. For many years, this transformation was limited to larger villages. Until the year 2000, only about 300,000 Indian villages — half of the total amount of villages — had a main road. In recent years, state and federal governments have grown increasingly ambitious and are now working towards the goal of providing road links to even the smallest of villages.

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