transportation sector india

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Transportation Sector in India Group-3 Ashish Baijal (3) Mihir Jana (14) Sorabh Marwah (25) Ritambhar Roy (38) Sandeep Sreenivasa (50)

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Business Environment presentation on Transportation Sector in India.

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Page 1: Transportation Sector India

Transportation Sector in India

Group-3

•Ashish Baijal (3)

•Mihir Jana (14)

•Sorabh Marwah (25)

•Ritambhar Roy (38)

•Sandeep Sreenivasa (50)

Page 2: Transportation Sector India

HistoryIndependent India:

Top down infrastructure vision.

Government trying to prove to the world what India was capable of.

1950-70: traffic increased thirty fold, road length went up only five times.

Rail network increased – 0.5% in 1950s, barely detectable growth of 0.2% in 1960s, 70s.

6th Five year plan: ‘power, coal, and transport plan.

750 km Konkan railway: First major project since British left.

Unstable Governments => Infrastructure investment - lose-lose option.

Vajpayee’s Government - made infrastructure politically fashionable.

1500

2009

1947

16th century: Sher Shah

Suri, commissioned the

Grand Trunk Road .

British India Era:

infrastructure focused on

colonial requirements.

1853: Boribunder to Thane.

Lobbied by mill owners in

Lancashire.

Railway Network: 0 km in

1850 to 10,500 km by 1875

Page 3: Transportation Sector India

Profile

Source: Planning Commission, 10th five year plan

Page 4: Transportation Sector India

Comprehending Transport

Difficult to comprehend the significance of

transport.

Problems in the power or water, immediately

visible

Lights go off or taps run dry –the public

immediately knows –medical analogy is a

heart attack

Transport sector grinds to a halt slowly –like lung disease –slowly crippling

the body

Public comes to accept poor transport as a way of life –the economy runs slow, quality of life bad, people die in accidents.

Page 5: Transportation Sector India

Road

Page 6: Transportation Sector India

NHDP

NHDP-1 Golden

Quadrilateral5846 km

NHDP-2 North-South, East-

West Corridor, 7300 km.

NHDP-3 Upgrade 12,109

km of NHs.

NHDP-4 2 laning of

remaining roads

NHDP-5 6 laning of selected

roads

NHDP-6 Chennai-

Bangalore, Kolkata-Dhanbad

Expressway.

NHDP-7 Ring Roads, Grade

Separators

NHDP-1 Golden Quadrilateral, 5846 km

NHDP-2 North South, East-West Corridor,

7300 km

NHDP-3 Upgrade 12,109 km of NHs.

NHDP-4 2 laning of remaining roads.

NHDP-5 6 laning of selected roads

NHDP-6 Chennai-Bangalore,

Kolkata-Dhanbad Expressway.

NHDP-7 Ring Roads, Grade Separators

Expressways

Shimla-Chandigarh Expressway

Ganga Expressway

Bangalore-Mysore Infrastructure Corridor.

Page 7: Transportation Sector India

Railways

Kashmir Railway – second

highest in the world.

Mumbai- Delhi, Mumbai-

Howrah Rail Corridor.

One of the longest

network in the world –

63,327 km, 6300

stations.

Daily

18 million passengers.

2 tonnes of freight.

Konkan Railway. Major

project after

independence. RORO(Roll On Roll Off)

service: road-rail

synergy.

Tariff policies: overcharge

freight to subsidize passenger

travel

Page 8: Transportation Sector India

Intra-City: Public Transport

Bus

• 90 % of public transport

• Low floor A/C buses (Volvo, Marco Polo) – 2006 in Bangalore.

• Bus Rapid Transit System – Delhi, Pune.

Train

• Metro: Kolkata, Delhi

• Suburban trains: Mumbai, Chennai.

Page 9: Transportation Sector India

Water and Sea

Main Gateway are 12 Major Ports

Share of Indian Trade 95% by quantity. And 77% by value.

TrafficBefore liberalization about 165 (1991) vs 520

(2004) million tons

Inland water way

navigable length is

14,500 km

Under developed. Total Cargo movement is just 0.1%, compared to 21% in US

Page 10: Transportation Sector India

Aviation

Airlines connect more than 80 cities.

System remains untapped.

Around 90 million passengers

annually.

Equal to Railways in 5 days.

PPP Model, Green field airports-

Bangalore, Hyderabad.

Privatization of Delhi and Mumbai

Airports

Mumbai-Delhi air corridor, ranked

6th busiest routes

Page 11: Transportation Sector India

Institutional Arrangement

Source: ADB - Indian transport profile

Page 12: Transportation Sector India

Share of Transport Sector

Year Share of Transport in

Overall GDP(%)

Share of Transport in

Total Expenditure

(%)

1999–2000 5.7 3.2

2000–2001 5.8 4.5

2001–2002 5.8 4.8

2002–2003 6 4.1

2003–2004 6.2 3.9

2004–2005 6.4 4.2

Page 13: Transportation Sector India

Comparison with ChinaUnits INDIA CHINA

Length of Roads Km. 3,516,452 3,300,000

Main Roads Km. 666,452 770,265

Highways Km. 66,590 130,000

Expressways Km. 200 60,300

Rail Track Length Km. 63,327 76,000

No. of Ports 197 2000

Major 12 130

Turnaround time Days 3 1

Airports 80 467

International 11 40

Page 14: Transportation Sector India

PPP model, IIFCL

Role of IIFCL

IIFCL is a SPV to provide long term finance to infrastructure projects

Overriding priority to PPP projects

Finance projects in sectors like roads, airports, ports, power, urban infrastructure etc

Page 15: Transportation Sector India
Page 16: Transportation Sector India

Way Forward

Expanding Construction Capacity

Construction industry capacity already overstretched –

quality, price affected

Improving Contract Management

On average publicly financed road construction

contracts suffering 35% cost over-runs

Poor quality of designs and site investigations.

Land acquisition.

Page 17: Transportation Sector India

Accountability/Transparency.

Report cards on delivery of services by

PWDs

New programs/projects

public consultations

Performance statistics, e.g.

road accidents by public transport

buses

Regular columns responding to

citizens queries about transport

Media must do its part to increase the accountability of

public institutions, examples:

Page 18: Transportation Sector India

References

Thank You for Your Attention!