Browse Month: May 2016

NHAI awards INR 2,640 cr road projects in Gujarat

National Highways Authority of India (NHAI) said, to connect important religious and tourist places between Bhavnagar and Somnath in Gujarat, four road projects worth INR 2,640 crore have been awarded.

NHAI said in a statement, “Two hundred and fifty-six km long Bhavnagar to Somnath section of NH-8E (New NH-51) is an important link to connect religious and tourist places of Talaja, Mahuva, Palitana, Island of Diu, Somnath Temple, Gir National Park, Porbandar, and Dwarka. NHAI has awarded a contract for 4-laning of four packages of the section of a total length of 175 km.”

1464671194road2Among the companies that bagged the contracts are Sadbhav Infrastructure, MEP Infrastructure Developers and Sanjose India Infrastructure & Construction (in JV), and Agroh Infrastructure & Developers. NHAI said,

“The total cost of these four packages is INR 2,640 crore (civil construction cost) and project road would be a cement concrete highway.”

The project will also provide improved connectivity to ports of Alang (the biggest ship breaking facility and recycling yard of India), Pipavav, Jafarabad, Gogha and Veraval (fishery collection and trading centre), it said.

The authority said that it expects to award contracts by July this year for the remaining sections of the road project, whose overall cost is INR 4,876 crore.


PM scheme on anvil to make roads safer; to have Rs 2,000 crore initial fund

The government will take the help of the Indian Institutes of Technology to prepare special reflectors for hill roads and redesign them to fix sharp curves.

NEW DELHI: India’s roads notorious for being the world’s deadliest will soon become safer with the launch of the Pradhan Mantri Surakshit Sadak Yojana. The scheme, with initial funding of about Rs 2,000 crore, will eliminate dangerous spots on highways that are the sites of frequent accidents through better design and road engineering and will set up railings on hill roads running along deep gorges.

The Ministry of Road Transport and Highways has sought details from hill states on spots where accidents occur repeatedly. The government will take the help of the Indian Institutes of Technology to prepare special reflectors for hill roads and redesign them to fix sharp curves.

“The scheme has already been approved by the road transport minister and the corpus would be created from the available central road fund,” a senior government official said.

download (1)India has the highest number of roads fatalities in the world. More than 231,000 people are killed in road traffic crashes in the country every year, according to the World Health Organisation. “States have already been asked to send details of locations where regular accidents occur. As per our information, there are around 796 such spots across the country,” the official added. The scheme is a part of the government’s national action plan aimed at the halving number of road accident deaths by 2020, which includes making vehicles safer.

The government will start awarding star certification to car models based on safety. A specialised agency, the Bharat National Car Assessment Programme, is being set up to test and grade the safety of cars sold in India. The ministry is also introducing new safety norms for two-wheelers, which account for 72% of the vehicles on India’s roads and more than half of the fatalities in road accidents.

According to the proposed norms, all scooters and motorcycles in India will have automatic headlamps on, similar to daytime running lamps in cars. Road deaths lead to an economic loss of 2-3% of the gross domestic product, apart from causing social trauma, road transport and highways minister Nitin Gadkari said in a letter to the finance ministry recently.

India will make first-aid training and knowledge of basic lifesaving techniques mandatory for drivers of heavy commercial vehicles including buses and trucks so that they become the first response and trauma care providers for road accident victims. The drivers will get licences only after completing the certified training.


Commercial Vehicle exports falls due to slowing oil-run economies

In April, the exports of commercial vehicle saw a year-on-year fall of 2.7 percent from 7,014 units in April 2015 to 6,826 units last month

NEW DELHI: While the domestic sale of the commercial vehicle has been showing a healthy growth over the last financial year, the exports of the CV have fallen in April after months of growth.  In April, the exports of the commercial vehicle saw a year-on-year fall of 2.7 percent from 7,014 units in April 2015 to 6,826 units last month.

The fall has been primarily attributed to the slowdown in the oil-dependent economies which are the main export markets for Indian OEMS
“Bulk of the exports of commercial vehicles from India go to countries in the Middle East and certain African countries like Nigeria, Algeria,” said Abdul Majeed, Partner, PwC. “The fall in oil prices over the last one year has seen these economies slowing down.”
The fall in exports is mainly because of the light commercial vehicle segment which exported less than last year. LCV segment saw a fall of 10.2 percent in the exports from 4,684 units in April last year to 4,206 last month. In LCV too, the fall has been primarily in the goods carrier which fell 12.4 percent.

The exports of the top three CV exporters, Tata Motors, Ashok Leyland, and Mahindra & Mahindra have fallen in April.

Tata Motors, which is biggest exporter, exported 3,436 units in April. This is a marginal fall of 6 percent from the exports of 3,656 units in April 2015. Mahindra & Mahindra’s exports fell by 2.4 percent to 1,949 last month.  The biggest fall among the three was of Ashok Leyland exports as the company saw the exports dip 34.5 percent from 1019 units in April 2015 to 668.

“Many OEMs have targeted these selected African countries to build their base for exports. And the slowdown there is making the exports tough,” said Majeed.  Ashok Leyland had earlier said that it is looking to set up 2-3 manufacturing in Africa to boost sales and have shortlisted Kenya for the first manufacturing unit.


Nagpur – A Transportation Hub

Nagpur popularly known, as Orange city of India is also known as the second capital of Maharashtra. It is the third largest city by population, of Maharashtra. The city is located in the northeastern part of Maharashtra and India’s geometrical centre, the “zero mile” lies within the city.

Proximity to Mumbai, the commercial capital of the country, has made Nagpur a favourite destination for commercial activities. Nagpur airport is set to become the country’s first national air cargo hub. MIHAN – Multi-modal International Cargo Hub and Airport at Nagpur is the biggest economical development project currently underway in India in terms of investment and spread over an area of 4354 Hectares.

Nagpur is very well connected with major cities in India. It is equidistant from all major metros like Mumbai, Delhi, Chennai and Kolkata located apart by approx 1000km and is within 24hours reach by rail or road. The major highway NH-6 connecting to Mumbai-Kolkata and NH-7 connecting to Delhi -Hyderabad passes through the city. The east-west and north-south corridor of golden quadrilateral also passes through the city making it directly accessible to virtually every city in India. There are international flights from Nagpur to UK and USA and domestic flights connect directly to major cities like Mumbai, Kolkata, Delhi, Hyderabad, Goa, Indore and Bangalore.

In future with an elimination of central sales tax (CST), most companies would prefer to consolidate a number of warehouses in India. Major industries like apparel, 3PL, consumer durables and auto spares would want to set up national distribution centre (NDC) close to India’s geometric centre for serving entire India. Other industries like retail, FMCG and pharmaceutical will have demand for regional distribution centre (RDC) to serve local markets. Nagpur becomes obvious choice for serving local markets or entire India due to its strategic location. This would lead to growing logistics activity in Nagpur and the city will emerge as the country’s most important logistics centre.

Considering this aspect Truckr has introduced itself an online platform where shippers post their shipments and the transporters quote for the shipment. It is a mobile based easy to use application. In short it is a transportation exchange to bring convenience and efficiency to the entire transportation industry. It does it by ensuring that all stakeholders are benefitted from the platform because of the transparency it brings for transporters and shippers.

Nitin Gadkari plans financing arm for Road, Shipping sectors

Union Minister for Roads, Transport, and Shipping Nitin Gadkari says he wants to set up a financing corporation for the two sectors of Road and Shipping. A proposal for setting up the corporation will be placed before the Cabinet for approval. “It will give a sense of security to banks to deal with projects from these sectors,” he said recently.

Mr. Gadkari said the proposed financing company would be able to tap into both domestic and foreign funds for the sector. He said he had
1463979787roadsrecently met the banks and multilateral institutions and they were supportive of the plan. According to him, the road and shipping sectors would throw up a business opportunity of INR 25 lakh crore for the proposed financial entity in 5 years.

Giving an estimated break-up of the funds he expected to raise annually, he said these included annual earnings from tolls of about INR 10,000 crore, which “if securitized for 15 years would yield returns of above INR 1.3 lakh crore”, he said. On top of it, the Ministry has an annual Budget of about INR 55,000 crore (Plan Budget for 2016-17); another INR1 lakh crore from 100-odd projects the Ministry has executed for the Government topped up with an elbow room of INR 70,000 crore for tax-free bonds, which the Minister claimed gave him a purse of about INR 3.5 lakh crore.

Moreover, the Roads Transport and Shipping Ministry also plans to set up a logistics park beyond Delhi’s municipal limits. Minister Nitin Gadkari said that “We are in talks with Delhi Chief Minister Arvind Kejriwal to set up the logistics park along the eastern and western peripheral expressways for the land.”


Transport research body seeks reduction in excise duty on diesel

The Indian Foundation of Transport Research and Training (IFTRT) has written to Finance Minister Arun Jaitley seeking a roll back of the nine excise duty hikes on diesel between November 2014 and January 2016. SP Singh, Senior Fellow at IFTRT, wrote in a letter to the Finance Minister, “The central government and later various state governments periodically increased excise duty and sales tax on diesel to retain the benefit of plummeting international crude oil prices. Now, the international crude oil prices have shot up to USD 49.05 a barrel the truck rentals too are shooting up more due to the diesel price hike and other reasons.”

“It is high time that the Centre should reduce/roll back at least half of the excise duty increase on diesel done since November 2014.” The nine excise duty hikes since November 2014 have led to the levy increasing by Rs.13.47 a litre since then.

IFTRT has sought at least a reduction to the tune of around Rs.6-7 a litre. “This is not a relief to the truckers or the agriculture sector but for the larger interests of the economy,” Singh wrote. IFTRT has also suggested that the reduction in excise duty can only be extended to trucks and commercial vehicles.

“Diesel guzzling cars/SUVs should not be extended with this benefit,” Singh wrote. As a result of the hikes in excise duty, the retail selling price of diesel is now almost as high as that in November 2014, despite the fact that Indian refiners are currently paying less to source crude oil. The retail selling price of diesel in Delhi currently stands at Rs.51.67 a litre while Indian crude basket or the price at which domestic refiners bought crude oil stood a USD 46.62 a barrel on May 17. In November 2014, the retail selling price of diesel in Delhi was Rs.53.35 a litre at a time when the Indian crude basket averaged at $76.43 a barrel.

Over the two years, the rupee has also weakened. While one US Dollar was worth Rs.61.80 in November 2014, as on May 17, 2016 it has weakened to Rs.66.72.


DB Schenker opens logistics centre in Bhiwandi, near Mumbai

Schenker India Private Limited the transport and logistics division of the € 40.4-billion Deutsche Bahn Group has announced the opening of its third Schenker Logistics Centre (SLC) in Bhiwandi. Spread over 200,000 (approx.) sq. ft, the SLC is one of the largest logistics centres in the area and would be providing integrated logistics solutions to businesses involved in baby care, mother care, fire protection, camera and accessories, and bathroom fittings, informed a release.

Strategically located at a distance of 3 kilometer (km) from NH-3 (Mumbai-Nashik Highway), 60 km from JN Port and 60 km from NH-8 (Mumbai-Ahmedabad Highway), the logistics centre comes with material handling equipment like reach trucks, stacker and forklifts, and features warehouse height (side) of 30 ft, centre 38 ft, turbo ventilators and louvers, and three-phase electricity connectivity. The proposed western dedicated freight corridor is just 0.5 km from the new warehouse, the release pointed out.

Commenting on the development, Oliver Bohm, CEO, Schenker India Private Limited, said, “The western industrial corridor is one of the busiest in India with a high concentration of existing and upcoming manufacturing units.” This creates an immediate demand for effective logistics and warehousing solutions. Our new Schenker Logistics Centre (SLC) in Bhiwandi, with its strategic location, is well placed to cater to the logistics requirements of customers in the region.”


Logistics Stocks Shine As Assembly Poll Results Bolster GST Hopes

Shares of logistics companies like Allcargo Logistics, Gati, Snowman Logistics and VRL Logistics rallied sharply on Thursday, rising by as much as 10 percent in a weak market. Traders said the BJP’s good performance in the recently-held assembly elections has led to renewed hopes of the Goods and Services Tax (GST) Bill being passed in Rajya Sabha. The GST – which creates a single national sales tax to replace a matrix of unwieldy and complicated levies by the states and central government – is stuck in the Rajya Sabha, where the BJP is in a minority.

Logistics companies will be the biggest beneficiary of the GST implementation as it will facilitate the seamless movement of goods across the country. The BJP is set to form the government in Assam while it has also increased its vote share in Tamil Nadu, West Bengal, and Kerala. K.K. Mital, head of portfolio management at Globe Capital Market, said a BJP victory in Assam will be positive for the government as it will be able to push forward its reform agenda more strongly.

Analysts, however, noted that the BJP’s strong performance in state elections is unlikely to increase its tally in Rajya Sabha. According to Nomura, the five states that went to polls account for 51 seats in the Upper House, of which six will come up for re-election in 2016 (all in Tamil Nadu), six in 2017 (all in West Bengal) and eight in 2018 (West Bengal and Kerala). The BJP’s victory in Assam will not help, as none of the seats (seven in the Upper House) are up for re-election until 2019, the brokerage said.


Election Impact! Logistics stocks close higher on GST hopes

The shares of logistics companies closed higher on the counter, as BJP and regional parties have put up a good show in the just concluded regional elections.

The shares of logistics companies closed higher on the counter, as BJP and regional parties have put up a good show in the just concluded regional elections. West Bengal CM Mamata Banerjee said to a press gathering that TMC will support the passage of GST in Rajya Sabha during the monsoon session. After this electoral debacle, it will become increasingly difficult for Congress to block GST in the upper house, as most regional parties are more or less on the same page in regards to GST.

Allcargo Logistics is planning to invest Rs.130 crore to buy a controlling stake in CCI Logistics, as per media reports. On February 15, it got an in principle board approval to buy a majority stake in CCI, a company in freight forwarding and contract logistics with a special focus on chemicals.Allcargo Logistics Ltd ended at Rs. 153.1, up by Rs. 7.85 or 5.4% from its previous closing of Rs. 145.25 on the BSE.

Patel Integrated Logistics Ltd ended at Rs. 99.15, up by Rs. 4.8 or 5.09% from its previous closing of Rs. 94.35 on the BSE. The scrip opened at Rs. 94.3 and touched a high and low of Rs. 104.3 and Rs. 93.65 respectively. A total of 788018(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 149.89 crore.

VRL Logistics Ltd ended at Rs. 394.55, up by Rs. 3.65 or 0.93% from its previous closing of Rs. 390.9 on the BSE. The scrip opened at Rs. 393 and touched a high and low of Rs. 415 and Rs. 392.1 respectively. A total of 463698(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 3566.71 crore.

Sical Logistics Ltd ended at Rs. 134.9, up by Rs. 0.4 or 0.3% from its previous closing of Rs. 134.5 on the BSE. The scrip opened at Rs. 138 and touched a high and low of Rs. 140 and Rs. 133.1 respectively. A total of 155439(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 747.82 crore.

Snowman Logistics Ltd ended at Rs. 58.2, up by Rs. 0.75 or 1.31% from its previous closing of Rs. 57.45 on the BSE. The scrip opened at Rs. 57.2 and touched a high and low of Rs. 61.3 and Rs. 56.75 respectively. A total of 4159140(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 959.92 crore.


BUZZ-India’s logistics firms rally on state election results

** India’s logistic firms gain on hopes that state elections will boost chances of a key goods and services tax (GST) reform

** Early results showed the Congress was headed for heavy defeats in state elections

** Raises hope that BJP will face less resistance in the upper house of parliament, where Congress and its allies still hold a significant presence

** GST, other legislation have been stuck in the upper house

** Gati Ltd gains as much as 7.4 pct, Snowman Logistics climbs 6.8 pct and Allcargo Logistics Ltd rises as much as 9.5 pct


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