With a share of about 6.4 per cent, Uttar Pradesh has garnered fourth highest share in the total outstanding investment attracted by the transport services sector across India, apex industry body Assocham said recently.
Industries in the transportation services sector depend highly on the performance of both the national and global economies, which affects manufacturing output, commodity trade, consumer and business spending, and business and leisure travel activity.
Major industries within the transportation services sector include airlines, trucking, railroad, waterborne transportation, transit and ground passenger transportation, and pipeline transportation. Other services include scenic and sightseeing transportation, transportation support activities such as air and port operations, postal service, couriers and messengers, and warehousing and storage.
“Clocking a compounded annual growth rate of about 15 per cent, UP has attracted total outstanding investments worth over Rs 1.4 lakh crore as of December 2013 in the transport services segment which has grown from over Rs.82,000 crore as of December 2009,” the Assocham study noted.
However, the share of Uttar Pradesh in total outstanding investment in transport services sector has slightly dipped from about 6.7 per cent as of December 2009 to 6.4 per cent as of December 2013.
“Uttar Pradesh is grappling with slow rate of implementation of transport services investment about 37 per cent of investment in the transport services sector in UP is in limbo as of December 2013,” said D.S. Rawat, national secretary general of Assocham while releasing the chamber’s state-level analysis.
“While over 57 per cent of investment worth about Rs.13 lakh crore in projects related to transport services are in limbo out of the total outstanding investment worth over Rs.22 lakh crore attracted by the sector across India as of December 2013,” said Rawat. “Investment lured by the transport services sector across top 20 states in India, on an average, has been growing at a compounded annual growth rate of about 16 per cent during the course of past five years (2009-2013).”
Maharashtra topped with highest share of over 20 per cent in the total outstanding investment attracted by the transport services sector thereby clocking CAGR of about 17 per cent during the course of past five years 2009-2013, besides the state has also slightly improved its share from 19.8 per cent (2009) to 20.4 per cent (2013) during the aforesaid five-year period.
The states of Gujarat (8.9 per cent), Tamil Nadu (8.4 per cent), Andhra Pradesh (6.4 per cent each) and Uttar Pradesh are amid top five states in terms of share in total outstanding investment attracted by the transport services sector as of December 2013, the report added.
Decline in other states
Interestingly, apart from Maharashtra, all other states (amid top five) have witnessed decline in terms of their share during the course of past five years i.e. the share of Gujarat in total outstanding investment was 11.9 per cent as of December 2009, likewise in other states it was – Tamil Nadu (9.2 per cent), Uttar Pradesh (6.7 per cent) and Andhra Pradesh (9.3 per cent).
In terms of growth, Chhattisgarh has ranked on top clocking highest CAGR of over 70 per cent as the outstanding investment in transport services attracted by the state increased significantly from over Rs.3,800 crore as of December 2009 to over Rs.32,200 crore as of December 2013. Besides, the state also managed to improve its share from 0.3 per cent to 1.5 per cent.
Amid other states that have clocked high growth in attracting investment in the transport services sector include Bihar (35.6 per cent), Madhya Pradesh (33.2 per cent), Rajasthan (31.9 per cent) and Haryana (29.7 per cent). Besides, all of these states have also managed to increase their share, it added.
In terms of implementation, Jammu and Kashmir has 89.3 per cent of projects remained non-starter followed by Punjab (89.2 per cent), Bihar (88.2 per cent), Haryana (80.8 per cent) and Jharkhand (74.6 per cent).
Over 44 per cent of total households in India do not have any mode of transport and largely depend upon public transport services; besides, the situation is even worse in rural areas where over 47 per cent households do not own any mode of transport while in urban areas about 37 per cent households do not have any mode of transport. This calls for urgent need to perk up the transport services scenario across India.
Proper implementation of transport services projects is the need of the hour considering its positive impact on providing better accessibility, employment opportunities together with social inclusion, Assocham noted.
Logistics award for APM Terminals Inland Services South Asia
The Confederation of Indian Industry has recognised APM Terminals Inland Services with its prestigious 2013 Supply Chain and Logistics Excellence Award (SCALE Award) at a ceremony in Mumbai.
APM Terminals Inland Services was selected to be the winner in the container logistics category based on a stringent evaluation of its business case and subsequent presentation to the jury in terms of growth parameters in volume and profitability, operational efficiency to increase customer satisfaction and expansion in the Indian subcontinent over the last three years. A total of 106 blue chip organisations participated across industries and 36 were selected for the final round. APM Terminals Inland Services won the award followed by Container Corporation of India in second place.
“We are happy to be recognised by CII in the area of excellence in supply chain and logistics,” said Subhasis Ghosh, Managing Director, APM Terminals India Pvt. Ltd, and Director, Inland Services, South Asia.
APM Terminals India Pvt. Ltd is a part of APM Terminals, a global port, terminals and inland services operator comprising 64 ocean ports and terminals in 40 countries, along with over 165 inland services operations in 48 countries, and staffed by 20,000 employees in a total of 68 countries across five continents. APM Terminals India Pvt. Ltd comprises container freight stations with a total bonded yard area of about 3.7 million sq. ft, empty depots in more than 10 locations with state-of-the-art dry and reefer repair workshops, and is backed by a strong fleet of trucks to manage shunts and primary transportation. It has world-class CFS facilities at Nhava Sheva, Chennai, Dadri and Pipavav.