News / Building India. Transforming the nation's logistics infrastructure.Mckinsey

Building India. Transforming the nation's logistics infrastructure.Mckinsey

🕔 September 17, 2010

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  • McKinsey & Company

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I would like to introduce you to a new report published by the consulting firm Mckinsey.Download the file here.This report also treats India's infrastructure for logistics. Remember that we already brought you another report by KPMG on India's infrastructure for logistics.Take a look at it, I leave you the abstract below here:

Logistics infrastructure is a critical enabler of India's economic development. Recognising this pivotal role, logistics infrastructure spend has been tripled from around USD 10 billion in 2003 to a planned amount of around USD 30 billion in 2010. Despite this increase, the country's network of roads, rail and waterways will be insufficient as freight movement increases about 3 fold in the coming decade. This shortfall in logistics infrastructure will put India's growth at risk.
Since a large part of India's future logistics network is still to be built, the country has a chance to build infrastructure optimally, to meet the growing demand. Doing so requires an integrated and coordinated approach in which the development of each mode-railways, waterways and roads-is matched to the needs and existing assets are better utilised.
In particular, India needs to increase its use of rail, and realise the potential of its waterways. For example, in the normal course, India's rail share in freight would decline to 25 per cent from the current 36 per cent. This is relative to almost 50 per cent rail share in China and the US, similar continental sized nations. The concerted approach suggested in this report can increase India's rail share to 46 per cent.

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