Logistics Infrastructure and Industrial Area/Parks

Transcription

1 Development of Transport Nagar at Hazira Logistics Infrastructure and Industrial Area/Parks Government of Gujarat

2 Contents Project Concept 3 Market Potential 5 Growth Drivers 6 Gujarat Competitive Advantage 7 Project Information 9 - Location/ Size - Demand Assessment - Market Potential - Infrastructure Availability/ Connectivity - Manpower - Key Players/ Machinery Suppliers - Innovative Technologies - Leading Practices & Potential Collaboration Opportunities - Key Considerations Project Financials 25 Approvals & Incentives 27 Key Department Contacts 29 Page 2

3 Project Concept Project Concept: transport Nagar Transport Nagar is a location where activities related to transportation are performed in an integrated manner. It includes information, transportation, inventory, warehousing, material handling and security. In general, a Transport Nagar is a road-based development, but it can be multi-modal too. A higher hierarchy of Transport Nagar is called Logistics Park, and a Transport Nagar generally acts as a feeder service to a Logistic Park. A Transport Nagar development is an important part of logistics infrastructure as because it acts as a vital node within the logistics chain. In a logistics chain, there are nodes of several hierarchies, from a Logistics Park of national scale to a simple Truck Terminal of local scale, through which distribution of goods takes place. In this whole process, a Transport Nagar acts as an intermediate node, which helps to collect & distribute goods from national level to local level & vice versa. The diagram below explains the function of a Transport Nagar at national to local level. The same can be applicable for local to national/international level. Imports (Raw Material) Industries (Production of Goods) Imports (Finished Material) Central Warehouse Logistic Park (Distribution at National Scale) Function of Transport Nagar in Logistic Chain Regional Warehouse Local Warehouse Retail Store Transport Nagar (Distribution at Regional Scale) Distribution at Local Scale Page 3

4 Market Potential and Demand-Supply Setting up of a Transport Nagar in an industrial area would help the industries to distribute their products at different scale by using the Transport Nagar, which is an integral part of the logistics chain. Development of Transport Nagar would provide a one-stop-shop for all necessary infrastructure requirements of transporter companies and industries like parking space, repair and maintenance workshop, place for stay for drivers etc. The Transport Nagar development has state of the art warehousing facilities which will be useful for the local as well as regional industries / traders. Global Logistics Sector An Overview For any country, the annual logistics cost varies between 9% and 20% of the GDP, the figure for the US being about 9%. According to US based Armstrong & Associates, Inc., the global logistics market is currently valued at USD 3.5 trillion. The US logistics market is the largest for a single country in the world capturing one third of the world logistics market, although most of the large LSPs are headquartered in Europe. (The US logistics market is currently valued at USD 1 Trillion) The logistics industry is growing very fast in south east Asian countries due to a shift of manufacturing base and increasing volumes of exports from these countries. Growth Rate: 8%-10% p.a. since 2002; 11% for next 5 years Growth Rate: 15.4% Source: Development of Logistic Park, IL&FS,2014 Page 4

5 Market Potential and Demand-Supply India Logistic An Overview India Logistics Sector An Overview Development of transportation and logistics-related infrastructure such as dedicated freight corridors, logistics parks, free trade warehousing zones, and container freight stations are expected to improve efficiency. Government reform initiatives, promotion of manufacturing and trade, improving investment climate are expected to transform the industry and drive growth between 2016 and In the World Bank s biennial measure of international supply chain efficiency, called Logistics Performance Index, India s ranking has jumped from 54 in 2014 to 35 in 2016 Source: Logistics in India 2016 by ILE The Indian logistics market recorded US $ billion revenue in 2014, and is likely to reach revenues of US $150-$160 billion by 2020.Transportation accounts for about 60 per cent of the market revenues. Demand for project logistics services will be particularly strong in the manufacturing sector as the Indian Government's push to increase the manufacturing output in the country will spur infrastructural activities in this space. The total market opportunity for project. Logistics services in India is estimated to be $ billion for the The key drivers of this growth are infrastructure investment associated with ports, airports, and other logistics development plans, domestic demand growth and increasing trade. Emerging Logistic Locations in India Northern Region Gurgaon, Faridabad, Kundli, Kanpur & Ghaziabad. Some of the emerging lcations are Jharsa, Bilaspur, Tawdu, Sonipat & Panipat By 2014, around 110 logistics parks, spread over approximately 3,500 acres, are expected to come up across India at an estimated cost of US$ 1 billion. Western Region Mumbai, Pune, Nashik, Nagpur, Ahmedabad, Kandla Port, Bhavnagar, Porbandar, Jaipir & Indore Eastern Region Kolkata, Durgapur, Muzzaffarpur-Hajipur & Darjeeling Southern Region Chennai, Coimbatore, Madurai, Hyderabad, Vishakapatanam, Viaywada, Bangalore, Mysore & Kochi Source: India-Logistics-Sector, Cushman & Wakefield Research Page 5

6 Project Concept Logistic Sector Overview Indian Logistics Industry is expected to grow at a CAGR of 8.6 percent between 2015 and 2020, which grew at a CAGR of 9.7 percent during Transportation and Communication accounted for 7.0 percent of the nation s GDP in 2015, accounting for around US $ billion. The key drivers of this growth are infrastructure investment associated with ports, airports, and other logistics development plans, domestic demand growth and increasing trade. USD Billion Logistics Market % Modal Split for Freight Transport 31% 8% 60% E 2015E 2016E Road Rail Water Air The demand for warehousing services in India was estimated at approximately INR billion in The market consists of Industrial and agricultural warehousing. The highest growth is expected from engineering goods, IT, electronics and telecommunication sectors. The share of modern warehousing is expected to increase from 15% in 2010 to 30% in India spends around 13% of its GDP on development of logistics framework. The logistics firms are moving from a traditional setup to the integration of IT and technology to their operations to reduce the costs incurred as well as to meet the service demands. The International and domestic freight traffic by air have shown a growth of 7.5% and 6.2% respectively. Freight traffic from Indian railway accounts about nearly two third of railway revenue and consist of bulk and other goods. Indian Railways generated USD10.3 billion in earnings from commodity freight traffic during FY16 Source: Strategic Insight on the Indian Logistics Industry, May 2016 Development of Logistic Park, IL&FS, 2014 Page 6

7 Market Potential and Demand-Supply Road constitutes 65% country s freight traffic and as per Ministry of road and Transport, road freight is expected to reach 1,835 billion ton kilometers (BTKMs) by The highest growth is expected from engineering goods, IT, electronics and telecommunication sectors. The share of modern warehousing is expected to increase from 15% in 2010 to 30% in The Government of India s Foreign Trade Policy ( ) aims to increase the value of trade to US $900 billion by 2020, by aligning with Government initiatives such as Make in India, Digital India, and Skills India to promote exports growth. The logistic market in India is largely unorganized as several local or domestic transporter with a fleet size of around 5 trucks or trailers accounted more than 2/3rd of the total owned and available fleet size for road transportation in India. Key trends observed in the Indian logistics industry Government initiatives to promote the manufacturing sector and exports are likely to increase the demand for logistics functions. Trade with Asia, Europe, and North America are likely to remain major drivers for freight forwarding and transportation companies in the region. Major investments by both public and private sectors in the last five years on infrastructure, technology upgrades and expansion of sea and airport facilities, and dedicated logistics corridor in the rail network are expected to strengthen the Indian logistics infrastructure. The booming e-commerce market in India is bringing in new opportunities for LSPs. The evolving business model(s) in this space focuses on containing logistics and delivery costs. The expected implementation of nationwide uniform GST is likely to transform the distribution structure of majority of industries as it eliminates the need for dedicated warehouses for each individual administrative region. Source: Knight and Frank research, India Logistics and warehouse report, Logistic market in India , Air traffic report March 2016, IBEF Report Page 7

8 Growth Drivers Logistic sector accounts 13-14% of country s GDP Resurgence in manufacturing activities and emergence of organized retail Growth across diversified industries with marked entry of foreign players leading to investment in logistic/warehouse such as retail, agriculture, pharma, automobile, FMCG etc. Growth Driver The government allows 100% FDI under the automatic route for all logistics except air cargo and courier services. Various tax incentives to attract foreign investments either in the form of profit linked incentives or capital based deductions Investment increases in private sector Adoption of better and advance quality technology, efficient transportation The total investment in infrastructure sectors in 12 th 5year plan is USD 1trillion Thrust on marquee projects-dedicated freight corridor (DFC), DMIC, JNPT, Container terminal & Waterways India's nominal GDP is expected to grow to USD 3.6 trillion by 2020 By 2030, India's crude steel production is expected to increase by a factor of 4. Agricultural output, although reduced in size as a percentage of the economy, is expected to increase from 207 million metric tonnes (MMT) to 295 MMT by The share of organized retail is expected to increase from 5 percent currently to 24 percent by 2020 Page 8 Source: Logistics in India 2016 by ILE Strategic Insight on the Indian Logistics Industry, May 2016 by Frost & Sullivan-Research and Markets

9 Gujarat - Competitive Advantage 'Petro Capital' of India, contributing significantly to the country's production of Petrochemicals (62%), Chemicals (53%) and pharmaceuticals (45%). Gujarat has World s Largest grass root petroleum refinery at Jamnagar by Reliance Industries Limited with a crude processing capacity of 1.24 million Barrels Per Stream Day (BPSD) Gujarat credited with India s First LNG chemical port terminal at Hazira Salt Processing Diamond Processing 70% 75% Geographical advantage due to location on the west coast of India Well connected to the major cities of the world by air and sea routes. The state has 45 operational ports, 12 domestic airports and 1 International airport in addition to an extensive rail and road network. Petrochemicals Chemicals Pharmaceuticals Engineering 18% 45% 51% 62% Gujarat ranked first in ease of doing business as per DIPP report 2015 Gujarat is one of the leading Industrialized States in India and the State has attracted cumulative FDI worth US$ 12 billion from April 2000 to March 2015 Ease of Doing Business: Only state which comply 100% with Environmental procedures. Gujarat fares highly when it comes to setting up a business, allotment of land and obtaining a construction permit Flourishing Economy: State contributes 7.2% of the Nation GDP and shows leadership in many areas of manufacturing and infrastructure sectors. Gujarat s SDP (State Domestic Product) at current price registered a growth of 11% during the year Key Industries: Gujarat is the leader in key industrial sectors such as chemical, petrochemical, auto and its allied sector, pharmaceuticals, engineering, textile, jewellery etc. Strategic location and excellent infrastructure: Located on the west coast of India, Gujarat is well connected to the major cities of the world by air and sea routes. The state has 45 ports, 12 domestic airports and 1 international airport in addition to an extensive rail and road network Source: Socio Economic Review of Gujarat Page 9

10 Gujarat - Competitive Advantage 38% (564 km) of the 1500 km length of DFC will pass through Gujarat which includes 62% of total area of Gujarat (18 out of 33 districts within the influence area) Investment potential for Gujarat is US$ 50 Billion (60% of total investment potential in DMIC) Presence of over 1100 manufacturing unit comprising of small and large industries in PCPIR including chemical, petrochemical, engineering, plastic, dyes & pigments, textile etc. PCPIR The State has received acknowledgments of 2,466 Industrial Entrepreneurs Memorandum (IEM) filed by entrepreneurs between 2010 and October 2015 with an estimated investment of Rs. 6,01,766 Crores Gujarat, with 42.6 % of its population residing in the urban areas, is among the top three urbanized states in the country Gujarat contributes around 17.2 % to the country s industrial output whereas the value of output registered is about 18.5%. Gujarat is the one of the power surplus states in the country as a result it helping in bringing huge amount of investment from the industries and tagged as preferred investment destination in the country Gujarat contributes around 19.1 per cent to India s total exports of goods in Source: Socio Economic Review of Gujarat Source: DIPP report Page 10

11 Project Information GIDC Overview Gujarat Industrial Development Corporation (GIDC), established in 1962 by Government of Gujarat, as the nodal agency to oversee industrial development in the state by setting up industrial estates and promoting industrial growth. GIDC has established total 202 estates till date. The primary functions of the corporation are to 1. Identify, acquire and aggregate land in the state suitable for industrial development 2. Plan and develop aggregated land into industrial areas 3. Plotting and allotment of land 4. Providing basic infrastructure in industrial areas Additionally, to address specific needs, GIDC also develops special infrastructure like water augmentation and distribution infrastructure, culverts, over bridges, training centres, warehouses, etc. GIDC also upgrades existing infrastructure facilities in the established industrial estates periodically. Through the proposed project GIDC intends to upgrade necessary infrastructural facilities in Saykha Industrial Area which includes a Common Effluent Treatment Plant (CETP) for different industrial waste/effluent. Hazira Industrial Estate: Overview Hazira, near Surat has emerged as another mega industrial hub (oil & gas, power, petro-chemicals, fertilizers) supported by a number of captive Jetties. M/s Shell Gas & Power has implemented LNG Port at Hazira and is planning to build a Container Terminal of 2 Million TEU. Essar, Reliance, KRIBHCO, L&T, ONGC, GAIL and IOC have major presence Hazira in the area. Advantages: Proximity to the major urban centre of Surat. Connectivity through NH-6 and NH-8. Foreplaning of NH-8 is already completed. However, there are further expansion plans to extend the existing expressway between Ahmedabad-Vadodara to Mumbai, which will in turn provide the expressway connectivity for Surat to Vadodara/ Ahmedabad/ Mumbai. This project is expected to be completed by Widening and Strengthening of NH-6 to four-lane dual carriageway is being carried out. Proximity to Dedicated Freight Corridor would provide added value to the investors in the region.. Gems & Jewellery, Textile, Chemical & Petrochemical and Pharmaceutical industries are the prominent industrial sectors in the region. Surat Urban Agglomeration was short listed by the Ministry of Urban Development for receiving funds for Urban Infrastructure improvement under JNNURM Scheme. Approved investment plan for Surat indicates that the city will receive INR 4968 Crore over next five years. Page 11

12 Project Information Connectivity RAIL Connected to Delhi Mumbai Broad Gauge railway line at Surat 48.2 km rail line from Sayan/Kim end to Kosad junction with further 7 km for port connectivity SPV formed for proposed 26.4 km from Surat Olpad SH Import to the proposed Delhi-Mumbai Dedicated Freight Corridor (DFC) with a spur line of about 35km. This future linkage will enhance port s connectivity. AIRPORT Well connected by air: 250 kms from international airport at Ahmedabad; 90 kms from domestic airport at Vadodara; 85 kms from domestic airport at Surat Proposed Work in progress for Ankleshwar airstrip Greenfield Airport within PCPIR PORT Adani Port (Dahej) MMTPA GCPTCL Liquid Chemical Terminal MMTPA LNG Petronet (Gas Terminal) MMTPA Reliance liquid fuel jetty MMTPA Birla Copper bulk cargo jetty MMTPA Ro-Ro Ferry Service Terminal by GMB (construction work started) Development of jetty for handling ODC (Over Dimensional cargo) in Joint Venture with Dahej SEZ Ltd Proposed Ro-Ro Ferry Service Terminal by GMB (construction work started) Development of jetty for handling ODC (Over Dimensional cargo) in Joint Venture with Dahej SEZ Ltd LNG TERMINAL ROAD Connected with NH8 to Ahmedabad & Mumbai NH6 connects Maharashtra Border-Surat-Hazira (300 kilometres north of Mumbai, 21 kilometres from Surat city and 31 kilometres from Udhana) A 12.5 Km, 28 inch pipeline transports high pressure gas to the Hazira Mora Metering Station where the custody transfer takes place. A fibre optic cable laid along the pipeline connects the pipeline controls to the terminal control room which enables the operation of the Metering Station. A fibre optic cable laid along the pipeline connects the pipeline controls to the terminal control room which enables the operation of the Metering Station. Page 12

13 Project Information Proposed Location Proposed Transport Nagar Hazira Notified area Boundary Page 13

14 Project Information Available Infrastructure Asphalt Roads Road (4-Lane) from Mandalla Bridge to Hazira LNG Pvt Ltd.) (27 Km) Bhatpore Ichhapor GIDC Estate (5.82 Km) P-7 Road (2.8 Km) Savali Road (1.5 Km) Oil Company Road (2.20 Km) Storm Water Drain (SWD) Earthen (GIDC Estate, Mora through to L&T Co & B/h KRIBHCO t/ship) (14Km) Pucca (Magdalla Bridge to Ichhapore Char Rasta, KRIBHCO T/ship to NTPC T/Ship, P-7 road & Mora Turning to End of L&T Co. (15 Km) Street Light HPSV (150W) (316 nos) Solar (20 nos) Pucca (Magdalla Bridge to Ichhapore Char Rasta, KRIBHCO T/ship to NTPC T/Ship, P-7 road & Mora Turning to End of L&T Co. (15 Km) Water Supply Water Supply capacity : 2.0 MLD with 2 pump Stations & 8 Km long distribution line Under Ground Sump 6000,000 liters Power 220 KV sub station (1 Nos.) 66 KV Sub Station (1 Nos.) Internet Connectivity Hazira has moderate internet connectivity options. 3G and EVDO mobile broadband facilities are available all over Hazira. There are only 2 companies offering 4 types of internet services here. 2 companies are providing 3G services in Hazira. EVDO, FTTH and Landline internet services in Hazira are provided by BSNL. Page 14

15 Project Information Need Of Transport Nagar The development of Transport Nagar is expected to have the following impact on the hinterland: Transport Nagar development at the industrial area (generally situated at the outer parts of a city) would help industries by providing a storage space for their raw materials and finished goods. It would also provide proper & secure parking space for trucks & trailers along with amenities for drivers. This would help reduce congestion on the roads due to roadside parking. A Transport Nagar located on a major interchange or highway provides the necessary infrastructure to help cater to the heavy vehicle traffic being generated from the urban centre as well as pass through traffic. Transport Nagar is a large scale development which would result in improvement of economic profile of the hinterland and provide employment opportunities to the population of the region. Key success Attributes of Transport Nagar The attributes of Transport Nagar are listed below: Capability to handle various sizes, types of cargo and commodities including hazardous goods. Highway access. Good telecommunication systems. Reasonable charges. Adequate parking capacity for the trucks & trailers. Adequate cargo and container (if connected by railway) handling facilities. Capacity to support multi-modal / dual modal transport, inter-modal transport system (if connected by rail). Warehousing and storage facilities. Modern clearing and forwarding services not only for the cargo but also for the transport vehicles. Other necessary facilities and amenities or the users like weigh bridges, eateries, office spaces, dormitories etc. Located at a distance from residential precincts to avoid vehicular pollution & congestion. Page 15

16 Project Information Traffic Survey details: Hazira Sr. No. 1 2 Name of Industry M/s. Krishak Bharati Coop.Ltd M/s. Oil & Natural Gas Co. Ltd Parking Area Available Parking Capacity Per day 1,50, M/s. Larsen & Tourbro Ltd M/s. Reliance Industries Ltd. 70,000 13,00 5 M/s. Essar Steel(India) Ltd. 50, M/s. Adani Hazira Port Pvt. Ltd. M/s. Indian Oil Co. Ltd. (Bottling Plant) M/s. Indian Oil Co.Ltd. (Hazira Depot.) M/s. BPCL (Bottling Plant) M/s. BPCL (Hazira Depot) 6, M/s. HPCL (Hazira depot) 6, ,82,000 1,045 3,631 Monthly Annually 12,145 1, ,200 14,400 4,223 50,670 39,000 4,68,000 20,700 2,48,400 21,000 25,200 1,125 1,3500 2,625 31,500 1,625 19,500 1,875 22,500 1,875 22,500 Based on the above data, currently there is a huge additional requirement of parking (approx sqm). Current parking capacity can meet only approx. 55% of the requirements. (@130 Sqm (including circulation) per truck and 12 hours of haul time). So there will be additional requirement of approx. 2,00,000 sqm parking space considering the future growth of traffic at the rate of 8% CAGR for next 10 years. Page 16 Source: Traffic Survey, GIDC

17 Project Information Broad Land use Break Up of Transport Nagar In Gujarat Special Economic Zone Act, 2004 & UDPFI guidelines, guidelines about broad land use break up for Transport Nagar is given, which is as follows: Proposed Land Use Distribution 10% 28% 2% 18% 30% 6% Transport Operators (office, godowns, loading/unloading) Service Industry (petrol pump, service area, weigh bridge etc.) Public/Semi-public (police post, post office, telephone, first aid etc.) Commercial Parking (idle, transit, other vehicles) Source: UDPFI Guidelines 1996, Gujarat Special Economic Zone Act, % 3% Open Spaces Circulation Area requirement for the proposed transport nagar should be carried out based on the detailed need assessment only. The above area distribution is for reference and is subjected to change based on the detailed assessment. For the purpose of the cost estimate the proposed transport nagar area is considered as 100 acres. The area distribution based on the above criteria is as below: Sr. No. Land use Total area in acres Transport Operators (office, godowns, loading/unloading) Service Industry (petrol pump, service area, weigh bridge etc.) 3. Public/Semi-public (police post, post office, telephone, first aid etc.) 3 4. Commercial 3 5. Parking (idle, transit, other vehicles) Open Spaces 10 7 Circulation 28 8 Others 2 Total Page 17

18 Project Information Benchmarking area requirement for parking To project the parking in the proposed Transport Nagar, it is assumed that the requirement of parking in the Proposed Transport Nagar will grow at the rate of the growth of traffic for the last 20 years, but at the same time, it is also assumed that 50% of the existing parking will come to the proposed Transport Nagar. To calculate the area under parking, an average of 130 sq. m. area is estimated for parking per vehicles (including circulation). The basis of this estimate comes from standards taken from a few similar types of projects, which are mentioned below: Case study Land area allocated for truck parking No. of truck Parking Provided Area per Truck parking(sqm/truck) Vashi Truck Terminal Wadala Truck Terminal Kona Logistic park 59 1, Source: Advisory Services for Development of Transport Nagar at Sanand on PPP Mode, Q by JLL Benchmarking Man Power & Plant and Machinery requirement The total manpower requirement for the administration is per Container Freight Station (CFS) (Administration) 45 numbers. Per Container Freight Station (CFS) (Plant & Machineries) Ware House & Cold Store 6 Numbers of fork lift Reach Stacker and Forklifts Two numbers (capacity -45 tons and stack 1+4 ) Additional forklifts 3 numbers -handling empty Containers. Other facilities proposed in the CFS are weigh bridge, Container stuffing forklift, flood lights with high mast tower and generator for 140 KVA. Service Industry Petrol pump Garage Weigh Bridge 6 Number per petrol pump 5 Number per garage 6 Numbers per weigh bridge Page 18 Source: Estimates by EY

19 Project Information Security Sweeping-1 Sweeping-2 Best Practices: Case studies 1. Iowa 80 6 Number per acre 1 sweeper per 500mt road length 1 sweeper per 100sqm of open land Source: Assumptions: Marlet research & Advisory Services for Development of Transport Nagar at Sanand on PPP Mode, Q by JL L & EY estimates from case studies IOWA80 truckstop is situated outside the city limits which helps avoid congestion in the urban area and get proper warehouse space. IOWA80 truckstop is situated outside the city limits which helps avoid congestion in the urban area and get proper warehouse space. Iowa 80 is the world's largest truck stop, located along Interstate 80 off exit 284 in Walcott, Iowa. Set on a 220-acre (89 ha) plot of land (four times larger than an average truck stop) 75 acres (30 ha) of which are currently developed The site receives 5,000 visitors daily, and features a 67,000 sq ft (6,200 m2) main building, parking for 900trucks, and 15 fuel pumps, with each fuel pump also having another dedicated pump for dispensing bulk diesel exhaust fluid. Four-hundred and fifty employees staff the megaplex. The green initiatives followed by IOWA 80, like less use of artificial light, saving of electricity, water retention & rainwater harvesting, recycling of paper & cardboard boxes etc. can also be followed in the proposed Transport Nagar at Vapi. Source: Unlocking Freight, AASHTO (The American Association of State Highway and Transportation Officials) Page 19

20 Project Information 2. Dhulagarh Truck Terminal Truck Parking Ware house Dhulagarh Truck Terminal is a transport infrastructure project by Calcutta Mumbai Truck Terminal Ltd. in collaboration with West Bengal Transport Infrastructure Development Corp. Ltd (WBTIDC). It is the first of its kind development in Eastern India to provide quality transportation infrastructure involving multiple modes and integrating related functions like warehousing, communications services, and civic amenities. This truck terminal has been operational since July, It is located on the National Highway 6 (NH6- from Kolkata to Mumbai). It is located approximately 15 km from Kolkata. It is about 2 km away from Sankrail railway station on the South-Eastern Railway, and the truck terminal has direct linkage with the station through Dhulagarh-Sankrail road. Parking Capacity: Dhulagarh Truck Terminal has the capacity to park 3,000 light vehicles and 1,700-1,800 heavy vehicles. Parking Charge: The parking charges for different types of vehicles at Dhulagarh Truck Terminal are as follows: Average annual occupancy of the truck terminal is about 85 to 90%. In future, the truck terminal is expected to have railway connectivity as well. Current warehousing space in the truck terminal is about 4 lakh sq.ft. Perishable commodities (fruits, vegetables etc.), building materials (excluding cement), chemical (non-hazardous) are among the major commodities stored at the terminal. Each booking office in the truck terminal has a toilet and a warehouse in an attached manner. Source: Page 20

21 Project Information Technologies and Green Logistics Green Logistics refers to supply chain management policies and strategies to reduce the environmental/ energy footprint of freight and focuses on material handling, waste management, packaging and transport. Intelligent Transport Systems (ITS) Automotive Components e.g. Light weight materials, Aero dynamics, tire tech etc. CLEAN TECHNOLOGIES Vehicle Technologies e.g. EV, Hybrids etc Fuel Technologies e.g. Bio-fuels, Ethanol, CNG, Hydrogen etc. Intelligent Transport Systems (ITS) are advanced applications of Information and Communication Technologies (ICT) in transport, to enable users to be safer, more coordinated, better informed and make smarter use of transport networks. ITS integrate telecommunications, electronics and information technologies Source:Multimodal Logistics in India: An Assessment, European Business and Technology Centre (EBTC) Page 21

22 Project Information Leading practices and potential collaboration opportunities Logistics aims to achieve reduction of inventory, economy of freight, reliability and consistency in delivery performance and minimum damage to products. Learning from the worldwide state of the art practices would help in reducing costs, increase the overall efficiency within the system and reduce the environmental impacts of logistics. The projects or strategies mentioned below strived to achieve some or all of these in various ways and would serve as a learning lesson as the Indian logistics market builds up momentum to take the country forward in this century. 1. CIVITAS ( City-Vitality-Sustainability, or Cleaner and Better Transport in Cities ) The CIVITAS Initiative ( City-Vitality-Sustainability, or Cleaner and Better Transport in Cities ) was launched in 2002 to introduce measures and policies towards sustainable urban mobility. The goal of CIVITAS is to achieve a significant shift in the modal split towards sustainable transport, an objective reached through encouraging both innovative technology and policybased strategies. Several of the projects under this initiative were in the logistics sector, encourage the use of cleaner freight vehicles and are developing solutions to better coordinate freight logistics, including efficient goods distribution, the PIPE NET system for city logistics, and distribution centre for perishable goods. 2. Combi-Road Combi-Road is a new concept from the Netherlands for the surface transport of containers and uses specially designed tracks which can be constructed as separate roads or as extra lanes alongside existing motorways. The containers are pulled on semi-trailers by unmanned automatically controlled electrical vehicles. Source: Google Source:Multimodal Logistics in India: An Assessment, European Business and Technology Centre (EBTC) Page 22

23 Project Information 3. SMARTFREIGHT SMARTFREIGHT (Smart freight transport in urban areas) was a project aimed to make urban freight transport more efficient, environmentally friendly and safe through smarter use of the distribution networks and improved delivery and return-load systems. The basic idea was to integrate urban traffic management systems with freight management and on-board systems. Source: Google 4. Clean Urban Transport for Europe (CUTE) The European Commission undertook the Clean Urban Transport for Europe (CUTE) project to develop and demonstrate an emission-free and low-noise transport system, including the accompanying hydrogen production and refuelling infrastructure. The multimodal freight theme incorporates the movement of freight in one loading unit or road vehicle, which uses successively two or more transport modes without goods handling during modal changes. Multimodal passenger transport covers the use of different modes in a doorto-door journey chain, with the focus on modal integration in a seamless journey Learning from worldwide best practices Streamlining customs processes and freight tariffs Fostering trade agreements Greater process automation Use of improved and state-of-the-art technologies including internet, GPS and inventory management Increase use of outsourcing partners (3PL) Better freight consolidation Use of environmental friendly processes, technologies and products to reduce carbon footprint. Page 23 Source:Multimodal Logistics in India: An Assessment, European Business and Technology Centre (EBTC)

24 Project Information Key Considerations Though the data for the traffic flows and demand have been taken in good faith, there are limitations to the figures and it is necessary to consider different factors influencing the data collection. The shift of traffic to the proposed Transport Nagar is dependent on the number of competitors in the area. The projections are forecast based on the assumption there will not be any other Transport Nagar in this region. For the purpose of accurate forecast of demand, detailed surveys and calculations should be carried out. As far as the scope of this assignment is concern, it is limited to the preliminary assessment which is carried out based on the available data with the concern department and market research. For the purpose of the detailed study following surveys should be carried out to have concrete results for proposed project viabilities: 1. Traffic surveys & assessment 2. Detailed requirement of the said area based on the projected need 3. Truck driver survey : a) Truck Type b) Travel Distance c) Duration of Travel d) Number of Stoppages e) Places of Stoppage f) Route of the Drivers g) Stoppage during Daytime & Nature of Stoppage h) Stoppage during Night & Nature of the Transport Nagar j) Sleeping Preference of the Truckers k) Services available or not available Presently for the Truckers on their Routes l) Reason for Parking: m) Availability of Food n) Willingness to have Food o) Preferred Parking Places Stoppage i) Facilities wanted by the Truckers at 4. Warehousing survey & demand estimation 5. Parking Survey & demand estimation 6. Detailed financial assessment Page 24

25 Project Financials Project cost For the purpose of estimation some assumptions about the costs are taken, based on which the cost of the project is calculated. These assumptions are based on the current trend around the subject site. The assumptions are as follows: Sr. No. 1. Type of cost Land Development Cost Rate in INR Area in Acre Estimated approximate cost excluding Landin Crores 871,200 per acre Infrastructure Cost 3,484,800 per acre Truck Parking Bay- Ancillary Cost 2,178,000 per acre Warehousing area- Ancillary cost 50,000 per acre Commercial Area- Ancillary cost 12,000 per sq.mt Design & approval cost 5% of Sr. no 1 to Misc. developmetn cost 1% of Sr. no 1 to Contingencies 10% of Sr. no 1 to Total ** estimates are without land cost Based on the above assumptions the proposed Project Cost: (Approx) INR Crore Based on the above assumptions the proposed Project Cost: (Approx) INR 1.33 Crore per Acre Source: Estimates by EY Source: Assumptions: Marlet research & Advisory Services for Development of Transport Nagar at Sanand on PPP Mode, Q by JL Page 25

26 Project Financials Project Implementation Structure This project is proposed to be executed in the Public Private Partnership (PPP) mode. The JV / SPV route is contemplated for the proposed project. The implantation of the project is envisaged by creating a Project Company (special propose vehicle), where both GIDC and the private developer will have stake. The stake of GIDC would be the land that it would acquire for the project, would be valued at market rate and the equity contribution of the development will be the investment that GIDC is going to make for the development of the project along with fund raising that the SPV will undertake from the financial institution. Page 26

27 Approvals & Incentives Approvals Existing Development Guidelines Zone: Industrial Permissible FSI/FAR 1.20 Maximum Permissible Ground Coverage 40% Development guidelines of Gujarat Petroleum, Chemical & Petrochemical Special Investment Region Development Authority (GPCPSIRDA) or any other concerned Authority / Department of GoG., are applicable for the development work. All development work shall confirm to the Development Plan proposals and the provisions made under these regulations. Acceptance by the Authority to be complied on fulfilment of the following requirements: Permissible built-up area Permissible floor space index Height of a building and its various stories Permissible open spaces enforced under regulations, C.P., Marginal spaces, other open spaces, set backs etc. Permissible use of land and built spaces Arrangements of stairs, lifts, corridors and parking Minimum requirements of high-rise buildings including N.O.C. from Fire Officer/Fire Safety Consultant as appointed by the Appropriate Authority Minimum requirement of sanitary facility and other common facility Required light and ventilation Source: General Development Control Regulations, GIDC Page 27

28 Approvals & Incentives Key Schemes/ Policies/ Incentives for Investor Scheme for Financial Assistance to Logistic Park, Gujarat Industrial Policy, 2015 Objective To promote and encourage Logistic Park by Private Institutions which aim at upgrading and improving state infrastructure and to boost economic activity and employment generation Quantum of Assistance: The new logistics park will be provided incentive 25% of the eligible fixed Capital Investment in building and infrastructure facilities (except land cost and transport vehicles and other ineligible expenses as mentioned in 1.4) maximum Rs 15 crores The Developer of the logistics park eligible for reimbursement@ 100% of stamp duty paid on purchase of land as required for approved project by SLEC and individual unit shall be eligible for reimbursement@ 50% of stamp duty paid by them on purchase of plot in the industrial park Source: Industries Commissionerate Page 28

29 Gujarat Industrial Development Corporation Industries & Mines Department Office of Industries Commissioner Industrial Extension Bureau This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision. Gujarat Industrial Development Corporation Address: Udyog Bhavan Block No.4, 2nd Floor, Sector 11 Gandhinagar Gujarat,India Phone Number : (79) ; Website :