Passenger Vehicle Logistics Industry Opportunities & Challenges RAJU KETKALE Co - Chairman SIAM, Logistic Group & Senior Vice President Toyota Kirloskar Motor Pvt. Ltd, Bangalore 1/28
SAFETY PLEDGE : I WILL ALWAYS WEAR SEAT-BELT * Video Courtesy : World Health Organization 2/28
AGENDA Indian Automobile Market Opportunities - Roadways - Railways - Waterways Challenges - Fleet - Manpower Summary & Request 3/28
AGENDA Indian Automobile Market Opportunities - Roadways - Railways - Waterways Challenges - Fleet - Manpower Summary & Request 4/28
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015... 2020 Units / Year INDIAN AUTOMOBILE MARKET In the Right Place at the Right Time Global / Asia X 1000 6,000 4,500 3,000 1,500 Global / Asia Indian Market (Sales Trend( 000 unit/year)) 824 848 826 890 1,094 1,367 1,464 1,776 Global / Asia Indian Market 2,021 1,989 2,274 Global Recession 3,042 3,283 3,570 3,360 Indian Market 3,528 3,794 6,000 - Promising Future > Global TOP 3 (Manufacturing) 5/28
AGENDA Indian Automobile Market Opportunities - Roadways - Railways - Waterways Challenges - Fleet - Manpower Summary & Request 6/28
ROAD INFRA DEVELOPMENT a) Efficiency Improvement : Smart Toll Booths MANUAL AUTOMATED Need / Request : Service Providers to provide Cost-Effective Solutions Government to support Pan-India Coverage Benefits : Reduce Traffic Congestion & Optimize Transit L /T Reduce paper & contribute to Swachh Bharat Environment Friendly ( Resource Wastage : Fuel 750 Litres /Truck /Yr, Time 500 Hours /Truck /Yr ) Smart Rest-Points Need / Request : Provide facilities at REGULAR Intervals, PAN-INDIA CURRENT FUTURE Facility to contain - Safe Parking Place - Resting Facility - Sanitation Facility Benefits : Safe & Hygienic environment Dignity in the Driver s profession 7/28
ROAD INFRA DEVELOPMENT b) Road Network Improvement : Well Maintained * NH Ratio 79% of highways are still Single & Double Lane roads Express highways (23%) Double lane (51%) Single lane (26%) Need / Request : * Source : NHAI Website Benchmark Global Standards for Road Quality Conversion of Single Roads to 4-Lane Express Highways Well Planned Need / Request : To have shortest route between two locations P Avoid any obstruction to truck movement (eg : Railway height gauges etc ) 8/28
AGENDA Indian Automobile Market Opportunities - Roadways - Railways - Waterways Challenges - Fleet - Manpower Summary & Request 9/28
RAILWAYS for PV LOGISTICS Govt. Vision 2020 20% ~ 25% GOVT. PROJECTS Current Issues : 2% ISSUES a. AFTO Scheme Biggest development in Railway policy Automotive Freight Train Operator (AFTO) Enabling Private Train Operators Improved Efficiency (Low TAT) Cost effective (High Load Capacity) Successful Pilot Run : North < > South Next Step : Usage Improvement by all OEMs 10/28
RAILWAYS for PV LOGISTICS b. Dedicated Freight Corridors : Need for Sustenance & Growth : Benefits : - Increased Height & Width Availability - Higher Loading Capacity - Higher Avg. Speed (upto 100 kmph) - Longer Trains * Source : DFCCI Website Cost Competitiveness Port Connectivity Increase DFCs Under Construction Proposal 11/28
AGENDA Indian Automobile Market Opportunities - Roadways - Railways - Waterways Challenges - Fleet - Manpower Summary & Request 12/28
% Share WATERWAYS for PV LOGISTICS Encouraging Efforts by Govt. to Increase Inland Waterway Logistics Possible Sea Routes Govt Plan to Improve Waterway 10 8 6 4 2 0 2014-15 15-16 16-17 17-18 18-19 19-20 Benefit : Challenges : Traffic Cost Competitiveness Fuel CO2 Infrastructure Geographical Constraints may limit usage Beneficiary OEMs to Drive Activity 13/28
AGENDA Indian Automobile Market Opportunities - Roadways - Railways - Waterways Challenges - Fleet - Manpower Summary & Request 14/28
FLEET DIMENSION REGULATION? Future? Major Challenge :? External Dimensions Internal Quality External Dimension: Current Fleet in India : Trucks with different dimensions Way Forward : OEMs LSPs Government No standard fabrication Retain Smooth Logistics Minimum Impact to All 15/28
INTERNAL FLEET QUALITY Design Issue : Quality Issue : No Standard / Approved Design Lack of focus on Safety Requirements Depends on Transporter s Investment Fabrication lacking quality assurance Standard fabricators Impact to SAFETY & Delivery Productivity : * Leg Injury GAP Absence of Walking Path Weld Joint Failure No GPS Rely on Phone Call 16/28
FLEET QUALITY How to Tackle?.. Step 1 : Select Best Quality Fleet for usage Rectify Rectify 17/28
FLEET QUALITY How to Tackle?.. Step 2 : Control Quality at Fabrication Stage Fabricator Selection Design Standardization Audit Criteria : a) Quality of Present Fleet a) Safety features requirement a) Confirm Quality Approved FLEET b) History of Issues b) Quality features requirement b) Standardize Design 18/28
AGENDA Indian Automobile Market Opportunities - Roadways - Railways - Waterways Challenges - Fleet - Manpower Summary & Request 19/28
DRIVER DEVELOPMENT IDLE FLEET : AVAILABILITY DEMAND CREW SHORTAGE : Anticipate Shortage in near Future 20/28
Current Issue: DRIVER DEVELOPMENT. No Formal Training.. Low Skilled Drivers Poor Education Inadequate safety awareness 21/28
DRIVER DEVELOPMENT How to enhance?.. Mind : Teach What is Correct MIND 1. Identify Required Skill 6. Check Effectiveness 6 Step Approach 2. Assess Present Level 5. Conduct Training 4. Establish Training Schedule 3. Perform Gap analysis 22/28
DRIVER DEVELOPMENT How to enhance?.. Heart : Follow what is correct ( Learn through Fun ) Impactful Training ( Sathyamev Jayate Safety Episode) Practical simulation HEART Skits for drivers Roadside awareness campaign 23/28
DRIVER DEVELOPMENT How to enhance?.. Environment : Care and Motivate ( Your Safety First ) Ensure Proper Rest / Sanitation place Facility at LSP Yard Cooking / Entertainment points Driver s Cooking place (TLKI) Entertainment point (TIL) Rest Point - Enroute Rest Points every 300kms ( Eliminate Night Driving ) 24/28
DRIVER DEVELOPMENT How to enhance?.. Environment : Care and Motivate ( Your Safety First ) Enhance Motivation Rewards for Best Drivers No incentive cut, even for damages Skit / Drama demonstration DOUJO / SafetyTraining Enroute simulation area setup Defensive Driving Technique Risk anticipation training through personal actual videos 25/28
AGENDA Indian Automobile Market Opportunities - Roadways - Railways - Waterways Challenges - Fleet - Manpower Summary & Request 26/28
SUMMARY & REQUEST Request OEM * OEMs to join hands in making Logistics more safe, efficient and cost effective for customer delight. OEM LSP OEM OEM * LSPs to induce quality trucks and make Driver feel the Importance by * Educate * Counsel * Reward HAPPY CUSTOMER Safe operation Best Quality Timely delivery Optimum cost * Government to support by * Infra development * Uniformity in regulation * Appropriate Lead time for Rule Enforcement 27/28
ONE TEAM... ONE GOAL & MOVE FORWARD 28/28