Transport infrastructure

An Expert's View about Transportation and Storage in India

Last updated: 29 Jul 2011

India’s transport sector is required to cater to the needs of 1.2 billion people. Since the early 1990s, India's growing economy has witnessed a rise in demand for transport infrastructure and services. The Indian government continues to attach high priority to improving the country’s transport infrastructure.

Sector briefing Transport infrastructure opportunities in India Why India? India?s transport sector is required to cater to the needs of 1.2 billion people. Since the early 1990s, India's growing economy has witnessed a rise in demand for transport infrastructure and services. The Indian government continues to attach high priority to improving the country?s transport infrastructure. Railways Indian Railways (IR) is the biggest state-owned public utility and is currently the fourth largest in the world after US; China and Russia. As a part of it vision for the future, IR is attempting a shift from its traditional approach of bottleneck removal to creation of infrastructure ahead of requirement. Initiatives The Indian government like construction of new lines, gauge continues to attach high conversion, doubling of lines, and enhancing the rolling stock manufacturing capacity for priority to improving country?s locomotives and coaches are high on its transport infrastructure agenda. Opportunities for UK railway companies in India are growing - key areas are detailed below. UK Trade & Investment Sector briefing: transport sector opportunities in India Dedicated Freight Corridors network of freight terminals to provide efficient and cost effective logistics services are now The dedicated freight corridor (DFC) project is available. Freight terminals can be Greenfield the biggest infrastructure project of the Indian facilities developed by private parties on railways. private land or brownfield facilities, that is, existing private sidings. The project envisages construction of dedicated freight lines along the eastern and western Rolling stock sides of India, covering 3358 km through 7 Indian States The coach manufacturing capacity at the Integral Coach Factory, Perambur, and Rail Western DFC project is being supported by Coach Factory, Kapurthala would be Japanese ODA assistance and the Eastern augmented to 1500 per annum each. Dedicated Freight Corridor through Asian Development Bank (ADB) assistance. New manufacturing units for coaches, electric multiple unit [EMU] / [MEMU] / [DEMU] Redevelopment of stations coaches) and high horse power locomotives (4500 ? 6000 HP) for heavy haul freight and IR has identified 50 stations to develop into high speed passenger services are also being world class stations with international level planned. facilities. In India, many of the railway stations located Use of alternative fuels, such as 10 percent in major metropolitan cities individually handle blending of bio-diesel, compressed natural gas, more passengers than the combined numbers fuel cells and hydrogen fuel, would be handled by all airports of the country. The explored. stations are not adequately equipped to handle large numbers. Major metro rail projects Things like easy access or comfortable Most major cities are planning to upgrade and experience prior to boarding or after extend existing Metros or develop these if they disembarkation from trains and good quality do not exist. A total investment of nearly £12 waiting space are largely absent. Most of is envisaged in these metro projects. the stations have not been built with any architectural or aesthetic consideration. The following major metro projects are being developed: The master plan has been prepared for the ? Delhi Metro Phase III development of New Delhi railway station ? Mumbai Urban Transport Plan ? new though it still needs approval from various and enhanced lines local authorities. Feasibility studies have been ? Bangalore Metro commissioned for Mumbai and are being ? Hyderabad Metro considered for a number of others. ? Chennai Metro ? Kolkata Metro ? new line and extension of existing line Po rt rail connectivity projects High speed rail corridors Rail Vikas Nigam Limited has been mandated Six corridors have been identified for technical to undertake capacity augmentation works and studies on setting up of High Speed Rail rail-port connectivity projects. Corridors. These are: Rail-port connectivity projects cover doubling ? Delhi ? Chandigarh ? Amritsar of existing single line port linkages, gauge ? Pune ? Mumbai ? Ahmedabad conversion, provision of new rail lines to ports ? Hyderabad ? Dornakal ? Vijayawada ? and also railway electrification. Chennai ? Howrah ? Haldia Container freight operations and terminals ? Chennai ? Bangalore ? Coimbatore ? Ernakulam Opportunities for private players in container freight operations and development of a UK Trade & Investment Sector briefing: transport sector opportunities in India ? Delhi ? Agra ? Lucknow ? Varanasi ? Further opportunities are likely from a number Patna of smaller ports in Gujarat, Kerala, Orissa, Karnataka and Pondicherry that are being Th developed through private participation. is is likely to offer opportunities in the longer term. Airports Ports The need for upgrading the airports Ind infrastructure in India has resulted from an ia has a coast line of over 7000 Km with a mar increasingly urban population and a significant itime tradition dating back several centuries. It has twelve major ports under the increase in industrial, trade and commercial activity. jurisdiction of the central government and one hundred and eighty seven non-major ports wh India?s airports handled nearly 110 million ich are controlled by the respective state governments. passengers during 2008-09, of which the four Metro gateway airports (Delhi, Mumbai, Kolkata and Chennai) account for 50%of India, under its ten-year plan is known as revenue and 70% of the passengers. Maritime Agenda 2010-2020 plans to invest about £42 billion in developing ports. Two new ports An investment of nearly £ 20 billion is will be built, one on each coast, while envisaged for the development of airport four of the existing major ports will be subs infrastructure till 2020. tantially upgraded. Government of India?s policy on privatisation of ports allows 100% FDI in the sector. The Airport Authority of India (AAI) operates most aspects of the airport (including air traffic Projects at some major ports at different control) and procures most of their equipment stages of implementation mentioned below directly (via global/local tenders). It has been will offer various opportunities. undertaking airport development both on its own and through private sector participation. Mumbai port AAI has taken the private sector participation - route for modernisation of Delhi and Mumbai Creation of exclusive berth for export of ca airports and building of green field rs international Airports at Bangalore and - Mega container Terminal at JNPT for a capacity of 4.4 million TEU Hyderabad airports. Chennai port The next significant opportunity will come from the modernisation of Kolkata and Chennai - Rollon/Roll off terminal at Chennai Port airports. for export of cars and Multi level car parking at Chennai Port to be built on Kolkata airport modernisation programme PPP basis. - The Chennai port plans to construct a The Committee on Infrastructure has given Mega container terminal with a capacity formal approval for the first phase of Rs. Rs50 of 4 million TEU?s on a BOT basis. billion (£625m) modernisation programme of the Kolkata International Airport. Kolkata port /West Bengal Plans include construction of a new terminal and - Dedicated container terminal at Kolkata balance for a new runway and communication port. Bids are likely to be invited and navigation System, extension of second shortly. runway, addition of three new aerobridges and - Part Privatisation of operations both at 20 additional parking bays for large aircrafts. Kolkata and Paradip ports The revamped airport in expected to handle - Deep sea port at Saugar Island at a cost about 20 million passengers every year. of £950 million off the West Bengal coast. Chennai airport modernisation programme UK Trade & Investment Sector briefing: transport sector opportunities in India A major modernisation plan for Chennai airport Tel: (0091 11) 2419 2514 will soon be underway with the Prime Minister?s Email: Mukul.Verma@fco.gov.uk Committee on Infrastructure clearing this project. Isha Agarwal Trade & Investment Adviser Base on the state government?s British High Commission, New Delhi recommendations, the Committee decided that Tel: (0091 11) 2419 2378 the Airport Authority of India (AAI) would use Email: Isha.Agarwal@fco.gov.uk its internal resources to carry out the modernisation work. Derek Griffiths Head, Rail Sector The first phase of the project is estimated to UK Trade & Investment cost Rs23 billion (£290m) London Tel:00 44 (0) 20 7215 4773 In addition, opportunities will come in the Fax: 00 44 (0) 20 7215 4064 medium to long term from development of 35 Email: derek.griffiths@ukti.gsi.gov.uk non-metro airports planned by AAI. Ports sector Opportunities are likely for developers and operators, consultants and advisers specialised Jayalakshmi Jayaraman IT systems providers, safety and security Senior Trade & Investment Adviser equipment provider, Air Traffic control system British Deputy High Commission, Chennai providers, training and various areas of Tel: +91 44 4219 2151 airports supply chain. Email: Jayalakshmi.Jayaraman@fco.gov.uk If you have any questions about opportunities in India, get in touch with the contacts listed at Sujith Thomas the end of this report. Trade & Investment Adviser British Deputy High Commission, Chennai Business opportunities aimed at UK companies Tel: +91 44 4219 2151 are added daily to the UKTI website. These Email: Sujith.Thomas@fco.gov.uk leads are sourced by our staff overseas in British Embassies, High Commissions and Jason Castelino Consulates, across all sectors and in over 100 Head, Ports Sector Team markets. You can search for opportunities by UK Trade & Investment sector or country, or register to receive London business opportunity alerts on a regular basis. Tel: +44 (0) 207 215 8383 Fax:+44 (0) 207 215 4064 jason.castelino@ukti.gsi.gov.uk Major events and activities Airports sector Fo r details of events related to this country or secto Arun Pillai r, use the events search on the UKTI Head of British Trade Office website or register to receive regular updates. British Trade Office, Hyderabad New export events are added daily. Tel: 91 40 4433 4134 Fax: 91 22 4433 4444 UKTI?s Tradeshow Access Programme (TAP) E-mail: arun.pillai@fconet.fco.gov.uk provides grant support for eligible Small & Medium Sized Enterprises (SMEs) to attend Marcus Archer trade shows overseas. Deputy Head, Airport Sector Team UK Trade & Investment - London Tel: +44 (0)207 215 4655 UKTI contacts Fax: +44 (0)207 215 4064 Email: marcus.archer@ukti.gsi.gov.uk Railway sector Mukul Verma Senior Trade & Investment Adviser British High Commission, New Delhi UK Trade & Investment Sector briefing: transport sector opportunities in India Next steps - how UKTI can help British companies wishing to develop their business in local market are advised to undertake as much market research and planning as possible in the UK. UKTI?s local team, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in global markets. This can include: ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential customers in the local market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the local market This work is available via our Overseas Market Introduction Service (OMIS), a chargeable service which assists British-based companies wishing to enter or expand their business in overseas markets. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office. Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: transport sector opportunities in India
Posted: 28 July 2011, last updated 29 July 2011

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