Emerging Markets Insight - India Transportation and Infrastructure Sector Report Segmentation
Transportation Sector India
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Transcript of Transportation Sector India
Transportation Sector in India
Group-3
•Ashish Baijal (3)
•Mihir Jana (14)
•Sorabh Marwah (25)
•Ritambhar Roy (38)
•Sandeep Sreenivasa (50)
HistoryIndependent India:
Top down infrastructure vision.
Government trying to prove to the world what India was capable of.
1950-70: traffic increased thirty fold, road length went up only five times.
Rail network increased – 0.5% in 1950s, barely detectable growth of 0.2% in 1960s, 70s.
6th Five year plan: ‘power, coal, and transport plan.
750 km Konkan railway: First major project since British left.
Unstable Governments => Infrastructure investment - lose-lose option.
Vajpayee’s Government - made infrastructure politically fashionable.
1500
2009
1947
16th century: Sher Shah
Suri, commissioned the
Grand Trunk Road .
British India Era:
infrastructure focused on
colonial requirements.
1853: Boribunder to Thane.
Lobbied by mill owners in
Lancashire.
Railway Network: 0 km in
1850 to 10,500 km by 1875
Profile
Source: Planning Commission, 10th five year plan
Comprehending Transport
Difficult to comprehend the significance of
transport.
Problems in the power or water, immediately
visible
Lights go off or taps run dry –the public
immediately knows –medical analogy is a
heart attack
Transport sector grinds to a halt slowly –like lung disease –slowly crippling
the body
Public comes to accept poor transport as a way of life –the economy runs slow, quality of life bad, people die in accidents.
Road
NHDP
NHDP-1 Golden
Quadrilateral5846 km
NHDP-2 North-South, East-
West Corridor, 7300 km.
NHDP-3 Upgrade 12,109
km of NHs.
NHDP-4 2 laning of
remaining roads
NHDP-5 6 laning of selected
roads
NHDP-6 Chennai-
Bangalore, Kolkata-Dhanbad
Expressway.
NHDP-7 Ring Roads, Grade
Separators
NHDP-1 Golden Quadrilateral, 5846 km
NHDP-2 North South, East-West Corridor,
7300 km
NHDP-3 Upgrade 12,109 km of NHs.
NHDP-4 2 laning of remaining roads.
NHDP-5 6 laning of selected roads
NHDP-6 Chennai-Bangalore,
Kolkata-Dhanbad Expressway.
NHDP-7 Ring Roads, Grade Separators
Expressways
Shimla-Chandigarh Expressway
Ganga Expressway
Bangalore-Mysore Infrastructure Corridor.
Railways
Kashmir Railway – second
highest in the world.
Mumbai- Delhi, Mumbai-
Howrah Rail Corridor.
One of the longest
network in the world –
63,327 km, 6300
stations.
Daily
18 million passengers.
2 tonnes of freight.
Konkan Railway. Major
project after
independence. RORO(Roll On Roll Off)
service: road-rail
synergy.
Tariff policies: overcharge
freight to subsidize passenger
travel
Intra-City: Public Transport
Bus
• 90 % of public transport
• Low floor A/C buses (Volvo, Marco Polo) – 2006 in Bangalore.
• Bus Rapid Transit System – Delhi, Pune.
Train
• Metro: Kolkata, Delhi
• Suburban trains: Mumbai, Chennai.
Water and Sea
Main Gateway are 12 Major Ports
Share of Indian Trade 95% by quantity. And 77% by value.
TrafficBefore liberalization about 165 (1991) vs 520
(2004) million tons
Inland water way
navigable length is
14,500 km
Under developed. Total Cargo movement is just 0.1%, compared to 21% in US
Aviation
Airlines connect more than 80 cities.
System remains untapped.
Around 90 million passengers
annually.
Equal to Railways in 5 days.
PPP Model, Green field airports-
Bangalore, Hyderabad.
Privatization of Delhi and Mumbai
Airports
Mumbai-Delhi air corridor, ranked
6th busiest routes
Institutional Arrangement
Source: ADB - Indian transport profile
Share of Transport Sector
Year Share of Transport in
Overall GDP(%)
Share of Transport in
Total Expenditure
(%)
1999–2000 5.7 3.2
2000–2001 5.8 4.5
2001–2002 5.8 4.8
2002–2003 6 4.1
2003–2004 6.2 3.9
2004–2005 6.4 4.2
Comparison with ChinaUnits INDIA CHINA
Length of Roads Km. 3,516,452 3,300,000
Main Roads Km. 666,452 770,265
Highways Km. 66,590 130,000
Expressways Km. 200 60,300
Rail Track Length Km. 63,327 76,000
No. of Ports 197 2000
Major 12 130
Turnaround time Days 3 1
Airports 80 467
International 11 40
PPP model, IIFCL
Role of IIFCL
IIFCL is a SPV to provide long term finance to infrastructure projects
Overriding priority to PPP projects
Finance projects in sectors like roads, airports, ports, power, urban infrastructure etc
Way Forward
Expanding Construction Capacity
Construction industry capacity already overstretched –
quality, price affected
Improving Contract Management
On average publicly financed road construction
contracts suffering 35% cost over-runs
Poor quality of designs and site investigations.
Land acquisition.
Accountability/Transparency.
Report cards on delivery of services by
PWDs
New programs/projects
public consultations
Performance statistics, e.g.
road accidents by public transport
buses
Regular columns responding to
citizens queries about transport
Media must do its part to increase the accountability of
public institutions, examples:
References
Thank You for Your Attention!