Surplus capacity will moderate returns for container terminal operators

(Summary of a recent ICRA report)   With surplus capacity addition of container terminals in the Mundra-JNPT (North West) and the Chennai cluster (South East) regions, container terminals are likely to witness severe competitive pressures for larger share of incremental volumes; and thereby pressure on realisations as well. As per an ICRA note, with JNPT adding large capacity over the next three years, there is likelihood of Mundra, Pipavav, Hazira and other JNPT terminals facing severe competitive pressures for a larger share of the exim cargo belonging to the northern…

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Despite renewables surge, coal use will continue to rise in India

In its annual Coal Market Report for 2017 released on Monday in New Delhi,  the International Energy Agency (IEA) has forecasted coal-fired power generation in India to increase at nearly 4% per year through 2022, in the back of growing fleet of coal power plants and robust power demand. Further, the IEA has reduced its forecast for import of thermal coal in the light of the various initiatives being taken by the government to reduce coal imports. However, import of coking coal is projected to increase over 5% per year through…

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Zebra’s 2018 Insights: Digital Transformation is moving along

(Excerpts of a recent report released by Zebra Technologies) 2017 has been another great year for technology. Among the many new and exciting developments, one thing stood out clearly – organizations and enterprises want, and need, increased visibility into their operations to gain actionable insights. As companies have started their digital transformations to become more intelligent, they will look to adopting what we call the 3 As: Analytics, Automation, and Artificial Intelligence. This ties in with the increasing focus for real-time information and the wider use of locationing technologies. Be…

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Charging infrastructure a major challenge to promote Electric Vehicles

(Excerpts of a report recently released by TechSci Research)   Electric vehicle industry is still at a very nascent stage in India with less than 2,000 electric cars sold in the country and a little less than 23,000 electric two-wheelers sold in the last year. The government of India is aggressively pushing the sales of electric vehicles on the back of various incenti ves through the government’s schemes. Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) in India is the government’s latest initi ative to boost the sale…

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India’s trade touches double-digits, says Maersk report

(Excerpts of executive summary of Maersk India Q3 2017 Trade Report) As the exuberance around the recent rankings conferred on India by the World Bank and Moody’s just about begins to alleviate, the country gets yet another reason to celebrate, with its global containerized import-export recording its highest growth in the past year, at a strong 10% in Q3 of 2017. Mirroring this overall increase, imports and exports have also clocked growth at the same rate, outperforming industry expectations. With a lot to cheer about already, India’s GDP too has taken…

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20 cities emerging as next big retail hubs

Leading international real estate consultants JLL India last week released its latest retail report ‘Fuelling the Retail Revolution – The Paradigm of Emerging Cities’ in association with the CII National Retail Summit, 2017. Highlighting the withdrawal of malls across Tier 1 cities, the report identifies 20 cities including tier 2 cities such as Lucknow, Jaipur, Chandigarh, Kochi, Patna, Bhubaneshwar, Indore and Nagpur among the leading cities, as the next retail destinations in the country. The study bases its findings on key parameters such as total retail stock, upcoming supply, retailer presence, retailer expansion plans and investments. It gives…

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GST reshaping FMCG logistics

Trade and industry may have faced teething troubles from the Goods and Services Tax (GST) but the entire business landscape of FMCG (fast moving consumer goods), retail and logistics is going to be transforming into modern and efficient model with introduction of uniform tax regime, says a joint study by ASSOCHAM-MRSS India. “All big corporations with positive impact for their supply chain are remodelling their operations into bigger logistics and warehousing. This is being enabled by the fact that unlike in the past when a company was required to have…

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India can become a food processing powerhouse with logistics improvement

While the $121 billion food processing industry in India presents an opportunity for growth, the sector needs to focus on product conformity with global standards and quality together with factors like logistics traceability and safety, quality of packaging and delivery, noted an ASSOCHAM-Grant Thornton joint study. “There is a need for policy intervention and field level changes for India to develop global competitiveness in many related sub-sectors and ensure that they are firmly entrenched in global value chains,” noted the study titled, ‘Food processing sector-Challenges & growth enablers,’ jointly conducted by ASSOCHAM and…

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Hiring prospects to remain subdued in short term

With corporate India placing most energies on rationalising costs, including the wage costs , and trying to deleverage its balance sheet, the hiring outlook in the private sector , is expected to stay muted till beginning of fiscal 2018-19, an ASSOCHAM assessment , based on its feedback from members has indicated. “The focus , right now is how to deleverage , consolidate, exit from non-core businesses and achieve a lean and mean balance sheets. Going forward at least in the next quarter and a half, the corporates would be busy improving…

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DFC project will enable railways capture market share, says ICRA

The commissioning of dedicated freight corridors (DFCs) is expected to benefit the Indian Railways (IR) in the medium to long term and will be a game-changer in the Indian logistics industry. As per an ICRA note, the DFCs will add incremental capacity to the railway network and would also have a positive multiplier effect on the logistics industry in India. Shedding more light, Shamsher Dewan, Vice President and Sector Head- Corporate Ratings, ICRA says, “Currently IR account for ~30% of total freight movement in India and are a preferred mode…

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