INDIA VS.

CHINA LOGISTICS
R O G E L I O R AM O S P O R T I L L O AL E J A N D R O C O N T R E R AS G UE R R E R O L I L I AN A L V AR E Z T M I X C AR L O S M AL D O N AD O

GEOGRAPHY

India Capital: New Dehli Population: 1,189,172,906 Area: 3,287,263 sq km Language: Hindi, Bengali, Telugu, Marathi , Tamil, Urdu etc. Ethnic Groups: IndoAryan, Dravidian, Mongoloid etc. Religions: Hindu, Muslim, Christian, Sikh

China Capital: Beijing Population: 1,336,718,015 Area: 9,569,901 sq km Language: Standard Chinese or Mandarin, Cantonese, etc. Ethnic Groups: Han Chinese 91.5%, Zhuang, Manchu, Hui, Miao, etc. Religions: Daoist , Buddhist, Christian , Muslim

GOVERNMENT
Republic of India Government Type: Federal Republic Head of government: Prime Minister Manmohan SINGH (since 22 May 2004) Legal System: common law system based on the English model Member of: WTO People's Republic of China Government Type: Communist state Head of government: President HU Jintao (since 15 March 2003) Legal System: civil law influenced by Soviet and continental European civil law systems Member of: WTO

ECONOMY
India GDP: $4.06 trillion Growth: 10.4% GDP per capita: $3,500 Inflation: 12% Exports: $225.6 billion Products: petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel Imports $357.7 billion Products: crude oil, precious stones, machinery, fertilizer, iron and steel, chemicals China GDP: $10.09 trillion Growth: 10.3% GDP per capita: $7,600 Inflation: 3.2% Exports: $1.581 trillion Products: electrical and other machinery, including data processing equipment, apparel, textiles, etc. Imports: $1.327 trillion Products: electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, plastics, organic chemicals

CULTURE & RELIGION

India Education Expenditures: 3.1% GDP Literacy: 61% Most diverse country in the world Religions In order of importance: Hindi, Musslims, Christians, Sikhs, Buddhists China Education Expenditures: 5% GDP Literacy: 92.2% High diversity, but ethnical unit: Han. Based on Confucianism, Daoism, Buddhism as philosophy and religion

INFRASTRUCTURE

AIRPORTS
India:
352 TOTALairports
249 paved runways 103 unpaved runways

China:
502 TOTAL airports
442 paved runways 60 unpaved runways

RAILWAYS
India:
TOTAL KILOMETERS
63,974 km

China:
TOTAL KILOMETERS
86,000 km

ROADWAYS
India:
TOTAL KILOMETERS
3,320,410 km

China:
TOTAL KILOMETERS
3,860,800 km

WATERWAYS
India:
TOTAL KILOMETERS
14,500 km

China:
TOTAL KILOMETERS
110,000 km

LOGISTICS INDUSTRY
INDIA The Indian logistics business is valued at US$ 14bn It has been growing at a 7-8%. The logistics cost represents 13-14% of the countrys GDP. CHINA Industry that is growing at an average of 14% for the last 4 years.
Logistic services Encopassing transport Storage Management function

Logistics key industry: 125 trillion RMB in 2010 18% of the total GDP

OTHER CHARACTERISTICS
INDIA Logistics is what connects local trade and business part and parcel of global business. SMEs play a vital role in the logistics business, together form an integral part of the Indian economy. CHINA High investment from government: Project NingboShanghai 2012: Bridge to reduce distance between porst from 400 km to 80 km

MARKET
INDIA Like with most industries in India, logistics industry is also dominated by Small & Medium Enterprises. The industry is characterized by dominance of the unorganized players (80% of revenues across the value chain) - Primarily the small truck-fleet operators - Single office logistics providers. The market is highly fragmented with thousands of players offering partial services in logistics; it is estimated that there are about 400 firms capable of providing some level of integrated service

MARKET
CHINA It is fragmented in terms of
Number of operators Geographical remit Transportation bottlenecks Regulatory constraints Local barriers Transportation, storage & stock inefficiencies

At first government was the one in control of this industrybut:

Foreign investment International Logistic companies

MOST IMPORTANT ELEMENTS: ACCORDING TO THE COST

INDIA Transportation and inventories CHINA Transportation and storage

MAIN PROBLEMS IN LOGISTIC INDUSTRY

INDIA Poor infrastructure facilities Lack of implementation of IT in logistics Unnecessary check points at the National highways that increase costs
CHINA Large territory, companies only operate in their immediate regions and have little incentive to develop more comprehensive regional networks. Difficult task to coordinate interprovincial logistics. Most companies do not outsource their logistics management, and as they generally only cover the basic activities of transportation, handling and warehousing, they often have less exposure to coordinating logistics requirements on an interprovincial level. Highly Developed infrastructure in the coast, but poorly developed in the center and west.

PORTS

PORT ANALYSIS

India Visakhapatnam Kandla Chennai

China Qingdao Shanghai Tianjin

INDIA
13 Major Ports 187 minor ports Major Ports: Chennai Jawaharal Nehru Port Kandla, Kolkata (Calcutta) Mumbai (Bombay) Sikka Vishakhapatnam

INDIA PORTS
About 95% by volume and 70% by value of the country's foreign trade is carried on through maritime transport. India has 12 major ports: 6 on the west coast and 6 on the east. - They handled 519 million tons of cargo in 2007-08. - They are administered by Port Trusts which are managed by the individual Port Authority under Central Government jurisdiction. - Except for the newly constructed Ennore Port which is run by a company named Ennore Port. There are also around 187 non major / intermediate ports dotted along India's 7,517 km of coastline.

INDIA PORTS
Kandla Location Traffic 2010 Traffic 2011
Northwest India. Gujarat State. Near Pakistan 47,646,300 tons 46,656,000tons 14% of the traffic

JNTP
West India. Maharashtra State 36,504,000 tons 38,061,000 tons 11% of the traffic

Visakhapatnam
East India. Adhra Pradesh State. 38,274,000 tons 42,415,000 tons 13% of the traffic.

Roadways (National Highway)

National Highway: NH 8B, NH 8A, NH 8E

NH 4B, NH 17

NH 5, NH 43

Airports

Kandla International Airport (IXY)

 Chhatrapati Shivaji International Airport, Mumbai. (BOM) Pune International Visakhapatan airport (VTZ) Airport, Pune (PNQ) Dr. Babasaheb Ambedkar International Airport, Nagpur (NAG)

Railways

: Gandhidham, Adipur, Anjar Railway Station

Visakhapatan Railway Station, Uran Railway Station & Baman Dongri Railway Marripalem Railway Staion & Station Kailasagiri Railway Station

Exports

Grains

textiles, sporting goods, carpets, textile machinery, boneless meat, chemicals and pharmaceuticals chemicals, machinery, plastics, electrical machinery, vegetable oils and aluminum and other non-ferrous metals.

Imports

Petroleum, chemicals, and iron, steel, machinery, salt, textiles, and grain.

INDIA PORTS
Vishakhapatnam Kandla, Kolkata Jawaharal Nehru Port 2,478 61 million 1,216,000

Vessels Tons of cargo Containers handled

2,347 65 million 98, 000

2,164 79 million 147,000

MAIN PROBLEMS
Due to severe congestion at Indian ports and inadequate infrastructure, Logistics Service Providers are finding it difficult to manage the increasing growth in the consignment shipments. For instance, the Jawaharlal Nehru which is the largest container port in India is severely congested. It is estimated that India looses about Rs 48,000 crore each year because of higher transaction costs at its ports. The transaction cost at Indian ports is about 10%, compared to 6% in developed countries; resulting in a number of problems faced by logistics companies.

CHINA
2,000 ports 130 only open to foreign ships Major Ports: Dalian Guangzhou Ningbo Qingdao Qinhuangdao Shanghai Shenzhen Tianjin

QINGDAO, SHANGHAI, , TIANJIN

QINGDAO

SHANGHAI

TIANJIN

Tons of cargo

350,000,000

500,000,000

50,000,000

TEU

9,000,000

24,800,000

927,000

CHARACTERISTICS

CHARACHTERISTICS

SOURCES
http://www.chinaknowledge.com/Business/CBGdetails.aspx?s ubchap=4&content=19#Toplogisticsenterprises https://www.cia.gov/library/publications/the-worldfactbook/geos/in.html https://www.cia.gov/library/publications/the-worldfactbook/flags/flagtemplate_ch.html https://www.cia.gov/library/publications/the-worldfactbook/flags/flagtemplate_in.html http://www.kpmg.com.cn/en/virtual_library/Property_Infrastru cture/LogisticsChina.pdf http://bizchina.chinadaily.com.cn/shp_per_logisticschina.shtm l http://www.gctl8.com/ Deliotte. (2007). Conference paper on SMEs in logistics: bringing value to the changing Indian landscape.