UNIVERSITY OF PETROLEUM & ENERGY STUDIES

SCHOOL OF BUSINESS, DEHRADUN

SIP Report
Bachelor’s in business administration
(Foreign Trade) 2018-2021

Under the guidance of:

INTERNAL GUIDE EXTERNAL GUIDE

Mr Rajesh Tripathi Mr Anuj Shokeen

Assistant Professor – Senior Scale Manager

SOB, UPES My Logistics Gurukul

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SUMMER INTERNSHIP PROGRAM

JUNE 2020
In
My Logistics Gurukul

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR

THE SUMMER INTERNSHIP PROGRAM 2020

PROJECT (My Logistics Gurukul): Research development executive &

business development Project on studying the major economic sectors from
perspective of international trade and logistics chain.

SUBMITTED BY:

Asmita Roul

SAP ID: 500065893

ENROLLMENT NO: R122218009

BBA (Foreign trade) 2018-2021 School of Business, UPES,

Dehradun

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STUDENT DECLARATION

I hereby declare that this submission is my own work, and that to the best of
my knowledge and belief, it contains only my understanding and learning and
not any material previously published or written by another person nor
material which has been accepted for the award of any other degree or
diploma of the university or other institute of higher learning, except where
due acknowledgement has been made in the text.

Asmita Roul

SAP ID: 500065893

ENROLLMENT NO: R122218009

BBA (Foreign trade) 2018-2021 School of Business, UPES,

Dehradun

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ACKNOWLEDGEMENT

I would like to express my deepest gratitude to all my faculties and mentors

who provided me the possibility to work in two organizations that added so
much to my learning.

A special gratitude to the head of our department Dr Hiranmoy Roy sir, my

course coordinator, Dr Bhartendu Kr. Chaturvedi sir and other mentors who
guided me throughout my internship.

My mentors, Dr Rajesh Tripathi sir contribution in stimulating suggestions and

encouragement helped me in the coordination of my internships and writing
this report.

Also, thanks to the mentors of My Logistics Gurukul for giving me an

opportunity to be a part of their team and to learn and excel in the
departments that I worked and could learn so much.

I would also like to thanks my mentors of My Logistics Gurukul for giving me a

project based on my domain with respect to the current pandemic. It was very
helpful and I got to know so much more about logistics sector. Last but not the
least, my classmates, all the SPRs and my friends who invested their full efforts
and time to make sure I complete the report effectively on time.

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PROJECT: 1

COMPANY: MY LOGISTICS GURUKUL

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SIP WEEKLY REPORT

No. of Content Description

weeks
1 Introduction Introduction to logistics and company
overview
2 Industry experts, Meeting with, CEO Mrs Alpana Chaturvedi
webinar Webinar by Industry Expert, Captain Vivek
Sharma
3 Project allotment Major Economic Sectors and their Logistics
Top shipping lines and future of shipping
logistics
4 Collection of Data , Energy sector , content creation (write-ups)
content creation for social media
5 Collection of Data , Perishable sector and cold –chain logistics ,
content creation content creation (write-ups) for social media
6 Collection of Data Agriculture sector and agro- supply chain
7 Collection of Data, Dangerous goods and its logistics
content creation
8 Collection of Data Rail Freight logistics

TABLE OF CONTENT

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SNO. TITLE PAGE NO.

1 EXECUTIVE SUMMARY 8

2 COMPANY OVERVIEW 9

3 INDUSTRY OVERVIEW 10

4 PROJECT DESCRIPTION 11

5 RESEARCH METHODOLOGY 12

6 ANALYSIS 13-47

7 CONCLUSION 48

8 BIBLIOGRAPHY 49-50

EXECUTIVE SUMMARY

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As a partial requirement of internship program with My Logistics Gurukul, this

report “Importance of an effective logistics supply chain in various sectors” has
been prepared. During internship period, operations, process of export and
import, transportation problem faced by various sectors been studied from point
of view of logistics. To understand the relevance of logistics, certain sectors
have been analysed in depth to draw the conclusion.

This study analyses the Indian logistics market and provides a 2020 outlook in
terms of various modes and segments of logistics considering air freight, ocean
freight, road freight, cold chain transportation, shipping under several sectors. It
also provides a global logistics market snapshot, India's economic trends,
economic sectors and share of logistics services in India, logistics market
growth forecast till 2025.

It covers focused on development of logistics sector, key trends affecting the

industry that include the latest regulations, major challenges, and disruptive
opportunities in the industry. It summarizes growth opportunities and strategic
factors important for success and growth in the market.

COMPANY OVERVIEW

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My Logistics Gurukul has been established to provide support to the growing need of
logistics industry to skill, upgrade and create a pool of job ready human resource. My
Logistics Gurukul has been set up to help the consistently developing and expanding requests
of the business. It is an activity “for the industry and by the industry” and an extension
between the education provider and the industry. The Industry is presently looking towards
prepared and talented manpower to gear up this development. My Logistics Gurukul is a
premier institute which creates industry ready talent.

The industry specialists have come together and created capsule size modules which are
meant to be effective in creating a job ready work force. Each program is designed with the
key principal of ‘Speed to Industry’. There is additionally a repetitive need to reskill, train
across different functions and redesign the aptitudes of the present-day workforce.

The Industry is at a significant crossroads where it needs job-ready skilled workforce thereby
considerably reducing the gestation period on the job and thus increasing efficiency and
productivity for organisation. The sector has come of age, today shaping the future of people,
organizations, and entire nations with socio-economic relevance in supply chains. Cognizant
of its importance and status as a next-gen employment industry of choice, companies like My
Logistics Gurukul are working to serve as a bridge for people to enter the sector, by offering
skills and enabling job-readiness.

My logistics Gurukul is also working with Logistics Skill Council set up by ministry of skill
development and entrepreneurship (MSDE)with aim to developed skill and trained
manpower.

Major Clients: Major competitors

DSV group Safe educate

Berkman forwarding JBS academy
Surge Port Udemy
SKart Coursera
Skyways group EDX
Aardour
Velogic

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INDUSTRY OVERVIEW

Logistics chain is realised as that part of supply chain which plans, implements and controls
the effective flow of goods and its storage from the point of origin to point of consumption,
considering customers requirement. A delighted satisfied customer is first indicator of an
effective logistic chain. While a professional working in the field, logistics management
would be considered as the logistician.

This concept mainly came into adaptation decades back and it expanded over span of time.
It mainly was adapted due to increasing complexity and increasing impact of globalized
supply chain. It is integration of information, transportation, inventory, warehousing,
material handling and packaging considering the spatial factors, and cost factor for an
effective chain.

Relevance in International market

A superior logistics is key to attain a competitive advantage and position in market. Certain
reasons have lead to extension of logistics activities at global level to strive in international
market:

 Increase in magnitude of global business

 Business relying on other countries for source of raw material and as market for finished
goods.
 Fall of global trade barriers
 Increase global competition.

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PROJECT DESCRIPTION

This internship period with my logistics Gurukul gave me a deep insight of the logistic sector,
and most importantly it’s relevance in every major sectors of economy. The logistics
industry is considered a crucial sector to boost international trade as a consequence of
digitalization and globalization.

The logistics and freight industry is evolving rapidly and regarded as the backbone of the
economy in India as it ensures quick, efficient and economical transport of goods across
India and many commercial sectors rely on it. 

Understanding the economic sectors like energy sector, railway freight, agro- supply chain,
cold chain logistics (perishables), shipping logistics, dangerous goods from perspective of
international trade, logistics and there supply chain was the main objective of the project.

Numerous multi-national companies are sourcing, manufacturing and supplying on an

international level, making their supply chains very intricate to manage. However,
outsourcing their logistics and transport operations to professional logistics service
providers has assisted the businesses to get tailored logistical support while enabling them
to focus on their core organizational activities.

Even with the uncertainties of the CO-VID the growth of this sector never subdued, as
irrespective of the situations, the sector would flourish due to its integrity and deep
involvement in every major sector.

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METHODOLOGY

The data is being collected through two types of data sources which are:

1) Primary data sources

2) Secondary data sources.

PRIMARY DATA SOURCES:

Primary data collection from industrial experts and their expertise knowledge in the field
numerous webinars withheld.

TYPES OF CHARTS USED:

1) Bar chart

2) Pie chart

3) table

SECONDARY DATA SOURCES

Figures and data are sourced from various government sites like DGFT , IATA, IMG
And several other sites

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DATA ANALYSIS

ENERGY-SECTOR
While energy sector is highly dependent on supply chain management. The logistics network
in the oil industry is highly inflexible, which arises from the production capabilities of crude
oil suppliers, long transportation lead times, and the limitations of modes of transportation
and energy planning and management.

Current challenge: The main problem facing the oil industry is to minimize the cost of
production and supply of finished products to consumers. Need of hour is a effective supply
chain management can increase the efficiency and competitiveness of a petrochemical plant
and its supply as a whole.

Features of logistics and SCM in the oil industry:

• Maximize customer value, while achieve a sustainable competitive advantage.

• Support good transportation, warehousing, inventory, and logistics network design

to effectively link the flow of products, data, and finances.

• Improve efficiency and competitiveness predetermines the reduction of costs, the

cost of oil production and refining.

• logistics is used as a strategic weapon in a competitive market, by oil and gas

industry.

• It ensures the search for new sources of increase in the efficiency of enterprises,
expands the areas for finding reserves outside production, optimized interaction of the
elements of the enterprise to reach resource potential.

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ENERGY SUB-SECTORS

SUPPLY CHAIN AND ITS DYNAMICS

OIL & GAS DOWNSTREAM Chemicals and petrochemical

 Downstream oil and gas Manufacturing of chemicals
production companies are Stringent environmental
closer to the end user or regulations, with rising
consumer.  operating costs and low levels
Refining of Crude oil and of skilled labour availability
Natural gas Logistical require an effective supply
issues arise in trying to chain.
reduce production costs

OIL & GAS UPSTREAM MINING

Exploration & production of Exploration & production of

Crude oil and Natural gas facing chain solutions for their
a rise in exploration costs due to development of oil sands, Coal,
remote and challenging Uranium, Minerals to maximize
environments associated with mine output and profitability.
new resources, as well as large
infrastructure and logistics asset
constraints.

CURRENT LOGISTICS TREND IN OIL, PETROLEUM AND GAS SECTOR

Moving petroleum, gas and bulk liquid chemicals safely and cost effectively is not an easy
task given the hazardous nature of the products. Given that India is emerging as one of the
largest consumers of refined petroleum products and liquefied petroleum gas, it is not
surprising that the logistics effort to support this growth is receiving some attention.

Late trend is focusing is focusing on vertical integration in logistics, as the subsidies for
petrol, diesel and LPG fade away and the industry moves away from simply passing on the
high cost of operations or inefficiencies to the government subsidy budget, more and more
activities are being outsourced, delivering important cost savings to the state controlled oil
marketing companies like BPLC, HPCL and IOCL.

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INDIA IMPORTS OF CRUDE OIL FROM

COUNTRIES
50
45
40
35
30
25
20
15
10
5
0
IraqSaudi Arabia Iran UAE Venezula Nigeria Kuwait Mexico Angola Brazil

Understanding petrochemical and mining industry

 India is currently the 6th largest producer of chemicals in the world by sales value with
combined chemicals sales worth of US$ 93 billion in 2015. It accounts for 2.2% of global
share.
 Government of India has launched several schemes and initiatives to encourage growth of
the sector which include, Petroleum, Chemical and Petrochemical Investment Region
(PCPIR) scheme: concept of PCPIR is a cluster approach to promote petroleum,
chemicals and petrochemical sectors in an integrated and environmental friendly manner
on a large scale.
 India’s production stood 11,594 thousand MT for major petrochemicals production with
polymer constituting around 57%. Indian export of chemicals and petrochemicals stood at
US$ 27.43 billion in 2014-15 and constituted 9.4% towards total export.
 India is one of the largest exporters of iron ore, chromite, bauxite, mica and manganese,
and it is ranked fifth among the mineral-producing countries in terms of volume of
production.
 The mining sector contributes nearly 2.4 per cent to India’s GDP.
 India produces nearly 88 minerals, which include fuel, atomic, metallic and non-metallic
minerals. 

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Countries export of minerals by India

India Exports by Country

United States 317.31 334.32 INR Billion
United Arab Emirates 154.63 177.24 INR Billion
China 108.00 105.98 INR Billion
Germany 52.87 53.15 INR Billion
Hong Kong 50.45 54.43 INR Billion
Saudi Arabia 47.88 36.08 INR Billion
Singapore 46.66 36.16 INR Billion
Netherlands 46.54 53.72 INR Billion
Nepal 44.03 44.75 INR Billion
Malaysia 35.91 48.86 INR Billion
Belgium 35.61 41.62 INR Billion
Modes used for oil and petrochemical transportation
1. Floating storage and offloading units (FSO) are used worldwide by the offshore oil
industry to receive oil from nearby platforms and store it until it can be offloaded onto
oil tankers. These floating units reduce oil production costs and offer mobility, large
storage capacity, and production versatility.

2. An ore-bulk-oil carrier is a ship designed to be capable of carrying wet or dry bulk

cargoes. This design was intended to provide flexibility in two ways. Firstly, an OBO
would be able to switch between the dry and wet bulk trades based on market
conditions.

3. Replenishment ships are ships that can provide oil products to naval vessels while on the
move. This process, called underway replenishment, extends the length of time a naval
vessel can stay at sea, as well as her effective range. .In addition to fuel, replenishment
ships may also deliver water, ammunition, rations, stores and personnel.

Leading energy sub-sectors that can be invested in:

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Natural Gas Infrastructure

Sector majorly dominated by (PSU’s, Recently the GOI is encouraging greater private
participation and foreign investment, for steady growth of private sector activity. The
introduction of the New Exploration Licensing Policy (NELP) aims at activities in oil and gas
exploration. 

Transmission, Distribution and Smart Grids

In India, the transmission and distribution of power is dominated by the government, very
limited access to private sectors and have few private companies engaged in electricity
distribution. One area of potential market opportunities lies in “smart grid” technologies. 
India is heavily focused on large scale grid modernization, to increase reliability and reduce
black-outs, especially as additional renewable energy.

MY PERSPECTIVE
After understanding the industry and its dynamics, we can clearly see India growth in this
sector is very quantified, by that what I mean the growth is very less significant, but this
sector is most prominent sector as every sector relies upon it directly. As we went through
dynamics we understood India is yet non self- reliant, it is dependent on other countries
imports for its energy reliability.

Green energy

• India is switching to clean energy, its no secret India is improvising new technologies
and been trying to increase the investment in green energy sectors.

• Switching to green energy isn’t that easy, as it has certain criteria's which need to be
pertained like cost affectivity, reliability, technological blast in industries. Growth is
slow, but this drive will switch the country a better place to live in.

• India’s renewable energy sector attracted investments of over $42 billion over the

past four years. India aims to achieve 175 gig watts (GW) of renewables by 2022. 

COLD CHAIN LOGISTICS

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The cold chain refers to the management of the temperature of perishable products in
order to maintain quality and safety of product from distribution chain to the final
consumer. Transporting perishables has different requirements in terms of demand paired
with the specific equipment of a refrigerated unit and the energy necessary to run it make
transportation costs for cold chain products much higher than standard goods. Retail food
sector is dealing in domestic perishables and food industry which includes the cool chain
sector. 

GEOGRAPHICAL BENEFITS:
Global- permitting the transport of temperature-sensitive food products to distant markets.
Enables the distribution of vaccines and other pharmaceutical or biological products from
single large facilities to any market around the world.

Regional- This could involve large cold storage facilities servicing regional grocery markets
or specialized laboratories exchanging temperature sensitive components.

Local - Timely distribution to the final consumer of perishables, namely grocery stores, and
restaurants.

COLD CHAIN: OPPURTUNITIES IN INDIA

India produces more than 400 million MT of perishables every year (horticultural produce+
dairy+ meat+ poultry + fish).

• The wastage levels in perishables in India are significantly high- 4.6- 15.9% in fruits, 5.2% in
inland fish, 10.5% in marine fish, 2.7% in meat and 6.7% in poultry.

• Estimated annual value of losses of Agro produce currently stands at ` 92,651 crores.
Annual value of losses in fruits and vegetables, meat, fish and milk is estimated at ` 50,473
crores.

• Adequate and efficient cold chain infrastructure from farm gate to consumers is required
to arrest the high losses in supply chain of perishables.

• The total cold storage capacity in India at 31.8 million MT.

COLD CHAINS OPERATIONS

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Shipment process

Managing desired temperature, other concerns include the destination of the shipment and
the weather conditions. Should be steam cleaned brought required temperature required
by shipper. Another issue concerns atmospheric control, which is maintaining appropriate
oxygen and carbon dioxide levels, helping control (delay) the ripening by wrapping products
in polyethylene bags, which controls how gases permeate during transport.

Modal choice:

Distance between the origin and the final destination, the size and weight of the shipment,
the required exterior temperature environment, and any time restrictions (perishability) of
the product all affect the available transportation options. Short distances can be handled
with a van or a truck, while a longer trip may require an airplane or a container ship. In this
case, the cost/perishability ratio becomes a factor in the modal choice.

Custom procedures:

If the freight crosses boundaries, custom procedures can become very important, since cold
chain products tend to be time-sensitive and more subject to inspection than regular freight
(e.g. produce, pharmaceuticals, and biological samples sanitary inspection that may require
fumigation)

The “Last Mile”

The last stage is the actual delivery of the shipment to its destination, which in logistics is
often known as the “last mile”. Key considerations when arranging a final delivery concern
not only the destination but the timing of the delivery so the critical labour and warehousing
space is available. Trucks and vans, the primary modes of transportation for this stage, must
meet the specifications necessary to transfer the cold chain shipment. 

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COLD CHAIN ON VARIOUS MODES OF TRANSPORTATION:

AIR CARGO:

Perishables shippers use both passenger aircraft and freighters to speed goods to their
destinations, according to market needs, the nature of the commodity, product margin, and
individual preferences.

 Passenger flights are generally more frequent, less expensive, and more widely
available, but they require adherence to tight timetables.
 Freighters offer better temperature control, fewer inspections, and additional capacity.
But freighters can be more costly, may fly less often and to fewer locations (depending
on the region)

TYPE A TYPE B TYPE C TYPE B

Isothermal vehicles Refrigerant vehicles Frigorifique vehicles Calorific vehicle: 

Built with walls, roof, Contain a cold source They have a cold They allow raising
doors and insulating that allows to reduce production device and maintaining a
floor, limiting the the inside that allows constant temperature
temperature temperature to -20 decreasing and not lower than 12
exchange between degrees. regulating degrees.
inside and outside. permanently the
temperature
between -12 and -20
degrees.

Due to the fragility of perishable goods, the ATP agreement established four types of
vehicles authorized for this type of product:

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RAIL FREIGHT

Rail freight forms a key part of the government’s plan to raise incomes in the food sector by
developing a national supply chain for the refrigerated delivery of perishables including milk,
meat and fish. Kisan Rail is to be established, a public-private partnership to provide chilled
logistics services.

A 17 tonne capacity Refrigerated Parcel Van has already been developed by Rail Coach
Factory Kapurthala, with nine vehicles now available for booking on a round-trip basis at 1·5
times the cost of standard freight.

According CONCOR, a key business area with high potential for growth is Cold chains. This
involves providing transportation to perishable products from source to end-user, while
maintaining a certain temperature along the route. Today 85% of the cold storages are in
the private sector and not a single complete cold chain solution provider is available in the
market. Absence of Reefer container linkages and high and increasing power costs are
proving to be major impediments.

SHIPWAYS

A reefer ship is a type of ship that is used for the purpose of carrying refrigerated cargo.
Reefer ships are mainly used to transport spoilable goods. In today’s times refrigerated
carriers play a very vital role in transporting food products.

Types of Reefer Ships:

Today there are three different types of vessels used for the purpose of refrigerated
shipping. These three variations in the reefer vessels can be explained as follows:

• There are ships that are used as multi-purpose vessels. In such ships, the refrigerated
part is below the areas reserved for passengers.

• There are refrigerator ships that use the concept of refrigerated containers.
Refrigerated containers are huge rectangular containers that are used solely for the
purpose of cargo transportation.

• There are ships that use specific ramps to load and haul the refrigerated cargo.
These ships are the most common ones that are used in today’s times.

EXPORT OF FRESH FRUIT, VEGETABLE AND ANIMAL PRODUCTS

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 India is the largest producer of ginger and okra amongst vegetables and ranks second in
production of potatoes, onions, cauliflowers, brinjal, Cabbages, etc. Amongst fruits, the
country ranks first in production of Bananas (25.7%), Papayas (43.6%) and Mangoes
(including mango, and guavas) (40.4%).

 The vast production base offers India tremendous opportunities for export. During 2018-
19, India exported fruits and vegetables worth Rs.10236.93 crores/ 1,469.33 USD
Millions which comprised of fruits worth Rs. 4817.35 crores/ 692.01 USD Millions and
vegetables worth Rs. 5419.48 crores/ 777.25 USD Millions.

 The major destinations for Indian fruits and vegetables are Bangladesh, UAE,
Netherland, Nepal, Malaysia, UK, Sri Lanka, Oman and Qatar.

 Indian mangoes come in various shapes, sizes and colours with a wide variety of flavour,
aroma and taste. The country has exported 46510.27 MT of fresh mangoes to the world
for the worth of Rs. 406.45 crores/ 60.26 USD Millions during the year 2018-19.

 The export of Animal Products includes Buffalo meat, Sheep/ Goat meat, Poultry
products, Animal Casings, Milk and Milk products and Honey etc. India's exports of
Animal Products were Rs. 30,632.81 Crores/ 4,390.55 USD Millions.

 The main markets for Indian buffalo meat and other animal products are Vietnam Social
Republic, Malaysia, Egypt Arab Republic, Iraq and Saudi Arabia.

PRODUCTS EXPORTED (IN USD)

Buffalo Meat (Rs. 25168.31 Crores/ 3608.72 USD Millions)
Sheep/ Goat Meat  (Rs. 790.65 Crores/ 113.74 USD Millions)
Poultry Products (Rs. 687.31 Crores/ 98.42 USD Millions)
 Dairy Products (Rs. 2422.85 Crores/ 345.71 USD Millions)
Processed Meat  (Rs. 13.52 Crores/ 1.95 USD Millions)
Natural Honey (Rs. 732.19 Crore/ 105.51 USD Millions).
Eggs & Milk (Rs. 103.06Crores/ 14.79 USD Millions)

COLD CHAIN WAREHOUSING

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 Cold storages are located in and around potato growing areas. 61% of the cold storage
capacity is concentrated in the states of West Bengal, Uttar Pradesh and Bihar, wherein
storage of potatoes accounts for 75-80% of the capacity.

 Storage units in Maharashtra, parts of Gujarat and the country’s southern states are
designed for storing commodities such as dairy products, fruits, processed fish and meat
products, and seasonal vegetables. 

 36% of the cold storages in India are believed to have a capacity below 1,000 MT. Thus,
lack of proper and adequate food storage, processing and cold chain logistics remains a
serious challenge.

 India cold chain market is unorganized and dominated by traditional cold storage
facilities which are majorly dedicated to the storage of potatoes. The cold storage
capacity has grown 1.2 times during 2012 to 2017.

MY PERSPECTIVE

Indian cold chain is still at a developing stage. Although, there is large production of
perishables but still the cold chain potential remains untapped due to multiple reasons like
high share of single commodity cold storage; high initial investment (for refrigerator units
and land); lack of Basic Enabling Infrastructure (roads, water supply, power supply, drainage,
etc.); lack of awareness for handling perishable produce and service either by the storage
provider or the transporter leading to poor quality produce. However, the increasing
urbanization and growth of organized retail, food servicing and food processing sectors are
boosting the growth of the cold chain industry in India. The trend is now shifting towards
establishing multipurpose cold storages and providing end to end services to control
parameters throughout the value chain.

SOME MAJOR PLAYERS OF THIS SECTOR ARE:

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1. Gati Kausar India Pvt Ltd

2. Snowman Logistics Pvt Ltd
3. ColdEx Logistics Pvt Ltd
4. Stellar Value Chain Solutions Pvt Ltd
5. Future Supply Chain Solutions

FUTURE OF COLD CHAIN IN INDIA

• India cold chain logistics market is anticipated to register growth of more than 16%
during 2019 - 2024, owing to growing processed food and healthcare industry.

• Increasing cross-border trade and growing organized retail industry is driving the
Indian cold chain logistics market. 

• India cold chain logistics market has been categorized into temperature-controlled

storage and temperature-controlled transportation.

• Temperature-controlled storage segment is accounted for the majority market

share.

• Global shift toward India in an environment of anti-Chinese, a substantial growth in

the processed and value-added products. key sectors such as frozen food and ready-
to-eat segment, India has a large untapped potential.

• The industry has been growing significantly owing to the increasing

government initiatives, rising need for the cold chain facilities, increasing private
sector investments of both domestic and foreign players, etc.

AGRICULTURE SECTOR

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Agriculture is the primary source of livelihood for about 58 per cent of India’s
population. The Indian food industry is poised for huge growth, increasing its
contribution to world food trade every year has immense potential for value
addition. Gross Value Added by agriculture, forestry and fishing is estimated at
Rs 18.55 lakh crore (US$ 265.51 billion) in FY19(PE)

CHALLENGES FACED BY AGRI-LOGISTICS:

• Inefficient price signals: The government has been buying almost one-third of all rice and
wheat produced in India through the PDS system, so role of the government is limited. 

• Limited reach of mandis: Also, this procurement system has failed to cover the entire
country evenly.

• Too many intermediaries: The above mentioned problems have led to formation of long
marketing channels, with multiple intermediaries

• Inadequate infrastructure for storage: The Planning Commission has recently estimated
the gap between agro-warehousing supply and demand at 35 mn MT.

• Lack of cold storage infrastructure: India’s current cold storage capacity at 25 MT is

barely sufficient for country.

WHAT
IS
AGRO-FOOD SUPPLY CHAIN?

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Agro-food supply chain covers the entire chain of activities from production on
the farm to retailing to the consumer. Two main types of agri-food supply
chains, named:

• Agro-food chains for fresh agricultural products,

• Processed food products.

The main processes are the handling, conditioned storing, packing,

transportation and especially trading of these goods. These chains may
comprise growers, auctions, wholesalers, importers and exporters, retailers
and speciality shops and their input and service suppliers.

HORTICULTURE SECTOR
• Horticulture contributes about 30% of India's agricultural GDP from 13.08% of the
cropped area and accounts for 37% of the total exports of agricultural commodities.

• Due to the increased investment and focussed attention, there has been a spectacular
change in the production and productivity.

• GOI is aware that the horticulture sector is connected with generating direct
employment.

• The horticulture sector is also faced with frequent and sharp price fluctuations, poor
quality and consistency, issues in harvest/post-harvest handling leading to a lengthy
food chain.

• Supply constraints, yield gaps and logistics costs affect the country's competitive and
comparative advantage in this sector

HORTICULTURE SUPPLY CHAINS

Building agro-supply chains in developing countries and organisations that dynamically
respondent to changes of consumer demands, maintaining safety and quality, and

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increasing the velocity of products through the distribution channels by efficient logistics
management.

• The emergence of supermarkets has led to the changes in the retailing model of fresh
produce and the management of the supply chain.

•  India needs to develop possible designs for structured sustainable supply chains which
will bring in more efficiency, equity and minimise wastage.

• In developing countries, supply chain management is becoming increasingly important

because the leading national and international supermarket companies are conforming
to global standards of food safety and health.

EXPORT OF CEREALS AND DAIRY PRODUCTS

• India is largest exporter of cereal products in the world. India's export of cereals stood at
Rs. 56,841.08 crore / 8,180.87 USD Millions during the year 2018-19. Rice (including
Basmati and Non-Basmati) occupy the major share in India's total cereals export with
95.7% during the same period.

• India now has indisputably the world's biggest dairy industry—in terms of milk
production; last year India produced close to 146.31 million tonnes of milk, 50% more
than the US and three times as much as the much-heralded new growth champ, China. 
India's Export of Dairy products was 1,13,721.70 MT to the world for the worth of Rs.
2422.85 Crores/ 345.71 USD Millions during the year 2018-19.

DAIRY FARMING IN INDIA

• Milk is transported in milk cans. Generally, milk from small-scale milk producers is
transported in milk cans by the producers themselves or by milk collectors .Milk
collectors usually collect milk cans from several producers and then transport them
to local/urban markets.

• The costs of milk collection and transport represent a significant share – often more
than 30 Per cent – of milk processing costs.

• Time, temperature, humidity, cost, distance, demand, forecasting, and packaging are
all important considerations in developing a dairy supply chain.

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BASAMATI RICE

The country has exported 44,14,562.21 MT of Basmati Rice to the world for the worth of Rs.
32,804.19 crores (or 4,722.46 US$ Mill.) during the year 2018-19.

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Types OF basmati rice

1.74
3.31

4.01

5.05

Parboiled rice
36.48 Pusa rice Brown rice
steamed rice Sella rice

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NON-BASMATI RICE

Any rice other than Basmati Rice is named as Non- Basmati rice. In the world it
has been reported that there are 10000 varieties of rice and out of which the
maximum number are in India. The country has exported 75,99,552.15 MT of
Non-Basmati Rice to the world for the worth of Rs. 21,184.85 crores / 3,047.78
USD Millions during the year 2018-19.

Non-Basmati
1.01 rice
1.47

2.18

12.99
5.27

Sona masoori rice Swarna rice

Sella rice Broken rice

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GREEN AGRO-SUPPLY CHAIN

• First, the Green Supply Chains or Logistics pillar aims to enable developing
countries to address local environmental impacts caused by the transport
of goods and adapting less carbon-intensive value chains.

• Second, the agro-logistics pillar aims to assist developing countries to

strengthen food security and improve the competitiveness of agricultural
exports through sustainable reduction in logistics costs as well as food
losses.

• Solar-powered mobile Transport Refrigeration Units and Cold Storage

Facilities, dry-bulk storage solutions (packaging) geared for emerging
economies are some example of green agro-supply chain

AGRI-WAREHOUSING IN INDIA

Underground Storage Structures

Underground storage structures are dugout structures in ground. Underground

storage structures are safer from threats from various external sources of
damage, such as theft, rain or wind. The underground storage structures are
easier to fill up owing to the factor of gravity.

Surface storage structures

Food grains in a ground surface structure can be stored in two ways - bag
storage or bulk storage.

• Bag storage: each bag contains a definite quantity, which can be bought,
sold or dispatched without difficulty; bags are easier to load or unload.

• bulk storage: the danger of damage from external sources is reduced;

and

Pest infestation is less because of almost airtight conditions in the deeper

layers.

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SMALL-SCALE STORAGE
• PAU bin:

This is a galvanized metal iron structure. It s capacity ranges from 1.5 to 15 quintals

• Pusa bin:

This is a storage structure is made of mud or bricks with a polythene film embedded
within the walls.

• Hapur Tekka:

It is a cylindrical rubberized cloth structure supported by bamboo poles on a metal tube

base, and has a small hole in the bottom through which grain can be removed.

LARGE SCALE STORAGE

• CAP Storage (Cover and Plinth)

It involves the construction of brick pillars to a height of 14" from the ground, with grooves
into which wooden crates are fixed for the stacking of bags of foodgrains. The structure can
be fabricated in less than 3 weeks. It is an economical way of storage on a large scale.

• Silos

In these structures, the grains in bulk are unloaded on the conveyor belts and, through
mechanical operations, are carried to the storage structure. The storage capacity of each of
these silos is around 25,000 tonnes.

MY PERSPECTIVE
Indian agriculture logistics is still at a developing stage. Although, there is large production
of agro- products but still the wastage is way more than the consumption, lack of Basic
Enabling Infrastructure (roads, water supply, power supply, drainage, etc.); lack of storage
provider or the transporter is leading to poor quality produce. However, the increasing
awareness among farmers and steps being taken by government is increasing the potential
of agriculture. Not to forget being largest exporter of agricultural products. Need of hour is
efficient logistic chain and storage infrastructure to prevent spoilage of food. India my
country is bestowed with high potential of agriculture which will seamless flourish in future.

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Organic farming
Organic farming is a system that avoids or excludes use of synthetic inputs like pesticides,
fertilizers, hormones, etc. and relying on techniques like crop rotation, organic wastes, farm
manure, rock additives and crop residues for plant protection and nutrient utilization.

Some of the salient features of organic farming include:

Protecting soil fertility

• Maintaining the level of organic matter

• Encouraging biological activity in soils

• Providing nutrients through the microbial action

• Using legumes to fulfil the nitrogen requirements of the soil.

• Recycling organic matter like crop residues and manures

• Managing diseases, pests and weeds through the use of techniques like natural
predators, organic manuring, crop rotation, maintaining diversity, growing resistant
varieties, etc.

The total volume of export during 2017-18 was 4.58 lakh MT. The organic food export
realization was around INR 3453.48 crore (515.44 million USD).The Government of India has
implemented the National Programme for Organic Production (NPOP). In 2018, total area
under organic certification process (registered under National Programme for Organic
Production) is 3.56 million Hectare (2017-18).

India produced around organic products which includes all varieties of food products
namely:

• Oil Seeds, Sugar cane, Cereals & Millets, Cotton, Pulses, Medicinal Plants, Tea, Fruits,
Spices, Dry Fruits, Vegetables, Coffee etc.

• The production is not limited to the edible sector but also produces organic cotton fibre,
functional food products etc.

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DANGEROUS GOODS AND ITS LOGISTICS

A dangerous good (also known as hazardous material or hazmat) is any substance or

material that is capable of posing an unreasonable risk to health, safety, and property when
transported in commerce. Identifying dangerous goods is the first step to reduce the risks
posed by the product with proper packaging, communication, handling, and storage.

MARKET OVERVIEW
• The hazardous goods logistics market is estimated to witness steady growth over the
period.

• Hazardous materials make up a significant portion of the global freight, because they
include many widely used commodities and products.

• Gasoline and other petroleum products are estimated to account for a significant share.
There are specialized safety regulations, standards, and reporting systems in place for
pipelines, rail, highway, air, and marine vehicles that transport hazardous materials.

• Concerning dangerous goods logistics, some policies and standards are set into place.
International organizations, domestic institutions for the management of dangerous
goods logistics. Packaging plays a crucial role in the transportation of dangerous goods.
In the case of air shipping of HAZMAT, aviation safety is dependent on correct
packaging.

• The development of the dangerous goods logistics market is also mainly due to the rapid
development of the petrochemical industry. The growth in the petrochemical industry is
robust, owing to the increasing product application in the major end-user industries.

• The hazardous goods logistics market is fairly fragmented in nature, with the presence of
large global players and small- and medium-sized local players.

• Most of the global logistics players have a dangerous/hazardous goods logistics division
to meet the market needs and demand. Additionally, local players are increasingly
enhancing their capabilities, in terms of inventory handling, service offerings, products
handled, and technology.

• With the increasingly strict control of dangerous goods logistics, a large number of
freight forwarding companies with insufficient professional capabilities and insufficient
comprehensive resources are gradually eliminated by the market and fewer freight
forwarding companies that can provide professional dangerous goods logistics full chain
services independently.

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MODES OF TRANSPORTATION FOR HAZARD GOODS

MARITIME TRANSPORTATION

IMDG Code (International Maritime Dangerous Goods) is a code adopted by the Maritime Safety
Committee of the International Maritime Organization for the carriage of Dangerous Goods
(Hazardous Cargo).They are divided into 9 classes. Some substances in the various classes have also
been identified as substances harmful to the marine environment (MARINE POLLUTANTS).Marine
Pollutants, or Environmentally Hazardous Substances, are materials that pose a risk to the aquatic
environment and its ecosystems, such as marine mammals, fish, crustaceans and algae.

AIR CARGO

The IATA Dangerous Goods Regulations (DGR) manual is the global reference for shipping
dangerous goods by air and the only standard recognized by airlines. ICAO , The Safe
Transport of Dangerous Goods by Air, deals with all aspects of the subject. In general, it sets
down the broad general principles which determine whether items are acceptable for
carriage by air. 

Packaging Regulations

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As per TDGR, shipping of some dangerous goods above certain specified quantities, is
prohibited in the absence of a developed Emergency Response Assistance Plan (ERAP).

Means of transport determines the packaging that is required for shipment to be in

compliance with TDGR. Packages shipped exclusively via terrestrial means must meet the
packaging instructions as stated in the TDG Clear Language Regulation “Small containers for
Transport of Dangerous Goods, Classes 3, 4, 5, 6.1, 8, and 9.”

If transporting by air, the packaging must meet International Air Transport Association
(IATA) requirements which can be purchased from IATA.

If transporting via marine means, if solely domestic, the TDGR is for shipping and receiving
dangerous goods. On the other hand, if the package it to be shipped internationally, the
International Maritime Dangerous Goods (IMDG) code must also followed.

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RAILWAY SECTOR

RAIL FREIGHT TRANSPORT

A freight train transports cargo between the shipper and the intended
destination as part of the logistics chain. Trains may haul bulk
material, intermodal containers, general freight or specialized freight.

Maximum economies are typically realized with bulk commodities (e.g., coal).

Moving goods by rail often involves transhipment costs, particularly when the
shipper or receiver lack direct rail access.

BENEFITS OF RAIL FREIGHT TRANSPORT

• Rail transport offers plenty of benefits, one being lower greenhouse gas
emissions as a result of traffic reduction and road congestion.

• This is also a cost-effective solution to ship goods over long distances,

especially distances over 800 km.

• The fact that extra cars can be added to existing trains means that large
quantities can be shipped at considerably lower costs.

• Rail transport is also more affordable than transport by truck because toll
fees are often paid during transit.

• In addition, trucks require regular maintenance to ensure safety, and the

costs are paid by the shipping companies.

• Reliable schedules and transit times are added benefits. To this, rail freight
transport is also a safe mode of transportation given the fact that trains
have a good safety record.

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THREE MAJOR TYPES OF RAIL CARGO

The main types of cargo that are shipped by rail freight transport include hazardous
materials, special cargo, and consumer goods.

• Special cargo includes steel pallets, automobiles, oversized cargo, and products for
which certain temperatures must be maintained. Closed and open auto racks are used
to ship vehicles while coil cars are usually used to transport steel pallets. Goods that
require refrigeration are usually shipped in refrigerator cars.

• Many consumer products are shipped in containers but this depends on the type of
cargo. Consumer products include items such as insect repellents, hand sanitizers,
vegetables and fruits, nuts, textile industry products, etc.

• Hazardous materials are also transported by rail, for example, liquefied petroleum gas.
Given the fact that hazardous and dangerous materials pose safety and health risks, they
are subject to safety controls and can be shipped in mixed and single freight loads.

ADVANTAGES
STANDARDIZATIO ISO standard. Unique identification code and size type code
N
FLEXIBILITY Commodities manufactured, liquid, refrigerated goods
COST Low transport cost
VELOCITY Fast transhipment operation
WAREHOUSING Own warehouse; simpler, less expensive packaging. Stacking capability
SECURITY Contents unknown to carriers, reduced spoilage and losses

DISADVANTAGE
S
SITE CONSTRAINTS Large consumption of terminal space
CAPITAL Container handling and infrastructure demand higher investment
INTENSIVENESS
STACKING Compexity of arrangement of containers, both on ground and modes
REPOSTIONING Divergence btw production and consumption
THEFT AND LOSS High valuable goods become vulnerable
ILLICIT TRADE Drugs, weapons as well as illegal immigration

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Containerization
• Containerization is a system of intermodal freight transport using intermodal
containers (also called shipping containers and ISO containers).

• The containers have standardized dimensions, they can be loaded and unloaded,

stacked, transported efficiently over long distances, and transferred from one mode of
transport to another—container ships, rail transport flatcars, and semi-trailer trucks—
without being opened.

• The handling system is completely mechanized so that all handling is done with
cranes and special forklift trucks.

• All containers are numbered and tracked using computerized systems.

Different Types of Shipping Containers

1. Dry storage container

This is the most commonly used type of shipping containers. While sizes vary such as the
20ft, 40 ft and 10ft, unit variations can exist within each type of size category.

2.  Refrigerated ISO containers

These containers are specially built with temperature regulated environment to carefully
control interior temperature. Such type of containers are exclusively used to ship
perishable materials such as fruits and vegetables over long distances.

3. Special purpose containers

Not the ordinary containers, these are the container units, custom made for specialized
purposes. Mostly, they are used for high profile services like shipment of weapons and
arsenal . But in most cases, security remains the top priority.

4. Insulated or thermal containers

These are the shipping storage containers that come with a regulated
temperature control allowing them to maintain a higher temperature. They are most
suitable for long distance transportation of products.

5. Tanks
Container storage units used mostly for transportation of liquid materials, they are used
by a huge proportion of entire shipping industry. They are mostly made of strong steel

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or other anti corrosive materials providing them with long life and protection to the
materials.

MEASUREMENT OF CONTAINERS

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RAIL CONNECTIVITY TO PORTS

• In the case of non-major ports, a few like Pipavav, Dahej, Mundra, Dhamra and
Krishnapatnam have adequate first mile connectivity.

• Some ports, such as Dhamra and Mundra, have constructed railway lines at their own
cost.

• Projects being financed by the Ministry of Shipping (MoS). These projects focus mainly
on improving rail infrastructure within a port.

• Indian Port Rail Corporation Limited (IPRCL), with major ports and RVNL as equity
partners, for undertaking port connectivity projects. The key objectives in setting up
IPRCL are to provide efficient rail evacuation systems and to undertake projects
providing last mile connectivity to major ports.

INLAND WATERWAY IN INDIA

Inland waterways gaining popularity as shippers as road freight is reason of long delays due
inadequate road infrastructure which often leads to delay in services. inland waterways is a
way shipping logistics in which river , canals, inland water bodies are used for transportation
of cargo. Considering facts India has 14,500 km outstretch of navigable waterways. IWAI
(Indian waterways authority of India is established to look after the functioning, surveying
the process, economic factors, and projects to take up. Considering facts India’s coastal lines
are not being optimize used , despite being blessed with vast coastline and river network.
 Using inland transportation for transportation of containerized cargo has advantages like:
a) It reduces handling costs
b) Reduced damages of goods
 Urban cities are facing a lot of traffic , congestion due to ineffective road infrastructure,
as well as road transportation are one of the main reasons of deteoroiting environmental
conditions, inland waterways transportation is a cost effective, fuel efficient, environment
friendly method of transportation
 It is being used on the coastal areas of Assam, Kerala, Goa, Andhra Pradesh this is good
transportation method

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 This would eventually help in declining the congestion of cargo traffic on the rail and rad
transportation.
 We can also say, waterways will provide comparatively shorter routes or less distance for
transportation process which will eventually add to saving time, and reduction of trip
costs per roundabout.
 The maintenance cost of this transportation is comparatively very low as compared,
especially if India is able to adapt electric motor boats which are less maintaince and
cheaper as well. But this requires initial investment in energy sectors or green logistics in
country.

DOUBLE DECKER CONTAINER TRAINS

• The Double Stacked Container is 6 feet 4 inches in height and can run on electrified
tracks. Despite being smaller in size, the dwarf containers can hold a capacity of 30,500
kgs.

• In comparison with regular containers, these containers are 662 mm short but 162 mm
wider.

• The dwarf containers can hold a volume of approximately 67% more when compared to
traditional containers.

• Presently, due to its height, the regular double stack ISO containers can run only on few
chosen routes on Indian Railways but these Double Containers can run on most tracks
very easily.

• These containers in double stack formation can run under 25kV overhead lines. With the
use of these double-stack dwarf containers, the cost of the unit will be significantly
reduced due to the rail transport being cheaper than the road.

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Rail Transhipment Hub

• CONCOR developing Rail Transhipment Hubs for re-aggregation of containers dispatched

from Ports and Dry Ports

• Thereby decongesting the three main western Gateway ports – particularly JNPT

• And making services cheaper and quicker for the Customer.

• In DFC system trains carrying capacity to quadruple and costs to come down (400 TEUs
per train

• But Aggregation of single origin-destination will become time consuming

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DEDICATED FREIGHT CORRIDOR PROJECT

• The Ministry of Railways, under the direction of the Indian Government, had taken up
the dedicated freight corridor (DFC) project. The project involves the construction of six
freight corridors traversing the entire country.

• The Indian Railways' quadrilateral linking the four metropolitan cities of Delhi, Mumbai,
Chennai and Howrah, commonly known as the Golden Quadrilateral; and its two
diagonals (Delhi-Chennai and Mumbai-Howrah).

• The surging power needs requiring heavy coal movement, booming infrastructure
construction and growing international trade led to the conception of the Dedicated
Freight Corridors along the Eastern and Western Routes.

• Recently, three new corridors namely East West, East Coast and North South sub
corridor sanctioned .

• A total of 211 bridges were completed and 145 are in progress as of the end of
November 2019. In addition, 271 RUBs were commissioned out of 562 and 259 were in
progress. Out of 296, 67 ROBs have been completed and 138 are in progress.

INLAND CONTAINER DEPORT ICD’s

• A dry port is generally a rail terminal situated in an inland location with rail connections
to one or more container seaports. Container freight trains run excursions between the
seaports and the dry port, on a service timetable that is integrated with the schedules of
the container ships arriving at the seaport.

• The road and rail links are often too congested and inadequate to deal with the traffic
from the port. This problem can be eased by a dry port consisting of rail and multi-modal
terminals situated inland from the seaport

• The infrastructure available at the dry port is similar to that of a seaport in terms of the
logistics and the facilities for importers and exporters. The dry port is equipped to
handle cargo and transfer freight to warehouses or open storage.

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Pandemic taking a hit on shipping logistics

• Coronavirus pandemic taking a toll on shipping companies. The global trade is at risk and
supply chain has come to almost standstill.

• While confinement and border closings have caused major uproar for global shipping
logistics. Companies are struggling with extensive shortage of workforce, due to labours
on flee to their hometowns, delayed industrial production causing visible effects on
export sector.

• With, vessels standing on shore for weeks under quarantine. Shipping containers are
stuck at ports and on transit at state borders. Raw material isn’t reaching ports on time
due to lockdowns.

• Moreover, demand has drastically declined for most commodities excluding

pharmaceuticals, medical supplies which are being demanded in bulk.

• The global supply chain was bound to see visible growth to reach almost $24 billion by in
[Link], due to Pandemic average growth rate will decline, longer it would take
to reach the target. However, top companies like Maersk, CMA CGM etc are battling in
the front end, to keep supply chain open and maritime transport trade and transport
moving, for efficient supplies of commodities.

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CONCLUSION

The Indian logistics sector continues to evolve, improve with the changing business
environment. In developing countries, logistics costs are estimated to be higher at around
15% to 25% of the final cost of the product due to lack of adequate logistics system. In India,
logistics cost is around 13%, comparatively higher than the developed & other developing
countries, which is a good figure and it promises much growth and flourish opportunities in
India.

Staying competitive we need efforts from all the ends, form of end of both government &
private sectors. With spending on infrastructure in this industry it will surely transform. Also
with the use of technology and many tech based companies transport industry integration
the industry would benefit a lot in long run.

Freight forwarders, as “logistics service providers,” play an important role in supply chain ,
as an increasing number of firms outsourcing their logistics function. These third party
logistics providers are now becoming more involved in the management, and control of
firms' supply chains. This will be creating a pool of employment opportunities in near future.

In conclusion, it is safe to say that the intricacies of logistics businesses in India are subject
to external and internal challenges. By careful management, planning and realistic goal-
setting, they can be overcome to be able to thrive, succeed and compete in the Indian
economy with the international counterparts.

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BIBLOGRAPHY

ENERGY SECTOR

[Link]/diplomacy/trade-india-latin-America
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PERISHABLE/ COLD CHAIN LOGISTICS

[Link]
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AGRICULTURE SECTOR

[Link]
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[Link]#:~:text=CUP%20brand%20is%20the%20most,million%20from%20exports
%20during%202017.&text=As%20per%20seeds%20act%201966,ranbir%20basmati%2C%20pusa
%20basmati%20etc.
[Link]
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[Link]/dairy-production-products/processing/collection-and-transport/en/#:~:text=Milk%20can
%20be%20transported%20in,(informal%20traders%20and%20intermediaries).
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%[Link]#:~:text=To%20run%20warehouses%20for%20the,co%2Doperatives%20and
%20other%20institutions%2C&text=for%20the%20purchase%2C%20sale%2C%20storage,the
%20transport%20of%20above%20commodities.

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DANGEROUS GOODS

[Link]/__shared/assets/Packing___Labeling_Dangerous_Goods_for_Transport39712.pdf
[Link]
[Link]
[Link]
92-consignment-and-carriage-dangerous-goods
[Link]

RAILWAY FREIGHT LOGISTICS

[Link]
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%20ports%20have%20double,have%20adequate%20first%20mile%20connectivity.
[Link]
service_20190212.html
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[Link]
%3D+280+trucks&source=bl&ots=-_f0B3XMzf&sig=ACfU3U0r-
qoa3JH228cErS8wYoeBiGmicg&hl=en&sa=X&ved=2ahUKEwiWgtXNo5XqAhWJcn0KHYEjAl0Q6AEwD
HoECAEQAQ#v=onepage&q=1%20container%20train%20%3D%20280%20trucks&f=false
[Link]
nternational_Rail_Cargo_Transportation%20(1).pdf

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