Tag: Asia

India primed for 3PL boom

Posted by | Mar 5, 2007 | |

India’s economy is growing, and the logistics industry is growing along with it. A new study predicts that the nation’s logistics market is expanding at a double-digit rate and will total USD125 billion by 2010.

The report by a London market analysis firm said the growth would be driven by India’s economic strength and efforts to improve its transportation and port infrastructure. The country’s gross domestic product is growing at more than 9 percent a year, and its manufacturing industries are growing at double-digit rates, the report said.

India’s logistics market currently generates an estimated USD50 billion to USD90 billion in annual revenue, but third-party logistics providers have only a small share of that market. Craig Grossgart, India manager for DHL Express, said the 3PL market in India is only about USD500 million annually. In comparison, the total 3PL market in the U.S. is about USD104 billion, according to Armstrong & Associates. A&A also puts 3PL business from global Fortune 500 companies at USD158.1 billion for 2005.

India’s 3PL market is expected to grow rapidly during the next several years. Besides economic expansion and infrastructure development, reasons include the recent repeal of the sales tax system and the increasing sophistication and reliability of logistics and e-commerce software.

India’s underdeveloped and fragmented trade and transportation infrastructure inflates the nation’s logistics costs, which are more than 13 percent of GDP, compared with less than 10 percent in nearly all of western Europe and North America.

India’s 3PL market “is still at a nascent stage” but is growing by 18 percent a year, Grossgart said. “Clearly, the Indian industry has realized the need for the services of third-party logistics, and efforts are being made in that direction.”

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Interview – FedEx eyes booming Middle East-India trade

Posted by | Mar 2, 2007 | |

FedEx is seeking to take advantage of the fast growth in trade between India and the Middle East with its direct flights between the two regions, a senior manager told CEP-Research in an interview.

The US integrator expanded its Middle East capacity in autumn 2005 by upgrading weekday flights from its European air hub in Paris to the Middle East hub at Dubai with an MD-11 freighter. It also started its own flights from Dubai to India in place of using commercial capacity. FedEx now has a daily eastbound and westbound service using MD-11 flights that operate from Paris via Dubai to Delhi and Mumbai, and return via Dubai to Paris.

“The MD-11 flights open up the market with large capacity,” said Brian Britnor, senior manager sales, Middle East & Africa, on the sidelines of this week’s World Mail & Express Logistics Middle East, Africa & South Asia conference in Dubai. Trade between India and Dubai, which has a large Indian business community, has more than quadrupled since 2002 to reach $10.9 billion in 2006, according to official statistics from Dubai released at the end of February.

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FedEx completes acquisition of Chinese firm

Posted by | Mar 2, 2007 | |

FedEx has completed the purchase of Tianjin Datian W. Group Company’s 50% share of the FedEx-DTW International Priority express joint venture and DTW Group’s domestic express network in China for approximately USD400 million in cash.

“China continues to be one of the fastest growing markets in the express industry and a key to FedEx international growth and profitability,” said Michael L. Ducker, president, FedEx Express International.

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Nishikawa to head Japan Post toward privatization

Posted by | Feb 28, 2007 | |

Yoshifumi Nishikawa, president of a firm preparing for October’s privatization of Japan Post, will be named to concurrently head Japan Post from the end of March, informed sources said Wednesday.

The appointment by the government will come as the term for current Japan Post President Masaharu Ikuta expires March 31, they said.

Nishikawa’s firm, Japan Post Corp., is set to become a holding company to own firms emerging on the privatization and breakup of the Japanese postal system.

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Postal employees oppose privatisation move

Posted by | Feb 27, 2007 | |

Postal employees at the three-day biennial divisional conference of the National Federation of Postal Employees that was inaugurated in the city on Sunday vowed to oppose any attempt to privatise postal department.
They took out a rally in the city that concluded at their conference site shouting slogans against attempts to privatise postal sector in the name of reforms. This conference was inaugurated by vice president of CITU Janardan Pati.

The problem of Gramin Dak Sevaks was also major point of discussion at the open session of the conference. Employees demanded provision of proper status and pension to the GDS, who are lifeline of the postal network. The employees are also opposed to any attempt by the Government to reduce the staff strength and want all vacant posts to be filled as early as possible. It was a common opinion that the postal department should have monopoly over collection, conveyance and delivery of letters and mail as recommended by the parliamentary standing committee.

National leader of postal employees K.Raghavendra, who attended this conference, said political parties like Congress and BJP were not interested in solving the problems of postal employees. According to him postal employees were planning to hold national strike if the Government continues on the path of privatisation of postal sector.

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