Explore Crisil, a company of S&P GlobalFormerly known as Market Intelligence & Analytics
Formerly known as Market Intelligence & Analytics
Logistics
An efficient and cost-effective logistics framework is the indispensable link in India’s economy. It ensures seamless movement of raw materials and finished products and facilitates transactions between the consuming and producing sectors, thus driving economic growth.
Logistics encompasses diverse modes of transportation, supporting infrastructure and related services, all of which enhance the competitiveness and integrity of the supply chain.
The logistics sector includes several key segments, including road transport, rail transport, warehousing, cold chain, logistics and rail freight terminals. A slew of factors has spurred significant market growth, underpinned by the need for efficient transportation and storage solutions.
Road transport: Road transport is expected to continue contributing to India’s growth, reflecting its importance in the logistics market and the increasing demand for efficient and flexible transportation solutions.
Rail-linked sectors: Rail transport has outperformed other sectors. The modal share of rail transport is expected to increase, with container train operators (CTOs) and rail freight terminals projected to grow substantially. Higher exports from the hinterland and increased haulage through rail have contributed to the improved performance of CTOs and inland container depots (ICDs). Enhanced haulage capabilities have also boosted the penetration of rail-linked private terminals.
Warehousing and third-party logistics (3PL): Warehousing and 3PL services, along with container freight stations (CFSs)/ICDs, are expected to grow at a moderate pace. These segments provide essential storage and distribution services, thus playing a crucial role in supporting logistics infrastructure.
National Logistics Policy and rail infrastructure development aim to reduce costs and enhance efficiency
The National Logistics Policy (NLP), launched in September 2022, aims to reduce logistics costs and improve India's Logistics Performance Index (LPI) ranking to within the top 25 by 2030.
Key initiatives supporting these goals include the Comprehensive Logistics Action Plan (CLAP), which features the United Logistics Interface Platform (ULIP) for data integration and the Ease of Logistics Services (E-LogS) platform for grievance redressal.
The policy emphasises optimising the modal mix, particularly increasing the share of rail transport. India has already improved its LPI ranking from 44 in 2018 to 38 in 2023 on the back of these interventions.
The National Rail Policy or National Rail Plan 2030 aims to develop a future-ready railway system by 2030, enhancing operational capacities and implementing commercial policy measures to boost rail share in freight transport to 45%.
The Gati Shakti Scheme, unveiled in October 2021, aims to reduce logistics costs by coordinating infrastructure creation across government entities. The PM Gati Shakti National Master Plan has integrated data from 44 central ministries and 36 states/union territories, planning significant improvements in road and railway infrastructure.
Additionally, the Bharatmala Pariyojana and Sagarmala initiatives focus on enhancing road and port infrastructure, respectively, to support economic growth and reduce logistics costs.
The services we offer
We offer end-to-end advisory solutions across the entire logistics asset lifecycle - from pre-acquisition due diligence to post-acquisition performance monitoring and exit strategies.
Our expertise spans traffic and revenue (T&R) assessment, technical due diligence, contract benchmarking and project audits driven by artificial intelligence and machine learning, thus ensuring optimal investment decisions and asset performance.
We provide specialised services across key engagement areas to support infrastructure investors, developers and operators.
Impact Cases
Market assessment of the Indian freight railcar market for a multilateral exploring lending opportunity
A prominent multilateral agency sought to gain a comprehensive understanding of the Indian freight railcar market to inform its strategic decisions. We conducted an in-depth market assessment and valuation of the Indian freight railcar market. The objective was to analyse market dynamics, evaluate the business model and provide a fair market valuation of the railcars.
The project aimed to analyse the size, dynamics and developments in the Indian rail freight market, focusing on the cargo transported in the types of railcars the client owned and planned to acquire. It also evaluated the supply and demand balance for the relevant railcar types, analysed the regulatory environment, and reviewed the market liberalisation and growth outlook for private railcar ownership and leasing in India.
Our in-depth analysis was based on data from reliable industry sources and engagement with key stakeholders. The assessment provided valuable insights into the market dynamics, regulatory environment and competitive landscape. The fair market valuation was conducted using robust methodologies, ensuring accurate and reliable results.
Competitive landscape study for a leading logistics company
A leading logistics company engaged us to conduct a comprehensive competitive landscape study. The objective was to understand the competitive environment, identify strengths and weaknesses, and develop strategic recommendations to enhance the company's market position.
This involved scanning the competition landscape, assessing competitor infrastructure and comparing organisational structures. We also evaluated pricing and service offerings, understood customer preferences, and analysed customer service and experience. Additionally, we conducted a SWOT analysis of the competitive landscape and provided strategic recommendations to enhance the company's market position.
The study included a 360-degree analysis of industry consolidation, comparing it with the logistics company's alliances and evaluating its positioning from a customer perspective. We explored the operating models of wholesalers in the express business. We also offered a historical analysis and outlook on express imports, evaluating airport-level shipments and key lanes for air imports, and identified the key industries contributing to shipments.
Comprehensive logistics assessment for a leading infrastructure company
A leading private sector infrastructure company in India, operating several environment-friendly seaports and terminals, sought to diversify its portfolio by investing in end-to-end logistics solutions. The company aimed to conduct a pan-India assessment to identify attractive locations for multi-modal logistics parks (MMLPs), ICDs, CFSs, free trade warehousing zones (FTWZs) and warehousing facilities. The initial phase focused on the National Capital Region and central and western regions.
We conducted a thorough analysis, leveraging first-hand discussions and interviews with key stakeholders, including shipping lines, non-vessel operating common carriers, customers, customs house agents and brokers. Based on the assessment, we identified the preferred locations for ICDs, CFSs, MMLPs, warehousing and FTWZs.
The assessment enabled the client to make informed decisions about strategic investments in logistics infrastructure. By identifying key locations and understanding the competitive landscape, the client is optimally positioned to enhance its logistics capabilities and support growth objectives.
Comprehensive study on the role of coastal shipping in vehicle scrapping
A leading government entity sought to explore the potential of coastal shipping in the vehicle scrapping industry. The objective was to develop a comprehensive understanding of how to leverage coastal shipping to enhance the efficiency and environmental sustainability of vehicle scrapping operations.
We provided actionable insights gleaned through a thorough analysis. Our study offered comprehensive information about the potential of coastal shipping in vehicle scrapping, including detailed cargo projections, infrastructure assessment and strategic recommendations for implementation.
The study enabled the client to make informed decisions, enhancing the efficiency and sustainability of its vehicle scrapping operations.
