Thursday, May 7, 2015

India Beckons to Freight Forwarding and Shipping Groups Like John Good

Long Awaited Infrastructure Development Boost hope for Future Trade
Shipping News Feature

INDIA – UK – The subcontinent has often proved to be a place of broken dreams when it comes to the development of transport infrastructure. Time and again we have seen the signing of memoranda of intent, only to hear no more of projects which promised much but delivered little or nothing, often tinged with self-interest from local politicians. The fact is however that there can be no stopping a country with a fast growing population, and an economy to match, and one UK freight forwarding and shipping outfit means to establish more trade links in the region.

East Yorkshire headquartered John Good has a long history of trade with India and says the first quarter of 2015 has returned steady FCL and LCL liftings for the company, spurred by FCL rates fixed to the end of June. A weekly consolidation service continues to offer a regular and reliable route from Nhava Sheva to Felixstowe in co-operation with long standing partners, Interport Global Logistics and the introduction of Automated Status Notifications alongside the company’s Webtracker facility has assisted customers by providing timely and accurate updates for their shipments.

These developments are spurred on by India’s seemingly incessant growth, currently there is a population of over one million in fifty of the country’s cities, by 2030 it is estimated there will be sixty eight such places and, with GDP up from 6.9% in 2013/14 to 7.4% in 2014/15, the country is finally looking to make some promises come true with talk of $1 trillion investment in transport infrastructure by 2017. With 52,000 births as this is written today (against 19,000 deaths) the population is rising above 1.3 billion and projects such as the Delhi-Mumbai Industrial Corridor (DMIC) to ensure the country’s place as a global manufacturing and investment destination will be essential if India can compete in the trade race.

The DMIC is the largest infrastructure project in India’s history and is based on the high capacity, 1480 kilometre long, western Dedicated Railway Freight Corridor (DFC), managed by Indian Railways and part financed by Japan. New manufacturing cities, logistic hubs and residential townships along the DFC are planned to be developed to deliver infrastructure, public transport, power management and efficient water and waste systems. A total of twenty four manufacturing cities are envisaged in the plan of the DMIC project which local authorities say is expected to be completed by 2019.

The DMIC states, of which there are six, Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra, will contribute 43% of the country’s GDP and more than half of India’s Industrial production and exports. A further four such corridors have been identified across the country as India looks to continue its growth, with the government building a pentagon of corridors aiming to project the country as a Global Manufacturer for the world.

One must hope that, at last, India, long seen as a land of contrasts between abject poverty and boundless wealth, is moving toward a modern era where its industrious and lively people receive the sort of future which a state of such standing warrants, India is not cursed with the sort of human rights issue of other fast developing countries such as Myanmar.

New business is bound to develop in such a climate, whilst companies such as John Good are also looking to expand the market for their existing customers who already have a similar product profile, with such cargo as foodstuffs, textiles, automotive and agricultural products already using the forwarders established consolidation services to countries like Turkey and the Far East.