CARGOCONNECT-AUGUST2024 - Flipbook - Page 6
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In 2023-24, the air cargo handled
in the country was a little over
3.36 million tonnes. Capturing an
impressive 30.1% market share,
Adani Airport Holdings Ltd (AAHL)
facilitated a remarkable 10,13,115 metric
tonnes of cargo in FY 2023-24. This represents
a significant 7% YoY increase compared to the
previous fiscal, when the total cargo tonnage
was 9,44,912 metric tonnes. 65% of the cargo
managed by AAHL was international.
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The Eastern Railway has earned
its best-ever freight revenue of
`7,774.62 crore in the financial year
2023-24, an increase of 19.47% over
the previous fiscal. The Kolkataheadquartered zonal railway achieved a freight
loading of 86.87 metric tonnes in 2023-24,
which is 9% more than the previous fiscal.
India’s
merchandise
exports grew by
5.8% to reach
US$109.96
billion in June.
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The economic environment puts further
stress on demand and as an outcome,
global trade is expected to grow at
only half the average growth rate of
the previous decade between 2020-25.
Amidst this challenging environment, India has
found its glory moment. The fastest growing
economy in the world and now a favoured
destination for new manufacturing investments.
Japan, South Korea, and Europe
are seeking new supply lines in
the Asia-Pacific, providing another
opportunity for India’s growth in
global trade. Further, as businesses
increasingly adopt novel technologies such as
Gen AI for smart logistics and optimise supply
chain processes, India’s leading position in ‘AI
talent concentration’ on the Network Readiness
Index 2022 signifies the nation’s preparedness
for this transformative journey.
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There are many concurrent events
shaping the Indian opportunity.
Increased labour costs, geopolitical
tensions, and human rights
concerns prompting businesses
to decrease reliance on China as the world’s
factory. According to Kearney’s Reshoring Index,
Chinese goods constituted 50.7% of US imports
of manufactured goods from Asian countries in
2022, down from nearly 70% in 2013.
Rates to move a 40-foot container
from Shanghai to Rotterdam
jumped to more than US$7,300 in
the last week in June from a low
of US$1,010 in October, according
to Drewry data on Bloomberg. That’s still below
the average of almost US$10,000 during the
2021-2022 pandemic surge but enough to spark
inflation concerns.
6 | CARGOCONNECT AUGUST 2024
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Indian Railways have set a target to
be the world’s largest green railway
with zero carbon emissions by
2030. The Railways electrified 7,188
kilometres of rail network in 202324 alone. India is far ahead of the European
Union, the UK, and the US on rail electrification.
Indian Railways are 95% electrified, as
compared to 56% in the EU, 38% in the UK and
just 1% in the US. Switzerland, however, is
99% electrified.
L&T’s international orders have
been steadily increasing over the
last four years, with the portion
in its order book jumping from a
quarter in the fiscal year ending
March 2020 to 38% in March 2024. The bulk of
international orders are related to renewable
energy, urban infrastructure and oil and gas
projects in the Middle East, wherein Saudi
Arabia, United Arab Emirates, Qatar and Kuwait
are the biggest spenders.
While the government is unveiling
measures to improve highway
infrastructure such as plans to
build 1,000 truck pit stops in the
next few years and mandatory
AC cabins in trucks from end 2025, the dayto-day challenges that truckers face poses
a big demand supply crisis for the logistics
sector. The truck to driver ratio has fallen to an
abysmally low level of about 55:100 vis-à-vis
75:100 a few years ago.
