Unlocking India's Logistics Potential : The Value of Disaggregated Macroscopic Freight Flow Analysis

India is one of the fastest growing major economies. However, at 14 percent of gross domestic product, its logistics costs are high relative to the 8 to 10 percent that is typical of most advanced economies. High logistics costs and poor logistics...

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Main Authors: Aritua, Bernard, Havenga, Jan, Simpson, Zane, Chiew, Esther Woon Lyn
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
Online Access:http://documents.worldbank.org/curated/en/888791518530457570/Unlocking-Indias-logistics-potential-the-value-of-disaggregated-macroscopic-freight-flow-analysis
http://hdl.handle.net/10986/29371
id okr-10986-29371
recordtype oai_dc
spelling okr-10986-293712021-11-07T12:13:18Z Unlocking India's Logistics Potential : The Value of Disaggregated Macroscopic Freight Flow Analysis Aritua, Bernard Havenga, Jan Simpson, Zane Chiew, Esther Woon Lyn LOGISTICS TRANSPORT COMPETITIVENESS SPATIAL ECONOMICS FREIGHT FLOW INFRASTRUCTURE INVESTMENT DEMAND INPUT-OUTPUT MATRIX RAIL INLAND WATERWAYS HIGHWAYS PORTS PLANNING STORAGE DISTRIBUTION NETWORKS India is one of the fastest growing major economies. However, at 14 percent of gross domestic product, its logistics costs are high relative to the 8 to 10 percent that is typical of most advanced economies. High logistics costs and poor logistics performance impact the competitiveness of the economy on multiple levels: (1) firms deliver less competitive goods and services; (2) consumers pay more than peers for goods; and (3) the cost of achieving improvements in gross domestic product is excessive. The development of a national transport and logistics network to facilitate competitiveness and sustainable development and uplift rural regions will play an increasingly important role in shaping spatial organization in emerging economies. An element that is absent, yet critically important for national logistics issues in emerging economies, is sufficiently detailed freight-flow analysis to facilitate targeted infrastructure investments and enable transformational change to improve national logistics performance. This paper presents the results of a disaggregated macroscopic freight demand analysis developed for India through a hybrid approach, calibrating the modeled input-output matrix and resulting freight flows with data where available. Data was obtained from multiple sources, such as agricultural statistics, national enterprise surveys, a financial performance database of Indian companies, population statistics, and transportation statistics from rail, inland waterways transport, highways, and ports. The model provides evidence for decision making on several levels. Aggregating freight flows enables planners to identify gaps in critical infrastructure and logistics chains. Disaggregated flows support decisions on the location of logistics clusters, maximizing the potential of multimodal transport systems, and designing the distribution and storage networks that underpin the economy. 2018-02-16T21:22:29Z 2018-02-16T21:22:29Z 2018-02 Working Paper http://documents.worldbank.org/curated/en/888791518530457570/Unlocking-Indias-logistics-potential-the-value-of-disaggregated-macroscopic-freight-flow-analysis http://hdl.handle.net/10986/29371 English Policy Research Working Paper;No. 8337 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic LOGISTICS
TRANSPORT
COMPETITIVENESS
SPATIAL ECONOMICS
FREIGHT FLOW
INFRASTRUCTURE INVESTMENT
DEMAND
INPUT-OUTPUT MATRIX
RAIL
INLAND WATERWAYS
HIGHWAYS
PORTS
PLANNING
STORAGE
DISTRIBUTION NETWORKS
spellingShingle LOGISTICS
TRANSPORT
COMPETITIVENESS
SPATIAL ECONOMICS
FREIGHT FLOW
INFRASTRUCTURE INVESTMENT
DEMAND
INPUT-OUTPUT MATRIX
RAIL
INLAND WATERWAYS
HIGHWAYS
PORTS
PLANNING
STORAGE
DISTRIBUTION NETWORKS
Aritua, Bernard
Havenga, Jan
Simpson, Zane
Chiew, Esther Woon Lyn
Unlocking India's Logistics Potential : The Value of Disaggregated Macroscopic Freight Flow Analysis
geographic_facet South Asia
India
relation Policy Research Working Paper;No. 8337
description India is one of the fastest growing major economies. However, at 14 percent of gross domestic product, its logistics costs are high relative to the 8 to 10 percent that is typical of most advanced economies. High logistics costs and poor logistics performance impact the competitiveness of the economy on multiple levels: (1) firms deliver less competitive goods and services; (2) consumers pay more than peers for goods; and (3) the cost of achieving improvements in gross domestic product is excessive. The development of a national transport and logistics network to facilitate competitiveness and sustainable development and uplift rural regions will play an increasingly important role in shaping spatial organization in emerging economies. An element that is absent, yet critically important for national logistics issues in emerging economies, is sufficiently detailed freight-flow analysis to facilitate targeted infrastructure investments and enable transformational change to improve national logistics performance. This paper presents the results of a disaggregated macroscopic freight demand analysis developed for India through a hybrid approach, calibrating the modeled input-output matrix and resulting freight flows with data where available. Data was obtained from multiple sources, such as agricultural statistics, national enterprise surveys, a financial performance database of Indian companies, population statistics, and transportation statistics from rail, inland waterways transport, highways, and ports. The model provides evidence for decision making on several levels. Aggregating freight flows enables planners to identify gaps in critical infrastructure and logistics chains. Disaggregated flows support decisions on the location of logistics clusters, maximizing the potential of multimodal transport systems, and designing the distribution and storage networks that underpin the economy.
format Working Paper
author Aritua, Bernard
Havenga, Jan
Simpson, Zane
Chiew, Esther Woon Lyn
author_facet Aritua, Bernard
Havenga, Jan
Simpson, Zane
Chiew, Esther Woon Lyn
author_sort Aritua, Bernard
title Unlocking India's Logistics Potential : The Value of Disaggregated Macroscopic Freight Flow Analysis
title_short Unlocking India's Logistics Potential : The Value of Disaggregated Macroscopic Freight Flow Analysis
title_full Unlocking India's Logistics Potential : The Value of Disaggregated Macroscopic Freight Flow Analysis
title_fullStr Unlocking India's Logistics Potential : The Value of Disaggregated Macroscopic Freight Flow Analysis
title_full_unstemmed Unlocking India's Logistics Potential : The Value of Disaggregated Macroscopic Freight Flow Analysis
title_sort unlocking india's logistics potential : the value of disaggregated macroscopic freight flow analysis
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/888791518530457570/Unlocking-Indias-logistics-potential-the-value-of-disaggregated-macroscopic-freight-flow-analysis
http://hdl.handle.net/10986/29371
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