Globat Transportation Challenges - India, China and France

Overview

According to the 2011 Business Monitor International report on the Global Transportation Infrastructure Industry, the sector has posted good growth rates in recent years. This trend is set to continue, although at a slightly slower pace. As such, strategic developments in Transportation infrastructure are expected to proliferate in the mid-term which will give force to more positive developments in global logistics and supply chain networks as well as international trade activities.

I have chosen cases studies on India, China and France as the key strategic developments in transportation infrastructure of these 3 countries have huge positive repercussion on the global distribution network and trade. The domestic market consumption potential of India, China and Europe (France) will ensure that governments will do their best to expand and make strategic developments to their respective transportation infrastructure. This is so as to achieve more developed, organized and efficient channels of product distribution and as well as better facilitating international trade while reducing the cost of transportation which may have a significant impact on profits.

1.1 India

India’s transport sector is large and diverse; it caters to the needs of 1.1 billion people. In 2007, the sector contributed about 5.5 percent to the nation’s GDP, with road transportation contributing the lion’s share.

Good physical connectivity in the urban and rural areas is essential for economic growth. However, the sector has not been able to keep pace with rising demand and is proving to be a drag on the economy. Major improvements in the sector are required to support the country's continued economic growth and to reduce poverty.

Hence, the government has decided to fund for more road transportation development projects so as to enhance current constraints on physical connectedness between urban and rural areas. This will have a positive impact on product distribution as goods and products will be transported with greater ease and speed, thus, increasing the penetrating power and abilities of various firms who wants to tap on India’s massive consumer market. As such, more foreign direct investments will flow into India leading to an increase in International trade activities.

1.1.1 Roads

Roads are the dominant mode of transportation in India today. They carry almost 90 percent of the country’s passenger traffic and 65 percent of its freight. However, most highways in India are narrow and congested with poor surface quality, and 40 percent of India’s villages do not have access to all-weather roads. The majority of the country’s freight is transported by road, with 65% of total cargo carried by road in 2008.

Thus, with such huge dependency