With 75 percent of its exports being shipped by sea, it is no surprise that Denmark has developed a comprehensive port system of approx. 25 ports with frequent international shipments. More than 64 million tonnes of international goods are loaded and unloaded at Danish ports every year. The major industrial ports offer daily connections to overseas destinations and regular connections to major ports in Europe, freeport and bonded warehousing facilities and ro-ro / lo-lo facilities.

In 2016, Copenhagen Airport was rated most efficient airport in Europe for the 10th time in the past twelve years. More than 60 airlines operate from the airport and serve more than 160 destinations. Copenhagen Airport is both SAS’ principal airport and DHL’s Northern European hub. Copenhagen Airport handles approximately 380,000 tons of airfreight each year and has the shortest goods transit times of all European airports. In 2017 Air India introduced direct flights between Copenhagen and Delhi.

The Indian logistics industry was valued at an estimated US$ 130 billion in 2012-13. It has grown at a CAGR of over 16 percent over the last five years

The contribution from the movement of goods including freight transportation and storage is about 90 percent. Aggregate freight traffic is estimated at about 2-2.3 trillion tonne-kilometres. Road dominates the mode of freight transport mix and constitutes about 60 per cent of the total freight traffic. Rail and coastal shipping account for about 32 percent and 7 percent, respectively, while the share of inland waterways transportation and air is less than 1 percent each. 

The essential challenge faced by the logistics industry in India today is insufficient integration of transport networks, information technology and warehousing & distribution facilities. Regulations exist at a number of different tiers, is imposed by national, regional and local authorities. However, the regulations differ from city to city, hindering the creation of national networks.

  • A Danish trail period with longer and heavier trucks has improved the logistic systems in Denmark and made it possible to transport more goods with the same energy consumption. Trucks exceeding 25 m in length can reduce CO2 emissions by 15 % compared to a standard-sized one.

    Denmark has become the 1st country in the world to rely on GPS probe data to monitor traffic and congestion on a national scale. Initiatives in terms of autonomous trucks and strong investments in automation have placed Denmark among the leading nations for innovation. Denmark is a highly environment-conscious country with ambitious emission targets. This paves the way for a number of technologies - from LNG ships to autonomous vehicles and e-Vans.

    Green actions in the freight sector

    Several initiatives are utilised to develop efficient freight transport, e.g. a pilot project that tests the use of modular vehicle combinations (Eco-combies), charges on heavy goods vehicles, a congestion charging zone in Copenhagen, increased gross weight and axle loads of heavy goods vehicles and efficient freight delivery in cities. Since 2007 the use of Eco-combies has been tested on Danish roads. Two Eco-combies can transport the same amount of freight as three regular heavy goods vehicles, which means that fuel consumption is around 15 pct. lower per. transported unit when driving an Eco-combies, thereby reducing CO2 emissions correspondingly.

    New technological transport solutions are crucial for developing a greener transport system that enables high mobility in a sustainable and environmentally friendly way. Denmark takes an active approach in promoting the development of new and green transport technologies. It is not sufficient to focus on one technological track. Several solutions have to be investigated in order to assess the various strengths and weaknesses. The future mobility of the transport system is thus likely to be facilitated by a combination of different technological solutions. Among these solutions are electric vehicles, hydrogen cars, hybrid buses and buses on biogas as well as other alternative fuels such as biodiesel and bioethanol. A number of experiments on energy efficient transport solutions have been initiated in Denmark. These projects represent a broad range of vehicle technologies and alternative fuels, cleaner energy, efficiency of freight transport, energy efficient driving techniques and reduction of CO2-emissions.

    The logistics industry in India is likely to grow at a rate of 9-10% over the medium-term, supported by underlying structural positives, as per an ICRA note. While the key driving factor on the demand side would be the economic recovery, the trend towards outsourcing of non-core activities like logistics, warehousing and associated activities to integrated players is likely to drive the share of the organised segment.

    Challenges faced by the recent logistics industry in India

    Trained Manpower is essential both for the third party logistics sector as well as the manufacturing and retailing sectors, which is very weak at a practical level, i.e., IT, driving and warehouse as well as at a higher strategic level. The disorganized nature of the logistics sector in India, its perception as a manpower-heavy industry and lack of adequate training institutions has led to a shortfall in skilled management and client service personnel. There is a lack of IT standard, equipment and poor systems integration.

    Poor facilities and management are the reason for high levels of loss, damage and deterioration of stock, mainly in the perishables sector. Part of the problem is insufficient specialist equipment, i.e. proper refrigerated storage and containers, but it is also partly down to lack of training. The practitioners and the academicians are now aware of the importance of logistics and supply chain; however, the field is still under-penetrated as far as research is concerned. It is essential to prioritize research and development so that the weaknesses in the industry can be taken care of and improved.

  • Denmark is a global maritime industry leader with long-standing shipping activities and advanced technologies. Denmark offers a uniquely stable and favourable regulatory framework and pursues a long-sighted industrial policy, which has resulted in long-term advantages and positive business conditions for the maritime industries. The Danish shipping industry is strong and thriving. Helped by stable and competitive framework conditions – not least the Danish International Ship Register – the industry plays an important role in the world’s infrastructure.

    Home to the world’s largest shipping company and other major players Denmark is a world-renowned and highly international hub for all types of shipping activities. The size and importance of Danish shipping on an international scale is best illustrated by the fact, that the fleet operated by Danish shipping companies’ transports approximately 10 percent of all globally traded goods.

    The Danish maritime industry is world leading within its field. The industry offers solutions customized to match the requirements of a specific contract or customer. The Danish maritime industry is famous for its quality products and its innovative technological solutions. The industry is dynamic and international, and it comprises a large number of skills within specialized businesses such as shipyards, maritime suppliers and consultants. 

    The Indian maritime industry is an integral part of the country’s trade and commerce. It supports 90% of India’s trade by volume. India’s has a coastline of 7,517 kms with potentially navigable waterways of 14,500 kms. 12 major and 200 non- major ports are dotted along the coast.

    Over the last two years, a host of policy and regulatory reforms by the Government has resulted in capacity building and service delivery improvement.

    Increased investments together with the ‘Make in India’ impetus can increase the sector’s contribution to GDP and trade volumes. The government has launched a number of major initiatives such as the Sagarmala project, ports modernization and Inland Waterways & Coastal Shipping development. The increasing public-private partnership in response to these initiatives adds to the vibrancy of the sector and is a clear sign of resurged interest in its potential. What this also means is that public and private players are now more eager than ever to play a bigger role.

    The government has unveiled a host of initiatives aimed to develop and then sustain growth of the sector.  As part of the governments push to fast-track investment in the sector, a host of business-friendly policies have been introduced. These range from modernising existing port infrastructure and creating new ones, to promoting green energy, IT development and most importantly skilling the talent to sustain the operation of the structure.

    The Sagarmala (string of ports) project, centred on the modernisation of ports and development of infrastructure is considered to be one of the best initiatives to increase the competitiveness of the Indian maritime sector.

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