Key market trends in project logistics services (Mumbai)

Key market trends in project logistics services

Project logistics services imply services associated with the movement of project cargo, i.e, cargo of larger or peculiar dimensions and high in value. Challenges are many when it comes to shipping a project cargo. Specialized freight forwarders in India and abroad with rich experience of infrastructure and equipment requirements deal with the staggering challenges associated with project shipments and ensure a smooth movement of cargo. Last five years have witnessed a trend wherein transportation providers were involved in the initial stages of project planning. The major growth drivers of this market since 2019 have been rising oil prices, robust LNG, and petrochemical construction market. With the Covid-19 pandemic stepping in, the logistics industry has experienced drastic changes, so has the project logistics. The key market trends in the current scenario are highlighted as under: Increased usage of renewable energy presents more opportunities for project logistics - The continuous and steady growth in renewable energies involving hydropower, solar energy, wind energy, bioenergy and geothermal energy significantly contribute to the surging demand for project logistics services. This trend is expected to remain bullish in the years to come with the global environment sustainability objectives to be achieved. In order to keep pace with the ever-increasing demand for power, the energy companies need to develop the necessary infrastructure, look at commencing new projects, and install equipment helping in power generation. All this creates a huge requirement for project logistics services. Asia-Pacific leads the project logistics market - As per the industry sources, Asia-Pacific is expected to be the fastest-growing market in the world. In fact, during recent times, Asia-Pacific countries have had an economic development largely due to infrastructure investments. While some countries are planning to develop their domestic infrastructure, the requirement of project logistics services is going to grow multifold. A series of announcements made by the Chinese and Indian government on the infrastructural development front presents an optimistic future outlook for the project logistics market. Competitive landscape - The project logistics market is largely known to be fragmented due to the presence of global players as well as local players - both medium and small. While global project logistics players have extensive presence and specialized team to meet customer demands, the local players are increasingly enhancing their all-round capabilities such as industries catered to, service offerings, technology and innovation to pose a tough competition to the global players. With manufacturing units adding up to the existing challenges of project logistics, global players are easily investing in upgraded fleets to combat the challenges. On the other hand, local players are striving to come up with innovative solutions to deal with such chall