Oil and gas logistics is among the eight core industries in India and plays a major role in influencing the decision making for all important sections of the economy. Oil and gas logistics involves the transportation of heavy and odd-sized drilling equipment, extracted natural gas, crude oil, and refined products from one place to another place.
The upsurge of Indian economy is driving the growth of oil and gas logistics market. Increased exploration activities, growing number of oil rigs, and the ever-expanding consumption of oil and gas is pushing up the demand for transportation and augmenting the growth of the oil and gas logistics market. Increasing specialisation and continuous technical upgrades are steering the demand for a single window solution for varied logistics services in this sector.
JCC is an IBA-approved transport company, a leading carrier of heavy and odd dimension consignments. With their fleet of fleet of multi-specialty vehicles, they have been involved in landmark projects like the hauling of a Tunnel Boring Machine (TBM) to the Kishanganga Hydroelectric Power Project on the river Jhelum, close to the LoC in Jammu and Kashmir, and shifting the Tata Nano plant from West Bengal to Gujarat. It offers multi-faceted logistic services, with one vertical is dedicated to oil and gas logistics.
“We have predominantly serviced Engineering, Exploration, and Construction industries”, says Bimal Kumar Jain, Director of the JCC Group. In an exclusive interview with Industry Outlook, he spoke about the present condition of the oil and gas logistics market, casting a light on his company’s journey and challenges.
How do you see the Oil & Gas logistics market evolving in India? What are the major factors that have been driving the market’s growth?
The surging Indian economy and the government’s thrust on increasing oil exploration and production are the two key factors that have, so far, driven the evolution of the oil and gas logistics market in India.
Our PM’s vision of making India a $5 trillion economy by 2025 and $10 trillion by 2030, is definitely going to inflate the expansion of oil and gas logistics market in India. However, the graph of growth is likely to be less steep owing to the government’s other focus areas - alternate fuels, like Solar, Wind, Hydrogen, and Electric Vehicles.
The present rise is directly contributed by the consumption growth in domestic, agricultural and industrial sectors. The oil and gas sector has recorded an average growth of about 10% so far and future estimates are rated at around 4%. Given the size of consumption and the projected growth, market expansion is inevitable.
What are the major expectations of customers from a company offering logistical services? How do you strategise to meet those?
When it comes to economy and efficiency, customers’ 'dil maange more'. They want continuous betterment in services and reduction in prices. These demands stimulate technical advancement as well as cost-cutting measures - and that is how our strategy and has evolved circumstantially.
Increased application of technology, like GPS navigation and communication network, support the efficient monitoring of vehicles’ movement and effective supply chain management.
Increased application of and continuous advancements in telemetric aids in deriving better fuel mileage, better machine management, effective diagnosis, and efficient maintenance - thus aid in cost cutting. Increasing application of software support in accounting and administration helps cost cutting in terms of management and manpower.
How do you think your company is staying abreast of the changes happening in the market?
In the era of cutthroat competition, it is the survival of the fittest. Continuous upgrade and updates is the only mantra.
Shed light on the wide range of products you offer.
Our Group’s activities can broadly be classified under the following heads. Door-to-door service for heavy and odd-sized cargo transportation. Packing and lashing, loading and unloading, storage and warehousing, and Customs clearing services. Turnkey services for plant and machinery shifting: dismantling, loading, transportation, unloading, assembling, commissioning and testing. Girder launching services. Rig shifting services. Construction equipment hiring. Sub- Contracting.
How has been the journey of your company since its inception? Walk us through the growth it has received in terms of clients and geographical expansions.
JCC was born in 1983 with one second-hand trailer and the founders shifted their entire lives on those moving wheels. Flowing sweat, blowing winds, and moving wheels propelled us to our present day - a national-level standing in our field. Today, we reach almost all leading enterprises in the fields of Engineering, Exploration, and Construction. L&T, BHEL, EIL, ONGC, IOCL, NTPC, IRCON, DRDO, Indian Railways, and our Armed Services are some of the famed names in our clientele. We have operations pan India and also serve Nepal and Bhutan. Recently, we’ve expanded operations to Africa, with projects in Mozambique.
Where do you see this market in the near future? What is the future roadmap for your Company?
The market is poised for exponential growth in the times to come. In fact, I expect it to be a little higher than the rate of growth of the Indian economy, in double digits. There will be an abundance of opportunities flowing due to the surge in economic corridors, freight corridors, and MSME incentives bundled in the government’s dynamic plans. Our focus will be on horizontal integration: from services to equipment to trading and allied services and so on. With stress on the Infra segment, we aspire to double our top line in the coming two years.
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