Proving the Business Case for the Internet of Things

NEC forms joint venture for logistics visualisation in India

Steve Rogerson
May 17, 2016
 
NEC and the Delhi Mumbai Industrial Corridor (DMIC) Trust have established a joint venture company, DMICDC Logistics Data Services, for providing logistics visualisation services in India. NEC and DMIC Trust will each hold 50 per cent of the joint venture’s total capital of approximately 80 million Indian rupees.
 
This is the first commercial project to originate from the smart community initiatives of the Delhi Mumbai Industrial Corridor, which is being promoted jointly by the Indian and Japanese governments. Since 2010, the Japanese Ministry of Economy, Trade & Industry (METI) has played a key role in helping NEC and DMIC Trust establish this new company.
 
The company will provide shippers and transport operators with logistics visualisation services, enabling them to perform real-time searches based on accurate positional information, showing the location of containers being transported by rail or road between Delhi and Mumbai. This will contribute to shortening shipping lead times, reducing inventory levels and improving the accuracy of production plans.
 
“Development of logistics infrastructure in India is struggling to keep pace with the country’s rapid economic growth, causing issues such as longer shipping lead times and delays, and difficulties checking progress with goods in transit,” said Hiroshi Hashimoto, general manager at Tokyo-based NEC. “We are aiming to establish advanced logistics infrastructure in India through this new company, in order to contribute to the country’s economic development and to the Indian government’s key economic policy ‘Make in India’.”
 
To provide these services, RFID tags will be fixed to shipping containers being loaded and unloaded at ports in Mumbai. It will also install RFID readers and writers at port entrances and exits, toll plazas on the expressway between Delhi and Mumbai, and inland container depots where customs inspections are carried out and cargo reloaded.
 
Positional information obtained by RFID readers and writers will then be gathered in real time via a cloud-based logistics visualisation system. There are plans to link up the logistics visualisation system with rail transit management systems, port management systems and other existing systems in the future, to gather information such as freight train running times and container management status at the port.
 
“This project will enable quicker decision making that improves competitiveness of logistics and manufacturing industries in India, and also will provide better governance and complete transparent and visible management for performance evaluation of ports, inland container depots and truckers,” said Alkesh Sharma, chief executive officer of DMIC Trust.
 
The new company will use NEC’s logistics visualisation system to develop and operate the necessary platforms to provide the logistics services.
 
NEC plans to build on experience and expertise from its initiatives in India to provide a range of services to help develop more advanced logistics infrastructure in the future, focusing particularly on Asian countries.