Never resting on laurels
How was FY 2013-14 for your company? Any major developments?
FY 2013-14 has been a good year for CRWC. The PSU is growing annually by 15-20 per cent and has achieved a record turnover in the financial year 2013-14. CRWC has already got an established warehouse capacity of over 3 lakh metric tonnes of cargo and this year it expect to cross handling of 10 million tonnes mark.
When it comes to developments, CRWC has further plans for setting up of RWC’s at Kochi, Guwahati, Malda and Gandhidham (Gujarat) which are under finalisation in consultation with the Railways. CRWC is also getting into the development of multichamber cold storage chain operation at Dankuni (Kolkata) and Ghaziabad under Kisan Vision Project, besides working on developing Logistics Hubs, 3PL Initiatives and looking into Mechanisation of cargo-handling.
Besides this, CRWC is taking up projects with IFFCO for setting up Logistics Hub at Nellore, Setting Freight Terminal at Kochi. Also, some joint ventures are being processed, and some agreements have already been inked like JV Agreement under process by CRWC to set up Railside Warehouses in Logistics Parks and MoU with IWAI has been signed to set up first River Port based Logistics Hub on Brahmaputra at Jogigoppa in Assam. At present, CRWC has got the corporate office and 11 terminals ISO 9001:2008 certified. Two more terminals are also in the process of certification. CRWC has also bagged the following awards :
• Excellence award for ‘Best Logistic Company in Govt. Sector’ organised by Bengal Chamber of Commerce and Industry at Kolkata in 2013.
• Special Excellence award by Institute of Economic Studies, New Delhi.
Present market trends and your expectations from FY 2014-15?
Whether it is the physical infrastructure of road, ports, water, power etc .or the service infrastructure of logistics – all are being stretched to perform beyond their capabilities which was not the scenario before.
At the firm level, the logistics focus is moving towards reducing cycle times in order to add value to their customers overcoming infrastructure-related constraints and logistics-centric inefficiency.
Regulations around rationalisation of tax structures, proposed introduction of GST and prevention of overloading are creating a favorable environment, in which the sector can flourish. At the same time, emphasis should be given for the integration of IT enabled technology in the sector. With the latest technology, logistics service providers should no longer be restricted to the geographical
boundaries, so that they can expand their business to any location. With rising consumer demand and the resulting growth in global trade, the role of infrastructure support in terms of rails, roads, ports & warehouses will definitely hold the key to the success of the economy.
Expectations from the new government?
The demand for logistics services in India has been largely fuelled by consistent growth of economy and industries such as automotive, engineering, pharmaceuticals, food processing, and retail. There is need to ensure smooth flow of core commodities like cement, fertilizer, for the country’s growth.
Constraints & Needs:
a) Need for an Integrated Logistics policy to standardise and integrate different modes of transport.
b) Rationalisation of taxation structure to encourage logistics sector. GST when implemented will encourage the development of mega-warehouses and support smooth movement of goods across the country.
c) Cold-chain based warehouses need support and encouragement to reduce wastage of fruits, vegetables and perishable cargo
d) Availability of Trained Manpower in both the 3rd party logistics sector and the manufacturing and retailing sectors is weak.
We need specialised training institutes and R&D in equipment for cargo-handling.
Vinod Asthana, Managing Director, CRWC