Lo­gis­tics needs govt support

The Gov­ern­ment can prop­a­gate the im­por­tance of lo­gis­tics and freight-for­ward­ing by ed­u­cat­ing the youth of the coun­try. Cour­ses such as In­ter­na­tional Business should be in­tro­duced at the grad­u­a­tion level it­self rather than in post grad­u­a­tion (such as MBA).

Cargo Talk - - Expert View - CT BUREAU

The Lo­gis­tics in­dus­try is con­tin­u­ously un­der­go­ing many changes. It is in­creas­ingly be­com­ing global in its de­sign and or­ga­ni­za­tion and more and more lo­calised in ev­ery stage of ex­e­cu­tion.

Com­ment­ing on the Cen­tral Gov­ern­ment GD Wal­imbe, Head Business Man­age­ment- North, Emi­rates Lo­gis­tics In­dia said, “The gov­ern­ment ought to play a piv­otal role in en­sur­ing that the lo­gis­tics and freight en­joys its support in be­com­ing a fa­cil­i­ta­tor than be­ing re­ferred as a con­troller so that the in­dus­try re­turns in con­tribut­ing to the over­all de­vel­op­ment of the econ­omy and na­tion.”

It is so im­por­tant to un­der­stand that our in­dus­try is a large contributor to the in­fra­struc­ture de­vel­op­ment in sup­ply chain re­lated ac­tiv­i­ties. The in­dus­try’s strength can reach out to ar­eas where in the states’ mech­a­nisms have failed to a cer­tain ex­tent. Just to site an ex­am­ple, many food grains in In­dia gets dam­age ev­ery year prob­a­bly due to the poor in­fra­struc­ture of gov­ern­ment run and con­trolled ware­houses and dis­tri­bu­tion fa­cil­i­ties, he added.

He fur­ther said that the gov­ern­ment has ne­glected freight-for­ward­ing in­dus­try so far. To im­prove its con­di­tion gov­ern­ment can in­tro­duce tax waiver schemes or re­duc­tion in var­i­ous ex­cise du­ties. The ben­e­fits will re­sult in in­crease of cash piles which will fur­ther help the com­pa­nies to invest more.

He also cited some ar­eas which the State can closely look into.

Trans­porta­tion: Trans­port is the back bone of any lo­gis­tics of freight ac­tiv­ity. How­ever, there are time re­stric­tions on move­ment of trans­porters lead­ing to back­log, cor­rup­tion, in­crease in costs. A trans­port medium is not the cause of traf­fic. Then why do have pri­vate buses ply­ing?

Cus­toms: Cus­toms depart­ment should open their of­fices like ex­cise in the ar­eas where the in­dus­trial area is es­tab­lished. Gov­ern­ment may have some cri­te­ria on the lo­ca­tion of cus­tom depart­ment de­pend­ing on the scale and num­ber of in­dus­tries in that area. Once in­spec­tion of the goods is done, by the cus­toms au­thor­ity, the trans­port ve­hi­cle should be sealed by cus­toms of­fi­cials and the cargo should be trans­ported to air­port or ICD/Port, from where the cargo can be loaded onto the con­tainer or Air­craft.

Ware­hous­ing: To es­tab­lish a ware­house one has to go through lot of doc­u­men­ta­tion such as DDA, MCD. There should be sin­gle au­thor­ity who can al­low cer­ti­fi­ca­tion on the ba­sis of fol­low­ing cri­te­ria to open ware­house.

Land and Us­age: The process of ac­qui­si­tion of land should be uni­form across the state and coun­try. The taxes levied, the re­stric­tions, the al­lowances should be uni­form in ev­ery state. Land ac­qui­si­tion should be kept sim­ple with proper check points so that no cor­rup­tion/il­le­gal us­age of land takes place. All the formalities to ac­quire the ba­sic needs like elec­tric­ity, wa­ter sup­ply, se­cu­rity should be kept sim­ple

Cus­toms Re­stric­tions to pen

old cases: It has been ob­served that cus­toms bring in light very old cases which are no more rel­e­vant in to­day’s times, and thus ham­per the pro­duc­tiv­ity of the or­ga­ni­za­tions. Cus­tom of­fi­cials then pe­nal­ize ex­porters/Im­porters/freight For­warders on the ba­sis of th­ese cases. The cus­toms should be held re­spon­si­ble for the mis­man­age­ment and lapse on their part and thus a penalty should be levied on the cus­toms depart­ment. The fund col­lected from th­ese penal­ties should be saved and be used for Pub­lic In­fra­struc­ture like cus­toms bond area, con­veyer Belts or any other way which can be ad­van­ta­geous to Lo­gis­tics and Freight For­ward­ing In­dus­try.

GD Wal­imbe Head Business Man­age­ment- North Emi­rates Lo­gis­tics In­dia

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