Will 2016 bring the change?
It’s that time of the year, when one looks forward to a new budget and what it will bring for the logistics sector. The sector has a number of demands from the government to make transportation smoother. The industry is desperately looking for the long-awaited GST roll out, 100 per cent EDI, single window clearance, infrastructure status to air cargo and shipping industry, to name a few, to bring down the logistics cost. The industry believes that Government of India should accord an industry status now to the logistics sector.
On the rail side, government has decided to build 500 private freight terminals in three years. At present, we have 27 across the country.
This is one of the strategies for attracting investment in the rail sector as this will enhance speed and reduce dwell time and congestion. The railway sector is also eagerly waiting for the budget allocation for rail freight.
Chennai Customs Zone launched a software to track unclaimed cargo lying inactive at various warehouses. This initiative by the government is likely to reduce congestion in ports, CFS, ICD by speedy disposal of UCC. Congestion is always a problem be it ICD, CFS or AFS. The software is currently on trial basis but this initiative is expected to alleviate the problem to some level.
This is also a time to build a proper system and increase use of Information Technology (IT) in managing business. The accurate and complete application of IT can only transform the existing challenges of cargo industry to the advantages of Indian trade. Adoption of IT will aid the movement of cargo in the Indian supply chain. On the express side, courier companies are also coming up with smart applications through which one can track delivery updates.