In­fras­truc­ture needed, ware­hous­ing fa­cil­i­ties

Cargo Talk - - Cover Story -

Man­ish Ma­lik, Na­tional Sales Man­ager, Freight Sys­tems

The big­gest ex­pec­ta­tion of lo­gis­ti­cians is the recog­ni­tion of lo­gis­tics as an in­dus­try which will help in cre­ation of trans­par­ent poli­cies to­wards over­all de­vel­op­ment of this sec­tor. Sub­se­quently, GST roll­out is ex­pected in the up­com­ing bud­get. The pro­vi­sion for proper in­fra­struc­ture which in­cludes de­vel­op­ment of a bet­ter trans­porta­tion sys­tem and set­ting up of ware­houses is an­other im­por­tant an­tic­i­pa­tion. Ad­di­tional rail­way tracks to en­sure no pil­ing up of con­tain­ers at in­land ports and bet­ter in­fra­struc­ture at metro cities along with de­vel­op­ment of ma­jor air­ports as cargo hubs will sup­ple­ment In­dia’s grow­ing EXIM (Ex­port-Im­port) trade. In­creased al­lo­ca­tion for cre­at­ing the in­land wa­ter­ways project and also push­ing for­ward to re­vive the Sa­gar Mala plan for coastal ar­eas is a must.

The de­vel­op­ment of lo­gis­tics parks across the coun­try for speedy de­liv­ery will add a lot of value. Fa­cil­ity of a sin­gle win­dow clear­ance for per­mis­sion prior to the ex­ports of prod­ucts to sim­plify pro­cesses, re­duce doc­u­men­ta­tion and am­bi­gu­i­ties on the cus­toms reg­u­la­tory front will help fa­cil­i­tate ex­porters. The re­moval of 25-30 per cent of cus­tom duty levied on fuel used by In­dian ships is a must as is solv­ing other lo­gis­ti­cal hur­dles to push for more us­age of the sea routes for both do­mes­tic and in­ter­na­tional cargo. The re­fined pol­icy of set­ting up AFS should be present across the coun­try. The ex­ist­ing CFS should be pro­moted to have AFS fa­cil­ity and later new in­de­pen­dent fa­cil­ity of AFS should be con­sid­ered.

Time-based hir­ing of ships for im­ports to be ex­empted from pay­ment of ser­vice tax. The ser­vice tax on freight and all re­lated ser­vices should be ex­empted. The cre­ation of a sep­a­rate cell to act as in­for­ma­tion nerve cen­tre fore­cast­ing the de­mands and sup­ply of con­tainer rakes at var­i­ous ports and ICDs are the ma­jor re­quire­ments that the gov­ern­ment must take into con­sid­er­a­tion.

tax regime.

to the cargo sec­tor. costs for air­lines which can be a boost to the sec­tor. on cre­at­ing in­fra­struc­ture, both on and off the air­port to pro­mote multi modal trans­porta­tion. to pro­mote man­u­fac­tur­ing surely boost ex­ports.

will thing’. We should reap the op­por­tu­nity pro­vided by this sec­tor. Our bud­get should be fo­cused on pro­mot­ing this sec­tor in­clud­ing start-ups in a huge man­ner which may in­clude tax ex­emp­tions, more ven­ture fund­ing op­por­tu­ni­ties.

The gov­ern­ment is al­ready work­ing on a Draft Civil Avi­a­tion pol­icy, which if framed and im­ple­mented prop­erly, can be a game changer. A log­i­cal bud­get aimed at the in­te­grated de­vel­op­ment of the air cargo sec­tor can be a huge im­pe­tus for the sec­tor as well as for the econ­omy.

con­trib­ute if re­quired.




The gov­ern­ment should al­lo­cate min­i­mum 500 crore to­wards the mod­erni­sa­tion of Air Nav­i­ga­tion Ser­vices (ANS). The present Air Nav­i­ga­tion Ser­vices train­ing cen­tre should be ex­panded to pro­vide train­ing to ATC of­fi­cers to com­pete at the global level. More than 1,000 crore is re­quired to es­tab­lish Na­tional Avi­a­tion Univer­si­ties (NAU) in the coun­try to sup­port the up­grade of Air­craft Main­te­nance Engi­neers Train­ing Cen­tres across In­dia. The Union Bud­get should al­lo­cate funds to pro­mote spe­cialised cer­ti­fi­ca­tions in fields such as ‘lo­gis­tics man­age­ment’ and ‘ware­hous­ing man­age­ment’.

SA Mo­han, Ma­te­ri­als Move­ment

Ware­hous­ing and lo­gis­tics will be a gate valve that will con­trol the ebb and flow of prod­ucts be­tween the pro­duc­ing and con­sum­ing func­tions of an eco­nomic pipe­line. Ex­pec­ta­tions are:


Maini growth of an in­dus­try. Many state gov­ern­ments are now com­ing up with bet­ter poli­cies to sup­port their labour force.

The gov­ern­ment must also ease the reg­u­la­tory norms with re­spect to ware­hous­ing. Given the fact that it takes mas­sive in­vest­ments and ef­forts on the part of a firm to de­velop a ware­hous­ing fa­cil­ity, gov­ern­ment must play its role in cre­at­ing a con­ducive reg­u­la­tory en­vi­ron­ment, which should en­able firms in de­vel­op­ing more and more ware­houses.

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