Long term solutions
Around 60 per cent of goods in India move by road. The country has the second-largest road network in the world, spanning over 4 million km. India loses significant value every year due to congestion, the slow speed of freight vehicles and the waiting time at toll plazas and checking points.
The Union Budget 2016-17 allocated ` 2.18 lakh crore for the rail and road infrastructure. This investment will definitely give a fillip to the logistics industry, be it cost, speed, efficiency or taking things to the international level.
Presently, it might be difficult to count the numbers in regard to reduced cost but there will be a huge reduction in logistics cost with the share of ` 55,000 crore for roads and highways. CARGOTALK spoke to some experts to know how this will benefit the industry.
However to increase EXIM trade in the country, more train services have started, providing congestion-free solutions. The three more dedicated freight corridors will also enhance speed and reduce cost.
On the air cargo front, Indian Customs has plans to implement a Single Window concept. In order to promote the perishables import into Delhi, Celebi Delhi Cargo Terminal Management India has set up a specialised cold storage facility at import warehouse.
On the maritime front, the relaxation in cabotage rule for container transshipment ports carrying less than 50 per cent of container cargo will give a boost to international cargo. Shipping lines are expanding their horizons with new services to other countries to facilitate trade. More logistics parks are in line to offer end-to-end logistics solutions.