In­te­gra­tion is the key

The Na­tional Sum­mit Lo­gis­tics In­dia 2016 or­gan­ised by AS­SOCHAM fo­cused on the crit­i­cal is­sues to make lo­gis­tics cost ef­fec­tive and ef­fi­cient.

Cargo Talk - - Report -

In­dia spends around 14.4 per cent of its GDP on lo­gis­tics and trans­porta­tion as com­pared to less than eight per cent spent by the other de­vel­op­ing coun­tries. The build­ing of ded­i­cated rail freight cor­ri­dors will pro­mote ef­fi­cient haulage of con­tainer­ised cargo by rail. One key ad­van­tage of the ded­i­cated freight cor­ri­dor is that freight trains could be run on time ta­bles sim­i­lar to pas­sen­ger trains, and the fre­quency can be the­o­ret­i­cally in­creased to one train in 10 min­utes. This will re­duce time for goods trans­porta­tion be­tween Mum­bai and Delhi to 18 hours from 60 hours now. Wa­ter­ways are 50 per cent cheaper than road and nearly 30 per cent cheaper than rail. Ram Kri­pal Ya­dav Min­is­ter of State for Drink­ing Wa­ter & San­i­ta­tion As far as the lo­gis­tics sec­tor is con­cerned, cost is a crit­i­cal fac­tor. From an en­vi­ron­men­tal or ef­fi­ciency point of view, rail is a pre­ferred mode of trans­port. In In­dia less than 30 per cent of cargo moves on rail. In the last one year de­mand for rail ser­vices has been slug­gish both at the do­mes­tic level and on the import-ex­port front. The road sec­tor has been ef­fec­tive in look­ing at this de­mand-sup­ply gap and match­ing prices to a level where there has been a ma­jor move­ment of cargo away from rail to road. Man­ish Puri Man­ag­ing Di­rec­tor In­dia In­fra­struc­ture & Lo­gis­tics It is not about air, rail, road and sea; we have to look at mul­ti­modal trans­port in the coun­try. For an in­te­grated pol­icy, we need mul­ti­modal trans­porta­tion to be en­cour­aged. In my opin­ion, I would like to see the rules be­fore com­ment­ing on this sub­ject. Yes, ware­houses might get ben­e­fited as CST will get elim­i­nated but as far as speed of the truck is con­cerned; the rules need to be looked upon which are im­ped­ing the speed. Sys­tem needs to func­tion, there has to be some co­or­di­nated ef­forts among agen­cies. In­te­gra­tion is needed, may the tac­tic be dif­fer­ent but in­te­gra­tion is nec­es­sary. Till we are in iso­la­tion or si­los, there will be gap. Salem Gana­p­athi Man­ag­ing Di­rec­tor Shelka Mar­ket­ing Ser­vice Trans­porta­tion is only 14 per cent of the to­tal lo­gis­tics cost. GST is round the cor­ner, we are now see­ing the re­tail sec­tor open­ing in some form or the other. We have seen ef­fects of glob­al­i­sa­tion which have started hit­ting import and ex­port both and do­mes­tic con­sump­tion. There is huge growth in e-com­merce. This is go­ing to be­come a chal­lenge for us. The need is to bring this to­gether. Lo­gis­tics is han­dled by var­i­ous min­istries. This kind of a dis­trib­uted ar­range­ment would prob­a­bly not give a fil­lip to the lo­gis­tics re­quire­ments that we are go­ing to have in the next two years. DP Pande For­mer Mem­ber Traf­fic Rail­way Board, GoI This con­cept of sin­gle wom­dpw clear­ance has been done with­out a penny in­vest­ment by the Min­istry of Fi­nance. Though, the US gov­ern­ment has al­most spent $100 mil­lion for the same and they are still strug­gling for the last three years. There is par­tic­i­pa­tion of var­i­ous gov­ern­ments for im­ports and ex­ports–be it pharma, food or tex­tile. The sin­gle win­dow con­cept will elim­i­nate the hu­man in­ter­face. Other chal­lenges for im­porters and ex­porters are there and there is no pre­dictable en­vi­ron­ment. The gov­ern­ment is fo­cus­ing on sen­si­tive is­sues. S Ra­makr­ishna CMD Balaji Mar­i­line Skill In­dia is more in the vo­ca­tional level; it is the time to iden­tify what type of skills are re­quired at this time. The time has gone when we used to get the raw ma­te­rial, as­sem­ble it and made ev­ery­thing in-house. Now 70-80 per cent of sales rev­enue comes from sup­ply chain in ev­ery com­pany. Hence we need peo­ple to be trained at that level. We need re­sources to make com­pa­nies more cost ef­fec­tive and ef­fi­cient as like China and other places. In In­dia, hardly any­body would love to go into lo­gis­tics as a ca­reer. It does not have that attraction por­tion. Some­what e-com­merce com­pa­nies are cre­at­ing in­ter­est for lo­gis­tics but still many of the com­pa­nies are not able to do it. Kr­is­han Batra Pres­i­dent In­sti­tute for Sup­ply Man­age­ment, In­dia

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