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.
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