Culling out the un­tapped po­ten­tial

Sandeep Harit, Man­ag­ing Di­rec­tor, Movex Ser­vices, talks about the trends and op­por­tu­ni­ties ly­ing in the in­dus­try while high­light­ing the steps taken to com­bat the ob­sta­cles hin­der­ing the growth of the sec­tor.

Cargo Talk - - Trends -

to eight per cent. How­ever, the cost rep­re­sents 13-14 per cent of the coun­try’s GDP. The im­pend­ing is bright af­ter the en­try of large third party lo­gis­tics (3PL) car­ri­ers like Fed­eral Ex­press and DHL and the ex­pan­sion of do­mes­tic net­works of In­dian firms like Gati and other ship­ping com­pa­nies is trans­form­ing the na­ture of ser­vices and the busi­ness prac­tices.

An­other trend driv­ing growth in this sec­tor has been the con­sol­i­da­tion amongst the lo­gis­tics player. Merg­ers and ac­qui­si­tions amongst In­dian and MNC lo­gis­tics firms is start­ing to in­crease the reach of multi-na­tional 3PLs in the do­mes­tic mar­ket. Growth prospects for the In­dian lo­gis­tics sec­tor looks promis­ing with gov­ern­ment’s avowed fo­cus on lo­gis­tics in­fras­truc­ture de­vel­op­ment, nu­mer­ous pol­icy ini­tia­tives in the ar­eas of trade and in­dus­try pro­mo­tion, as well as the much-an­tic­i­pated GST tax re­form. What are the ma­jor ob­sta­cles hin­der­ing the In­dian lo­gis­tics in­dus­try’s growth?

Lack of in­fra­struc­tures at ma­jor cargo ports; these must be up­graded per world class cargo

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