The chang­ing dy­nam­ics of dis­tri­bu­tion lo­gis­tics

Maritime Gateway - - Contents -

V Kalyana Rama, CMD, CONCOR and Man­ish Puri, MD, APL In­dia Linx, dis­cuss the cas­cad­ing ef­fect DPD will have on the sup­ply chain.

V Kalyana Rama, CMD, CONCOR and Man­ish Puri, Man­ag­ing Di­rec­tor, APL In­dia Linx, dis­cuss in de­tail the cas­cad­ing ef­fect Di­rect Port De­liv­ery will have on the sup­ply chain and ex­ports, es­pe­cially when the share of DPD is go­ing up at ma­jor ports. The dis­cus­sion also touched upon in­fra­struc­ture ca­pac­ity and whether reg­u­la­tions are a boon or bane for the sec­tor

When V Kalyana Rama, CMD, CONCOR and Man­ish Puri, Man­ag­ing Di­rec­tor, APL In­dia Linx share the dais, the dis­cus­sion is bound to be in­ter­est­ing and this is what hap­pened at the Mar­itime CEO Con­clave as an en­thralled au­di­ence wit­nessed a very en­gag­ing dis­cus­sion pre­sented by the dig­ni­taries that touched sev­eral hot top­ics such as Di­rect Port De­liv­ery, in­fra­struc­ture ca­pac­ity and reg­u­la­tions.

Man­ish Puri: The con­cept of Di­rect Port De­liv­ery is ac­tu­ally break­ing the sup­ply chain, so are there any neg­a­tive im­pacts that we should be look­ing at?

Kalyana Rama: DPD is a con­cept wherein we are try­ing to rein­vent the cy­cle. When the ports started func­tion­ing there were no CFS and ICD as clear­ances were done in the port. The idea be­hind DPD as I un­der­stand is a just-in-time con­cept brought in to re­duce the lo­gis­tics cost. Maybe stop­ping un­nec­es­sary de­ten­tion of cargo is one of the aims in DPD but the main as­pect we have to see is the in­fra­struc­ture avail­abil­ity.

As we are cre­at­ing fa­cil­i­ties and many fa­cil­i­ties that are nom­i­nated as CFS or ICDS which func­tion as pro­cess­ing cen­tres for han­dling con­tain­ers do not have ad­e­quate in­fra­struc­ture. As a re­sult the en­tire sup­ply chain is get­ting af­fected. But if we are able to cre­ate fa­cil­i­ties with proper ware­hous­ing and other es­sen­tial in­fra­struc­ture, then whether the cargo is cleared at the port or the hinterland the sup­ply chain will con­tinue to flow through these fa­cil­i­ties only. I don’t think the man­u­fac­tur­ing or pro­cess­ing units will try to have their own in­fra­struc­ture for do­ing the lo­gis­tics. “Lo­gis­tics has ma­tured a lot in In­dia, but we still have a long way to go to con­sider our 3PL lo­gis­tics ac­tu­ally ef­fi­cient.”

“If we look at the cur­rent sce­nario in In­dia there are no 3PL in­dus­trial goods as it is mostly cov­ered in cou-

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