Ajay Rao

Cargo Talk - - Ct Roundtable -

Presently, there are no stan­dards set re­gard­ing how ware­houses should be built or con­structed, or promis­ing fire safety norms. There­fore, we see vast num­ber of ware­houses with very dif­fer­ing in­fra­struc­ture in terms of safety stan­dards but at sim­i­lar prices.

Se­condly, from in­ter­na­tional point of view, most of the ware­hous­ing is far away from the city and they are able to do that suc­cess­fully be­cause the con­nec­tiv­ity and dis­tri­bu­tion within the city is well mapped out. In In­dia, to­day the chal­lenges are many like ‘no en­tries’, bunch of re­stric­tions, etc. It doesn’t be­come cost-ef­fec­tive to be very far away from the city. Cost of dis­tri­bu­tion within the city goes up sig­nif­i­cantly along with TATs to de­liver within the city.

The big­ger is­sue right now is trans­porta­tion. For any com­pany, the ra­tio of ware­hous­ing cost to trans­porta­tion cost is al­most 1:3 or 1:4.

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