Sandeep Kulkarni, Chief Operating Officer, Allcargo Gati says, “The inherent structural inefficiencies in the transport ecosystem is one of the key challenges the industry has been facing. Having said that, the PM Gati Shakti – National Master Plan for multimodal connectivity will boost the operational efficiency.” He adds, “The modal mix is still dominated by road transport which accounts for 60 percent of the total freight traffic movement. The need of the hour is to shift a significant part of freight traffic movement to rail transport. Dedicated Freight Corridor (DFC) will further boost freight movement via rail. The industry doesn’t have well-spread out warehousing facilities and roadways. There is an urgent need to bridge the infrastructure gap by boosting private investment in warehouse development and fast-tracking national highway development. The goal is to ensure smooth and efficient transportation of goods. The trucking community serves as the backbone of the logistics industry. However, this segment is highly fragmented and unorganized. To address these challenges, technological intervention is essential for facilitating consolidation, optimizing fleets, and eliminating intermediaries. Another key challenge is the shortage of talent in the industry. To capture the emerging growth opportunities, develop superior service efficiency and drive business, the logistic industry needs to build a strong talent pipeline. However, for that, the logistics companies must develop superior industry-academia to recruit talents as well as create convenient working conditions and formulate enabling policies and career progression plans to reduce attrition and retain talents. The industry needs to address these aspects as it has an enabling role to play in India’s journey to become a $7 trillion economy by 2030.”

Preparing for a progressive transformation near Kempegowda International Airport Bengaluru (BLR Airport), Bengaluru Airport City Limited (BACL) unveils investment plans for a two million square feet Business Park and 775 keys Hotel. In a positive stride towards sustainability and technological innovation, the biophilic-inspired Business Park by BACL promises smart workspaces within a vibrant public realm. Seamlessly blending work and play, the development aims to cater to the diverse needs of businesses and employees, offering a dynamic environment for growth and collaboration. The project’s most exceptional and breathtaking attribute lies in the Urban Forest, a lush oasis in the centre of the development. This green space will serve as a focal point, seamlessly blending indoor and outdoor spaces throughout the area. The upcoming Metro station in Airport City will provide seamless connectivity to the Business Park from the northern side, ensuring convenient accessibility. Rao Munukutla, CEO of BACL – a wholly owned subsidiary of Bangalore International Airport Limited (BIAL), spoke about the investment in the development of the business park. “This investment by BACL will propel our vision of transforming the Airport City into a bustling hub for businesses, knowledge-intensive zones, R&D centres and Global Capability Centres. With world-class infrastructure and a focus on sustainability, our goal is to create a thriving environment that nurtures growth, brings in job opportunities and makes a positive socio-economic impact on the region.” The transformative journey continues with the expansion of the hospitality and entertainment offerings within the Airport City – the Business Park will be accompanied by a Combo Hotel and a Concert Arena. Combo Hotel The Combo Hotel is poised to become one of the largest hospitality establishments in India. Comprising a total …

Nikhil Agarwal, President, CJ Darcl Logistics highlights, “Fluctuations in global trade policy is a challenge for global supply chains. The implementation of trade barriers, such as tariffs and quotas, disrupts the flow of goods, leading to delays, increased costs, and uncertainty in sourcing essential materials. Businesses must navigate this dynamic landscape by employing responses, such as diversifying supplier base or reshoring production, to mitigate these disruptions. India’s integration with export control exemplifies the complex interplay between national policies and the global trade environment. We, at CJ Darcl, believe that these policy changes can exert a broader influence on market dynamics, impacting factors such as industry competitiveness, consumer behavior, and the configuration of global value chains. To successfully navigate this evolving environment, businesses require a commitment to continuous monitoring of policy developments, proactive adaptation of strategies, driving resilience in the face of change.”

Vivek Juneja, Founder & Managing Director, Varuna Group opines, “Inefficient Transportation Management remains a challenge. Selecting appropriate transport modes and optimising routes can be complex. Partnering with top logistics companies in India can help overcome these challenges by optimising routes, reducing transit times, and minimising costs. Advanced warehouse services and robust inventory management is essential but often lacking. Modern technologies like automated storage systems, barcode scanning, and warehouse management systems (WMS) can significantly enhance inventory tracking and order fulfilment. Managing inventory levels to meet customer demand without incurring excessive costs is challenging. Advanced inventory management software can automate processes, provide real-time data, and help businesses maintain optimal stock levels. Lack of visibility in the supply chain can lead to delays and inefficiencies. Using GPS, RFID, and IoT technologies, top logistics companies offer real-time updates on shipments, improving planning and customer satisfaction.”

Vipin Vohra, Chairman, Continental Carriers shares, “One of the foremost challenges is infrastructure inadequacy, including outdated facilities and limited capacity at airports and terminals, leading to congestion and delays. This directly affects our ability to efficiently handle and transport goods. Despite the advancement of customs processing into fully online systems, the persistence of physical scrutiny of documents remains a notable bottleneck. The reliance on manual verification prolongs the clearance timeline, increases the risk of errors, and adds unnecessary costs for both businesses and customers. Furthermore, the lack of standardization and digitalization in processes across the industry creates inefficiencies and hampers interoperability among different stakeholders. This results in manual errors, communication gaps, and difficulties in tracking shipments, leading to customer dissatisfaction and operational challenges. Lastly, talent shortage and skill gaps in the workforce present ongoing challenges in maintaining high-quality service standards and innovation in our operations. Addressing these pain points requires collaborative efforts from industry stakeholders, and regulatory authorities to invest in infrastructure upgrades, streamline regulatory processes, and invest in talent development initiatives to drive growth and competitiveness in the Indian air cargo and logistics industry. Only through such concerted efforts can we unlock the full potential of the Indian air cargo and logistics industry, driving growth and competitiveness in the global market.”

Chaitaly Mehta, Director, EKF Global Logistics says, “There are many significant challenges faced by the Indian air cargo industry such as inadequate airport infrastructure and facilities, labour management, cargo capacity issues, compliances and regulatory requirements and their complexities, growing competition from other modes of transportation. This apart, Electronic Data Exchange (EDI) and Indian Customs EDI Gateway issues with frequent breakdowns, space issues, majorly fluctuating freight rates for air shipments, decreased margins and increasing competition for every industry stakeholder, geopolitical issues, route planning problems, which continue to affect the air cargo industry.”

Sanjay Gupta, CEO AISATS says, “To enable efficient cargo handling, storage and processing, crucial pain points such as limited transparency and lack of infrastructure need to be addressed. The AISATS Multi-Modal Cargo Hub (MMCH) and the AISATS BLR Logistics Park have been designed to address the pain points such as and The Integrated Cargo Terminal (ICT) at the MMCH will provide comprehensive cargo handling services under one roof and serve as a single point of contact for our customers while the MMCH’s Integrated Warehousing & Logistics Zone (IWLZ) will offer improved logistics and warehousing efficiencies through access to consolidation centers, a bonded warehouse, a dedicated trucking zone, light manufacturing and assembly facilities. With direct connectivity between the ICT and IWLZ, we can serve our clients with faster response times, greater operational efficiencies, lower transportation costs and reduced administrative overheads. The AISATS BLR Logistics Park will cater to the diverse needs required at Kempegowda International Airport and help the EXIM community, freight forwarders, supply chain companies etc. transport cargo from key catchment regions to domestic and international markets. Our MMCH and Logistics Park aim to make air cargo handling more transparent through enhanced visibility of cargo movements while offering greater cargo handling speed and flexibility to our customers through our state-of-the-art infrastructure.”

“We see that there is a greater demand for perishables from southern Indian points to Europe and North America. However, capacity for the mentioned points are constrained,” says Chaminda Perera, Head of Cargo, SriLankan Cargo “The carrier operates daily to India, with over 50 weekly flights. We serve nine points including main destinations such as Chennai, Delhi and Mumbai covering both the North and South regions. We contribute to the Indian air freight market by carrying pharma, courier and general cargo out of India and e-commerce freight into India for the northern and central Indian markets whilst uplifting perishable produce out of the southern region. We have been a strong connector of Indian and Japanese markets supporting both directions,” he adds.

According to a latest report by CRISIL Ratings, Revenue growth of road transport fleet operators is expected to double to 9-11 per cent this fiscal. It is driven by better domestic demand, and despite tepid exports. The operating margin is seen improving 75-100 basis points on better fleet utilization and steady fuel costs, the report adds. The credit profile of operators should remain strong as well, as they may look to moderate capital expenditure (capex) towards fleet expansion, following strong additions in the past three fiscal years, even as new guidelines for air-conditioned driver cabins kick in next fiscal. It said that steady working capital is also providing support. CRISIL analysed 45 large fleet operators in its portfolio, which account for a quarter of the industry’s revenues, to reach the findings. Nearly a third of freight demand emanates from export-oriented sectors, which, after decelerating last fiscal, is showing signs of improvement, in line with growth trends in India’s key export destinations – the eurozone and the US, stated CRISIL.

Multinational retail company, Lulu Group International is planning to open a logistics and food processing centre in Amritsar, Punjab. “Our group is intending to have a logistics and food processing centre in Amritsar for the storage, processing, grading and packing of various local agriculture and other produce,” said Salim M A, director of Lulu Group, in a press release. “Amritsar is known for its vibrant business environment and especially for its thriving small and medium enterprises (SMEs). The city will now be a part of our sourcing of local products which will greatly help SMEs, local farmers, agricultural cooperatives and farmers producer organisations,” he added. Lulu Group officials will be soon visiting Amritsar to discuss with SMEs and other suppliers to finalise this collaboration at the earliest, the release added. In India, Lulu has its logistics and procurement centres in different states from where it annually exports Rs 10,000 crores worth of more than 45,000 megatonne of agriculture and other products for its 270 retail stores spread across the Middle East, Far East and Africa.