‘Inefficiencies in transport system, multimodal connectivity main concerns’

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.”