Cargo Breaking News
The National Logistics Policy (NLP) launched recently by Prime Minister Narendra Modi will help India propel itself into a top manufacturing and sourcing country globally. Acknowledging the same, Manu Raj Bhalla, President, the Warehousing Association of India (WAI) said, “The policy encompasses all aspects of the supply chain such as transportation infrastructure and technology to provide cost-effective, sustainable, and robust multimodal solutions with real-time visibility to industry stakeholders. The policy will complement the PM Gati Shakti National Masterplan, will facilitate investment in warehousing and logistics infrastructure, dovetailing into Make in India alongside the Aatmanirbhar Bharat initiative.” He added, “The vision is to develop a technologically enabled, cost-efficient, resilient, sustainable, and trusted logistics ecosystem for accelerated and inclusive growth. The policy includes a detailed action plan to achieve a reduction in logistics costs in India, to be in the top 25 countries in the Logistics Performance Index ranking by 2030, and to create a data-driven decision support mechanism for an efficient logistics network. Several initiatives under the policy, including the Unified Logistics Interface Platform (ULIP), the Ease of Logistics Services platform, an e-handbook on Warehousing, training courses on PM Gati Shakti Masterplan, and logistics on i-Got, were launched along with the NLP. All these initiatives will help facilitate the digital transformation of the Indian logistics and supply chain ecosystem, thus enabling integration with the global value chains in an efficient and cost-effective manner,” said Bhalla.”
Agreeing with Bhalla, Arif A Siddiqui, Vice President WAI said, “To develop a technologically enabled, integrated, cost-efficient, resilient, sustainable, and trusted logistics ecosystem in the country for accelerated and inclusive growth. This vision will be achieved by Integrating the modes of transport, Optimization of the utilization of logistics infrastructure, Standardization of processes and service quality, Modernization of technology and upgradation of infrastructure and formalization to reduce fragmentation in the sector. This will lead to Reducing the cost of logistics in the country, Improving Logistics Performance Index (LPI) and creating a data-driven decision support mechanism for an efficient logistics ecosystem. One of the strategies close to me for achieving the above objectives will be to enable the development of a comprehensive world-class warehouse infrastructure that will facilitate the improvement in efficiency, productivity, and service quality by standardization of specifications and use of technology, automation, and digitization of the operations. On the other hand, development of a robust framework for logistics parks to streamline approval processes to facilitate investments.”
According to Parag Warerkar, Chair of Technical CommitteeWAI, National Logistics Policy paves the way for India to have a fully integrated ecosystem for the development of the Logistics and Warehousing industry. An ecosystem that accounts for accelerated and integrated growth is essential to the Indian economy. “There are some key deterrents that need to be addressed if we wish to execute NLP, first is the issue of land acquisition. Logistics and warehousing hubs need to be an integral part of city and industrial estate development plans. At present, land for large hubs needs to be acquired from agricultural holdings and land use converted, causing delays in setting up facilities due to numerous and complicated government approvals. The solutions to be explored are, can the ministry called on the various planning departments to incorporate this suggestion in the development plans for infrastructure development? Integrating and allocating land and infrastructure will greatly ease the process of setting up logistics and warehousing parks for private players. Accounting for existing issues such as land acquisition will help capitalize on the industry’s growth and ensure the successful implementation of the National Logistics Policy,” said Warekar. Meanwhile, S A Mohan, Founder Director, WAI said, “The National Logistics Policy is the first step towards a unified approach to the Logistics Industry. There are several elements in logistics such as multimodal transportation, warehousing, and related Infrastructure. NLP has specifically set out the agenda for Digitization, and Unified Platform, all of which are directed towards a transparent system visible to stakeholders across all modes of transport and regulatory authorities. As the platforms go live, ease of doing business will be enabled resulting in improved efficiency and speed. Cost of logistics will drop over time when the overall system begins to function seamlessly.”
He added, “Modern Warehouse Infrastructure is another significant element for efficient logistics and growth of the economy. The release of the E-Handbook for Warehouse in collaboration with the Warehouse Association of India is the first step towards the standardization of Warehouses. The handbook is a key resource for the development of Modern Warehouses for developers and related stakeholders including end users. Along with the development of Modern Warehouses, size and scale will be significant to drive improved efficiencies in operations and costs. Well-designed, safe Storage Racking & Shelving Systems, efficient Material Handling Equipment, Conveyors, High-Speed Sortation Systems, Cargo Lifts etc., will facilitate cost and operational efficiencies at scale for Warehouses. Modern Warehouses will allow the deployment of Automated Material Handling solutions. Automation is available from entry-level to sophisticated solutions depending on business needs. In summary, NLP and E-Handbook for Warehouse is a good beginning to develop Logistics Infrastructure for India’s growth towards US$ 5 Trillion Economy and beyond.”
Mohit K. Kapoor, Chair – The Events Committee at WAI also shared his views and said, “Logistics is considered as the backbone of a country’s economic ecosystem and for the fastest growing market like India, which is expected to grow at a CAGR of 10.5 per cent, it was imperative to be given utmost importance to achieve the futuristic target of a $5 trillion economy, creating PM Narendra Modi’s #Atmanirbharbharat vision. Despite enormous potential, the largely unorganized and highly fragmented Indian logistics sector was further hampered by a complicated and non-unified regulatory system that was impeding its desired and realistically possible growth. NLP is a comprehensive long-term plan designed to achieve international standard efficiency in services and bring down the high 12-14 per cent logistic costs to single digit before 2030, thus enabling a rank among the top 25 nations in the Logistic Performance Index (LPI).
Enlisted are key points to make India a logistic hub:
• Seamless, resilient, cost-effective long-term streamlined ecosystem
• Current multimodal connectivity accounting for roads 60%, railways 30 % and waterways 5% will be duly balanced.
