India lags behind in logistics concept: Dr. Venkataraman

July 15, 2009 11:30 am

India has a long road to travel for developing logistics concept. The development strategy includes brainstorming on issues ranging from quality, pitfalls, coordination and development of logistics parks in India, said Dr. C B S Venkataraman, IAS, Joint Director General of Shipping, Government of India.
 
He recently spoke at the 1st Interactive Seminar on Logistics Parks; World Class Logistics Parks for India, organized by the CII Institute of Logistics, a Centre of Excellence established by the Confederation of Indian Industry. A report titled, ‘The Future of Multi-Modal logistics parks in India’, done by Amarthi consulting, knowledge partner was released during the session. The study outlines how best India can improve the logistics industry to bring in a multiplier affect. It has information about the industry growth scenario, best practices, and details logistics players in India.
 
Dr. Venkataraman further stated that presently due to high cost associated with logistics the consumer is paying more and producer of getting lower price of their merchandise. The logistics cost dents an enterprise’ prospects to flourish. Hoping to get closer in industry’s development, he assured to convey the concerns highlighted during the session to relevant ministries.
 
Ajay Chopra, CEO, Drive (India) Enterprise Solutions. Ltd, Tata Enterprise, urged the government to consider logistics as an industry. According to him the Indian logistics market is expected to grow annually at the rate of 8-10 per cent till 2015. The way forward for the industry is to have improvement in logistics linkages. As India is at a bottom line of emerging and developing markets, facilities like logistics parks, well planned warehousing etc., can help the industry come of age. Besides sufficient policy initiative should be undertaken for the industry to have excise duty exemption, delivery time reduction, support facilities, service cost mediation, etc. 
 
Sudhir Rangnekar, Event Chairman, Former Director SCI, stated that logistics should not only be seen as means of cost reduction, but as a strategic enabler. The global logistics industry is pegged at $5,000 billion of which India is $1,000 billion market. Although substantial improvement has been made in the sector; private sector has also started to venture in logistics but we are yet to reach the best logistics standards in the world.
 
He pointed out that India stands second globally with 3.83 km road stretch, out of which 2 per cent is the national highways which carrier 40% traffic. Around 80 per cent of the roads in India are village roads. The World Bank report marks India poor on the quality of roads. Additionally India has 63,000 km railways track, 128 airports, 187 non-major and intermediary ports. India therefore stands strong in numbers but poor in quality.
 
Dr. Sarita Nagpal, Deputy Director General, CII, opined that infrastructural development should be accompanied by improvement in logistics. She highlighted that the concept of logistics parks, mooted in the session will being in a revolution in Indian logistics environment.