Cargo shippers and logistics service providers deliberated on the logistics challenges and how they could be overcome
At the outset, A Narender Babu, DGM – Construction, Indian Oil Corp., detailed out the challenges faced by liquid cargo. Detailing on their distribution network he said, the Paradip – Hyderabad pipeline of IOC is especially earmarked for tapping the Hyderabad market. It has a total 4.5 million tonne capacity. A major issue hampering the progress of the pipeline work is land acquisition. Another problem is the challenges in obtaining statutory permissions. The Telangana government has been very proactive and supportive so far in getting approvals and land acquisition, revealed Narender Babu.
Neeraj Harkut, Founder & CEO, Home Affairs, elaborated on the logistics challenges his company faces. A major issue is the connectivity of shipping lines is very less. Telangana is deficient in rail connectivity as compared to Maharashtra and Gujarat.
“Logistics has a direct impact on the company’s bottom line,” remarked Capt Saurabh Mathur, CEO, Continental Multimodal Terminals Ltd. He reflected on the infrastructure status in the country: Warehousing space in the country will reach to 20 million square feet in the coming years and logistics industry is expected to peg at Rs.2 billion by 2019, buoyed by the new highways and DFCs coming up. A major challenge is lack of intermodal transport due to which most of the freight moves by road. “A major advantage of this state is the low cost of operation, which is always lesser than the port cities,” said Kamal jain, Director, Cargomen Logistics India Pvt Ltd. “If we are able to connect our cargo to the vessel in the right time, for instance if cargo from Hyderabad connects to ports in 48 hours then we are at an advantage,” suggested Kamal. “80 per cent of the cargo from this region is moving to Nhava Sheva, so there is need to create value for customers at the ports on the east coast in the form of infrastructure, low logistics cost,” suggested Capt Inderpal Singh, Vice President – West, MSC Agency (India) Pvt Ltd. A significant trend is that lot of cargo from Hyderabad to Nhava Sheva is moving through road. Telangana lacks availability of empty containers and the dwell time for boxes moving from Nhava Sheva into Hyderabad is 20-25 days. If empties are not available then naturally cargo will start moving by road.
“Apart from distance what else decides the time and cost efficiency in logistics is connectivity,” averred D Satyanarayana, IRTS, Senior General Manager, Concor. Another major factor is the volumes. If 80 per cent of cargo from Hyderabad moves to JNPT then congestion problems are bound to happen, particularly when rail services between Hyderabad and JNPT are mostly single line. On the eastern coast of India ports are well developed with good infrastructure, so the transit times and cost efficiencies are definitely there. Towards the conclusion of the session, Vinita Venkatesh, Director, Krishnapatnam Port Container Terminal, presented before the gathering “advantage Krishnapatnam” and the benefits of using ports on the east coast. A major attraction was the launch of “Cold Box” by Foster Mc- Donald, CEO of Cold Box Express. This is a revolutionary product being released in the Indian market for moving reefer cargo.
