1. Logistics Conclave - 2014 Objective being discussions on opportunities and challenges in different facets of Logistics sector and further deliberations on its way forward.

2. Overview of Indian Logistics Industry Multi-Modal Logistics Cold Chain Industry Warehousing

3. Multi-Modal Logistics “The chain that inter-connects different links through more than one mode of transport – air, sea and land into one complete process that ensures an efficient and cost-effective door-to-door movement of goods under the responsibility of a single transport operator (Multi-modal transport operator), on one transport document”.

4. Key Issues in Multi-Modal Rail Freight – (i) Highest freight tariffs. (ii) Lack of reliability and tractability. (iii) Deficient in terms of quality and operations. (iv) Burden of Govt. duties and taxes. Rail Freight – (i) Highest freight tariffs. (ii) Lack of reliability and tractability. (iii) Deficient in terms of quality and operations. (iv) Burden of Govt. duties and taxes. Road Freight – (i)Poor quality of roads and network connectivity. (ii) 40 % delays due to frequent stoppages at check- posts. (iii)No stringent criteria for business start-up. (iv) Intense competition due to large no. of small and unorganized players. (v) Economics on diesel price hike. (vi) RFI – Road Freight Index. (vii) RFID (Radiating distance frequency integrator.) Road Freight – (i)Poor quality of roads and network connectivity. (ii) 40 % delays due to frequent stoppages at check- posts. (iii)No stringent criteria for business start-up. (iv) Intense competition due to large no. of small and unorganized players. (v) Economics on diesel price hike. (vi) RFI – Road Freight Index. (vii) RFID (Radiating distance frequency integrator.)

5. Air Freight – (i)Absence of integrated cargo infrastructure. (ii) Need for technological up gradation. (iii) Need for streamlining customs procedures. (iv)Need to formulate performance-based service. Air Freight – (i)Absence of integrated cargo infrastructure. (ii) Need for technological up gradation. (iii) Need for streamlining customs procedures. (iv)Need to formulate performance-based service. Sea Freight – (i)High turnaround time of vessels. (ii) Delay in co-ordination between ports and Customs. (iii)Navigation channel restrictions berthing of bigger vessels. (iv) Poor Hinterland connectivity, poor port –and land-side infrastructure. (v)Absence of latest technology and mechanization. Sea Freight – (i)High turnaround time of vessels. (ii) Delay in co-ordination between ports and Customs. (iii)Navigation channel restrictions berthing of bigger vessels. (iv) Poor Hinterland connectivity, poor port –and land-side infrastructure. (v)Absence of latest technology and mechanization.

6. Suggestions in GHCL Parlance Creating warehousing facility close to rail yard. Mechanized truck loading at plant to reduce loading time. Mechanized loading of wagon or container. Developing Container rail terminal in Adri or Savni road.

7. Creating warehouses closest to ports in all major selling destinations like Mumbai, Haldia, Chennai & Tuticorin Creating GST hubs. Mechanized spacious warehouses with full fledged automatic operations and complete IT integration. Usage of bulker for short distance. Tracking of movement through GPS system. Developing container loading station at plant location.

8. Sea transportation: We must have a port in close proximity to plant to facilitate movement of raw materials and finished goods both. Port must have following infrastructure: 1.Deep draught of 10-12 meters. 2.Large backdrop area for in-transit storage. 3.All weather 24*7 operation. 4.Latest handling solutions. 5.Fast turn-around time. 6.Environment friendly mechanized handling. All the industries in our vicinity may move on a common platform put Chhara project on fast-track. Sea transportation: We must have a port in close proximity to plant to facilitate movement of raw materials and finished goods both. Port must have following infrastructure: 1.Deep draught of 10-12 meters. 2.Large backdrop area for in-transit storage. 3.All weather 24*7 operation. 4.Latest handling solutions. 5.Fast turn-around time. 6.Environment friendly mechanized handling. All the industries in our vicinity may move on a common platform put Chhara project on fast-track.

10. Inputs on Multi-Modal % age of Rail, road, sea of India v/s US and China

11. 2) Vision - year 2020 It is expected that by the year 2020 majority will be container movements. Road movement – higher loadability. Anticipations are: (i)Road – 25% downfall (ii)Rail – 20% increase (iii)Water-ways / Sea - 20% increase

12. 3)Current Multi-Modal transport average speed is 30 km/hr which accounts for the following pitfalls: (I)High working capital (II) Down-time (III)Considerate increase in fuel consumption (IV)Growing man-hour cost (V)Increased scope of wastage

13. 4) India’s overdependence on Road

16. Warehousing Warehousing forms an integral part and a crucial link in supply chain. It refers to the safe storage of products, onward piece-meal distribution, sourcing for replenishment of stocks and catering customer needs at optimum cost. In supply chain different kinds of warehousing needs are defined viz. Logistics park, Free trade warehousing, Cold storage, APMCs, etc and only 25% are governed by WDRA.

17. Inputs on Warehousing Multiple business models exist within the Warehousing industry. The key segments are : (i) Industrial / Retail Warehousing – 55% share. (iii) Cold Stores – 16 % share. (iii) Agri-Warehousing – 15 % share (It has been growing at a 10%-12% rate over last 3 years). (iv) CFS/ ICD – 14 % share.

18. Challenges in Warehousing Lack of sufficient physical infrastructure. High dominance and fragmentation of unorganized players. High cost of credit. Lack of adequate scientific storage and inefficient logistics management.

19. Regional imbalances in warehouse. Existence of time lag. Limited adoption of modern systems and technologies. Intricacy in tax structure for inter-state movement.

20. Suggestions in GHCL Parlance GST implementation is in advance stage, GHCL will have to create its own scientific warehouses at major consuming sectors in order to have long term benefits. Labor availability will be a crisis. Mechanization and automation is the need of the hour. The early we adopt, the better for us in our own warehouses.

21. Warehouse infrastructure with latest amenities is very capital intensive hence outsourcing is recommended. From the point of manufacturing till products reaches to the customer, our products/ bags are usually handled six times or more. As a result beside cost increase, there is pilferage on account of handling and transit losses. Thereby, skill development, scientific storage, adoption of global standards, IT integration are required for efficient warehousing activities.

24. Thanks!!!