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60% of India’s logistics need fulfilled through roads: Report

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The heart of India’s logistics transport system lies in its widespread and robust road network, occupying a notable share of 60% in the entire logistics transport system in contrast to the global average of 30-40%, as mentioned in the latest report published by JLL Industrial Services Research titled “India: Evolution of Integrated Logistics – Aiming Transformation Through PAGI”  at the CILT India Expo 2019 held at the National Rail Museum in New Delhi.

The report featured the growth of the warehousing sector with respect to the surge in domestic and foreign investors. It stated that the warehousing sector has witnessed around 8 mn sq.ft. of absorption in 2019 alone. The research paper primarily stressed on the importance of the road transport for connectivity of production houses to consumer and warehouse and how to optimise the use of roads by improving hinterland infrastructure and storage space.

The Central Government is planning on devising a comprehensive plan to invest in major infrastructures ports, airports and rail among others with an estimated investment outlay of about INR 100 lakh cr by the next five years.

The report also talked about the need to achieve cost efficiencies via specialisation and consolidation of storage and modes of transport. This would pertain to logistics facilities, private freight terminals, dry ports (ICDs/CFS), waterways terminals and specialised storage spaces like cold storage etc. The report also foresees rail linked logistics facilities for multi-modal connectivity to be the major focus for future logistics sector development.

Yogesh Shevade, head – industrial services, JLL India stressed on India’s booming growth in the domain of logistics and warehousing over the past decade and how it did not come as a surprise, owing to the many projects and steps that were taken towards it.

“India’s road, rail, port, airport and inland waterway added a new dimension in the growth story comprehensively for the Government-sponsored Bhartmala, Sagarmala, Jal Marg Vikas Project, Railway station re-development etc. creating a huge platform for future expansion of logistics infrastructure,” Shevade pointed out.

Taking about the much-awaited National Logistics Policy, he said, “Through the National Logistics Policy, the Central Government is focusing on development of fully integrated logistics network with modern technology and automation.”

Shevade also announced how JLL Industrial Services is launching Port, Airport and Global Infrastructure (PAGI) Practice in keeping with the recent developments in this sector. This, he believes, will aim at multi-dimensional service opportunity for global and domestic clients alike.

The report also stresses on the need for prioritizing security and transparency in the sector. It underlines the obstacles that lie on the path of creating efficient last-mile connectivity and making land available to develop financially sustainable logistics infrastructure, capacity building for human resource, and investment-friendly policy framework for attracting private capital for the sector. The need for faster commercial regulations was also highlighted, along with the pressing need to achieve cost and time-efficiency and minimization of in-transit losses.

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