Cost-cutting logistics policy a welcome measure: AP Chambers

Vijayawada(NTR District): Andhra Pradesh Chambers of Commerce and Industry (AP Chambers) welcomed the national logistics policy unveiled by Prime Minister Narendra Modi to set a goal to trim the country's logistics costs from as much as 13-14 per cent of its gross domestic product (GDP) to a single digit over the next few years.

President-elect Potluri Bhaskara Rao appealed to the Prime Minister in a submission here on Sunday that it is imperative to reduce the logistics cost in India for improving the competitiveness of Indian goods both in domestic as well as export markets. The renewed thrust on reducing logistics costs assumes significance, as the country aims to substantially raise its merchandise exports to $1 trillion by FY28 from $422 billion in FY22. The policy is likely to change India's logistics sector, boost seamless movement of goods and reduce carbon footprints. The policy also likely to bring down the transportation, warehousing and inventory costs, which will consequently reduce the overall logistics cost down to around 8% of GDP in the next five years. The policy is also expected to generate massive employment opportunities and address skill issues in the sector.

The PM GatiShakti—National Master Plan for multi-modal connectivity—launched by the Prime Minister last year, was a pioneering step in this direction. PM GatiShakti will get further boost with the launch of National Logistics Policy, will act as a 'double engine' to transform the state of the country's logistics sector.

However, the AP Chambers suggests certain measures for the development of logistics Sector in the country and particularly in AP including development of Multimodal Logistics Park in all the nodes of industrial corridors passing through Andhra Pradesh i.e VCIC and CBIC corridors, early completion of the Railway new freight corridors as envisaged by the union government –East Coast corridor from West Bengal's Kharagpur to Vijayawada and North South sub-corridor Vijayawada-Nagpur- Itarsi (Madhya Pradesh), AP is the gateway to South East Asia with four major ports and six more ports under development along the 1000-km coast line of the State. Development of hubs like Air Freight Stations, Inland Container Depots, Container Freight Stations, cargo terminals, which are hubs for intermediary activities (storage, handling, value addition, inter-modal transfers, etc.) in the supply chain will help and promote AP as South East gateway for International Trade, completion of National Waterways (NW-4) project from Kakinada to Pondicherry to reduce transportation costs, the Indian container manufacturing industry is in its beginning stages. The country is still dependent on China for its shipping container supplies. There is an urgent need to promote container manufacturing in India and also to develop world class supply chain and logistics companies like UPS, FEDEX, Maersk, API etc to reduce over dependence on those global firms and AP has the biggest natural advantage to become the logistics hub, since major National Highways, National Railways,

National waterways NW- 4 (under development), major airports traverse almost together side by side all along the 1000-km coast line linking the Major Sea ports and also new sea ports under development.

The AP Chambers requested the prime minister to consider these suggestions to develop AP as the major logistic hub to promote the State as South East Gateway of the country for international trade.