India’s economic growth is directly proportional to logistics efficiency: Ashok Shrivastava

Source: http://www.portwings.in/logistics/indias-economic-growth-is-directly-proportional-to-logistics-efficiency-ashok-shrivastava/

Port Wings News Network:

India’s economic growth is directly proportional to its logistics efficiency, Capt. Ashok Shrivastava, CEO, Allcargo Shipping, has said.

In an exclusive interview to Port Wings, Capt Shrivastava said, “The more connected, seamless, time efficient it is, the more the economy will benefit from it.”

“To realize the true potential of India as one of the largest economies, it needs to be supported by similar path breaking infrastructures, such as ports, especially road – rail – coastal shipping connectivity to ports,” he added.

Excerpts…

Q. Tell us about the potential of Coastal Shipping in India?

Capt. Ashok Shrivastava: “For a country like India, rising as the second fastest developing economy in the world after China and with a more robust government at the center under the leadership of a forward thinking prime minster, the entire economy is poised to see a surge of fast paced growth in coming years. This advantage is enhanced by our country’s strategic location and with over 7,000 kms of coastline as our border. Historically across developed nations in Europe, APAC and USA the economic activity has always been the result of an efficient logistics value chain of the country. This is also true for India. Logistics is the backbone of our economy and it will play a vital role in supporting our growth in the coming years. Demographically for India, road and rail have been the pillars of modes of transportation. But with more paced growth their development and connectivity is still lagging behind as compared to the demand and supply factors. Thus it is imperative that alternate medium such as Coastal Shipping is looked at in more proactive way to capitalize on this opportunity. Coastal shipping will be a game changer for India, because it is the fastest, efficient and most cost effective medium as compared to road and rail. It is also environmentally the safest. It can carry large amount of cargo which is not possible in rail or road at times. India’s landscape and coastline is more optimum for the mode. It can accelerate the efficiency of logistics within India and enhance our ability as a trade hub, catering to global markets.”

Q. India is projected to become the fourth largest economy in the world by 2020. How far can the current logistics infrastructure support this growth?

Capt AS: “India’s economic growth is directly proportional to its logistics efficiency. The more connected, seamless, time efficient it is, the more the economy will benefit from it. To realize the true potential of India as one of the largest economies, it needs to be supported by similar path breaking infrastructures, such as ports, especially road – rail – coastal shipping connectivity to ports. It is of paramount importance to make EXIM trade reach its potential in India. Similarly GST and a single window clearance for all trade leading to imports and exports have to be brought about in our economic system. Best practices in terms of policies, SLAs and technology infrastructure will also play a very important role in making India the economic giant it is destined to be.

Q. What kind of investments in our nation’s coastal sea routes would bring substantial benefits to the economy?

Capt AS: “The answer for this question has to be holistic in nature and needs to encompass the larger vision for the nation. If we want to be the global trade hub of the world, then investment in ports, road, rail and coastal shipping has to be looked as a common thread of effectiveness and policy making. And most important it has to move out of an absolute figure, to be a percentage of the GDP.”

Q. The new government at the Centre is pitching for diversion of more road-bound cargo. How it will affect the existing scenario?

Capt AS: “The government is looking at a more robust and long range solution to the demand, thus they are looking at making all modes effective. Road being the largest medium of transportation, it still has to support about 60 % of movement, thus that needs to be focused on to maintain the trajectory. At the same time rail as well as coastal shipping will also be given the more important focus as well attention it needs to make it more mainstream and bringing the required efficiency in our country’s logistics value chain.”

Q. Will the EU model of Coastal shipping be implemented in India?

Capt AS: “EU represents a very different demography and economic potential. India in contrast has its own unique qualities, opportunities and challenges. Thus we should learn from their experience, best practices and adopt the same for making our coastal shipping requirements and infrastructure more efficient.”

Q. Tell us about the importance of Coastal Shipping for a country like India?

Capt AS: “Coastal shipping will be a game changer for India, because it is the fastest, efficient and most cost effective medium as compared to road and rail. It is also environmentally the safest. It can carry large amount of cargo which is not possible in rail or road at times. India’s landscape and coastline is more optimum for the mode. It can accelerate the efficiency of logistics within India and enhance our ability as a trade hub, catering to global markets.”

Q. Given the renewed pitch for International Transshipment facility in India, how the coastal shipping could help?

Capt AS: “Transshipment is an important variable in boosting India’s stature as an EXIM hub. Once the cargo comes into the country it needs to be moved across the cluster of hubs pan India. Thus coastal shipping will immensely benefit from the perspective of increased transshipment movement into and out of India. In addition to EXIM, coastal shipping will be more effective in moving project cargo i.e. over sized over dimensional cargo which are required for core industries such as power, oil & gas, urban infrastructure, mining, cement, steel, minerals etc.”