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How Logistics Park will bring down costs in India







The Modi Government has approved a plan to build 34 new logistics parks in India. It is also investing almost 2 Lakh crores for it. Some of the areas selected for Phase-1 are Bengaluru, Chennai, Guwahati, Hyderabad, Surat, Nagpur and Vijayawada.

How will it help in bringing down overall logistics cost:

  • Optimization of warehouses to reduce burden of private companies.
  • Multi-modal transport- clubbing rail, road and airways for seamless movement of freight across all states.
  • Logistics Park will also provide value added services like customs clearance, bonded storage yards, warehouse management services, quarantine zones and testing facilities.
  • Increase in the movement of freight transportation will reduce logistics costs by almost half.
  • Logistics parks will also have provisions for final assembly, grading, sorting, labelling, packaging activities and return management.
  • As per Nitin Gadkari (Hon’ble Transport Minister): “Logistics Parks will act as freight aggregation and distribution hubs and enable long haul freight movement.”


By Kanika Adlakha

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GST image

The Union Finance Minister Shri Arun Jaitley launched a mobile app “GST Rates Finder” which is available on android platform and will soon be available on iOS platform as well.  This Mobile app helps users to find rates of GST for various goods and services. It can be downloaded on any smart phone and can work in offline mode, once downloaded.  The user can determine the GST rate for a good or a service by entering the name or Chapter heading of the commodity or service.

GST rate finder can be accessed on CBEC’s portal to help the taxpayers know the applicable GST rate on their supplies of goods and services.(courtesy: PHD Chamber of commerce).


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Traffic shoots up at all major Indian ports

MICT Manila Philippines


This April –May 2017 recorded an almost 6% increase in traffic at all major Indian ports.

India has 12 major ports namely, Kandla, Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambarnar, Vishakhapatnam, Paradip and Kolkata. These all ports handle 61%of total cargo of India.

Due to the increase in demand from sectors like iron ore, fertilizers, coking coal etc. from last two months all major ports are witnessing an upsurge in traffic. The highest traffic was recorded at Kandla port at 18.86 MT while Paradip port stood second with 16.19 MT


By: Kanika Adlakha

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Be smart and save on logistics costs

Logistics is a very important part of any business. It has a deep impact on the sales, market share and the reputation of the company. Logistics can be a costly affair but with some careful moves one can be smart enough to save costs on logistics.

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How expansion of Panama Canal will save costs for Asian trade

According to the latest updates nearly 5 billion US dollars have been invested in the expansion of the Panama Canal which will be ready to handle a new type of ships by early 2016. These ships are being called “Post Panamax ships” (their size is twice as large as the biggest ships ever). These ships will have the capacity of handling up to 15000 containers which is 5000 containers at present.

Some of the main points which will impact Asian trade routes are:

  • Till now Asian trade route has been using ports of Los Angeles, Long beach, Oakland, and Seattle in West coast from where the containers are transported through train/trucks till the East coast.
  • Widened canal will save the costs of the shipments meant for eastern coast as they will have to travel less and can be sent directly to east ports.
  • New eastern ports which will be able to handle Panamax ships are: Miami, Norfolk, New York and Baltimore.


A new ‘ triangular trade route’ is being expected which will be :

  • Flow of Consumer goods from ASIA-NORTH AMERICA
  • Pharmaceuticals from NORTH AMERICA-SOUTH AMERICA
  • Coal and iron ore from VENEZUELA/BRAZIL-CHINA

It can thus be concluded that widening of Panama Canal will save costs for imports/exports of the North America-Asia trade route.

By Kanika Adlakha

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Why Logistics is important for ‘Make in India’

The coming years are projected to be good for the logistics industry if PM’s “Make in India” project takes of successfully. It has rightly been labelled as –“mass production and production by masses”.

Inviting foreign companies to ‘make in India” will require a solid base of the logistics industry as distribution will play a key role after the manufacturing of product.

Some of the important points which will impact Logistics in a big way are being discussed below:

Rail Corridors: If dedicated freight trains can be run on time tables like the passenger trains and the frequency of such trains is increased, then a lot of time will be saved between port and inland cities like between Mumbai-Delhi. Time can be drastically reduced from 60 hours to just 18 hours.

Warehousing: Rail corridors will lead to industrial corridors which can be located on-route. Warehouses can be set up along such industrial corridors instead of being scattered all over the country.

GST: Implementation of GST will be two-fold beneficial. Firstly, it will reduce the overall logistic cost and secondly it will give the option to choose warehouse as per the logistics flow instead of being located in the states which are tax optimal.

Red Tapism: The present turnaround time for a vessel in India is 4 days approximately while it should be maximum 1-2 days as per global standards. If the manufacturer is not able to supply goods on time to his global customers then no foreign company will be ready to come to India. Here, red –tapism is the main culprit which should be removed along with endless documentation procedures.

It can thus be concluded that logistic industry should be put up in right order if “Make in India” project is to succeed.

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