Geopolitical tensions are badly affecting logistics: Logistics Industry Professionals

Hyderabad, March 22, 2024: The Federation of Telangana Chambers of Commerce and Industry (FTCCI) with the support of the MSME Department of the Govt of India hosted a second d edition of the International Conference on Shipping and Logistics (ICSL) at HICC in Madhapur on Friday.

Dr Vishnu Vardhan Reddy, IFS, Special Secy (Investment Promotion & External Engagement), VC & MD Telangana State Industries Infrastructure Corporation (TSIIC), Government of Telangana; Mr. Sanjay Swarup, IRTS, Chairman & Managing Director, Container Corporation of India Limited; Mr. Pradeep Panicker, Chief Executive Officer, GMR Hyderabad International Airport Ltd; Mr. Meela Jayadev, President, FTCCI; Mr Suresh Singhal, Senior Vice President of FTCCI and Kamal Jain Chairman of the Shipping & Logistics Committee of FTCCI graced the inaugural function

Giving his keynote address Dr Vishnu Vardhan Reddy said cities and civilisations rise, grow, and fall because of one thing who controls global trade. And Logistics is a lifeline of global trade. New centres of power are emerging. In the complex world of supply chain management, the geo-political situations are creating disruption, causing ripples across industries. These shifts are affecting the availability, cost, and reliability of essential goods and services, he said.

Besides this he spoke about two other disruptions, the  impact of Technology and Climate Change on the sector.

Dr Vishnuvardhan further said the Government of India is focusing on reducing the cost of logistics from double digits to 8 to 9% to be globally competitive. Accordingly, the government planned major projects such as Bharatmala which aims for road connectivity across the country while the other hand Sagarmala Project aims for the development of modernised ports along the coastline. And still, there is a lot to be done.

The industry must support the adaptation of technology and encourage startups in Logistics. Startups play a crucial role in logistics, Dr Vishnuvardhan said.

Speaking about the status of the sector in Telangana, he said besides facing the above three challenges, Telangana also faces the challenge of being a landlocked state. We are focusing on infrastructure while closely working with the union government. Being a landlocked state, Telangana is coming out with a Dry Port in the northern corridor of the state. The land required for it is procured. We are also working on Two to three additional dry ports to come up in future.

We are also coming out with Integrated Industrial Township. Hyderabad has the huge advantage of having an Outer Ring Road and similarly, the state will have The Regional Ring Road which is a 340-km long one that has four lanes and an access-controlled design. MSMEs play a huge role in logistics. The conference’s theme is appropriately chosen, said Dr Vishnu Vardhan Reddy.

Mr. Sanjay Swarup, IRTS Chairman & Managing Director, Container Corporation of India (CCI) Limited said logistics is as old as our civilisation. The first big step was the invention of the wheel which has increased the speed of the logistics. Logistics is a sunrise Industry. The government of India recognised its strength. The World Bank estimated the Indian logistics industry size to be US $ 380 billion. Logistics efficiency and cost play a very important role. CCI is working towards increasing efficiency and bringing down the cost. Now we have a presence in 65 locations.

Mr. Sanjay Swarup said logistics is a low-technology field. It doesn’t use much technology.  Technology infusion will increase efficiency. CCI has APP-based first and last-mile service. We are also introducing AI-based container management which will be replicated across all locations where we operate. We also focus on sustainable logistics and strictly adhere to ESG principles.

We have introduced LNG trucks for the first and last-mile movement of containers and EVs (Electric Vehicles) for internal movement in terminals. Telangana doesn’t have an LNG pump. Once LNG pumps come up, we will deploy LNG vehicles in Telangana.

We are keen to be part of Telangana’s growth story. We will increase our presence.

Pradeep Panicker Chief Executive Officer, of GMR Hyderabad International Airport Ltd, said in terms of volume air cargo handles just 2% of world cargo. However, in value terms, it handles 40% of the cargo., That is the beauty of air cargo.

An aerotropolis is a new phenomenon. It is a new kind of settlement occurring in many countries, including India. These kinds of settlements are mainly centred in and around large airports. GMR Airport is developing that concept, he said

The cargo terminal capacity this year at GMR is 150 tonnes. But it is only exporting. It is one way. The cargo players of any airport see the two-way load. He appealed to the shipping and logistics industry to explore the same. The cargo terminal capacity is being expanded to handle 3 lakh tonnes in the next two to three years.

The second cargo terminal is coming up at GMR, he said and shared that its capacity would be 50, 000 to 1 lakh tonnes.

Meela Jayadev, President of FTCCI, welcomed the gathering and said logistics are the backbone for the success of any product.

 Kamal Jain, Chairman of the Shipping & Logistics Committee of FTCCI said the theme of the conference is opportunities and challenges for a landlocked Telangana State.

The conference had four sessions. One session was on the changing landscape of logistics. The second one was Managing the Supply chain in a disrupted geopolitical environment; the third on navigating the future: and embracing opportunities and the last session on Facilitating trade through infrastructure development.

It was a multidisciplinary Mega Conference to share innovative ideas for facilitating better logistics management in the industry.

The world today has 68 conflict zones that are a great cause of concern said a panellist, participating in a panel discussion

More than 400 delegates participated from across India.

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