National Logistics Policy is launched to provide a ‘cheetah speed’ to the industry

Apace Digital Cargo presents a first-hand report on the views gathered from the industry veterans??

Finally, India has a National Logistics Policy (NLP). The policy aims to achieve quick last-mile delivery, end transport-related challenges, save time and money of manufacturers, and prevent wastage of agro-products. The end result is significant time, cost reduction and improved export competitiveness.?

Unveiled by Prime Minister Narendra Modi on 17th September, the NLP aims to not only promote seamless movement of goods across the country, but also improve its competitiveness of Indian goods in domestic as well as global markets. According to the Prime Minister, the policy "has not come out of the blue and there are eight years of hard work behind it". To improve connectivity, the government has been doing systemic infrastructure development through schemes such as Sagarmala, Bharatmala, Dedicated Freight Corridor.

Considering India to be the 5th largest economy in the world, this policy was inevitable. A policy alone cannot contribute to the growth of the Nation, it requires the entire sector to work in unison to bring about growth. He stated that Policy + Performance = Progress. He mentioned the release of the Cheetahs and the National Logistics Policy on the same day in the context of goods to be transported between endpoints at the cheetahs speed.?

Better mobility via widening the network of highways and expressways is expected to lower the share of logistics costs in gross domestic product to single digit from 13-14 percent now. The NLP will focus on components such as world-class infrastructure, modern warehousing, digitalisation, regulations, tracing and tracking, ease of arranging shipment, and timeliness. With an eye on enhancing integration with regional and global value chains, it will have sector-specific logistics plans on coal, steel, fertiliser, food grains, cement, and port connectivity.

There would be four critical features: Integration of Digital System, Unified Logistics Interface Platform, Ease of Logistics Service Portal, and System Improvement Group. The NLP will also focus on creating a more transparent system with digitalisation, simplify trade documentation, improve the quality of warehouses across India, and stimulate regional growth.

This is not sufficient. There is a lot more to say and share about this historic move. APACE DIGITAL CARGO presents you the first-hand report on the views shared by industry veterans on the National Logistics Policy.?

Shankar Shinde , Chairman, FFFAI - FEDERATION OF FREIGHT FORWARDERS' ASSOCIATIONS IN INDIA -?

“Desh ki Pragati ko Gati” will be provided by the National Logistic Policy, released by our Hon’ble Prime Minister Shri Narendra Modi Ji at Vigyan Bhawan, New Delhi on Saturday the 17th September 2022.

FFFAI congratulates and appreciates the efforts of the government of India for the launch of National Logistics Policy by our Prime Minister Narendra Modi ji to have seamless movement across all modes of transport, thereby leveraging through PM Gati Shakti and ULIP with digital innovation E-Logs to be at the speed of Cheetahs!

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M Afzal Malbarwala , President, The Air Cargo Agents Association of India (ACAAI)

It is a great gift to the Logistics industry by our PM on his birthday. His vision and? his thoughts are very much an inspiration to the industry. He asked the industry - “I have given you a policy, you have to perform and show progress for the country which is a booster for the industry.” He praised the industry for the support and work done in the pandemic. His mention about releasing cheetah today and the logistics industry you will also run like cheetah to prove yourself. It was an honour and inspiration to hear from such a great visionary. We the industry should take this opportunity and work. Today with this policy, we are at par with any other country. Hon PM also mentioned you need anything we are here to support you. Industry pandits are sitting here and I am sure you all will take the advantage.

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Yashpal Sharma , President, Air Cargo Forum India (ACFI) India

Witnessed very promising words from the leader with respect to his vision for boosting the logistics sector and economy at large. His great reference to the release of Cheetah and Logistics Policy on the very same day was timed very well. His aim for the Logistics industry to add speed of a Cheetah to our economy is par excellence.?

The key action plan of the NLP are :

(i) Integrated Digital Logistics Systems: Develop a system of unified logistics interface to link multiple data sources and develop cross sectoral use cases for logistics stakeholders.?

(ii) Standardisation of physical assets & benchmarking service quality standards: Enhance interoperability, minimize handling risks, undertake process optimisation, and improve ease of doing business, through standardisation of physical assets and benchmarking of service quality standards in logistics.

(iii) Logistics Human Resources Development and Capacity Building: Develop an overarching logistics human resource strategy and under its guiding principles, line ministries to develop action plans to address skill development related and internal capacity building challenges in the respective sector.?

(iv) State Engagement: Provide support for development of state/city level logistics plans, set up institutional framework to take action at city/state level, measure and monitor action by states and rank them.

(v) EXIM (Export-Import) Logistics: Addressing infrastructure and procedural gaps in India’s EXIM connectivity and create efficient and reliable logistics network, with transparent and streamlined cross-border trade facilitation, for improved trade competitiveness and greater integration of India with regional and global value chains.

(vi) Service Improvement framework: Improving regulatory interface to enable seamlessness between sectors, promote standardisation, formalisation, interoperability; eliminate fragmentation in documentation, formats, processes and liability regimes; reduce gaps in regulatory architecture.?

(vii) Sectoral Plan for Efficient Logistics: Sectoral Plans for Efficient Logistics (SPEL) aligned with PM GatiShakti, will be developed for each sector with underlying philosophies of inter-operability, resiliency, sustainability, and innovation.?

(viii) Facilitation of Development of Logistics Parks: Logistics parks (eg. Multi Modal Logistics Parks, Air Freight Stations, Inland Container Depots, Container Freight Stations, cargo terminals, etc.) are hubs for intermediary activities (storage, handling, value addition, inter-modal transfers, etc

We at ACFI are very excited about the focus of the Government of India on Logistics over the last few years and these initiatives like PM Gati Shakti and National Logistics Policy will surely convert this excitement into action road-map. We will work on key aspects related to Air cargo and collaborate with MOCA and other ministries and regulatories to achieve the key targets of NLP and PM Gati Shakti.

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Cyrus Katgara , Partner, Jeena & Company -?

A very good policy on logistics, which is one of the key drivers of the Indian economy. As part of the Air Cargo forum India, we will give full support. India has great laws, policies but the key factor would be implementation. Wish PM Modi and team all the best for good implementation.

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Vipin Vohra , Chairman, Continental Carriers PVT LTD ?

Continental Carriers extends a sincere thanks to the Hon. Prime Minister Shri Narendra Modi ji for his gift to the nation by launching National Logistics Policy on his 72nd Birthday. The formula of Policy + Performance = Progress coined by our PM, will go a long way in successful implementation of the NLP.?

The mention of the release of Cheetah and the Logistics Policy on the same day was a great message of “Desh ki Pragati ko Gati”. National Logistic Policy and PM Gati Shakti will work as Double Engines to facilitate India’s Economic Progress by focussing the following:

• Last Mile Connectivity
• Reduction in Agricultural Wastage
• Better Warehousing Facilities
• Logistics Ease Across Different States
• Unified Logistics Interface Platform – ULIP
• Ease of Logistics Services – Make Logistics Sector Paperless???

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Keshav Tanna , Founder Director, Links Group of Companies

Considering that our logistics costs are at 13% of the GDP as opposed to developed nations which are 8% an organised plan for logistics and distribution services was a must. While it may have come upon us as something out of the blue since we had never heard of something like this with previous Governments, a lot of work has gone into this and we must acknowledge this.

?India has become the 5th largest economy in the world and we comprise 1/5th of the world’s population. Naturally our internal consumption is at a never before high and with the Make in India initiative by the Government, efficient distribution can only aim to reduce the cost of the final product for the consumer. E-commerce is booming and last mile deliveries have to be world class to cater to such a huge population.

?This policy will address issues like Dedicated Freight Corridors, New Air Cargo Terminals, New Multimodal Hubs, enhanced cold storage facilities at airports, faceless customs assessments, digitisation at its’ highest level with Community Systems for Ports and Airports, training and Human Resource development in the logistics sector, efficient warehouse management thus reducing the wastage of agro products which is currently prevalent.

?The Government’s aim through this policy is to bring India among the top 25 Countries in the Logistics Performance Index, thus ensuring that India becomes an attractive destination for Foreign Investments.

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KAMAL JAIN , Director, Cargomen Logistics India Private Limited ??

National logistics policy will create alignment among the various stakeholders in the logistics industry . When goods are moved from point of production to point of consumption it passes through hand of various agencies / jurisdictions / border, which constitute supply chain and change of hands from one agency to other agency is not smooth as every agency and institution work as per their build up systems and process which impact the final turnaround time and cost of delivery (logistics).?

New logistics policy is expected to build a platform which aligns all agencies not only for communication , data exchange but also for making payments which will enable the user industry to connect them through a single system and interface.?

The objective of the policy is to create interoperability among the various systems of multiple stakeholders and reduce the jurisdictional bottleneck and paperwork resulting in reduction in logistics cost and ultimately making produce more competitive.?

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Satish Lakkaraju , Global Head - Air Freight and Pharma, WIZ

The National Logistics Policy which has been launched formally on 17th September 2022 is a welcome move from the Government of India.? India is a very complex country and has multiple challenges and to address the same, having a national policy is very critical and important.? The National Logistics policy is also linked to PM Gati Shakti National Master plan for Muti-modal connectivity along with schemes such as Krishi Udaan 2.0.? We are happy as a Industry that the government has finally identified logistics as a key area for the growth of the country.

Thanks & Happy Reading.