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Our supply chains are continuously evolving ?? and every day we find ourselves at the forefront of exciting developments ?? that shape the future of trade and logistics. We aim to ultimately bring to you a collection of news pieces and articles ?? that justify the aforesaid perception of the supply chain ecosystem.
India has been strengthening its position on the global trade and supply chain map by the hour. On the back of various initiatives and special attention from the Government of India, the country has been witnessing a steady and consistent transformation in terms of physical and digital infrastructure. This week's newsletter brings to you a few such developments to prove the point.
While the EDFC, spanning 1337 km from Ludhiana to Sonnagar, has reached completion, marking a major milestone in the government's infrastructure development agenda. The WDFC, extending from Jawaharlal Nehru Port Terminal (JNPT) to Dadri, covering a vast distance of 1506 km, with 1220 km of it already completed now has train operations underway in the finished sections, bringing tangible benefits to the transportation network. The WDFC is poised to play a crucial role in reducing logistic costs, promoting economic growth, and fostering industrial development.
Delhi, the bustling capital city of India, recently welcomed the draft of a pioneering city logistics policy aimed at transforming freight transportation, tackling congestion, and bolstering economic prosperity. Crafted by the Industries Department, the policy encompasses a wide array of recommendations covering regulatory frameworks, land-use planning, infrastructure enhancements, operational improvements, and extensive technology integration.
In a significant development for Uttarakhand's infrastructure, Union Road Transport and Highways Minister Nitin Gadkari unveiled ambitious plans to revolutionize the state's road network. Speaking at an event in Tanakpur, Gadkari announced a staggering investment of Rs 2 lakh crore aimed at elevating Uttarakhand's roads to international standards, akin to those in the United States, by the end of 2024.
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Warehousing and logistics experienced a significant uptick in absorption, recording a total of 37.8 million square feet, marking a 21% increase compared to the previous year. This upward trend in absorption has been consistent since 2021, steadily growing year after year. Despite a slowdown in investments in 2023, absorption not only surpassed the pre-pandemic levels of 2019 by 15% but also attracted investments totaling USD 646 million, constituting 15% of the overall institutional investment in the real estate sector.
Despite Red Sea disruptions and recessionary trends in the West, India's goods exports showed a 3.12% YoY growth in January 2024, reaching $36.92 billion. Sectors such as electronics, engineering goods, and pharmaceuticals played a pivotal role in this growth. Imports also increased by 2.99% to $54.41 billion during the same period, with significant contributions from crude oil, electronics, coal, and gold shipments.
The Confederation of Indian Industry (CII) envisions a remarkable transformation for Andhra Pradesh, propelling it into the forefront of logistics excellence. With a strategic approach focused on port-led development and leveraging its expansive coastline, Andhra Pradesh stands poised to emerge as a pivotal logistics hub, offering unprecedented opportunities for growth and development. In a recent meeting held in Visakhapatnam, key stakeholders deliberated on the immense potential that the state holds and outlined a roadmap for its ascendancy in the logistics realm.
According to Avinash Razdan, the Group CEO of Cargo Service Center, DCSC has witnessed a substantial increase in both export and import cargo volumes. Till January 2024, DCSC was handling an average of around 600 tonnes of export and import cargo a day. Since the beginning of February this year, we have been consistently handling an average volume of 800 tonnes of cargo a day, and even touched 900 tonnes on the 12th.
Amidst the escalating Red Sea crisis causing a surge in shipping expenses, Indian exporters are finding relief through renegotiating rates with their buyers, as stated by a government official. During the initial 15 days of the crisis, exporters bore the brunt of the impact as commitments had to be shipped regardless of cost changes. However, over time, renegotiated rates are distributing the increase between exporters and importers, eventually passed on to consumers. Israr Ahmed, President (Officiate) of the FIEO, mentions that exporters have accepted the new rates and are adapting to increased freight costs.
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