Commerce ministry official calls for creation of e-platforms for logistics players

A top official of the Union Commerce Ministry has called for the creation of electronic platforms to help the logistics industry ecosystem to conduct hassle-free business.

N Sivasailam, Special Secretary (Logistics) in Department of Commerce (Union Ministry of Commerce and Industry), has said that such platforms would go a long way in empowering the micro, small and medium enterprises (MSMEs) in the logistics industry.

“A small player with four of five trucks would still have to get connected with the customs and other government agencies for fulfilling statutory obligations. The platforms would also act as aggregators and help the the small players,” he told BusinessLine.

Asking business chambers to take lead in creating such platforms, he gave the analogy of platforms such as MakeMyTrip that aggregate services of ecosystem players in the hospitality industry.

Sivasailam was here to take part in a day long seminar on India’s Logistics Sector on the Path of Transformation organised here on Thursday.

Addressing the gathering, he said the Union Government’s policy on logistics would take the industry and other stakeholders on board by involving them in consultations.

“The policy has included the logistics sector under public-private partnership model,” he said.

He said there had been a realisation that there was a limit for improvements in technology and processes.

“You can’t enhance it after some time. But what you lose at the borders are much more. The gains made in manufacturing is lost at border trade where the cost at borders is seven times higher making us one of the costliest country in movement of goods,” he said.

“No matter how great your efficiencies are, you can’t match it with the losses at the borders,” he said.

‘Find ways to reduce logistics costs to 9 per cent of GDP by 2022’

He echoed the views of J S Chandrashekar, Principal Commissioner (Hyderabad Customs Commissionerate), who said logistic players would like to complete their transactions through the week days to avoid the loss of business over the weekend.

“We need to do something to address this. We need to change the mindset both on the trade side and on the department side to address this challenge,” Chandrashekar said.

“You need to bring in professionalism and out-of-the-box thinking to create much larger logistics operations,” he said.

Karunendra S Jasti, President of Federation of Telangana Chambers of Commerce and Industry (FTCCI), asked the Government to come out with the policy at the earliest.

“We need to find ways to reduce logistics costs in the country to 9 per cent of GDP by 2022 from the current 14 per cent. The reduction of logistics cost will be a very significant move and will boost the competitiveness of the sector for its further growth,” he said.

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