Logistics players feel that higher volumes of vaccine will lower logistics cost and shift vaccine movement from airlines to the road sector. At present, vaccine boxes are moved largely by airlines even for distances where road transportation can be a cheaper option due to lower volumes.

According to Snowman Logistics, one of the players involved in transporting Covid-19 vaccine on road (from factory to airport and from the airport to hospitals) for export and domestic use said that higher volumes will lower the per unit cost of transportation for these vaccines as they can move by road, Sunil Nair, CEO, Snowman Logistics told BusinessLine .

“Higher volumes of vaccine will ensure higher usage of road transportation instead of airlines, which will lower down the per unit logistics cost. Also, road transportation will have to play a bigger role once we start rolling out vaccine in interior places,” echoed Chander Agarwal, Managing Director, TCI Express, another company that transports Covid-19 vaccine for government departments and NGOs.

Meanwhile, Snowman has created a new distribution model for one of its customers, a Covid-19 vaccine potential manufacturer, who Snowman did not name.

“The distribution model has both options -- if they import, what will be the model and if they produce in thje country what will be the model. Once the model is finalised, we expect to play a bigger role,” said Nair, whose present clients are various government units. On the newer client, Nair said their model envisages moving cargo from airport or seaport; or from manufacturing location within India.

“We will take care of the movement in larger trucks, store in cities; and the last mile to hospitals and health centres with lower costs on road,” added Nair.

At pesent, vaccines from Serum Institute of India (Covishield) and Bharat Biotech (Covaxin) are in use and the government has approved Sputnik V (to be distributed through Dr Reddy’s Laboratories), which will take some time to be rolled out in the country as the first batch has to be imported. Sputnik V’s procurement price is not yet final, indicating negotiations are still on.

As of now, the government is controlling the distribution and price of vaccines in India, and private distribution channels have not yet opened up. If private channels were to open up, vaccines (of Pfizer, Sputnik V, among others) can be sold at higher prices instead of the ₹ 250 that government has fixed.

Maharashtra and Delhi, both of which are dealing with surge of new Covid-19, have sought higher volumes and removal of age-limit to vaccinate more people. “There is not much spurt in Covid-19 vaccine volumes as of now. With approval of Sputnik V (also called Russian vaccine) and may be if the Government were to permit private distribution channels, then the volumes could go up,” said Nair.

Meanwhile, OM Logistics, a company that handles transportation of various vaccines in the country but has not yet handled Covid-19 vaccines, said that vaccine movement will not be a logistics challenge given that vaccines being distributed in India at present require 2-8 degrees Celsius temperature for which cold chain infrastructure exists.

“The vials are extremely small in size. Vaccinating the entire 130 crore population of India with two doses (along with 20-30 per cent wastage) means transporting 6000 tonnes of cargo. This won’t be a challenge for country’s logistics service providers,” summed up Akash Bansal, Country Head, OM Logistics, a logistics company that moves 4000 tonnes of air cargo every month within the country.

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