Mr. Girish Nair started the interaction by emphasizing the importance of knowing the current scenario and changes taking place in the logistics industry in India. The country is seeing a 12.5% growth year on year in the logistics industry. He said that this growth can be attributed to the whole India encompassing different regions.
In the North, the logistics industry faces a roadblock in the form of landlocked places. He explained how the manufacturing industries face issues in the area when it comes to exporting the goods produced. The industry goods have a deficit of 15 days between being produced and reaching the Mumbai ports for being exported. This time, the lag is causing a loss 0.5% of our GDP. Inability to move the goods out of the shores of India as soon as they are produced in this area is one of the biggest issues being faced in the region of North. He then gave an example of the developed countries like Germany that take only 2 days for their manufactured goods to reach their ports because of a well-developed infrastructure. Talking about the East he said that there are not many industries that contribute to this region in the logistics business. Therefore, more industries need to be established in the East. The region of South is much more developed as compared to the other parts of the country. The dwell time for industries in this region to move their goods to the ports for the purpose of exports is only 7-8 days. This is mainly because of the many developed and efficient ports in this region along with far more integrated lands in terms of logistics and better land utilization in terms of infrastructure. Overall, the connectivity from the south India is far better. Talking about the West he said that the average dwell time for industries here is 6 days. This region has some of the major ports in the country and industrial regions like Chakan, which is an emerging hub also has an excellent connectivity to the ports.
More development in East can help improve the overall GDP of the country. There is a need to be more investments in ports, and in order to improve the inter-connectivity of logistics, the infrastructure also needs to be developed.
Towards the end, he discussed some of the recent industry trends in the industry like the Triangulation model and the marginal freight cost and how DHL engages with its clients using the same.