Wastage due to logistics to touch $100bn

India’s waste in logistics is expected to touch around $100 billion by 2020, but can be limited to $70 billion if logistics infrastructure is improved, according to industry experts.

A new McKinsey report titled 'Transforming the Nation’s Logistics Infrastructure', which was released at Auto SCM 2010 organised by CII Institute of Logistics, says logistics infrastructure is a critical enabler of India’s economic development. Logistics infrastructure spend has tripled from $10 billion in 2003 to an estimated amount $30 billion this year.

"Despite this increase, the country’s network of roads, rail and waterways will be insufficient as freight movement increases about threefold in the coming decade. This shortfall in logistics infrastructure will put India’s growth at risk," the report says.

It recommends an integrated and coordinated approach in which the development of each mode -- railways, waterways and roads -- is matched to the needs and existing assets are better utilised.