Infra status for logistics sector: Benefits could vary across segments

Most industry executives say that with infrastructure status for the logistics industry, interest rates will be lowered while GST implementation will facilitate business in the long run

The extent of benefits the logistics sector will get from acquiring infrastructure status will vary from segment to segment even as lower borrowing costs for the players will come down.

“With the cost of borrowing coming down, areas like air cargo terminals and express truck terminals, which found no place in infrastructure earlier, could see sizeable investment,” says Chander Agarwal, managing director of TCI Express.

TCI Express, a subsidiary of parent Transport Corporation of India, is a specialist and leader in express distribution in the country. “For the express industry, the current average cost of borrowing is 7 per cent