Page 6 - Logistics Sector

Reduction of logistics cost is a big macro turnaround for India

The country will create jobs and encourage consumption and demand by reducing logistic cost

About 80% of buses operational during Tamil Nadu transport unions strike

About 80 percent of buses in Tamil Nadu were being operated on Tuesday amid the strike call given by various transport unions, including those affiliated to the CPI(M) and AIADMK, officials said. The state government buses were operated in several parts including Chennai, Madurai, Coimbatore and Kanyakumari districts, benefiting the commuters, they said. In Chennai, the Metropolitan Transport Corporation (MTC) authorities ensured the buses were operated as usual and that the strike did not impact the public much, a senior official said. "The MTC buses were being operated as scheduled from 6 am and the public are requested not to panic," a senior transport official said. "About 80 percent" of the buses were being run in the state, he said without divulging further details. The trade unions had announced the strike demanding implementation of "6 point charter of demands." It includes initiation of talks for enhanced wages (15th wage revision pact), filling vacant posts, and release o

Logistics sector poised for 'promising' new year on rising investments

Fuelled by demand, manufacturing activities, and investments, the horizon of the country's logistics industry looks "promising" for 2024, though Red Sea might cast a shadow of global supply disruptions and push up freight costs. Not just the market tailwinds, the government's key initiatives spanning from PM Gati Shakti to the maritime policy to the Sagarmala project will also set the tone for the logistics landscape next year, according to experts. "In 2023, India's logistics sector showcased commendable progress. The government's strategic investments and commitment to digitalisation have been instrumental in this growth. As we step into 2024, the sector's outlook remains promising," Grgory Goba-Bl, Managing Director for UPS in India, said. To complement the PM Gati Shakti, the government, in 2022, rolled out a comprehensive national policy for the logistic sector to address the issues of high logistics cost and inefficiencies, among others. The policy helped India climb six plac

India Inc seeks 3.9 mn jobs for frontline workers in H1 FY24: Report

Most of this demand was driven by the logistics and mobility sector, which accounted for over 50 per cent of the total demand

Oxyzen Express raises $3 million to invest in next-gen logistics tech

The company operates within the highly competitive express logistics industry which boasts a total addressable market opportunity in excess of Rs 1.5 trillion

13 states, UTs among achievers in logistics performance index: DPIIT report

Andhra Pradesh, Karnataka, Tamil Nadu, Chandigarh, and Gujarat are among the 13 states and Union Territories that have again been categorised as "achievers" in the logistics index chart 2023, according to a report released by the Commerce and Industry Ministry on Saturday. The index is an indicator of the efficiency of logistical services necessary for promoting exports and economic growth. As against 15 states and UTs, this year, the number has reduced to 13 as Himachal Pradesh and Uttarakhand have slipped into "aspirers" and "fast movers" categories, respectively, this year. Steps taken by Sikkim and Tripura have helped them move up the ladder to the "achievers" category from "fast movers" in 2022. The other states and UTs in the "achievers" category are Delhi, Assam, Haryana, Punjab, Telangana, and Uttar Pradesh. Kerala, Maharashtra, Madhya Pradesh, Rajasthan, Uttarakhand, Arunachal Pradesh, Nagaland, Andaman and Nicobar, Lakshadweep, and Puducherry have been categorised as "fa

13 states, UTs among 'achievers' in logistics performance index: DPIIT

Andhra Pradesh, Karnataka, Tamil Nadu, Chandigarh, and Gujarat are among the 13 states and Union Territories that have again been categorised as "achievers" in the logistics index chart 2023, according to a report released by the Commerce and Industry Ministry on Saturday. The index is an indicator of the efficiency of logistical services necessary for promoting exports and economic growth. As against 15 states and UTs, this year the number has reduced to 13 as Himachal Pradesh and Uttarakhand have slipped into "aspirers" and "fast movers" categories, respectively, this year. Steps taken by Sikkim and Tripura have helped them move up the ladder to the "achievers" category from "fast movers" in 2022. The other states and UTs in the "achievers" category are Delhi, Assam, Haryana, Punjab, Telangana, and Uttar Pradesh. Kerala, Maharashtra, Madhya Pradesh, Rajasthan, Uttarakhand, Arunachal Pradesh, Nagaland, Andaman and Nicobar, Lakshadweep, and Puducherry have been categorised as "fas

Plan shared by departments to improve logistics efficiency, global ranking

The commerce and industry ministry on Thursday said a targeted action plan has been shared with various departments and big data is being generated to improve the logistics efficiency of the country. These efforts will improve India's ranking in the World Bank's LPI (logistics performance index), the department for promotion of industry and internal trade (DPIIT) said in a statement. A meeting to showcase ongoing and upcoming initiatives and reforms to improve India's logistics efficiency to the World Bank team was held under the chairpersonship of the Special Secretary (Logistics), DPIIT, Sumita Dawra here on Wednesday. Nodal officers of the LPI-dedicated team, including those from Land Ports Authority of India (LPAI), Civil Aviation, Railways, Ports, Shipping and Waterways, Central Board of Indirect Taxes and Customs (CBIC) and National Industrial Corridor Development Corporation Limited (NICDC) and members from World Bank participated in the meeting. "The targeted action plan ha

Biden to convene new supply chain council to strengthen US logistics

President Joe Biden on Monday will convene the first meeting of his supply chain resilience council, using the event to announce 30 actions to improve access to medicine and needed economic data and other programmes tied to the production and shipment of goods. We're determined to keep working to bring down prices for American consumers and ensure the resilience of our supply chains for the future, said Lael Brainard, director of the White House National Economic Council and a co-chair of the new supply chain council. The announcement comes after supply chain problems fuelled higher inflation as the United States recovered from the pandemic in 2021. While consumer prices are down from last year's peaks, polling shows that inflation remains a political challenge for Biden going into the 2024 presidential election. Among the 30 new actions, Biden will use the Defence Production Act to have the Health and Human Services Department invest in the domestic manufacturing of needed medicine

XpressBees joins ONDC networks, expands services to 20,000 pin codes

XpressBees' technology-driven approach allows seamless integration with online marketplaces and retailers. This enhances the end-to-end customer experience

New FTAs, lower cost of power, logistics to help boost exports: PHDCCI

Measures like comprehensive trade pacts, reduction in cost of capital, power, and land reforms will help boost India's exports of goods and services to USD 2 trillion by 2030, an industry chamber report said on Thursday. The PHDCCI's report also recommended schemes for 75 potential export products including marine items, iron ore, some chemicals, pharma, cotton, aluminium, and tankers to promote shipments. "The 75 products have been identified from nine most promising sectors. These products contribute around USD 222 billion, which is around 50 per cent of India's total exports. At the global level, these 75 products have significant presence in world exports, whereas India's share of these products is only 6 per cent of the total world exports," it said. The report - India's Emerging Export Dynamics: Vision USD 2 Trillion Exports by 2030. - added that India's service exports have traditionally been concentrated in North America and Europe, but growing continents like Asia, Africa,

Steel ministry to soon finalise Sectoral Plan for Efficient Logistics

The steel ministry is expected to soon finalise its Sectoral Plan for Efficient Logistics (SPEL), the commerce ministry said on Friday. The ministry stated this during the 60th meeting of the Network Planning Group (NPG) on November 16. They also outlined their SPEL approach, encompassing in-depth supply and demand analysis for iron ore, forecasted requirements up to 2030-31 and beyond, strategic planning for future readiness in logistics. In the meeting, the coal ministry also presented its key findings on the integrated coal evacuation plan prepared under the aegis of Coal Logistics Policy 2023. The "Ministry envisages a 14 per cent reduction in rail logistics cost through railway network optimisation for coal logistics. Further, there is potential to lower Co2 emissions by 100,000 tonnes Co2 per annum by FY'30 due to a reduction in railway leads and the replacement of road transportation by rail," it said.

SoftBank pares 2.5% stake in logistics firm Delhivery worth Rs 739 cr

Japanese conglomerate Softbank on Friday divested a 2.5 per cent stake in integrated logistics provider Delhivery for Rs 739 crore through an open market transaction. According to the bulk deal data available with the NSE, Softbank through its affiliate SVF Doorbell (Cayman) Ltd sold 1,83,05,480 shares, amounting to a 2.5 per cent stake in Delhivery. The shares were disposed of at an average price of Rs 403.51 apiece, taking the aggregate deal size to Rs 738.64 crore. After the transaction, Softbank's shareholding in Delhivery has reduced to 11.96 per cent from 14.46 per cent. Shares of Delhivery fell 3.46 per cent to close at Rs 399.55 apiece on the NSE. In March, Softbank divested a 3.8 per cent stake in Delhivery for Rs 954 crore through open market transactions. Over the past few months, Softbank divested its stake in online food ordering company Zomato and Policybazaar's parent firm PB Fintech.

Canada's Ontario Teachers' Pension Plan invests $80 mn in Xpressbees

The new valuation of the logistics firm after this round is $1.5 billion, an incremental increase from its previous valuation of $1.4 billion, according to the sources

Logistics operator Allcargo plans to achieve carbon neutrality by 2040

Logistics operator Allcargo Group plans to achieve carbon neutrality by 2040 and will only partner with carriers using greener fuels, according to the company's latest ESG report. India is working on achieving its net zero emission targets by 2070 and attaining a 45 per cent reduction in emissions intensity of GDP by 2030 from the 2005 level, it said. The company report titled 'Navigating the Green Horizon', released on Thursday, highlighted the group's commitment to achieve carbon neutrality by 2040 through its green and renewable ways. It also spells out in detail the group's other Environmental, Social, and Governance (ESG) goals which include energy and emissions, occupational health and safety, diversity, equity, and inclusion (DEI), community development, labour practices and human rights, cybersecurity, and corporate governance. "The true progress is never about profit alone. It's about what good it can do for people and the planet. This is why integrating ESG ...aspects int

ESR buys 58 acre land in Nagpur for logistic park, to invest Rs 400 crore

ESR Group on Tuesday said it has acquired 58 acre of land in Nagpur to build a logistic park and will invest Rs 400 crore in the construction and development. ESR Group, in a statement, said that it has acquired 58 acre of land in Nagpur with a total development potential of 1.4 million square feet. "ESR has also committed to invest Rs 400 crore (USD 48 million) for the construction and development of ESR Nagpur Logistics Park 2, which will be the company's second logistics park in Nagpur and its twentieth park across the country," it added. With the successful land acquisition, ESR Nagpur Logistics Park- 2 will help boost the supply of modern Grade A logistics facilities within the Gondkhairi-Kalmeshwar logistics cluster. The park is designed to accommodate 10 buildings, with building sizes ranging from 67,000 sq ft to 1,90,000 sq ft to meet a broad spectrum of tenant needs, ranging from e-commerce to third-party logistics (3PL), retail and fast-moving consumer goods (FMCG). Abhi

Amazon's expansion into logistics services could unlock $100 bn in revenue

Analysts see the strategy echoing what the firm achieved with its cloud business, when it built Amazon Web Services to serve its own needs before opening the platform to third-party merchants

Road logistics industry anticipates favourable demand in FY2024: ICRA

Rating agency ICRA on Wednesday said that it anticipates a favourable demand scenario for the road logistics sector in FY2024, aided by stable domestic consumption and investment demand. It said the industry's revenue growth is pegged at 6-9 per cent in FY2024 on an elevated base of FY2023, driven primarily by demand from varied segments like e-commerce, FMCG, retail, chemicals, pharmaceuticals, and industrial goods. "ICRA expects the outlook for the sector to remain stable," it said. According to ICRA, downside risks to the estimates remain from any material tapering of demand due to elevated inflation and interest rates and global supply-demand shifts impacting the Indian economic scenario. The industry debt coverage metrics are expected to ease marginally in FY2024 compared to the FY2023 levels with a likely contraction in operating margins because of inflationary input cost pressures, primarily elevated crude oil prices and debt-funded capital expenditure for vehicle replacemen

NMDC's low-grade iron ore export to China hindered by logistics: Report

Indian producers of low-grade ores largely depend on foreign markets because most major domestic steel producers use high-grade iron ores

World Bank's biennial index perception based and narrow, says Centre

Earlier this year, India's rank went up by six places to reach the 38th rank out of 139 countries in the seventh edition of Logistics Performance Index (LPI 2023)