CARGOCONNECT-APRIL2026 - Flipbook - Page 21
COVER STORY
INFRASTRUCTURE IMPERATIVE
infrastructure is absent, but because outcomes
are uncertain.”
Port-led logistics ecosystems represent
another major contributor to transit-time
variability, particularly for import-dependent
and export-linked industries. While India’s
major maritime gateways have expanded
handling capacity, evacuation and terminallevel synchronisation remain uneven. Ashutosh
Srivastava, Head of Brewery Logistics, AB
InBev, explains, “While port capacity has
improved, congestion at major gateways,
uneven productivity across terminals, and
delays in container evacuation persists.” He
further notes that “these issues result in higher
detention and demurrage costs, longer lead
times, and variability in delivery commitments.”
Documentation processes and digital
fragmentation across logistics stakeholders
continue to amplify the operational impact
of physical congestion. Srivastava adds that
“fragmented digital system across ports,
customs, shipping lines, and inland transport
limit end-to-end visibility and slow decision
making, amplifying the impact of physical
congestion,” ultimately reducing schedule
reliability and service consistency across
distribution networks.
Similarly, for over-dimensional cargo and
heavy engineering movements, port infrastructure limitations continue to in昀氀uence
staging and vessel turnaround timelines.
Sharad points out that “limited heavy-lift
cranes for ultra-heavy cargo, berth congestion,
documentation delays, and limited storage for
ODC cargo” contribute to “demurrage and
detention charges, vessel waiting charges,
and working capital locked in transit,” even at
major gateways such as Nhava Sheva, Chennai
and Mundra ports.
Rail logistics continues to offer cost
advantages for heavy cargo movement, but
approval-driven execution structures often
reduce operational 昀氀exibility. Sharad explains
Paradoxically, infrastructure
inconsistency is a bigger risk
than infrastructure absence.
Road transport still
dominates, carrying roughly
70% of total freight.
that “limited ODC-compatible wagons, strict
dimension approvals, route clearance delays,
and speed restrictions for ODC” result in
“long approval timelines, reduced 昀氀exibility,
and shift back to costlier road movement,”
reinforcing the continued dependence on
road-based multimodal integration.
Beyond physical corridors, staging
infrastructure and inland readiness remain
equally critical for maintaining predictable transit flows. Sharad highlights that
“lack of heavy-duty yards near ports, poor
pavement strength in industrial parks, and
limited cranage facilities inland” often lead
to “double handling, temporary yard rentals
at premium cost, and higher damage risk,”
increasing both execution complexity and
logistics spend.
Importantly, variability across infrastructure systems is not limited to cargo movement
corridors alone. Regional air cargo ecosystems
continue to face structural readiness gaps
outside metro gateways. Sanjiv Edward, Chief
Executive O昀케cer – Cargo and Logistics, GMR
Group, explains, “India’s air cargo network,
particularly across tier II and III airports faces
signi昀椀cant gaps such as inadequate freighter
friendly bays, insu昀케cient ULD storage, and
limited GDP compliant cool chain capacity.”
He further adds, “Weak multimodal
connectivity further restricts e昀케cient cargo
movement from manufacturing clusters located
in the hinterlands,” constraining high-growth
sectors such as electronics and pharmaceuticals.
These infrastructure gaps become particularly signi昀椀cant as cargo volumes increasingly
originate from distributed manufacturing
clusters beyond traditional metro regions.
Edward notes, “Infrastructure limitations,
especially at regional airports and o昀昀 airport
logistics zones continue to constrain capacity
and operational e昀케ciency, even as demand
across time-sensitive sectors continues to
expand.”
For large cargo in
India, road transport
is unavoidable
for first-mile and
last-mile movement
— and this is where
the biggest pain lies.
Weak bridges with
low load-bearing
capacity, height
restrictions at flyovers and toll plazas,
sharp turns in industrial zones, delays
in multi-state ODC
permits, and state
border compliance
checks increase
route deviations by
10–40%.
SHARAD KUMAR
AVP– HEAD OF
PROCUREMENT – INDIRECT,
RELIANCE RETAIL
CARGOCONNECT APRIL 2026 | 21
