CARGOCONNECT-APRIL2026 - Flipbook - Page 22
COVER STORY
INFRASTRUCTURE IMPERATIVE
Over-dimensional cargo
(ODC) faces 10–40% route
deviations due to constraints.
Our supply chain has
evolved from a centralised warehouse
model to a regional,
consumption led
network, but optimisation remains constrained because of
limited availability of
scalable, automated
warehouses in key
consumption belts,
weak road connectivity around industrial and logistics
parks, and high cost
and inefficiency in
short haul movement
between factories,
ports, and regional
warehouses.
VISHAL KUMAR
VP– SUPPLY CHAIN,
BOMBAY SHAVING
COMPANY
22 | CARGOCONNECT APRIL 2026
At the same time, airport-side processing
infrastructure and spatial readiness remain
key enablers of cargo throughput e昀케ciency.
Samir J Shah, President, Air Cargo Agents
Association of India (ACAAI), explains, “The
airports in India are either in the middle of the
city or far away. They are not very conducive to
cargo movement and customs clearance.” He
further adds that “space for cargo processing
is always a concern,” highlighting the need
for expanded cargo stations and distributed
gateway connectivity across the country’s
emerging airport network.
The challenge, however, is not solely
physical infrastructure expansion. Increasingly, integration across multimodal systems
is emerging as the central determinant of
transit-time predictability. As Yadav observes,
“Visibility reduces variability more than
physical expansion alone,” reinforcing the
importance of synchronised digital coordination
across logistics nodes rather than isolated
infrastructure upgrades.
From a policy-alignment and ecosystemreadiness perspective, the evolution toward
integrated logistics infrastructure is already
being shaped by national initiatives designed
to improve corridor synchronisation and
multimodal e昀케ciency. Pankaj Kumar Patodi,
Head of Supply Chain, Godfrey Phillips
India, notes, “Building a future-ready logistics
ecosystem requires close alignment with India’s
infrastructure realities as well as emerging
global technology-led supply chain trends,
particularly those that accelerated during the
pandemic period. The government’s focus on
the sector through initiatives such as the ‘PM
GatiShakti’ programme and the ‘National
Logistics Policy (NLP)’ is therefore a welcome
move.”
Highlighting the operational role of integrated logistics nodes within this transformation journey, Patodi explains, “Multi-Modal
Logistics Parks (MMLPs) are a welcome
development as they serve as hubs where
rail, road, and air connectivity converge,
reducing last-mile friction and enabling bulk
movement.”
However, he notes that “multiple handling
points and cargo safety remain concerns,
and clarity around insurance accountability
and damage certi昀椀cation responsibilities is
still evolving.” Hence, a single coordinating
agency responsible for complete transaction
management and service is what he desires.
Encouragingly, recent policy initiatives
and national infrastructure programmes are
already contributing to measurable improvements across logistics corridors. Ashish Gupta,
the Country Head– Logistics, HP (India),
notes, “Over the past several years, a number
of policies, schemes and infrastructure investments have been introduced to strengthen the
logistics and supply chain ecosystem in India,”
adding that “these initiatives indicate that the
sector is moving in the right direction, with
visible improvements already taking shape.”
At the same time, Gupta’s observation
that “there are still a few areas where further
development is required to enhance overall
supply chain outcomes and improve ecosystem
e昀케ciency” re昀氀ects the continuing importance
of coordinated infrastructure integration.
STRENGTHENING INDIA’S
SUPPLY CHAIN GRID
THROUGH SMARTER
NETWORKS
With the rollout of GST, the development of
Dedicated Freight Corridor (DFC) networks,
expansion of industrial corridors, and the
rise of MMLPs, freight 昀氀ows are being fundamentally restructured. Henceforth, supply
chains are today increasingly engineered
around transit-time predictability, e昀케ciency,
and network optimisation. Yet despite visible
infrastructure expansion across highways,
ports, rail corridors, and airports, variability in
execution timelines continues to in昀氀uence how
organisations position inventory, plan routes,
and structure nationwide distribution grids.
For large-format cargo movements and
heavy industrial logistics in particular, network
planning has already transitioned toward
corridor-aligned infrastructure deployment.
Sharad explains that “before 2017 (pre-GST),
warehouses were set up state-wise to avoid
CST with smaller depots in multiple states
and inventory duplication.”
He notes, “Post-GST, consolidation into
regional distribution hubs with fewer, larger
warehouses and a focus on transportation
e昀케ciency rather than tax arbitrage has become
the dominant model, typically structured
around 1 National Distribution Centre (NDC),
3–5 Regional Distribution Centres (RDCs), and
project-speci昀椀c staging yards for ODC cargo.”
This shift toward e昀케ciency-led infrastructure positioning is also visible in port-aligned
inventory strategies. Sharad informs, “We
now align inventory closer to major gateways
such as Nhava Sheva, Mundra, Chennai, and
Visakhapatnam ports,” noting that this “reduces
inland freight for imported heavy equipment
Last-mile industrial connectivity remains the primary
cause of transit variability.
