CARGOCONNECT-APRIL2026 - Flipbook - Page 27
COVER STORY
INFRASTRUCTURE IMPERATIVE
National Distribution
Centres are replacing small,
fragmented state-level depots.
assistance,” highlighting the importance of
aligned infrastructure development across
both mobility and storage layers of the logistics
ecosystem.
SYNCHRONISING PHYSICAL
AND DIGITAL LOGISTICS
BACKBONE
Slowly yet gradually, India’s logistics infrastructure is undergoing visible transformation,
more signi昀椀cantly over the past two decades.
The sanctioned investments have contributed
to measurable improvements in transit reliability and market access. Yet despite these
physical upgrades, transit-time variability
across supply chains continues to persist
because execution outcomes increasingly
depend on how e昀昀ectively physical infrastructure is synchronised with clearance systems,
documentation platforms, and real-time data
visibility layers.
Across project logistics and over-dimensional cargo movement in particular, the
disconnect between physical corridor readiness
and approval-layer integration continues to
shape daily execution realities. Sharad explains
that while India has invested signi昀椀cantly in
highways with “wider lanes, better pavement
quality, and more bypasses,” operational friction
continues because “state-wise permit systems,
manual engineering approvals, no real-time
bridge load database, and poor inter-state
coordination” slow execution timelines.
He underscores the impact clearly, noting,
“A physically ready highway, but truck movement delayed 5–10 days because of waiting for
permits re昀氀ects the fact that road capacity
exists — clearance velocity does not.”
This mismatch between physical capacity creation and approval-layer readiness is
increasingly visible across multimodal freight
ecosystems. Vishal explains, “The biggest gap
we see is between physical infrastructure
creation and soft infrastructure maturity,”
adding that “roads, ports, and warehouses
have progressed faster than customs digitisation, clearance predictability, data sharing
across logistics partners, and end-to-end
shipment visibility.” He further notes, “This
results in manual interventions, duplicated
documentation, and loss of planning accuracy
in day-to-day operations.”
At a systemic level, the next stage of India’s
logistics transformation is increasingly being
de昀椀ned not by asset creation but by decisionlayer integration. Yadav avows, “India has
built physical infrastructure at scale. The next
competitive leap lies in digital and institutional
integration,” adding that “fragmented documentation, limited system interoperability,
and multi-agency coordination delays create
friction that physical capacity alone cannot
solve. As he emphasises, “a shipment without
real-time data is operationally incomplete.”
Port ecosystems illustrate this gap particularly clearly. Modern terminals across
major gateways such as JNPA and Mundra
Port now operate with improved crane productivity, higher berth capacity, and stronger
cargo-handling infrastructure. However,
documentation-layer fragmentation continues
to in昀氀uence throughput predictability.
Sharad notes that “documentation mismatches between shipping lines and customs,
manual interventions for project cargo classi昀椀cation, and lack of full data interoperability
across port, customs, CHA, and transporter
systems continue to create clearance delays,
demurrage, and container detention.” His
observation points to the fact that “port e昀케ciency is often reduced by paperwork friction
rather than crane capacity.”
Similar interface-layer constraints are
visible across day-to-day multimodal logistics
execution environments. Srivastava reveals,
“The biggest gap in day-to-day operations lies
at the interface between physical infrastructure
especially ports and soft infrastructure such as
customs processes, documentation, and data
sharing.” He further adds, “This mismatch
results in cargo waiting despite available
physical capacity, leading to higher dwell
times, uncertainty in release schedules, and
avoidable costs,” while “limited real-time data
sharing between ports, customs, shipping lines,
and inland logistics providers further reduces
visibility and prevents proactive planning.”
Rail freight ecosystems present a similar
pattern of physical readiness supported by
expanding corridor infrastructure but constrained by approval-layer complexity. Sharad
explains that while DFCs now enable higher
axle loads and better transit reliability, engineering clearance timelines, complex dimension
approval processes, and limited digital visibility
of wagon availability continue to in昀氀uence
routing decisions.” This, he remarks, “Rail
can be cost-optimal — but procedural opacity
pushes shippers back to road.”
These coordination-layer gaps are reinforced by fragmentation across logistics data
systems that operate independently rather than
as an integrated decision backbone. Sharad
highlights, “While ports have digital systems,
Building a futureready 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.
PANKAJ KUMAR
PATODI
HEAD OF SUPPLY CHAIN,
GODFREY PHILLIPS INDIA
GST 2.0 has shifted
warehouse logic from tax
to efficiency.
CARGOCONNECT APRIL 2026 | 27
