Logistics sector benefits from GST
Mumbai, 19 July 2017: India being bound by sea on 3 sides & has a 7,516.6 km coastline, making it the 7th largest in the world. Therefore, it is evident that Indian ports handle 90% of the Exim trade volume. The railways contribute 9% to the GDP; the road sector contributes 6%, whereas the ports' share of GDP is only 1%. This questions the vast potential for development of coastal cities and ports. To throw more emphasis on port logistics, Modi government has decided to pursue Sagarmala project. Under this, 12 smart cities will be developed near ports with an investment of Rs 50,000 crore.
Briefing on Sagarmala project as a crucial infrastructure initiative to up India's GDP by 2%, Mr. Brijesh Lohia, Managing Director of Global Ocean Group says, “This project will boost economic activity near coastal locations & establish Coastal Economic Zones (CEZs). Kandla Port has been identified as a potential CEZ. The project will redevelop existing port infrastructure through upgrade in port handling equipment & extensive use of IT in improving monitoring & operations of port activity. Jawaharlal Nehru Port Trust (JNPT) will be one of the ports to receive Rs 4,000 crore to develop its SEZ.
The project is expected to enhance shipping and port handling project. It also aims at developing logistics parks and capacity. Specialised ports with focus on handling coal, energy, warehousing near coastal locations to support port activity. chemicals, commodities, etc. India suffers from poor port linkages from “India offers great potential for developing offshore existing port infrastructure and lack of developed infrastructure renewable energy and government has accorded due priority near ports.
Along with this, an inefficient inter-modal transport to attract investment in this area. The power generated will connectivity results in high cost of logistics and exports. With this feed the coastal activity and also contribute to the national grid,” project, development and linking of short-sea shipping, coastal Lohia concluded. Explaining on reduced logistics cost due to GST, shipping and inland waterways transportation will get the due “It will help companies reduce logistics cost by 1.5 to 2.5% as they attention.
Further development of ship building, ship repair and ship will reconfigure their supply chains. There will adoption of hubrecycling industry will also be a priority. Enhanced development of and-spoke model, fewer but large warehouses and eliminating offshore drilling and storage platforms is another objective of the check post delays to gain savings of 0.4-0.8% of sales.”