Panjim: Goa has been scrambling with various options as it tries to attract new business to invest in the State. The new investment policy has been unveiled and business is coming in tough it remains to be seen how many actually set up business. This element of doubt remains because of the paucity of certain elements that are important for any business to thrive.
In 2013, industry captains in the State expressed the hope that Goa could be made the top logistics destination in western India. The inland and coastal waterways they believed could be tapped for hauling national as well as international cargo. In 2015, however, when one looks at the ground situation it can be safely said that this wish has remained a pipe dream.
Sandeep Sood who has been in the logistics business since 1990 has seen a lot. As the owner of a godown in Sancoale and Verna, he said the business is all about location. It will ensure if the godown is booked round the year or if it would be a struggle. People, he said want to outsource warehousing and would like to focus on manufacturing. The State, he said unfortunately did not have a policy on warehousing.
He said “Any client in Verna will always like to use my warehouse in Verna. They are not interested in sending their goods to Sancoale, which means there is a lot of pressure on existing godowns”. The system, he said was not working.
He said all the talk of a logistics hub was just that mere talk. Industrial zones were being created without warehousing facilities. He said when people ask about the facilities then the concerned people start thinking about it. Some industrial zones, he said had plots for warehouses especially in Verna while others don’t, so interested parties have to buy plots of land and set up warehouses. In the new allotment policy by IDC, allotment of plots for warehouses will be sold to the highest bidder. The problem in Goa, he said was that the Town and Planning Act’ Section 17 had to be amended so that the present problems being faced could come to an end.
Sandeep said his business growth between 1990 and 2005 was excellent and in the last 5 years it had not grown one tenth since. Another player in the market who did not want to be named claimed that in Goa since there was no policy, there were various players who had warehouses that were legal as well as illegal. He said that there could be approximately 50-60 warehouses both legal and illegal. This paper recently reported that five businesses had decided to either enhance their presence in the State or set up new operations. However, one of the largest tyre manufacturers in the country MRF has decided to set up a manufacturing base in the State.
Sources in the market reveal that the company is in the market for a space totalling over 10,000 sq mtrs for warehousing but it was proving to be a difficult task finding such a spot. Sushant Singh, a manager in Bharat Godowns said it was important to have an area kept aside for warehouses, which was not the case today. He said, “They are in different locations, we need one location, it will dramatically reduce the cost of transportation, which is eventually all being paid by the individual consumer”.
Santosh Parab of DHL Logistics said the State did not have proper connectivity between the container exporter and the port.
In Goa, he said there was no definite day as to when a ship would come and take containers, which made it very problematic. This, he said was unlike in Mumbai in Nava Sheva where the schedule of ships was known. The absence of good warehousing facilities made it a problem in Goa.
He said there was no container station in the State, which presented a rather poor picture of the state of affairs. Another operator in the logistics business in Goa said that the investment plan may be a good idea but without facilities like warehouses where will companies keep their finished goods. A logistics hub, he said was a very good idea in principle but with the bare minimum not in place how could the state think of something like the logistics hub.
Another senior executive in a logistics committee said companies in the country would seriously consider the State as a viable option if adequate storage facilities were present. Goa, he said was not Mumbai where warehouses were located all over the place and companies did not mind moving finished goods around the place.
Goa, he said was a place where companies did not like to move their products around because it would end up increasing the cost to the end user who was a very conservative consumer. Perhaps, may be for that Goan consumer, the government ought to think of creating a logistics hub to ensure that businessmen operating in the State and consumers don’t end up paying too much for what should be considered a given.
