No business can fructify if logistics support is absent and it is not geography specific. It is an operational necessity and mandatory for any business to flourish.
Goa has the potential to emerge as a good logistic hub in the western region of the country which will not only cater to the State but to a large parts of southern Maharshtra and northern Karnataka. However, the state is mired in numerous complexities which potentially hold its growth. These include significant inefficiencies in transportation and its management, poor infrastructure and abysmally low rate of technology adoption which is managed by average logistics professionals.
The various challenges faced by the logistics sector lead to high costs not only in monetary terms but also in terms of its eco-system. In addition to product cost due to inefficient logistics add to inflation and wastage leads to scarcity. To stem all these ills, stringent and coordinated efforts are needed for logistics cost reduction.
Logistics companies can leverage further economies of scale when operations are expanded. This may require industries to collaborate with logistics service providers to nurture their businesses.
In a small State like Goa, land is scares which means infrastructure planning needs to be done meticulously.
It is an uphill task for the Logistics Committee of the Goa Chambers of Commerce and Industry (GCCI) to follow-up and help develop the required logistics for the smooth running of any business in Goa.
“Logistics was concentrated in Vasco, Verna area. A four-lane highway (NH-17) has been constructed from Verna to MPT but the last mile (about 4.5 kilometers between Varunapuri and MPT) connectivity never happened. After much hue and cry, the work has started. The Rs 540 crore contract for this project has been given to Gammon India and the work on this has started about two months back and is expected to be completed by 2018,” said a source from the Logistic Committee of the GCCI.
Similarly, the connect between Londa railway station in Karnataka and MPT is also required. Efforts have been made by the State government of Goa, Indian Railways and MPT to lay a direct railway connect and hopefully in next two years this project is likely to be completed. This connect will ease traffic on roads and transfer of good will be cheaper.
Questions were raised that the new Dabolim Airport has no Cargo facility. The demand has been raised before the Airport Authority of India and efforts are being made to sort this discrepancy.
“It is strange that we have huge pharmaceutical manufacturing units in Goa (Verna) but all its products are being sent via containers through trucks. Why not through MPT? As a part of MPT board I can say that we are ready to provide all transportation facilities via MPT to the pharmaceutical manufacturing industries. I also appeal to them to take this offer and help ease congestion on Goa highways,” the Chairman of Logistic Committee of GCCI, Chandrakant Gawas told Herald.
Co-Chariman of the Logistics Committee of GCCI, Sandeep Sood raised the issue of land for setting up of logistic hubs. He said, “About 32 lakh square meters of prime industrial land near Verna is now locked in a dispute and the issue is before the Supreme Court. If the Goa government follows it up and get it cleared then this could become a excellent place for building parking terminals and warehouses.”
