— Dr. Shailesh B. Surve, Partner, Geeta Shipping & Clearing Services
Geeta Shipping &
Clearing Services is a
leading Mumbai-based
export-import logistics
organisation and a
pioneer in logistics
services ranging from
custom clearing and
forwarding services
to warehousing.
Dr. Shailesh B. Surve
shares his outlook on the
Indian logistics sector.
The Ministry of Shipping
aims to triple merchandise
exports from $225 billion in 2010
to $750 billion by 2017.
Just the will of the ministry and its
aim to achieve something will not
help. There is need for sustained
political will backed by proactive
execution followed by regular
monitoring and follow-up.
What are the challenges in
the Indian logistics sector?
Excessive regulatory authority
system has to perish. Instead of a
single-window authority, we
have to go through various
bureaucratic procedures to get
the job done. The process has to
be simplified without any ambiguity.
There are government initiatives
as in warehousing, cold
chain and post-harvest storage.
Then, in infrastructure, viability
gap funding has changed the
scenario but personally I feel we
haven't found that mark yet. GST
has to fall in line and till it is not
consolidated, how can we leverage
profitability of any company.
Logistics cost in India is
amongst the highest globally
which places Indian companies
at a disadvantage.
The transaction costs in India
were always high. The government
needs to discourage human
intervention and abolish all old
primitive rules and regulations;
not just reform them but abolish
them in one go. Only then we will
be able to reduce cost.
There is a big unorganised market
in India where a small time
transport company would say it's
a logistics company. There is no
strategic study as to how we are
supposed to achieve the required
costing and then there is absence
of reverse logistics.
So the government has to work
hand in hand with the private
sector. Building new ports will not
solve the problem; we need to
revamp the existing ports, inland
container depots and highways.
India's warehousing infrastructure,
both qualitatively
and quantitatively, is highly
inadequate. How do you see this
scenario evolving?
Warehousing is poised for an
exponential growth in next couple
of years, but a lot needs to be
done. Investments are being
done, but there is no particular
strategy and the technological
know-how is missing.
A landlord or a transport company
would also start up a warehouse
business if there is availability
of land. We need to tie up
with foreign players who already
know the process and the same
process is to be implemented in
India.
The trend is now shifting
towards logistic parks which
are an evolved form of conventional
warehouses. Warehouses
will get consolidated in a few
places in the country, in strategic
locations like NCR, Mumbai,
Pune, Bengaluru, Chennai,
Hyderabad and Kolkata, which
are supported by significant
demand potential and industrial
base.
What are the services provided
by Geeta Shipping &
Clearing Services?
Well, we are majorly into international
freight forwarding. Other
than that, we are into project
management and bulk services,
which includes general to heavy
lifts. Presently, we have an international
network in 78 countries.
We handle complete turnkey
projects; recently, we were
instrumental in handling Torrent
Power and Torrent Energy's
assignment.
What is your company's
strategy for next five years?
We have a pocket of land which
we look forward to exploiting.
There is a place near JNPT
which is in the development
process. We would also accelerate
the growth in verticals like oil
and gas, and infrastructure projects
including cold chain and
reverse logistics which is in a
fragmented and sporadic state.
We will also be adding more
offices in the subcontinent.