Andhra Pradesh: Develop State as a logistics gateway to Southeast Asia, says AP Chambers

Indian industries excessively dependent on roads for transporting merchandise, say experts in letter to Piyush Goyal

September 19, 2022 08:55 pm | Updated 08:55 pm IST - VIJAYAWADA

While welcoming the National Logistics Policy (NLP), the Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) wrote a letter to Union Minister of Commerce and Industries Piyush Goyal requesting him to take steps for the development of Andhra Pradesh as a logistics hub so that it can become a gateway for southeast Asia.

AP Chambers president Pydah Krishna Prasad, president-elect Potluri Bhaskar Rao and general secretary B. Raja Sekhar stated in the letter that logistics was a major component in the cost of production for industries in India. Hovering at around 14%, it was very high compared to global benchmarks. Indian industries were excessively dependent on roads for transporting merchandise (it is over 60% as against 25% globally), with only a third of the merchandise being transported via rail. The share of waterways was negligible, they said.

They observed that the steep rise in energy costs and container shortages added to the woes of the manufacturing sector. Their competitiveness was severely affected. In this context, the NLP would help in bringing down the logistics costs substantially. Reduced logistics costs improve efficiency across various sectors of the economy thereby adding value to businesses, they said.

The NLP would change the logistics sector for the better by facilitating seamless movement of goods and reducing the carbon footprints, they asserted.

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