Soon: Warehousing Policy To Reduce Logistics Cost

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Unknown to most, logistics costs constitute around 13% to 14% of India's GDP, making our exports uncompetitive when compared to the 8% to 10% logistics costs in developed nations. 

On the bright side, the folks in the parliament have diagnosed this issue and are working on a way to fix the problem for good. 

Not Just In Time

Although years late, the government is soon introducing a nationwide warehousing policy, which will create a framework for building exclusive warehousing zones through public-private partnerships (PPP).

The policy, which is in its final stages now, is being framed and will be implemented by the National Highways Authority of India (NHAI). 

Heavy Vehicles, Keep Out

These specialised logistics hubs, with industry standard storage facilities, will operate on the outskirts of major cities to avoid traffic congestion within them. 

Private Partners, Come Right In

The warehousing zones will make use of the NHAI land bank along highways and expressways. 

To be developed in the PPP model, land will be offered to private developers for constructing warehousing zones on a revenue-sharing basis or for a fixed fee, depending on specifics. 

Bonus: Say Hello To Big Rigs

Once these hubs are humming with activity, the carrying capacity of trucks could also be increased, as large goods vehicles will no longer need to enter cities. 

🔮 This also means that while you're out driving to your favourite dhaba, you'll be greeted by sights of multi-axle road trains with double cabs, and engines that could make a locomotive blush.