India Plans To Set Up Product Specific Warehouses/Silos At Ports

Ministry of Ports, Shipping and Waterways (MoPSW) intends to create Product Specific Warehouses/Silos at various Ports (including both Major and Non-Major Ports), Multi-Modal Logistics Parks located near Port area and alongside the National Waterways. The purpose of the development of this infrastructure is to reduce storage losses, minimize logistic costs, and facilitate the distribution of cargo in the hinterland.

MoPSW is targeting to develop the product-specific Warehouses/Silos at ports for products such as Cement Silos, Liquid Tanks, Chemicals Tanks, Cold/RefrigeratedStorage, Electronics Product Storage, Pharmaceutical Storage, Auto Spares Parts & Components Storage or any other suggested products.

While the big players have their own warehouses and storage spaces, the smaller players find it difficult to get their products’ specific storage silos at various locations. The development of these world-class warehousing spaces will give a big push, especially to such small logistics players for their ‘Ease of Doing Business’ with better planning and inventory management.

Representation Image

The smaller players would have the option of paying nominal fees to make use of this world-class infrastructure. This option will immensely benefit them, as presently their loaded trucks keep waiting, to find appropriate storage near ports quite often. In turn, it will reduce the losses as compared to the traditional warehousing and provide a more robust and cost-effective supply chain.

For the implementation of these envisaged projects, Ministry is ascertaining the interest of the various Indian companies/developers engaged in the business of Logistics Operations/FTWZ Operation/Manufacturers/Freight Forwarders/ ICD/CFS operations/ Inland Waterways Terminal Operations/Port Operations and Infrastructure Developers including Start-ups and comprehending the support required by them for the viability of the projects under PPP model. It is the endeavor of the Ministry that various permissions/approvals from regulatory and statutory Government authorities are facilitated expeditiously through Sagarmala Development Company Ltd. Moreover, if warranted, the Ministry will facilitate equity in the projects in SPV framework in order to smoothly implement these world-class infrastructure projects.

Minister of State for Ports, Shipping and Waterways (I/C) Shri Mansukh Mandaviya said, “we are planning to create world-class Product Specific Agglomeration Centre on ‘Pay and Use Model’ which will immensely benefit the small traders & logistics players. It would result into transporting their cargoes through the cheapest mode of transportation, which is through sea or waterways. Hence, these Agglomeration Centers will drastically cut down the country’s overall logistics cost and give a boost to export-import trade through coastal shipping. It would also create employment opportunities in the coastal areas”

The Ministry aims to reduce logistic costs with appropriate infrastructure interventions as a part of the ambitious Sagarmala Programme, which was launched by Hon’ble Prime Minister Shri Narendra Modi in 2016. This is the flagship program of the Ministry to promote port-led development in the country by harnessing the potential of India’s 7,500 Km long coastline and ~21000 km navigable waterways.

Reference: pib.gov.in

Source: Maritime Shipping News