Transportation and Logistics Management – Archie D’Souza

Transportation and Logistics Management – Archie D’Souza

(This article appeared in the Kochi edition of The Hindu on FEB 10, 2011)

India, the fourth largest and the second fastest growing economy in the world, is on the fast track where infrastructure spending is concerned. Some of the infrastructure areas where huge government spending is taking place are, roads, ports – major & minor, airports – expansion and modernisation of existing ones and building of new ones, inland waterways, coastal shipping and railway lines. There is also huge spending by the corporate sector both as PPP and private enterprises.

All this means huge career opportunities for fresh graduates and professionals. The movement of goods within and across regions and from one region to another plays an important role in economic growth. Roads, railways, air and shipping lines play a great role in this activity. Airlines, Shipping Lines, Railway Companies, Truckers and a host of allied services need professionals on a regular basis. These are sectors that hire high volume of people with improved and better pay options and transactions run into billions of dollars.

Transportation plays a very significant role in development. The transportation industry is the lifeblood of a nation's economy. In today's globalised situation it becomes the lifeblood of the world economy. How developed is a nation or a part of the World, or for that matter a region within a nation, state or even city, is directly correlated to its transport infrastructure.

When we talk about transport facilities we are not restricting ourselves to the physical infrastructure, which is very important. Also playing a great role is policy. A significant part of a quality course in Transportation and Logistics Management will be devoted to policies formulated and legislations involved in the transportation of goods. Free movement of goods leads to growth and development and thus a better standard of life for the people living in a given region. Procedural delays still exist in India, especially in movement and clearance of goods.

This is one lament of foreigners doing business in India. It is often easier to move goods by road from Rome to Amsterdam, crossing three international borders, than to move them from Hosur to Bangalore – a distance of 30 kilometres.

If transportation is the lifeblood of the world economy, logistics is the lifeblood of the corporate world. It is a very integral and important part of the supply chain. Technology, in today's global village, is available to anyone willing to pay for it. Quality products are taken for granted by every buyer and every supplier knows he needs to deliver. What makes one supplier different from another, today, is logistics. What exactly is logistics? It is all about movement of goods from supplier to manufacturer and from manufacturer to the consumer.

Every manufacturing enterprise as well as organisations in the services sector requires logistics professionals. The role of a logistics professional starts even before an organisation's operations start. Setting up a unit requires machinery and materials to be moved to the site. This may come from different parts of the world. Procuring, transporting and storing are all a part of the logistics department of a company. Once operations start, raw materials and components need to reach the factory site. These may need to be stored and later moved to the manufacturing areas. Finished goods need to reach consumers when they need them.

The commissioning of the ICTT will mean that containers that were previously transiting Colombo, Dubai, Singapore and Port Klang in feeder vessels will now be able to move on direct voyages in mother vessels. This will lead to all the major shipping lines bringing their mother vessels here for the purpose. Employment opportunities will be available directly with these shipping lines or with their appointed agents.

Shipping will bring with it other ancillary and support activities. Large scale warehousing, bonded storage and distribution centres are but some of the activities that will generate specialised jobs.

Cochin, as a whole, has a strategic location on the international seafaring route lying midway between Europe, Middle East and East Asia and the Pacific Rim. Its all-weather natural harbour and the large export of goods, especially spices and sea food makes it a very important port in India. The ICTT at Vallarpadam will tap into the large cargo movement along the international east-west sea lane. This will be a boon not just to Kerala but also neighbouring states like Karnataka and Tamil Nadu as well as the union territories of Lakshadweep and rest of India. The estimated value of the logistics market in India is $14 billion and will grow at a rate of 7-8 per cent.

Indian and multinational logistics companies operating in India cater to millions of retailers, manufacturers and service sector companies. This will translate into lakhs of jobs over the next few years.