Products Specific Warehouses to come up at Ports and National Waterways

It will enhance water-borne cargo volumes, reduce logistics cost and promote Ease of Doing Business

New Delhi, Dec 24, 2020: 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 development of this infrastructure is to reduce the storage losses, minimize logistic costs and facilitate distribution of cargo in the hinterland.

MoPSW is targeting to develop the product specific Warehouses/Silos at ports for productssuch 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, specially to such small logistics players for their ‘Ease of Doing Business’ with better planning and inventory management.

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 more robust and cost-effective supply chain.    

For implementation of these envisaged projects, Ministry isascertaining 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 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 (Independent Charge) 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 cost with appropriate infrastructure interventions as a part of ambicious Sagarmala Programme, which was launched by Hon’ble Prime Minister Shri Narendra Modi in 2016.This is the flagship programme of the Ministry to promote port-led development in the country by harnessing potential of India’s 7,500 Km long coastline and ~21000 km navigable waterways.