Tandem growth of freight forwarding companies in India is as quick as the economic growth of country. Development of transport infrastructure is a serious initiative of Indian government. It involves increasing transport vehicles in road, air, and rail transportation. This investment in transport infrastructure is helping freight forwarding service in developing a more industrialized nation and making international freight seamless and cost effective.
Developing a Seamless International Freight Service
International logistics work through shipping companies. All the Indian shipping companies are getting more and more accessible to convenient and most advanced road, rail and air transports. Transport infrastructure demand is increasing with 10 percent hike every year. This is responsible for an ever increasing number of development projects in the area of transport infrastructure improvement. This helps freight services across India. In 2016, there are more than 500 local airports and around 20 international airports. International air port of Indian Gandhi alone handles fifty percent of air-traffic in India. However, waterways also play a significant role in international freight going and coming to India. More than ninety percent of international freight across the world goes through ports in India. Sea freight in India is looked after by Shipping Corporation of India and marine transport infrastructure. They help in providing decent quality national and international freight services in India. However, freight transportation by water in India is under-developed and waiting for a serious economic bloom.
Managing the Challenges of Indian Freight and Transport Industry
High level of profitability and light asset nature is peculiar to freight forwarding industry only. Private equity plays a strong role in developing freight transport. Besides, freight services also reserve the advantage of increasing margins at times of economic downturns. However, there are serious challenges peculiar to Indian transport industry only. These include less efficiency, high pollution, less access to sophisticated technology, high road transportation charges in India and more. However, multi-lane express highways are getting more prominent in most parts of India. National Highways Development Project is developing and upgrading most of the Indian highways to four and six lanes.
This is why, road transportation charges India are getting more accessible with government and private sector developing more and more express highways. The most recent Indian government sponsored increase in number of air transport vehicles is helping air freight service providers in expanding their fleet. Rail transportation is witnessing the introduction to high speed rail in India and systems for developing a synergism with road transport. As road, rail and air transport is getting strong with more and more investments from government and private sector, freight services are investing more and more on reaping good dividends from their freight service investment in India. This makes the Indian freight transportation industry better able to withstand the challenges of current economic crisis in most parts of world. As the transport sector is getting good private and government investments, freight forwarding companies in India are going every extra inch to provide highest quality freight transportation service. However, there is a long way to go on the road of sophisticated freight services in India.
Chapter End Notes: