In her talk on how to use supply chain effectively, Vinita Venkatesh, director of Krishnapatnam Port started by saying all maritime shipping nations have big shipping companies baring India and that lot of consolidation of shipping lines is happening in this sector now. Shipping vessels are becoming bigger and container cost per unit is getting reduced.
Indian importers are not keen on taking charge of ocean freight because of the risks involved, she said. Port of entry decisions is also determined by tax rates. Venkatesh also said that the introduction of GST—goods and services tax in the country will change the way logistics business is conducted in the country. The introduction of GST has had a very major impact on warehousing business in the country. We no longer need multiple locations and duplication of business and companies can analyse and actually have a warehouse near a port like Chennai where the road connectivity is good, argued Venkatesh.
Trade policies will also have a big impact on international logistics business especially with China which is India’s largest trading partner, added Venkatesh. On the HR – human resources front, Venkatesh said succession planning is important in the shipping and logistics business. Krishnapatnam Port has recruited youngsters and put them on training in prominent port cities across the world so that they come back to the company with the latest technology and best practices.