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Transporting material on time is critical for infra projects.

Although the concept of project logistics hasn’t really taken off, some industry players feel that the growth in the infrastructure sector will boost the development of this market in India. Anil Mathew investigates.

Until a few years back, the project logistics market hardly saw any action but the picture is rapidly changing now. With the growing number of infrastructure projects, increasing role of tertiary sector, commercialisation, globalisation and opening of the economy, this market has now started to grow slowly but steadily in India.

In the last five years alone, the demand for project logistics service providers in India has grown by nearly 40%. This is mainly due to global companies shifting their manufacturing base to India. Also, availability of skilled and quality resources, including engineers for designing and fabrications, has assisted the growth of this sector.

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Even though in the present scenario it is not easy to assess the growth rate of project logistics market in India, there are educated guesses that the market could be growing at 7%.

Going by the increasing number of infrastructure projects happening in India the project logistics industry is set to grow by leaps and bounds in the days to come.

“Project logistics in India has a very crucial role to play and it is on the upward growth path. This is very evident in the number of projects that are currently in the pipeline.

As the GDP is back in upward mode together with a huge demand in infrastructure development to keep pace with our economical and industrial growth, I believe there is an immense growth opportunity for professional project logistics companies.

Also, project logistics players may have a responsible role to play in the project implementations,” says, Pavithran M Kallada, MD, Unique Global Logistics Pvt Ltd. “India offers a huge market for project logistics.

The main factors driving this is our global competitiveness, high-end technology, availability of skilled labours, adherence to quality specifications and most importantly, the stable Indian geo-political system,” he adds.

Expressing a similar point of view, Lars Sorensen, regional manager of Maersk Logistics/Damco South Asia, says: “In India, the government’s focus on large infrastructural projects and industrial growth has resulted in increased demand for project logistics in the recent years.

We are also witnessing key Indian companies winning and implementing large turnkey projects abroad. Due to these trends, India is quickly emerging as a key growth market for project logistics solutions.”