Shashank Verma | Head Supply Chain & Order Management | Maier+Vidorno
In our previous blog, we explained the Restrictions for Commercial Vehicles in India. Here we will focus on the Absence of road infrastructure & high toll charges. We write a separate blog about this as it is one of the popular question asked by foreign companies who import goods in India, sell in India, developing & managing distributor network in India. This particular blog helps you understand road infrastructure, logistics & transport system in India.
Absence of road infrastructure & high toll charges
The government of India’s primary focus is on developing road infrastructure. National highways and expressways are under construction around the cities, manufacturing & trading hubs. This modern infrastructure will increase the accessibility of warehouses & manufacturing facilities, operating on the outskirts of the cities (at least 25 to 30 km away from the city center).
Since the development of logistics and manufacturing hubs on the outskirts of the cities is sluggish, the use of such expressways and highways for the supply chain is inadequate. Additionally, the high toll charges on these expressways and highways increase the inland freight cost. Further, the transporters for inland distribution of goods are cautious of such developments on the outskirts of the cities and are seeking higher freight rates for picking up and delivering materials at these remote places.
Sluggish growth of warehouses & manufacturing facilities, high toll charges, and limited availability of transport options affects the use of these expressways and highways. At the moment, these highways/expressways are means of a detour and either for leisure or due to compulsion.
The development of logistics hubs on the city outskirts is critical for the higher use of road infrastructure. The government is encouraging traders, transporters, manufacturers, and warehousing companies to construct logistics and manufacturing hubs. Still, it will take another three to five years, before these developments can show encouraging results.
For the last 20 years, Maier+Vidorno has been addressing these business needs of overseas companies. Our registrations allow us to import a vast number of products into India. We have extensive distribution networks and warehousing options for all types of goods. We also offer support services in areas of sales, service, finance, accounting, and HR consulting. Contact us to know more.