As of 11:04 a.m., Mahindra Logistics is trading down 1.2%, Allcargo is down 0.7%, GATI is trading down 3.1%, and Snowman Logistics is also trading red down of 2.07%. While CONCOR shares are up 2.3%, TCI Express is up 1.29%, Blue Dart Express is up over 1.2% and VRL Logistics is also trading green and up 1.28%.
Shares of major logistics companies were trading in a mixed bag in early morning trading on Monday after Prime Minister Narendra Modi launched the National Logistics Policy on September 17.
Container Corporation of India Ltd. (CONCOR), TCI Express, Aegis Logistics, Blue Dart Express and VRL Logistics increased 1-2% in intraday trade while Mahindra Logistics, Snowman Logistics, Allcargo and GATI fell 1-3% in intraday trade on BSE.
As of 11:04 a.m., Mahindra Logistics is trading down 1.2%, Allcargo is down 0.7%, GATI is trading down 3.1%, and Snowman Logistics is also trading red with a 2% drop. .07%.
While CONCOR shares rose 2.3%, TCI Express rose 1.29%, Blue Dart Express climbed over 1.2% and VRL Logistics also trades green and rose 1. 28%.
The National Logistics Policy aims to address the challenges facing the transport sector and reduce logistics costs for businesses by 13-14% to single digits. It aims to promote smooth movement of goods across the country, Trade and Industry Minister Piyush Goyal said on September 13.
“The government has stressed the need to reduce logistics costs in the country from current levels of 13-14% of GDP,” the minister said.
In the proposed action plan for the logistics sector, digital logistics systems will be integrated, physical assets will be standardized and service quality standards will be compared, the state will be involved, human resource development and strengthening capacities will be implemented, and export-import logistics will be undertaken, sectoral logistics plans will be drawn up and logistics parks will be developed, as reported by the PTI news agency.
More than 20 government agencies, 40 Partner Government Agencies (PGAs), 37 export promotion councils, 500 certifications, over 10,000 products and a $160 billion market make up the logistics industry. It also involves 200 maritime agencies, 36 logistics services, 129 land container depots, 168 container freight stations and 50 IT ecosystems, banks and insurance companies.
After two years of delay due to the pandemic, the National Logistics Policy will streamline regulations, address supply-side restrictions and lay out a pathway to reduce fuel and logistics costs to encourage faster growth.
National logistics policy has been a central concern of the Union government for three years.
The Covid-19 outbreak caused the postponement of the publication of the Ministry of Commerce’s draft Logistics Policy for consultation in 2019. Nirmala Sitharaman, the Minister of Finance, once again declared the National Logistics Policy in the budget 2022-2023
The draft policy calls for the government to create a single point of reference for all logistics and trade facilitation matters, reducing costs for the logistics sector to 10% in five years. The logistics sector is estimated at 13-14% of GDP.
(With PTI entries)