The key segments can be represented as:
Now let us look into challenges and solutions for different types of storages:
1.Challenge-Industrial/Retail warehousing: There is lack of sufficient physical infrastructure. The time lag between deciding and executing strategies due to the lack of international warehousing standards is another concern. High fragmentation and the dominance of unorganized players along with Indian players tackling operational as well as strategic issues are plaguing the warehousing space.
Solutions:
• GST Implementation.
• The use of modern storage solutions.
• Automation in warehouses for the effective utilization of space
• MIS implementation
2. Challenge- Agri Warehousing: Due to inadequate storage capacity, regional imbalance in warehouses, lack of adequate scientific storage and inefficient logistic management in the country about 20-30% of the food grains go waste. Each grain bag goes through a lot of hands before it is finally opened for processing, which leads to higher storage and transportation charges, as well as increases the wastage of food grain during transit and handling. Furthermore, the storage capacity available with state agencies is primarily used for keeping central stock of food grains for buffer stock, PDS and other Government schemes mainly for storing wheat and rice resulting in less marginal capacity for other players to store their produce.
Solutions:
• The Government needs to step up focus on the storage of commodities other than rice and wheat.
• The entry of private players will provide a huge kick to this sector as these players are providing value-added services, along with the traditional warehousing space.
3. Challenge- Cold storages: Cold storages generally requires high investment along with knowledge about the effects of temperature, humidity, odor on different commodities as well as compatibility of these commodities with each other. Since these are perishable items so any negligence along the value chain may lead to spoilage of these commodities, so the above factors become important with the emergence of multi commodity facilities.
Solutions:
• Controlled Atmospheric storages
• Ripening chamber
• Distributed refrigeration Architecture
• Training handlers and workers.
4. Challenge-Container Handling and Storage: Even though CFS/ICDs have benefits but other modes of transport such as road and rail are used extensively. ICDs have issues regarding disparity in ocean freight rates, congestion in rail corridors and following traditional setups for delivery purposes.
Solutions:
• The shifting from road to rail will help flow of cargo from far away regions to the ports.
• Dedicated freight corridors can provide support to the railway services.
• The government agencies, ports and shipping lines can work in collaboration to achieve the objective.