Strengthening Goa’s network through the New Logistics Policy 2023

The New Logistics Policy that emulates the five pillars of the National Logistics Policy, aims to bring about massive unity to the logistics and warehouse sector in Goa

The policy of 8 chapters pictures a future of a smooth-sailing industry that will contribute immensely to Goa’s economy. In the Preamble, the policy aims to achieve several goals that includes increasing employability within the state, contributing to the national economy, and creating efficient logistics networks. Through the Gati Shakti National Master Plan, the state aims to integrate individuals from different departments to the national portal and take on demand-centric planning based on current requirements and future prospects.
The eight objectives include the common goal of improving the logistic sector, granting ‘Industry Status’ to current logistics blocks, promoting accessibility within the agricultural industry and growth in the ship-building industry as well as promoting better ecosystems for Third Party Logistics Companies (3PL). Similarly, it also includes aims to elevate skills and employment in the sector. In addition, setting up of a common interface to share data and creating digital tools would help to keep a check on performance and network planning are also included.

Looking Inside the Policy

The Logistics Policy highlights several essential measures to achieve progress. Major developments along the national highways are either under progress or reaching completion. While these projects are beneficial, the policy highlights the need to develop the Kochi-Mangalore-Goa stretch including roads leading from Hubli and Karwar to Goa that would aid in industrial connectivity. Similarly, at the city and the district levels, the government would also need to establish the means to accelerate road repairs and constructions.

Inland water transport is sustainable and cost-efficient and hence a land area of 14,380 sqm was granted to the Konkan Maritime Cluster (KMC), making it the first of its kind at Verna Industrial Estate that would aid the ship-building industry. The policy thus, covers the initiatives for inland water transport development that includes the proposal of The Captain of Ports Department to complete the construction of four floating jetties in the Mandovi and Chapora River. The policy also suggests the establishment of hinterland trade through waterway connectivity to the coastal states of Gujarat, Maharashtra, and Karnataka, among other recommendations.

To improve the rail logistics sector, the government would need to establish a systematic rail system that provides easy accessibility to northern and eastern India and so the need of the hour is to first resolve several issues concerning the infrastructure, large warehousing capability, and availability of labour among others, that make it difficult to transport bulk cargo to Goa through the rail system. Moreover, a step towards regular interaction and engagement channel with railways to prioritise freight schedules from Goa including infrastructure support like cold-chain, RO-RO service warehouses etc, among other important initiatives have also been highlighted.

With respect to the airway logistics sector, developing a Free Trade Warehousing Zone (FTWZ), an Integrated Logistics Park (ILP) in areas surrounding the Manohar International Airport along with the development of truck terminals and transport hub to ensure availability of commercial carriers proves essential. In addition, bringing state-of-the-art technology like plug-and-play system models and infrastructure to increase air cargo capacity at Dabolim as well as channelling with the international market for the purpose of exporting goods, and creating a robust logistics planning integrated with a multi-modal planning system that ensures for the quick movement of airway cargo comprise urgent requirements.

Mormugao Port Authority is currently improving the Berths and Barge Jetties based on Public Private Partnership (PPP). The Government of Goa in collaboration with the Ministry of Ports would work towards boosting the container logistics for the standardisation and containerisation of cargo at Mormugao Port. Hence, the government intends to improve feeder services at the Port, including the containerisation system of cargo in the State. The government also aims to utilise government-owned ports that have been out-of-use. Lastly, aims to ease the export process, and develop the in-port storage and packaging services have also been taken into consideration.

Through the arrangement of PPP or collaborations with private developers, the Government hopes to set and improve transportation terminals by establishing truck parking spaces, loading/unloading zones, driver restrooms and other provisions. Going green, the State intends to use EV cargo vehicles for last-mile delivery. The State will also push for green logistics by bringing in green technologies in vessel operations for the purpose of inland water transport. All initiatives are taken keeping in mind the necessary precautions to sustain the environment.

Under this policy, the cold chain, processing and testing facilities in Goa would be aided with multi-purpose cold storages be it for agro-products, fisheries and pharmaceutical companies including integrated cargo complexes at major airports and sea ports, testing centres for perishable and semi-perishable products. Further the Agricultural and Processed Food Products Export Development Authority (APEDA) and Marine Products Export Development Authority will be established, as well as PPP testing labs in order to conduct quality checks. The setting up of food parks like that of Mega Food Park Scheme would allow to create direct link from farms to consumers.

Anirudh Agarwal, Chairman CII Goa

To amplify the efficiency of Multi-Modal Logistics Parks, the Balli Inland Container Depot (ICD) would undergo development to operate domestic and international cargo, along with improvements in MMLPs connectivity with the national highways among other initiatives are considered. According to Anirudh Agrawal, Chairman, Confederation of Indian Industry (CII) Goa, “The logistics sector in the country is witnessing a rapid rise in demand for freight-forwarding, warehousing, and supply chain. This increase in demand for logistics and warehousing certainly augurs well for Goa, considering the geographical location of the state. There is an urgent need of leveraging upon the strategic location and existing infrastructure of state in terms of port, airport, rail, and road network and attract investment in the sector for developing it as a significant logistics hub of the country.

By providing interest subsidy and incentivising capital investment along with reimbursing cost for skill upgradation of youth, the new logistics policy has rightly focussed on the development of warehouse infrastructure and human resource development which would create the required ecosystem for logistics players and create multiple opportunities in the sector along with attracting investment in the sector. However, implementation of the schemes at the ground level would play pivotal role for the growth and development of the sector in state.”

“A designated area for setting up a transport hub in the industrial estates can prove to be a useful strategy,” says Agrawal.

Using the (, under Know Your Approvals, investors can gain access to the requisite clearances and apply for each the same. A Centre of Excellence (CoE) would be established under the District Skill Development Plan (DSDP) to provide the necessary training and skills as per the requirements of the logistics sector. All the benefits mentioned in the policy will be applicable for the first 2 years from the issue date, in order to encourage involvement from the private sector and for investment purposes, after which the policy could be reviewed and modified accordingly. The government will reimburse 50 per cent installation costs like tracking devices, including the costs incurred for Quality Management System capped at a of maximum `5 Lakhs. In addition, the government will also reimburse 50 per cent of the cost involved to train and upgrade the skills of the workforce, among other financial benefits.

The Goa Investment Promotion and Facilitation Board (Goa-IPB) has been appointed as the State Logistics Cell that will cooperate with the Logistics Division in the Department of Commerce, Ministry of Commerce and Industry, GOI to ensure that the State’s Logistics endeavours is on par with the national level.

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