The Future of Logistics: Evolving Landscape and Sustainable Solutions in India
Key Ideas
  • India's logistics industry is rapidly transforming with a focus on alternative fuels like LNG, EVs, and hydrogen for sustainable growth.
  • CJ Darcl Logistics President, Nikhil Agarwal, discusses the potential of LNG for long-haul and EVs for short-haul logistics, along with the challenges of pricing and infrastructure.
  • The mainstream deployment of alternative fuel vehicles like LNG is expected to start within 6 months to a year, while EVs face challenges due to high costs and limited range.
  • Hydrogen is seen as more suitable for long-haul heavy applications, with a focus on operational and economic feasibility, while carbon emissions tracking is becoming increasingly important in the sector.
India's logistics sector is undergoing significant changes, driven by the adoption of alternative fuels like LNG, electric vehicles (EVs), and hydrogen for sustainable operations. Nikhil Agarwal, President of CJ Darcl Logistics, shared insights on the industry's evolution and the company's investment in these technologies. While LNG is considered more suitable for long-haul freight due to the emerging infrastructure and OEM initiatives, EVs show promise for short-haul, intracity transport. However, the high costs and limited range of EVs pose challenges for widespread adoption in long-haul logistics. Agarwal also highlighted the potential of hydrogen for heavy applications, emphasizing the need for a mature ecosystem before extensive deployment. The discussion also touched on carbon emissions tracking, with CJ Darcl actively monitoring and reducing emissions through its Transport Management System. The company is supporting smaller vendors in adopting new technologies by investing, testing, and addressing operational challenges. Agarwal emphasized the importance of modernizing and integrating small fleet owners into the digital ecosystem to improve access to resources like finance and insurance. Regarding multimodal infrastructure, CJ Darcl is exploring opportunities in rail and coastal freight to diversify its operations beyond road transport. Agarwal highlighted the government's initiatives like Sagarmala and inland waterways, noting the positive policy framework but emphasizing the need for efficient implementation by operators and departments to maximize the benefits of these projects.
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