Evolving Logistics: Alternative Fuels and Digitalization Driving Sustainable Growth in India
Key Ideas
  • India's logistics sector is rapidly evolving with a focus on alternative fuels like LNG, EVs, and hydrogen for sustainable growth.
  • CJ Darcl Logistics President, Nikhil Agarwal, highlights the potential of LNG for long-haul and EVs for short-haul logistics.
  • Mainstream deployment of LNG vehicles is expected within 6 months to a year, while EVs face challenges due to high costs and limited range.
  • Hydrogen is seen as suitable for long-haul heavy applications in the future, but challenges like transportation costs need to be addressed.
India's logistics sector is undergoing a significant transformation with a strong emphasis on adopting alternative fuels and digitalization to drive sustainable growth. In an interview with ET Digital, Nikhil Agarwal, President of CJ Darcl Logistics, discusses the role of liquefied natural gas (LNG), electric vehicles (EVs), and hydrogen in shaping the industry's future. While LNG is considered more suitable for long-haul freight and EVs for intracity use, the deployment of these alternative fuel vehicles is still in the exploratory phase, with challenges such as high costs and infrastructure readiness. Agarwal mentions that mainstream deployment of LNG vehicles could happen within the next 6 months to a year, while EVs face limitations due to pricing disparities and range issues, especially in long-haul applications. Hydrogen, on the other hand, is seen as a potential option for long-haul heavy applications in the future, although challenges related to cost-effective transportation need to be addressed. The logistics company is actively tracking carbon emissions through its Transport Management System (TMS) to measure and reduce its environmental impact. CJ Darcl is also focused on supporting smaller vendors and downstream partners in adopting new technologies by investing, testing, and addressing challenges that arise with the introduction of innovative solutions. Agarwal highlights the importance of working with small fleet owners (SFOs) in modernizing and integrating them into the evolving logistics landscape. The company is developing a digital platform to provide SFOs better access to resources like finance, insurance, and maintenance services. Regarding multimodal infrastructure, CJ Darcl has been exploring rail and coastal freight options to diversify its operations beyond road transport. Agarwal acknowledges the government's initiatives like Sagarmala and inland waterways, noting their potential to enhance India's logistics network and improve efficiency in freight movement.
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