Prakash Tulsiani, Executive Director & COO, Allcargo Logistics Ltd, says that the smooth rollout, implementation and execution (with minimal or no business interruption) will be the deciding factor for the success of GST.

How much of an impact do you think the rollout of the Goods and Services Tax (GST) will have on the sector as a whole?
Our country currently spends around 14 per cent of its GDP on logistics compared with developed countries where this percentage is around 8-9 per cent. Implementation of GST will create a single window clearance and uniform tax structure across the country, thereby creating a common ground without differentiating (between) interstate and intrastate sales. GST implementation will compel manufacturing and retail companies to restructure their warehousing policies. As such a move will be very capital intensive, companies will the same to professional and experienced logistics solution though we have 2.6 million sq ft of warehouses across 20 locations in India, we continue to identify suitable locations to increase our footprint. From the preparedness point of view, we continue to monitor policy announcements which may have business implications of GST implementation. With the GST Council the GST rate structure, internally we have started prepping with the possible revised tax and accounting system. The smooth rollout, implementation and execution with minimal or no business interruption will be the deciding factor for the success of GST, one of the radical reforms productively.

How is the government giving a thrust to the shipping & logistics sector?
The Union Budget of 2017-18 has laid a 25 per cent increase in allocations for infrastructure over last year. There has also been a renewed focus on transportation, development of port infrastructure and its automation. Rather than lead to reduction in delays, improve cost- heightened pace of road construction would lead to connectivity to major production and consumption centers, thereby aiding business and the sector. The dedicated rail freight corridor and implementation of GST will help improved customer experience. project are set to play a shipping. For the project to realise its full potential, there is a need for development of industries in and around ports which will ensure there is cargo movement both ways. The the government and other infrastructure-led are a positive reinforcement in this direction.

Around 15 per cent of a product’s landed cost is made up by logistics. Will this scenario ever change?
Our country is moving at a good pace in dedicated rail freight corridors (DRFC), and development of roads and coastal routes in addition to implementation of GST, which will translate to bringing down the overall logistics costs in India and (bring them) closer to costs prevailing in developed/fast-developing economies.

What is your assessment on the Indian Railways’ efforts for seamless connectivity of shipments, or will the roads sector continue to account for the maximum movement?
The government has had a renewed focus on the issue of connectivity through railways — if one is to go by the recent announcements. With 21 port-rail connectivity projects under the Sagarmala programme, the rail ministry will invest close to Rs 20,000 crore to develop and improve the railways for better connectivity of shipments. This in turn would be complemented by the Bharatmala project which aims to improve port connectivity in the country by improving the connectivity of national highways to coastal and border areas. One of the major hindrances to move cargo by rail is the high cost, as compared to road and coastal movement. Hence, the popularity of movement through roads. The testimony to the fact that seamless connectivity through railways is on the cards.

Has the government done enough to address the road safety situation?
Road safety has been one of the major areas rule out corruption. The new Motor Vehicles (Amendment) Bill 2016, once passed into law, other safety violations. The law would also de-of continuous driving, besides increasing awareness amongst the corporates to hire and train them with improved standards of living. permit raj in the road sector. Online vehicle registration, Aadhaar-based licensing and a national vehicle registry are prominent (moves) to reduce the discretionary powers of the state and curb rampant corruption.

Lack of adequate draught and absence of portside connectivity have been the two major challenges impacting port-led development. Can these obstacles be overcome?
Deep draught ports are the need of the day, especially with increased vessel sizes and increased Indian trade volumes. We are seeing port — JNPT — has in the last 18 months increase the draught. Port-side connectivity is also being addressed with rail and road connectivity better inland transportation. been initiated.

How can schemes like Sagarmala bring down the logistics cost in the country?
A study released by the Ministry of Shipping estimates that the Sagarmala project can save up to Rs 40,000 crore per year on of cargo using the coastal shipping line — rail transport. Sagarmala aims to leverage to drive industrial development, thereby reducing the load factor of goods transported through roads.


Mumbai Marathon 2017 was held on 15th of January 2017. This is a unique sports event of Avvashya Group which not only supports social causes that it strongly believes in but also involve employees through employee engagement programme. The run was to support Alert India, Light of Life Trust and Save the Children India NGO’s.

A delegation of 75 employees represented the Avvashya Group. 48 employees ran the dream run category, 25 employees ran the Half Marathon and 2 employees ran the Full Marathon.

The runners were faliciated with medals from Dr. Shashi Kiran Shetty & Ms. Aarti Shetty at the Mumbai Headquarters.

We really thank each and every participant who volunteered for running and consequently supporting social cause.

We look forward for more enthusiast next year!



World Economic Forum has identified Allcargo Logistics as one of the 26 Indian companies in its Global Competitiveness Report 2016-17.

India’s competitiveness has improved as the country rose to the 39th rank from last year’s 55th rank, among 138 countries. 

Allcargo has been named with the likes of Ola cabs, Apollo Hospitals, Dabur India, Forbes Marshall, Parle Agro, Paytm, WNS and many more.

These companies have been pivotal in catapulting India’s ranking.

This is a rare moment of recognition.

Read full article here


Allcargo Chairman seeks to keep the momentum going.

It is another tough year for the container shipping industry and businesses affiliated with it, but Allcargo Logistics seems to be rising above the doom and gloom.

Downoad the complete PDF of this article here - Containerisation International

Founded in Belgium in 1987, ECU Worldwide (erstwhile ECU-LINE) the company was eventually acquired by Allcargo Logistics in 2006. Some seven years later Allcargo Logistics went on to take over Econocaribe a leading LCL consolidator in the US. Through these acquisitions strengthened the company’s operations across the globe. In its latest move Allcargo Logistics has rebranded its global subsidiaries, ECU-LINE, Econocaribe and China consolidators to ECU Worldwide with the tagline “Geography Simplified.”

Download the complete PDF of this article here - Asia Maritime

The idea that the home of the world's biggest neutral non-vessel-operating common carrier is found in India is still surprising a decade after Mumbai-based allcargo logistics acquired ECU-Line, now ECU Worldwide.

Download the complete PDF of this article here - American Shipper

Lloyd’s List Asia Awards, 2016, one of the most coveted awards in the Asian shipping and logistics industry felicitated Allcargo Logistics with the ‘Logistics Award’ at the awards ceremony held on 20th October, 2016 at Shangri-La Hotel, Singapore.

The Lloyd’s List Award series recognises the industry’s successes, setting a benchmark for excellence while rewarding innovative ideas and concepts that have pushed the boundaries of what is possible. Lloyds List Asia, which is a part of Maritime Intelligence, recognises best of logistics professionals and companies in Asia.

Allcargo was adjudged as a winner by a jury of global industry leaders for its excellent end to end logistics services and its dedicated focus on using local talent to find results in a challenging market. The North East Agra project, a first of its kind power project undertaken by Projects and Engineering Solutions Team was submitted as a nomination to substantiate Allcargo’s capability of delivering maverick projects efficiently.

Besides, the 2016 Asia awards’ judges have considered the difficult market conditions faced by the industry globally, which has made this achievement for Allcargo all the more noteworthy.

The award was collected by our representatives from the Singapore office.

Shipping & Logistics industry’s largest awards ceremony, Maritime And Logistics Awards, 2016 was held on 28th September, 2016 at St. Regis Hotel, Mumbai. Over 500 representatives from Shipping Lines, Logistics Service Providers, Transporters, CHAs, Industry Associations, Ports, as well executive management of private sector companies, got together, to felicitate and recognize the achievements of organisations through the year.

Leading organisations were awarded across varied categories for their performance in the logistics space. As one of the Guests of Honour, Mr. Adarsh Hegde, Joint Managing Director, Allcargo Logistics addressed the gathering and appealed to the industry to work together to overcome the difficulties that it is currently facing.

Mr. Hegde, also introduced ‘Nipun’, Avashya Foundation’s noble initiative of imparting skills to the youth belonging to the lower strata of the society and help them build careers, leading to financial stability. This was followed by a short AV of Nipun. Mr. Hegde, latter also said that it is essential for organizations to focus on skill development and invited on stage Dr. Nilratan Shende, DGM – CSR, Allcargo Logistics and one of the beneficiaries of Nipun, Mr. Akash. While Mr. Shende imparted the message of importance of organizations being socially responsible, Mr. Akash explained how his life changed for better after being trained at Nipun and expressed his gratitude for helping him build a better career. 

At the felicitation ceremony, Allcargo was conferred with two awards for outstanding business performance. Below are the awards we have received.

  1. Logistics Super-brand of the year
  2. Heavy Lift/Project Mover of the Year

Mr. Adarsh Hegde was felicitated as ‘Dynamic Logistics Professional of the Year’, for his contribution towards the industry.

The logistics sector has benefited immensely from the emergence of organised retail, increase in foreign trade, and the Make in India campaign that is aimed at turning the country into a manufacturing hub. Shashi Kiran Shetty, founder & chairman of Allcargo Logistics Ltd tells Ateeq Shaikh that the growth in online shopping, which has so far helped logistics, is set to accelerate in the coming years and will put significant pressure on the sector. This will mean significant investment in technology, quality of people, delivery network to manage small infrastructure, says Shetty. He also discusses the challenges faced by logistics companies due to lack of proper infrastructure, which increases the logistics cost in the country to around 10-15% as compared to 3-4% for other countries. But Shetty believes that India still has a big opportunity. The implementation of GST will open up a plethora of opportunities for the logistics players and make inland transport more cost effective.


Q) What are the strengths and weaknesses of third party logistics (3PL)?

A. To list out, strengths are the improving end-consumer services provided. Secondly, third party logistics immensely helps companies in reducing their capital investment and among the last points, it improves the overall efficiency. The disadvantages are the need to share confidential information with the 3PL service provider and difficult to establish a cost-effective partnership.


Q) With e-commerce sector mushrooming, how has the logistics changed in the country and how much has it has contributed to the overall industry growth? How do you see the sector evolving in the coming years?

A. India's e-commerce market is likely to touch $38-billion mark in 2016, a massive jump over the $23 billion revenues clocked by the industry in 2015. E-commerce will contribute to 70% of their total revenue. Online shopping is picking up fast in all the major cities. With increasing penetration of the Internet and mobile commerce, online shopping is expected to penetrate into tier 2 and tier 3 markets. This growing demand will put significant pressure on logistics - to ensure that the right product is delivered in the shortest time at the lowest possible cost. This will mean significant investment in technology, quality of people, delivery network to manage small infrastructure (good quality warehouses). Logistics companies need to create operating models, infrastructure which can scale up during seasons and scale down during non-seasons.


Q) In India, the overall logistics costs remain high as compared to global standards. What are the reasons? How can the costs be reduced? What measures are needed from the industry players as well as from the government?

A. As a country, we are facing trade deficit as China is our largest trading partner and their economy is not doing well. India has been facing its ripple effects. But, we are bracing up and are well placed to meet domestic demands as well as demand from the other countries. In fact, logistics will play an important role in Make in India. India's poor infrastructure has been a challenge. But the new government is addressing it with new initiatives. The results will take some time to show. GST will also help as stoppage and fuel consumption should help in removing bottlenecks.


Q) Despite various initiatives like Make In India, law reforms, ease of doing business, developing waterways, dedicated freight corridor, etc, the manufacturing sector is still struggling. How has it impacted the logistics industry?

A. The Indian logistics sector has benefited immensely from the emergence of organised retail, increase in foreign trade and India becoming the manufacturing hub. However, it continues to face challenges due to lack of proper infrastructure which is one of the major deterrents to its growth. The infrastructural bottlenecks increase the logistics cost of the country to around 10-15% compared to other countries where it is only 3-4%. Besides, the lack of trained human resources is another challenge for the sector. Saying that, with the current impetus of the government, we believe that India still has a big opportunity compared to other countries.


Q) How will Goods & Services Tax change the dynamics of the logistics industry?

A. At the moment, a majority of India's logistics challenges are related to wastage of time, fuel and investments due to multi-level taxation, regulations, policies and approval mechanism between different states. Today, from a business perspective, each state is a different country when it comes to moving EXIM (export/import) cargo or any other product within India. The implementation of GST will not only bring efficiencies across all the businesses but will also open up a plethora of opportunities for logistics players like us. For logistics players like us, the introduction of GST would allow us to aggregate state-based warehouses into large, regional warehouses that offer cost and operational efficiencies in big markets. As logistical inefficiencies and primary transport costs reduce, the hub and spoke model will proliferate, improving service levels. This will make inland transport more cost effective. GST is expected to facilitate removal of check posts at state borders, which will cut travel time and aid faster road freight.


Q) What kind of growth is anticipated with the implementation of GST?

A. The key verticals benefiting from GST would be our vertical of contract logistics and logistics park that is Avvashya CCI and our logistics park project at Jhajjar. With the GST becoming reality, we expect to substantially improve the efficiencies in our contract logistics business segment and transportation & equipment business in terms of transportation turnaround time, lesser number of check post and operational expenses rationalisation, fewer number of warehouses by the companies, keeping in mind purely the commercial thing rather than the taxes of the different states.


Q) With the changing scenario in the logistics sector in India, what will be the share for logistics for each mode of transport - road, rail, air, and inland waterways by 2020?

A. Many research reports claim numbers. Given the current fragmented state of logistics, it is difficult to comment on the exact percentage. However, with the government announcing various initiatives in almost every sector, we are confident that each of the segments will witness significant growth opportunities in the coming years.

A container customized to accommodate a bar, DJ console and lights, signifies that we at Allcargo and ECU Worldwide have lots of fun in what we do and love to share the fun with our customers. The Funtainer took months to get its shape. It will set out on a journey across the world, to visit major ports in major cities across US, Europe, Americas, Australia, Africa and Asia to connect us with our customers in these regions.

Funtainer’s next destination in Antwerp Belgium. Our mascot Captain Funtastic will soon begin his journey to bring Funtainer to connect with each one of you, our business associates and customers for a grand party. 

The fun-filled Funtainer unveiling event opened with thrilling aerial acts. The event saw 400+ customers of Allcargo and ECU Worldwide participate and network with each other.

Dr. Shashi Kiran Shetty, our Chairman, welcomed the guests with a warm speech and set the stage open for vibrant performances. Amidst the 3D mapping, the Funtainer, was thrown open for people to enter it and click selfies.

The Funtainer was prepared at our CFS near JNPT. What first looked like a normal 20’ container, was transformed into this cool container with elements of entertainment. Thus the name Funtainer. Our guests were treated to scrumptious food and drinks while a band performed and engaged with them. We have also partnered with Grow Tress to plant trees in the name of every guest as a return gift. Token certificates of this initiative were given away to all the guests who participated in the Funtainer launch event.

Bringing you some glimpses from the event as it progressed.

Captain Funtastic will soon set out with the Funtainer for Antwerp, Belgium.