Allcargo's end-to-end expertise in the renewable energy space makes it the preferred logistics partner in achieving the country's 100GW target by 2022
India's current solar power capacity is 13GW and Allcargo Logistics alone has partnered in the installation of more than 1GW across the country. Even as India surges ahead to meet the target committed to the Paris Climate Agreement, Allcargo with its first-mover advantage and sheer operational strength is perfectly poised to meet the logistical needs of this booming sector.
Renewable energy is the foundation of India's emissions reduction strategy. India has expanded its National Solar Mission (NSM) and set a target of 100GW of installed solar energy capacity by 2022. The country's solar industry is expanding rapidly and by September 2016, total installed capacity exceeded 8GW, a more than 500-fold increase from 2010. A number of domestic and international financing institutions and solar companies have announced investments that will help India meet this target. Assessments from 2014 suggest that India has more than 700GW of overall solar energy potential, that will power the country's switch to clean energy in the years to come.
Back in 2010, when the first batch of solar power installations was set up in India, Allcargo was a pioneering logistics partner for the sector. With each passing year, as the scale and volumes of solar power projects increased in geometric proportions, Allcargo has also augmented its association with the growing sector. The logistics major has worked with each of the top-10 solar power players in the country, handling over 7000-plus 40-feet containers or 15,000 TEUs till date, to emerge as the market leader. "Our end-to-end expertise and unmatched global resources make us the trusted logistics partners for our customers in the solar power space," says Siddhartha Choudhary, head, Sales — Integrated Logistics Solutions, Allcargo Logistics. Today, as the country is surging to meet the government's target of 100GW solar power capacity by 2022, Allcargo has the first-mover advantage to play the role of an enabling logistics partner for the sector.
Practically all equipment for solar power projects in India is imported from China. These consignments primarily land at three ports — Chennai, Nhava Sheva and Mundra — from where they are transported to the solar project sites. Right from loading the container in China and unloading it at the Indian Container Freight Station, to customs clearance and local transportation, Allcargo has dedicated resources and teams to handle every stage of the logistics process. Moving 350,000 plus containers annually, with its own 300 offices across the globe and years of relationships with shipping lines, freight handling is a big strength of Allcargo. In terms of local port operations, be it Nhava Sheva, Chennai or Mundra, the company has its own CFS at each of the ports, lending it huge capabilities and total control of the supply chain. While Allcargo's in-house customs teams ensure fast-track documentation and clearance of consignments, the company has its own fleet of 700 plus trailers, besides long-term arrangements with reputed transporters, for secure and timely transportation of the solar power consignments to the sites across the country. "While other logistics companies outsource all functions to different vendors, we have our own infrastructure and resources to handle every part of the business. As a result of this, our cost to the customer is unmatched," says Mr Choudhary.
With solar power players given tight deadlines for completion of work and the prospect of huge penalties in case of delays, timely execution of all logistics processes is critical - and Allcargo is best placed to deliver on time, thanks to its robust supply-chain management.
With the government committed to adding another 70GW solar power capacity in the next five years and every GW involving the movement of 6000 plus containers, this translates into a total volume of over 450,000 containers or almost one million TEUs. "This is a volume game and Allcargo is a mature partner with a good understanding of this business," says Mr Choudhary, adding that the company's economies of scale accrue immense benefits for the customers.
On the other hand, many Indian companies are going international and setting up solar power capacities in emerging countries like Vietnam, Thailand, Argentina, etc. With its global presence and local expertise, Allcargo also sees immense potential in this emerging segment of the solar power sector.
The years of experience in solar power projects has given Allcargo an insight into the challenges and nuances of the sector. From stalled land acquisition and delayed levelling of the ground, to opposition from locals, there are many factors which can affect the movement of consignments to the site. In such cases, Allcargo has the resources to hold the consignment at its own CFS, or even at the foreign ports for loading at a later date. The legacy of over two decades gives us an edge above the rest. We are able to provide flexibility because of our presence across services, and this controls and cushions the costs for our customers," says Adarsh Hegde, Jt MD Allcargo Logistics.
Be it de-stuffing into domestic containers to save on the shipping line's high container costs, or pressing two teams of drivers to keep the trucks moving round the clock, Allcargo's solutions-oriented approach makes it a leader in the solar power space.
Allcargo has the expertise — and its own resources — to handle every segment of the solar power logistics, giving it an unique advantage in terms of efficiencies and costs. Right from handling the freight at the port of loading and movement to the CFS at the port of landing, to customs clearance and last-mile transportation to the site, each of the key components of the logistics chain is executed by Allcargo's dedicated in-house teams. The company's total control on the end-to-end process yields huge economies of scale. While other logistics companies outsource some or all functions to different vendors, Allcargo has its own infrastructure to handle every part of the business. As a result, Allcargo is able to offer unmatched service points to its customers.