‘CJ DARCL Logistics is the smart logistic player operating on asset right model’
Published on : Saturday 05-08-2023
Nikhil Agarwal, President – CJ DARCL Logistics.
From a small beginning to a country wide network; is there any corner of India not serviced by CJ DARCL Logistics?
CJ DARCL Logistics Ltd initially started as Delhi-Assam Road Corporation Limited (DARCL Logistics) had a modest but sound beginning, commencing with a single truck plying Delhi to Assam and vice-versa. With the expansion of services over the years, CJ DARCL Logistics emerged as a leading operator with a customer base of over 2000 companies. Started in 1975 as a family business, the company today has grown to 170 plus branches pan India with a network of 4k plus employees, etc. The company has a right mix of owned and leased market fleet of over 800,000 vehicles. It rakes over 700 plus multi-dimensional containers pan India and provides single window solutions to its customers via door-to-door services. CJ DARCL Logistics being the smart logistic player operates on an asset right model thus increasing its efficiency and reachability in all the regions of the country. In keeping with its principles of being an agile, responsible, collaborative, and customer-centric company, CJ DARCL aims to become India’s No. 1 Total Logistics Service Provider by 2027 while believing in humanising efficiency.
Integrated Logistics Solutions is what customers in general, the manufacturing industries increasingly rely upon. What are the types of services the company offers?
CJ DARCL Logistics which has been instrumental in shaping the economy with its services having been in existence for more than 4 decades. The company offers various services like FTL, Coastal, Rail, Air Cargo, Warehousing & Distribution, Project logistics, Contract logistics, Renewable Energy, etc.
Full Truck Load – One of the core offerings of CJ DARCL freight division is Full Truck Load (FTL) services, including end-to-end multimodal transportation with loading services catered through owned and hired fleets for bulk goods movement on a pan-India basis. Whether the customer requirement is for customised or specialised fleet, as a Full Truck Load service provider, CJ DARCL assesses individual’s business needs and aligns with the carrier that can comprehend the shipment deadline in the most cost-effective way. To ensure seamless movement, our team CJ DARCL upholds the right knowledge of the central and state laws and regulations, their transit requirements, and modalities. CJ DARCL offers ideal transport economics in terms of freight management and carrier allocation on a need basis, so the cost advantage can be passed on to the customers by booking the shipment in the same trailer/truck or separately.
Shipping/Coastal Services – CJ DARCL started its shipping/coastal service operations between India and Bangladesh in the year 2017-2018. At present, CJ DARCL Logistics undertakes the total responsibility of marketing and generating bookings for both the vessels Ship-owned-containers (SOC) and Carrier-owned-containers (COC). Major commodities exported by the company include ferrosilicon, sponge iron, garments/ fabrics, auto parts and some hazardous cargoes. Apart from the container vessel movement, CJ DARCL Logistics also operates in breakbulk movement through barges, using the Indo-Bangladesh Protocol Route. The commodities that are majorly transported through barges include food grains, steel, coal, etc.
Multimodal Transportation via Rail – With the intent to reduce carbon footprint, CJ DARCL Logistics transitioned its road transport operations to rail services to its discerning and delighted customers. In keeping with such a working philosophy, it ventured into the rail transportation business, by signing a PCTOs agreement with the Indian Railway, for operating its own container trains on the Indian railways network. The company delivers customised multimodal transport solutions in combination with road and rail at PAN India level as well as geographically connected to SAARC boundaries of the countries.
Project Logistics – CJ DARCL ventured into project logistics with cargo handling, involving transportation of high-value, specialised and critical equipment. It includes steel, power (hydro, gas, thermal & solar), Oil and Gas, as well as petrochemicals, cement, infrastructure for highways and state roads, ports, metros, dedicated freight corridors, bullet train tracks, oil field equipment such as rigs, etc., across India – utilising multiple modes of transport. Over the period, CJ DARCL’s project team developed different capabilities to undertake and execute turnkey logistics for project cargo, comprising all types of cargo including general, Over-Dimensional Consignment (ODC) and Overweight (OW)/heavy lift consignments.
Warehousing & Distribution – CJ DARCL Logistics offers multi-user warehousing facility which comprises of storing products in a warehouse, in addition to these services it also holds the basic capabilities of maintaining shelf-life of a product, product mixing, packaging, cross-docking, bar-code scanning, order-fulfilment, and other ancillary services. As per the demand and specific characteristics, products are stored in different types of warehouses such as climate-controlled, ambient, automated, fulfilment centres and distribution centres.
Air Cargo – With the vision of becoming the total logistics service provider, CJ DARCL Logistics backed with constant innovation and strategy for the last mile deliveries to fulfil its customers’ needs. Being one of the most preferred and authorised cargo agents for all major airlines in the country, CJ DARCL offers seamless services to its customers in India, including dedicated cargo freighter charters for its premium customers.
Supplementing the system, CJ DARCL Logistics has impeccably designed its distribution channels that, allows them to deliver best-in-class logistics services to all the significant sectors, such as FMCG, Metal and Mining, Oil & Gas, Consumer Durables, Automobiles OEM, Pharmaceuticals, Tyres & Rubber, Renewable Energy, and others. It has a strong presence in the construction equipment business in South India mostly through MNCs. With such reliability and experience in the organisation, the employees are well-versed with the customer and market needs. Current market-needs emphasise more on multi modal solutions such as customised containers, which allows the company to carry long-heavy products such as pipes, bars, dwarf containers for light weight cargo, openable containers for glass product movement, etc.
Which are the sectors that CJ DARCL Logistics caters to currently and which are the growth drivers for you?
CJ DARCL Logistics offers industry wide solutions ranging from FMCG, Metal Mining, Oil & Gas, Consumer Durables, Automobiles and OEMs, Pharmaceuticals, Tyre & Rubber, Renewable Energy, etc. CJ DARCL Logistics is focusing on offering multi-modal solutions to its customers ensuring end to end logistics solutions which are both cost effective, and time bound. Having warehouses at the strategic locations, the company offers rail, air, coastal and road transportation with in-house freight forwarding team to ensure seamless experience, and a robust network spread across the country. The Company has recently started the last mile delivery option which works on a hub & spoke model which makes it convenient for small businesses for hassle free transportation of their goods. CJ DARCL Logistics, among the first forwarder to handle and clear Solar Imports, emerges as the largest forwarder in handling Solar Imports in India. CJ DARCL Logistics pioneers the industry with tech enabled solutions by integrating its fleet with a dual tracking system which includes both Sim- and GPS-based tracking from the dedicated control tower to ensure accurate locations and a dedicated customer panel for having real time updates for the customer. Operating on Customer first philosophy, CJ DARCL Logistics introduced its’ customised containers which are designed for specific industries keeping in mind the challenges faced by the industry to reduce the damage being caused to the material being transported.
The company operates with its own fleet of vehicles plus those sourced from the market. What is the nature of the fleet composition in terms of tonnage/make?
CJ DARCL works on the asset- right model therefore it reduces the liability of the company. The company operates on the market mix of 8 lacs plus fleets and 1000+ owned fleets. This strategy helps in maximising the working capital for other significant operations.
Carrying cargo by trains, whether containers or RoRo services offers environment friendly alternatives. But even with road operations what about the carbon footprint?
India wants to cut its carbon footprint by 45% and achieve carbon neutrality by 2030. Road transportation accounts for 74% of the emissions produced by the logistics industry, which account to 23.3% of the total. Road transportation produces 40 times more CO2 than rail, while coastal routes produce 700 times less. Considering the importance of environmental, social, and governance (ESG) factors, CJ DARCL is transforming its operations from road to rail, coastal or air, based on the long and short haul distance requirements. The company continues to explore ways to reduce or eliminate carbon footprint and contribute to a sustainable future. CJ DARCL Logistics promotes renewable energy by transporting solar panels pan India. CJ DARCL is also looking forward to switching to alternate fuels or EVs to contribute to the environment with the readiness of the infrastructure.
How are you planning your investment and expansion plans in the year 2023-24? What kind of growth are you expecting in the year 2023-24? What is your outlook on 2023-24?
CJ DARCL Logistics is continuously expanding its new verticals such as Air Cargo, Warehousing & Distribution, Railways, Coastal, Project Cargo, etc. CJ DARCL Logistics is dedicated to improving and innovating their transportation methods to become a leading total logistics service provider by 2027.
The company is switching to advanced technology and automated its operations to increase efficiency of the organisation. Multimodal transportation helps in exploring faster routes to deliver the cargo safely and timely. CJ DARCL Logistics operates in break-bulk movement between India and Bangladesh through barges and uses multi-dimensional containers to carry various cargo types, including long products like pipes and bars. CJ DARCL also uses specialised containers to carry different cargo types as per the clients' requirements and have integrated automated material handling machines to improve efficiency and cost-effectiveness in their warehousing operations. The company is committed to providing customer-centric solutions, promoting carbon neutrality, enhancing productivity, and reducing damage and overheads.
Sharing the outlook of CJ DARCL with the vision to establish complete multimodal transport and connectivity solutions, in the coming years which will ensure the company to provide cost-effective solutions and timely deliveries.
For a business model that operates on deadlines, reliability is extremely important. What is the nature of the servicing and maintenance processes?
CJ DARCL has implemented diagnostic programs to ensure the proper functioning and maintenance of their vehicles. In order to provide customised solutions that cater to their customers' needs, the company has outsourced various Original Equipment Manufacturers (OEMs) for modifications and service maintenance. The vehicles undergo regular safety and quality checks, and they are only allowed on the road once all the necessary criteria have been met. To comply with the company's standards, proper documentation, registration, and insurance are mandatory for all vehicles before they can be approved for on-road operations.
Infrastructure bottleneck is one of the major roadblocks on the highway to ‘Make-in-India’. What are the bottlenecks that need to be addressed in your opinion?
The Indian logistics industry has grown steadily and rapidly in recent years, owing to the country's expanding manufacturing and retail ecosystem. As a result, the main issues that the logistics industry is currently facing are inadequate infrastructure, outdated technology, and a lack of digitisation. These factors have an impact on supply chain management, transportation, and cost, making it difficult for logistics companies to remain competitive. The Ministry of Road Transport and Highways (MORTH) has taken steps to address these challenges by building high-quality infrastructure, streamlining regulations, fostering standardisation, addressing security concerns, and promoting sustainable practices and technologies. For the logistics sector to operate smoothly and positively the government and industry must coordinate and strategise their policies and regulations accordingly. CJ DARCL is implementing multimodal connectivity in its operations and integrating technologies to stay ahead of its competitors.
Also, education and training play a vital role in the industry especially for drivers. But many drivers lack the necessary skills and knowledge to operate large commercial vehicles safely which results in accidents, delays and other issues that impact the entire supply chain. In order to address this, we need to promote education and training through various programs and initiatives. By doing so, we can tackle the bottlenecks and challenges in the industry.
Explain in detail the emerging technologies in the logistics space.
The future of logistics is being shaped by technology, and the sector has embraced it even more during the pandemic to avoid disruptions. Companies face challenges in estimating demands, allocating capacities, and transporting products, which emphasises the need for rapid adoption of technological solutions. The benefits of technology in logistics are numerous, including improved visibility, cost, and error reduction, and enhanced operational efficiency, turnaround times, and speed.
Technological solutions such as artificial intelligence (AI), big data, Internet of Things (IoT), automation, and robotics are transforming the logistics sector. AI is used for predicting and planning logistics, focusing on capacity planning, network optimisation, and last-mile delivery. Deploying AI and automation/robotics in freight, such as autonomous trucks, and intelligent warehousing with machine vision and automated guided vehicles, etc., will be a game changer and may lead to a robust automated supply chain. Big data and analytics enable real-time tracking and tracing, while blockchain is being explored for data and identity security in logistics.
CJ DARCL Logistics understands the importance of technology as an enabler for providing end-to-end services to customers. The company utilises technologies like Transportation Management Systems (TMS) for tracing and tracking, and pilot applications like Webex to improve operational efficiency. It continuously seeks new ways to enhance operations and provide cost-effective transportation solutions. By adopting these technologies, logistics companies can achieve real-time information and better serve their customers.
CJ Logistics' TES Logistics Technology Research Centre in Korea focuses on developing core technologies, including Technology, Engineering, Systems, and Solutions, to achieve logistics excellence. While the adoption of technology has many benefits, the McKinsey report highlights that only a small percentage of logistics companies in India have implemented digitalisation in their products and services. CJ DARCL's commitment to adopting new technologies places them ahead of their competitors and reinforces their position as one of the leading logistics companies.