DP World launches Log-X platform in technology push for Indian logistics sector

October 12, 2019: Global trade enabler DP World has taken a step towards digital transformation of the logistics sector with the launch of Log-X, a national technology accelerator platform for logistics.

Launched on October 11 in Mumbai, Log-X aims to catalyse the start-up community to build smart trade solutions using digital technology to revolutionise the logistics sector. The accelerator programme will be run in cities like Mumbai, NCR and Bangalore, in partnership with Invest India, Kerala Start-Up Mission and DP World’s accelerator partner Startup Réseau, to encourage innovation and technology adoption in the Indian logistics sector.

The programme will focus on digital technologies like Blockchain, Artificial Intelligence, robotics, simulators and Internet of Things (IoT). It will seek to identify logistics-focused technology start-ups through the Startup India portal and will look to bring on board up to 10 selected start-ups for conducting pilots. The programme will extend industry credibility to the selected start-ups, offer an opportunity to do a Proof of Concept (POC), give them access to DP World’s network of customers, partners, mentors and investors, and offer the potential to raise strategic capital. The finalist start-ups will be mentored by the DP World leadership team and external mentors.

Speaking at the launch event, Rizwan Soomar, CEO and MD, DP World Indian Subcontinent, said, “There’s an aggressive strategy we have in terms of growing infrastructure in the country. Infrastructure building is the key to actually building logistics efficiency and to bring the cost of logistics down in India. The 13-14 percent [cost of logistics] that exists in most publications and journals as percentage of GDP, has to come down to 8-9 percent which is what most developing economies have. This has two implications; 1) it makes Indian exports more competitive. For every 10 percent reduction on cost of logistics, there is a 10 percent jump in exports. It’s a very strong correlation. The cost of logistics has a very important role to play in terms of achieving GDP growth, in ensuring the Indian economy is out there competing with all the other economies. 2) The shift to multi-modalism. Sixty-five percent of the freight in India is by trucking, while in most developed economies it is 25 percent. Clearly, there has to be a shift from trucking to other modes of transport. We want to be the company that makes the choice available to Indian exporters-importers and people in the logistics business. These are the two big trends that I’d like to focus on.”

Soomar and Mike Bhaskaran, global chief digital officer, DP World officially launched the Log-X programme, which will be run in two phases starting October 11 and including a boot camp for selected start-ups. It will end with a demo presentation in March 2020.

“For us, technology plays an extremely important role. You can buy assets across the supply chain, however, if you don’t integrate it, we are not able to actually give a supply chain deliverable to the customer that ensures capability, aggregation and the ability to scale. Stronger technology adoption in the logistics sector will also improve transparency, reliability and predictability in the supply chains across the country,” added Soomar.

Echoing similar sentiments, Praveen Thomas Joseph, CEO, DP World Cochin said that the terminals business had reached a point where adoption of technology was essential to improve exponentially. “We are a late adopter when it comes to technology. A lot of automation has been done and other developments too… But for us to make the next big leap, it has to be a combination of automation and digitalisation. The digitalisation is the part where we are missing [sic],” said Praveen.

The Log-X launch event also saw three start-ups make pitches to DP World. LightMetric, founded in February 2015, helps enterprises with large fleet operations monitor driver behaviour to improve safety, efficiency and compliance. CredAble, founded in March 2017, operates in the finance space facilitating early payment solutions. Wobot Intelligence is an AI first plug and play SaaS that uses business’ underutilised video data from existing CCTVs using innovative action recognition/prediction and person re-identification architecture to help them manage their business more efficiently.

DP World invited other start-ups to enrol into the Log-X programme to find solutions to logistics challenges.

Invest India is the national investment promotion and facilitation agency for India, envisaged to be the first point of reference for potential investors. The Kerala Startup Mission, initiated by the government of Kerala, is tasked with creating a vibrant start up ecosystem in the state primarily to foster the growth of innovation lead technology entrepreneurship. DP World operates multiple yet related businesses – from marine and inland terminals, maritime services, logistics and ancillary services, to technology-driven trade solutions.