India’s chemical sector shows strong intent but falters in execution. Ambitious projects and policies signal progress, yet weak enforcement, fragmented regulations, and poor safety culture slow momentum. To stay globally competitive, the industry must turn intent into action by strengthening logistics, infrastructure, and accountability across the supply chain.

Experts from across the industry recently discussed the subject at the fourth edition of ChemConnect 2025 themed ‘Disruption, Innovation, & Resilence’ organized by the Indian Chemical News on August 21, 2025 in Mumbai. 

The fourth session of the event titled, ‘Future of Ports, Terminals, and Warehousing for the Chemical Sector’ was moderated by Udeep Agarwal, Principal, Kearney who outlined the fact that trade volumes are expected to double over the next decade but also with a lot of challenges.

“This growth brings tremendous opportunities, but also challenges that need to be addressed. These include building automated warehouses, digitally linking various assets, and advancing the digitalization of supply chain processes. At the same time, regulatory frameworks are becoming stricter, while customers are increasingly demanding safer and cleaner supply chains. This means we must continue to evolve with the times. Policy initiatives such as the PM Gati Shakti plan, the Maritime India Vision, and the National Logistics Policy are important steps in this direction.”

Mahendra Shelke, Head - Logistics, Region India, LANXESS India pointed out the critical fact that unless regulators simplify compliance, incentivize multimodal transport, and make digital systems work on the ground, India cannot achieve the safety, efficiency, and sustainability its chemical logistics sector.

“We are talking about an industry that is on a remarkable growth trajectory. Over the next 15 years, it is expected to reach a size of nearly one trillion US dollars. With this scale, the supporting infrastructure becomes critically important. In the context of international trade, port terminals play a central role, and they must keep pace with rising demand. Progress has been a mixed bag. While we have seen notable improvements, expectations remain very high. For example, my own experiences show that while some areas have improved significantly in the past decade, others remain disappointing. The development of the Vadhavan Port is a major milestone, yet many ports still struggle with limitations. Compliance is another area where serious gaps persist. A few years ago, at the Port of Nhava Sheva, a container carrying hazardous semi-solid material fell from a vessel. The leaking cargo was left open without any guidance on handling and without notifying the customer. This incident reflected a worrying lack of awareness about the risks posed by chemicals and the urgent need to strengthen compliance systems,” said Shelke.

Connectivity is another bottleneck. Despite the presence of ICT systems, internet connectivity at ports is still in a very nascent stage, which affects operations and transparency. The government has announced several infrastructure projects, which is encouraging, but gaps remain, both in terms of capacity and, equally importantly, quality. This brings us to the question of how far we have progressed and how much further we need to go. Even today, despite all the talk about multimodal transport, nearly 70% of chemical cargo, including hazardous chemicals, still moves by road. There is intent, but regulatory processes are often slow and complicated. The National Logistics Policy emphasizes digitalization, but the ground reality is different. Implementation is patchy, and chemical companies are not yet able to integrate these measures into their day-to-day operations. This results in inefficiencies and delays in serving customers,” he added.

Vishal Sharma, Regional Supply Chain Manager - ISC, SEA & China, Indorama Ventures Oxides ANK notes that India must focus on execution and infrastructure in the near term, while building local production capacity for the long term. 

“Different regions have taken varying approaches to safety and regulatory enforcement in chemical handling. For example, the EU follows very strict norms with detailed procedures covering storage, emergency management, and pressure handling. China is more standardized and enforces regulations in a far stronger way. Southeast Asia presents a mixed picture with countries like Singapore and Malaysia have adopted international standards, while others lag behind. If we compare, India is moving in the right direction and has good intent. However, China clearly leads with standardized policies, and Southeast Asia remains diverse in its practices. The three key areas that matter most are regulatory laws, integration, and enforcement. In India, while regulations exist, weak enforcement creates a perception that compliance is optional, which undermines safety and trade confidence,” said Sharma.

“From my experience, the intent in India is strong, and many promising schemes have been announced. The real gap lies in execution and implementation at the right level, with consistency, and that is missing. India is still heavily import-dependent for certain critical products. Long-term, the focus should be on boosting domestic production, but in the short to medium term, we must prioritize strengthening logistics and infrastructure. For example, projects like Sagarmala, which aims to connect over 2,000 ports, will significantly improve access and turnaround time. Dedicated deep-draft chemical berths will make it easier for large vessels to dock, improving efficiency and distribution across multiple ports rather than being restricted to just a few. Similarly, initiatives like PM Gati Shakti, which integrate road, rail, and pipeline connectivity, will be critical for safer and faster movement of hazardous chemicals. while building local production capacity is a long-term goal, the immediate priority should be improving infrastructure and logistics. This is where the real impact can be achieved in the near term,” he added further.

Haresh Lalwani, Managing Director, Sun Logistics stressed that safety must shift from being seen as a regulatory checkbox to a value-driven risk-mitigation strategy that reduces costs, lowers insurance, and builds trust with global customers.

“When we talk about safety in logistics and chemical handling, one hard truth must be acknowledged: safety is not optional. It cannot be treated as an add-on that compromises competitiveness. In fact, safety itself is competitiveness, because one major incident can wipe out years of profits, destroy credibility, and invite severe penalties. The first step is training. And I am not only referring to large corporations, which generally invest in safety, but also the service providers, trucking companies, warehouse operators, and third-party logistics firms. They play a huge role in ensuring safety, yet often lack structured training. The problem is cultural as well as we have never really made safety a part of our DNA. Too often, when competition is high, the first thing we compromise on is safety,” said Lalwani.

“Regulations do exist, but they are outdated and enforcement is weak. Global standards, such as the IMDG Code, clearly state that anyone handling dangerous goods, whether documentation, packing, or securing cargo—must be trained and certified. Yet in India, this is rarely implemented. Without proper training, we cannot expect safe outcomes. We also need better infrastructure. Today, many warehouses pose risks of cross-contamination. What we require are dedicated, segregated warehouses for hazardous chemicals, with modern containment systems, continuous gas detection, and automatic fire suppression. Emergency response is another weak point—we need regular drills so that every stakeholder, from port workers to truck drivers, knows how to act during an incident. So we need to start from the basics: train every link in the chain, modernize infrastructure, and enforce accountability. Not through fear of fines alone, but by creating awareness that safety reduces costs, lowers insurance premiums, and builds long-term trust. Unless we reset our mindset and put safety at the center, we will keep struggling to balance investment and competitiveness,” he added.

V. Raju, Chief Operation Officer, i3pl India believes that the goal must not be just efficiency or cost competitiveness, but safety and trust as without these there is no competitiveness. 

“Over the past few years, we have seen a significant shift toward integrated logistics solutions. Large companies, especially in chemicals, are increasingly relying on third-party logistics and service providers because handling logistics is not their core business. What they expect is end-to-end support: from overseas sourcing and freight forwarding, to customs clearance, warehousing, and last-mile delivery. This is where integrated logistics providers add real value. By offering a door-to-door service under one combined transport document, we remove multiple pain points for the customer, arranging first-mile and last-mile transport, coordinating with customs, ensuring the right vessel connections, or securing storage space at the destination. The entire supply chain becomes smoother, more transparent, and ultimately more cost-effective,” said Raju.

“However, when we talk about chemicals, the challenge becomes far greater. Just last week, we saw a container ship fire caused by hazardous cargo not being handled properly. In another case, a refrigerated container carrying a dangerous chemical was not connected to power, leading to an explosion. These incidents show how even one lapse, whether in documentation, declaration, or storage, can have catastrophic consequences. The solution lies in two things: clear, uniform regulations and mandatory training and certification. In Europe or the US, everyone handling dangerous goods, whether stuffing a container, filing documents, or supervising at a port, must be trained and certified. In India, that is still not the norm. We cannot afford to leave safety to interpretation. Integrated logistics can play a big role here. By centralizing responsibility, we ensure consistency in processes, better documentation, and stronger safety standards across the chain. But this will only work if regulations are harmonized and if every stakeholder, from the warehouse worker to the customs officer, is trained and accountable,” he concluded.

The ChemConnect 2025 was supported by Netradyne as the Platinum Partner. The Gold Partner of the event was JM Baxi and the Associate Partner was dDriven.