• Logistics parks for Rs 30000 crore to aid cargo flow, cut costs

    The government has prepared a road map for setting up 15 multi-modal logistics parks around major cities, which have a share of about 40 per cent of country’s freight movement by road. With an estimated investment of Rs 30,000 crore, the project aims to make transport of cargo faster, reduce cost and improve the supply chain, key for taming inflation.

    In a concept note titled ‘Logistics Efficiency Enhancement Programme’, the road transport ministry has identified Delhi-NCR, Mumbai, north and south Gujarat, Hyderabad, south and north Punjab, Vijayawada, Kochi and Chennai as some of the major transport nodes for this project in the first phase. This is part of a study funded by the World Bank.

    Logistics parks, act as hubs for freight movement enabling cargo aggregation and distribution. Freight from production area will be shipped to nearby logistics parks where it will be aggregated and transported to a logistics park near the consumption zone on a larger vehicle. Freight arriving at the destination logistics park will be disaggregated and distributed to the consumption zones inside the city, accord ing to the government paper.

    “It’s a welcome move. But we have also suggested the ministry to focus on low hanging fruits such as simplifying of documentations, connecting all major transport hubs. Road, shipping, rail and aviation ministries have to work together,” said World Bank senior transport specialist Rajesh Rohtagi. Logistic costs in India is higher at 13-14 per cent of the value of goods against 7-8 per cent in developed countries. This is due to several inefficiencies including smaller and inefficient trucks resulting in lower average speed 25-30 kmph, which is 50-60 per cent less as compared to the US.

    While in states like Gujarat and Rajasthan it is 37-40 kmph, in Odisha and West Bengal it is only 18-20 kmph, the report says. It’s estimated that the transport costs would fall by about 10 per cent and pollution will also be less. According to estimates, CO2 emission may reduce by 12 per cent and even congestion will be less by about 20 per cent on these 15 nodes. Adam Larsson Womens Jersey

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