Transport ministry to develop 35 Multimodal Logistics Parks

Nitin Gadkari , Minister of Road Transport and Highways, today inaugurated the three-day India Integrated Transport and Logistics Summit (IITLS) organised by the Ministry of Road Transport and Highways (MoRTH) in New Delhi today. India at present has a very poor logistics performance index due to an unfavourable modal mix of transport and a lack of seamless intermodal connectivity.

Speaking on the occasion, he said that one of the major impediments to growth in India is the high logistics cost. “If our economy is to flourish and if we want to ensure sustainable and balanced growth, we urgently need to reduce our logistics cost to globally comparable rates,” he said.  

Gadkari added that the high logistics costs are a result of the various modes of transport growing and developing in silos, in an un-integrated manner. Integrated, multi-modal transport planning will help achieve a healthy modal mix of transport, which is efficient, faster, safer, import substituting, cost effective and pollution-free. He also said that the logistics and transport sector has a very high potential for employment generation.

Aiming to transform logistics and transportation sector
The IITLS has been organised to facilitate constructive dialogue between various stakeholders for the development of multimodal infrastructure in the country. For the first time, the Ministries of Road Transport & Highways, Shipping, Civil Aviation, Railways, Consumer Affairs, Food and Public Distribution, Skill Development, Commerce, Urban Development, Finance, various state governments and industry and infrastructure experts have come together to deliberate on various connected issues and discuss the modalities for bringing about a transformation of the logistics and transportation scenario in India.

The IITLS is envisaged as a platform for all stakeholders in the transport and logistics sectors to come together and initiate collaborative partnerships to realise the various greenfield and brownfield opportunities in logistic parks, freight corridors and IT solutions. MoRTH has undertaken a study, called the Logistics Efficiency Enhancement Programme (LEEP), which has identified four key solution themes to improve the state of logistics in India. These are: freight corridor upgradation, logistics park development, seamless interstate movement and electronic toll collection systems. Taken together, these initiatives are expected to reduce India's logistics costs and bring them closer to the accepted global benchmarks from the current high levels of 13-14% of GDP.

35 Multimodal Logistics Parks in the offing
The Ministry plans to develop 35 Multimodal Logistics Parks (MMLPs) in India which will, cater to 50% of the freight movement, enable 10% reduction in transportation costs and 12% reduction in C02 emissions. Land parcels have been identified and pre-feasibility studies initiated on six of these locations. The government is also working to formulate a uniform policy for the development of MMLPs.

P Ashok Gajpathi Raju, Minister for Civil Aviation, said that India has witnessed explosive growth of air traffic and infrastructure in the past two to three years. The air cargo industry is expected to register around 9% growth in the next few years and the setting up of logistics parks in the country will be very useful.

Ram Vilas Paswan, Minister for Consumer Affairs, Food and Public Distribution, said there is a need to develop a national common market, adding that connectivity between rail, road and waterways is required, so that farmers can take their produce to market in time and get better price.

Need to integrate transport systems
Welcoming the efforts being put into the development of an integrated transport and logistics system, Suresh Prabhu, Minister for Railways, said that there is an urgent need to integrate all transport systems. He said that with implementation of GST, trade and business will grow with much faster rate. While fiscal barriers to the movement of goods have been done away with, the physical barriers also need to be removed.

Prabhu said that the various transport sectors like railways, aviation, roads and shipping are seeing a lot of growth and development. The railways have greatly enhanced their investment, and decongestion and electrification of routes are being done on a war footing. Efficiency of freight terminals is being improved, and three more dedicated freight corridors have been planned. He also said that port rail connectivity is also becoming better and more efficient with the Sagarmala programme. He added that to make transport systems in the country truly efficient, India needs to focus on integrated, seamless, multi-modal growth.

Rajiv Pratap Rudy, Minister for Skill Development, said with all infrastructure and logistics development the need to develop skills of manpower is also required. He said that with the transport and logistics sector poised for a makeover, a lot of new jobs are likely to become available and it is imperative to train the youth to make the best of these upcoming opportunities.

Pon Radhakrishnan, Minister of State for Road Transport & Highways and Shipping, proposed a vote of thanks. Earlier during the session the Minister for State for Road Transport & Highways and Shipping and Chemical & Fertilizers Mansukh L. Mandaviya stressed upon the need for an integrated approach for development of multi modal transport. He said the government is also working for alternatives for cargo movement from road to inland waterway and rail. He said the mission of the government is to bring down carbon emissions to 10 percent.

(All photographs courtesy PIB)