Multimodal Logistics Hubs and Parks to Bolster Transport Connectivity under Government Plans

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The Logistics Headlines, New Delhi, 7th Feb’2017 : The Union Budget 2017-18 promises integration of multi-modal logistics and transport system, which will help the economy to become more competitive. Arun Jaitley (the Finance Minister) added that a specific programme will be placed for developing multi-modal transport facilities and Logistics Park. He also proposed a supplement of Rs. 2, 41,387 crore in 2017-18 for transport sector on the whole, including roads, rails, and shipping.

Sandeep Upadhyay, the Managing Director and Chief Executive Officer, Centrum Infrastructure Advisory said that the idea of multi-modal logistics hub or park has been given a new shape with policy for Container Freight Station (CFS) and Inland container depot (ICD).

Humongous investment will start profitable economic activities throughout the country, creating greater job opportunities. There will be end-to-end transport solutions for railways on select commodities overseeing partnerships with logistic players that offer front and back-end connectivity. With merger of Union and railway budget, multi-modal transport plans will facilitate connection between inland waterways, highways and the railways.

Logistics Plans Intensifies Investments with Effective Policies

A new Metro Rail Policy will bring innovative models for financing, indigenising and standardizing software and hardware involved, which will usher job opportunities for youth. More of private investment in construction and participation for operations of metros is expected. The multi-modal transport program will give a holistic view for across sectors and ministries to enhance allocation of resources.

The CEO of Mahindra Logistics, Pirojshaw Sarkari said that enhancements will be given for construction of PMGSY roads by 133 km per day, which is a decent rise from 73 km in 2011-2014.

Expansion of similar logistics activities will bless the rural regions nationwide. The schemes for multi-modal transport are to be structured in a way to focus on export infrastructure such as Trade Infrastructure for Export Scheme that will help grow options for the logistics sector.

Multimodal Logistics Hubs to Reinforce Savings

Manish Agarwal, Pricewaterhouse Coopers India, leader, capital projects and Infrastructure, said that it is important to have the multi-modal logistics hub as a component in overall value chain, which is very crucial for survival of railways. The technology shall be the latest in electricity based rapid transportation like hyper-loop and metro, and is being studied in detail.

The Union Minister of Road Transport & Highways and Shipping, Nitin Gadkari said that their department is assessing feasibility of springing up multi-modal hubs where rail, air, road, waterways would be in close proximity of each other.

With such a setup, there will be reduction in pollution and congestion of roads as cargo transportation will take a waterway route. Another advantage would be easier movement of goods and passengers that will result in saving both time and cost.

Plans Abreast for Multi-modal Logistics Hub in JMVP at Varanasi

Multi-modal logistics hub is now a part of JMVP (Jal Marg Vikas Project) at Varanasi. Now railway link will extend to connect with logistics hub. Rs. 170 crore has been invested in multi-modal terminal in Varanasi, which will surface as a major logistics gateway to connect North India with north-eastern and eastern states, going up to Bangladesh.

Already construction of this project is underway, and will consist of connectivity between road, rail, and waterway. Under JMVP plan of the Government, Rs. 5,369 crore will support a similar program for states such as Maharashtra and Goa. The Inland Waterways Authority of India is working on a plan to launch the National Waterways project.

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