Multimodal integration is essential for improving the competitiveness of the logistics sector in India. Freight logistics, comprising of transportation, warehousing and value-added services (VAS) spanning across road, rail, sea, and air, is an enabler and a catalyst for economic growth. The improvement in India’s rank from 54 to 35 on the World Bank-driven Logistics Performance Index, and in the Ease of Doing Business rankings, show that the country is heading in the right direction. However, there is still need for focused action.
While it is imperative for policymakers to accelerate implementation, other stakeholders — including service providers, users and industry bodies — need to work in collaboration to achieve inclusive growth. Domestic logistics providers have the advantage of understanding local rules and regulations, user needs and labor policies. Potential partnerships with multinational logistics companies will enable them to benefit from new technologies, capital and systems.
An integrated system is needed to cut across modes of transport, administrative geographies, and integrate capital investment with regulatory and policy development. India’s transport networks are fastchanging. With a holistic approach in designing integrated transport networks, and with substantial logistics infrastructure under development, India is poised to reach a more desirable and efficient state in terms of logistics. In infrastructure funding, the private sector can fill the investment gap and allow increased flow of public investment in economically and socially important projects.
CII partnered with the Ministry of Road Transport and Highways, and the National Highway Authority of India, to organize the India Integrated Transport and Logistics Summit 2017 to focus on the need for coordinated infrastructure development in the multi-modal logistics sector, and to attract global investments. The Summit, held on 3-5 May in New Delhi, with the participation of over 1500 delegates and 70 eminent speakers from around the world, including policy planners, investors and representatives of major logistics companies, was a concerted effort to showcase India’s growing capability in the area, and propagate the advantage of a hub-andspoke model to improve coordination among various transport modes.
A National Integrated Logistics Policy
Mr Nitin Gadkari, Minister of Road Transport and Highways, and Shipping, announced that the Government is formulating an integrated multimodal logistics and transport policy which will reduce logistics costs and make Indian products more competitive in world markets.
The policy will accommodate the construction of 50 economic corridors and focus on upgrading key feeder and inter-corridor routes to improve movement efficiency of freights. A network of 56,000 km is being identified for this purpose, he said.
Besides enabling 35 multimodal parks and 10 inter-modal stations to create last-mile integration, the emphasis will be on developing coastal freight corridors, expanding the national expressway network, creating last-mile roads, standardizing technology to reduce waiting time, improving service levels, and taking up logistics skill development, said the Minister.
- The Summit was attended by eminent Ministers including Mr Nitin Gadkari, Mr Suresh Prabhakar Prabhu, Minister of Railways; Mr Ram Vilas Paswan, Minister of Consumer Affairs, Food and Public Distribution; Mr P Ashok Gajapathi Raju, Minister of Civil Aviation; Mr Rajiv Pratap Rudy, Minister of State (Independent Charge) of Skill Development and Entrepreneurship; Ms Nirmala Sitharaman, Minister of State (Independent Charge) of Commerce and Industry; Mr Jayant Sinha, Minister of State of Civil Aviation, Mr Mansukh Mandaviya, Minister of State of Road Transport and Highways, and Shipping, Chemical and Fertilizers, and Mr P Radhakrishnan, Minister of State of Road Transport and Highways.
- Several Secretaries to the Government of India also participated in the Summit, including Dr Hasmukh Adhia, Secretary (Revenue), Ministry of Finance; Mr Sanjay Mitra, then Secretary, Ministry of Road Transport and Highways; Mr Rajive Kumar, Secretary, Ministry of Shipping; Mr Rajiv Nayan Choubey, Secretary, Ministry of Civil Aviation; Ms Rita A Teaotia, Secretary, Department of Commerce, Ministry of Commerce and Industry; Mr Ramesh Abhishek, Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry; and Ms Preeti Sudan, Secretary, Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution.
- 34 MoUs were inked between Government agencies, Government and business, and business to business, to explore investment opportunities in the logistics sector. The MoUs would, at fruition, lead to an investment of over `2 lakh crores, related to port connectivity, Integrated Check Posts in Bihar, Uttarakhand, Uttar Pradesh, West Bengal, and Manipur, access to land ports in Tripura, Assam and Mizoram, the development of logistics parks in Telangana, Andhra Pradesh, Karnataka, Madhya Pradesh, Assam, Gujarat, and Mizoram, and the development of multi-modal logistics parks in Mumbai, Bengaluru and Haryana.
- Draft Logistics Parks Policy developed and taken up with stakeholders for review.
In an exclusive CEOs Forum, 35 CEOs engaged in a dialogue with Mr Nitin Jairam Gadkari to identify the specific concerns of players regarding the daily conduct of business operations. Th e fo ru m a l s o discussed the Draft Multimodal Logistics Park Policy, to give the Ministry feedback from the private sector.
The sessions focussed on six major themes
- Multimodal logistics parks
- New developments in urban transport
- Freight corridors for economic development
- Supply chain transformation and storage innovation
- GST and role of digitization for decongestion and standardization
- Skills for logistics
In addition, there was a special State Session, with the participation of Ministers from several States, including Mr Manohar Lal, Chief Minister of Haryana, and Ms Vasundhara Raje, Chief Minister of Rajasthan. FOCUS Mohammed Jamshed, Member (Traffic), Railway Board; Jayant Sinha, Minister of State of Civil Aviation, and V Kalyana Rama, CMD, CONCOR Sudhir
Source:- CIIs Communique June 2017