Cost-effective, clear, and optimised freight transport system key for India’s progress: Report

NEW DELHI: Moving freight to rail and optimising truck use, India can attain its objective to scale back logistics value from 14% of GDP to 10% by 2022 and this will save as much as Rs 10 lakh crore in 2022, a report by authorities assume tank Niti Aayog mentioned on Thursday.
“Improved rail mode share, elevated logistics effectivity and clear autos are the constructing blocks for a transformative freight paradigm that’s inside India’s attain. This freight paradigm will probably be cost-effective with decreased transport prices, clear with extra environment friendly and electrical autos, and optimised with improved mode share and operational effectivity. Implementing multi-stakeholder collaboration in a phased method is vital to this transformation,” mentioned the Niti Aayog and RNI report titled Fast Tracking Freight in India.
As nationwide freight exercise grows about five-fold by 2050, India’s freight transport ecosystem has a vital position to play in supporting India’s bold priorities which embody international competitiveness, job progress, city and rural livelihoods, and clear air and setting.
It known as for growing the share of rail transport, optimising truck use, selling use of fuel-efficient autos and various fuels.
The report mentioned this technique will result in decreased logistics prices, decreased carbon emissions and improved air high quality and fewer truck visitors on roads. India can save 10 giga tonnes of CO2, 500 kilo tonnes of particulate matter (PM) and 15 million tonnes of nitrogen oxide (NOx ) brought on by freight transport by 2050 whereas improved mode share and environment friendly logistics can cut back the vehicular-freight exercise by 48 % in 2050 over a enterprise as common situation.
To enhance the mode share of rail transport, India can Increase the rail community capability and lift the share of intermodal transportation.
It advisable enhancing current community infrastructure by growing axle masses, growing practice size, and enabling trains to maneuver quicker, including new community capability by growing specialised heavy-haul corridors and devoted freight corridors and figuring out and upgrading corridors with excessive potential for intermodal transport and guaranteeing higher modal integration throughout rail, street, and water.
The report mentioned that rail’s share in freight transportation in India has been declining since 1951. In 2020, it stood at merely 18% as in comparison with street’s share of 71%.
“This is because of inadequate rail capability, particularly on sure high-density routes. Several elements recommend that rail could possibly be a cheap and environment friendly various for a major share of India’s freight,” it mentioned.
To optimise truck use, India can enhance transportation practices and warehousing practices and advisable a number of options to realize the target. It known as for enhancing load matching utilizing digital platforms and get freight on the correct kind of truck, relying on the use case.
Maximise car productiveness by environment friendly packaging and loading and enhancing the siting of warehouses utilizing the rules of optimised community design. It advisable enhancing the efficiency of warehouses by implementing superior digitised instruments.
To promote clear, fuel-efficient car applied sciences akin to electrical autos (EVs), India can prioritise enhancing gasoline economic system and cut back inside combustion engine autos’ emissions, the report mentioned.
It additionally backed use EVs and cleaner fuels “The following actions can assist the deployment of those options:
• Enhance gasoline consumption and emissions requirements of ICE autos
• Promote collaboration throughout business gamers to share experiences with know-how options
• Implement supportive insurance policies and pilot tasks to deploy EVs and charging infrastructure
• Manufacture high-quality electrical autos and create a sturdy charging infrastructure community,” the report mentioned.
The logistics sector accounts for five% of the nation’s GDP and employs 2.2 crore folks.
India handles 4.6 billion tonnes of products annually, amounting to a complete annual value of Rs 9.5 lakh crore.³ These items symbolize a wide range of home industries and merchandise: 22% are agricultural items, 39% are mining merchandise, and 39% are manufacturing-related commodities.
Trucks and different autos deal with a lot of the motion of those items. Railways, coastal and inland waterways, pipelines, and airways account for the remaining, the report added.


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