NEW DELHI: Relocating freight to rail and optimising truck use, India can achieve its aim to reduce logistics cost from 14% of GDP to 10% by 2022 and this can save up to Rs 10 lakh crore in 2022, a report by authorities believe tank Niti Aayog explained on Thursday.
“Improved rail mode share, increased logistics efficiency and thoroughly clean motor vehicles are the building blocks for a transformative freight paradigm that is inside India’s attain. This freight paradigm will be price-successful with lowered transport expenditures, cleanse with much more economical and electric automobiles, and optimised with enhanced manner share and operational effectiveness. Utilizing multi-stakeholder collaboration in a phased manner is crucial to this transformation,” reported the Niti Aayog and RNI report titled Quick Tracking Freight in India.
As nationwide freight exercise grows about five-fold by 2050, India’s freight transportation ecosystem has a significant role to enjoy in supporting India’s formidable priorities which include world-wide competitiveness, career expansion, city and rural livelihoods, and cleanse air and ecosystem.
It referred to as for growing the share of rail transportation, optimising truck use, advertising use of gas-productive cars and choice fuels.
The report reported this technique will guide to lessened logistics expenditures, reduced carbon emissions and enhanced air excellent and a lot less truck site visitors on streets. India can help you save 10 giga tonnes of CO2, 500 kilo tonnes of particulate make a difference (PM) and 15 million tonnes of nitrogen oxide (NOx ) triggered by freight transport by 2050 although enhanced mode share and economical logistics can lower the vehicular-freight exercise by 48 percent in 2050 above a enterprise as usual scenario.
To raise the manner share of rail transport, India can Boost the rail network potential and raise the share of intermodal transportation.
It advisable increasing current network infrastructure by expanding axle hundreds, growing teach size, and enabling trains to transfer faster, adding new network potential by establishing specialised heavy-haul corridors and dedicated freight corridors and figuring out and upgrading corridors with substantial possible for intermodal transportation and making certain superior modal integration across rail, road, and drinking water.
The report mentioned that rail’s share in freight transportation in India has been declining considering that 1951. In 2020, it stood at just 18% as when compared to road’s share of 71%.
“This is owing to insufficient rail capacity, specifically on specific superior-density routes. A number of factors counsel that rail could be a price-efficient and effective different for a sizeable share of India’s freight,” it stated.
To optimise truck use, India can boost transportation techniques and warehousing techniques and encouraged numerous solutions to obtain the objective. It known as for strengthening load matching making use of digital platforms and get freight on the ideal variety of truck, depending on the use circumstance.
Maximise motor vehicle productivity by economical packaging and loading and improving the siting of warehouses using the ideas of optimised network design and style. It advisable improving upon the overall performance of warehouses by utilizing innovative digitised tools.
To market clear, fuel-productive auto systems this sort of as electric autos (EVs), India can prioritise improving fuel economy and lessen interior combustion engine vehicles’ emissions, the report said.
It also backed use EVs and cleaner fuels “The following actions can assist the deployment of these alternatives:
• Improve fuel intake and emissions criteria of ICE cars
• Encourage collaboration throughout business players to share activities with technological innovation solutions
• Apply supportive procedures and pilot initiatives to deploy EVs and charging infrastructure
• Manufacture high-excellent electric powered automobiles and develop a robust charging infrastructure network,” the report reported.
The logistics sector accounts for 5% of the country’s GDP and employs 2.2 crore individuals.
India handles 4.6 billion tonnes of products every yr, amounting to a full yearly charge of Rs 9.5 lakh crore.³ These merchandise depict a variety of domestic industries and goods: 22% are agricultural goods, 39% are mining products and solutions, and 39% are manufacturing-connected commodities.
Vehicles and other cars handle most of the movement of these goods. Railways, coastal and inland waterways, pipelines, and airways account for the rest, the report extra.

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