IITLS to be held in New Delhi from 3 to 5th May
MUMBAI: In a bid to transform India’s transport and logistics sector and drive efficiency, the Ministry of Road Transport and Highways (MoRTH) is organising the India Integrated Transport and Logistics Summit 2017 (IITLS), a one-of-a-kind global conference which will see stakeholders from around the world converge in New Delhi at Vigyan Bhavan between 3rd to 5th May 2017 to create a great confluence of ideas and generate stellar opportunities.
In the run-up to the show, MoRTH held a road show in Mumbai recently where Shri Nitin Gadkari, Honourable Minister of Road, Transport and Shipping and the patron of IITLS laid out the objective of the conference – to improve the state of logistics in India and shift to a cleaner and greener modes along with an emphasis on multi-modal operations.
In his address to the audience, Mr Gadkari said, “transforming India’s logistics from a Point-to-Point model to a Hub-and-Spoke model will achieve reduction in logistics costs. The multi-modal infrastructure will also improve the logistics efficiency. The Ministry of Road Transport and Highways has already undertaken several initiatives in this regard and these initiatives open up multiple investment opportunities.”
His expectation is that through engagement in the conference, global companies will have a clear vision of the vast opportunity that lies in India’s transport and logistics sector and will be interested in making monetary and technical investments to leverage it.
India is currently World’s second fastest growing economy with a growth rate of 6.6%. To support such rapid growth, in addition to the Export-Import cargo, 2500 Billion Ton-Km of domestic cargo is carried annually. Out of this, the modal share is as follows: Roads: 60%, Railways: 30%, Air & Pipelines: 6% and Coastal & Inland Shipping: 4%. Although India has a robust logistics network comprising of 5.32 million kilometres of roads and Asia’s largest rail network, an extensive maritime infrastructure and the 9th largest air network, it is not being able to leverage it due to poor modal share and inefficient logistics operations.
In order to improve this state of logistics, MoRTH is planning to set up 35 Multi-Modal Logistics Parks in strategic locations which will cater to 50% of the freight movement. Additionally, MoRTH is undertaking the Logistics Efficiency Enhancement Program (LEEP) with an aim to enhance ~56,000 km of freight corridors. These corridors will have improved port and coastal connectivity along with electronic toll collection for seamless movement which will lead to ~25% reduction in travel time and reduce the logistics cost by ~10%.
Indian Railways has chalked out a 9-themed Action Plan, within which several initiatives are aimed at boosting freight movement on railways.
Ministry of Shipping is undertaking the ambitious Sagarmala project which encompasses 200 port-led development projects and will lead to deepening of draft and mechanization of berths, reduction in turnaround time, improved cargo handling and storage, etc.
Mr Rajeeva Sinha, Co-Chair CII National Committee on Ports and Shipping and Advisor - Jawahar Lal Nehru Port Trust said, “while ownership of road equipment may be fragmented and there could be large number of suppliers, overall, financial and operational management of transport could be under few companies to bring about scale, efficiency, safety, speed and higher revenues. This is a kind of cooperative concept with modern management and ports can take lead in triggering this reform.”
The recently introduced The National Civil Aviation Policy 2016 aims for 10 million tonnes cargo capacity and increase cargo volume by four times by 2027. Air Freight Stations (AFS) will be developed for easier and smoother freight operations.
There is also the necessity of the state-of-the-art technologies to support these developments to bring about a holistic growth of the sector.
The Ministry, especially Mr Gadkari, expects that these initiatives, with proper support from global experts, can make India’s logistics sector cleaner, greener and more efficient.
Such holistic development of the transport and logistics sector will play an enabling role in making India one of the most advanced economies of the world.