A Profitable, Clean and Optimized Freight Transportation System Key to India’s Growth: Report

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A Profitable, Clean and Optimized Freight Transportation System Key to India's Growth: Report


NEW DELHI: Transfer of goods to rail and optimization use of trucksIndia may meet its target of reducing 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 government think tank Niti Aayog said on Thursday.
“Better participation in rail mode, greater logistics efficiency and clean vehicles are the building blocks of a transformative freight transport paradigm that is within reach of India. This charging paradigm will be profitable with reduced transportation costs, clean with more efficient and electric vehicles, and optimized with improved shared mode and operational efficiency. Implementing multi-stakeholder collaboration in a staggered manner is critical to this transformation, ”said Niti Aayog and RNI’s report Fast Tracking Freight in India.
As domestic transport activity multiplies by five by 2050, India merchandise transports The ecosystem has a critical role to play in supporting India’s ambitious priorities, which include global competitiveness, job growth, urban and rural livelihoods, and clean air and environment.
He asked to increase the participation of rail transport, optimize the use of trucks, promote the use of low-consumption vehicles and alternative fuels.
The report said that this strategy will lead to reduced logistics costs, reduced carbon emissions and improved air quality and less truck traffic on the roads. India can save 10 gigatons of CO2, 500 kilograms of particulate matter (PM) and 15 million tons of nitrogen oxide (NOx) caused by freight transport by 2050, while improving mode distribution and efficient logistics they can reduce vehicle load activity by 48 percent in 2050 over a typical scenario.
To increase the share of rail transport mode, India can increase the capacity of the rail network and increase the share of intermodal transport.
It recommended improving the existing network infrastructure by increasing axle loads, increasing train length and allowing trains to move faster, adding new network capacity by developing specialized heavy haulage corridors and dedicated freight corridors, and identifying and improving corridors with high potential for intermodal transport and ensuring better modal integration through rail, road and water.
The report said that the share of rail in freight transport in India has been declining since 1951. In 2020, it stood at just 18% compared to the share of road of 71%.
“This is due to insufficient rail capacity, especially on certain high-density routes. Several factors suggest that rail could be a cost-effective and efficient alternative for a significant part of India’s freight transport,” he said.
To optimize the use of trucks, India can improve transportation practices and warehousing practices and recommended various solutions to achieve the goal. He asked to improve cargo adaptation using digital platforms and to get the cargo on the correct type of truck, depending on the use case.
Maximize vehicle productivity through efficient packing and loading and improving warehouse location using the principles of optimized network design. He recommended improving warehouse performance by implementing advanced digitized tools.
To promote fuel-efficient and clean vehicle technologies such as electric vehicles (EVs), India can prioritize improving fuel economy and reducing emissions from internal combustion engine vehicles, according to the report.
He also supported the use of cleaner electric and fuel vehicles. “The following actions can support the implementation of these solutions:
• Improve fuel consumption and emission standards for ICE vehicles.
• Promote collaboration between industry players to share experiences with technological solutions.
• Implement support policies and pilot projects to implement electric vehicles and charging infrastructure.
• Build high-quality electric vehicles and create a robust charging infrastructure network, ”the report says.
The logistics sector represents 5% of the country’s GDP and employs 2.2 million people.
India handles 4.6 billion tons of goods each year, which equates to a total annual cost of Rs 9.5 million lakh .³ These goods represent a variety of industries and domestic products: 22% are agricultural products, 39% they are mining products and 39% are manufacturing-related commodities.
Trucks and other vehicles handle most of the movement of these goods. Railroads, coastal and inland waterways, pipelines and airways account for the rest, the report adds.

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