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INFRASTRUCTURES * India - Better ones for improved logistics
Dedicated rail freight corridors and modern cargo handling facilities at airports are some of the challenges before the logistics industry
New Delhi,India -Hindu Business Line. by Amit Mitra -3 May 2010: -- Although it is well known that a well-developed logistics infrastructure can lead to significant savings in terms of service levels, inventory costs and processing time, India continues to spend relatively more on logistics due to inadequate infrastructure... Road freight: As far as road freight is concerned, the Amarthi study has estimated that the road freight is expected to rise from about 3,000 million tonnes (mt) in 2009-10 to about 3,700 mt in 2012-13. But here is another stark statistic: although national highways constitute only about two per cent of the road network, it carries 40 per cent of the total road traffic... However, despite the several roadblocks, India has amongst the most competitive and low-cost freight transport industry. Even trucking costs have come down significantly in the last few years... Unorganised trucking industry, high taxation, inadequate road infrastructure (which makes a truck cover only 250-400 km a day compared with 700-800 km a day in developed countries such as the US and Europe), limited investments are some of the challenges identified in this sector. Also, the pace of road building should be increased from the present two km a day to the target of 20 km a day... Therefore, analysts feel that it is imperative that the Government “fast-track” implementation of all key infrastructure projects, a majority of which are either delayed or suffering from cost over-runs — this can pave the way for better logistics management in the country... (Freight earnings account for over 66 per cent of the total earnings of the Railways)Labels: infrastructures discussions
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