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The long neglected multimodal — movement of goods from point A to point B using different modes of transport by a single transport operator — sector has got a major thrust in this year’s Union Budget as the government wants to significantly reduce the logistics cost in the next three years.
Finance Minister Nirmala Sitharaman announced that contracts for implementation of Multimodal Logistics Parks at four locations through PPP mode will be awarded in 2022-23. One hundred PM GatiShakti Cargo Terminals for multimodal logistics facilities will be developed during the next three years.
The data exchange among all mode operators will be brought on a Unified Logistics Interface Platform, designed for Application Programming Interface. This will provide for efficient movement of goods through different modes, reducing logistics cost and time, assisting just-in-time inventory management, and in eliminating tedious documentation.
India’s logistics cost of 14 per cent of the GDP is quite high when compared with 8-10 per cent among developed nations. The Centre has plans to reduce the logistics cost to around 10 per cent of the GDP in the next three years. The Economic Survey 2017-18 said that a 10 per cent decrease in indirect logistics cost could lead to an export growth of 5-8 per cent.
The government’s thrust on logistics efficiency and push on multi-modal projects should help in the reduction in the logistics cost.
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