Major thrust to multimodal logistics in Budget 2022-23
WAREHOUSING & LOGISTICS

Major thrust to multimodal logistics in Budget 2022-23

In this year’s Union Budget the multimodal logistics sector has received a major push as the government aims at a significant reduction in the logistics cost in the upcoming three years.

Finance Minister, Nirmala Sitharaman said that the contracts for implementing Multimodal Logistics Parks at four different locations via the public-private partnership (PPP) mode are going to be awarded in 2022-23. One hundred PM Gati Shakti Cargo Terminals dedicated towards multimodal logistics facilities to be developed in the span of the next three years.

The data exchange in all mode operators to be brought on ‘Unified Logistics Interface Platform’. The platform is designed for the ‘Application Programming Interface’. This will result in providing efficiency in the movement of goods via different modes, reduction of logistics cost and time, assistance in inventory management, and elimination of tedious documentation.

The country’s logistics cost of 14% of the gross domestic product (GDP) is very high in comparison with 8 to 10% of the developed nations. The government is planning to reduce the logistics cost by 4%, which is to 10% of the GDP in the upcoming three years. The Economic Survey of 2017-18 stated that a 10% reduction in indirect logistics cost might result in export growth of 5 to 8%.

The government’s steps on increasing logistics efficiency and the push on multimodal projects will help in reducing the logistics cost.

The multimodal sector has been neglected by the government for a long time. The multimodal sector comprises the movement of goods from one point to another via several modes of transport by one transport operator.

Image Source

Also read: Scindia holds meeting on kickstarting multi-modal logistics hub

In this year’s Union Budget the multimodal logistics sector has received a major push as the government aims at a significant reduction in the logistics cost in the upcoming three years. Finance Minister, Nirmala Sitharaman said that the contracts for implementing Multimodal Logistics Parks at four different locations via the public-private partnership (PPP) mode are going to be awarded in 2022-23. One hundred PM Gati Shakti Cargo Terminals dedicated towards multimodal logistics facilities to be developed in the span of the next three years. The data exchange in all mode operators to be brought on ‘Unified Logistics Interface Platform’. The platform is designed for the ‘Application Programming Interface’. This will result in providing efficiency in the movement of goods via different modes, reduction of logistics cost and time, assistance in inventory management, and elimination of tedious documentation. The country’s logistics cost of 14% of the gross domestic product (GDP) is very high in comparison with 8 to 10% of the developed nations. The government is planning to reduce the logistics cost by 4%, which is to 10% of the GDP in the upcoming three years. The Economic Survey of 2017-18 stated that a 10% reduction in indirect logistics cost might result in export growth of 5 to 8%. The government’s steps on increasing logistics efficiency and the push on multimodal projects will help in reducing the logistics cost. The multimodal sector has been neglected by the government for a long time. The multimodal sector comprises the movement of goods from one point to another via several modes of transport by one transport operator. Image Source Also read: Scindia holds meeting on kickstarting multi-modal logistics hub

Next Story
Technology

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Next Story
Infrastructure Transport

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Next Story
Real Estate

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?