Category Archives: Rail/Road

CMA CGM Logistics Park Dadri has started planning and running dedicated block train services, with all-export containers booked by its CFS, from ICD Dadri to Mundra in association with CONCOR Dadri. Capt. V. M. Bawa, CEO, CMA CGM Logistics Park Dadri, informs, “The services would be on regular/weekly basis and this initiative will benefit the export trade at ICD Dadri in offering direct train services to Mundra with average transit time of approx. 72 hours.” The first dedicated block train service, comprising 45 FEUs to Mundra, was flagged off on the night of September 2, 2019 from ICD Dadri by Capt. Bawa in the presence of CONCOR staff and the Station Superintendent of Dadri station. The second dedicated block train from ICD Dadri departed soon after, on September 4 for Mundra with another 45 FEUs booked by the CFS.

The new 2 lakh sq. ft. sorting centre at Gurugram will be located at Farukhnagar and 1.5 lakh sq. ft. sorting centre at Pune will be located at Chakan. The construction is expected to be completed by end of the current fiscal year and operations are anticipated to begin from Q1 FY2021. The owned sorting centres will create ample opportunities for investment in complete automation and implementation of business intelligent tools which will result in direct cost reduction benefits, shorter turnaround time and enhanced operational efficiencies in the long run. Chander Agarwal, Managing Director, TCI Express, says, “The target capital expenditure outlay for the year has been revised to Rs 80 crore which will essentially be utilised towards construction and IT infrastructure. The investment in two new sorting centres will generate new growth opportunities for business and create value for all our stakeholders in the long run.”

The Union Government is conducting a nationwide survey to identify delay points in the cargo movement. The survey is being conducted simultaneously across 15 ports — sea, air, land and dry — that account for 81 per cent of bills of entries for import and 67 per cent of shipping bills for export. From August 1-7, surveys were conducted for seaport and inland container depots and for air cargo, the survey is getting conducted in the first week of September. The exercise to identify bottlenecks and their removal is supposed to expedite the cargo movement and escalate the trade. The Central Board of Indirect Taxes and Customs (CBIC), under the Department of Revenue, is carrying out the survey. The nationwide survey will look at causes of delays in movement of consignment caused by regulatory constraints, logistical issues in supply chains, or lack of infrastructure.

With a launch of Relay-as-a-Service (RaaS), the company aims to bring benefits of its disruptive relay trucking model to millions of fleet owners and truck pilots in India. RaaS will be offered to fleet owners using its technology, pilots and countrywide network of relay pit-stops. Relay Trucking is an operating model where drivers change over after every few hundred kilometers of driving through a network of relay pit-stops and then get rostered back to their home base to return to their families every single day. Gazal Kalra, Co-founder, Rivigo, said, “With RaaS, we aim to offer the benefits of relay trucking to millions of fleet owners in India and bring in efficiencies in the logistics industry while directly addressing one the biggest challenges of chronic truck driver shortage. In addition to the relay network, technology and pilots, we will be making our fuel, maintenance, cashless payment solutions also available to fleet owners in the country through RaaS. Rivigo’s mission is to make logistics in India humane, more efficient and offer better service. Offering RaaS to fleet owners in the country is a significant step in that direction.” Ramratan Singhi, Owner, Sure Cargo Logistics, a fleet of 70 Bharat Benz trucks and who has signed up for the RaaS program, said, “RaaS model helps make trucking efficient. We achieved 25-30 per cent extra running per month per truck through RaaS, compared to using our resources. Hub-hub TAT was excellent, and the use of tech in all aspects of operations (fuel, maintenance) is helping us see the areas of concern in our trucks. It frees our management time and resources on getting more business while our trucks are operated by RIVIGO Relay …

The government has approved the railways’ proposal to increase the train speed on Delhi-Mumbai and Delhi-Howrah routes to 160 kmph. The two routes together account for 20 per cent of freight traffic and 29 per cent of passenger traffic. This could reduce the travel time by 3.5 hours and five hours respectively, making them overnight journeys. The decisions were taken during this Cabinet meeting that the decisions on Kashmir were discussed with Union ministers. Increasing the speed of the Delhi-Mumbai and Delhi-Howrah sections to 160 kmph will ensure up to 60 per cent increase in average speed of passenger trains and doubling of average speed of freight traffic. As a part of the Ministry’s 100-day agenda, the Delhi-Mumbai project will cost INR 6,806 crore while the Delhi-Howrah project will cost INR 6,685 crores. The project is set to be completed by 2022-23. Apart from this, the ministry also plans on constructing a new line between Vaibhavwadi and Kolhapur (now Shri Chhatrapati Shahumaharaj Terminus) with an estimated cost of INR 3,439 crore. The project will be executed by Construction Organization of Central Railway and is expected to be completed by 2023-24.

Container Corporation of India (CONCOR) and Bharat Heavy Electricals Limited (BHEL) have entered into an agreement to set up a rail-based logistics terminal in Haridwar, Uttarakhand. This would be BHEL’s strategic entry into a new growth area as the terminal would soon be developed into a multi-modal logistics facility. The terminal would cater to the need of Exim and domestic trade of Haridwar. The facility would work as a Private Freight Terminal (PFT) which will facilitate the handling of railway wagon also. Moreover, the Haridwar plant is advantageously located near the upcoming Eastern and Western Dedicated Freight Corridors. BHELCON, a joint working group agreement has been signed with equal financial participation by CONCOR and BHEL.

Commenting on the Union Budget, Sharad Kumar Saraf, President, FIEO said, “The budget addresses some of the basic challenges faced by manufacturing as well as exports including flow of credit, infrastructure bottlenecks, labour laws, skilling, etc. The export credit declined by 22 per cent as on December 31, 2018 compared to the same period in 2017. Rs.70,000 crore allocated to PSU banks will ease the flow of credit. The interest subvention of 2 per cent given to MSME as well as payment platform for bill filing for MSME will help in flow of credit at competitive cost. The investment of Rs 100 lakh crore in infrastructure in next five years through Bharatmala, Sagarmala, Jal Marg Vikas Project will help in improving logistics, reducing transportation cost and increasing competitiveness.” “The PMMSY for the robust fisheries management framework will give a push to marine exports from the country in which India has emerged as the largest exporter though huge untapped potential still exists. The support given to GI products and artisans to showcase in global markets will provide much needed exposure to them paving the way for further exports. Focus on clusters in bamboo, honey and khadi will not only create huge employment opportunity but will also give a push to their exports,” he adds.

Believing the Budget 2019-20 as an ongoing task reiterating the commitments that the NDA Government has set in its vision document, S Ramakrishna, Chairman, FFFAI, says, “It is commendable the new Finance Minister presented a pragmatic Budget aiming to reach the US$ 5 trillion economy in the next few years, with required emphasis and focus on infrastructure, multimodal connectivity and logistics operation. Significantly, the government has decided to create and promote inland waterways and allied infrastructure to reduce logistics cost and boost greener environment.” It is heartening to note that after recently launched multimodal terminal at Varanasi, more similar terminals will be completed at Sahibganj and Haldia and a navigational lock will be created at Farakka by 2019-20 FY. We will be expecting more such terminals in North East India as well, like strengthening the existing terminal in Pandu (Guwahati) and new one in Jogighopa which is very strategic region from foreign trade’s perspective utilizing effective multimodal connectivity with special thrush on waterways. It would be very crucial to expedite international cargo movement to Bangladesh and beyond. Also, it is commendable the Finance Minister emphasized on resolving all litigations on fast track basis to facilitate trade and commerce. Commenting on the focus given by government to MSMEs, Ramakrishna, says, “Since predominantly we are from MSME sector, this funding would be a great boost for us.”

“India is set to become a $3 trillion economy this year and it is well within its capacity to reach the $5 trillion economy by 2024,” says Nirmala Sitharaman, Finance Minister, Government of India, while presenting the annual Budget. The Budget says that the government will examine steps to hike FDI cap in aviation. Government envisions using river for cargo transportation which will also decongest roads and railways. “The movement of cargo on Ganga is estimated to rise four times in four years,” informs Sitharaman. GST processes will also get simplified further. The government has given massive push for physical infrastructure too. 125,000 km of road to be upgraded over next five years at a cost of Rs 802.5 billion. To ensure the creation of National Highways Grid of desirable capacity, comprehensive restructuring of National Highways Programme will be done. Railway infrastructure would need an investment of Rs 50 lakh crore between 2018 and 2030; PPP to be used to unleash faster development and delivery of passenger freight services, says Finance Minister. “Will simplify procedures, reduce red tape, make best use of tech,” says Sitharaman, in adding, “Building social infrastructure, digital India, Pollution-free India and Make in India are government vision.”

CMA CGM has started weekly service of a dedicated scheduled import train from Port Pipavav to Garhi Harsaru (NCR region), which it received on June 12. Operated by Gateway Rail Freight (GRFL), the import train, that connects Pipavav to Garhi, Ludhiana and Piyala, has a capacity of 180TEUs in a single run. The scheduled train service will provide reliable, safe and quick transport of commodities to the NCR region. The seamless transport and scheduled deliveries will help the trade to optimise their supply chain.