Gateway Rail Freight (GatewayRail) has undertaken operations of two double stacked trains in a python configuration on the Western DFC. These trains are dedicated services for CMA-CGM shipping line, the world’s fourth-largest container shipping company. From the two double stacked trains, one train arrived from Mundra port and the other from Pipavav port, both carrying import containers. It clubs two double-stack container trains to increase the efficiency and reduce the cost for customers. The trains were joined at New Kishangarh, Rajasthan (Madar Junction) for the DFC stretch of 306 km up to New Ateli, Rewari, Haryana. The government’s record allocation of Rs1.1 trillion for the Indian Railways has given specific thrust towards the completion of Dedicated Freight Corridor (DFC) by June 2022 that will further add impetus to rail infrastructure and will immensely benefit ports, exporters, and importers, shipping lines and container operators and other consumers of rail transport. The corridor will increase the transportation efficiency and reduce the cost for customers. GatewayRail’s train was also one of the two that were recently inaugurated by Prime Minister Narendra Modi on the Western Dedicated Freight Corridor (Rewari – Madar section). GatewayRail is already accruing benefits from this DFC section, and will continue to benefit as the rest of the Western DFC is commissioned in phases until final completion.

According to Dr Ambrish Kumar, Founder and Group CEO, AAA 2 Innovate, “The stakeholders and players of the logistics sector would resonate with the fact that Budget 2021 has not completely met the expectations of the sector. It can be said that some of the initiatives like the public-private partnership projects of ports, monetisation of Dedicated Freight Corridor assets by railways, National Monetisation Pipeline for financing infrastructure construction, rationalising and reducing customs duty on certain imports scrap and products and increasing for exports of agricultural products are in lines with encouraging manufacturing, distribution or Make in India initiative.” “However, some expectations like an investment in technology, speeding up of National Logistics Policy measures, promoting Start-ups and MSMEs, working capital influx for the logistics sector, etc that form the major concern of the logistics sector are not focussed upon. Also how fast the implementation of all the aspects on the ground level is something to be looked forward to,” he adds.

“In the budget, the fund allocation for the infrastructure development of transport sector, including roads and railways, is definitely a positive push for the logistics industry and will have a long-term impact on last-mile deliveries. With Covid-19 vaccine distribution, a robust national supply chain is of paramount importance in 2021. The proposed measures by the government will ensure ease of doing business for leading companies as well as Indian logistics startups and also, support in boosting the overall economy. Further, the step towards making India a strong textile hub through development of integrated mega textile parks will improve manufacturing and aid export competitiveness,” says, Vishal Sharma, CEO, Cluster India and Indian Sub-Continent, DB Schenker.

“It is a progressive budget with a welcome change to drive India towards a $5 trillion economy by 2024. The digital budget was an impressive move by the finance minister and a positive step towards a digital economy, says, Abhijit Malkani, Co- CEO & Country Head, ESR India. He continues, “National infrastructure pipeline extended to cover over 7,000 projects is a welcome move towards driving economic growth. The commissioning of Eastern and western dedicated freight corridors by 2022 and 3 new dedicated freight corridors will boost connectivity and will have an impact towards lowering the logistics cost as a percentage of GDP and provide momentum to the industrial and warehousing sector.”

“The logistics industry was looking forward to this year’s budget speech,” says, Rajesh Neelakanta, ED & CEO, BVC Logistics, in adding, “We were expecting an update on the long-awaited National Logistics Policy. However, there have been some hits and misses for us. Certain good points to look forward are reduction in timelines for reopening of assessments from 6 years to 3 years. Businesses can now breathe relatively easy because of this announcement. Boost to infrastructure development by allowing TDS exemption for investments in to INVITs. Rationalising custom duties on gold and silver is a welcome move. The focus on logistics through the development of road and highway projects will encourage economic transformation and seek to improve connectivity that is much needed for the growing economy.”

“The government’s focus on infrastructure development and the budget proposal for a sharp increase in capital expenditure for FY2021-22 will make the supply chain more agile and operationally efficient,” says, Anshuman Singh, Chairman, and Managing Director, Stellar Value Chain Solutions. He adds, “The proposal to monetise dedicated freight corridors and airports will open up a new frontier of supply chain solutions and these are steps in the right direction. As the consumption story of India is in a revival mode and the country needs to further strengthen its position in the global supply chain, the proposals will set a strong foundation to achieve those targets.”

According to Prem Kishan Dass Gupta, Chairman & Managing Director, Gateway Distriparks, “The announcement of massive investment of Rs. 2000 crore on seven port projects under PPP mode will boost the logistics sector and enable overall economic growth. With road and rail connectivity being an indispensable factor of the economic development, an allocation of Rs 1,10,055 crore for Railways has been made where the eastern and western dedicated freight corridors will be commissioned by June 2022. This will help in bringing down the logistics cost as well as ensure smooth connectivity between different points of country and ensure easy and faster freight movement. The Union Budget targets 100 percent electrification of broad-gauge railways to be achieved by 2023. This will increase efficiency, and reduce dependence on conventional fuels. The Government’s push to port, road and rail infrastructure through various investments, initiatives and projects will further add to the development of the logistics industry in India.”

“The 2021-22 union budget was a highly anticipated one, given the current economic situation and the global environment of volatility and uncertainty. And I would say it has delivered well, given the background. While this budget comes at the heels of the mini-budgets announced through-out the last year, in the wake of the COVID 19 pandemic, it has been progressive, and offers an objective and detailed plan of action. The Rs 1.15 thousand crore allocation for railways, plan to privatise airports in tier 2 and tier 3 cities and completion of 8,500 Kms of strategic highways by March 2022, are all efforts in the right direction, to bring down the cost of logistics and transportation. Further, the development of Eastern, Western, East-coast, East-west and North South dedicated freight corridors, is set to give a boost to logistics and supply chains across the country, improving connectivity and bringing down the costs. The voluntary scrapping policy for vehicles and the thrust on electronic/ greener transportation will, in turn, help reduce the carbon emission and control the air pollution index, which was vastly attributed to transportation. This has out and out been a well-planned and detailed budget that showcased the actionable points by the government and the desired impact, in line with the long term economic goals,” Aditya Vazirani, CEO, Robinsons Global Logistics Solutions.

Hailing the Union Budget 2021- 22, Sharad Kumar Saraf, President, FIEO, said that the budget has rightly put its focus on infrastructure to revive the economy, address the job loss and support the industries providing inputs for infrastructure. A world class infrastructure will go a long way to make our manufacturing and exports competitive besides reducing the logistics cost. The setting up of seven mega investment Textile Parks would attract investment in the sector, bringing the cutting-edge technology and creating the economy of scale so as to compete with our South Asian and South East Asian competitors. The levy of agri-cess will help in creating agri infrastructure reducing the wastage and enhancing the quality of agri products. Lack of infrastructure is also affecting the prices of the agri commodities. The various facilities for fisheries will push marine exports of the country which has yet not reach anywhere near its potential.” President FIEO said that privatization of the management of major ports will bring the necessary efficiency thereby reducing the cost benefitting the exim community. He hoped that the Government will bring a policy to develop a National Shipping Line to take a major share of India’s exim trade. Saraf said that the Government should allocate the requisite funds for RoDTEP, MEIS and SEIS so that the uncertainty is removed and exporters’ past claims may be released quickly as the same has severely eroded their liquidity.

Finance Minister Nirmala Sitharamn presented the Union Budget 2021-22 in parliament today. The government plans to soon put the next lot of airports for privatisation that will help monetise these assets for operations and management. While presenting the budget, Finance Minister says, “AAI airports in tier-2 & 3 cities to be monetised.” The Minister says, “Bringing down the logistic costs for our industry is at the core of our strategy to enable ‘Make in India’. It is expected that Western Dedicated Freight Corridor (DFC) and Eastern DFC will be commissioned by June 2022. The additional proposed initiatives are that the Sonnagar – Gomoh Section (263.7 km) of Eastern DFC will be taken up in PPP mode in 2021-22. Gomoh-Dankuni section of 274.3 km will also be taken up in short succession. We will undertake future dedicated freight corridor projects namely East Coast corridor from Kharagpur to Vijayawada, East-West Corridor from Bhusaval to Kharagpur to Dankuni and North-South corridor from Itarsi to Vijayawada. Detailed Project Reports will be undertaken in the first phase. c. Broad Gauge Route Kilometers (RKM) electrified is expected to reach 46,000 RKM i.e., 72 per cent by end of 2021 from 41,548 RKM on October 1, 2020. 100 per cent electrification of Broad-Gauge routes will be completed by December, 2023.