Category Archives: Rail/Road

Nitin Gadkari, in the new cabinet appointments, will continue to handle Ministry of Road Transport & Highways, while also handling the Ministry of Micro, Small & Medium Enterprises (MSMEs). The minister has been credited for smooth construction and operation of bridges, flyovers and expressways in the previous cabinet. He is also known to have played a significant role in the implementation of the Pradhan Mantri Gram Sadak Yojana. Gadkari earned his spurs as PWD minister in Maharashtra, by delivering the Mumbai-Pune expressway and 55 flyovers in Mumbai.

Container Corporation of India (CONCOR) has inaugurated its first distribution logistics centre at Ennore, Chennai. This is the existing facility of NOR Infrastructure, which has been selected as the company’s partner for Distribution Logistics Facility at Ennore, Chennai. The first-of-its-kind facility will act as a fulfilment centre for the customers of different manufacturers and importers. CONCOR is a Public Sector Undertaking (PSU) under the Ministry of Indian Railways, which was incorporated in March 1988 under the Companies Act and commenced operation from November 1989, taking over the existing network of seven ICDs from the Indian Railways.

Recognising the export potential of Madhya Pradesh and its ability to attract export-centric FDI in pharma, auto components, machinery, textiles, processed agriculture products, etc., Federation of Indian Export Organisations (FIEO) has submitted to Kamal Nath, Chief Minister of Madhya Pradesh, its proposal to assist the government in working towards an increase in the state’s share in the country’s exports from the current 1.6 per cent to over three per cent in the next five years. Ganesh Kumar Gupta, President, FIEO, emphasised the need for identification of more products under GI, and marketing of such products through exclusive shops in the departure area of international airports, beginning with Mumbai and Delhi. FIEO has also requested for inland freight subsidy for all products, as the cost of carrying cargo from MP to JNPT, in many cases, works out to be more than overseas freight. In response, the minister assured that he will proactively look into the issue of freight subsidy and exclusive showrooms for GI products at India’s international airports.

New technologies such as Big Data, telematics systems, and alternate fuel technology can help drive efficiencies in the transportation sector by optimising routes for efficient delivery sequence, maximise asset utilisation, and improve fuel efficiency. According to Shamsher Dewan, Vice President & Sector Head – Corporate Ratings, ICRA, the profit margins of fleet operators are highly volatile as compared to agents and third-party logistics companies. “The profitability margins of fleet operators are especially sensitive to fluctuations in diesel prices and frequent increase in vehicle ownership cost, toll charges, and other overheads. The sharp increase in diesel prices in Q2 and Q3 FY2019 had a significant impact on profitability indicators of fleet operators as freight rates didn’t move in a similar fashion owing to overall surplus capacity in the trucking system. In such an environment, gradual adoption of new technologies can help fleet operators improve their cost structure and bring down some of the fixed costs.”

The country’s first Multi-Skill Development Center (MSDC) in maritime logistics was launched by Nitin Gadkari, Minister of Shipping, Road Transport and Highways, Water Resources and Ganga Rejuvenation, at Bokadveera, Uran near JNPT, over video-conference from New Delhi. Allcargo Logistics will play a key role in overseeing the operations, maintenance, and management of the MSDC. The center is a collaborative initiative of the Ministry of Shipping (MoS) and Ministry of Skill Development and Entrepreneurship (MSDE) which has been set up under the Pradhan Mantri Kaushal Kendra (PMKK) programme to boost the efficiencies of maritime logistics in the country. “The youth living in the vicinity of ports need to be imparted with specific skill sets to boost their employment prospects in the country’s maritime trade sector. The MSDC is a reiteration of the government’s commitment to boost maritime logistics in the country under the ambitious Sagarmala programme,” stated Gadkari. “The logistics sector in the country is growing at an exponential pace and will require highly skilled manpower to run operations across key supply chain verticals. Allcargo is privileged to be associated with the MSDC initiative of the government and remains firmly committed to building the skill competencies of the youth and steering the country’s maritime logistics sector on a higher growth curve,” stated Shashi Kiran Shetty, Chairman, Allcargo Logistics.

Tata Motors along with Tata Motors Finance Group has entered a strategic tie-up with Kool-ex Cold Chain to supply 200 fully-built reefer trucks manufactured by Tata Motors. The reefer units used for this deal will be built on the popular Tata LPT 1613 MCV trucks and the Tata LPT 2518 Multi-axle truck. Shyam Mani, Managing Director, Tata Motors Finance Group, says, “As a part of this tie-up, we will not only be providing vehicle financing through Tata Motors Finance (TMFL) but will also provide mezzanine equity financing to the company through Tata Motors Finance Solutions (TMFSL), making this a structured financing deal. We are confident that this complete package will deliver the best for all companies who are a part the deal and will lay a strong foundation for a continued association ahead.”

At FFFAI’s ninth Executive Committee meeting in New Delhi, several issues, including the recently-announced national cargo policy, draft logistics policy, recent changes in GST, and trade opportunities between India and Iran, were discussed. Asghar Omidi, Counsellor, Economic Section, Embassy of the Islamic Republic of Iran, emphasised on the strategic importance of Chabahar Port in Iran to script the success of the Indo-Iran trade relationship, which has already been enjoying a rich cultural as well as personal relationship of people of the two countries. He pointed out that presently, India is Iran’s sixth trade partner, with $13.10bn in trade, and with support from Indian logistics stakeholders, the bilateral trade can be increased manifold. “The India-Iran bilateral trade can easily reach $20bn in the near future,” he said. Omidi also invited Indian freight forwarders and logistics companies to visit Iran to witness infrastructure facilities, including Chabahar Port, and explore business opportunities. Facilities at Chabahar Port are being developed in association with Government of India and Indian expertise, and the first phase of the port is operational now.

The Indian government has introduced a new transhipment procedure using an electronic cargo tracking system to facilitate the transport of Nepal-bound transit cargo from Kolkata, a significant move that will simplify border formalities, reduce transit time, ensure safety of the consignment, and boost bilateral trade. The first train carrying Nepal-bound transit containers under the new simplified transhipment procedure was flagged off on February 15 by Kolkata Port Trust. According to a press statement issued by the Indian Embassy in Kathmandu, the Central Board of Indirect Taxes and Customs of the Government of India launched such a modality on pilot basis on rail route from Kolkata/Haldia to Birgunj via Raxual Land Customs Station and Biratnagar via Bathnaha Railway Station and Jogbani Land Customs Station.

DP World signed a partnership with Virgin Hyperloop One last year to develop a cargo transporter. The port operator DP World has zeroed down on India to launch its first cargo hyperloop, Sultan Ahmed bin Sulayem, Chairman, DP World, stated. The company is eager to now move on to the next step. “We are investing in something we believe is going to add value,” Sulayem said. He described hyperloop’s technology as a potential transformative solution for the country of 1.3 billion, as it would run underground.

CONCOR and RZD Logistics (RZDL), a Russian Railways company, have agreed to jointly develop multimodal logistics services along INSTC (International North South Transport Corridor) route. The MoU signed between the two purports to explore opportunities in developing joint logistical projects both in India and in Russia, using international transport corridors, to include the International North South Transport Corridor. With the signing of MoU, both companies intend to set up joint enhancement of Indian-Russian logistical cooperation, develop prospective projects related to container transhipment between the countries, design new top-quality logistical services, and aim at further efficiency improvement of the INSTC route.