Chennai, June 12:
In the index, which was prepared by the World Bank, India slipped
in ranking, said the Union Shipping Minister, Mr G.K. Vasan.
In 2012, India
was ranked 46th compared to 39th five years ago.
“We should strive to improve the LPI through a systematic intervention on
key issues,” he said at a seminar.
Logistics cost in India
is at 13-14 per cent of the gross domestic product compared to 7-8 per cent in
developed countries, he said.
The pace, at which infrastructure development has happened, compared to the
growth in freight traffic, has been rather slow. This acts as a bottleneck and
drags growth.
“We must hasten the pace,” he told in his inaugural address at Logistics
Summit 2012 organised by the CII Institute of Logistics.
Mr Vasan said that the government has allowed 100 per cent foreign direct
investment in the logistics sector, has eliminated the CST, introduced
value-added tax, improved multi-modal transportation and is aggressively
promoting public-private-partnerships (PPP).
In the current financial year, 42 projects have been identified for capacity addition in ports.
Of this, 29 projects will be on PPP mode. This will enhance the capacity by
244 million tonnes at an estimated cost of Rs 14,500 crore, he said.
The need of the hour is massive investment to build better logistical
infrastructure and additional handling capacity, he said.
The industry is also laying focus in making logistics activities leaner and
greener by reducing and compensating the carbon footprint they leave on the
environment. This should be encouraged.
About 70 per cent of domestic cargo movement in India for the last mile delivery of
goods happens through roads.
This leaves more of a carbon footprint.
“We must consider adopting sea routes, which are cost-effective and
environment-friendly. On the same lines, inland-water transport is also a focus
area, he said.
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