- The IITLS has been organized with the objective of facilitating constructive dialogue between various stakeholders for the development of multimodal infrastructure in the country.
- Currently India has a very poor Logistics Performance Index due to an unfavourable modal mix of transport and a lack of seamless intermodal connectivity.
- The IITLS is envisaged as a platform for all stakeholders in transport and logistics sectors to come together and initiate collaborative partnerships to realize the various greenfield and brownfield opportunities in logistic parks, freight corridors and IT solutions.
- The Ministry of Road Transport and Highways (MoRTH) had undertaken a study, called the Logistics Efficiency Enhancement Programme (LEEP), which has identified four key solution themes to improve the state of logistics in India.
- These are, freight corridor upgradation, logistics park development, seamless interstate movement and electronic toll collection systems. Taken together, these initiatives are expected to reduce India’s logistics costs and bring them closer to the accepted global benchmarks from the current high levels of 13-14% of GDP.
- The Ministry plans to develop 35 Multimodal Logistics Parks (MMLPs) in India which will, cater to 50% of the freight movement, enable -10% reduction in transportation costs and -12% reduction in C02 emissions.
- Land parcels have been identified and pre-feasibility studies initiated on six of these locations.
- The government is also working to formulate a uniform policy for the development of MMLPs.
India at 35th rank in World Bank logistics index
- India has jumped 19 places to the 35th rank in the World Bank’s Logistics Performance Index 2016.
- The report, brought out every two years, measures countries across six components—customs, infrastructure, international shipments, logistics quality and competence, tracking and tracing, and timeliness.
- The LPI report is published by World Bank every two years.
- World Bank’s latest Logistics Performance Index (LPI) report titled “Connecting to Complete 2016”
- Further, in terms of the six-components of the LPI — customs, infrastructure, international shipments, logistics quality and competence, tracking and tracing, and timeliness — India’s ranking is 38, 36, 39, 32, 33 and 42, respectively.
Soource: TH & Economic TImes