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Blog Entry# 2058221
Posted: Nov 13 2016 (11:45)

1 Responses
Last Response: Nov 13 2016 (11:45)
Rail News
Commentary/Human Interest
Nov 10 2016 (19:21)   The Highways and Shipping Sectors Surge Ahead as the Centre Pushes for World Class Infrastructure

rdb*^   133028 news posts
Entry# 2058221   News Entry# 285315         Tags   Past Edits
The Union Minister of Road Transport & Highways and Shipping Shri Nitin Gadkari has said that his two Ministries have together spent a total of about Rs 4 lakh crores in the past two and a half years as they work towards building world class highways and shipping infrastructure in the country. While the Road Transport & Highways Ministry has spent about Rs 3 lakh 17 thousand crores to build a total of 14,594 Km and award 21,247 Km of National Highways, the Shipping Ministry has spent about Rs 80,000 Crores for various projects aimed at modernizing and mechanizing the shipping sector and making it more efficient. The Minister was speaking at Economic Editors’Conference organized by the Press Information Bureau in New Delhi today.
about the ambitious Sagarmala programme of the Shipping Ministry Shri Gadkari said that it will bring about a major reduction of logistics cost for EXIM and domestic trade. The cost savings from this are likely to be Rs 35,000 to 40,000 Crore per annum. He said that various projects amounting to about Rs 12 lakh crore have been identified under the programme. These include projects for enhancing port connectivity, modernization of existing ports and developing new ones, port linked industrialization and coastal community development.
A short film giving highlights of Sagarmala was presented before the audience. Many new and innovative projects are being taken up under this programme. These include port capacity expansion of 142 ports over 20 years, of which work on thirty will start this year; six new ports at Vadhavan, Enayam, Sagar Island, Paradip Outer Harbour, Sirkazhi, and Belekeri; 25 last mile rail connectivity projects by Indian Port Rail Corporation Limited (IPRCL) across 9 major ports; 27 rail connectivity projects to be taken up by Railways/ IPRCL ; 79 road connectivity projects to be taken up by MoRTH/NHAI/Ports, including 18 projects under Bharatmala scheme; heavy haul rail corridor between Talcher & Paradip; 14 CEZs as part of port-linked industrialization of which five pilot Coastal Economic Unit locations have been identified at Gujarat, Maharashtra, Odisha, Andhra Pradesh and near Ennore in Tamil Nadu; 29 potential industrial clusters identified based on detailed study of key commodities, across energy, materials, discrete manufacturing and maritime and also initiatives under Coastal Community Development objectives of Sagarmala, like skilling projects and infrastructure projects for development of fisheries sector.

Shri Gadkari also informed that the performance of Indian ports has been consistently good over the last two years, and all major ports are earning profits. This, he said, is the result of many initiatives taken by the Shipping ministry in the last two years like weeding out of obsolete rules, amendment of old legislations, modernization of ports, streamlining of processes, taking steps to reduce waiting time of ships at ports etc. The minister also said that his Ministry is committed to develop inland waterways transport on the 111 National Waterways in the country. While the work on developing Ganga as a waterway is already on, he said work would soon begin on rivers Krishna and Mandovi and Zuari.

Talking about the highways sector Shri Gadkari informed that once it is passed, the Motor Vehicles Act will be a game changer in the transport sector. He said that his Ministry has set a steep target of awarding 25,000 Km and constructing 15,000 km of national highways during 2016-17, and is trying to achieve the same. Problems of funding and land acquisition are being tackled through new policies wherever required and through negotiations with various stakeholders. He reiterated his commitment for not only providing the country with world class highways and access control expressways, but also for bringing down the number of road accidents and related fatalities and ensuring that pollution from the transport sector gets minimized .

Click here to see Achivements Ministry of Shipping
Click here to see Sagarmala Programme
Click here to see Sagarmala the Big Picture
Click here to see Sagarmala


(Release ID :153490)

Nov 13 2016 (11:45)
For Better Managed Indian Railways~   1933 blog posts
Re# 2058221-1            Tags   Past Edits
Good information, giving total scenario of the logistics sector in India. Following table gives total picture of the past 10years.
Parameter----------------Road------------Rail----- ------Water-Way-----Pipeline--------
(1) Transportation------(200-300)------(120-150)-----( 20-30)---------(12-15)
cost in Paise/ TKM
Relative Ratio of---20times--------10times-------2 times---------unity (cheapest)
the transportation cost
(3) % Share in-----------54.36-----------32.65-----------6.0-- -------------6.99
national traffic
(4) Investment made
in (10th,11th plans)
in Lacs Crores Rs–----4.06------------3.06-------------0.64------ --------1.6
(5) % share in the
total investment--------43.54----------32.05------------ 6.83------------17.13
(1) Above table shows that pipe line liquid/slurry transportation is the most cost effective and the best mode of transportation, but it has severe limitation that only liquid can be transported. Performance of India in this sector is impressive as a substantial investments have been made and a respectable 17% of traffic share is good for Indian Economy. Majority of pertoleum/LNG/petro-products are being transported by pipelines.
(2) Next best mode i.e. waterway is the most neglected sector which is carrying 6.8% of traffic and minimal investments have been done in this sector. Limitations are of this mode are the necessity of availability of navigable rivers and coastal regions. Most of the growth has been due to much better performance of pvt. sector which is gradually gaining prominence in this sector, which otherwise was almost fully govt owned. Sagarmala and other projects have been formulated to invest heavily in this sector so as to increase the share of water traffic to a desired level of 12%.
The above 2 modes of transport are distinctly cheaper than the remaining two. It would be in the interest of Indian economy and betterment of Indian citizens, to transport as much of goods through these two means as possible.
(3) The next best mode being the railways, the investment has been very low in the 10yr. period. As a result the share of rail traffic is falling fast.Maximum investment has been done in the most inefficient and costly sector i.e. road ways. In order to reduce the logistics and give boost to Indian industry/agriculture//exports/economy/GDP/per capita income, standard of living of Indians etc following is required:
(A) Transport of maximum almost all liquid goods like petroleum/ petro products/ LNG/ fine ores by way of slurry through the very cheap pipelines.
(B) Transport maximum of the remaining bulk solid and other solid materials by rail. Transportation of non bulk goods for short distance is preferable by road.
(C) If India can achieve success in promoting the efficient modes of transport and achieved the ratio of transportation in the following ratio:
Pipeline from 6.83% to 8%
Waterways from 6% to 12%
Railways from 32.65% to 50%
Roadways from 54.36 to 30%,
Then the logistics cost of our country shall be reduced by about 19%-21%.
(D) As a result, the logistics cost which is about 19% of GDP (i.e. 26.3 lac Crore Rs) at present, shall come down to a figure of 15% to 15.6 %.(i.e.20.8 to 21.6 lac Crore Rs) i.e. a reduction of (3.4-4%) or a national saving of (4.7-5.5) lac Crore Rs.!
Note:- GDP of India as per world bank is 2.1 trillion US Dollars 1.e. about 1.4 Crore Crore Rs. so 1% of GDP-1.4 Lac Crore Rs.
(E) Even then, further reduction in the national logistics cost is possible by improving the much needed efficiency in Railway sector which is costing much higher i.e 40 to 50% of the cost for Road sector, in spite of being much lesser 15-20% rail-friction/energy/fuel consumption in addition to huge benefits of unprecedentedly high economies of scales in Rly sector!
The mega plans under consideration for the Highways and shipping appear truly grand and are very much in-line to reduce the logistics costs of India. But the continued over emphasis (relatively very high investments) in the most inefficient road sector remains a matter of concern, which is extremely detrimental to the Railway sector as well as nation. Inefficient IR, efficient road line operators and the vested interests of road lobby have killed the prospects of the due development of railway sector which should have taken place in India.

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