A recent paper by IMF on ‘Road Quality and Mean Speed Score’ ranked India 127th among 162 countries in terms of road transport speed. The US is the fastest country, with a mean speed score of 107 kmph, while India has a mean speed score of 58 kmph. Unsurprisingly India has high logistics costs of around 13-14 per cent of GDP as against 8-10 per cent in the US and Europe.

Reducing logistics costs is a sine qua non for India, where freight activity is expected to grow five-fold by 2050. India’s Logistics Ecosystem plays a critical role in achieving the national priorities of Atmanirbhar Bharat by ensuring quick, efficient, and economical transport of goods across India.

Often disjointed planning lacking synergy amongst the various ministries leads to infrastructure being under-utilised, outdated, or congested by the time it is finally completed. Out of the ambitious investment plan of ₹1,11,30,428 crore under the National Infrastructure Pipeline (NIP), ₹36,66,028 crore is envisaged for Road, Rail, Ports, and Airports, i.e., approximately 33 per cent of NIP is towards the Logistics Sector Projects. With such a vast investment plan there is a need for holistic, integrated, and synchronised planning between the various modes of logistics.

Integrating data

PM Gati Shakti Master Plan is aimed to tackle the above challenges. It provides a comprehensive database of ongoing and future projects of Infrastructure Ministries of Centre and States. The data will be integrated with 200+ GIS layers with visibility to various stakeholders so that planning, designing, and execution can be done with a shared vision. Project delivery will achieve efficiency through collaboration, coordination, data-backed project planning and real-time data analysis.

One of the main themes of Gati Shakti is multi-modal connectivity. It aims at seamless integration of systems and policies alongside efficient project management. Gati Shakti projects will leverage technology extensively including spatial planning and data analysis tools. This techno-enabled approach to infrastructure development where data on project geography, with multiple layers of project information of 16 infrastructure ministries, all integrated into a single database will ultimately break the silos of information management and enable faster decision making.

For instance, road construction involves multiple stakeholders, NHAI being responsible for the roads till district headquarters, State PWD or Rural Development Department comes into the picture thereafter and BRO looks after border areas. Gati Shakti will help in the coordinated completion of roads at the same time, thereby providing seamless connectivity and opening various opportunities.

Similarly, though the creation of new or upgradation of existing Railway Station is the responsibility of the respective Division of Indian Railways, but the approach road comes under the ambit of the State government. The lack of coordination between the two executing bodies may result in the non-utilisation of newly created public infrastructure. Dynamic mapping of brownfield and greenfield projects on the Gati Shakti GIS Portal, with real-time updation, will provide visibility to implementing agencies to align their priorities properly.

Gati Shakti plan also aims to develop a nationwide network integrating digital systems of various ministries dealing with logistics under one platform known as ULIP (Unified Logistics Interface Platform) for facilitating minimal documentation, real-time information and faster movement of goods.

Availability of quality data in ULIP integrating various data sets such as LDB of NICDC, FOIS of Indian Railways, Vahan Saarthi of MORTH, ICEGATE of Customs Department, FASTag of NPCI etc opens a plethora of opportunities and use-cases for increasing efficiency.

One such use case can be finding the most appropriate mix of the fleet, and the most optimal route. With the help of ULIP Data and AI-driven route optimisation solutions, a Zardozi Saree manufacturer in Bareilly and exporting sarees to Berlin can accurately choose the shortest, most efficient, and most cost-effective routes suiting his requirements.

As of today, there is not much visibility about the predictive freight rate trend, supply-demand gaps, truck utilisation factors, corridor congestion data etc. Combining ULIP Data with AI and ML tools can lead to a prediction of trends and evidence-based intervention can be done both by government and private entities.

The Indian logistics industry is still largely disorganised and fragmented and suffers from a skewed intermodal mix. For instance, in 2020, Rail’s share stood at merely 18 per cent as compared to Road’s share of 71 per cent. In India, the average lead of freight transport is around 550 km, and for such long-haul transport on dense corridors, Rail transport is economical and environment friendly.

However, hassles of multiple loading and unloading owing to lack of last mile connectivity have resulted in a lower share of Rail vis-à-vis Road transport.

With greater emphasis on data-backed based holistic planning, enhancement of infrastructure to cater for the needs of the future, multimodal connectivity, and rationalisation of processes, it is expected that pieces of the Indian logistical puzzle will fall in right place to make India globally competitive.

The writer, an IRAS officer, is on Deputation as Deputy General Manager, Finance and Risk Management with DFCCIL. Views expressed are personal

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