Inland Transport
Inland Transport
Inland transport, the movement of goods and people within a nation’s borders, serves as a vital artery of economic activity. Employing a diverse array of transportation modes such as roads, railways, waterways, and air travel, it facilitates the seamless flow of raw materials, finished products, and individuals.
Particularly significant within India’s context, road freight transport constitutes a key element of the nation’s logistics and transportation infrastructure. This intricate network, comprising extensive roads, railways, ports, and airports, interconnects disparate regions, ensuring the efficient movement of commodities and people.
Recognizing the pivotal role of inland transport, the nation’s focus on enhancing its efficiency takes center stage in propelling economic growth, cost reduction, and minimizing environmental impact.
Driving Economic Growth: A Logistics Revolution
Over the past half-decade, India has steadfastly emerged as a major global economic powerhouse. This remarkable growth trajectory has been underpinned by escalating demand for both services and goods.
A direct result of this burgeoning demand has been the meteoric rise of the logistics sector, contributing a substantial 5% to India’s Gross Domestic Product (GDP) and offering gainful employment to an impressive 22 million individuals.
This dynamic sector orchestrates the movement of a staggering 4.6 billion tonnes of goods annually, with a total value exceeding INR 9.5 lakh crore. This vast spectrum encompasses diverse domains like agriculture, mining, and manufacturing, serving as the backbone of India’s industrial prowess.
Unlocking Potential: Blueprint for a Transformative Future
With the freight demand projected to quintuple by the year 2050, the logistics ecosystem assumes pivotal significance for India’s enduring competitiveness, employment generation, and environmental sustainability.
Guided by a visionary approach, the Government of India (GOI) has set its sights on fortifying the logistics landscape through strategic initiatives. Notably, dedicated rail-based freight corridors, bolstered coastal shipping and ambitious road projects like Bharatmala signify the government’s commitment to this transformative endeavor.
The strategic interplay of these initiatives, buttressed by a conducive policy framework, lays the foundation for a logistics infrastructure equipped to meet the demands of a rapidly evolving economy.
A Paradigm Shift: Towards Cleaner and More Efficient Freight Inland Transport
The quest for a greener and cost-effective future beckons India to embrace a radical shift in freight transport strategies.
The enormity of this shift becomes evident when we consider the projected freight energy consumption between 2020 and 2050, estimated at a staggering 5.8 billion tonnes of oil equivalent (TOE) in the business-as-usual scenario. Yet, a transformative trajectory is attainable, with potential energy savings of 50%.
This calls for a concerted effort to elevate the share of rail transport, optimize truck utilization, and usher in fuel-efficient vehicles and alternative fuels. Beyond the financial benefits, this shift promises a substantial reduction in carbon emissions, ushering in cleaner air and a healthier environment.
Reviving Rail: A Sustainable Freight Solution
Intriguingly, India’s rail freight share has witnessed a decline since 1951, currently standing at a mere 18%, overshadowed by inland transport’s dominant 71%. The underlying cause lies in the limited rail capacity, particularly on dense routes.
However, a reimagined role for rail presents an enticing solution. It can effectively handle bulk goods, optimize longer-distance transportation with economies of scale, and capitalize on India’s favorable geographic disposition for efficient rail transport.
Beyond bulk goods, rail’s versatility shines through intermodal operations, where a seamless fusion of rail and road transportation fosters the efficient movement of containerized goods.
Revolutionizing Truck Use: Streamlining Logistics Operations
India’s logistics landscape, while pivotal, bears the weight of substantial costs, comprising 14% of the GDP. The lion’s share of this financial burden is attributed to transportation and inventory expenses, accounting for over 90% of the total.
The culprits behind these elevated costs are inefficient logistics practices stemming from a fragmented market, lack of standardized trucking resources, aged vehicles, and obsolete warehousing technologies.
This manifests in underutilized trucks, unnecessary empty runs, and overloading — issues that can be decisively addressed through optimized truck utilization. By streamlining truck movements, emissions and operational costs can be simultaneously curbed, heralding a greener and more economical logistics ecosystem.
Greener Wheels: Accelerating Clean Vehicle Technologies
In tandem with optimizing truck use, embracing eco-friendly vehicle technologies takes center stage. India’s strategic approach encompasses enhancing the fuel efficiency of internal combustion engine (ICE) vehicles while promoting the adoption of electric vehicles (EVs) and cleaner fuels.
This transition is buttressed by reinforcing fuel efficiency and emission standards for ICE vehicles, fostering industry-wide collaboration for technological innovation, implementing supportive policies, and pilot projects for EV adoption, and the creation of a robust charging infrastructure.
The government’s FAME II initiative serves as a beacon in this drive, aiming to galvanize EV manufacturing and adoption through subsidies, subsequently lowering the total cost of EV ownership.
Sculpting the Future: A Convergence of Sustainability and Growth
In summation, India’s triumphant economic march is intricately interwoven with a robust and agile inland transport logistics sector. The concerted endeavors to bolster this sector, as evidenced by the orchestrated initiatives and visionary policies, underscore the government’s commitment to India’s sustained growth, global competitiveness, and environmental stewardship.
As the nation embraces the monumental freight demand of the future, the fusion of efficient rail networks, optimized truck utilization, and the swift adoption of clean vehicle technologies will seamlessly sculpt a landscape where economic prosperity converges with ecological vitality. In this intricate symphony, India’s journey toward a prosperous and sustainable future finds its resonant chords.
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