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wrong in setting global standards, section connects Sohnewal in Punjab
because it will help reduce the to Dankuni in West Bengal, while
competitiveness gap of India’s logistics the Western DFC links Dadri in Uttar
with global counterparts. Optimising Pradesh to JNPT in Mumbai, connecting
the logistics modal mix, digitalisation of major ports along the way.
supply chain operations and the logistics “India's NRP aims to address economic
industry, as well as the development of and environmental considerations, with
omnichannel, exploring our waterways DFCs playing a crucial role. DFCs are
further for enhanced domestic vital due to their ability to reduce transit
connectivity and the movement towards time and lower logistics costs. DFC’s
green supply chains and enhancing skill are expected to increase the rail share
development in logistics will be crucial in transportation from 30 per cent to 45
for India's growth,” said Malhotra. per cent, resulting in reduced logistics
costs. The implementation of DFCs
DFCs - the future of logistics under the NRP brings advantages such
FFinance Minister Nirmala Sitharaman as reduced transit time, lower logistics
has allocated Rs 27,482 crore to the costs, decongestion of existing railway
Dedicated Freight Corridor Corporation infrastructure, increased train speeds,
of India (DFCC) for the fiscal year and improved connectivity for efficient
2023-24 (FY24), a 75% increase from Rs goods movement. These developments
15,710.44 crore in FY23. According to the align with global energy efficiency and
Budget, the DFCC will fund Rs 15,241 environmental sustainability standards,
crore through internal accruals. contributing to a higher rail transportation
“The National Rail Plan (NRP) share and reduced logistics expenses in
knowing the importance of DFCs for India,” said Kulkarni.
economic and environmental reasons DFCs offer several benefits to the
is commendable. However, successful Indian Railway network. They ease
providers is essential. By leveraging implementation requires collaborative congestion, allowing smoother freight
these strategies, India has the potential efforts and infrastructure investment. The movement and increasing average
to achieve its goal of reducing logistics NRP's emphasis on DFCs is a positive train speeds from 25 kilometres per
costs to 9% by 2024,” said Shah. step towards an efficient, cost-effective, hour to 70 kilometres per hour. These
According to the Economic Survey and environmentally friendly freight corridors can accommodate heavy haul
2022-23, logistics costs in India have been transportation system,” said Shah. trains with a total load of 13,000 tonnes
in the range of 14-18% of GDP, compared DFCs provide efficient freight and facilitate longer and double-stack
to the worldwide standard of 8%. Union movement by reducing transit container trains.
Home Minister Amit Shah stated in times and logistical costs. It “DFC is expected to provide the
March during the annual session of has the potential to improve much-needed impetus to enhance
Assocham, the Associated Chambers supply chain operations, drive efficiency and increase the speed
of Commerce and Industry of India, a economic development, and boost of cargo transportation. However,
non-governmental trade association and competitiveness. Furthermore, along with speed, traceability is key
advocacy group based in New Delhi, that by lowering emissions, DFCs have to ensure the owner has real-time
the government is working to reduce the potential to contribute to visibility of the goods from dispatch to
logistics costs to GDP to 8 per cent from sustainability goals. delivery. In fact, it was reported that
the current 13 per cent. “Separating freight traffic from the Indian Railways will be installing
“We will have to remove the 8 per passenger traffic is very important in the global positioning system (GPS)
cent and 13 per cent gap. We have a country like India. Also, the double- in wagons for their real-time tracking
formulated a framework for the next stack container trains will be able and this will be complemented by
five years. I can assure you that we will to substantially reduce the unit cost RFID tags which have been installed
reach 7.5 per cent logistics cost in the of freight transport and hence save in most of these rolling stock. RFID
next five years,” he said. logistics costs. Next, the hubs located tags installed in wagons have all the
With policies like enabling 100% near EDFC & WDFC catchment area details relating to the rolling stock
foreign direct investment in logistics will also grow due to an increase in such as the year of manufacturing,
parks and warehouses, the NLP, and EXIM traffic, furthering supply chain name of manufacturer and capacity.
the latest 14-country pact, India is set optimization,” said Malhotra. The combination of GPS and RFID
for rapid expansion. The DFC project, India's largest rail will serve a greater purpose. As all
“The global benchmark and average infrastructure endeavour, covers 2,843 the data will be available at both the
logistics cost is around 8%. While our kilometres. After limited progress central and zonal levels, there will be
country has its own challenges to tackle, since 2006, the project is now ready more efficient utilization of the stock
solve and manage, there is nothing to launch in phases. The Eastern DFC on hand,” said Gupta.
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