Complex production systems now require setting global value chains. Modern supply chains are global in nature, and their transport services, as a rule, cannot be provided by means of one transport type. Effective goods promotion in the supply chain requires coordinated intercontinental transportation, long-distance transportation by land and local goods delivery, as well as terminal operations along the entire route.
The intermodal regional connectivity between the countries of Asia Pacific if developed to its potential can be a major boost to economic growth and development of trade between countries. Building well connected and multi modal trade corridors including a network of roads, railways, inland water routes, sealed container facilities, container terminals, effective gateways (nodal port/airport/railyard) and ease of multi-modal transfers related to these gateway transit points and oil pipeline, among others, can provide a strategic advantage.
The integration with global supply chains through inter-modal means requires specific initiatives in capacity building keeping strategic interests in mind. Some such areas for development may, inter-alia, include:
- Improving connectivity with Bangladesh, Nepal, etc.
- Sea-road-rail link up to Chabahar port / Bandar-Abbas
- Involving major logistics service providers at planning stage
- Facilitating rail network connectivity between Bangladesh, Nepal, India, Pakistan, Afghanistan, Iran and Turkey, the TAR route of Dhaka-Kolkata-Delhi (DKD), Amritsar-Lahore-Islamabad-Zahedan-Istanbul (ITI-DKD) route, needs to be kept in mind as an alternative to the China-Central Asia-Europe link.
Few initiatives taken by Logistics Division with the International Entities include:
GIZ project with Logistics Division
Currently, 60% of goods is carried by road; 33% by railways and 7% by coastal shipping and inland waterways. Studies have shown that the share of rail transport could even drop from 35% (in 2009) to 25% by 2020 in a business-as-usual scenario (Mckinsey 2010). The road freight transport vehicles use diesel, and it accounts for 60-90% of fuel consumption in the transport sector and it accounts for 63% of CO2 emissions in the road transport sector.
According to the United Nations Environment Program (UNEP), the fuel consumption of freight traffic will increase six-fold between 2010 and 2050 (Dhar, Pathak, and Shukla 2013).
India is therefore faced with the challenge of disproportionately large traffic volumes and high energy consumption. This makes the freight transport sector one of the sectors with currently the highest potential for reducing greenhouse gas (GHG) emissions and other climate-relevant pollutants - and the trend is rising. Energy efficiency in freight transport and improved logistics processes were laid down in the Indian Nationally Determined Contributions (NDCs) as important reduction strategies. Making the freight sector more efficient and climate friendly would facilitate a 10 percent reduction in logistical costs, leading to a growth of 5 to 8 percent in exports.
The green freight project advises the Ministry of Commerce and Industry (MoCI) and selected authorities responsible for the freight sector in developing climate-friendly standards and regulations at national, state and city level. Measures for improving the logistics management and introducing climate-friendly measures will be implemented along the selected corridor as a pilot project. To ensure the sustainable implementation of national strategies, the competences of state and city level authorities, as well as private logistics companies and truck drivers, will be strengthened. At the same time, the partners will receive support in setting up monitoring systems for the reduction of greenhouse gas emissions.
- The project aims to implement three measures for the reduction of greenhouse gas and pollutant emissions, which are provided by competent actors along the selected corridor.
- The project aims to build capacity of logistics companies, drivers, mechanics, public inspectors (administrators) and policymakers for implementing climate friendly and efficient freight traffic measures on an operational level.
- The project aims to build a guideline/manual for measuring GHG emissions and other climate pollutants in the freight sector and is applied in reporting of NDCs.
India Russia cooperation
- INSTC is an important initiative taken by India, Russia, and Iran to promote transportation cooperation and to enhance their connectivity with the central Asian countries. It is a multimodal trade transport network connecting India with central Asian and Eurasian countries. It has potential capacity of transportation of 20-30 million ton of goods per year.
- A dry run of INSTC was conducted by federation of freight forwarders association in India (FFFAI) in 2014 which suggested that there would be reduction in distance by 40% and reduction in coat by 30%.
- In February 2020 an MoU was concluded between Container Corporation of India and Russian railways (RZD) whereby CONCOR would be the single window facilitator between Indian destination to Iranian ports while RZD would be the counterpart for the segment between Iranian ports and Russian destinations.