RIGHT MODAL MIX

Right modal mix

In India, the current modal mix for cargo transportation is such that freight transportation by roads accounts for about 60-65 per cent followed by rail modal share at 30 per cent. The share of air, coastal shipping and Inland Waterways is even more is quite limited in India. This heavy reliance of road has accentuated despite the inherent advantages of safety, sustainability and cost effectiveness of other available modes.
By 2035 the policy aims to achieve the target share of 50 per cent of freight movement by road, 40 per cent by rail and 10 per cent by coastal shipping and inland waterways from the current modal mix of 60 per cent by road, 33 per cent by rail and 7 per cent by coastal shipping and inland waterways.

  1. To achieve the aforesaid target, several steps as mentioned below will be taken by the Logistics Division in collaboration with line ministries:
    • An assessment of actual costs of transportation, including environmental cost of various commodities /goods and different modes with help of a Green House Gas (GHG) emissions Calculator
    • Development of freight rate index to give freight trends on various routes and modes
    • Design and develop interoperable delivery models like containerised traffic, RO-RO, Road Railer etc
    • Setting up of coastal freight stations, construction of river-sea vessels, and the introduction of a customised vessel-financing scheme for inland vessels
    • Preparation of Sectoral Logistics Plans for Efficient Transportation