rail-based-multi-modal-freight-logistics-park

Rail Based Multi Modal Freight Logistics Park

Efficient Logistic system in current times has become the backbone for the supply chain management. Referring to supply chain management, we mean a smooth supply and transit of finished and semi-finished goods from the manufacturer, retailer and distributor’s warehouses/location to the end consumer. Broadly it involves a series of activities that includes forecasting demand and supply, marketing the goods, safe packaging, warehousing of products, transporting, order processing, inventory control and various other services that ensure that goods reach its end location in good condition and on time.

With India becoming a globalized economy, it has become imperative to have an efficient logistic system and a step towards the same and to integrate all value added services, the Indian railways has invested heavily to develop the Dedicated Freight Corridor (DFC) which is meant only for heavy load freight traffic and shall ensure high speed transit of goods . The corridor is estimated to be a carrier of container traffic, bulk and break-bulk cargo. As per Cushman and Wakefield’s report “Logistics Industry- Real Estates’ New Power House”, the Indian logistic industry shall see an accelerated annual growth rate of 15%-25% which makes the need for DFC further evident.

DFC is divided into two parts:-

Eastern DFC – This shall link Ludhiana to Howrah

Western DFC – This 1483 Kms long freight corridor shall link Delhi to Mumbai and pass through the states of Maharashtra, Gujarat, Rajasthan, Haryana, Delhi and Uttar Pradesh which face a heavy flow of freight traffic. The western DFC shall cover 38% of Gujarat and shall pass through Valsad, Surat, Vadodara, Anand, Ahmedabad, Mehsana and Palanpur.

The government has plans to support the dedicated freight corridor through development of theDelhi-Mumbai Industrial Corridor, Special Economic Zones, MMLPs Investment Regions and Industrial Area along the corridor.

Gujarat has emerged as one of the most vibrant states when we talk about industrial output and contribution to national GDP. This also substantiates why 38% of the DFC has been structured to cross through Gujarat. With a mere 5% population and covering about 6% geographical area of the country, Gujarat contributes to about 7% of India’s GDP and 20% of India’s total production output. Gujarat is spread over an area of 1.96 lakh Sq. Kms and encompasses 26 districts and has a marvelous coast line which is 1600 Kms long with one major port and 40 non-major ports. Prominent cities of the state include Ahmedabad, Surat, Vadodara, Jamnagar, Rajkot and Jamnagar which contribute largely to the production output of the country.

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