The logistics division under the Ministry of Commerce has recently decided to execute suitable plans to improve the city freight movement across India. The expansion of e-commerce activities with the rising economic growth and urbanization in the country has actually caused greater rate of first and last-mile freight movements, increasing traffic congestion and pollution which are ultimately impacting the public health.

Final-mile freight movement in Indian cities is currently responsible for 50% of total logistics costs in India’s e-commerce supply chains. For shifting towards the sustainable ways of logistics, upgradation of technologies is highly required. This is expected that the demand for urban freight will grow by 140% in the country in the next 10 years.

Key highlights:

1. City-level logistics committees would be formed under this initiative and they will have related government departments and agencies at the local and state levels.

2. These would also include the private sector from the logistics services.

3. For implementing this project, the logistics division is working closely with GIZ (Germany) under Indo-German Development Cooperation, Rocky Mountain Institute (RMI) and RMI India.

4. An extensive participation of nearly 300 stakeholders has already been taken place for this initiative.

5. 10 cities to be identified on immediate basis, it is planned to expand the list to 75 cities in the next phase before scaling up throughout the country, including all state capitals and cities that have more than one million population.

6. States/City Governments to focus on the quick-wins like developing peri-urban freight centres, night-time deliveries, developing truck routes, using Intelligent Transportation Systems & modern technologies, Promoting electrification of urban freight, Parcel delivery terminals etc.

7. Improving the economic competitiveness, reducing congestion and pollution, quick absorption of low effort initiatives etc. are some of the main agendas of this initiative.

An improved and technically advanced logistics system across the different parts of the country would enhance the efficiency of the freight movement and reduce the logistics cost boosting all sectors of the economy.

Source: Press Information Bureau

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