The logistics sector is set to get a boost with the Railway Budget emphasising on augmenting freight handling capacity through a slew of measures.
Increasing the speed in nine railway corridors will help reduce logistics lead time, which will ultimately benefit industry, according to experts. “Announcements like Transport Development Corporation and multi-modal depots are bound to improve the delivery capability. However, the budget has not addressed the main concern of ‘logistics cost’ that will continue to remain high,” said S. V. Sukumar, Partner, KPMG in India. The logistics industry has welcomed many of the announcements made by Railways Minister Suresh Prabhu.
“The proposed investment plan (2015-19), which includes network expansion, national projects such as Northeastern connectivity, high speed rail, elevated corridor, station redevelopment and Logistics Park look promising. These activities would give a boost to the logistics sector, Rhenus Logistics India Joint Managing Director Parikshit Arya said. Connectivity of airports with railways would give a boost to the perishable goods sector and this would encourage the use of multi-modal transportation, industry players said. Transportation of agricultural goods by the Railways will help to cut down the cost of basic vegetables and food supplies, they said.
However, the hike in freight rates up to 10 per cent has drawn flak.
