Category Archives: Rail/Road

Enhancing the efficiency and reliability of rail cargo movement is crucial for optimising logistics in India, says Adhendru Jain, Vice President, Rail and Inland Terminals, DP World Subcontinent. He adds, “The government’s strong focus on creation of DFCs and MMLPs are aimed at further improving the movement of cargo via rail. The 2024-25 interim budget for India’s Railways included the introduction of three new DFCs that will support multi-modal connectivity. Enabling public-private partnerships to further boost infrastructure development and improved efficiency of rail freight movement. The establishment of the Gati Shakti Multi-Modal Cargo Terminals coupled with the expansion of MMLPs, will greatly enhance accessibility across India’s key industrial hubs, facilitating seamless cargo movement. Addressing an imbalance in cargo movement, particularly evident in the major corridors of the North-East, requires a strategic shift towards rail-based transportation, reducing reliance on road networks and fostering equilibrium in cargo movement dynamics. Moreover, the integration of coastal, air, rail, and road modes into multimodal solutions promises a sustainable and efficient last-mile connectivity framework, ensuring optimal service delivery for customers nationwide.”

“Changing trade policies can have significant ramifications on global supply chains, influencing sourcing strategies, production locations, and distribution networks,” says Keku Bomi Gazder, MD and CEO, Aviapro Logistic. He adds, “Tariffs, trade agreements, and geopolitical tensions can disrupt established supply chains, leading to increased costs, delays, and uncertainties for businesses worldwide. As a company operating within this complex landscape, we closely monitor trade policy developments and adapt our strategies accordingly. We prioritize agility and resilience in our supply chain operations to mitigate risks associated with policy changes. Additionally, we maintain open communication channels with our suppliers and partners to swiftly address any emerging challenges. From the government, we expect transparent and consistent trade policies that foster a conducive environment for international trade. Clear regulations, minimal bureaucratic hurdles, and a commitment to free and fair trade are essential for businesses to thrive in the global marketplace. Furthermore, we encourage policymakers to engage in constructive dialogues with industry stakeholders to understand their concerns and develop policies that support sustainable economic growth. Additionally, investments in infrastructure, technology, and skill development are crucial to enhance the competitiveness of Indian businesses on the global stage. By fostering an enabling environment for trade and innovation, the government can contribute to the resilience and prosperity of the Indian economy amidst evolving global dynamics.”

ICRA expects the revenues of the Indian road logistics industry to remain range-bound and grow at sedate pace of 3-6% in FY2025, given the limited ability of players to increase the freight rates, expected softening in Government capex during the elections (given the Model Code of Conduct requirements) and moderation in consumer demand sentiments amid high inflation and interest rates. The outlook for the sector continues to be Stable, fuelled by a sustained momentum in economic activities, enhanced traction of organised trade and continued support from varied segments like e-commerce, FMCG, retail, pharmaceuticals, and industrial goods. Mr. Suprio Banerjee, Vice President & Sector Head – Corporate Ratings, ICRA Limited, said: “ICRA’s sample set witnessed a modest revenue growth of 2.3% in 9M FY2024 on a YoY basis amidst tapering demand due to high inflation, an uneven monsoon, a high interest rate regime and relatively muted festive season. Thus, on an elevated base of FY2023, ICRA estimates a low single digit growth of 2-5% in FY2024. The growth for road logistics sector in FY2025 is expected to be in the range of 3-6% , owing to the impact on demand from high inflation, high interest rate regime and soft (though improving) consumer sentiment. The industry operating profit margin contracted to 11.2% in 9M FY2024 (down ~150 bps YoY), on account of increase in operating costs (ex-fuel) due to the high inflationary regime, and pressure on realisations, given the sticky retail diesel rates, limiting any formula-driven price rise. ICRA expects the margins to remain in the range of 10.5-12.5% in FY2024 and FY2025 over 12.4% in FY2023 amidst inflationary headwinds and despite benefits of efficiency gains due to increasing digitalisation and value-added …

DFCCIL Managing Director RK Jain recently inaugurated the Rewari Gati Shakti Cargo Terminal by flagging off a container carrier freight train. Other senior officials of DFCCIL including Director Operation and Business Development N Srinivas and Director Finance Heera Ballabh were also present on the occasion.This terminal has been commissioned by DFCCIL within a short span of 75 days at New Rewari Station Line No 10 of Western DFC. New Rewari Gati Shakti Cargo Terminal is an important terminal for container traffic. For this, an investment of about Rs 8 crore has been made by the GCT operator. The entire terminal access charge will be passed on by the GCT operator to the Indian Railways i.e. DFCCIL. This is a revolutionary change in the existing system of Indian Railways.With the commissioning of this terminal, there is a possibility of an increase of about 30 per cent in container traffic. The terminal will act as a logistics hub for EXIM container traffic under the ‘hub-and-spoke’ policy of the Indian Railways. With the commissioning of Rewari Gati Shakti Cargo Terminal, the operational efficiency of goods trains will increase and time and money will also be saved.

AVG Logistics Ltd has taken on lease Parcel Cargo Express Train, (goods train) running from Chennai to Guwahati for Rs 105 crore. The train will be used by AVG Logistics to transport its goods and will ply four times in a month, completing 313 trips during the lease period of six years. Although the train will be managed and operated by the Indian Railways, the responsibility for filling the train with goods lies with AVG Logistics. AVG will transport goods such as tyres, textiles, readymade garments, FMCG products and agarbattis. From Guwahati, the train is expected to transport goods like tea, bamboo products, plastic goods, mosquito repellents, FMCG items and hair oil. Indian Railways has inked similar deals with DTDC Express, DRTC Logistics, DOT Express, Patel Roadways, V-Trans and FastDespatch Logistics. The scheme, called Parcel Cargo Express Train, was introduced in 2020, and promoted as an alternative to booking an entire goods cabin, said official reports.

DP World has partnered with Vedanta Sesa Goa to facilitate the seamless movement of crude iron cargo from the coastal state of Goa to its cutting-edge inland container depot at Modinagar, said DP World’s official LinkedIn post. This rail freight solution aims to reduce reliance on road transport, alleviate traffic congestion, cut road maintenance costs, and contribute to environmental sustainability through its capacity to handle bulk cargo. The transition from road to rail is expected to result in a 70% reduction in carbon dioxide (CO2) emissions for Vedanta Sesa Goa. This partnership underscores our commitment towards fostering innovation, ensuring sustainability, and elevating the standards of cargo transportation in the metallurgical industry, the post added.

With the focus on making India ‘Viksit Bharat’ by 2047, Finance Minister Nirmala Sitharaman presented the interim budget and said the government’s focus is now on Sabka Sath, Sabka Vikas.” She said, “Tier 2 and Tier 3 cities will have more modern airports, in the coming years, there will be 11% increase in overall infrastructure expenditure. Exports will be doubled to ₹1-lakh crore rupees,” said FM. Touching upon measures that will be taken to expand India’s railway infrastructure, Sitharaman announced, three major railway economic corridors including energy, mineral and cement corridor, a port connectivity corridor and a high traffic density corridor. “Railway projects have been identified under the PM Gati Shakti Yojana for enabling multi-modal connectivity. These will improve logistics efficiency and reduce costs. Decongestion of high traffic corridors will result in improving operations, which in turn would result in safety and higher travel speeds for passengers. These corridors, along with dedicated freight corridors, will accelerate our GDP and reduce logistic costs. Finance Minister also said that the government is focused on more comprehensive ‘governance, development, performance’ – termed as ‘GDP’.

The Karnataka State Road Transport Corporation (KSRTC) is planning to induct 20 cargo trucks in a determined foray into organised freight business. Transport Minister Ramalinga Reddy inspected one of these trucks at the KSRTC central office and will flag off 20 on December 23, said reports. The government-owned bus operator has launched its freight business called ‘Namma Cargo’ to increase its its non-fare revenue. While the KSRTC has increased its freight traffic revenue from Rs 1 crore to Rs 2.5 crore a month, it’s planning to scale up operations. The induction of 20 ‘Namma Cargo’ trucks is a step in that direction,” added reports.

AVG Logistics acquires over 50 cold chain vehicles (reefer trucks) from global multinational companies to strengthen fleet operations, says release. “We acquired this fleet of 50 vehicles after detailed due diligence and assessment of vehicle quality, condition, wear & tear. This greatly enhances AVG’s ability to service recently signed a long-term contract with India’s largest MNC FMCG Company, both on the dry and frozen goods side,” company’s Managing Director and CEO Sanjay Gupta said in a statement. This acquisition takes the company’s total cold chain fleet strength to 275. AVG Logistics provides customised and technology-driven solutions across warehousing, distribution, and supply chain management.

DP World flagged off a first-of-its-kind dedicated rail freight service, ‘SARAL’ from Hazira in Surat, Gujarat, to the North Capital Region (NCR). True to its name, ‘SARAL’ which stands for Sustainable, Assured, Reliable, and Agile Logistics, will provide door-to-door sustainable cargo solutions for businesses based in South Gujarat and connect them to markets in and around NCR region and vice versa. The new SARAL rail freight service will link important markets in South Gujarat such as Surat, Vapi, Valsad, Vadodara, Bharuch, and Ankleshwar to markets in and around the NCR such as Western Uttar Pradesh, Eastern Rajasthan, Haryana, and South Punjab. Commenting on the launch of the SARAL service, Adhendru Jain, Vice President, Rail and Inland Terminals, DP World Subcontinent, said, “Ensuring resilient infrastructure and streamlined logistics is essential for enhancing economic growth and facilitating seamless domestic trade. Currently, the businesses in South Gujarat are primarily using roadways for cargo movement. SARAL, our new rail freight service, offers them a more sustainable way to move cargo with enhanced connectivity between Gujarat and NCR. In addition, our track and trace technology will provide complete visibility of the cargo to customers. We are deeply committed to create innovative solutions for our customers that are sustainable as well as efficient for the supply chain.” The SARAL service along with DP World’s multimodal network which provides the last and first mile connectivity facilitated by container trailer trucks, ensures secure delivery from the factory to the desired drop location within 72 hours. This multimodal play of truck and rail will lead to reduction in carbon dioxide (CO2) emissions. DP World will also provide cargo owners with a sustainability certificate that highlights the reduction of CO2 …