Pre-Induction Assignment 1

India’s Internal trade infrastructure

Name: ANSHUL AGRAWAL

Enrollment No. 211510025893
  4TH largest network - 67,956 km
 13,169 passenger & 8,479 freight trains
 23 million travellers and 3 Million
Tonnes of freight daily
US $25 billion
• RailTel Wi-Fi across Indian Railway
Network
• DFCCIL construction, maintenance,
operation of dedicated Freight
corridors
• ConCor Navratana PSU providing
logistics solutions to Indian
Railways.
 Growing industrialisation, rising
incomes and increase in urbanisation
has raised freight traffic.
 Railway transport export of $ 380
million in FY 19 with CAGR of 52.52%
during 2010-19.
 Budget 2021 $ 14.8 billion allocated
to railways
 Freight traffic is expected to grow
from 1.2 billion tonnes in FY 20 to
2.0 billion Tonnes by FY 24.
1. Financial - dynamic pricing, Merger
of Railways and Finance Budget,
100% FDI in Railway infrastructure
2. Organizational: Setting up Rail
Development Authority as
independent regulator.
3. Technological: Train protection
Warning System (TPWS) & Train
Collision Avoidance System (TCAS)
Elimination of UMLCs
 Inadequate investment lack of  Dedicated freight corridors and
resources for operation, high speed passenger corridors to
maintenance, tech upgrade reduce turn around time.
 Aged and overloaded infrastructure  Modernise core assets coaches,
tracks, bridges, signals
 High Operating Ratio [0.96] leaving
less time for safety inspections.  Use ICT status of train timings,
frequency, delays, monitoring etc.
 Cross - subsidy burden leading to
higher freight charges → trade  All new coaches of the safer LHB
shifting to road design
 Excessively centralised  Disinvestment in railway PSUs
organizational structure delay in  Rationalise passenger fares and
decision making make freight fares competitive.
 Utility-death spiral: low air-fare
forcing railways to not increase
passengers fares
 HR inadequacy lack of training,
large number of vacancies, long
working hours
Golden Quadrilateral and its diagonals
make only 15% of total route length but
transports 55% of freight.

 12 major Ports – 6 Ports on East
and 6 Ports on West Coast
 204 minor ports
 Ports handle 90% by volume and
70% by value of EXIM trade
 Major Port have a capacity 1535
MTPA
 Only 44 Minor ports are functional.
 Around 300 dry ports in India –
only 170 are functional
• Dry port/inland port is an inland
terminal directly connected to a
seaport.
• Located where network of
different transportation modes
converge
• Facilities include: container yards,
warehouses, railway sidings, cargo-
handling etc.
• Helps relieve seaport
congestion.
 Container traffic in FY 20 was 9.98  Port congestion High Turnaround  Capacity augmentation by making
TEU witnessing 1.12% y-o-y growth. time (2.1 days) new ports functional
Increased trade will further boost
 Inadequate port depth average in  Ensure Multi-modal connectivity
demand.
India 12 metre against 18 metres with ports for last mile connectivity.
 Infrastructure Development will required by Mother vessels. 5th  Facilitate access to capital: Priority
boost demand for Iron & steel gen ships are not able to enter Sector Lending, VGF (limited period),
freight. India infra bonds, PPP reforms
 Dredging DCI is dominant player  Enhanced use of ICT mechanized
with few private vendors cargo handling infra, automated
 inadequate navigational aids, clearances
1. 100% tax concession for 10 years for facilities and IT systems  LADIS Least Available Depth
enterprises that develop, maintain and  Low capacity Utilization < 50% in Information System
operate Inland ports. FY20
2. 100% FDI under automatic route for
 High port charges with respect to
port & harbour construction &
International Ports.
maintenance
3. Sagarmala Project
SAGARMALA Project – 4 pillars of Port led Development
Kolkata Port Port Port- Led Port Coastal Community
of only major Modernisation Industrialisation Connectivity development
riverine port • New ports • Industrial clusters • Road/ Rail • Skill
of India • Efficiency • Coastal economic connectivity Development
improvement Zones • Logistics parks • Coastal tourism
 Inland waterway network of 14,500 km in  5200 km of river & 4000 km of
form of rivers, canals, lakes & ponds canals are navigable.
 111 National Waterways
 Maritime India Vision-2030
 IWAI is the statutory body in charge of
envisages $40 billion investment in
waterways in India. port project, shipping & inland
 55 million tonnes of cargo moved
waterways.
through Inland waterways – highly
unutilised.  Employment opportunity for 2
 1411 cargo vessels in merchant shipping. million people.
 28 Shipyards in the country, 6 under  Increased modal share of cargo
Central, 2 under State Governments and
volume from 0.5% to 2% witnessing
20 under PSUs
19% y-o-y growth.
 Indian Maritime University, Chennai
development of trained human resource  Lower operating cost 30% lower
for the maritime sector. compared to Railways & 60% lower
compared to Trucks.
Indo-Bangladesh Cargo
1. 106 inland waterways declared as Movement along NW 1
National Waterways in 2016.
Cargo (in Million
2. Forum of Cargo-Owners & Logistics 4
tonnes)
Operators (FOCAL) to connect cargo 3.5
owners & shippers online. 3 1500 tonnes vessel.
3. Central Road & Infrastructure Fund can
2.5
be used for Inland Waterways
development. 2
4. Jal Marg Vikas Project 1.5
FY 15 FY 16
 Ageing fleet avg age 19.9 years  Open dredging Market to
international players & develop
 Shallow depth and seasonal
deeper, year-round navigable
dependence on monsoon.
stretches.
 Inadequate air draft low vertical
 Make financing inland vessels part
clearance block passage of large
of Priority Sector Lending
vessels
 Regular navigation service to
 Shortage of IWT vessels & MRO determine the depth.
facilities
 Expedite implementation of
 Dependency on foreign ships: only
SAGARMALA
10% of freight by Indian Ships
 Integrate with Big ticket projects to
 Lack of terminals inhibits door to harness full potential
door connectivity to end users. Skill India → Human resource for IWT
Blue Revolution → socio- economic
 Environmental lobby resistance empowerment of fishing community
Jal Marg Vikas Project on NW 1 between Haldia & Varanasi
• Develop a fairway with 3 metre depth capable of carrying
• Construction of Multi-modal terminals, RoRo and navigation
aids.
FY 17 FY 18 FY 19 FY 20
 Lopsided Modal Mix in India
Roadways Railways Inland Waterways
Share in Freight Transport 59% 35% 0.15%
Operating Cost / Tonne-km Rs. 2.58 Rs. 1.41 Rs. 1.06
CO2 emission/ tonne-km 64gm 28gm 15gm
Roadways Railways Inland Waterway
• Provides last mile • Low energy consumption • Low accidental rate
connectivity and less polluting • Employment opportunity China 30% Least socio-
• Wide network connecting • Cost effective • Economic and US 37% environmental
remote regions • Better cargo security environment friendly cost
• Fast over short distance
• Only good for high volume • Not fit for perishable cargo
• Expensive, unsafe, more corridors & long distances • IW development has high
polluting • Not flexible social cost

• Only roadways provide last mile

connectivity and hence are integral
India slipped from 36th (2016) to 44th
to all freight transport.
position in World Bank’s Logistics
• Railways and Inland waterways are
Performance Index (LPI) in 2018.
ideal for transporting long distances
• An Integrated Transport Modal mix
will be economic, efficient and
environment friendly
Reference
1. https://www.ibef.org/
2. http://shipmin.gov.in/ Name: ANSHUL AGRAWAL
3. http://iwai.nic.in/ Enrollment No. 211510025893
4. Niti Aayog: GOODS ON THE MOVE
5. https://concorindia.co.in/
6. https://www.unescap.org/sites/default/files/6.4.India__0.pdf
7. https://www.cogoport.com/blogs/complete-guide-to-road-rail-
barge-transport-what-exporters-importers-need-to-know
8. Key issues & challenges for Inland water transportation Network in
India Praveen S Jegan J