Union Budget 2024 gives thrust to multi-modal connectivity & efficiency to improve logistics industry
NEW DELHI : The Union Budget 2024-25 has given a thrust to multi-modal connectivity by implementing economic railway corridors and port connectivity corridors, logistics and port players said on Thursday.
Rajiv Agarwal, MD & CEO, Essar Ports said that with a substantial increase in infrastructure outlay the budget has rightly given a thrust to multi-modal connectivity by implementing three major economic railway corridor under the PM Gati Shakti Programme.
“These initiatives will go a long way in improving logistics efficiency and reducing cost. This will surely elevate India’s logistics and infrastructure landscape”.
Rizwan Soomar, CEO & Managing Director, North Africa and India Subcontinent, DP World said that the budget complements the vision of a ‘Vikasit Bharat’ (developed India) by 2047 with a strong focus on infrastructure development.
“With a strong focus on infrastructure development, last-mile connectivity, and social and geographical inclusivity, it effectively complements the vision of a ‘Vikasit Bharat’ (developed India) by 2047.
“The establishment of port connectivity corridors, high traffic density corridors, and commodity (energy, minerals and cement) corridors will greatly improve supply chain efficiencies and give a significant boost to domestic and international trade, thus opening new possibilities for businesses in India while improving logistics efficiencies and multi-modal connectivity.”
Anish Mathew, Chief Financial Officer (CFO), of Allcargo Gati Limited said that the thrust on advancing EV infrastructure and driving the energy transition aligns seamlessly with the logistic industry’s goal to minimise operational impact on the environment.
Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics Ltd stated that the announcement of three major economic railway corridor programs, spanning energy, mineral, and cement corridors, port connectivity corridors, and high-traffic density corridors under the PM Gati Shakti initiative, is poised to be transformative.
“The integration of dedicated freight corridors is poised to catalyse GDP growth and significantly reduce logistics costs,” Swaminathan said.
Rajashree Murkute, Senior Director – of Infrastructure Ratings said, “Incremental focus on economic corridors to gain logistic efficiency; green energy initiatives through rooftop solarisation and VGF support for off-shore wind projects augur well in the pursuit of transforming the nation into USD 26 trillion economy by 2047.”
Kami Viswanathan, President, MEISA, FedEx Express said that the 2024 interim budget’s increased capital expenditure for infrastructure development is a strategic and commendable move.
“It promises to accelerate economic growth and positively impact the logistics sector. The emphasis on expanding air connectivity, along with the development of existing airports and the establishment of new ones, is a pivotal step that aligns with our advocacy for efficient multimodal logistics.
“The government’s commitment to the PM Gati Shakti National Master Plan, is encouraging. These initiatives aim to enhance logistics efficiency and reduce costs.”
Rajesh Jaggi, Vice Chairman for real estate at the Everstone Group, said the Interim Budget’s focus on transportation infrastructure aligns with our expectations for enhanced logistics connectivity.
“Moreover, the development in aviation, especially in emerging markets, can stimulate the demand for warehousing facilities near airports, supporting air cargo logistics.”
Homi Katgara, Partner, Jeena & Company said that the budget announcement is welcomed by the logistics industry.
“As industry players, we are brimming with optimism. The Rs 1-lakh crore innovation corpus specifically targeted at young minds in technology is an important move. This fosters a culture of problem-solving and tech adoption, crucial for streamlining logistics operations and optimizing routes.”
The infrastructure push, particularly the doubling of airports (149 in 10 years) and the development of dedicated railway corridors, is a game-changer. These initiatives will significantly improve connectivity, decongest existing routes, and expedite freight movement, he said.
Olivier Loison, Managing Director, Alstom India said, “The Union Budget promises to drive development and innovation, taking India’s infrastructure to the next level and by bringing together its transportation ecosystem for rail, road, aerospace and more to benefit individuals and businesses alike.
“The announcement of metro and NaMo Bharat expansion, three major railway corridor program and transformation in existing rail ecosystem will create opportunities for us to introduce world class rolling stock, rail equipment and infrastructure, signalling and services in India.
It will not only strengthen the overall efficiency of transportation network but also improve the reliability and safety of passenger trains.”