1. •India, the 5th largest economy, aims to surpass China, the 2nd largest, but faces
challenges, notably in the logistics sector, the lifeline of Indian trade, GDP, economic
growth….
•Inefficient logistics, particularly the slow movement of freight trains at an average
speed of 25 kilometres per hour, prolongs transportation times and delays capital
rotation(cycle of investment, revenue and reinvestment). Delayed capital rotation, less
profit despite making exact same product at exact same profit margin.
•Only because of sluggish logistics system, India's GDP impacting significantly.
•20 km/hr slower logistic means, about 80% less profit, offering lesser discount, same
product same quality but at higher rate.
INDIA (25km/hr) CHINA (45km/hr)
Time taken to travel 2000km 80 HOURS 44.44 HOURS
Number of cycles in a year(365 days *
24 hours)/hours for 1 cycle
109 cycles 197 cycles
Profit( $20 million/ cycle) $2.18 billion $3.9 billon
3. • The rail market share, as it can be seen, has gradually declined over the years. This trend is concerning
because the economies of scale for bulk cargoes can be better achieved using a combination of railway,
inland waterways, and coastal shipping.
• The freight transport sector in India, as a result, is heavily skewed towards road transport
• has set a target of having at least a 50% share of the country’s freight traffic by 2030
• unit costs of moving goods is highest for road transport (2.58 INR/ton-km), followed by railway (1.41
INR/ton-km) and waterways (1.06 INR/ton-km ), rail is 83% cheaper than road, contributing 2.5-3.5% sales
cost, compared with 0.8-1.5% globally.
• Nearly one-third of India’s logistics costs (~ 4% of GDP) are attributed to inefficiencies in infrastructure.
• The decongestion of roads long this stretch will also save India some Rs.4.9 billion in logistic cost, with
additional benefits of Rs. 2.4 billion accruing from reduced pollution.
4. • Graph shows depends on road and rail, although cheaper time
consuming, we can look upon how much its affecting Indian gdp,
impact after budling dedicated fright corridor
Source: Urban Freight and Logistics: The
State of Practices in India
