‘Freight Smart Cities’ plan unveiled

Context

The Logistics Division under the Ministry of Commerce and Industry has unveiled a roadmap to improve the city freight movement.

About the Freight Smart Cities initiative

• The roadmap envisions the concept of ‘Freight Smart Cities’ to improve the efficiency of urban freight and create an opportunity for a reduction in logistics costs.
• Under this, ten cities per state will be identified to be developed as Freight Smart Cities and also to set up institutional mechanisms.
• A Public-Private stakeholders plan will be adopted.
• Under the plan, peri-urban freight centers, night-time deliveries, truck routes, using Intelligent Transportation Systems & modern technologies, promoting electrification of urban freight, parcel delivery terminals, etc. will be developed.
• Under the Freight Smart Cities initiative, city-level logistics committees would be formed.
  • These committees would have related government departments and agencies at the local level, state, and from the reacted central ministries and agencies.
  • These would also include the private sector from the logistics services and also users of logistics services.
  • These committees would co-create City Logistics Plans to implement performance improvement measures locally.
• It will be implemented in a phased manner.

Significance of the plan

• Improvement in ranking: India ranked at 35 among the 160 countries in the Logistics Performance Index, 2016 of World Bank. It will further help to improve the ranking.
• Cost cutting: Improving city logistics would also enable efficient freight movement and bring down the logistics costs boosting all sectors of the economy. This is relevant as the demand for urban freight is expected to grow by 140 percent over the next 10 years.