The government may come out with a new policy on multi-modal transport hubs following the Union Budget made an announcement on it, say experts.
On the merger of railway Budget with the Union Budget, finance minister Arun Jaitley had said presenting the Budget on February 1 that "this decision brings the Railways to the centerstage of the government's fiscal policy and would facilitate multi-modal transport planning between railways, highways and inland waterways."
The Budget said a specific programme for the development of multi-modal logistics parks, together with multi-modal transport facilities, will be drawn up and implemented.
"The idea of having multi-modal logistics park or hub is not new at all. But a new colour has been given to it. There has been a policy for Inland container depot (ICD) and Container Freight Station (CFS), but there isn't any policy for multi-modal logistics hub," Sandeep Upadhyay, managing director and chief executive officer, Centrum Infrastructure Advisory said.
Such a hub is already being implemented as part of the Jal Marg Vikas Project (JMVP) at Varanasi. Railway link will certainly be extended to get connected with the logistics hub.
Nitin Gadkari, Union minister of road transport & highways and shipping said that his ministry is examining the feasibility of setting up multi-modal hubs where all modes of transport – air, road, rail and waterways wherever possible – are within close proximity to each other. Besides this, the latest technology for electricity-based mass rapid transport like the metro and hyperloop is being studied and tested.
The Rs 170 crore multi-modal terminal at Varanasi is set to emerge as a major logistics gateway connecting North India to the eastern and north-eastern states, extending up to Bangladesh. Construction for this is underway and will have waterway, rail and road connectivity.
The government has plans Rs 5,369 crore plans under JMVP and envisages a similar facility in other states including Goa and Maharashtra. Inland Waterways Authority of India has been working on plans to implement National Waterways project.
Manish Agarwal, leader, capital projects and infrastructure, PricewaterhouseCoopers India said, "Having a multi-modal logistics hub is a necessary component of the overall value chain. For railways, it is very much necessary for its survival."
Having such a step up will help in reducing road congestion and pollution as transportation of cargo will largely be dependent on waterways of India. Furthermore, movement of passengers and goods more efficient and cost-effective, experts said.
