Key Infrastructure Projects Under PM GatiShakti

As a leading shipping and logistics company in India, Abhyansh is committed to supporting and highlighting the transformative infrastructure developments that are shaping our nation’s future. The 74th meeting of the Network Planning Group (NPG) under PM GatiShakti, chaired by Shri Rajeev Singh Thakur, Additional Secretary of DPIIT, evaluated five significant infrastructure projects that promise to revolutionize India’s transport and logistics landscape. These projects, spearheaded by the Ministry of Railways, Ministry of Road Transport and Highways, and Ministry of Housing and Urban Affairs, align with the principles of integrated planning outlined in the PM GatiShakti National Master Plan (NMP).

Balaram – Tentuloi New Railway Line (MCRL Phase II) in Odisha

This ambitious greenfield project entails the construction of a 49.58 km rail line in the Angul district of Odisha, at an estimated cost of INR 1,404 Crores. The primary objective is to provide vital first-mile rail connectivity for 11 coal blocks, thereby reducing logistics costs for industries and generating employment opportunities. This project is poised to significantly enhance the transport efficiency of coal, benefiting both the local economy and the broader industrial landscape of Odisha.

Budhapank – Luburi New Railway Line (MCRL Outer Corridor) in Odisha

Another critical project in Odisha involves the construction of a 106 km greenfield rail line at an estimated cost of INR 3,478 Crores. This line will support efficient coal evacuation from the Mahanadi River Basin, facilitating the transportation of coal from Talcher Coal Fields. By reducing the average distance to the railhead from 43 km to 4.2 km, this project will enhance logistical efficiency and reduce costs for core industries such as iron and steel.

Lucknow Metro Rail Project Phase I-B East – West Corridor (Charbagh to Vasant Kunj) in Uttar Pradesh

The extension of the Lucknow Metro corridor by 11.165 km addresses the city’s growing transportation needs. With an estimated cost of INR 5,801 Crores, this project aims to cater to an additional 200,000 passengers per day, significantly reducing congestion and vehicular pollution. The strategically located stations will seamlessly connect points of interchange, enhancing public transport accessibility through an integrated network. The development plan also emphasizes the use of renewable energy through rooftop installations, reducing conventional energy consumption.

Upgradation of Existing 6 Lane Road Including Elevated Corridor of NH-47 (Narol Jn. to Sarkhej Jn.) in Gujarat

This brownfield project involves upgrading a 10.63 km section of NH-47 at an estimated cost of INR 1,295 Crores. The project aims to alleviate increasing traffic congestion in the southern part of Ahmedabad, connecting major highways and expressways. By facilitating smoother and safer traffic flow, this upgrade will enhance the movement of goods and people, contributing to the economic vitality of the region.

4-Laning of Section of NH-166 from Chokak to Sangli (Ankali) in Maharashtra

The four-laning of a 33.6 km section of NH-166, at an estimated cost of INR 864 Crores, aims to enhance connectivity between Kolhapur and Sangli in Maharashtra. This development will reduce travel time by 50% and distance by about 5.4 km, significantly impacting environmental attributes by saving fuel and reducing pollution from vehicle emissions.

Conclusion

The Network Planning Group (NPG) evaluated these projects based on the principles of PM GatiShakti, focusing on integrated multimodal infrastructure development, last-mile connectivity, intermodal connectivity, and synchronized implementation. These projects are expected to play pivotal roles in nation-building by integrating various modes of transport and providing substantial socio-economic benefits. As we at Abhyansh continue to support such transformative initiatives, we remain committed to contributing to the overall development and ease of living in the regions we serve.

Major Investment Announced by Union Minister for Ports, Shipping & Waterways

The Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal, has unveiled a significant investment exceeding Rs 645 crores for the development of 10 waterways projects under the flagship Sagarmala Programme. These projects are set to receive full financial assistance from the central government to enhance terminals and riverine infrastructure along the river Brahmaputra (National Waterways 2), aiming to improve connectivity and stimulate economic growth.

The projects include the construction of slipways at strategic locations like Maya Ghat in Dhubri district and Majuli district, as well as the establishment of passenger terminals in various districts such as Ghagor in North Lakhimpur district and Bahari in Barpeta district. Additional passenger terminals are planned for Goalpara, Guijan, Kurua, Dhubri, Disangmukh, and Matmora, catering to the diverse transportation needs of Assam.

Emphasizing the government’s commitment to the development of the North-Eastern states, particularly Assam, projects exceeding Rs 1,000 crore have been initiated under the Sagarmala program. In Assam alone, projects exceeding Rs 760 crore are currently underway. Furthermore, efforts are underway to develop river tourism and water sports along the Brahmaputra, with plans for constructing seven tourist jetties at various locations.

With a focus on expanding port infrastructure and developing mega ports with capacities exceeding 300 and 500 million tonnes per annum, the government aims to increase the share of Inland Water Transport (IWT) to 5% by 2030 under the Maritime India Vision (MIV). The development of an Eastern Grid encompassing rivers like Brahmaputra and Barak aims to enhance regional integration and trade with South Asia and Eastern South Asia, potentially unlocking multi-lateral trade potential worth $49 billion.

Noteworthy achievements include the development of 20 waterways in NER from just one till 2014, leading to a 170% increase in cargo handled via the Indo-Bangladesh Protocol route. Additionally, the government has invested Rs 1,040 crores in waterway development, resulting in the establishment of the first Ship Repair facility in NER through Hooghly-Cochin Shipyard Limited (HCSL) at Pandu along River Brahmaputra.

Recent inaugurations include the Passenger-cum-Cargo terminal at Bogibeel near Dibrugarh, built with an investment of nearly Rs 50 crore, as well as the Inland Waterways terminal at Sonamura developed with an investment of Rs 6.91 crore. Upgraded terminals at Karimganj and Badarpur have been completed with an investment of Rs 6.40 crore. These initiatives reflect the government’s dedication to enhancing maritime infrastructure and promoting trade and commerce via the river Brahmaputra.

Surging Ahead: India’s Industrial & Logistics Leasing Sees 35% YoY Growth in H1 2023

In a promising sign of economic resurgence, India’s industrial and logistics leasing activity has registered a remarkable 35% year-on-year increase, reaching a staggering 19.1 million sq. ft. across eight major cities during the first half of 2023. This significant surge, reported by CBRE South Asia Pvt. Ltd., underscores the resilience and vitality of the sector in the face of evolving market dynamics.

Leading this surge was the dynamic trio of Delhi-NCR, Mumbai, and Chennai, which collectively contributed 60% of the total leasing activities between January and June. The report reveals that except for Bengaluru, all cities demonstrated a substantial upswing in industrial and logistics leasing in comparison to the same period last year.

The industrial and logistics sector has not only witnessed an impressive leasing upturn but has also seen a noteworthy growth on the supply side. With a remarkable 78% year-on-year increase, the supply side recorded a total of 17.7 million sq. ft. during the first half of 2023. This robust growth can be attributed to the release of pent-up supply in select cities.

Key cities contributing significantly to this surge in supply included Chennai, Kolkata, and Mumbai, collectively accounting for more than half of the total project completions. This surge was bolstered by major developers, backed by institutional funds, who played a pivotal role, contributing approximately 39% to the overall supply during this period.

Unveiling a prominent trend, the report highlighted the substantial presence of third-party logistics (3PL) players in the leasing activity, commanding a remarkable 43% share in H1 2023. E-commerce, retail, and manufacturing entities are increasingly outsourcing their supply chain processes to 3PL firms, harnessing storage optimization, enhanced flexibility, and operational cost curtailment.

The e-commerce and retail sectors individually accounted for a 9% share each in leasing activity. Moreover, auto & ancillary (7%), FMCG (6%), and electronics and electricals (5%) sectors have collectively enriched the leasing landscape, further diversifying the industry.

A closer examination of the market’s leasing landscape reveals a preference for smaller-sized transactions (<50,000 sq. ft.), constituting 44% of the leasing activities in H1 2023. Medium-sized transactions (50,000 – 100,000 sq. ft.) and large-sized deals (over 100,000 sq. ft.) constituted about 24% and 32% of the activity, respectively.

Delhi-NCR, Mumbai, and Chennai emerged as key players in closing large-sized deals, collectively accounting for a commendable 65% of such transactions. Driven primarily by 3PL players, followed by engineering & manufacturing and retail firms, these deals have collectively contributed to around 70% of large-sized deal closures.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, aptly encapsulated the sector’s trajectory, stating, “The second half of the year foresees a consistent influx of leasing activities, paving the way for an estimated 32-36 million sq. ft. uptake of Industrial and Logistics (I&L) space in 2023.”

As the industrial and logistics sector continues to evolve, it finds itself at the nexus of increased 3PL engagement, strategic supply chain optimization, and burgeoning consumer demand across diverse sectors. This upward trajectory is set to reshape India’s real estate landscape and further amplify the nation’s economic prowess.

Revolutionizing India’s Shipping and Logistics Industry: The Impact of Bharatmala Pariyojana

India’s shipping and logistics industry is set to witness a transformative shift with the implementation of the ambitious Bharatmala Pariyojana initiated in 2015. Union Minister Nitin Gadkari recently unveiled the government’s plans to construct 10,000 km of greenfield expressways at a staggering cost of Rs 4.5 lakh crore. This groundbreaking initiative, aimed at strengthening the country’s road network, is expected to have far-reaching implications for the shipping and logistics sector, heralding a new era of connectivity, efficiency, and economic growth.

At the heart of Bharatmala Pariyojana lies the vision to create an extensive and well-connected road network spanning 65,000 km across the country. This includes a phase 1 road network of 34,800 km, along with the construction of 10,000 km of greenfield expressways. By providing seamless connectivity between cities, ports, and industrial hubs, this transformative project will significantly enhance accessibility, opening up new avenues for trade and commerce.

The expansion and improvement of India’s National Highway (NH) network have been key priorities under Bharatmala Pariyojana. With the NH network witnessing significant growth from 91,000 km in 2014 to nearly 1.45 lakh km at present, the logistics industry stands to benefit from enhanced transportation routes. The seamless flow of goods and reduced transit times will translate into improved efficiency and productivity, enabling businesses to optimize their supply chain operations.

One of the key objectives of Bharatmala Pariyojana is to connect remote areas and foster regional development. The establishment of new infrastructure projects and greenfield expressways will unlock the economic potential of previously inaccessible regions, enabling their integration into the mainstream economy. This inclusive approach will not only spur industrial growth but also create employment opportunities and uplift local communities.

The government’s focus on asset monetization presents a significant opportunity for the private sector to invest in India’s infrastructure development. NHAI has generated over Rs 70,000 crore through innovative financing models such as toll-operate-transfer (ToT), National Highways Infra Trust (InVIT), and securitization via Special Purpose Vehicles (SPVs). This inflow of capital will support the construction of new highways, bridges, and expressways, further bolstering the nation’s logistics infrastructure.

Bharatmala Pariyojana aligns with the government’s commitment to sustainable development. The project emphasizes the construction of greenfield expressways, incorporating eco-friendly practices and technologies. By reducing carbon emissions, optimizing fuel consumption, and promoting the use of renewable energy sources, this initiative showcases the industry’s dedication to minimizing its environmental impact. It sets the stage for a greener and more sustainable future for the shipping and logistics sector.

The implementation of Bharatmala Pariyojana marks a significant milestone in India’s shipping and logistics industry. With its focus on connectivity, efficiency, and regional development, this transformative initiative is poised to propel the nation towards a more prosperous future. As the government continues to invest in infrastructure and promote public-private partnerships, the shipping and logistics industry stands to reap the benefits of improved connectivity, enhanced efficiency, and sustainable growth. The dawn of Bharatmala Pariyojana promises a new era of progress and opportunities for all stakeholders in the dynamic landscape of India’s shipping and logistics sector.

The Urgent Need for Green Fuels in the Shipping Industry

The shipping industry plays a substantial role in global greenhouse gas emissions, responsible for approximately 2.9% of global CO2 emissions in 2018. This figure is alarming, and the trend is worrisome as well. If no action is taken, shipping is projected to account for about 10% of global CO2 emissions by 2050.

Several factors contribute to the shipping industry’s high emissions. The sheer size and weight of ships necessitate significant fuel consumption to propel them. Moreover, ships predominantly burn bunker fuel, a heavy fuel oil notorious for its high sulfur content and other harmful pollutants.

Addressing emissions from shipping has become increasingly urgent. In response, the International Maritime Organization (IMO), the United Nations body that establishes shipping standards, has set a target to reduce greenhouse gas emissions from shipping by at least 50% by 2050, compared to 2008 levels.

Green Fuels: The Solution for Shipping

To achieve this ambitious target, the shipping industry must transition to green fuels—fuels that do not generate greenhouse gas emissions. Several types of green fuels are currently under development for shipping, including:

Electricity: Electricity is a clean and efficient fuel that can power ships. However, utilizing electricity in shipping poses challenges, such as the need to develop large batteries or establish shore power connections.
Hydrogen: Hydrogen is a clean and abundant fuel suitable for powering ships. However, producing hydrogen is currently challenging and expensive, and determining its storage and transportation on ships is still an ongoing process.
Ammonia: Ammonia is a clean and efficient fuel that can be used to power ships. However, its toxicity poses challenges, and further research is required to determine how it can be safely stored and transported onboard ships.
Biofuels: Biofuels derived from renewable sources, such as plants and algae, can be used to power ships. However, they are currently more expensive than fossil fuels and require further development and scaling to become cost-competitive.

The Challenges of Implementing Green Fuels in Shipping

While the benefits of green fuels for shipping are evident, several challenges must be overcome. Firstly, the cost of green fuels remains higher than that of fossil fuels, presenting a major barrier to their widespread adoption.

Secondly, the availability of green fuels is limited, and the infrastructure required to produce, store, and transport them is insufficient. This scarcity is another significant obstacle to their adoption.

Lastly, integrating green fuels into existing ship engines poses technical challenges that necessitate further research and innovation.

A Bright Future for Green Fuels in Shipping

Despite the obstacles, momentum is growing toward the use of green fuels in shipping. The IMO has set ambitious emission reduction targets, and shipowners and governments alike are investing in the development of green fuels.

As the cost of green fuels decreases and their availability increases, they will become more competitive with fossil fuels. This shift will result in wider adoption in the shipping industry, ultimately contributing to reduced emissions from this crucial sector.

In addition to addressing the challenges mentioned above, the use of green fuels in shipping presents numerous opportunities. For instance, the development of green fuels can create new jobs and businesses within the shipping industry. Furthermore, it has the potential to enhance the industry’s competitiveness by reducing fuel costs.

Effectively implementing green fuels in shipping is a complex issue, but it is imperative for combatting the climate crisis. By surmounting the challenges and embracing the opportunities, the shipping industry can assume a leading role in transitioning to a clean energy future.

Budget 2023 From The Shipping Industry’s Point Of View

The Indian government’s Union Budget 2023 has brought in new initiatives that are expected to have a positive impact on the country’s shipping industry. The government’s focus on the promotion of coastal shipping through Public-Private Partnership (PPP) mode with Viability Gap Funding (VGF) is one such measure that is expected to provide a boost to the sector.

As per the new budget, the Indian government is planning to deploy PPP and VGF models to promote coastal shipping in the country. This move is expected to attract private investments and provide much-needed support to the industry. The initiative is expected to reduce the cost of logistics and enhance the efficiency of cargo transportation.

According to Union Finance Minister Nirmala Sitharaman, the government is planning to develop new greenfield ports and augment the capacity of the existing ones to promote coastal shipping. The government aims to promote coastal shipping as a more sustainable and cost-effective mode of transportation, as compared to road or rail transport.

The new initiatives are also expected to create employment opportunities in the sector, and boost the economic growth of the country. The government is expecting that the promotion of coastal shipping will reduce the cost of logistics, which will improve its contribution to the country’s GDP.

The shipping industry has welcomed the government’s initiatives, and industry experts believe that the new measures will help India achieve its goal of shipping $1 trillion worth of manufacturing goods by 2028. However, some experts have also pointed out that there are certain challenges that the industry will have to overcome to achieve this goal.

One of the key challenges is the lack of infrastructure and inadequate port capacity. India’s ports are currently operating at almost 90% of their capacity, and this could hinder the growth of the sector. To overcome this challenge, the government is planning to develop new ports and enhance the capacity of the existing ones.

Another challenge that the industry is facing is the high cost of transportation. The government’s focus on the promotion of coastal shipping is expected to address this challenge to a certain extent. By reducing the cost of logistics, the industry will become more competitive and will be able to attract more business. In conclusion, the Union Budget 2023 has brought in several measures that are expected to have a positive impact on the shipping industry. The promotion of coastal shipping through PPP mode with VGF, the development of new ports, and the enhancement of the capacity of the existing ones are some of the key initiatives that are expected to provide a boost to the sector.

India Releases Its New National Logistics Policy

The National Logistics Policy was launched on 17 September by the Indian government with the aim of promoting the seamless movement of goods across the country and also improving the competitiveness of Indian goods in domestic and global markets.

As per the policy, India has a goal to reach the global benchmark of logistics costs by 2030. The policy lists down a clear-cut action plan to reduce the current level of logistics cost from 13-14% to 8%. Though it is not an easy feat, the policy focuses on the fact that the higher cost of logistics in India is a big hindrance to improving efficiency across various sectors. The developed economies spend less on logistics making them competitive even if the cost of production remains the same for them. India wishes to bring the logistics cost to a single digit as soon as possible as it is a vital element of its grand plan to become a formidable economy.

To achieve this ambitious goal, the government is going to integrate seven ministries on one platform to offer cargo movement information to logistics companies. It will create a Unified Logistics Interface Platform (ULIP) for easy governance of these integrated ministries. The government is also planning to bring 17 digital platforms together to have a unified view of the logistics information in India.

The government will make the cargo data available to logistics companies, importers, and exporters. Also, it will offer faster clearances for cargo movements. This is expected to increase productivity and reduce resource wastage.

For India’s prosperity, it is critical that the logistics network is spread to every nook and corner of the country. This new National Logistics Policy is aimed at encouraging logistics companies to operate at blazing fast speed to reduce wastage of perishable products, enable last-mile delivery, and make Indian goods competitive locally and globally by helping reduce the cost.

Abhyansh Shipping is committed to improving its services for customers and is hopeful that the new National Logistics Policy will enable it to deliver seamless logistics services that are efficient and cost-effective.

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