Government to set up 15 logistics parks to boost exports

July 07, 2016: In an endeavour to reduce transportation costs and reduce pollution, plans have been made by the government to set up 15 logistics parks. This will help cities with high levels of freight movement at an investment of Rs 33,000 crore. The amount will be required for land acquisition, construction of storage space and development of allied infrastructure.

"It is proposed to develop logistics parks in 15 cities with highest freight movement (covering more than 40 percent of the total road freight movement in India) in Phase I of the programme," the Road Transport and Highways Ministry said in its proposal.

It said the expected development of logistics parks in the top 15 nodes will require capital investment of Rs 33,000 crores. A comparison between India and US reveals that road freight cost in India is Rs 1.9 per tonne per km, almost double than that of US. In phase II, the government plans to develop 20 more logistics parks.