Roads And Their Connectivity Have A Huge Impact On The Logistics Sector

img-1-icon Ensuring road connectivity to the remotest places

Infrastructure has time and again served as the foundation upon which countries have reshaped themselves. The New Deal, ushered in by President Roosevelt in the United States, helped the country recover from the Great Depression. Japan after WWII, where transit-oriented growth was critical. South Korea increased at a ten percent annual rate between 1960 and 1990. China followed a similar pattern from 1980 to 2010. As a result, these countries experienced a socio-economic change within a generation. A multi-modal transportation network that greatly decreased the cost of logistics, enhancing export competitiveness, was a crucial enabler in these countries' success. Exports will be critical as India strives to bring in a similar economic revolution. However, our infrastructure has frequently been highlighted as a stumbling block in boosting our country's potential growth rate.

img-1-icon Tar roads are easy to build but difficult to maintain

What is the significance of infrastructure?

In economic terms, infrastructure expenditure has a multiplier impact on the economy. This implies that the project not only contributes immediately through increased demand for labour and building materials, but also indirectly through the second-order impacts that enhanced connectivity delivers. Goods and people will travel more quickly between places. The cost of logistics is decreasing. At the same time, a country's infrastructure strategy must smoothly and effectively transfer commodities and people across numerous means of transportation. This, however, necessitates a concerted effort. For example, roads would connect to railway lines, which would connect to ports, efficiently conveying products from the hinterlands to the ports. This will allow for the establishment of several urban and industrial centres across India. As a result of these metropolitan centres, different industrial clusters might grow up across India, allowing for balanced regional development. Revenues from both the federal and state governments would be increased, allowing for more spending on social programmes. This would have the unintended consequence of relieving strain on existing urban agglomerations, resulting in an improved overall quality of life.

img-1-icon Multi-lane expressways to improve connectivity

Creating an effective, seamless multi-modal transportation network, on the other hand, is a difficult challenge. It necessitates extensive coordination and collaboration across autonomous government agencies, driven by an overall master plan. During his 2021 Independence Day speech, the Prime Minister emphasised that the National Master Plan, GatiShakti, will assist in realising the dreams of crores of our people. The GatiShakti programme represents a paradigm shift in decision-making to break down departmental silos. All current and projected economic zones, as well as multi-modal connection infrastructure, are mapped in a unified platform in the proposed plan. Individual initiatives from various line ministries would be assessed and sanctioned in the future within the framework of the overall plan, resulting in synchronisation of efforts. GatiShakti will provide synergy to develop a world-class, seamless multi-modal transportation network in India. The National Master Plan will make use of cutting-edge technologies and IT systems to coordinate infrastructure planning. One example is a GIS-based Enterprise Resource Planning system with more than 200 levels for evidence-based decision-making. Another example is the use of satellite images for monitoring purposes. Digitisation will play a significant role in guaranteeing timely clearances and identifying possible concerns, as well as in project monitoring.

With the implementation of pinnacles like CargoFL TMS in its SCM, the logistics industry is already going through a digital business transformation and along with the boost provided by the National Master Plan, GatiShakti, the supply chain cycle is achieving a never seen before accuracy and efficiency. CargoFL TMS encapsulates data-driven features that function by collecting data from huge data lakes and doing meticulous data analysis to provide you with the most optimum results possible.

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