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Introduce freight villages to establish cluster of related logistics activities: ASSOCHAM

Updated: Jun 23, 2015 03:32:14pm
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Introduce freight villages to establish cluster of related logistics activities: ASSOCHAM
New Delhi, June 23 (KNN) To provide various logistics-related activities such as warehousing, packing, re-packing, break-bulk centre, and truck parking, ASSOCHAM has mooted a proposal to the Transport and Shipping Ministry to introduce freight village concept. It is a concept on the line of European model that takes the clustering of related logistics activities to a new level.

Freight villages are often operated under public private partnership mode, where an area is defined as a freight village by the public sector usually at the intersection of major multimode routes, and then private sector operators develop the facilities. They can vary in size, from few hectares to thousands of hectares, depending on their functions.

The chamber said freight villages, in Europe, are typically a private sector business, developed by large scale operators that host complimentary services and related operators.

Currently no such facilities exist in India. As a result, the surroundings of the larger cities are congested with on the rise disorganized parking and waiting areas. With an ever growing truck fleet, the situation is more worrying than ever before. Besides, unlicensed workshops service facilities and spare parts outlets have emerged in such areas, it said.

ASSOCHAM further said this combines with a widespread lack of metropolitan regulations (or enforcement when these exist) on specific timings for trucks to load, unload and circulate inside metropolitan areas, contributing to traffic jams and pollution.

Central to a freight village is an intermodal terminal that is connected to major freight corridors and a nearby seaport. This enables flexible, quick movement of containerized and de-containerised cargo between wharf, warehouse and ultimate destination by both road and rail, it said.

The second distinguishing feature of a freight village is shared access to other facilities, equipment and common user services. A centralised management and ownership structure is the third distinguishing feature of a freight village.

This is similar to the strategic management role of a port authority or corporation. Centralised management has the responsibility for planning the long-term investment and growth of the freight village as well as the short-term maintenance of the village infrastructure.

The chamber said application of these concepts to India could bring in immense user benefits at much lower resource costs to the economy. Within the Asia Pacific region there are well-established logistics centres and distriparks that share many of the features of the freight village. (KNN Bureau)

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