India loses $6.6 billion due to transportation delays in freight: report
Report suggests these delays costs $14 billion per year on account of the fuel consumption
- Army of volunteers run aid collection centres
- Security forces scale down relief ops, withdraw from some areas
- Flood-hit Kodagu may send migrant workers back home in bid to streamline relief process
- I-T dilutes move to cap appeals based on monetary value
- Seven states get new governors, Malik replaces Vohra in J&K
New Delhi: India annually loses $6.6 billion due to transportation delays of freight, shows a comparison study of the survey data for the calendar years 2008-09, 2011-12 and 2014-15 by the Indian Institute of Management, Calcutta, commissioned by Transport Corporation of India (TCI).
That’s not all. These delays costs $14 billion per year on account of the fuel consumption.
The finding were presented on Tuesday by the IIM Calcutta professor Subrata Mitra before transport minister Nitin Gadkari and the media while releasing the study “Operational efficiency of freight transportation by road in India”.
The study shows that while the average journey time and average vehicle speed have improved over the years, the average mileage of vehicles has remained almost same in the India.
Among the 26 routes studies, one common observation was that for routes covering the eastern and north-eastern parts of the country average vehicle speeds were lower and average stoppage delays were higher than the corresponding national average due to poor road conditions, more stops and long queues.
The report says that although the average journey time and vehicle speed have improved across all the major routes, more needs to be done to reduce stoppage delays as this not only leads to wastage of time but also raises fuel consumption cost. Besides improving the toll collection infrastructure, the number of stops for various other purpose, such as documentation check and tax collection at state borders/check posts and on-road police intervention, should be minimized and the process of document checking and tax collection simplified to facilitate a smooth and seamless flow of goods across the country.
Editor's Picks »
- Ultratech gets CCI nod to acquire Century cement business
- S&P hits record high, equals longest-ever bull run
- Opinion | Disruption and innovation in the legal industry
- Lesson from devastation in Kerala: Investing in new knowledge for the future
- Nokia maker HMD aims to double India revenues in four-six months
- MakeMyTrip’s attempts to juggle between growth and profitability
- Kerala’s SoS may not have major impact on asset quality of banks
- Subsidy sharing concerns loom for state-run upstream oil firms
- L&T is better off rewarding investors given the poor investment avenues
- Coal India’s share sale plans eclipse bright outlook for FY19