Logistics cost in J&K 10 to 15% higher than national average

The first ever draft ‘Logistics Policy’ of Jammu and Kashmir has stressed on improving connectivity, pointing out that logistics cost in J&K is 10 to 15% higher than the national average.

The policy said that over 60% of the state terrain ismountainous and goods in transit are “subjected to the rugged topography” thatis made further problematic by weather vagaries.

   

“In the absence of adequate protection and roadsidefacilities the cost efficiency of goods is affected,” reads the draft policy.

The policy said there is prospect of high returns oninvestment in the underdeveloped infrastructure in Grade-A warehousing, ICD andCold Storage.

It calls for focus on developing efficient and automatedfacility to reduce logistic costs, providing modern storage and handlinginfrastructure with a rail linked freight aggregation and distribution toreduce transit time.

The government formulated the first ever ‘Logistics Policy’to provide cost effective and timely logistical support to the companies in abid to reduce operational costs and boost exports in the state.

The government has put the policy in the public domain andsought suggestions from the people for any improvement.  People can submit their suggestions andproposals by the end of June.

The draft reads: “Logistics Policy 2019-29 envisages toprovide the government, non-government and trade commerce agencies operating inthe state with professional, cost effective and timely logistics supportservices in the areas of procurement and supplies, transport operation andmanagement, to enable them to provide better service to the general public.”

In February 2017, the J&K government, Government of Dubaiand global trade enablers, DP-World, signed a MoU to explore opportunities todevelop trade infrastructure in the state.

It was then agreed to develop a multi-modal logistics parkand hub in Jammu, comprising Private Freight Terminal (PFT), Inland ContainerDepot (ICD), warehouses and specialized storage solutions with broad gauge railand national highway that will encourage inter-modal transfer of containers,bulk and break-bulk cargo, and later on in Kashmir.

Under the Logistics Policy, the government plans to developan inland container depot in Srinagar and a dry port in the state, which willeliminate the major impediment in export sector.  The Government as per the draft intends toimprove basic infrastructure and civic amenities at the major loading andunloading points, warehouses and overnight parking lots for the goods carriers.

The policy also recommends improving performance in respectof environmental protection in the delivery of services and providing a healthyand safe working environment to the people engaged in the field of logisticsindustry.

“Clearances required for setting up of logistic park to begiven through single window clearance system, identification of new land bankfor logistics parks,” it reads.

 The policy recommendsthat a special task force should also be constituted for ensuring an overallorderly development of logistics in the state.

“The task force shall be responsible for creation andimplementation of logistics master plan for the state with a dedicated road mapfor Pathankot-Jammu-Srinagar-Uri, National Highway. The task force shall beserviced by Industries and Commerce Department and shall be provided with astatutory backing,” the policy adds.

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