Lok Sabha Question No. 1853 (UNSTARRED), answered on 2016-07-28
Subject: Logistics Hub
Ministry: SHIPPING
Asked by: RAGHAV LAKHANPAL

- (a):Yes, Madam.
- (b):  A Memorandum of Understanding (MoU) has been signed between the Inland Waterways Authority of India (IWAI) and the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) on 19 th March, 2015. The objective of the MoU is to carry out various activities connected with and leading to setting up of multi-modal logistics  parks  at  locations  decided  by  IWAI.  Apart  from  Varanasi,  IWAI  will  be  setting  up  multi-modal terminals (MMTs) at Sahibganj (Jharkhand) and Haldia (West Bengal).
- (c): Work  order  for  construction  of  Varanasi  terminal  (Phase-I)  has  been  issued  and  contractor  has commenced  mobilization.  The  work  is  likely  to  be  completed  in  26  months  as  per  contractual  provisions. Feasibility  study  prepared  by  the  consultant  has  been  reviewed  by  DFCCIL  and  forwarded  to  North  Central Railway (NCR) for in principle approval.   In Sahibganj and Haldia land for MMT has been acquired by IWAI.

(d):The advantages in terms of efficiency, cost-effectiveness in multi-modal terminal (MMT)/logistics hubs are quick trans-shipment, better handling and faster movement of cargo. This will ultimately lead to reduction in end to end logistics cost, shorter turnaround time (TAT) and efficient utilization of resources.

Few benefits of development of multi-modal terminal with DFCCIL Corridor connectivity are as under:-

- (i)    Development cost of IWT Terminal is much lower than rail and road.
- (ii) Reduces transportation losses.
- (iii) Less fuel consumption.
- (iv) Less CO2 emission.
- (v) Less Land requirement.
- (vi) Safe mode to transport hazardous and over dimensional cargo.
- (vii) Reduces pressure on road and rail.
- (viii) Reduces congestion and accidents on road.

The direct rail connectivity with Dedicated Freight Corridor (DFC) network would facilitate direct reception and dispatch of railway rakes in the port areas. The infrastructure proposed would also have capabilities of handling raw and finished products. Main cargo traffic proposed to be handled through the terminal are fertilizers, food grains & flour, cement, stone chips & sand, edible oil, local handloom silk products and over-dimensional cargo etc.

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## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA UNSTARRED QUESTION NO. 1853 th

## TO BE ANSWERED ON 28 JULY, 2016

## LOGISTICS HUB

## 1853. SHRI RAGHAV LAKHANPAL:

## Will the Minister of SHIPPING be pleased to state:

## पोतप�रवहनमंत्

- (a) whether any Memorandum of Understanding (MoU) has been signed between the Inland Waterways Authority of India (IWAI) and the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) to create logistics hubs with rail connectivity at various locations including Varanasi on national waterways;
- (b) if so, the details and the objectives thereof along with the locations identified for such logistics hubs;
- (c) the present status of work thereon, location-wise including Varanasi; and
- (d) the advantage in terms of efficiency, cost-effectiveness, cargo transportation etc. likely to accrue as a result thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF SHIPPING (SHRI PON. RADHAKRISHNAN)