Effect of new integrated transport and logistic policy on cost

The government will launch an integrated transport and logistics policy aimed at increasing the average speed of freight transportation on the highways network from the current speed of 20-25 km per hour to 40-50 km per hour and to reduce the logistics cost by almost half, road transport and highway minister Nitin Gadkari said. The plan includes construction of 50 economics corridors, 35 logistics parks and 10 intermodel stations at a cost of Rs.5 lakh crores. In the budget speech, the finance minister had said that a specific programme for development of multimodel transport facilities, will be drawn up and implemented. The plan, being spreadheaded by transport ministry, will bring together road, railway and urban planning to provide seamless movement of freight traffic across states. In short, logistics policy reduce the congesion on highways and the cost of transporters.