Logistics Ecosystem in Gujarat – Backed and Jacked by Gati Shakti NMP

Gujarat has been one of the consistently top-performing states on the Logistics Ease Across Different States (LEADS) ranking. It is also host to one of India’s thirteen major ports and many minor ones, along with having the second-highest number of ICDs (10) and cold storage (969) in the country. Being home to Prime Minister Narendra Modi – the visionary of the Gati Shakti National Master Plan – it has truly stood out in terms of recent developments in infrastructure. In this article, we take a look at how the state’s logistics ecosystem fared in the last two years.

When it comes to measuring the state-wise logistics efficiency in India, the Logistics Ease Across Different States (LEADS) ranking is one of the few trustworthy literature available. Having analyzed all three reports published since the ranking initiative was launched in 2018, I noticed a pattern of success. Success in the form of an efficient and effective logistics ecosystem running in a state.

Introducing the LEADS top performer – Gujarat.

Located in the western part of India, it is one of India’s major export hubs. This being the reason as well as the end target, the state has a well-developed logistics ecosystem that promotes economic growth. Gujarat’s logistics ecosystem fully leverages its strategic location and well-connected transportation infrastructure, including a vast network of roads, railways, airports, and ports that facilitate the movement of goods within the state and beyond it.

Kandla, Mundra, and Pipavav are the most busy and well-known ports situated in Gujarat and handle a significant amount of cargo movement in and out of the country. Following the thumb rule of logistics efficiency – multimodal transportation – the state’s ports are integrated with intricate rail and road networks, enabling seamless connectivity to the hinterland and neighboring states.

With its well-developed and highly functional logistics ecosystem, Gujarat plays a vital role in exercising the Gati Shakti National Master Plan across the country. And creating a mutual relationship between them are the various infrastructural developments and policy/regulatory changes that have been executed under the gamut of the Gati Shakti National Master Plan in the state.

Akash Bansal (Head – Logistics, OM Logistics) shares the role of Gati Shakti National Master Plan in enhancing the logistics ecosystem of the state. He says, “The impact is quite visible through the multiple projects running and growing the state economy, and the integration of different modes of transport like roads, railways, aviation, and ports. Coordination & synchronization between different departments have filled the gap and brought seamless connectivity that is helping in saving fuel, time, and money with rapid movements of cargo, goods, and people anywhere in the state. Overall, if the work goes on at the same pace in the coming years, definitely logistics challenges will be reduced to 20% with end-to-end connectivity.”

There are also some initiatives that work towards minimizing and recycling the waste generated, thereby stepping further towards a cleaner logistics ecosystem and society as a whole.

CONNECTIVITY

Gujarat has the perfect recipe for multimodal connectivity – the base principal on which the Gati Shakti National Master Plan has been designed. According to the LEADS Report 2022, Gujarat scored high in road infrastructure and leads in ‘Quality of Rail and Terminal infrastructure’ which also reflects in positive feedback from primary interactions, indicating that the state has one of the best terminal infrastructures across the country.

Ports: Several major ports in India, including Kandla, Mundra, and Pipavav, are the connectivity for both import and export activities, facilitating the movement of goods to and from various regions within India and across the globe.

Roads: The road network in Gujarat connects various areas within the state as well as to the neighboring states. The state government has invested in the development of expressways, national highways, and state highways to enhance connectivity and reduce travel times.

Railways: The state has a dense railway network, with major railway lines connecting Gujarat to different parts of the country. The Indian Railways along with the dedicated freight corridor routes plays a vital role in facilitating the movement of cargo to, from, and within the state.

Airports: Gujarat is home to the Sardar Vallabhbhai Patel International Airport in Ahmedabad, which is one of the busiest airports in the country. Air freight services are crucial for time-sensitive shipments and industries like textiles, couriers, chemicals, diamonds, and laboratory-grown diamonds, etc. use air cargo services extensively.

Inland Waterways: Gujarat is blessed with a long coastline and several rivers, making it suitable for the development of inland waterways. The state government, in collaboration with the central government, has initiated projects to harness the potential of inland water transport. The National Waterway 9 (NW-9) project on the River Ganga in Gujarat is being developed to connect Haldia (West Bengal) to Allahabad (Uttar Pradesh), providing an alternative mode of transportation for goods.


This is the abridged version of the Regional Story that was published in the July issue of Logistics Insider magazine. To read the complete story, click here.


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