To bring down the cost of logistics, the government would utilize waterways in the country to transport goods including fertiliser, cement and steel Union Minister, Nitin Gadkari said. Mr. Gadkari said this hailing the arrival of car carrier ship MV Dresdan with 500 cars at Cochin Port. He added that the effective utilization of this waterways system will help increase water transport in the country. He further said that the government want to diversify road traffic to water transport. Goods transportation through water costs barely 20 paise per km in comparison to Rs 1.5 a km through road and Re 1 per km through railways, he said. The logistics cost in India is 18 per cent, which is higher than China (8-10 per cent), Japan (10-12 per cent) and European Union (8-12 per cent), he noted. Recalling the recent transportation of Maruti cars from Varanasi to Assam through waterways, the Minister said per car, the cost could be reduced by Rs 3,000 to 4,000 as the transportation expense was very less. Kerala is a major consumption centre of cars with annual sales of about 1,50,000 to 1,80,000 units, which is highly significant in determining logistic patterns.
Image source: dutchwatersector.com