DPIIT finalises model city logistics plans for Delhi, Bengaluru to enhance urban freight efficiency

This is crucial for reducing congestion, pollution and logistics costs while improving the overall quality of life in cities

New Delhi: The Department for Promotion of Industry and Internal Trade (DPIIT) has finalised model city logistics plans (CLPs) for Delhi and Bengaluru with an aim to improve urban freight efficiency and cut logistics costs, an official said on Wednesday.

Under the Indo-German technical cooperation, Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ’s) Green Freight Project supported the relevant state authorities in the preparation of the model CLPs and adopting international best practices.

This is crucial for reducing congestion, pollution and logistics costs while improving the overall quality of life in cities.

Additional Secretary in the DPIIT Rajeev Singh Thakur said that both Delhi and Karnataka governments have provided support for developing these plans.

“It is a work in progress. They have agreed to support. It is a model plan which can be used by these cities or any other city. It is a broad-based and theoretical plan to give a focus on logistics,” he told reporters here.

From experiences gained in preparation of CLPs for Delhi and Bengaluru, the suggestive guidelines for preparing CLPs for Indian cities were compiled for the purpose of enabling all states and city authorities in India to prepare a plan for efficient freight and logistics movement within the city.

According to the DPIIT, this will help advance the Central government’s agenda on ease of doing business and fulfil the country’s ambition of achieving carbon Net Zero by 2070.

The guideline is also intended for practitioners in cities and states to make the city logistics ecosystem efficient and sustainable.

The guideline, it said, provides a framework and methodological approach from the perspective of a city to tailor its vision, objectives and indicators to specific local needs and peculiar city characteristics, collect relevant data and analyse its freight distribution issues and choose appropriate infrastructure, policy measures and services in collaboration with other relevant actors and stakeholders.

This guideline is also considered a living document that will continue to evolve through the incorporation of feedback and input from stakeholders and DPIIT will extend its support to the willing state/UTs to prepare city logistics plans.

In 2022, India launched the National Logistics Policy which includes the support for the development of city-level logistics plans. This initiative aims to reduce logistics costs and improve the efficiency and sustainability of urban freight transport.

Several countries have adopted city logistics plans to improve the efficiency and sustainability of urban freight transport. Japan has been a pioneer in city logistics implementing consolidation centres and other innovative solutions to manage freight effectively in densely populated urban areas.

Many European countries, including Germany, France and the Netherlands, have developed comprehensive city logistics plans.

These plans often focus on reducing emissions, improving traffic flow and integrating logistics with urban mobility plans.

Brazilian cities like Sao Paulo and Rio De Janeiro have started to implement city logistics plans to tackle congestion and pollution issues.

These countries are leveraging CLPs to create more sustainable and efficient urban environments, addressing unique challenges posed by urban freight transport.

Urban freight and city logistics systems can be highly efficient if planned and managed holistically. First and last-mile freight movement in cities is largely responsible for high logistics costs in India’s supply chains.

Conventionally, policymakers have treated city logistics as a problem area and solutions have been driven often by ad-hoc planning.

This is because there is competition for road space as the city transport network and infrastructure are shared by both passenger and freight traffic; comprehensive mobility plan largely addresses issues and challenges of passenger movement with limited emphasis on urban freight and logistics; logistics is predominantly controlled and operated by private interests, and hence public authorities have limited role.

Therefore, a city logistics plan is crucial.

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