Union Road Transport and Highways Minister Nitin Gadkari on Tuesday expressed the need to bring down the logistics cost in the country. He said that the government aims to bring it down to single digit i.e. nine per cent by the end of 2024, which will give a boost to exports.
He also told the annual session of industry body Assocham here that the 6.5-km Z-bend tunnel on the Srinagar-Leh highway would be inaugurated next month. Also Asia’s largest tunnel Zojila is expected to be completed in 2024.
Gadkari said, “The high cost of logistics is a big challenge before the industry and business of the country. Now it is 16 percent. We have set a target to bring it down to nine per cent by the end of 2024.
He said that while the logistics cost in China is eight per cent, it is 12 per cent in the US and the European Union. Gadkari said, “If we can bring down the logistics cost to nine per cent, our exports will increase by 1.5 times.”
To achieve this, the government is focusing on improving both roadways and railways, he said. We are building green highways and industrial corridors with a focus on reducing the distance between major cities and centres.
Referring to some highway projects, Gadkari said, “After the completion of the Delhi-Mumbai Expressway, people can reach Mumbai from Delhi in just 12 hours. On the other hand, the journey from Nagpur to Mumbai can be done in five hours and from Nagpur to Pune in six hours. This will help in reducing the logistics cost.
He also said, “We are making Z-bend tunnel in Sonamarg. This tunnel will be inaugurated in April. ”The 6.5 km long Z-bend tunnel is between Sonamarg and Gagangir on the Srinagar-Leh highway. This tunnel will provide all-weather connectivity facility.
The minister said, “We are making Asia’s biggest tunnel in Zojila. 65 to 70 percent work of Zojila tunnel has been completed and it will be inaugurated in 2024.
The total 13.5 kilometer long Zojila tunnel is being constructed at a cost of Rs 4,900 crore. It will connect Srinagar to Leh. This will provide all-weather connectivity. At present, the road remains closed for vehicular traffic due to heavy snowfall after the onset of winter. The original deadline for completion of the 11,000 ft high project is December, 2026. Gadkari also said that his ministry is working on nine tunnels between Jammu and Srinagar.
