'Sagarmala project can bring down logistics costs'

Logistics costs in the country are quite high and the Sagarmala project will certainly help bring it down, according to Union Shipping Minister Nitin Gadkari.

“When compared with China and some European countries, logistics costs in India are quite high. In China, it is around 8-10%, while sometimes it is only 6%. In European countries, it is around 12%, while in India, it is about 18%,” Gadkari said, while speaking at the Maritime India Summit 2016.

“We hope to save $5-6 billion (Rs 30-35,000 crore) in logistics costs in the country through Sagarmala project,” Gadkari added.

India is planning investments of around Rs 1 lakh crore in port modernisation and new port development. Investments worth Rs 2 lakh crore is also planned to improve rail and road connectivity. Total investments to the tune of $30 billion are being planned in order to improve connectivity across the country.

Gadkari also evinced hope that the major ports across the country will improve their profitability going forward. “Twelve major ports across the country recorded profits of Rs 4,200 crore this year, an increase of Rs 400 crore as compared with the previous year. Next year, I hope that the profits increase by Rs 1,000 crore,” Gadkari said.

Asked on why Indian companies are not looking at manufacturing cruise ships in the country and buying them from outside the country, Gadkari said that cheaper costs is the only reason behind it. According to Shipping Secretary Rajive Kumar, the Sagarmala project will create many job opportunities for the upcoming talent in the shipping and port industry.