Revamping India's Mining Logistics: A Call to Action

India's logistics costs for the mining sector, potentially lower than thought, face challenges due to poor connectivity and road reliance. Solutions like rail shifts and new tech adoption are urged to improve competitiveness, as highlighted in a FICCI conference featuring insights from V K Saraswat and Railway Board's Devendra Kumar.

India's logistics expenditure for the mining and metals sector might be less than popular estimates suggest, yet inadequate last-mile connectivity and heavy reliance on road transport still hinder its competitiveness, according to former NITI Aayog member V K Saraswat at a FICCI conference.

Saraswat argued logistics costs could be nearer to 8% of GDP instead of the widely quoted 14%. Nonetheless, unresolved structural challenges such as bulk freight bottlenecks and mining-specific evacuation gaps pose significant issues, emphasizing the lack of connectivity and over-dependence on roads.

The FICCI press release noted road haulage's excessive costs compared to rail, underlining the necessity to shift more mineral freight to rail and other efficient modes. Saraswat suggested dedicated mineral freight corridors, enhanced use of conveyor systems and slurry pipelines, and port mechanisation as part of a strategy to bolster logistics efficiency.

Emerging technologies like autonomous haul trucks, AI-based dispatch, and 5G-enabled satellite monitoring could revolutionize logistics. Meanwhile, a joint FICCI-Deloitte study found India's freight tariffs competitive globally, yet fragmented logistics and road reliance dampen these advantages.

Railway Board's Devendra Kumar highlighted Indian Railways' efforts to improve freight logistics, testing operational innovations, including running trains of lengths seen elsewhere globally. The conference served as a platform for policymakers and industry leaders to explore better freight management, connectivities, and infrastructure enhancements for the sector's growth.