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Freight Smart Cities

Freight Smart Cities:

Commerce Ministry’s Logistics Division unveils plans for ‘Freight Smart Cities’ to improve the efficiency of urban freight and create an opportunity for reduction in the logistics costs.

  • Under the Freight Smart Cities initiative, city-level logistics committees would be formed.
  • These committees would have related government departments and agencies at the local level, state and from the reacted central ministries and agencies.
  • These would also include private sector from the logistics services and also users of logistics services.
  • These committees would co-create City Logistics Plans to implement performance improvement measures locally.
  • On the Freight smart city initiatives, the Logistics Division is working closely with GIZ (Germany) under Indo-German Development Cooperation, Rocky Mountain Institute (RMI) and RMI India.
  • This is all the more relevant as the demand for urban freight is expected to grow by 140 per cent over the next 10 years.
  • Final-mile freight movement in Indian cities is currently responsible for 50 per cent of total logistics costs in India’s growing e-commerce supply chains.

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