Tihi logistics park likely to cut Pithampur-Mumbai transport cost by 20%
The multi-modal logistics park in Tihi near the Pithampur industrial area will not only reduce the distance for export-bound goods transported to Mumbai port but will also reduce the carrying costs by 20%.indore Updated: Oct 28, 2016 16:51 IST
The multi-modal logistics park in Tihi near the Pithampur industrial area will not only reduce the distance for export-bound goods transported to Mumbai port but will also reduce the carrying costs by 20%.
The Container Corporation of India (CONCOR) is building a rail-linked mutli-modal logistics park in three phases. While the first phase was commissioned last week, the hub is expected to be fully operational by 2017-18 when it will also handle in-bound container traffic as well.
The logistics park will cater to industries from Indore, Ujjain and Dewas region. Apart from the logistics park, the government also plans a warehousing facility to cater to the storage requirement of agricultural and industrial cargo.
“Once the rail-linked logistics park gets fully developed at Tihi, the distance between Pithampur and Jawaharlal Nehru Port Trust, Mumbai will reduce from the existing 847 km to 807 km,” said a CONCOR official.
“As road transport will be made redundant, this will reduce the transportation cost by around 20% and give a competitive advantage to the trade and industry in the region,” he said.
“At present, Mumbai-bound containers move to Ratlam via road and then get transported by rail.”
Currently, the road-linked facility at Pithampur is handling more than 30,000 TEUs (standard size containers) every year, which can be increased to 40,000 TEUs. Given the expected growth in container movements, estimated demand is projected to be more than 100,000 TEUs by 2017-18.
There are four government-run inland container depots (ICD) in Madhya Pradesh at Pithampur in Indore, Ratlam, Mandideep in Bhopal and Malanpur in Gwalior. While the three have direct rail connectivity, ICD Pithampur, the oldest and the biggest depot, has no rail linkage at Pithampur.
Railway has undertaken construction of a new rail line between Indore to Dahod in Gujarat. The Indore-Tihi section of the railway line was commissioned last week. The facility will also have provision for creating silos for catering to bulk storage foodgrains and liquid cargo from and to Indore and nearby areas.
Under the first phase, a direct container train service has started from Pithampur. In the second phase, CONCOR will shift its ICD to Tihi, and in the third phase it will provide facility for both outbound and inbound containers.