World bank Logistics performance Index (LPI): Port and logistics boost
- June 15, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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World bank Logistics performance Index (LPI): Port and logistics boost
Subject : Economy
Section: Infrastructure
In News: World Bank has released the Logistic Performance Index (LPI) Report 2023.
Key Points:
- India has earned 38th rank in the overall LPI score (earlier 44th position in 2018)
- India’s has earned 22nd rank in the International Shipments Category (from the 44th position in 2018.)
- The improvement in the port and logistics performance can be attributed to improvement in parameters such as Turn Around Time (TAT) and dwell time (the time a vessel spends at a specific port or terminal), both of which have reduced considerably.
- The improvement is the result of investments made in the ports and upgradation of shipping infrastructure.
- PPP projects have helped through the increased operational efficiencies.
- There has been fourteen-fold increase in the use of renewable energy in Major Ports over the last eight years
- Government policies in the port and shipping that have helped enhance ‘Ease of Doing Business’‘, and take India towards achievement of objectives laid down in the Maritime India Vision, 2030. The policies are namely:
- Sagar Setu – National Logistic Portal – Marine– It is aSingle Window Digital Platform for all stakeholders including Cargo Services, Carrier Services, Banking and Financial Services and those related to regulatory and participating Government Agencies.
- Sagar Setu App– The application facilitates seamless movement of goods and services in the Ports
- Major Port Authorities Act, 2021 which grants greater autonomy to the major Ports thereby enhancing the flexibility in decision making
- Marine Aids to Navigation Act, 2021 provides for increased safety and efficiency in Vessel Traffic Services, Training and Certification at par with International standards. Similarly, the Indian Vessels Act, 2021 facilitates integrated vessel movement through our waterways, both inland and coastal, by bringing in uniformity in law and having standardised provisions across States.
- NICDC Logistics Data Services (NLDS) Limited applies radio frequency identification tags to containers and offers consignees end-to-end tracking of their supply chain.
- NLDS is a joint venture between the Government of India represented by National Industrial Corridor Development and Implementation Trust (NICDIT) and Japanese IT major NEC Corporation, with 50:50 equity participation.
- Comes under the Department of Industrial Policy and Promotion (DIPP)
- The Indian Ports Act, 1908 is being considered for repeal and to be replaced by a new act that is aligned with modern day shipping.
- Non shipping logistic initiatives that have improved performance:
- PM Gati Shakti National Master Plan for multimodal connectivity launched in 2021 to reduce logistics cost and boost the economy
- National Logistics Policy (NLP) launched in 2022 to ensure quick last-mile delivery, end transport-related challenges, save time and money of the manufacturing sector and ensure desired speed in the logistics sector.