Freight

India’s freight logistics sector is expected to grow at a CAGR of 10.5% between 2019 and 2025 , and reach a valuation of USD 215 billion by 2020 . The sector will only increase in relevance to the economy as India continues to grow.

Initiatives such as ‘Make in India’ that encourage local manufacturing depend on the reliable transportation of goods in order to function smoothly. Logistics form the backbone of the agricultural sector. Improvement in cold chains can lead to more efficient farm-to-fork processes, reduce food waste and the consequent emissions, and improve farmer livelihoods. The emerging e-commerce sector also depends heavily on efficient logistics to function effectively.

Currently, freight transport in India is road-dominated—accounting for 59% of freight movement. Approximately 35% of freight demand is met by rail, 6% by waterways and less than 1% by air . The freight logistics sector accounts for nearly 7% of the total CO2 emissions in India. This figure will increase further as the demand for goods in the country increases. In order to curtail emissions from the freight sector, it essential to improve the efficiency of logistics and encourage a modal shift towards cleaner modes of transporting goods like rail, water and pipeline, which are not only more cost effective than road-based modes and also result in lower energy consumption and CO2 emissions.

Shakti Sustainable Energy Foundation works in the freight and logistics sector to enhance the efficiency of freight movement in ways that can significantly reduce its climate and energy impact.