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Jeet B Bhayani (SEBI RA)

14th Jan · SEBI-Registered Analyst

The Government of India has highlighted the importance of Gati Shakti Multi-Modal Cargo Terminals (GCTs) as a vital element in its strategy for enhancing India's logistics framework. These cargo terminals are strategically positioned to combine various transport modes, such as road, rail, and inland waterways, to enable the smooth flow of goods, lower logistics expenses, and improve overall operational efficiency within supply chains. Through cargo consolidation, alleviating congestion at crucial transport points, and accelerating freight movement, GCTs enhance turnaround times for logistics operators and freight service providers. In general, the GCT initiative supports the nation's long-term goals of optimizing logistics, shifting modes from road to more efficient transport options, and large-scale modernization of infrastructure to enhance national competitiveness. GCTs aim to enhance intermodal connectivity by linking with current infrastructure like ports, freight railway terminals, and industrial hubs, which will decrease reliance on road transport and reduce related carbon emissions. The Gati Shakti initiative aims for these terminals to enhance the current infrastructure by boosting first-mile and last-mile connectivity, resolving persistent obstacles in cargo transport, and promoting increased involvement from the private sector in cargo handling, warehousing, and value-added logistics services. The establishment of GCTs corresponds with the Government’s goal of improving the business environment in the logistics sector by lowering transaction costs for companies, enhancing supply chain dependability, and encouraging equitable regional economic development.

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