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Sagarmala project to save Rs 350bn to Rs400bn logistics cost by 2025; raw materials and finished products to be cheaper by 60-80%

Sagarmala, the ambitious programme for 'Port-led development' in the country is all set to change the logistics sector performance by optimizing India's logistics modal mix. The flagship programme by the Ministry of Shipping will help in reducing the logistics cost for both domestic and EXIM cargo with optimized infrastructure investment. An overall cost savings of INR 35,000 to 40,000 Crore per annum by 2025 is estimated from the same.

According to a study conducted under the Sagarmala programme, there lies a significant potential for moving raw materials and finished products using coastal shipping and inland waterways which is 60-80% cheaper than road or rail transport. Although the share of coastal shipping and inland waterways in the country's modal mix remains low, an emphasis on coastal shipping to complement road and rail transport can lead to overall logistic cost savings.

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