• The Ministry of Shipping December 6, 2018 accepted the enhancement of Rs 156 crore Freight Village in Varanasi, adjoining the Inland Waterways Terminal on River Ganga.
• The Varanasi Freight Village will be designed by the Inland Waterways Authority of India.
What is a Freight Village?
• A Freight Village is a specified space in which
facilities for different modes of transportation, distribution of goods and other logistics are offered in a synchronised way on a huge scale.
• Freight villages are cargo aggregators which provide many logistic selections to a shipper or cargo operator these as selection of rail-highway rail-waterway street-waterway.
• The principal perform of freight villages is administration and utilisation of numerous modes of transportation, synergising them and decongesting the current manner of transportation.
• The shipping and coordination of numerous freight connected pursuits beneath 1 roof ensures ease of performing organization and tends to make it attainable to realise superior truck potential.
Varanasi Freight Village
• The Varanasi freight village will be created more than a land area of about 100 acres, which will be acquired in two phases – 70 acres in initially period and 30 acres in next phase at a whole estimated expense of Rs 120 crores.
• A different pre-financial investment charge of Rs 45 crores is envisioned to be incurred on procurement of consultancy support and procedure of venture administration device.
• The Inland Waterways Authority of India will individual the land of the freight village, but component of it will be leased to logistics businesses and waterways similar manufacturing and buying and selling firms to established up their own enterprise.
• The freight village can possibly cater to a various cargo profile like containers, bulk and split-bulk cargo, liquid bulk and bagged cargo.
• It will provide as a cargo hub, and a centre for aggregation and value addition.
• It will also provide help to stimulate growth of a qualified logistics marketplace in Varanasi.
Why Varanasi was picked as a internet site for freight village?
• A pre-feasibility examine by the Globe Bank discovered Varanasi as a ideal web-site for the freight village.
• The city is situated strategically and is a focal issue in the logistics chain of Japanese Transport Corridor of India exactly where the Countrywide Waterways-1, Jap Committed Freight Corridor (EDFC), Countrywide Highway-7 and National Highway-2 move by means of.
• The quantity of targeted visitors on inland waterway to Varanasi is predicted to increase with the commissioning of the Inland Waterways Terminal (IWT) being built less than the Jal Marg Vikas challenge.
• The approximated volume of visitors for Varanasi multi modal terminal is 3.55 MMT by 2020 3.82 MMT by 2025 10.12 MMT by 2035.
• Vessels with potential of up to 2000 DWT would be capable to berth at the IWT multi modal terminal that will have the infrastructure services needed to deal with this predicted boost in the volume of cargo targeted visitors.
Mains Paper 3: Governance
Prelims level: Ministry of Shipping