Logistics Key to Mining Competitiveness: Dr Saraswat

India's logistics cost for the mining and metals sector may be far closer to 8 per cent of GDP than the widely cited 14 per cent figure, though the sector’s underlying bottlenecks remain unchanged, Dr V K Saraswat, former member of NITI Aayog, said at the FICCI conference on Enhancing Competitiveness of Mining and Metals.

Dr Saraswat, however, cited that bulk freight bottlenecks, mining-specific evacuation gaps are still real and costly. He identified two structural weaknesses continuing to hold back the sector — inadequate first- and last-mile connectivity from mines situated in remote, forested or mountainous terrain, and continued over-dependence on road haulage, which he said could cost two to three times more per tonne-kilometre than rail for bulk commodities.

He set out a ten-point national strategy, including dedicated mineral freight corridors with end-to-end connectivity, wider use of conveyor systems and slurry pipelines, accelerated port mechanisation, rationalised logistics taxation, regional mineral logistics parks, expanded rail links to mining clusters and stronger digitalization across the value chain.

He further highlighted six emerging technologies poised to revolutionise operational efficiency - autonomous haul trucks and driverless trains, AI-based dispatch optimisation, drone-assisted surveying, robotics in material handling, digital twins for logistics networks for real-time simulation & decision-making, and satellite fleet monitoring integrated with 5G communications as the connectivity backbone for remote mining operations. He asserted that logistics must be recognised as a strategic determinant for mining & metals competitiveness.

Devendra Kumar, Additional Member–Traffic at the Railway Board, set out the ministry's end-to-end logistics push, disclosing that Container Corporation of India already operated end-to-end container services between Delhi and Kolkata via Agra and Kanpur, as well as parcel trains between Mumbai and Kolkata. He said that the railways had trials with clubbing two or three freight trains and soon two-kilometre-long trains already run elsewhere could run in India.

He further advocated that government policies and industry initiatives must be fundamentally citizen-centric in their design and delivery — measuring success not by infrastructure created or schemes launched, but by the tangible improvement in the quality of life and economic opportunity they generated.

A joint FICCI-Deloitte report, launched at the conference, found that India's freight tariffs are broadly competitive with international benchmarks but that fragmented logistics and heavy road reliance are eroding this advantage.

Anant Swarup, Secretary General of FICCI, opened proceedings by noting that coal, iron ore, steel, fertiliser, cement and foodgrain together account for the bulk of national freight movement. Kishore Kumar S, Chief Operating Officer, Hindustan Zinc, said overall national freight movement volumes would need to rise from around seven billion tonnes today to 20 billion tonnes by 2047 to support the Viksit Bharat goal.

Sanjay Singh, Former Secretary - Steel, and Director - Strategy & External Relations, Jindal Steel, said logistics costs had fallen towards single digits but sustainable logistics infrastructure is key for enhancing the competitiveness of our mines & plants. Anupam Misra, Chairman and Managing Director, Hindustan Copper, said haulage inside mines alone accounted for 40 to 60 per cent of operating costs, as Hindustan Copper works towards nearly tripling capacity to 12.2 million tonnes by 2030. Dr Pankaj Satija, Co-Chair, FICCI Mining Committee and Executive Vice President, JSW Group, gave the Vote of Thanks, highlighting on the importance of efficient logistics for competitive mining & metals sector.

The conference focussed on three key aspects of efficient logistics for mining & metals including, freight classes & structures, augmentation of logistics infrastructure such as first- and- last – mile connectivity and promoting usage of metals for development of port infrastructure, rail wagons, etc.