New SPV to develop last-mile port connectivity

The Shipping Ministry is looking at setting up a special purpose vehicle (SPV) for all major ports to provide last-mile rail connectivity. Public sector undertakings (PSUs) under the administrative control of the Indian Railways are being considered to develop the SPV, which will involve subscription-based equity from all the major ports. The proposal, in preliminary stages, is likely to be finalised within a couple of months. Using railway to move cargo increases efficiency and reduces cost, when compared with road transport. But last-mile connectivity has been an issue ports have been grappling with for a while. Cities and population have become impediments to port connectivity. Ministry officials and analysts pointed out that ports would benefit from this move, as it would improve the turnaround time and efficiency.