JAMMU: Minister for Finance Haseeb A Drabu on Monday said the proposed Dry Ports to be established by the Dubai Ports World and the J&K government through joint venture at Jammu and Srinagar will “immensely improve the quality and structure of the local economy”.
Drabu, on behalf of J&K government, on Sunday signed an MoU in Abu Dhabi with Dubai Ports Chairman & CEO Sultan Ahmed Bin Sulayem in presence of Indian the Prime Minister Narendra Modi and the Crown Prince of Abu Dhabi Mohammed bin Zayed Al Nahyan for setting up maiden Multi Modal Logistics Parks in J&K through Foreign Direct Investment (FDI), an official handout read.
“The proposed Multi Modal Logistics Parks (Dry Ports) will facilitate faster movement of local produce to the processing centres and the markets outside. This will raise the income of farmers, industrialists, traders and businessmen and create a large number of jobs,” the handout quoted Drabu as speaking to media-persons on his arrival from Dubai here.
The finance minister said that the Multi-Modal Logistic Park, as the name suggests, is one centralised place for all types of transportation activities and value added services needed by exporters and local traders for shipping their goods.
“It also works as an interlinking point for all modes of transport at one specific place,” he said.
The Dubai Ports team is already here to formally start work on the project in consultation with the state’s Industries and Commerce Department, the handout read.
“It is heartening to note that the state government has already started receiving business enquiries from various multinational companies in this regard,” Drabu said.
In the first phase, an investment of Rs 1500 crore would be made by the Dubai Ports World in the multi-modal logistics parks (dry port) which would swell upto Rs 5000 crore over the next 5 years, it further read.
The finance minister said the proposed inland logistic parks to be established at Samba in Jammu and Ompora in Kashmir would include warehouses and specialised storage solutions including ca stores and cold storage chains for transportation of agriculture, horticulture and handicraft products and other trade-able goods from J&K directly to the markets worldwide bringing down the transportation costs substantially.
Drabu said it would not only bring down the transportation costs of goods, but also increase their market accessibility and transform the abysmal scenario wherein logistics accounts for about 18% of the total product cost in the State, as against 8-12% in other countries, read the handout.
“These Logistic Parks would immensely improve efficiency in freight movement bringing down the transportation costs by 20 to 25 percent and giving major flip top the local economy,” he said.