Delhi, Mumbai to gain $18b per year by upgrading transport network

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Delhi and Mumbai stand to gain up to $17.8 billion a year as economic benefit by upgrading their transport networks which may otherwise be unable to cope with the anticipated massive rise in peak hour commuters by 2030, says a study.

According to the study, conducted by London based Credo for Siemens, an economic opportunity of $8 billion per year awaits Mumbai and $9.8 billion annually for Delhi if they improve transport capacities.

"Both cities are expected to see peak hour commuting numbers increase massively by 2030 and the current transportation networks will not be able to cope... Delhi and Mumbai stand to gain up to $17.8 billion per year by upgrading transportation networks," said the study unveiled by Siemens here today.

New live journey planning systems and clear transport development plans in both cities are set to make a big difference to travellers in the coming decades, it added.

The best transportation systems are the ones that move people quickly, easily and comfortably to their destination, said Roland Busch, CEO of Siemens Sector Infrastructure and Cities.

"For both cities (Delhi and Mumbai) investment in improving transport capacity should be the key priority. If they can do this, those potential economic benefits can be unblocked," said the study, 'The Mobility Opportunity'.

A wider look shows that if all 35 cities including the likes of Copenhagen (Denmark) and Santiago (Chile) implement "best in class" standards, they stand to gain an economic benefit of up to $238 billion annually by 2030.

Extrapolating to all comparably sized cities with a population of around 750,000 and greater, the study suggests an economic opportunity of a whopping $800 billion, it added.

"All cities can learn from the leading cities...In order to close the gap of their transportation networks' efficiency, reduce costs and increase productivity. Because the more efficient a city's transport network is, the more attractive is it to business and people," said Chris Molloy, Partner at consulting firm Credo.


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