Transforming India’s Logistics Landscape: The Multi-Modal Logistics Parks Initiative- India’s rapid economic growth has necessitated a corresponding expansion of its logistics sector. Efficient and cost-effective logistics are crucial for a nation’s economic competitiveness, and India has recognized the need to improve its logistics infrastructure.
In response to these challenges, the Government of India, under the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI), launched the Multi-Modal Logistics Parks (MMLPs) initiative.
This ambitious project aims to revolutionize India’s freight logistics sector by enhancing efficiency, reducing costs, and promoting sustainable practices.
What is Multi-Modal Logistics Parks (MMLPs)
Multi-Modal Logistics Parks (MMLPs) are specialized infrastructure facilities designed to streamline and optimize the movement of goods and cargo through various modes of transportation. These logistics parks serve as central hubs that integrate multiple modes of transport, including road, rail, waterways, and air, to enhance the efficiency and effectiveness of freight transportation and logistics operations.
MMLPs typically have the following key features:
- Strategic Location: They are strategically located at key transportation junctions to facilitate the seamless transfer of cargo between different modes of transport.
- Multi-Modal Connectivity: MMLPs provide connectivity to various transportation modes, such as roadways, railways, ports, and inland waterways, allowing for flexible and efficient cargo movement.
- Warehousing Facilities: These logistics parks often include modern and mechanized warehouses with specialized storage solutions, including cold storage facilities for perishable goods.
- Cargo Handling Infrastructure: MMLPs are equipped with mechanized material handling equipment and container terminals to expedite cargo loading and unloading processes.
- Value-Added Services: They offer value-added services such as customs clearance, quarantine zones, testing facilities, and warehousing management services.
- Information Technology Integration: MMLPs leverage advanced information technology systems to track and trace consignments, improve transparency, and enhance overall supply chain management.
- Sustainability Initiatives: Many MMLPs incorporate environmentally friendly practices to reduce vehicular pollution and congestion, contributing to sustainable logistics operations.
The establishment of Multi-Modal Logistics Parks is a key policy initiative in India aimed at reducing logistics costs, improving supply chain efficiency, and promoting sustainable transportation practices
The Need for MMLPs:
India has long grappled with high logistics costs, which account for a significant portion of the total price of goods. In 2017, logistics costs in India stood at 13% of the total price of goods, compared to 8% in other major economies. Additionally, the cost of exporting/importing containers in India was on average 72% higher than in China. These high logistics costs were attributed to various factors, including an unfavorable modal mix, inefficient fleet management, underdeveloped material handling infrastructure, limited road infrastructure, and regulatory bottlenecks.
Key Objectives of MMLPs:
The MMLP initiative seeks to address these challenges through the development of freight-handling facilities with a minimum area of 100 acres. These logistics parks are designed to offer various modes of transport access, mechanized warehouses, specialized storage solutions, and inter-modal transfer container terminals. Some of the key objectives and functions of MMLPs include:
- Freight Aggregation and Distribution: MMLPs act as hubs for consolidating and distributing freight efficiently, reducing the reliance on road transport.
- Multi-Modal Freight Transport: These parks provide access to multiple modes of transportation, including road, rail, and waterways, facilitating seamless cargo movement.
- Integrated Storage and Warehousing: Mechanized warehouses and storage facilities, including cold storage, are available to cater to diverse storage needs.
- Information Technology Support: MMLPs leverage technology to improve tracking, traceability, and transparency in the logistics chain.
- Value-Added Services: Value-added services like customs clearance, quarantine zones, testing facilities, and warehousing management services are offered.
Progress and Implementation:
As of July 2021, MoRTH had identified 35 MMLPs across India. While some, like those in Bangalore, Chennai, Guwahati, and Nagpur, are under active implementation, others are in the pre-planning stage. These logistics parks are typically developed through public-private partnerships, with state governments providing the necessary land.
Impact on India’s Logistics Sector: The MMLP initiative is expected to have a transformative impact on India’s logistics sector. By improving the modal mix, enhancing fleet efficiency, and investing in modern material handling infrastructure, MMLPs are set to significantly reduce logistics costs. As a result, India aims to become globally competitive and boost its ranking in logistics performance indices.
List of Multi-Modal Logistics Parks (MMLPs) in India:
- Bangalore, Karnataka
- Chennai, Tamil Nadu
- Guwahati, Assam
- Nagpur, Maharashtra
- Vijayawada, Andhra Pradesh
- Visakhapatnam, Andhra Pradesh
- Patna, Bihar
- Raipur, Chhattisgarh
- Delhi-NCR (National Capital Region)
- Kandla, Gujarat
- Rajkot, Gujarat
- Port of Pipavav, Gujarat
- Surat, Gujarat
- Valsad, Gujarat
- Ambala, Haryana
- Hisar, Haryana
- Solan, Himachal Pradesh
- Jammu, Jammu and Kashmir
- Bangalore, Karnataka
- Kochi, Kerala
- Bhatinda, Punjab
- Sangrur, Punjab
- Indore, Madhya Pradesh
- Bhopal, Madhya Pradesh
- Mumbai Dighi Port, Maharashtra
- Nagpur, Maharashtra
- Nashik, Maharashtra
- Panaji, Goa
- Pune, Maharashtra
- Sangli, Maharashtra
- Sundergarh, Odisha
- Jaipur, Rajasthan
- Kota, Rajasthan
- Chennai, Tamil Nadu
- Coimbatore, Tamil Nadu
- Hyderabad, Telangana
- Kolkata, West Bengal
This blog post explores the concept of Multi-Modal Logistics Parks (MMLPs) in India and provides a comprehensive list of MMLPs across the country.
The Multi-Modal Logistics Parks initiative is a testament to India’s commitment to modernizing its logistics sector. By addressing key challenges, reducing costs, and improving efficiency, these logistics parks are poised to play a pivotal role in India’s economic growth story. As more MMLPs are developed and operationalized, we can expect to see a substantial improvement in India’s logistics landscape, making the country a major logistics hub in the coming years.