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The Indian logistics industry is facing multiple challenges including a lack of infrastructure, higher operational costs, and so on. The government of India is taking several steps to improve logistics efficiency in the country. One such initiative is the development of multi-modal logistics parks at strategic locations.

Logistics

This article explains the initiative of multi-modal logistics parks in detail.

What is a multi-modal logistics park?

Multi-modal logistics park also known as (MMLPs) is one of the policy initiatives by the government of India. As the name suggests the logistics parks will enable multi-modal transport including road, rail, air and waterways. Additionally, these multi-modal logistics parks will be established in a hub-and-spoke model.

The hub will be established on the outskirts of the main city and will feature connectivity through port, railway, airport and road. The spokes or smaller distribution hubs will be established within the city boundaries and will be connected to the main hub. For example, the Mumbai logistics park will be connected to the smaller logistics/ distribution hubs will be located in the Mumbai suburbs, Thane, Navi Mumbai, etc.

This initiative is steered by the Ministry of Road Transport & Highways. The development of multi-modal parks is done under the PM Gati Shakti Yojana, which aims at the wholistic development of infrastructure in the country.

Key functions of multi-modal logistics parks

Here are five key functions of multi-modal logistics parks.

  • Creating multi-modal freight transport
  • Enabling integrated storage and warehousing
  • Enabling freight aggregation
  • Having information technology support, and
  • Offering value-added services

Benefits of multi-modal logistics parks

The following are the several advantages of multi-modal logistics parks.

Connectivity

Main multi-modal logistics parks are designed to be well-connected to logistics ports, jetties and airports, while they are also connected to smaller logistics hubs that are located within the city boundaries. As a result, freight movement will be smoother and easier.

Presence of required facilities

The hub multi-modal logistics park houses facilities such as warehousing, truck parking, packaging and labeling units, petrol pumps and so on.

Improves efficiency

The hub-and-spoke model improves the efficiency of overall logistics as it is supported by better connectivity and required facilities. Facilities such truck parking, distribution centres, cross-docking units, packaging, etc., improve overall efficiency of the logistics sector in India.

Cost effectivity

The multi-modal logistics parks intend to optimise the use of inland waterways. It only improves efficiency but also brings cost effectiveness.

Reduction of carbon emissions

Freight movement by waterways and railways reduces stress on road transportation and also minimises carbon emissions.

Reduction in road congestion

The use of bigger sized trucks and inland waterways reduces stress on the road transport thereby reducing road congestion.

List of planned multi-modal parks

Here is a list of planned multi-modal logistics parks in India.

Location State
Ambala Haryana
Bengaluru Karnataka
Bhatinda Punjab
Bhopal Madhya Pradesh
Bidkin Maharashtra
Bikaner Rajasthan
Chennai Tamil Nadu
Coimbatore Tamil Nadu
Delhi-NCR Delhi-NCR
Dighi Maharashtra
Gorakhpur Uttar Pradesh
Haridwar Uttarakhand
Hisar Haryana
Hyderabad Telangana
Indore Madhya Pradesh
Jaipur Rajasthan
Jammu Jammu and Kashmir
Jodhpur Rajasthan
Jogighopa Assam
Kandla Gujarat
Kanpur Uttar Pradesh
Kochi Kerala
Kolkata West Bengal
Kota Rajasthan
Mumbai Maharashtra
Nagpur Maharashtra
Nashik Maharashtra
Panaji Goa
Patna Bihar
Pune Maharashtra
Raipur Chhattisgarh
Rajkot Gujarat
Ranchi Jharkhand
Sangrur Punjab
Siliguri West Bengal
Solan Himachal Pradesh
Sundergarh Odisha
Surat Gujarat
Tuticorin Tamil Nadu
Udaipur Tripura
Valsad Gujarat
Vijayawada Andhra Pradesh
Visakhapatnam Andhra Pradesh

 

Also read: Single logistics law: New law for logistics, check impacts

The first multi-modal logistics park in India

Construction of the first multi-modal logistics park in India is underway at Jogighopa, Assam. The jetty of MMLP is expected to be ready by the end of 2023. This multi-modal logistics park will be well connected via road, rail, air and waterways. Additionally, it will be well-equipped with facilities such as warehouses, cold storage, truck parking, custom clearance, etc. Like a Transport Nagar, it will also house facilities including a workshop, petrol pump, lodging and boarding facilities, etc.

Need for multi-modal logistics parks

  • Currently, the cost of logistics is around 14% of the country’s GDP. With the help of initiatives such as multi-modal logistics parks, Bharatmala, Sagarmala, National Logistics Policy, etc., the government plans to bring it down to 9%.
  • Currently, freight movement in India is heavily dependent on road transport, which can be an expensive alternative in many cases. Also, poor-quality roads lead to shipping damages, while road congestion causes shipping delays.
  • Some of the other challenges include capacity constraints in railways and ports. Moreover, urban roads are congested.

All the challenges mentioned above can be resolved with multi-modal logistics parks as the initiative aims at developing infrastructure, reducing cost of logistics and improving logistics efficiency.

Logistics

Other highlights of multi-modal logistics parks

  • Most multi-modal logistics parks will be built through private-public partnerships (PPP) on Design, Build, Finance, Operate, and Transfer (DBFOT) model.
  • In order to achieve a quick turnaround in building multi-modal logistics parks, a tripartite agreement has been signed under the Bharatmala Pariyojna. The involved three parties are the Inland Waterways Authority of India (IWAI), National Highways Logistics Management Limited (NHLML), and Rail Vikas Nigam Limited.
  • The multi-modal logistics parks initiative is supported by other logistics related schemes such as Sagarmala, Bharatmala, UDAN, development of economic zones and corridors, etc.

Conclusion

Multi-modal logistics parks aim at creating much needed infrastructure for the logistics industry while improving efficiency and reducing the cost of logistics. However, increasing the cost of fuel is yet another challenge that the logistics industry is facing that needs to be dealt with.

Swati Deshpande

Swati is a passionate content writer with 6 years of experience crafting content for the business and manufacturing sectors, and helping MSMEs (Micro, Small and Medium Enterprises) navigate complexities in steel procurement, and business services. Her clear and informative writing empowers MSMEs to make informed decisions and thrive in the competitive landscape.