Multi-Modal Logistics Parks in India

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Multi-Modal Logistics Parks (MMLPs) is a key policy initiative of the Government of India, led by National Highways Logistics Management Limited under Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI), to develop Multi-Modal Logistics Parks in hub-and-spoke model to improve the country's freight logistics sector by lowering overall freight costs and time, cutting warehousing costs, reducing vehicular pollution and congestion, improving the tracking and traceability of consignments through infrastructural, procedural, and information technology interventions.^[1][2]

Since, in 2017, India had comparatively high logistics costs, 13% of total price of goods compared with 8% in other major economies and average 72% higher cost than China of exporting/importing a container in India.^[3] To make India globally competitive by reducing these costs and time, the MoRTH is developing multi-modal logistics parks at selected locations in the country under its Logistics Efficiency Enhancement Program (LEEP).^[1][2]

MMLP is officially defined as a freight-handling facility with a minimum area of 100 acres (40.5 hectares), with various modes of transport access, mechanized warehouses, specialized storage solutions such as cold storage, facilities for mechanized material handling and inter-modal transfer container terminals, and bulk and break-bulk cargo terminals.^[4] Logistics parks will also provide value-added services such as customs clearance with bonded storage yards, quarantine zones, testing facilities, and warehousing management services. Provisions will also be made for late-stage manufacturing activities such as kitting and final assembly, grading, sorting, labelling and packaging activities, re-working, and returns management.^[3]

As of July 2021, 35 MMLPs has been identified by MoRTH. Among those Bangalore, Chennai, Guwahati and Nagpur are under implementation, and the rest are in pre-planning and DPR is yet to be prepared.^[5]