Multi-modal Logistics Parks (MMLP) in India: Check Benefits

 A multi-modal logistic park is a strategically placed infrastructure facility, designed to optimise the movement of goods across various transportation modes. It is a key policy initiative of the Government of India, which plans to develop more than thirty-five MMLPs across India. The idea is to develop large logistical parks outside the cities and small parks within city limits facilitating a hub-and-spoke model of freight movement rather than point-to-point movement.  Also, logistics costs in India are higher than that of developed countries. Thus it becomes the need of the hour to develop world-class logistics parks. Let us look at some benefits of a multi-modal logistics park in India.  

   

1. Global trade facilitation - 

An MMLP  is officially defined as a freight-handling facility with a minimum area of 100 acres. The facility must provide various modes of transport access, mechanized warehouses, specialized storage solutions such as cold storage, and bulk and break-bulk cargo terminals. Such global trade 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 grading, sorting, labeling, packaging activities, re-working, and returns management. Developing 35 of these in the country will significantly boost the Indian economy for a competitive edge in the global marketplace.

2. Improved connectivity and cost efficiency - 

Logistics costs in India are 13-14% of the total value of goods compared to developed nations which sit comfortably at 8-9%. A comparison across India and the USA also highlights the difference in road freight cost which in India is INR 1.9 per ton per  km2, almost double that of the USA. In addition, the average speed of freight vehicles on Indian roads is about 25 - 30 km/hr(3), which is 50 – 60% lower as compared to the USA, adding to the freight cost. Thus it is evident that friction in transportation is significantly reducing the overall reach and profits of Indian businesses.  It is proposed to develop logistics parks in 15 cities with the highest freight movement, covering more than 40% of the total road freight movement in India in Phase I of the program.

   

3. Job creation and skill development -

 Automation is posed to reduce manual labour and create more jobs in the future. Thus, establishing distribution centers and transportation terminals within a multimodal logistics park generates much-needed blue-collar employment opportunities in logistics and related industries. Additionally, the need for skilled professionals to manage advanced technologies contributes significantly to skill development in the workforce. 

In summary, developing a multi-modal logistics park in India is a strategic initiative with wide-ranging benefits. From enhancing connectivity and cost efficiency to promoting sustainability and global trade, these logistics parks play a crucial role. They help in transforming India's logistics landscape and positioning the country as a key player in the global supply chain. 

 When it comes to logistical parks and warehouse construction, Pragati Infra Solutions Limited is the leading player and management in India. They are giants in the industry and employ the latest technology and procedures to deliver the promised product on time. Check out the website of PISL if you have a detailed query about logistical park development in India and get in touch with their team to find a relationship that is valuable to both your business and the nation.