Everything You Need to Know About a Multi-Modal Logistics Park in India

A government programme called Multi-Modal Logistics Parks (MMLPs) aims to create these parks throughout the nation’s many logistics hubs. The National Highways Authority of India and National Highways Logistics Management Limited, both part of the Ministry of Road Transport and Highways (MoRTH), are in charge of the effort (NHAI).

To enhance the nation’s freight logistics industry, these MMLPs are being created using a hub-and-spoke network, which connects every location through a single intermediary point known as a hub.

The development of the MMLP is anticipated to have a major positive impact on the transportation industry.

These include decreased warehousing expenses, decreased traffic congestion and pollution, improved tracking and traceability of transit shipments, and lower overall freight prices. Through interventions in infrastructure, procedures, and information technology, all these are feasible in various ways. The Multi-Modal logistics park in India also offers auxiliary services, including storage, warehousing options, value-added services like custom clearances, and IT services. 

Design of Logistics Parks With Multiple Modes (MMLPS)

In October 2017, the Cabinet Committee on Economic Affairs (CCEA) gave permission to build Multi-Model Logistics Parks (MMLP) across the nation. These MMLPs, which are being implemented, are being built using the Design, Build, Finance, Operate, and Transfer (DBFOT) model of Public Private Partnership (PPP).

The majority of the projected MMPLs will be built through public-private partnerships (PPPs), according to the National Highways and Logistics Management (NHLML), an SPV that is completely owned by the National Highways Authority of India (NHAI). The funding strategy for the parks will be 50:50. A total of 35 multi-modal logistics parks with a capital budget of Rs 50,000 crore are planned for the country. 

Locations of Logistics Parks

The location of a logistics park has a significant impact on its success.

Given how closely related the logistics industry is to industrial manufacturing, logistics parks are frequently found in or next to industrial zones, however, this is not always the case.

Even if a transportation hub may be more advantageous than a specific industrial sector, logistics parks are best served by being close to both industrial and transportation resources. 

Advantages of MMLPS

The construction of MMLPs at key locations is envisioned as a crucial policy strategy to optimise logistics costs in India and boost its competitiveness, according to the Asian Development Bank (ADB).

1. The supply chain may develop more quickly and cross-functionally if MMLPs are developed in key locations across various geographies. The MMLPs are able to offer infrastructure to facilitate smooth multi-modal freight transfer;

(ii)Automated storage facilities and specialised storage options, such as cold storage;

(iii) Bulk and break-bulk cargo terminals, intermodal transfer container terminals, and automated material handling facilities;

(iv) value-added services such as testing facilities, quarantine zones, bonded storage yards, customs clearing, and warehousing management services; and

(v) activities involved in late-stage manufacturing, such as kitting and final assembly, grading, sorting, labelling, packaging tasks, reworking, and returns handling.

In addition, MMLPs may enhance the efficiency and effectiveness of container freight stations and inland container depots (ICDs).

Where are Logistics Parks Created Depending on the Environment and Infrastructure?

The greatest logistics real estate allows for scaling while offering access to the main forms of transportation, including land, sea, and air. For instance, an industrial area might appear like a good location for a logistics park since it’s next to a train line, but if it can’t support warehouse construction because it’s already too busy, it might not be.

All logistics parks won’t, of course, have access to every mode of transportation. The overall industrial development of the area or region may be another factor in the creation of a logistics park.

A logistics park may be strategically located in an area where data indicates rapid business expansion to support both existing and future supply chains. 

Why Choose a Logistics Park Close to an Industrial Area

Why would a logistics park be located close to an industrial area? Because of the infrastructure already in place and the accessibility to transportation, existing industrial districts can make excellent locations for logistics facilities. They enable businesses to be near their clients, partners, and suppliers.

A logistics complex that has grown into a park should not be thought of as only a warehouse. It also functions as a warehouse where freight can be processed from shipment through customs clearance.
If you are unable to find the perfect location for your warehouse, then the best option is to find a warehousing company and let them make a perfect warehouse in the location you prefer. But, before you make any decisions, make sure you follow a thorough research pattern and not choose anyone you see blooming on Google!