With more than 63 lakh kilometers of roads, India has the second-largest road network in the world, consisting of national highways, expressways, state highways, and district roads. Yet our logistics network is considered inefficient, infringed, and inconsistent with other countries. Recognising several loopholes in the system, India’s government proposes to improve the country’s logistics through several schemes and initiatives.
One such initiative is the inception of Multi-Modal Logistics Parks (MMLPs). In line with the vision of seamless connectivity infrastructure laid under PM Gati Shakti Yojna, the Ministry of Road Transport & Highways conceptualised MMLPs at 35 strategic locations nationwide. These MMLPs will cater to more than 50% of the road freight movement, enabling seamless transportation of goods.
Keep reading this blog if you want to dive deep into MMLPs and know how they play a pivotal role in reshaping India’s logistics landscape and how they stand to be the catalysts propelling the eCommerce sector to unprecedented heights.
The Emergence of Multi-Modal Logistics Parks MMLPs in India
The genesis of Multi-Modal Logistics Parks (MMLPs) in India is an intriguing narrative of strategic planning, economic foresight, and a response to the rising needs of a rapidly modernising nation. Historically, although robust, India’s logistics sector has faced significant challenges. A complex web of inefficiencies, high costs, and infrastructural constraints has long impeded the seamless movement of goods across the country. The cost of logistics in India, hovering around 13-14% of its GDP, starkly contrasts with the global average of 7-8%, underscoring an urgent need for an overhaul.
The Indian government, recognising the critical role of efficient logistics in national development, has initiated several ambitious projects. Key projects among these are the PM GatiShakti National Master Plan and The National Logistics Policy 2022, a visionary initiative to augment India’s logistics infrastructure through a multi-modal approach. At the forefront of these initiatives, the National Highways Logistics Management Ltd (NHLML) is bringing the MMLP vision to life. It spearheads the development of these logistics parks, ensuring they are equipped with state-of-the-art facilities and technologies. These parks will work on the hub-and-spoke model, where a main hub will be established on the city’s outskirts, connected with ports, airports, railways, and roads. whereas different smaller distribution hubs (spokes) will be strategically located within the city borders, connected to the main hub, facilitating seamless inter-modal transfers.
For example, the Bengaluru Multi-Modal Logistics Park (MMLP) is a standout project in India’s logistics landscape, epitomising innovation and strategic foresight. This MMLP is sprawling across a massive 400-acre area at Muddelinganahalli in Bengaluru’s rural outskirts showcases an impressive array of features designed to streamline logistics operations. Its strategic location, situated adjacent to the Karnataka Industrial Area Development Board (KIADB) industrial zone, is a key advantage. This positioning is critical, as it enables easy access to major transportation routes like the NH 648 and the Satellite Town Ring Road while also conveniently located 58 km from Bengaluru Airport and 48 km from the city’s railway station.
Bengaluru MMLP’s first phase, expected to be operational within two years, lays the groundwork for a logistics hub capable of handling an estimated 30 million metric tonnes of cargo over its 45-year concession period.
Other Significant MMLP Projects Across India
The initiative to develop MMLPs extends beyond Bengaluru, with several other significant projects underway across India:
Assam’s Jogighopa MMLP: This MMLP is strategically positioned to boost trade activities in the Northeastern states. Located on the banks of the Brahmaputra River, it integrates riverine transport with road and rail, enhancing the region’s connectivity. With a focus on utilising inland waterways, Jogighopa MMLP is set to revolutionise logistics in the northeastern corridor of India.
Nagpur MMLP: Situated in Maharashtra, the Nagpur MMLP stands out for its central location in India. This strategic positioning makes it a pivotal hub for pan-India logistics operations, facilitating efficient transportation across all directions. With robust road and rail connectivity, it is poised to become a crucial node in the country’s logistics network.
Chennai MMLP: This park capitalises on its proximity to one of India’s major ports, offering seamless integration of maritime transport with other modes. The Chennai MMLP exemplifies the potential of coastal logistics parks in enhancing India’s maritime trade efficiency.
Mumbai MMLP: As part of the Bharatmala project, the Mumbai MMLP leverages the city’s status as an economic powerhouse. It integrates with Mumbai’s extensive port infrastructure, reinforcing the city’s role as a key maritime and logistics centre.
Key Features of Multi-Modal Logistics Parks MMLPs
Comprehensive Infrastructure
Multi-Modal Logistics Parks (MMLPs) in India represent a leap in logistics infrastructure, setting a new benchmark in scale and scope. Envision a vast expanse, typically spanning over 100 acres, meticulously crafted to serve as a convergence point for diverse modes of transportation. These parks will integrate road, rail, air, and waterways, creating a seamless network. The sheer size of these parks allows for the accommodation of large-scale operations, making them pivotal hubs in the national logistics network.
Advanced Warehousing Solutions
The MMLPs will have in-house advanced warehousing solutions, equipped with cutting-edge technology like automated storage and retrieval systems, enabling efficient handling of a wide range of goods. Specialised solutions such as cold storage units and container terminals address specific storage requirements, catering to pharmaceuticals, perishable goods, and electronics sectors. This level of Advanced Warehousing mechanisation and specialisation plays a pivotal role in streamlining the supply chain, reducing wastage, and ensuring that goods are stored under optimal conditions.
Intermodal Freight Transportation
The MMLPs feature the capacity for intermodal freight transportation. This allows for a smooth cargo transition between different transportation modes – from ship to rail or truck to air. By leveraging different transportation modes based on cost, speed, and destination requirements, MMLPs optimise freight movement. This intermodal capability is a game-changer in logistics, offering flexibility and efficiency.
Value-Added Services
More than just transit points, MMLPs are comprehensive logistics solutions offering a plethora of value-added services. These include customs clearance facilities, which expedite the often-tedious process of moving goods across borders. Quarantine zones and state-of-the-art testing facilities ensure that goods meet regulatory standards and are safe for distribution. These additional services streamline various logistical processes, significantly enhancing the efficiency of different supply chain models. and reducing the turnaround time for businesses.
Technological Integration
Technology is the backbone of MMLPs, driving their operational efficiency. Advanced IT support systems and tracking technologies integration are crucial for maintaining the transparency of the supply chain, providing stakeholders with up-to-date information on their shipments. Moreover, deploying technologies like IoT and AI in logistics operations optimises resource utilisation, enhances safety, and ensures reliability in operations.
Advantages of MMLPs for eCommerce Businesses
Enhanced Efficiency in Freight Movement and Cost Reduction
Multi-Modal Logistics Parks (MMLPs) are revolutionising the burgeoning eCommerce logistics sector. These parks optimise freight movement by integrating various modes of transport using a hub-and-spoke model under a single umbrella. This integration dramatically reduces transit times, leading to significant cost savings.
Improved Warehousing and Storage Capabilities
In eCommerce, inventory management is a critical component, and MMLPs excel in this aspect with their advanced warehousing facilities. These parks offer mechanised and specialised storage solutions, including state-of-the-art cold storage units and container terminals. Such facilities ensure that a wide array of goods, from perishable items to electronics, can be stored optimally.
Streamlined Supply Chain Management
MMLPs are pivotal in creating more cohesive and integrated supply chain operations. The centralised logistics hubs of these parks offer enhanced visibility and control over the supply chain. This centralisation simplifies the logistics process, making it easier for eCommerce businesses to manage their operations from a single point.
Eco-Friendly and Sustainable Operations
Sustainability is a growing concern in the global business landscape, and MMLPs address this by adopting eco-friendly practices. These parks are designed to reduce carbon emissions and road congestion through efficient logistics management.
Reduction in Transit Damages
The secure and controlled environment of MMLPs significantly reduces the risk of transit damages. This safe handling and transportation of goods ensure that products reach customers in pristine condition, reducing the cost associated with returns and replacements.
Flexibility and Scalability for Business Growth
MMLPs are designed to provide the scalability and flexibility needed to handle varying volumes of goods, making them ideal for businesses experiencing growth or seasonal fluctuations.
Challenges and Opportunities in MMLP Development
The journey of establishing Multi-Modal Logistics Parks (MMLPs) in India, while transformative, is not devoid of challenges like:
Acquiring large land parcels, often over 100 acres, in strategically important locations poses a considerable challenge. This process can be encumbered by varied ownership patterns and regulatory requirements, leading to delays and escalating costs.
Developing state-of-the-art infrastructure that integrates various modes of transport requires significant investment and meticulous planning. Building such a comprehensive infrastructure also entails overcoming geographical and environmental constraints.
While evolving, India’s regulatory landscape presents its set of hurdles. The multi-layered governance structure involving central, state, and local bodies can sometimes lead to complex bureaucratic processes.
Despite these challenges, with the government’s emphasis on Public-Private Partnerships (PPPs), there are vast prospects for private investments in this sector. This collaboration can also create jobs, boost related industries, and contribute significantly to the nation’s GDP.
Conclusion
MMLPs will emerge as the linchpin in India’s logistical transformation. Their development is a testament to the country’s commitment to fostering growth, efficiency, and sustainability in logistics and eCommerce. As these parks continue to evolve and expand, they are set to unlock new potentials, drive economic growth, and position India at the forefront of global logistics innovation.
The journey ahead for MMLPs is indeed promising. To leverage this infrastructure, partner with NimbusPost today and get faster last-mile and same-day deliveries. Find the best courier service at cheaper rates for an integrated, efficient, and dynamic growth of your eCommerce business.
FAQs
Where is the multimodal logistics park located in Bangalore?
The Multi-Modal Logistics Park (MMLP) in Bengaluru is located at Muddelinganahalli in the rural district.
Where is India’s first multi-modal logistic park?
India’s first multi-modal logistics park (MMLP) is being constructed in Jogighopa, Assam.
What is the concession period of MMLP?
MMLP has a concession period of 45 years.
What is the purpose of MMLP?
The MMLPs are designed to provide freight gathering and distribution and seamless intermodal freight transportation to improve logistics performance and reduce logistics costs.
