The government is pushing forward with a Public-Private Partnership (PPP) model to boost the development of Multi-Modal Logistics Parks (MMLPs). This strategic initiative aims to streamline logistics, reduce costs, and enhance India’s position in the global supply chain. It is a crucial part of the country’s journey toward achieving a USD 5 trillion economy.
At a recent event organized by a prominent trade organization, a senior logistics director from the Ministry of Commerce & Industry highlighted the transformative potential of the PPP model. He stated, “The PPP model is a game-changer for infrastructure, enhancing efficiency through collaboration and revenue sharing. With MMLPs, we address industry demands and support our economic goals by integrating logistics and reducing indirect costs. This model promotes competitiveness and sustainability, ensuring reliable connectivity and advanced facilities. By consolidating services like cold storage, value addition, and customs, MMLPs pave the way for a streamlined, efficient logistics system.”
An independent director from the Ministry of Road Transport and Highways also spoke at the event, emphasizing the significance of MMLPs in reducing logistics costs and fostering private sector participation. He remarked, “The MMLP concept marks a pivotal step in reducing logistics costs by integrating transportation and providing efficient rail-road connectivity. Despite the high costs associated with rail transport in India, MMLPs promise to enhance efficiency by consolidating land and streamlining regulatory approvals. The collaboration between the private sector and government is crucial to overcoming challenges in land acquisition, rail connectivity, and customs approvals. With the right decisions, MMLPs can significantly lower logistics costs and attract investments in the manufacturing sector, positioning India as a competitive global player. The success of MMLPs hinges on robust policies and private sector expertise.”
This initiative aims to develop MMLPs in a 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, and improving the tracking and traceability of consignments through infrastructural, procedural, and information technology interventions.
A regional director from the trade organization added, “The government’s strategic push for the MMLP initiative underscores its commitment to developing world-class logistics infrastructure. The integration of road and rail networks, coupled with value-added services, is expected to not only boost domestic trade but also enhance India’s export competitiveness. This comprehensive approach will address current logistical challenges, reduce indirect costs, and pave the way for a more efficient and sustainable logistics ecosystem in India.”
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