Government Pushes for Public-Private Partnership Model to Enhance Multi-Modal Logistics Parks in India
New Delhi [India]: July 12, 2024: In a move to bolster the country’s logistics infrastructure, the government on Friday said it will actively promote the Public-Private Partnership (PPP) model on a project-specific Special Purpose Vehicle (SPV) basis to expand the Multi-Modal Logistics Parks (MMLPs) network across the nation. This initiative aims to streamline logistics, reduce costs, and position India as a competitive player in the global market, supporting the country’s ambitious journey towards a $5 trillion economy.
At an event organized by the Indian Chamber of Commerce (ICC) on Friday, Sagar Kadu, Director of Logistics, Ministry of Commerce & Industry, emphasized 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.”
Karunakaran Sathianathan, Independent Director, National Highways Logistics Management Limited, Ministry of Road Transport and Highways, also spoke at the ICC event, highlighting the significance of MMLPs in reducing logistics costs and fostering private sector participation.
He noted, “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.”
MMLPs is a key policy initiative of the Government of India, led by National Highways Logistics Management Limited under the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI). This initiative aims to develop Multi-Modal Logistics Parks 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.
“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,” said Debmalya Banerjee, Regional Director, ICC.
