![](https://www.nextias.com/ca/wp-content/uploads/2023/07/32607Screenshot_6.png)
In News
- Recently, a tripartite MoU was signed for swift development of modern Multi Modal Logistics Park (MMLP) under Bharatmala Pariyojna.
Key Points
- Objective:
- To centralize freight consolidation and reduce logistics cost from 14% to less than 10% of GDP at par with International Standards.
- This agreement is an earnest attempt towards realization of this objective.
- Parties:
- The tripartite agreement was signed by National Highways Logistics Management Limited (NHLML), Inland Waterways Authority of India (IWAI) and Rail Vikas Nigam Limited (RVNL).
- The NHLML is a Special Purpose Vehicle (SPV) of National Highway Authority (NHAI) of Ministry of Road Transport & Highways while IWAI is a statutory authority under Ministry of Ports, Shipping & Waterways.
- The RVNL is a wholly owned Public Sector Enterprise under the Ministry of Railways.
Image Courtesy: Wiki
Multi Modal Logistics Park (MMLP)
- MMLP will be a freight handling facility with rail and road accessibility.
- It will be comprising of:
- Container terminals,
- Cargo terminals (bulk, break-bulk),
- Warehouses,
- Cold storage,
- Facilities for mechanized material handling and
- Value-added services such as customs clearance with bonded storage yards,
- Quarantine zones,
- Testing facilities and
- Warehousing management services etc. along with other associated facilities.
- Developed under a ‘Hub & Spoke’ model, the MMLP will integrate multiple modes of freight transport through highways, railways & inland waterways.
- The agreement underlines the cooperation & collaboration model between the three bodies in order to achieve efficiency in logistics movement within the country.
- The MMLP project is poised to develop state-of-the-art large scale warehousing facilities for different types of commodities, to become a one stop solution for all services related to cargo movement like warehousing, custom clearance, parking, maintenance of trucks etc.
- The MMLPs will focus on a technology driven implementation for a state-of-the-art freight management system.
- Many value added services like packaging, repackaging and labelling will be available in these projects.
Bharatmala Pariyojana
- About:
- The Cabinet Committee on Economic Affairs has approved the implementation of an umbrella programme for the National Highway Road Sector – “Bharatmala Pariyojana Phase-I” spanning over a period of 5 years (2017-2022).
- Objectives:
- To optimize the efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps through the development of Economic Corridors, Inter Corridor and Feeder: Routes, National Corridor Efficiency Improvement, Border and International connectivity roads, Coastal and Port connectivity roads and
- Significance:
- The project will help generate a large number of direct and indirect employment in the construction activity.
- The development of highways amenities and also as part of the enhanced economic activity in different parts of the country that will result from better road connectivity.
- The Bharatmala project is also expected to boost the associated industries like the cement and steel sectors.
Significance
- It will provide a seamless modal shift. MMLPs will ensure that cargo is swapped/shifted from and to Waterways, Dedicated Freight Corridors & Road Transport.
- It will empower and energize the economies of scale via PM Gati Shakti.
- MMLPs are designed to untie the cobweb of logistics movement and enliven the logistics sector to put the economy into the fast lane of growth.
Logistics Sector in India
- Freight transport: Freight transport demand is expected to grow rapidly in the future due to the rising demand for goods and services.
- It is essential for economic development but is plagued by high logistics costs and contributes to rising CO2 emissions and air pollution in cities.
- As India’s freight activity grows five-fold by 2050 and about 400 million citizens move to cities, a whole system transformation can help uplift the freight sector.
- This transformation will be defined by tapping into opportunities such as efficient rail-based transport, the optimisation of logistics and supply chains, and shift to electric and other clean-fuel vehicles.
- These solutions can help India save Rs. 311 lakh crore cumulatively over the next three decades.
- India has the potential to:
- Reduce its logistics cost by 4% of GDP.
- Achieve 10 gigatonnes of cumulative CO2 emissions savings between 2020 and 2050
- Reduce nitrogen oxide (NOx) and particulate matter (PM) emissions by 35% and 28%, respectively, until 2050.
- Cost-effective:
- Freight transportation is a critical backbone of India’s growing economy, and it’s important to make this transport system more cost-effective, efficient, and cleaner.
- Efficient freight transport will also play an essential role in realizing the benefits of existing government initiatives such as Make in India, Atma Nirbhar Bharat, and Digital India.
Source: PIB
Previous article
GoI signs Headquarters Agreement with CDRI
Next article
Sickle Cell Disease (SCD)