Multi Modal Logistics Park under Bharatmala Project

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