[Answered] What are multi-modal logistics parks (MMLPs)? How can they revolutionize India’s logistics landscape?

Introduction: Explain multi-modal logistics parks (MMLPs).
Body: Write about how multi-modal logistics parks can revolutionize India’s logistics landscape.
Conclusion: Write a way forward.

Multi-modal logistics parks are large land parcels with rail and road connectivity, where goods coming in get seamlessly transferred to trains and other modes of transport in a hub-and-spoke model.

So, freight from production zones will be shipped to nearby logistics parks, where it will be aggregated and shipped on a larger vehicle to a logistics park near the consumption zone. Then, the freight arriving at the destination logistics park will be disaggregated and distributed to the consumption zones inside the city. The first multi-modal logistics park is coming up in Chennai.

Multi-modal logistics parks revolutionize India’s logistics landscape in following manner:

  • Reduced logistics cost: They will provide value-added services such as customs clearance, labelling, repackaging, and packaging. All these features will ultimately bring down the overall logistics cost from the current about 14% of GDP to less than 10% of GDP.
  • Improved efficiency: The MMLPs will increase the warehouse capacity of the country. It will help in improving the efficiency of freight movement and reduction of freight transportation cost.
  • Lower handling costs: due to the presence of best-in-class modern and mechanised handling They are expected to reduce secondary freight costs by co-location of large warehouses and value-added services.
  • Aggregation of demand: These parks will ensure improved train services, use of modern equipment, and electronic data interchange. So, the time taken for the entire process of moving goods from the production centre to ports will be reduced.
  • Container movement: Not just for exports, MMLPs will also facilitate the movement of containers to seaports for inland demand. As of now, inland goods movement is usually not done via containers.
  • Lower warehousing charges and less pollution: because these parks are typically situated outside city limits where land costs are lower. Reduction in freight movement on busy city roads and movement of goods in larger trucks will also lower overall cost of freight.

India aims to become US$ 5 trillion economy in the near term and a developed economy by 2047. For this, connectivity and robust infrastructure will become crucial points. As logistics develop, manufacturing and other industries like warehousing and infrastructure development will also develop and make India a manufacturing hub.

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