Multimodal Logistics Park in Assam | 09 May 2023

Why in News?

Recently, the Union Minister of Ports, Shipping & Waterways and Ayush, visited the construction site of India’s first International Multi-Modal Logistics park(MMLP) in Jogighopa, Assam, to review the progress made so far.

• Multi Modal Logistics Park is likely to Boost Connectivity in the Northeast.

What is the Scope of this Project?

• The park is being developed under the ambitious Bharatmala Pariyojana of the Government.
• This park is being made by National Highways & Infrastructure Development Corporation Limited (NHIDCL).
• The park will be connected to road, rail, air, and waterways.
• It is being developed in 317-acre land along the Brahmaputra.
• Project is likely to unlock huge potential for the region along with neighboring countries like Bhutan and Bangladesh.

What is MMLP?

• About:
  • A MMLP is a transportation hub that combines different modes of transport in one location to enable efficient movement of goods.
  • These logistics parks are typically located near major transportation nodes, such as ports, airports, and highways.
  • They are designed to handle a large volume of goods, with facilities for warehousing, distribution, and value-added services such as packaging and labeling.
• Benefits:
  • Improved Supply Chain Efficiency:
    • By bringing together multiple modes of transportation, MMLPs can reduce the time moving goods between different locations. This helps to streamline the supply chain and improve overall efficiency.
  • Reduced Logistics Costs:
    • MMLPs can reduce logistics costs by providing shared facilities and infrastructure, such as warehousing and transportation, which can be used by multiple companies. This helps to lower operational costs and improve profitability.
  • Enhanced Safety and Security:
    • MMLPs often have advanced security systems and protocols in place to ensure the safety of goods and people. This helps to prevent theft, damage, and other security issues that can impact the supply chain.
  • Environmental Benefits:
    • By reducing the number of trips required to transport goods, MMLPs can help to reduce carbon emissions and other environmental impacts associated with transportation.
• Status of MMLP in India:
  • The Cabinet Committee on Economic Affairs (CCEA) authorized the Ministry of Road Transport and Highways (MoRTH) to develop 35 MMLP under the Bharatmala Pariyojana.
    • Bangalore, Chennai, Guwahati, and Nagpur MMLPs under implementation.
  • The MMLPs are to be developed under Public Private Partnership (PPP) on Design, Build, Finance, Operate and Transfer (DBFOT) mode.
  • The National Highways and Logistics Management (NHLML), a special purpose vehicle (SPV) fully owned by the National Highways Authority of India (NHAI), plans to construct the majority of the proposed MMLPs in PPP mode.

Source: PIB