CBRE appointed as consultants for 5 Indian multimodal logistics projects
As part of the PM Gati Shakti-National Master Plan for multi-modal connectivity and Bharatmala Pariyojana project, the government plans to develop 35 MMLPs to strengthen logistics
CBRE South Asia Pvt. Ltd, India's leading consulting firm has been appointed as the advisor for the development of multi-modal logistics parks across five key locations including Mumbai, Chennai, Silchar, Coimbatore, and Hyderabad. These projects are a part of Indian Prime Minister Narendra Modi's vision and part of Bharatmala Pariyojana programme that was launched for the development of world-class infrastructure dedicated to smooth and seamless freight transport across multiple modes of transport.
The 35 MMLP projects are likely to create over 2 lakh job opportunities in the coming years and reduce logistics cost by a notable margin. Currently, more than 70% of the national cargo moves through roads and national highways causing pollution and stress on the roads. These MMPLs will help in bringing the logistics costs down from the present 13-14% of India's GDP to 8-10%, a benchmark achieved by developed economies such as Japan and the EU. This initiative aims to transform the Indian infrastructure and logistics landscape by bringing greater efficiencies and eliminating operational redundancies.
Speaking about the project, Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE shared, "We are honoured to be chosen for as advisor for such a prestigious initiative. The GOI's commitment towards enhancing the efficiency of multi-modal Infrastructure connectivity in the country underpins its larger vision toward a strengthened and vibrant economic and business ecosystem. This project will boost the national economy by easing and encouraging seamless exports. Our global understanding and niche expertise in this segment will help in providing necessary support and counsel on projects of such scale and magnitude. CBRE is consulting implementation agencies National Highways Authority of India (NHAI) and National Highways Infrastructure Development Corporation Limited (NHIDCL) for the development of MMLPs in Mumbai, Chennai, Silchar, Coimbatore, and Hyderabad. CBRE is also assessing pre-feasibility for the development of MMLPs across multiple other locations. This is a huge opportunity for us to demonstrate our expertise to help the Government drive one of its most ambitious projects with the aim to make India a resilient, competitive, and thriving economic hub".
Preetham Mehra, Senior Executive Director & Head - Government Practice, CBRE India said, "CBRE India has led numerous public-private collaborations by leveraging our global expertise. MMLP is another such initiative that involves nuanced understanding and specialized knowledge of the logistics sector. The MMLP will improve the country's logistics sector by lowering overall freight costs and time, optimizing warehousing costs, reducing vehicular pollution & congestion, and improving the tracking and traceability of consignments. Along with the 5 projects currently assigned to CBRE, we look forward to many more opportunities of working with the implementing agencies."
While these MMLPs will have excellent connectivity, they will also provide state of art, value-added services such as international grade warehousing, cold storage, packaging and sorting areas, product assembly clusters, a commercial zone, and a dedicated customs window to accommodate a wide range of businesses and cargo consignments of various sizes.
Key benefits of the MMLP
- Reduce logistics costs from 14% to about 8 to 9 % of GDP
- Shall serve as subsidiary gateways for major and minor ports - helping in easing the cargo evacuation process
- Trigger the development of SME manufacturing clusters - to boost employment and entrepreneurial opportunities
- Self-reliant economy - regional cargo exchange hub for land-locked countries in the Indian sub-continent in the coming future.
These MMLPs are positioned to be an enabler of committed long-distance leads and intermodal transport within the influence region of the project. It would serve as a gateway for transshipment, consolidation, and distribution, allowing Hub and Spoke advantages to be realized.