Multimodal Logistics Parks: India’s opportunity to hack its logistics

MMLPs is one of the most ambitious infra policy initiatives to overhaul the country’s logistics from point-to-point to the hub-and-spoke model.

The government of India is developing 35 MMLPs across the country, out of which 15 MMLPs are prioritised in the next three years.

In Nov 2022, the contract for setting up the first MMLP near Chennai was awarded to Reliance Industries after it won the bid in which Adani Logistics also participated.

From the lack of private players' participation to the lack of rail networks, from the cumbersome approval process to connecting the existing infra and from the time it may take to the level of collaboration it demands from the industry.

Vikash Khatri of Aviral Consulting pointed out the lack of participation from logistics companies. "There should be more players coming in. At least three to four players to ensure healthy competition."

Vikas Pawar of Amicus Growth Advisors, notes that these facilities will be used mostly for the movement of bulk goods like coal and cement and not consumer goods and thereby losing a huge opportunity.

Soham Chokshi of Shipsy thinks that the sheer scale of the policy and the sector’s long-pending challenges may demand time to realise significant benefits.

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