India Boosts Logistics Infrastructure with PPP Model for Multi-Modal Parks

New Delhi, Jul 13 (KNN) In a significant move to enhance India's logistics capabilities, the government announced on Friday its plans to leverage the Public-Private Partnership (PPP) model for expanding the network of Multi-Modal Logistics Parks (MMLPs) across the country.

This initiative, utilising project-specific Special Purpose Vehicles (SPVs), aims to streamline logistics operations, reduce costs, and bolster India's competitiveness in the global market as it strives towards a USD 5 trillion economy.

At an event hosted by the Indian Chamber of Commerce (ICC), key government officials outlined the transformative potential of this approach.

Sagar Kadu, Director of Logistics at the Ministry of Commerce & Industry, emphasised the game-changing nature of the PPP model, stating, "This collaboration will enhance efficiency through revenue sharing and address industry demands by integrating logistics and reducing indirect costs."

Karunakaran Sathianathan, Independent Director at National Highways Logistics Management Limited, underscored the importance of MMLPs in reducing logistics costs and encouraging private sector involvement.

He highlighted that despite challenges in rail transport costs, MMLPs offer significant potential for efficiency gains through land consolidation and streamlined regulatory processes.

The MMLP initiative, spearheaded by National Highways Logistics Management Limited under the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI), adopts a hub-and-spoke model.

This approach aims to boost freight logistics by lowering costs, reducing transit times, and improving tracking capabilities through infrastructure and technological advancements.

Debmalya Banerjee, Regional Director of ICC, commented on the broader implications: "This strategic push demonstrates the government's commitment to world-class logistics infrastructure.

By integrating road and rail networks with value-added services, we anticipate a boost in domestic trade and export competitiveness."

Industry experts view this initiative as a critical step towards addressing long-standing logistical challenges in India.

The focus on private sector expertise coupled with government support is expected to overcome hurdles in land acquisition, rail connectivity, and customs approvals.

(KNN Bureau)