Government promotes the PPP model to expand Multi-Modal Logistics Parks, aiming to streamline logistics, reduce costs, and enhance India’s global competitiveness.
On July 13, 2024, the government announced its plan to actively promote the Public-Private Partnership (PPP) model to expand the Multi-Modal Logistics Parks (MMLPs) network across India. This initiative aims to streamline logistics, reduce costs, and position India as a competitive player in the global market, supporting the country’s ambitious journey towards a USD 5 trillion economy.
At an Indian Chamber of Commerce (ICC) event, Sagar Kadu, Director of Logistics at the Ministry of Commerce & Industry, emphasised the transformative potential of the PPP model, stating, “The PPP model is a game-changer for infrastructure, enhancing efficiency through collaboration and revenue sharing.”
Karunakaran Sathianathan, Independent Director at National Highways Logistics Management Limited, highlighted the importance of MMLPs in reducing logistics costs and fostering private sector participation. He noted that integrating transportation and providing efficient rail-road connectivity would enhance efficiency and attract investments in the manufacturing sector.
MMLPs, a key policy initiative led by the Ministry of Road Transport and Highways and the National Highways Authority of India, aim to develop logistics parks in a hub-and-spoke model. This will improve freight logistics by lowering costs and time, cutting warehousing expenses, reducing pollution and congestion, and enhancing tracking and traceability through advanced technology.
Debmalya Banerjee, Regional Director of ICC, highlighted the government’s commitment to developing world-class logistics infrastructure. The integration of road and rail networks, along with value-added services, is expected to boost domestic trade and enhance India’s export competitiveness, creating a more efficient and sustainable logistics ecosystem in India.
