Multimodal Logistics Park:
Reliance Industries Ltd (RIL) has been awarded the project to build India’s first multimodal logistics park (MMLP) in Chennai.
- To set up the country’s first MMLP, the Centre and Tamil Nadu government have come together to form a special purpose vehicle (SPV), which is amongst National Highways Logistics Management, Rail Vikas Nigam, Chennai Port Authority and Tamil Nadu Industrial Development Corporation.
- The estimated project cost is ₹1,424 crore and the total concession period is 45 years.
- The project would likely be monitored by the highest levels of the government, as it falls under the high-priority list of projects inaugurated by Prime Minister Narendra Modi under the Centre’s project monitoring system.
- These parks will also facilitate intermodal transportation – roads, railways, and inland waterways, with the aim of strengthening and diversifying the logistics system.
- MMPLs will play a crucial role in reducing logistics costs.
- India’s logistics cost as a percentage of GDP is very high at 16 per cent, while in developed countries such as the US and Europe, it is around 8 per cent.
- China’s logistics costs are 10 per cent.
- The government wants to bring down the logistics cost to 10 per cent of GDP.
