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Chirag Agrawal
Logistics and Data Analytics Expert
Asked a question 9 months ago

What is the meaning of logistics parks?

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Chirag Agrawal
Logistics and Data Analytics Expert

Multi-Modal Logistics Parks (MMLPs) are a key policy initiative of the Government of India to improve the country's logistics sector by lowering overall freight costs, reducing vehicular pollution and congestion, and cutting warehousing costs. The government's Ministry of road transport and highways (MoRTH) is developing multi-modal logistics parks at selected locations in the country under its Logistics Efficiency Enhancement Program (LEEP).India is burdened with high logistics costs, which account for about 13% of the value of goods sold in the economy compared with 8% in other major economies. The average cost to export/import one container in India is about 72% higher than in China.

LEEP, which is spearheaded by the NORTH and the National highway authority of India (NHAI), aims to enhance freight transport in India by reducing costs and time, and improving the tracking and traceability of consignments through infrastructural, procedural, and information technology interventions.

The government defines an MMLP as a freight-handling facility encompassing a minimum area of 100 acres (40.5 hectares), with various modes of transport access, and comprising mechanized warehouses, specialized storage solutions such as cold storage, facilities for mechanized material handling and inter-modal transfer container terminals, and bulk and break-bulk cargo terminals Logistics parks will further provide value-added services such as customs clearance with bonded storage yards, quarantine zones, testing facilities, and warehousing management services. Provisions will also be made for late-stage manufacturing activities such as kitting and final assembly, grading, sorting, labelling and packaging activities, re-working, and returns management.

Logistics Park is concentrated in the areas of logistics operations, in the convergence of several modes of transport, there will be a variety of different types of logistics facilities and logistics enterprise in space focused on the layout of places, but also a certain scale and have a variety of services function of logistics enterprises in the assembly points.

The modern logistics park has two main functions, namely, the logistics organization and management functions and rely on the economic development function of logistics services.

Logistics park has a certain scale. Because the size will determine the logistics park as the facilities can carry, functions and services.