Logistics Parks

29/08/2020 0 By indiafreenotes

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 MoRTH and the National Highways 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

Logistic parks are basically Industrial areas or defined areas for activities relating to transport, logistics and the distribution of goods which can be regional, national and/or international transit, and carried out by various operators. Owners or occupants of buildings and facilities (warehouses, break-bulk centers, storage areas, offices, car parks, etc.) are generally the operators. Logistics Park is centered in the areas of logistics operations. Logistics parks have a specific scale as the size determines the facilities, functions, and services that are possible to carry.

The contemporary logistics park has two chief functions:-

  • The logistics organization
  • The logistics management functions

Function of logistic parks

  • Now with Logistics Parks, the shippers are able to plan out their inventories without any hindrance.
  • The requirements of demand and supply are being met on time.
  • Logistics Parks can prove to be a huge success if they are located in the industrial belts, and near airports, ports, and ICDs.
  • They pave the route for other industries like equipment suppliers, construction companies, consultants, and trucking companies
  • The logistics parks offer a larger amount of space for storing goods and products. They are larger and better managed than common warehouses.
  • The logistics parks are also suitably connected through all the essential means of transportation. These parks are more concentrated in urban places and thus further connected with shipping and transferring of goods.
  • With mediators being eliminated or marginalized due to streamlining the supply chain in India, goods movement has become more cost-efficient.
  • They improve environmental quality by reducing the number of trucks on roads.
  • Logistics Park offers a strategic location with good road, rail, and air connectivity. Logistics Parks have wide roads which are sufficient for the free flow of two way traffic during the day and night.
  • They promote economic development by attracting businesses and generating employment
  • The area is available for multiple customers and commerce for future expansion.
  • Ample truck and office parking space.
  • The highly secured area with required security arrangements.
  • Mingled park management for general maintenance, landscaping, security & waste control.
  • State-of-the-art warehousing & cold storage facilities.
  • They promote growth expectations in freight
  • For amenities like banking, insurance, office space, accommodation, catering, and other services facilities.
  • Connectivity with ports & Inland Container Depot (ICD).