India’s First MMLP

November 14, 2022

Reliance Industries Limited (RIL) is going to develop India’s first multi-modal logistics park (MMLP) near Chennai, Tamil Nadu.

The Union Ministry of Road Transport and Highways (MoRTH) had awarded RIL the contract to set up India’s first multi-modal logistics park (MMLP) close to Chennai.
The Rs.1,424 project will be implemented under the PM Gati Shakti National Master Plan, which was launched in October 2021.
The model concession agreement for this project is on a Design, Build, Finance, Operate, and Transfer (DBFOT) model.
The total concession period for the project is 45 years.
The MMLP will be developed in 3 phases with the estimated developer investment of Rs.783 crore.
The first phase will be completed by 2025.

India’s first MMLP is being set up in Mappedu village in Thiruvallur district, near the automobile and electronics manufacturing clusters on the Sriperumbudur-Oragadam industrial belt.
The project will also cater to the secondary market clusters of Ranipet, Ambur, Tirupur and Bengaluru that hosts leather, heavy machinery parts, automobiles, cement, sugar and chemical industries.
It is at the strategic location at around 52 km from Chennai port, 80 km from Ennore Port and 87 km from Kattupalli Airport.
It is situated near the Chennai Peripheral Ring Road (CPPR), that connects to the Chennai Airport and also the Kamarajar and Kattupalli ports in Chennai.
The park will act as the focal point of logistics in the southern region of India.
To further boost the connectivity, a special purpose vehicle, having National Highways Logistics Management, Rail Vikas Nigam, Chennai Port Authority and Tamil Nadu Industrial Development Corporation, was set up. The SPV will provide:

4-lane national high-way connectivity of 5.4 km at an estimated cost of Rs.104 crore
A new 10.5 km long rail siding to the MMLP site at the estimated cost of Rs.217 crore.

The MoRTH is developing 35 MMLPs. Of these, 15 are prioritized for the next 3 years.
The MMLP ensures improved multi-modal connectivity and last-mile connectivity across India.
It will facilitate efficient, cost-effective and value-added logistics services like cargo aggregation and disaggregation, distribution, inter-modal transfer, sorting, packing, repacking and others.
The reduction of logistics costs is critical for the Indian economy. Currently, India’s logistics cost as a percentage of GDP is at 16 per cent. In developed countries like the United States and European countries, it is just around 8 per cent. In China it is 10 per cent. The Indian Government is currently targeting to reduce the logistics cost to 10 per cent of the GDP.