Work On Tamil Nadu's First Multi-Modal Logistics Park Near Chennai To Start In June

Construction of a multi-modal logistics park (MMLP) near Chennai is set to kick off in June.

In November 2022, the Road Transport Ministry had awarded billionaire Mukesh Ambani-promoted Reliance Industries the contract for the Rs 1,424 crore project.

However, many issues, including road access to local villages, delayed the start of the construction. All these have been sorted, and the construction is to start in June, as reported by businessline.

The logistics park at Chennai is strategically located at 52 km from the Chennai Port, 80 km from Ennore Port and 87 km from Kattupalli Port and will be a “focal point of logistics in the southern region”.

The MMLP, which is coming up on 184.27 acres of land at Mappedu village in Thiruvallur district, is close to the automobile and electronics manufacturing clusters on the Sriperumbudur-Oragadam industrial belt. Besides, it is in close proximity to the Chennai Peripheral Ring Road (CPPR).

The National Highways Logistics Management (NHLML) received three bids, including one from the Adani Group, for the Chennai MMLP, with two bidders meeting the technical qualifications for the financial bid opening.

In order to develop the logistics park, a SPV (special purpose vehicle) has been formed amongst the NHLML, Rail Vikas Nigam Limited (RVNL), Chennai Port Authority & Tamil Nadu Industrial Development Corporation (TIDCO).

The project which is being built on a design, build, finance, operate, and transfer (DBFOT) model, has a total concession period of 45 years. Over a period of 45 years, this facility would be able to cater to a cargo volume of 7.17 million metric tonne (MMT).

Reducing Logistics Cost

MMLP is an integrated facility which offered integrated logistics and distribution services, facilitating modal shift between road and rail, lowering handling costs.

Under the PM Gati Shakti National Master Plan, the Ministry of Road Transport and Highways has decided to develop 35 multi-modal logistics parks across India, targeting some of the highest freight movement regions in the country.

These mega establishments are targeted to reduce logistics costs to 8-9 per cent of the gross domestic product (GDP). Currently, logistics account for 14 per cent of GDP — making India far less competitive on the global stage.

The NHLML, which is a 100 per cent owned subsidiary of the National Highway Authority of India is the nodal agency for implementing the MMLP projects.

To date, contracts have been awarded for five MMLPs, including Nagpur, Chennai, Bengaluru, Indore and Jogighopa. The pioneering multi-modal logistics park, situated in Jogighopa, Guwahati, Assam, had its foundation laid in October 2020, with a projected completion date of this year.