Multimodal Logistics Parks India’s New Growth Engines Along Dedicated Freight Corridors

India’s foray into the logistics revolution is achievable now with the launch of multimodal logistics parks (MMLPs) in the nation on the Dedicated Freight Corridors (DFCs). With these parks, India’s logistics will experience a unprecedented transformation by ensuring unhindered integration of rail, road, air, and sea modes of transportation. This lofty endeavor is just a part of India’s wider vision to become more economically competitive, make freight movement more streamlined, and reduce logistics expenses.

At the center of the strategy lie the Dedicated Freight Corridors and have been being developed by Dedicated Freight Corridor Corporation of India (DFCCIL). An over 2,800 kilometer-long network has already begun to redefine freight and logistics in India. The Eastern Dedicated Freight Corridor (EDFC) is operating at full capacity, while the Western Dedicated Freight Corridor (WDFC) is almost complete, with over 93% of its infrastructure already built. Due to these high-speed corridors, transit times for cargo have significantly reduced and the logistics cost has also dropped significantly, with rail freight now competing very favorably with road transport.

In the words of Zafeer Ahmed, Managing Director, XRE Consultants, “As on date, approximately 14 percent of India’s GDP goes towards its logistics costs as compared to China’s 10 percent and the United States’ 8 percent.

Factors that contribute to these high costs are timeliness and infrastructure. 62 percent of its logistics cost contributes to transportation, with the country’s average lead freight distance reaching 500 km. 60 percent of the country’s freight movement is still carried out via road transport, which is less efficient, as few national highways have sufficient space and lanes for efficient land transport. The present warehousing infrastructure, with limited mechanization and complex administrative processes, further contribute to logistics costs. This is why the Government of India is aggressively working on Multimodal Warehousing hubs across the dedicated freight corridors to achieve a smooth logistics transformation.

In today’s scenario, all the different options and methods of multimodal methods of transportation can be considered as the missing-connect. All this Multimodal logistics parks and infrastructure are planned with consideration towards timely transit and easy transfer of goods from different modes of transportation via rail, road, seat or air. These parks would not only offer cold storage, warehousing, customs clearance, and value-added services but also facilitate an inter-modal synergy by integrating rail, road, air, and port infrastructure that would minimize transit time and per-unit logistics costs for all stakeholders.

The combination of multimodal logistics parks with dedicated freight corridors is a game-changer for India’s logistics industry. It will not only increase efficiency but also give India a competitive advantage in the international market by cutting costs and delivery timelines.”

The programs started by the Government of India, such as the PM Gati Shakti program, are bringing transformation and enabling interlinked multimodal connectivity and coherence of economic zones with RFID. This approach of converging infrastructure would catalyze socio-economic development without compromising sustainability, especially considering geographic needs and economic potential.

According to LC Mittal, Director of Motia Builders Group, “Setting up multimodal logistics parks along dedicated freight corridors will not only strengthen India’s logistics capability but could also lead to the inception of the new industrial hubs, which could facilitate economic growth with the opening of new avenues of job opportunities. It is taken as a conscious step towards making India a logistics powerhouse.”

Simultaneously, these logistics parks will be set up while developing the Gati Shakti Cargo Terminals (GCT) and other FM organizable infrastructure projects like Goods Sheds and Private Freight Terminals. The activeness and ability of these combined systems of integration will give a boost to connectivity, bring savings in logistics costs, and enhance exports-imports trade.

According to Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited Dedicated freight corridors will become lifelines for the movement of freight, addressing the congestion problem before major events in India such as the Maha Kumbh 2025. This infrastructure will also lead to growth in e-commerce by increasing the volume of cargo movement while efficiency remains intact.

In other words, the setting up of multimodal logistics parks along the Dedicated Freight Corridor in India stands as the beginning of an overhaul of the country’s logistics landscape. These parks will embark on becoming the new growth engines of India’s economy as they integrate different modes with comprehensive logistics solutions. With continued investment in strategic infrastructure and solutions, these parks will enable India to emerge as a player in the global logistics sector, providing efficiency and competitive advantages to business and industries alike.