Changing Landscape of Logistics in India with Multimodal Logistics Parks

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Abstract

In the current scenario, when COVID-19 pandemic has thrown supply chains across the world off the charts, logistics efficiency and cost are extremely significant (The Impact of COVID-19 on Logistics, 2021). The aggregation that takes place in logistics parks helps in cost reduction and the bulk material handling with superior equipment reduces the wastage in the value chain. According to the Asian Development Bank’s report (Asian Development Bank et al., 2020), MMLPs have following advantages: (a) Provide smooth multimodal freight transfer, (b) Specialised storage (for e.g., Cold Storages etc.), (c) Value added services such as custom clearances, bonded storage yard etc., and (d) Late-stage manufacturing activities.MMLPs can also increase the efficiency of inland container depots (ICDs) and container freight stations (Asian Development Bank et al., 2020). According to the MoRTH, logistics parks are expected to reduce the transportation cost of the top 15 nodes by ~10% (Concept Note- LEEP, n.d.). The demand for large warehouses is also expected to go up in the near future due to a number of factors, change in building construction codes that have facilitated the growth of large warehouses (i.e. building height increased from 12 m to 15 m, increase in floor load, etc.), rising automation in warehouses as evidenced by growing usage of sorting machines, automatic packaging machines and conveyors inside the warehouse. Ecommerce companies like Amazon and Flipkart are known for their automated warehouses. This paper aims to study the concept of MMLPs and recent steps that have been taken to achieve the objective of improving the efficiency of logistics in India. It also elaborates on various efforts by the Government to promote the establishment of MMLPs. The case study of a recently proposed MMLP has been discussed and analysed taking into consideration key success factors crucial for MMLP. The paper also focuses on the policy formulation by State Governments with respect to Integrated Logistics Park (ILP) and Logistics Park (LP). The challenges and opportunities that lie in the domain of MMLP have been elaborated and some suggestions have been made regarding the same in the later part of the paper.

Additional Information

Product Type Case
Reference No. CTL0001IN
Title Changing Landscape of Logistics in India with Multimodal Logistics Parks
Pages 23
Published on Jun 8, 2026
Authors Dutt,Avi; Shrey,Apurva; Roy,Debjit; ;
Discipline Innovation and Entrepreneurship, Management Education , Operations Management, Strategic Management
Sector Transportation and Logistics
Learning Objective a) Detailed understanding of the commercial and regulation aspect of Multi-modal logistics Parks b) Overview of the challenges of logistics industry in India c) Operational challenges of warehousing d) Case study of one MMLP - help in understanding the broad aspects of structural issues being solved by MMLP
Keywords Multimodal Logistics Park, Freight Handling facility, Warehousing, Specialized storage solutions
Country India
Courses MBA (PGP), MBA-FABM, MBA-PGPX, EEP, ePGP, ePGD-ABA
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