Dawn Of Industrial Revolution

The advent of logistics parks aims to act as a hub for freight movement for better connectivity and distribution. The multimodal logistics parks model would help reduce costs and improve efficiency.

- Kalpana Lohumi

With Goods and Services Tax (GST) coming in, warehousing sector is expected to witness a great boom. Warehousing in India is getting better with changing business dynamics, by increasing their capacity, expanding their network and adapting new concepts. The Indian warehousing sector is progressively getting redefined and upgrading to modern-day large logistics parks with state-of-the-art facilities. Going one step ahead, multimodal logistics parks is the refined form of logistics parks where various value added services are rendered in addition to rail/road based transportation. Seeing the potential, government has announced the development of multimodal logistics park in 35 clusters. CARGOTALK took opinion of industry experts on how developing a network of multimodal logistics parks will address the issues of unfavourable modal mix, inefficient fleet mix and an underdeveloped material handling infrastructure.

Reduction of costs

Providing his opinion on reduction of costs, Vineet Kanaujia, India Cargo Award winner, 2015, and Vice President of Marketing, Safexpress, says, “Development of multimodal logistics parks is definitely the way ahead towards reducing logistics costs in India. However, the government needs to speed-up the process of providing adequate support for building them. India Inc. needs the multimodal infrastructure in order to reduce logistics costs and make the economy more competitive. This also requires creating an effective transportation framework for the railways, highways, inland waterways and airports.”

“We need efficient transportation solutions that will help improve the effectiveness of infrastructure that has already been developed. An efficient transportation system will improve logistics efficiency of the country by reducing costs and providing more organised as well as transparent freight movement system,” adds Kanaujia.