Logistics firms eye multi-modal parks

Leading logistics companies like World Windows Infrastructure and Logistics, DHL Logistics, Transport Corporation of India, Gati, Adani Logistics, Sical Logistics and Mahindra Logistics have shown interest in the multi-modal logistics parks proposed by the Indian Railways along the eastern and western dedicated freight corridors.

The railways have identified 11 sites along the proposed Delhi-Mumbai industrial corridor and have invited requests for qualification to appoint consultants, who will prepare a detailed project report for setting up such logistics parks. Railway ministry officials said Special Purpose Vehicles for the parks would be ready within one year.

Logistics companies said the multi-modal logistics parks offer them a huge growth opportunity. "The parks offer us a huge growth opportunity and we expect 15-20 per cent annual growth for such parks," World Windows Infrastructure and Logistics President Kapil Rawat said.

"In the long run, we expect such parks to be highly beneficial to our growth and the whole logistical sector. So as an organisation we will definitely like to participate in it," added Transport Corporation of India Executive Director Vineet Agarwal.

These parks will be connected by rail and road and some will be located near airports. The multi-modal logistics hubs have been planned to provide a total transport solution and other value-added services to industry in and around the dedicated freight corridor.

Each logistics park will have a container terminal for both domestic and international operation, mineral-handling terminals, a cement and fertiliser terminal, automobile terminals, storage and distribution as well as trans shipment facilities, conventional, cold storage and product-specific warehouses as well as hotels, banks, food parks and entertainment centres.

The logistics park would be built through public-private partnership. The railways would subscribe to the equity capital of the SPVs, which would implement these projects.

A railway ministry official said, "Though 11 areas have been initially identified for setting up multi-modal logistics parks, the railways may increase it to potential sites for upcoming special economic zones."

The consultants will study the commercial prospects of logistics parks at each area. Based on the report of the consultants, the railways would decide whether to have a mega park of 1,000 acres, medium parks of 500 acres or special parks of 250 acres at each identified area. The investment in these parks could vary from Rs 250 crore to Rs 1,000 crore, depending on the size.