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Bengaluru gears up for South India's largest multimodal logistics park

Bengaluru, often referred to as the Silicon Valley of India, is gearing up to boost its infrastructure with the construction of South India's largest Multimodal Logistics Park (MMLP). This ambitious project, located at Obalapur on the northern outskirts of the city, is poised to transform the logistics landscape of the region. Full-scale construction is scheduled to commence in March, marking a significant milestone in the city's pursuit of economic growth and efficient transportation.

Bengaluru gears up for South India's largest multimodal logistics park
First Published Jan 15, 2024, 11:57 AM IST

The MMLP project, led by Bengaluru MMLP Private Limited, boasts an impressive budget of Rs 1,770 crore. Covering a vast expanse of 400 acres, the logistics park is designed to offer comprehensive facilities, including logistics services, warehousing, and cold storage. The primary objective is to optimize logistics costs, with the ambitious target of reducing the overall expenditure from 13% to 9%, thereby enhancing the competitiveness of exports from the region.
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The logistics park is projected to achieve a substantial storage capacity of approximately 30 million metric tons by the year 2070. Such extensive storage capabilities are expected to catalyze industrial growth not only in Bengaluru but also in neighboring districts such as Tumkur. Additionally, the establishment of the logistics park is anticipated to alleviate traffic congestion by diverting the inflow of trucks delivering goods to the city.

Truckers can unload goods from Mumbai or Delhi at the MMLP at any time, allowing for efficient stockpiling in the logistics park's cold storage facilities. This streamlined process eliminates the need for truckers to navigate city clearances, reducing bribery concerns and enabling businesses to plan more effectively.

The project is a collaborative effort, with a majority share (51.29%) held by the National Highways Logistics Management Limited (NHLML), an entity under the National Highways Authority of India (NHAI). The Karnataka Industrial Areas Development Board (KIADB) holds a significant stake of 32.38%, and Rail Vikas Nigam Limited (RVNL) follows with 16.33%. In August 2023, the Special Purpose Vehicle (SPV) entered into an agreement with private firm PATH for a design, build, finance, operate, and transfer (DBFOT) arrangement through Bengaluru Logistics Park Private Limited.

The strategic location of the logistics park ensures seamless connectivity through various modes of transportation. The Bengaluru-Hubli-Mumbai rail line to the South, an industrial park being developed by KIADB to the east, and the Dabuspet-Doddaballapur-Hosakote extension of the Ring Road (NH-648) to the north contribute to the logistics park's accessibility. Moreover, the satellite ring road will enhance connectivity to Kempegowda International Airport and Chennai Port via the Bengaluru-Chennai Expressway.

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