India Requires 216 Multimodal Logistics Parks by 2047 for Freight Modal Shift
The Confederation of Indian Industry (CII) and Knight Frank have released a report stating that India will need 216 Multimodal Logistics Parks (MMLPs) by 2047 to achieve its freight modal shift goals and better connect industrial centers with the rail network.
- Integrating dedicated freight corridors with MMLPs can reduce door-to-door logistics costs by up to 43% compared with road transport.
- Substantially reducing cargo handling and dwell times.
History of MMLPs in India
Multi-Modal Logistics Parks (MMLPs) were first proposed by the government in 2017 with the approval of a plan to build 35 MMLPs.
- The cabinet formally mandated the Ministry of Road Transport and Highways (MoRTH) to develop them in October 2017 as part of Bharatmala Pariyojana Phase-I.
- However, only five of them are under various stages of development.
- The government has now downscaled its approach to build only nine of them, primarily due to land acquisition constraints.
Key Obstacles to Freight Movement in India
The report identified inadequate connectivity between industrial clusters and rail terminals as a key obstacle preventing greater use of railways for freight movement.
- While rail transport offers lower line-haul costs over longer distances, industries often continue to rely on trucking due to difficulties moving cargo between factories and railheads.
- India's freight movement remains heavily dependent on roads, which account for about 70% of cargo movement.
Recommendations for Faster Implementation of MMLPs
The report recommended faster implementation of MMLPs through greater private sector participation, industrial clustering and freight aggregation to improve freight flows and utilisation.
"The challenge is no longer one of infrastructure creation alone. India has made substantial progress in building transport corridors; the next phase requires integrating them into a seamless, commercially viable freight ecosystem. The critical missing link lies in multimodal interchange infrastructure capable of connecting dispersed industrial demand to high-capacity rail networks," said Shishir Baijal, international partner, chairman and managing director at Knight Frank India.
Quotes from Union Road Transport and Highways Secretary V Umashankar
"The inflection point in terms of logistics cost is 600 kilometres below which road becomes cheaper than rail. If the first-mile and last-mile is within 50 kilometres, then it is 800 kilometres, and if the first-mile and last-mile is 100 kilometres, then it is 1,000 kilometres," he said at the report launch event, citing the 2025 DPIIT-NCAER report.
"Till recently, roads and rail have been working with their own set of planning. At some points maybe we are better positioned than the railways to achieve the end objective and in many cases railways will be better placed than us to deliver the objective," he added.