Steps have been taken to infuse further growth to the multimodal logistics sector in India. Major infrastructure project taken up by Concor in Andhra Pradesh is an indication of that.

The multimodal transport logistics concept in India has gained pace owing to the significant growth India has witnessed in the last two decades in all sectors including manufacturing and exports. This is primarily because the growth has applied critical pressure on the need to have seamless infrastructure to match this pace and to sustain it on long term. Experts believe that multi modal logistics has registered growth in India but there is enough scope for development of good standard of infrastructure backed with simpler regulatory policies to boost the growth further. The growth of multimodal logistics will be the key in overcoming the current bottlenecks considerably. But it needs to be looked in a holistics frame of logistics ie integration of infrastructure near ports, leveraging on coastal shipping, which is one of the most efficient, cost effective and environment friendly mode of transportation in the country.

Understanding the growth prospect of multi modal logistics in India, steps have been taken to make the segment a vibrant one. For instance, the first phase of the multi-modal logistics park being developed by the Container Corporation of India (Concor) at Viman Nagar opposite the airport in Vizag. The park, the first of a series being developed by Concor all over the country, would come up on a hundred-acre site at Viman Nagar and the total investment may be around Rs 370 crore.

It is a major infrastructure project taken up by Concor in Andhra Pradesh and will give a great boost to the exim trade in the State, especially with the prospect of a number of projects coming up in Seemandhra in the next five to ten years with tax incentives. The project would offer integrated logistical solutions to the trade, not only in Andhra Pradesh, but in the neighbouring State of Odisha and Chhattisgarh as they make use of the Visakhapatnam and Gangavaram ports. The project will have a private freight terminal and container freight station and facilities for empty container storage and handling. Apart from this, container repair facilities would also be provided. There will be open and covered warehouses.

Covered warehouses with a space of 4.5 lakh sq. ft would be built and there would also be quality control facilities. No wonder, at the park, value addition to cargo would also be possible. According to sources, the Railways was building multiple sidings in the park and other necessary infrastructure. There would be facilities for handling reefer (refrigerated) containers, necessary for the aqua and pharma sectors. The project is expected to be complete by March, 2016, and will definitely give a shot in the arm to exim trade in the region.

The project is a step in the right direction. Experts associated with the industry opine that the focus needs to brought in to the “connectors” in multimodal chain. For example, the shore, harbor, equipment in ports of India, are either ageing or inept in handling higher efficiencies and loads. Similarly, the approach and connecting roads, rail, networks from/to our major gateways of EXIM often become detrimental to the growth impetus rather than being facilitators. Like all industries, logistics is under increasing pressure to improve efficiencies and bring transparency in the supply chain process. Since multimodal transport involves multiple information points, a technology driven approach provides the much needed platform to integrate the multiple vendors into a seamless network for the customers.

It is important to mention here that Indian companies have taken necessary steps to match their global counterparts. The scope is enormous and minor easing of policies can not only make the environment more conducive but also attract bigger global investors to the country.