Mukesh Ambani gets a big deal, Reliance to build the country’s first multimodal logistics park
Mukesh Ambani-led Reliance Industries will set up the country’s first multimodal logistics park (MMLP) in Chennai. The park will be developed in three phases and will be a state-of-the-art freight-handling facility, with access to various modes of transport, with an estimated developer investment of Rs.783 crore, the roads, transport, and highways ministry said in a statement on Friday.
The logistics park is estimated to cater to 7.17 million metric tonne (MMT) cargo in a horizon period of 45 years. The strategically located MMLP will offer modern logistics services to domestic and international traffic, particularly for south India.
The MMLP is strategically located around 52 km from the Chennai Port, 80 km from Ennore Port, and 87 km from Kattupalli Airport and will be a focal point of logistics in the southern region.
Phase I development is targeted within two years, by 2025, leading to commercial operations. The total cost of the project under the public-private partnership (PPP) mode is estimated at Rs.1,424 crore, the ministry said. The 184.27-acre park, awarded by a bidding process, is estimated to cater to 7.17 million metric tonnes of cargo over the 45-year concession period.
For the Chennai MMLP, a government special purpose vehicle (SPV) has been formed amongst NHLML, Rail Vikas Nigam, Chennai Port Authority, and Tamil Nadu Industrial Development Corporation. It will provide four-lane national highway connectivity of 5.4 km at an estimated Rs.104 crore and a new rail siding of 10.5 km to the MMLP, costing Rs.217 crore.
Under the PM Gati Shakti National Master Plan launched in October 2021, MoRTH is developing 35 Multi-Modal Logistics Parks (MMLPs), out of which 15 MMLPs are prioritized in the next three years. The Chennai project is the first of 35 MMLPs.
The National Highways Logistics Management (NHLM) had received three bids, including Adani Group, for the Chennai MMLP. Two bidders had technically qualified for the financial bid opening. The model concession agreement for MMLPs is on a Design, Build, Finance, Operate, and Transfer (DBFOT) model.
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