Multi-modal logistics parks & their scope in Indian Textiles

01 March 2023, Mumbai 

Multi-Modal Logistics Parks (MMLPs) are a very timely policy initiative of the Government of India, led by National Highways Logistics Management Limited under the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI).

The timing couldn't have been better; Most optimistic global view on India is that it presents huge opportunities, as the next 10 years belong to India India is in a unique position to integrate itself into the global textile supply chains by building Multi-Modal Logistics Parks in the hub-and-spoke model given that logistics is a holy grail to turn the fortunes of any sector.

Underlying objective; The noble intent behind this government grand initiative is solely to bolster enhancing the core competency & capability of India's freight logistics sector achievable & stemming out of falling overall freight costs, faster turnarounds, cutting into overall warehousing costs, arresting ever-increasing vehicular pollution and congestion thereof, incredibly addressing the issue of tracking and traceability of any given consignment attributable tenably on the back of infrastructural, procedural, and information technology interventions as a great problem-solving approach.

Quick perspective

Focusing on the need for logistics and its efficiencies in these difficult times in the climate of uncertainty wherein transportation vitally plays a pivotal key role in the socioeconomic development of any country knowing that any economic activity's feasibility is centered around the mode of transportation and its efficiency in any given situation.

Let us put a spotlight on the textile sector per se given its complex functionality and intricacy of this chain which is right from carrying various raw materials/inputs from one part A of the country to another B which typically is an extraordinarily long national supply chain in India.

Emerging landscape

It's an open secret that India is one of the biggest & largest manufacturers and exporters of textiles globally, coupled with an enormous domestic market as well.

Thanks to new-age tech-enabled players who have entered India’s logistics arena, it is now easier for small- and medium-sized businesses to transport goods.

Governments all over the world are reviewing their countries' maritime shipping and logistics systems to remove bottlenecks and increase technology adoption.

Decoding Multi-modal logistics parks (MMLPs)

What can greatly benefit the Indian textiles industry by the inherent characteristics of Multi-modal logistics parks offering integrated transportation and warehousing solutions?

Fundamentally, they are specialized infrastructure facilities that integrate multiple modes of transportation, such as road, rail, air, and water, facilitating the greatly rapid movement of goods across the nation/the supply chain. It is in effect a case of value accretion for services like warehousing, customs clearance, and distribution, necessitating for businesses of the day to become competitive and optimize their logistics operations.

Nuances; MMLPs is a business use case currently in the Indian textile industry seeking sustainable growth and progression. No gainsaying in the era of Quick-commerce the sector is quite dependent on super-efficient logistics and multimodal-transportation infrastructure to ensure the timely delivery of raw materials, and semi and finished goods.

Historically, Logistics is a legacy issue & MMLPs are one piece of the puzzle capable of providing a cost-efficient workable solution to the industry's logistics issues in perpetuity. The tearing compulsion of the day is how does sector reduce transportation costs, transit times, and inventory holding costs today if not already done yesterday.

Interestingly MMLPs can be a catalyst acting as a hub for the textile industry's long value chain, help to enable consolidation of goods from varied sources/hubs, enabling the possibility of accomplishing value-added services/value accretion medley of activities like packaging, labeling, and quality checks, and facilitating exports to global markets.

Besides, interesting to know that MMLPs can attract investment in ancillary industries like packaging, warehousing, and transportation, generating tons of jobs creating newer business opportunities, and improving the economic prospects of this space.

Conclusion

In a nutshell, MMLPs present limitless potential for the Indian textile industry, providing a much-needed impetus for growth and a catalytic boost to development. What is heartfelt is the government's untiring focus on improving & upgrading infrastructure, with that following crowding in of private investment. Therefore, evolving a robust logistics ecosystem will only enable unlock its hidden potential and drive its global competitiveness.

So there is a case for the Multi-modal logistics parks (MMLPs) effect to start playing out showing up its great impact in any sector augmenting efficiency, reducing costs, and enhancing the competitiveness of the Indian textile industry to get firm ground under its feet when the world is looking up to rising India.

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