Work on the first logistic park in Tamil Nadu is expected to start in June

Construction of the Multi-Modal Logistics Park (MMLP) near Chennai is scheduled to begin in June.

Chennai Port Trust officials who visited the project site last month expressed confidence that work will be well underway in three months.

Previously, in November 2022, the Department of Road Transport awarded Reliance Industries Limited (RIL) the contract to set up the Chennai MMLP at a total cost of Rs. 1,424 crore.

The National Highways Logistics Management (NHLM) had received three bids, including the Adani Group, for the Chennai MMLP. Two bidders had technically qualified for the financial opening of the bid.

Location

Strategically located 52 km from Chennai port, 87 km from Kattupalli port and 80 km from Ennore port, the logistics park in Chennai will be a “logistics hub in the southern region”.

The MMLP, which is being built on 184.27 acres of land in Mappedu village, Thiruvallur district, is close to the automotive and electronics manufacturing clusters in the Sriperumbudur-Oragadam industrial belt. It is also in close proximity to the Chennai Peripheral Ring Road (CPPR).

To plan

To develop the project, a Government Special Purpose Vehicle (SPV) was formed from National Highways Logistics Management Limited (NHLML), Rail Vikas Nigam Limited (RVNL), Chennai Port Authority and Tamil Nadu Industrial Development Corporation (TIDCO).

The SPV will provide 5.4 km of 4 lane NH connectivity at an estimated cost of Rs 104 crore and a new rail siding to the MMLP site of ~10.5 km length at an estimated cost of Rs 217 crore.

The project, which will be built under the DBFOT (Design, Build, Finance, Operate, and Transfer) model, has a total concession life of 45 years. Over a period of 45 years, this facility would be able to handle a cargo volume of 7.17 million tonnes (MMT).

A variety of goods including textiles, apparel, grain, electronics, consumer goods, and automobiles and automobile components can be transhipped at the MMLP. The project will enable efficient, low-cost and value-added logistics services such as cargo aggregation and disaggregation, distribution, intermodal transfer, sorting, packing, repacking, etc.

scope

The Southern Railway has already given approval for a railway corridor plan from the nearest railway line near Kadambattur station to the facility.

The MMLP will be developed in three phases and Phase 1 development will be completed in two years, ie by 2025, leading to commercial operation. While Phase II will take almost 10 years to complete, Phase III will take 15 years from the set date.

The Ministry of Roads Transport and Highways (MoRTH) is developing 35 MMLPs in some of the country’s busiest freight-moving regions to improve logistical efficiencies across the country.

Of these 35 MMLPs, 15 will be prioritized for award by FY 2024-25 under Phase I of Bharatmala Pariyojana. These MMLPs were planned for development under PM Gati Shakti’s national master plan in PPP mode.

Within these 15 MMLPs, the MMLP at Jogighopa in Assam is currently under development at a total cost of Rs 694 crore and will become operational in FY2023-24. Jetty work for the MMLP in Assam has been separately contracted and this work is also scheduled for completion in 2023-24.

Related Articles

Back to top button