Rail Vikas Nigam forms two JVs - Bengaluru MMLP and Chennai MMLP

Rail Vikas Nigam has formed two joint ventures - Bengaluru MMLP and Chennai MMLP for development of multi modal logistics parks at Obalapura, Bengaluru, Karnataka and Mappedu, Thiruvallur District, Tamil Nadu.

The company holds 16.33% in Bengaluru MMLP along with National Highways Logistics Management (100% owned SPV of National Highways Authority of India) (holding 51.29%) and Karnataka Industrial Area Development Board (holding 32.38%).

The company holds 26% in Chennai MMLP along with National Highways Logistics Management (100% owned SPV of National Highways Authority of India) (holding 40.18%), Chennai Port Authority (holding 26.02%) and Tamilnadu Industrial Development Corporation (holding 07.80%).

Govt. of India is focusing on improving the efficiency in movement of cargo across the country by bridging critical infrastructure gaps and came out with Logistics Policy for Country.

Cabinet Committee of Economic Affairs (CCEA) has approved BMP-Phase-1 which inter-alia includes the Development of 35 MMLPs.

The main benefits of MMLP are,
i) Hub and spoke model of transport network compared to point-to-point network.
ii) Lowers transportation cost by enabling a seamless modal shift to rail & vice versa
iii) Lower handling costs due to presence of best in class modern and mechanized handling infrastructure
iv) Reduces secondary freight costs by co-location of large warehouses and value-added services
v) MMLPs benefit from economies of scale, by creating shared infrastructure and due to availability of more options for selection of competitive and reliable logistics providers.

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