Groundbreaking Begins: South India’s largest logistics park set for construction

Construction has commenced for South India’s largest Multimodal Logistics Park (MMLP) at Obalapura, situated on the northern outskirts of Bengaluru, with full-scale construction scheduled to commence in March. Encompassing 400 acres, the MMLP aims to offer comprehensive logistics, warehousing, and cold storage facilities, intending to reduce overall logistics costs from 13% to 9% and enhance export competitiveness. By 2070, it is projected to handle approximately 30 million metric tonnes of cargo.

The MMLP is anticipated to stimulate industrial growth in Bengaluru, Tumakuru, and nearby districts, while also alleviating traffic congestion by eliminating the need for trucks to enter the city for goods delivery. The INR 1,770-crore project is being developed by Bengaluru MMLP Pvt Ltd, a special-purpose vehicle with three main stakeholders: National Highways Logistics Management Limited (NHLML), Karnataka Industrial Areas Development Board, and Rail Vikas Nigam Limited.

Under the Design, Build, Finance, Operate, and Transfer (DBFOT) model, the project will be executed by private firm PATH Bengaluru Logistics Park Pvt Ltd, as per the agreement signed on August 29, 2023. The concessionaire will be responsible for developing and operating warehousing facilities, with NHLML charging only the lease.

Strategically located, the MMLP will facilitate connectivity through various transport modes, with proximity to an industrial park, railway lines, and a major highway. The project will be implemented in three phases, with the first phase expected to be completed by 2026, the second by 2034, and the third by 2039.

During the groundwork, the contractor has initiated activities such as clearing and leveling the ground, erecting boundary pillars, and establishing the foundation for an RCC plant. In the first phase, road connectivity will be established, including a trumpet interchange on NH 648 and a common access road for both the MMLP and the KIADB industrial park.

The subsequent phases will see the addition of sidings connecting the MMLP to the main railway line and the Dodbele train station by 2028, facilitating efficient transportation. Customs facilities at the MMLP will enable exporters to process their consignments, contributing to its full operational potential.

The MMLP is poised to transform logistics by allowing trucks from distant locations to unload goods at the facility, eliminating the need for entry into Bengaluru. The cold storage facilities are expected to enhance the shelf life of perishable goods, providing benefits to truckers and businesses alike.

G R Shanmugappa, president of the Federation of Karnataka State Lorry Owners and Agents Association, emphasizes the MMLP’s potential to streamline operations, reduce city traffic, and improve overall logistics efficiency. He advocates for the establishment of similar logistics parks in other parts of Bengaluru, such as Electronics City.

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