London Firm To Develop Maharashtra's First Multi-Modal Logistics Park In Nagpur At Rs 360 Crore

National Highways Logistics Management Limited (NHLML), a National Highways Authority of India (NHAI) subsidiary, has awarded the contract for the development of multi modal logistics park (MMLP) at Nagpur to Deltabulk Shipping, the Indian unit of London-based Delta Corp.

“We have awarded the bid to Deltabulk Shipping,” Prakash Gaur, Chief Executive Officer, NHLML told ET Infra.

Deltabulk Shipping won the bid to develop Nagpur MMLP by placing the highest minimum guaranteed revenue of Rs 365.89 crore for the 45-year contract, surpassing the Rs 169.44 crore offered by the sole competitor, J M Baxi Ports & Logistics.

MMLP bids are decided on the minimum guaranteed revenue share based on the net present value discounted at a certain rate quoted by the bidders.

Location

Nagpur, being centrally located in the country and almost equidistant from most of the major economic centers of India and well connected through road and rail, provides location advantages for establishing industries, warehouses and associated facilities to link to ports.

Situated in the Sindi village of Wardha district, the MMLP Nagpur site is just 4.1 km from NH-361 and 2.7 km from the Samruddhi Mahamarg.

The location borders NH-353I, linking to NH-361 (Nagpur-Wardha Highway) in the north and NH-44 (Nagpur-Hyderabad Highway) in the south.

The multi modal logistics park is projected to unfold in three phases: Phase-1 covering 76.34 acres, Phase-2 spanning 36.31 acres, and Phase-3 extending over 37.76 acres, summing up to a total development area of approximately 150.39 acres.

Deltabulk Shipping, spearheaded by Indian-born Mudit Paliwal, is set to invest approximately Rs 360 crore in the development of the 150-acre MMLP.

Reducing Logistics Cost

The Nagpur MMLP is the fifth such project to be awarded by NHLM after Chennai, Bengaluru, Indore and Jogighopa (Guwahati).

This is targeted to reduce logistics costs to 8-9 per cent of the gross domestic product (GDP). Currently, logistics account for 14 per cent of GDP — making India far less competitive on the global stage.

MMLP is an integrated facility within which all activities relating to logistics and the distribution of goods, both for national and international transit can be carried out across multiple modes of transport.

The MMLPs equipped with inter-modal facilities for freight handling, warehouses, cold storages, custom bonded area will provide one stop solution and reduce transportation costs, inventory handling costs and substantially resolve inefficiencies present in the logistics ecosystem.

The NHLML, which is a 100 per cent owned subsidiary of NHAI, is the nodal agency for implementing the MMLP projects in the country.

The inaugural multi modal logistics park in the country, located in Jogighopa, Assam, had its foundation stone laid in October 2020, with a scheduled completion date set for December 2023.