Railways to set up logistics parks

The railway ministry is planning to set up around 20 logistics parks across the country, based on the public private partnership (PPP) model. The approximate cost of setting up these parks would come to around Rs 10,000 crore.

The Prime Minister's Committee on Infrastructure had set up a logistics committee headed by Planning Commission Member Anwar-ul-Hoda, which in its report to be released soon has mooted the idea of setting up logistics parks with the help of the railway ministry.

These parks would be a part of the upcoming dedicated rail freight corridor, and according to sources some of these may fall under the eastern corridor of this project (Delhi-Howrah).

With the plan still in its initial stages, railway ministry sources say that an inter-ministerial group (IMG) may soon be set up for implementing this project, and the feasibility study of the project would be done by RITES.

Sources say that the actual setting up of these parks would start only when RITES gives its report and construction work of the freight corridors commence.

Therefore going by this estimates, at least once such park could come on eastern corridor by the next year. These parks would consist of warehouses, cold storages, wholesale facilities and multi modal transport system facilities.

They are to be set up with the help of state governments. Punjab and Gujarat governments have shown interest in developing them, sources say.

As the freight corridor would be running parallel to the Golden Quadrilateral (GQ) covering all the four metros, sources say through these proposed parks, the railway ministry is expecting a lot of revenue generation.

They say these proposed parks may also provide logistical support to the new players who have been given licences by the railway ministry for operating freight trains.

The IMG, once it is set up, would also finalise the locations for setting up these logistics parks. A ministry official said these parks would be set up near railway stations for having direct rail connectivity to facilitate easy movement of goods. The official added that the IMG may also look into providing road and air linkages to these parks.

With the entire project to be taken up through PPP mode, sources say that the ministry and the state governments would help in providing land to developers and also assist in funding these parks.

The parks would be developed by private developers.