By 2047, India will require nearly 215 operational next-generation Multimodal Logistics Parks (MMLPs) to meet rising freight demand, as the country’s logistics efficiency has improved by 59% over the past decade, according to a study released by CII and Knight Frank India on Friday.

The report estimates that India’s freight movement will rise to approximately 28,109 MMT by 2047. To achieve the National Rail Plan target of increasing rail’s share to 45%, MMLPs would require processing nearly 12,649 MMT of cargo annually.

As of now, India’s multimodal logistics remains at an infant stage, with operational MMLPs handling only 129 MMT of cargo annually, which accounts for only 2% of the country’s total freight movement. Presently, India has a total strength of 30 operational MMLPs. 45 MMLPs are under development.

The report also highlighted that the government has invested nearly $360 billion in transport infrastructure, which has helped significantly in improving freight efficiency as well as reducing the cost of logistics to nearly 10-10.5% of the country’s GDP.

Shishir Balaji, the chairman and managing director of Knight Frank India, said that MMLPs could become a critical link between infrastructure development and freight efficiency by lowering the logistics cost and strengthening India’s manufacturing and export competitiveness.

The report also stressed that there is a need for developing stronger connectivity, faster project clearance, and improved integration between rail, road, and port infrastructure in order to enhance freight movement and accelerate multimodal adoption.