MULTIMODAL LOGISTICS PARK IN SURAT Brief Location Assessment

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• Multimodal Logistics Parks are common globally, including US,

Europe

• Logistics parks are critical to enable logistics cost reduction

• Increased focus on developing alternate modes of long haul

freight transportation (Dedicated Rail Freight Corridors, Inland

waterways)

• Roads provide the critical first mile and last mile connectivity

• Multimodal Logistics Parks enable seamless intermodal

freight transfer

• Implementation of Goods and Services Tax (GST) will lead

to consolidation of warehouses

• Multimodal Logistics Parks provide modern warehousing space at

key economic nodes in the country

Multimodal Logistics Parks: An Attractive Investment Opportunity

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Salient features of draft policy for Logistics Park

Location Norms

• Logistics parks to be developed at key production and

consumption centers in the country

• Suitable land parcels along the direction of major freight

flows with good highway and railway connectivity to be

prioritized

Design Principles

• Nature of commodities to govern the size and type of

facilities to be provided at each location

• Logistics Parks to have five broad zones viz., Commodity

storage zone, Intermodal zone, Value added services

zone, ancilliary services zone, vehicle parking zone

• ~50% of the area to be allocated to Core Logistics activities;

Rest of the area to be allocated for parking, ancilliary

activities, land scaping

Project Proponents

• Central/state government and private developer to be

the key stakeholders

• State Government and Central Government agencies to

form a SPV and the SPV shall appoint private

concessionaires for development and operation of LPs

Role of government entities

• Logistics parks being considered for infrastructure status

• Encumbrance free land to be provided by State

Government

• Road and Railway connectivity to be provided by Central

Government agencies

• Customs Clearance along with bonded storage yards to be

provided by authority

Role of concession-aire

• Concessionaire to procure funding and develop

Logistics Parks as per Authority guidelines

• Detailed design & engineering to incorporate learning

from global best practices

• Operation and maintenance of the Logistics Parks to be in

line with Authority SLAs

Multimodal Logistics Parks: Prioritized locations

Multimodal Logistics Parks have been planned to be developed at 35

locations by the Ministry of Road Transport and Highways, as a part of

the Bharatmala Pariyojana. Hyderabad is one of the fifteen locations

planned in Phase 1 of the Bharatmala Pariyojana.

Surat

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Gujarat: Economic Profile and Industry Analysis

Gujarat has an international boundary and has a common border with the Pakistan at the north-western fringe, and has a long coast-line of about 1600 km. Gujarat is sub-divided into 33 districts, and has a geographical area of 1.96 lakh square km, covering 6.19% of India’s area. The population of Gujarat includes 5% of the total population of India

Key Economic Indicators and Composition of Gujarat's Economy

Key Economic

Indicator

Value

Share of Indian

GDP

7.31%

GSDP growth rate,

FY16

7.7%

Per Capita Income INR 1,06,831

Fiscal deficit 2.31% of

GDP

FDI inflows 4.6% of

Indian inflows

Percentage share

of Indian exports

23.5%

Primary 22%

Secondary 42%

Teritary 36%

Source: Socio Economic Review, Gujarat – 2015-16

Source: Socio Economic Review, Gujarat – 2015-16

Industries in Gujarat

41%

13%7%

6%

6%

5%

5%

17% Coke and refined petroleum products

Chemicals and chemical products

Basic metals

Food products

Textiles

Other industries

Other manufacturing

Miscellaneous

The major industries in Gujarat include coke and refined products, chemicals, basic metals, food products, etc.

Source: Annual Survey of Industries, 2013 - 2014

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Surat: Key Demand Centers and Potential Location of Logistics Park

Source: Industries Commissionerate, GoG

S.

No SEZ Name

Sector & Area (In

hectares)

1 Essar Hazira

SEZ

Engineering – (267)

2 Essar Power

SEZ

Power (180)

3 Gujarat Hira

Bourse

Gems and Jewellery –

(74)

4 SURSEZ Multi-product – (49.9)

5 Surat Apparel

SEZ

Apparel – (56.6)

S.No Industrial Park

Sector &

Area (In

hectares)

1 Shri

Lakshminarayan

Ind.

Textile Park

2 Gujarat Eco

Textile

3 Fairdeal Textile Integrated

Textile Park

4 Surat Super

Yam

Key SEZs and Industrial Parks in the region

Total Road freight Movement (Mn MT)1: 404

Notes: 1. Road Movement for South Gujarat in FY 25 . Source: MORTH

Key Commodities • Agriculture: Paddy, Sugar Cane, Banana, Cotton and Mango • Industrial: Diamond, Textiles, Fertilizer, Iron & Steel, Dairy Products,

Chemicals

Surat: Demand from Industrial Corridors

Delhi – Mumbai Industrial Corridor

The proposed DFC passes through six states in India, of which, Gujarat

accounts for 38% (564 Km) of total DFC length (1483Km). The node of

DMIC for the Surat district is the Surat – Navsari Industrial Area.

Surat- Navsari industrial area lies within 50 Km of the Dedicated Freight

Corridor in southern Gujarat. This region is well connected by NH-48 and

NH-6.

The key sectors for export oriented industrial activities are

Pharmaceuticals, Textiles, Gems & Jewellery, Chemicals and

Petrochemicals.

Source: Industries Commissionerate, GoG

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Surat: Connectivity

Road Connectivity • NH-48 connects Surat with Mumbai (307 km), Delhi

(1,034 km), Kolkata (1676 km), Chennai (1,371km)

and Hyderabad (824km).

Rail Connectivity • The primary rail connectivity in Surat district is along

the main western railway route running on a north-

south alignment along the western coastal edge of

the district.

Port Connectivity • Magdalla and Hazira port are located at a distance of

~20 Kms from Surat

• The cargo handled by Magdalla and Hazira Port in FY

16 was 21.7 Mn Tonnes and 7.9 Mn Tonnes

respectively

Airport Connectivity • Surat airport is located at a distance of about 15 km

from Surat City

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Surat: Existing Facilities

Source: MoRTH

S.

No

Name of the

logistics facility Location Key Description

1 MMLP, CONCOR and

DFCCIL Vadodara

Area: 130 Acres

Implementing Agency: CONCOR

2 MMLP, DFCCIL Vapi Located on NH-48

Implementing agency: DFCCIL

3 Inland Container

Depot, CONCOR Anklehswar

Traffic handled in FY 16

EXIM: ~57,764 TEUs

DSO: 3,584

Key Import Commodities: Wood

Pulp, Carbon Black, Craft Pulp

Key Export Commodities: Glass

Bottles, Hydrochloric Acid,

Raisings, Copper Cathode, Rubber

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Inland Container

Depot, Tumb, Navkar

Corporation

Umergaon

Area: 70 Acres

146 KM from Hazira Port and 176

Km from Nhava Sheva

Source: CONCOR, DFCCIL, MORTH

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Surat Logistics Park: Way forward

June 2017 Oct 2017 Dec 2017 Mar 2018

Completion of

pre-feasibility

assessment

Completion of

Detailed Project

Reports

Invitation

of bids

Appointment of

concessionaire

Mr. Pavan Tej Yerur ptyerur@kpmg.com +91-7032-916-321

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Contact details: Mr. Ravinder; Email: ravinder@nhai.org; Phone: +91-95607 15959