DRAFT POLICY FOR LOGISTICS PARKS

1. Introduction:

This policy document is intended for guidance of officials of Ministry of Railways,

Project Authorities in charge of SEZs and Industrial Townships and prospective

developers of Logistics Parks to promote development of Logistics Parks with a

significant role for rail transport in the integrated supply chain.

2. Multi-Modal Logistics Parks:

For the purpose of this policy, a multi-modal logistics park (MLP) is defined as a

rail-based inter-modal traffic -handling facility complex comprising container

terminals, bulk/break- bulk cargo terminals, warehouses, banking and office space

and facilities for mechanized handling, inter-modal transfers, sorting/grading, cold

chain, aggregation/disaggregation etc. to handle freight. These would generally be

developed by the project authorities in charge of SEZs/industrial townships or

prospective developers for use of multiple users on the terms and conditions set out

in this Policy. However, all MLPs need not have all the features.

3. Objective:

The basic objective of the policy is to enhance the presence of rail transport in the

overall transport chain and attain increased freight traffic volumes and movement

by rail through reduction in the logistics costs for the users .This would be

achieved through minimization of multiple handling, provision of various logistics-

related services close to a rail transport hub and better integration with logistics and

supply chains.

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4. Types of Logistics Parks:

Three types of Logistics Parks are envisaged:

(a) Large Multimodal Logistics Parks (LMLPs): LMLPs would be the

facilities set up on more than 300 acres of land. These would be well-served by rail

and road corridors and would function as magnets for aggregation and distribution

of cargo and transfers from rail to other modes and vice versa. These would provide

all logistics related services like storage, aggregation/disaggregation and processing

of materials/goods prior to transshipment (e.g., unpacking and repacking to

different sized lots, labeling, unitization, sorting and inspection of goods, assembly,

minor fabrication, packaging etc.), warehousing facilities, banking and office space

etc. LMLPs shall be equipped with a range of facilities for handling multiple

commodities and containers.

(b) Medium-sized Multimodal Logistics Parks (MMLPs): These would be

smaller in size and scale than LMLPs developed on 50-300 acres of land and would

include most of, but all not the facilities of LMLPs depending on the site-specific

requirement.

(c) Small Multimodal Logistics Parks (SMLPs) : These would be smaller

versions of logistics parks created on less than 50 acres of land.

4.1 LMLPs, MMLPs and SMLPs would generally be multi-user facilities ; however,

some MMLPs and SMLPs could also include facilities meant for handling

dedicated needs of major rail freight users. at the unloading end.

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5. LMLPs, SMLPs and MMLPs could be located either at SEZs/industrial townships

or private land adjoining railway lines. MOR would facilitate setting up of such

logistics parks in SEZs or large industrial townships in consultation with State

Governments and the relevant project authorities. Prospective developers may also

identify suitable locations for logistics parks (LMLPs, MMLPs or SMLPs) near the

existing railway network and approach the Zonal Railway concerned. The MLP

operator will be responsible to arrange essential infrastructure facilities like road,

electricity, water etc. and also other government and statutory clearances for

development and provision of logistic services. It will be free to outsource setting

up of independent logistics facilities like warehouses, CFSs, distribution centre,

business centres, etc. within the MLP to individual users/service providers.

Railways shall provide rail connectivity and assist in planning and designing of rail-

handling information in terms of the provisions of this policy.

6. Nodal Office/Agency :

(a) ED/Freight (Mktg.), Ministry of Railways (Railway Board) would be the overall

nodal officer for the implementation of the policy. His contact details are –

ED(FM), R. No.454, Ministry of Railways, Rail Bhavan, New Delhi – 110 001.

Phone No.43920 (Rly.), 23385222 (mtnl) and e-mail address

edfm@rb.railnet.gov.in.

(b) At the Zonal Railways, Chief Traffic Planning Managers (CTPMs) would act as the

interface with the prospective developers/project authorities.

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(c) For the locations lying alongside the alignment of the Dedicated Freight Corridor,

the nodal agency would be Dedicated Freight Corridor Corporation of India Ltd.

(DFCCIL), 6th Floor, Palika Bhavan, Sector – 13, R.K. Puram, New Delhi, Phone

No.24122954, e-mail address – dir.opnbd@dfcc.in.).

7. MLPs in SEZs or Industrial Townships or on private land adjoining the

railway line:

The following policy would be followed to facilitate development of rail-linked

MLPs :

(a) MOR through its Zonal Railways and also through direct contact with Ministry of

Commerce would play a proactive role to keep track of developments of

SEZs/Industrial Townships. CTPMs would initiate dialogue with the project

authorities/prospective developers including Railway PSUs to assess the plans and

transport patterns/ volumes likely to arise in the wake of the development of

SEZs/Industrial Townships, keeping EDFM at Railway Board apprised. Project

Authorities and Prospective Developers would be welcome to contact CTPMs of

concerned Zonal Railways or ED(FM) at Railway Board or DFCCIL.

(b) The prospective developer or the State Government or the Project Authority or an

entity selected by the Project Authorities ,as the case may be, may approach MoR

with the proposal for rail connectivity. The railway land at the serving station for

connectivity and the land to be made available by the State Government/Project

Authority for the purpose would be clearly marked in the proposal.

(c) Assessment of potential rail volumes under various possible scenarios and service

provision assumptions, identification of serving station and terminal

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 infrastructure/rail connectivity requirements would be done by a survey. The survey

will be undertaken by the applicant and the report would be submitted to the

Railways.

(d) The terminal infrastructure would be planned for full rake handling on engine on

load basis. The rail connectivity and rail infrastructure at the terminal shall be

finalized as per the advice of Railways.

(e) The Project Authorities/MLP Developer would bear the costs of junction

arrangements, S&T works, OHE works and the requisite yard modifications at

serving station in the first instance. This shall be reimbursed in terms of the

provisions of the [Liberalised Siding Policy] of MOR. The cost of the terminal

facilities would be borne by the project authorities who may get the work executed

either on their own or through the selected MLP developer or through MoR on a

deposit-work basis.

(f) The rail connectivity would generally be in the nature of a private siding and the

cost thereof would be borne by the project authorities/the MLP developer.

However, in case the connectivity involves laying new rail track for over a distance

of 10 (ten) kms or longer, MoR and the project authority/the MLP developer may

by mutual agreement decide to jointly develop the connectivity on such terms as

may be mutually agreed based on the cost of the connectivity , the traffic to be

handled and other relevant factors .

(g) Rail tariff will be collected by the Railway’s booking staff. However, the MLP

developers as owners/providers of the rail infrastructure for MLPs would be

compensated by way of reimbursement terminal charges at rates to be notified by

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 Railway Board from time to time. They will also be permitted to realize wharfage

charges and charges for other value -added services provided by the MLP.

(h) Railways would facilitate booking/handling of general freight carried in Railway

wagons or Special Purpose Wagons or Container Flats for/from the MLPs in

accordance with the scale of facilities made available in the MLPs and open the

MLP as a booking/handling point as per demand. Developer will also be free to use

the MLP as a Container Rail Terminal (CRT) for the container operators in

accordance with provisions of the agreement signed between container train

operators and MOR.

(i) The MLP operator will be liable for safe custody of the goods under their charge for

the time the goods remain with them.

(j) Essential requirements such as responsibilities of operator towards Railways in

ensuring fast releases of Railway stock placed in MLPs, realization and remittance

of demurrage charges for railway wagons detained in MLPs, installation of

essential infrastructure like railway weigh-bridges,the standard of service, and role

and responsibility of the Railway agencies in maintenance/certification of the

infrastructure/lines, and providing commercial staff etc., would be enumerated in an

agreement between the project authorities and the Railways.

(k) A traffic benchmark shall be mutually agreed to. The project authorities and MLP

developer would market the facilities aggressively and strive to achieve the levels

of traffic agreed to

(l) MoR will facilitate lease of unused Railway land to the project developer in case

some portion of railway land is required for providing linkages between private

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 land and the railway station serving the proposed MLP. This will be arranged in

accordance with the extant policy of Railways.

8. Dedicated logistics parks (DLPs) on private land adjoining Railway stations:

For customers intending to develop DLP facilities on private land, existing rules

governing private/assisted sidings would apply. However, customers who develop

modern handling facilities at both loading and unloading ends, provide requisite

rolling stock under WIS and offer minimum stipulated traffic, would be offered

attractive freight concession for a specified number of years . However, certain

commodities like coal, iron-ore and other mineral ores would be excluded from the

scope of such concession.

9. Multimodal Logistics Parks on Railway Land:

LMLPs and SMLPs on railway land will generally be developed through PPP as

per the framework, process, documentation and guidance of MOR. MoR, however,

at its sole discretion, may entrust development of a few MLPs on identified sites to

its PSUs or a logistics company formed by MoR or its PSUs. In case such an MLP

is proposed to be set up on Railway land (existing or proposed to be acquired for

this purpose), Zonal Railway shall identify potential sites and get in touch with

EDFM, Railway Board for further guidance.

10. Dedicated Logistics Parks on Railway Land :

Railways may, however, use some of the existing surplus land near the railway

stations,not suitable for LMLPs , to develop terminals with modern handling

facilities for major rail freight customers.

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 Potential sites would be identified by Zonal Railways either on their own or through

studies commissioned by them or on the basis of proposals received and examined

by them. An updated list of such sites shall be prepared annually and displayed on

MOR’s official website in the month of June.

Handling time for rakes and the minimum number of rakes to be handled would be

stipulated. Preference should be given to Railway’s PSUs wishing to develop

terminal facilities at both ends on common-user basis and consignors/ consignees in

that order. The capital cost is to be entirely borne by the developers.

User-ship right to the MLP or DLP thus developed would be made contingent on

meeting the traffic commitment on sustained basis for the pre-determined period,

which could be extendable. Otherwise, the DLP could be allowed for use by other

traffic offerors or in extreme cases taken back by Railways.

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