The Impact of Logistics Infrastructure Development on Economic Growth: A Case Study of Multi Modal Logistics Park Chennai

Abstract

Ports are the link between a country’s industries and its export markets. How well these ports work has an impact on the reliability of the supply chains that depend on them. Chennai Port Authority, one of India’s gateways on the Bay of Bengal has spent the several years making its operations better even though the size of the port has not changed. This paper looks at what this modernization has achieved using the Chennai Port Authority’s Administration Report and Annual Accounts and yearly reports from 2021 to 2025 in the context of the Multimodal Logistics Park, Chennai. Cargo throughput, container traffic, vessel turnaround time and pre-berthing detention are reviewed each year against the port’s berth, terminal, rail and road capacity. The infrastructure data shows no change over the five years. There are still 24 berths, two container terminals and 274 hectares recorded in 2025 as in 2021. Against this base cargo throughput increased from 48.06 million tonnes in 2021–22 to 54.18 million tonnes in 2024–25 before dropping to 50.00 million tonnes in 2025–26. Container traffic rose every year reaching 1.67 million TEUs. Turnaround time and pre-berthing detention improved constantly going down to 0.82 days and 1.20 hours by 2025 to 26. Congestion, lack of space and the effects of the pandemic were problems in the early years. Together the data suggests that digitalization, better processes and better connections to the hinterland not expanding land use were the reasons for the improvements in the port’s operations. This offers a model, for Indian ports that have limited space.