Mumbai Leads Logistics Investment, Smaller Cities Emerge as Promising Hubs
Mumbai has emerged as the preferred destination for logistics and warehousing companies, attracting proposed investments of approximately $200 million (Rs 872 crore) for the development of logistics parks, according to a recent report.
Despite lacking comprehensive support infrastructure, smaller cities such as Nagpur (Maharashtra), Gurgaon (Haryana), and Visakhapatnam (Andhra Pradesh) are gaining recognition as promising locations. Their proximity to manufacturing centers, advantageous geographic positioning, and accessibility contribute to their appeal, as per the report released by real estate consultant Cushman and Wakefield Inc.
"Since almost one-third of the total realty development in the sector is expected to take place in emerging locations, many tier II and tier III cities and peripheral locations that offer good connectivity to multiple markets will witness increased activity from logistics players, providing a thrust to the real estate market,” said Cushman and Wakefield India’s joint managing director Sanjay Dutt.
The Cushman and Wakefield report projects that 110 logistics parks, encompassing over 3,500 acres and requiring a $1 billion investment, will be operational across the country by 2012. Furthermore, approximately 45 million sq. ft of warehousing space, costing $500 million, is anticipated to be developed during the same period.
Several other cities have also been identified as potential logistics hubs. Bangalore, Indore, Ambala, Ahmedabad, Jamshedpur, and Alwar are categorized as promising locations within the report. Meanwhile, established logistics hubs include Kolkata, Chennai, and Hyderabad.
“Logistics people have started tapping (areas) closer to manufacturing locations because our arterial distribution networks such as the railways and the national highways are clogged,” said C.S. Verma, vice-chairman and managing director of logistics company ACV Logistics Pvt. Ltd.