By Rahul Chandran Tue, Aug 19 2008. 11:51 PM IST for www.LiveMint.com
Mumbai has emerged as the most preferred destination for logistics and warehousing companies with proposed investments for setting up logistics parks in the city touching around $200 million (Rs872 crore), a report said.
Despite their lack of support infrastructure, smaller cities such as Nagpur in Maharashtra, Gurgaon in Haryana, Visakhapatnam in Andhra Pradesh, were identified as emerging locations, based on their proximity to manufacturing centres, geographic location and accessibility, according to the report released by real estate consultant Cushman and Wakefield Inc. on Tuesday.
“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 a statement from Cushman and Wakefield India’s joint managing director Sanjay Dutt.
The report estimates that 110 logistics parks, spread over 3,500 acres and costing $1 billion, will be operational by 2012 across the country. This is apart from some 45 million sq. ft of warehousing space costing $500 million that will come up during the period.
Bangalore, Indore Ambala, Ahmedabad, Jamshedpur and Alwar were classified as promising hubs in the report.
Kolkata, Chennai and Hyderabad were rated as “established logistics hubs”.
“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.
Indian logistics industry is expected to grow at 15% to 20% per annum, reaching its revenues of $385 billion by 2015, said a report prepared by Cushman and Wakefield, which term the sector as new powerhouse for the real estate sector in times to come.
As per C&W estimates, the market share of organised logistics players is expected to double to approximately 12% in the same period. The new logistics centres will give big boost to the industrial activities in the country.
The report revealed that 110 logistics parks spread over 3,500 acres at an estimated cost of $1 billion are expected to be operational by 2012. Around 45 million sq ft of warehousing space will be ready in the next four years.
Most of these developments are concentrated in 14 locations. Sanjay Dutt, joint MD, C&W India said, “Since almost one-third of the total realty development in the sector is expected to take place in emerging locations, many tier-2 and tier-3 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.
“Mumbai has emerged as the preferred location for the development of logistics parks with an investment of approximately $200 million. The city will witness the development of seven to eight logistics parks on 600 acres around Mumbai.
The other cities that fall within the established locations include Kolkata, Chennai and Hyderabad. These locations are characterised by excellent port, rail and road connectivity and are witnessing significant investment in infrastructure, said the report. High concentration of organised retail, established manufacturing hubs and proposed SEZ developments will further augment the attractiveness of these locations.
Besides the established cetres, a number of hubs like Nagpur, Vizag and Gurgaon have also emerged. But currently they are lagging behind in support infrastructure. However, due to high ratings on other parameters such as geographic location, existing and proposed manufacturing clusters and SEZs and accessibility, they are promising locations for the purpose.
A number of infrastructural developments are taking place in these locations, which would increase the attractiveness of these locations in the next 3-5 years, said the report. Gurgaon has advantage of being situated on the golden quadrilateral with easy access to the dedicated freight corridor.
Posted by Thomas Philip, P Square International
August 20, 2008
Categories: Uncategorized . Tags: Global City, India, International Financial Center, Investment, Logistics, Mumbai, P Square International, Thomas Philip . Author: Thomas Philip
No Comments Yet
No comments yet.
Comments RSS
TrackBack Identifier URI
Leave a comment
You must be logged in to post a comment.
