India set to witness around 110 logistics parks by 2012
Four more years to go and India will hold 110 logistics parks spread over approximately 3,500 acres being developed at an estimated cost of one billion dollars. The ballpark figure has been brought in by the Cushman & Wakefield (C&W) report, 'Logistics Industry Real Estate's New Powerhouse', which depicts that around 45 million square feet of warehousing space would be developed by various logistics companies by 2012. According to the study, the Indian logistics industry is expected to grow annually at the rate of 15 to 20 per cent. This would make the revenues reach an approx figure of
$385 billion by 2015. As per C&W estimates, the market share of organised logistics players is also expected to double to approximately 12 per cent in the same period.
Mumbai has emerged as the preferred location for the development of logistics parks. With an investment of approximately 200 million dollars, development of around seven to eight logistics parks on approximately 600 acres of land in Mumbai is already planned. 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. High concentration of organised retail, established manufacturing hubs and proposed SEZ developments further augment the appeal of these locations.
Nagpur, Vizag, Gurgaon, Bengaluru, Indore, Alwar, Jamshedpur, Ahmedabad and Ambala are currently lagging behind in support infrastructure but are promising logistical hubs due to high ratings on other parameters including geographic location, existing and proposed manufacturing clusters and SEZs. There are many infrastructural developments taking place in these locations which will increase the attractiveness of these over the next five years.
The report reveals that the demand for warehouses and logistics services is expected to accelerate further due to the increase in foreign trade and the upcoming Maha Mumbai Special Economic Zone. Meanwhile, warehouse rentals are also expected to increase by 15 to 20 per cent over the next two years.
Date :- 08/12/2008
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