Mumbai, Aug 19 (UNI) Mumbai has topped the list of the most attractive logistics location in the country for an industry that is growing at 15-20 per cent and expected to touch USD 385 billion by 2015.
A study conducted by Cushman&Wakefield, an international real estate service firm, has revealed that the city has emerged at the top with an investment of approximately USD 200 million planned towards the development of seven to eight logistics parks on approximately 600 acres of land around the Metropolis.
It led other locations on various parameters like logistical infrastructure, existing and proposed manufacturing clusters, consumer markets, state and union government initiatives and geographical location.
The report Highlighting the advantages of Mumbai was Bhiwandi, the largest warehousing location on the outskirts of the city and Panvel, which is fast emerging as a warehousing cluster due to its proximity to the Jawaharlal Nehru Port Trust (JNPT). Panvel has an advantage of availability of large land parcels. Rentals of warehouses in the two locations are also expected to go up by 15 to 20 per cent in the next two years, and demand for warehouse and logistics services are expected to accelerate further due to increase in foreign trade and the upcoming Maha Mumbai Special Economic Zone (SEZs), said the report.
Other cities that fall within the established locations include Kolkata, Chennai and Hyderabad with all the locations characterized by excellent port, rail and road connectivity and significant investment in infrastructure.
High concentration of organised retail, established manufacturing hubs, proposed SEZ developments have further augmented the attractiveness of these locations.
Emerging hubs include locations such as Nagpur, Vizag and Gurgaon have also been rated. Though lacking infrastructure, they have high ratings on other parameters such as geographic location, existing and proposed manufacturing clusters and SEZs and accessibility which are expected to improve further in the next three to five years.
'' Since almost one-third of the total realty development in the sector is expected to take place in emerging locations, many tier-two and tier-three 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,'' stated, Cushman&Wakefield India Joint MD Sanjay Dutt.
Heightened manufacturing activities, and proposed SEZs have increased the potential of locations like Bangalore, Indore, Alwar, Jamshedpur, Ahmedabad and Ambala of being developed as logistic hubs. However, currently these locations do not rate high on parameters like geographic location, investment in infrastructure, have moderate retail penetration and limited presence of multi layered manufacturing industries. These locations however are touted to be emerging as major manufacturing hubs in the near future, which be critical in promoting the logistics industry in these regions, the report stated.
There are 110 logistics parks spread over approximately 3,500 acres in 14 locations at an estimated cost of USD 1 billion are expected to be operational by 2012. Another 45 million sq ft of warehousing space worth USD 500 million is also expected to be developed alongside, and these have a direct bearings on the real estate developments in and around such locations, added the report.
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