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Kerala’s logistics sector is on the threshold of a major expansion with domestic and overseas firms evincing interest in setting up parks and warehousing facilities in Kochi and its suburbs, promising to turn the city into a logistics hub for south India. The interested firms include the US-based Panattoni for a logistics-cum-industrial hub, Adani Group, Flipkart, Avikna, and TVS Industrial & Logistics Parks. The proposed logistics parks are expected to bolster the State’s supply chain efficiency, besides generating ample job opportunities.
P Rajeeve, Kerala Industries Minister, has stated that Panattoni has identified a 100-acre plot owned by Binani Zinc at Edayar Industrial Estate for its facility. Discussions are on and construction is expected to start shortly. He added that Kerala holds immense potential in the logistics sector, thanks to the connectivity offered through four airports, two major seaports, waterways, and highways.
The upcoming developments in the logistics sector will enable the State to woo bigger investments in the manufacturing sector as well, he said. The State has recognised logistics as an industry under the Kerala Industrial Policy, enabling infrastructure-focused investments. Logistics parks, including mini logistics parks, are proposed to be notified as ‘industrial areas’ to facilitate ease of operations under the Kerala Industrial Single Window Clearance Board Act, says APM Mohammed Hanish, Principal Secretary, Industries.
Kochi to host 7th edition of India Boat & Marine Show from January 22-24 DP World handles more than 8 lakh TEUS in Kochi in 2024, post 17% rise Air Kerala declares CIAL as its official hub for operations “We are expecting more such logistics hubs to come up across the State, especially with the presence of the Vizhinjam terminal and the proposed manufacturing smart city in Palakkad along the Kerala-Bangalore Industrial Corridor,” he adds. For entrepreneurs looking to invest in the logistics sector, the State offers a favourable ecosystem, he says, pointing to its strategic location, and the availability of a robust infrastructure, policy support and skilled workforce. The government has allocated over ₹5,000 crore for logistics infrastructure, including the Kozhikode integrated logistics park.
It is readying policies to tap more opportunities with the commencement of operations at Vizhinjam and the decade-old Vallarpadam terminal in Kochi. Kerala’s integration with the national policy aims to reduce logistics costs to match the global benchmark of 8-10 per cent. There are also plans to start rail-based multi-modal logistics parks in Kochi and Kozhikode to boost regional trade efficiency, industry sources say.
A senior official in the State industries department points out that Kerala consumes more than 6 per cent of the country’s fast-moving consumer goods and the government intends to tap this potential. The growing warehousing market in Kochi is also an added attraction for logistics services. Knight Frank India had, in its 2023 report, hinted that the transaction volumes in Kochi’s warehousing market shot up by 239 per cent to 0.
9 million sq ft from 0.3 million sq ft in the previous year. Sikander AM, CEO, Sitics Logistic Solutions, says Kerala’s logistics sector is witnessing unprecedented growth powered by investments from both global and domestic players.
With its strategic location, extensive coastline, and evolving infrastructure, the State is positioning itself as a key player in India’s logistics landscape, he says. The upcoming parks will feature advanced warehousing facilities, sustainable infrastructure, and integrated supply chain solutions, catering to the growing needs of industries and e-commerce. The investments will not only create significant infrastructure but also generate several other economic benefits.
From creating thousands of jobs to reducing logistics costs and empowering micro, small and medium enterprises (MSMEs), the ripple effects will be felt across the State, Sikander says. Alongside the growth trajectory, it is imperative for the State to focus on sustainable practices and technological innovation to ensure long-term success, he says. The State’s logistics revolution promises to be a significant milestone in India’s journey to becoming a global leader in trade, he adds.
CS Kartha, chairman of Karthas Academy (School of Shipping & Logistics), says the upcoming logistics parks will usher in a transformative phase for the region, creating diverse job opportunities and boosting trade efficiency. The jobs would range from warehouse management, transportation coordination, inventory control, and supply chain analysis to operations management. Comments.
