Where are logistics parks most feasible?

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1. Near Major Highways and Freight Corridors

Logistics parks are most feasible in locations with direct access to:

  • National Highways (NH) such as NH-48, NH-44, and NH-16
  • Expressways and ring roads connecting metropolitan regions
  • Dedicated Freight Corridors (DFCs) like the Delhi–Mumbai DFC
  • Interstate border points facilitating inter-regional trade

These corridors enable efficient goods movement, reduced transit time, and lower operational costs, making them ideal for logistics infrastructure.

2. Close to Urban Consumption Centers

Feasibility is high around Tier 1 and Tier 2 cities where demand for fast delivery and distribution is rising. Key zones include:

  • Delhi NCR, Mumbai, Bengaluru, Chennai, and Hyderabad
  • Pune, Ahmedabad, Jaipur, and Kolkata peripheries
  • Coimbatore, Indore, Lucknow, and Bhubaneswar in Tier 2 cities

Logistics parks in these regions serve e-commerce, FMCG, retail, and pharma sectors effectively due to proximity to consumption markets.

3. Proximity to Ports, Airports, and Rail Terminals

Multimodal connectivity enhances the feasibility of logistics parks, especially near:

  • Major seaports like Nhava Sheva (Mumbai), Mundra (Gujarat), Kamarajar (Chennai), and Visakhapatnam
  • Cargo-handling airports in Mumbai, Delhi, Hyderabad, and Bengaluru
  • Railway container depots and inland container depots (ICDs)

These locations support export-import trade, reduce last-mile bottlenecks, and attract global logistics providers.

4. In Designated Logistics and Industrial Clusters

Government-supported industrial zones and corridors enhance viability due to planned infrastructure and incentives. Examples include:

  • National Logistics Parks (NLPs) under the PM Gati Shakti initiative
  • Industrial corridors like DMIC, CBIC, AKIC, and BMEC
  • SEZs and warehousing zones developed by state industrial bodies (e.g., MIDC, KIADB, TSIIC)

Such regions often offer plug-and-play facilities, single-window clearance, and policy benefits, supporting large-scale logistics operations.

5. Regions with Large Land Parcels and Lower Costs

Feasibility improves in areas that offer:

  • Affordable and large-acre plots suitable for warehouses, docks, and vehicle yards
  • Lower development costs compared to congested urban cores
  • Availability of labor and utility services

Outskirts of cities like Bhiwandi (Maharashtra), Kanchipuram (Tamil Nadu), Kheda (Gujarat), and Nagpur (central hub) are prominent examples.

6. Locations with High E-commerce and Retail Activity

The rapid growth of e-commerce has pushed demand for logistics parks in areas supporting:

  • Same-day and next-day delivery infrastructure
  • Proximity to e-commerce warehouses, fulfillment centers, and returns hubs
  • Regions with growing middle-class and consumer spending patterns

Feasibility is highest in metros and rapidly urbanizing cities where delivery timelines are key to competitive advantage.

7. Border Trade and Transit Regions

Cities and towns located near state or international borders see strong logistics growth due to:

  • Transit and customs handling for cross-border movement
  • Warehousing for distribution to multiple regions or countries
  • Strategic role in import-export pipelines (e.g., northeast India, Punjab, Rajasthan borders)

These are ideal for specialized logistics parks dealing with bulk cargo, agri-exports, or transit goods.

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