Indian logistics space to surpass int’l benchmark
The JLL report titled ‘India: Evolution of Integrated Logistics – Aiming Transformation through PAGI’ says optimised use of roads is possible by building up enhanced hinterland infrastructure and specialised storage space spread over the country. Attractive investment opportunities are looking at an integrated and efficient solutions approach.
According to the JLL Industrial Services Research report, in Indian logistics sector, 60 per cent of transportation happens through a strong road network against the global average of 30-40 per cent. Warehouse, one of the prime elements of the industry, has become one of the most attractive real estate asset segments for domestic and foreign investors. It has witnessed 38 million sqft of absorption in 2019. According to the research paper, India is pre-dominantly dependent on roads for connecting production centres to warehouses and consumers.
The central government’s focus is on developing a comprehensive plan to invest in infrastructure ports, airports and rail among others, with an estimated investment outlay of
`100 about lakh crore by the next five years. The initiatives, besides creating a platform for hinterland infrastructure and other components, are gaining immense momentum among investors. The report also foresees rail-linked logistics facilities, focusing on multi-modal connectivity, to be a focus.
Commenting on the same, Yogesh Shevade, Head – Industrial Services, JLL India, says, “India’s intermediate logistics framework is not a new phenomenon. Over the last 10 years, the country’s road, rail, port, airport and inland waterways added a new dimension to the growth story complemented by the governmentsponsored Bhartmala and Sagarmala initiatives, Jal Marg Vikas Project, as well as railway station re-development, creating a huge platform for future expansion of logistics infrastructure. Through the National Logistics Policy, the central government is focusing on development of a fully-integrated logistics network with modern technology and automation.”
For exploring this sectoral opportunity, JLL Industrial Services is launching PAGI (Port, Airport and Global Infrastructure) practice, says Shevade. “Aligned with global experience, the practice will aim at multi-dimensional service opportunity for our global and domestic clients,” he adds.
Over the last 10 years, the country’s road, rail, port, airport and inland waterways have added a new dimension to the growth story
The report also highlights the challenge of creating efficient lastmile connectivity, availability of land to develop financially-sustainable logistics infrastructure, capacity building for human resource, an investment-friendly policy framework and seamless compliance process.