Sri City launches 500 acres Logistics and Warehousing Park

Written by Businesswire India | New Delhi | Updated: Jul 29 2009, 21:54pm hrs
Sri City Pvt Ltd is developing South Indias largest private sector multi-product SEZ and Domestic Industrial Zone, announced the launch of their exclusive 500 acre Logistics and Warehousing Park at the CII seminar on logistics and warehousing competitiveness, in New Delhi. The Park was inaugurated by Mr Ajay Shankar, Secretary, Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, GOI. This 500-acre Logistics & Warehousing Park will form an exclusive zone in the 5,000+ acre Sri City SEZ with an adjacent Domestic Industrial Zone. 250-acres is allocated in the SEZ for the development of a Free Trade Warehousing Zone (FTWZ) and another 250 acres in the domestic industrial zone to meet the requirements of the growing Indian market. Proximity to 3 Ports Chennai, Ennore and Krishnapatnam and two international airports, Chennai & Tirupathi and access on National Highway 5, sets the right platform for the development of this Park.

The Sri City Logistics & Warehousing Park will attract investors from across the world for developing a world-class logistics hub to cater to the export and domestic markets across all sectors engineering, auto/auto components, renewable energy, textile and agriculture, electronics, IT/BPO and others. The Park is expected to accommodate about 20 large logistics companies and generate employment for more than 3000 people in the industry. This development within the larger development of Sri City SEZ and domestic industrial zone provides an added advantage of a captive client base within Sri City where eventually 300 MNC and domestic companies are estimated to set up their facilities, according to the demand assessment study by Jones Lang LaSalle-Mehraj.

Mr. Ramesh Subramaniam, President, Sri City, said, The Sri City Logistics and Warehousing Park comes at the right time when the $100-billion or Rs 4,70,000-crore logistics business in India is set to boom. The warehousing segment is estimated to be $20 billion Rs 94,000 crores in size, which is growing at a rate of about 14% per annum driven by the outsourcing trend to India & the burgeoning retail market in the country. He also added, the Park will meet the infrastructure facilities required for streamlined operations.

A S Cargo Ltd has entered into an agreement with Sri City as a co-developer to build the warehousing facilities in over 50 acres of land with an investment of Rs 100 crores. The Sri City Logistics & Warehousing Park will be equipped with the state-of-the-art trans-shipment facility and 3PL services, which would fulfill the industrys long awaited need for a park with a large area of land and the right infrastructure that would offer reliability and scalability.

Mr. Amar Rehman, Managing Director, A.S. Cargo Pvt Ltd, said, Our business, especially the warehousing segment, requires large tracts of land. The real challenge has been to get contiguous and developed land, which is one of the prerequisites for the growth of the logistics business. He also said, Players in the logistics business can avail the world-class infrastructure at Sri City such as 10-lane6-lane4-lane2-lane road networks, good power supply in addition to the accessibility of 500-acres of land.

The two day seminar conducted by CII on Building Warehousing Competitiveness - Adopt the Best provided an industry perspective on the challenges and opportunities faced by logistics sector. Mr Ramesh Subramaniam, President, Sri City Pvt Ltd, who was present at the occasion, gave his insights into the growth of the sector in his speech on Warehouses in Logistics Parks- The Future. The CII Logistics Task Force cited that the challenge to organized logistics and warehousing solutions would be fulfilled with the availability of vast tracts of land and infrastructure for the development of the parks.