India urban logistics

Urban logistics spaces in India are expected to exceed 7 million sq. ft by 2022, as demand surges, according to JLL report 'India Urban Logistics - Are dark stores revolutionizing the sector?' The urban logistics industry in India is at a very nascent and on the cusp of going mainstream. Demand will be supported by freight congestion that is impacting cities and communities and the need to mitigate the associated environmental impact of vehicles on these locations.

According to JLL, urban logistics will help address infrastructure, community, and environmental concerns via the efficient movement and transport of goods in urban areas through last-mile storage spaces. Furthermore, urban logistics is expected to expand significantly beyond 2022, as the increasing trend of faster goods distribution and e-commerce penetration increases nationwide.

India urban logistics
“Urban logistics will play a more front-and-centre role in the metropolitan economies of India as consumers become more tethered to the convenience, transparency and hygiene benefits of online purchasing. The surge in e-commerce has led to increased storage space and logistic delivery capabilities, thereby giving owners and developers a clear opportunity to capitalise on the demand, which we believe will easily exceed 7 million sq. ft by 2022,” said Radha Dhir, CEO and Country Head, India, JLL.

“Today, last-mile delivery takes up more than 47% of e-commerce transportation costs. Urban logistics have come in as the perfect bridge to reduce these costs as well as increase delivery efficiency. With increased warehouse and logistics requirements, business models are evolving and creating a vast opportunity for the industrial sector. Furthermore, the shift from retail to urban logistics is generating a change in the demand curve for highly automated and sustainable spaces, encouraging e-commerce and 3PL players to implement micro fulfilment technology to maximise efficiencies and optimise last-mile logistics to boost their businesses,” said Yogesh Shevade, Head – Logistics & industrial, India, JLL.

Dark stores are driving efficiencies, faster delivery capabilities and reducing logistics cost
Dark stores house goods used to fulfil orders placed online, for the last mile connectivity and have the potential of saving anywhere between 10%-30% of logistics costs. Certain wholesale distribution centre businesses are moving towards dark store concepts in India. Since real estate cost in urban locations for logistic activity cannot meet retail rental expectations, dark stores are deemed ideal replacements, as they also serve as cross-dock stores. These can be planned in unused commercial building basements, parking spaces, mall parking, defunct facilities, etc. For grocery business, replenishment to dark stores can be twice or thrice a day, and typical door deliveries will be morning or in the evenings. Some e-commerce players operate daily essentials to enter customer wallets. Hence compliance is not a showstopper.

According to JLL, generally, to handle 1000 Stock Keeping Unit (SKUs), warehouse space can range between 2,000-20,000 sq. ft. depending on product type and Days of Cover (100% inventory cover for number of days). Hence, it is possible to save anywhere between 10%-30% of logistics costs using dark stores.

India urban logistics

The need for greater automation is driving sustainable demand for urban logistics spaces.
Collaborative logistics will also result in a more sustainable urban logistics infrastructure in India, JLL believes. Key initiatives such as vehicle load consolidation, automatic route mapping, data gathering, and analysis, will lead to fewer delivery vehicles on the road and savings on fuel and emissions.

The opportunities with urban logistics in resolving SKU problems are manifold. SKUs are becoming cost-effective real estate alternatives helping companies avoid high traffic areas in cities, serving numerous online stores simultaneously and far more variation per item at a far lower space cost.
GA Infra wins contract for India's first National Metro Rail Knowledge Centre
GA Infra has been awarded the contract for the construction of the country's first National Metro Rail Knowledge Centre. The centre will be located at the Vishwavidyalaya Metro Station in Delhi and will be built through a Public-Private Partnership

Read more ...

UP’s CM launches tunnel construction work at Ramlila Maidan in Agra
Uttar Pradesh CM, Yogi Adityanath, has launched the tunnel boring machine (TBM) "Yamuna" at the Ramlila Maidan in Agra, for the construction work of the Agra Metro Rail Project. The CM highlighted the significance of Agra as a historical city and

Read more ...

RIL launches India's first Hydrogen Internal Combustion Engine for heavy-duty trucks
Reliance Industries Limited (RIL) has launched India's first Hydrogen Internal Combustion Engine (H2ICE) technology solution for heavy-duty trucks. The launch was conducted by Prime Minister Narendra Modi at the India Energy Week in Bangalore. The

Read more ...

Kerala plans 6.8-km long tunnel road project
The Kerala government has approved the construction of the Wayanad Tunnel Road project connecting Anakampoyil in Kozhikode to Meppadi in Wayanad. The project involves the construction of twin tunnels with a four-lane approach

Read more ...

Railway approves Pune-Nashik high-speed rail project
The Indian Railways has granted in-principle approval for the Pune-Nashik high-speed rail project, according to Deputy CM Devendra Fadnavis. Following a meeting with the Railway Minister, officials from Maharashtra and the Railways will jointly assess

Read more ...

India starts road construction at tri-junction in NE
India has initiated the construction of a 78-kilometer strategic road in Arunachal Pradesh, near the crucial tri-junction of India, China, and Myanmar. The project, estimated to cost Rs 200 crore, will connect Dong village to Jachep camp and is expected

Read more ...

Odisha CM inaugurates ₹1,600-cr development projects in Koraput
Chief Minister Naveen Patnaik attended the 75th anniversary of Vikram Deb Autonomous College in Jeypore and announced development projects worth ₹1,600 crore for the district. The CM declared the construction of a modern auditorium with a seating

Read more ...

Decks cleared for ₹2,635.89-cr Bridge over Ganga in Patna
The construction of the seventh bridge over the Ganga River in Patna, Bihar has been given the green light by the Ministry of Road Transport and Highways. A tender has been issued for the project, with an estimated cost of ₹2,635.89 crore, to

Read more ...

MTPs in Mumbai get ₹1,121.21-cr budget booster
The Mumbai Urban Transport Project (MUTP) has received a significant 91% increase in funding with ₹1,100 crore allocated for the project in the Union Budget 2023-24. Out of the total ₹1,121.21 crore allocated for various Metropolitan Transport Projects

Read more ...

J&K govt plans cargo terminals along Baramulla-Banihal rail line
The Jammu and Kashmir government has decided to construct cargo terminals along the Baramulla-Banihal rail line. The terminals will be located at five stations including Srinagar, Baramulla, Sopore, Awantipora, Pampore, and Budgam. The aim of this move

Read more ...

Budget infuses ₹10,988.80-cr in NFR Railway
The Union Railway Minister, Ashwini Vaishnaw, announced that the Gross Budget Allocation for the Northeast Frontier Railway for 2023-24 is ₹10,988.80 crores. This marks a 13.75% increase from the previous year's allotment of ₹9,660.14 crores and will be

Read more ...

MMRC to build Rs 8,739-cr Wadala- CSMT metro line 11
The Mumbai Metro Rail Corporation (MMRC) has been tasked with the construction of Metro Line 11 between Wadala and Chhatrapati Shivaji Maharaj Terminus (CSMT) at an investment of Rs 8,739 crore. An order to this effect has been issued by the Urban Development

Read more ...

NHAI expedites Rs 32,000-cr Gorakhpur-Siliguri e-way project
National Highways Authority of India has fast tracked the 520 km long four-lane Gorakhpur-Siliguri Expressway. Starting from UP, the expressway will go to West Bengal after crisscrossing nine districts of Bihar. It will pass through three districts of

Read more ...

MMRDA starts work on Rs 8,416-cr Bridge on Kasheli Creek
MMRDA has started construction work on the final segment of the bridge on the Kasheli Creek, which is a part of the Thane-Bhiwandi-Kalyan line, at an investment of Rs 8,416 crore. The height of the bridge is 15 metres above water levels and comprises

Read more ...

Govt prioritizes 18 road projects under Gati Shakti
In the fiscal year 2023-24, the government in line with Prime Minister Gati Shakti-National Master Plan, has prioritized and fast-tracked as many as 18 critical road infrastructure projects to be completed in the next two years. The Centre is eyeing 67 critical

Read more ...

HAML finalizes alignment for Rs 6,250-cr metro airport line
In order to start construction work on the airport metro line, Managing Director, HAML, N.V.S. Reddy, has finalized alignment by inspecting the entire 10 km stretch for the airport metro line involving an investment of Rs 6,250 crore. He also examined options

Read more ...

CMRL fast tracks Rs 61,843-cr Phase-II metro corridor
Chennai Metro Rail has fast tracked the ground work to start construction of the Phase 2 part of the project with the local agencies acquiring 82% of the required land for the mega metro project worth Rs 61,843 crore. CMRL is keen to commission the Poonamallee

Read more ...

Raheja Group in JV to build 3-acre project in Mumbai
Real estate builder K Raheja’s development arm K Raheja Corp Homes has entered into an agreement to develop a 1-million-sq-ft luxury housing project over an area of over 3- acre prime land parcel at Mahalaxmi locality in South Mumbai. The project will be

Read more ...

BMRCL to extend Green Line Metro to BIEC
Mass transport connectivity on Nelamangala and Mysuru roads is set to get a big boost with the BMRCL's decision to extend the stretch between Manjunath Nagar to Madavara (BIEC). Once work on this line is completed, the green line metro network will be expanded

Read more ...

Plans afoot to build new Mumbai-Goa Expressway
The road connectivity between Mumbai and Goa is likely to get a further boost as an 'express' upgrade with the state government in Maharashtra announcing a new access-controlled high-speed expressway between Mumbai and Goa, similar to the Mumbai-Pune expressway

Read more ...