DP World signs pact with MP to develop Powarkheda logistics hub

DP World has signed an agreement with the Government of Madhya Pradesh to develop the Powarkheda Logistics Composite Hub, an inland logistics facility aimed at strengthening export supply chains and improving freight movement in Central India. The agreement was signed in Davos on the sidelines of the World Economic Forum.

The agreement was exchanged in the presence of Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, and Dr Mohan Yadav, Chief Minister of Madhya Pradesh. The project is positioned as part of efforts to improve logistics efficiency and connect production centres in the state with global trade routes.

The Powarkheda hub is planned as a rail-linked inland logistics gateway that will connect central districts of Madhya Pradesh with Jawaharlal Nehru Port in Nhava Sheva. The facility is intended to support containerised exports and domestic cargo movement while reducing dependence on road transport for long-haul freight.

According to the state government, the project supports Madhya Pradesh’s objective of strengthening export infrastructure and improving market access for agricultural and industrial producers. The state recorded exports of ₹66,218 crore in FY 2024–25, with key output coming from agriculture, pharmaceuticals, textiles and manufacturing.

DP World said the hub will integrate rail connectivity, warehousing, cold storage and cargo handling services at a single location. The facility is expected to support farmers, MSMEs and manufacturers by improving transit reliability and lowering logistics costs through multimodal connectivity.

The Powarkheda facility will be spread across 88.3 acres and developed as a rail-based logistics park. It will provide containerised rail connectivity to JNPA, domestic rail links to major consumption centres, and on-site container handling and maintenance services. The project will also include temperature-controlled storage and warehousing to support agri- and industrial cargo.

The hub will offer 25 acres of leased land for processing, aggregation and manufacturing activities. This is aimed at enabling value addition closer to the point of origin and reducing turnaround time for export cargo.

DP World stated that the project could reduce transit time to JNPA by 30 to 40 per cent compared to road transport. The increased use of rail is also expected to improve supply chain reliability, reduce congestion on highways and lower emissions. The cold chain infrastructure is projected to help cut post-harvest losses in perishables by 20 to 25 percent.