Page 22 - ITLN March-April 2025

City Report
Chennai

sophisticated logistics ecosystem
specifically tailored to the needs of the
industry. The region features specialised
warehousing facilities, just-in-time
inventory management systems, and
multi-modal transportation networks
that connect manufacturing plants to
suppliers and export terminals.
According to a report published
in Madras Musings, Chennai has an
annual production capacity of 1,380,000
cars and 361,000 commercial vehicles.
This translates to three cars every
minute and one commercial vehicle
every 75 seconds.
The success of this industry has
attracted substantial investments
in logistics infrastructure, including
specialised vehicle carriers, dedicated
railway sidings, and roll-on/roll-off
(RoRo) facilities at the ports.
The automotive sector has also
driven the development of supplier In June last year, Reliance Industries
parks and logistics zones in the vicinity began construction on India’s first
of manufacturing facilities. These zones Multimodal Logistics Park at Mappedu
house component manufacturers and near Chennai, with an investment of
third-party logistics providers who serve ₹1,424 crore. Spanning 184.27 acres
the needs of the automotive industry, in Tiruvallur district, the project was
creating a tightly integrated supply initially conceptualised 12 years ago
chain ecosystem. and aims to provide efficient logistics
services. Strategically located, the
Integrated logistics networks: park is 52 km from Chennai Port, 80
Connecting the dots km from Ennore Port, and 87 km from
Chennai's logistics strength extends Kattupalli Port.
beyond its individual components, ports, Recently, CCI Group, a leading 4PL
airports, and industrial clusters, to logistics and supply chain company in
the networks that connect them. The We see a steady demand India, announced plans to invest around
city benefits from its strategic location for transports to and from ₹640 crore to develop a 20 lakh sq.
on the Golden Quadrilateral highway Chennai, thus being part ft. Grade-A logistics park in Phase 2,
network, which connects it to major of our Indian network for Polivakkam, Chennai.
industrial centers across India. Digital integration is increasingly
The Chennai-Bengaluru Industrial several years now. becoming a differentiator for Chennai's
Corridor (CBIC) further enhances this Shankar Iyer logistics ecosystem. The Port
connectivity, linking two of South India's Lufthansa Cargo Community System implemented
major economic hubs. across major ports has streamlined
Rail connectivity plays a crucial role documentation processes and reduced
in Chennai's logistics landscape. The overall cargo movement efficiency dwell times. Similarly, the e-way
city serves as a divisional headquarters across the national rail network. The bill system and GST-driven logistics
for the Southern Railway, with multiple integrated multi-modal logistics parks optimisation have improved the
rail corridors connecting it to inland being developed around Chennai efficiency of interstate cargo movement.
container depots and manufacturing represent the future of the city's
centres. The Dedicated Freight logistics infrastructure. These parks Warehousing and distribution: the
Corridor project, though primarily combine warehousing, rail connectivity, backbone of logistics
focused on northern India, has indirect container freight stations, and value- Chennai's warehousing sector has
benefits for Chennai as it improves added services in a single location. undergone significant transformation
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