Page 23 - ITLN March-April 2025

systems, and sophisticated inventory “From our point of view, we see
management technologies. some room for improvement at Chennai
Cold chain infrastructure has also cargo terminal when compared to
seen substantial growth, catering other Indian airports, such as Delhi,
to the pharmaceutical industry and Hyderabad, and Bengaluru, which enjoy
growing demand for fresh produce good cargo terminal infrastructure.
and processed foods. Chennai now There are some great opportunities
hosts specialised temperature- for cargo business when we look at
controlled warehouses and distribution the general economic development in
centres that maintain the integrity Chennai being an important market
of temperature-sensitive products for Lufthansa Cargo,” says Iyer of
throughout the supply chain. Lufthansa Cargo.
Climate vulnerability remains a
Challenges and future outlook pressing concern across all logistics
Chennai's logistics ecosystem faces infrastructure in the region. Seasonal
several immediate challenges despite weather patterns and extreme
its impressive growth. Traffic congestion weather events have historically
remains a major issue, significantly impacted operations, pushing
affecting last-mile delivery efficiency. developers to incorporate resilience
Discussing the challenges at measures like elevated structures and
Chennai Port, Prakash of Global improved drainage systems into new
Logistics Solutions, says, “Chennai port logistics facilities.
in recent years, moving from traditional volumes have grown very steadily over Looking ahead, Chennai is poised for
godowns to modern, technology- these decades, especially with adjacent continued logistics evolution through
enabled fulfilment centres. ports of Ennore and Kattupalli. Though several key initiatives. The Chennai
According to data from Address the ports are able to absorb current Peripheral Ring Road project will
Advisors, Chennai's warehousing volumes, the limited draft doesn’t allow improve connectivity between industrial
sector has experienced consistent bigger vessels to call the port. However, zones and logistics hubs while reducing
growth over the past five years. The there is big hope with the Tuticorin inner-city congestion.
total available warehousing space Outer Harbour project that will have a The Sagarmala port-led development
increased from approximately 30 much deeper draft around 20 metres. It programme includes several Chennai-
million square feet in 2019 to over 50 will be an all-weather port. If it comes specific projects to enhance maritime
million square feet in 2024. Notably, up in the next 5 years, it will significantly logistics operations. Meanwhile,
the supply of Grade A warehousing help to handle volumes of industrial sustainability has emerged as a
has more than doubled, rising from 6 growth in the southern and western priority, with ports implementing green
million square feet in 2019 to part of Tamil Nadu.” initiatives like shore power for vessels
over 12 million square feet in 2024, He further adds, “Chennai Port has and solar energy installations, while
reflecting a shift towards higher- reached its maximum capacity, with warehousing developers focus on
quality infrastructure. congestion at the entry and exit points energy-efficient designs.
The warehousing clusters are due to its proximity to residential and Digital transformation is perhaps
strategically located along major urban areas.” the most significant trend reshaping
highways, particularly the Chennai- Chennai International Airport Chennai's logistics landscape.
Bengaluru corridor and the Chennai- contends with its own set of Blockchain-based documentation, IoT-
Tirupati route. These locations offer challenges. Capacity constraints enabled asset tracking, and AI-driven
proximity to both manufacturing centres during peak hours cause delays optimisation are being adopted across
and transportation networks, enabling in cargo processing, while the the value chain.
efficient distribution operations. airport's layout, developed in phases The establishment of a Logistics Data
The growth of e-commerce has been over decades creates operational Bank has already improved container
a significant driver for warehousing inefficiencies. During monsoon tracking and transit predictability.
demand in Chennai. Major e-commerce seasons, waterlogging occasionally As global supply chains continue to
players have established fulfilment disrupts cargo operations. The airport evolve, Chennai's strategic location
centres in and around the city to serve also faces stiff competition from newer and integrated approach to logistics
the southern market. These facilities facilities in Bengaluru and Hyderabad infrastructure position it advantageously
employ advanced sorting systems, that were designed with modern cargo to serve as South India's logistics
automated storage and retrieval handling principles from the ground up. gateway for decades to come. 
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