CHENNAI: In a bid to tap the fast-growing urban cargo segment, marked by smaller parcel sizes but higher value, the state government is planning a network of urban logistics consolidation centres (ULCCs) in the southern Chennai Metropolitan Area as part of its upcoming City Logistics Plan.
The proposed hubs, to be developed within a 10-km radius in Siruseri and Kelambakkam, aim to streamline last-mile distribution while easing pressure on the city’s congested logistics network.
Each facility is expected to handle 1,000-1,500 tonnes of cargo, supported by 80-100 maximum authorised vehicles (MAVs) for inbound movement and 300-400 light commercial vehicles (LCVs) and mini-LCVs for last-mile deliveries, sources said. It is learnt the southern corridor has emerged as a key demand centre, driven by rapid residential expansion.
Yet, much of the city’s urban cargo - particularly from e-commerce, quick commerce and courier services - continues to be dispatched from hubs located in the north, central and south-western zones, leaving the southern belt relatively underserved.
This mismatch has led to longer delivery routes, with LCVs and mini-LCVs travelling considerable distances to serve southern neighbourhoods, adding to the congestion. At present, vehicles operating from hubs in Chromepet, Guindy and Tambaram undertake round trips of nearly 60 km, with around 100-120 vehicles deployed per day.
The proposed ULCCs are expected to cut these distances significantly, improving delivery efficiency in a segment where turnaround time is critical. They are also likely to deliver operational and environmental gains.
Estimates indicate a reduction of about 4,000 vehicle-km per day, a measure of the cumulative distance travelled by all vehicles, along with a cut in greenhouse gas emissions of 3-3.5 tonnes per day. Last-mile delivery distances are projected to shrink by 15-20 km per vehicle, helping lower logistics costs.