CHENNAI: The logistics industry is seeing a rising demand for warehousing space in Tamil Nadu, due to increased industrial activity, and favourable policies related to GST, say industrialists. The demand in Chennai doubled in the last three years, S Narasimhan, MD Sattva Logistics, and chairman, CII Task Force on Ports (southern Region), said.
The availability of ports and road connectivity with access to the hinterlands made Chennai a hub of warehousing. "Apart from regular imports, there is an increase of imports like raw materials, which are generating demand for warehousing spaces," he said.
Shri Kailash Logistics Chairman S Rajkumar said that the city's outskirts have potential to be developed into a logistics hub in the Chennai- Bengaluru Industrial Corridor. He said that after the GST regime, there is a demand for warehousing in Tier- 2 cities like Madurai, Salem, etc.
"The single tax system made it easier for the firms to have large warehouses in hubs. The FMCG firms are showing interest in reaching Tier -2 cities from where they can access 6- 7 smaller cities," he said.
Industry insiders said while there is a rise in demand for e-commerce services in south districts, firms aren’t able to meet them due to a shortage of warehouses.