Category Archives: Warehousing

DSV Panalpina will develop an integrated logistics centre close to the airport, railway and motorway. The new site in Rosersberg north of Stockholm offers an entire range of transport and logistics services and will be ready for use by the end of 2021. The traffic around Stockholm is particularly dense during rush hours and in addition to its cross-docking terminal in southern Stockholm DSV will establish a logistics centre at the Northern part of the city. “With the new location, goods for local customers can be shuttled between the northern and southern sites and be distributed from either of the locations. We will to a great extent avoid most rush hour problems which will enable us to improve on both pick-up, delivery times and reliability,” says Magnus Malmqvist, Managing Director, DSV Road AB, Sweden. Driven by e-commerce, the demand for advanced warehouse solutions customised to meet the requirements of this segment continues to increase. “With the new site, we can offer automated robotic storage combined with narrow aisle racking and thus a very efficient and competitive utilisation of the general warehouse space. The capacity is almost twice that of a conventional warehouse,” says Ian Swinhoe, Managing Director, DSV Solutions AB, Sweden The warehouse will occupy approximately 68,000 sqm and feature an automated robotic storage system and narrow aisle racking systems and altogether provide twice the usual warehouse capacity. The location will also comprise a 5,000 sqm cross-docking area and office space. “We are always looking for sustainable solutions when building new sites. The buildings will be DGNB certified, 80% of the materials can be reused, solar panels on the roof will provide a large part of the electricity required for …

DP World has announced that the company has started construction of its Nhava Sheva Business Park (NSBP) Free Trade Zone (FTZ) in Mumbai. The Rs1000 crore DP World FTZ investment comes under the Hindustan Infralog (HIPL) joint venture between DP World (65 per cent) and the National Investment & Infrastructure Fund (NIIF) (35 per cent). This venture has been created to invest up to US$ 3 billion in ports, logistics and related sectors across the country. NSBP, a Special Purpose Vehicle, is a co-developer for the Jawaharlal Nehru Port Trust (JNPT) SEZ. The FTZ is on a long-term Lease of 60 years and is located 5 kms away from JNPT. After signing a lease agreement in July and successfully acquiring all permissions & approvals, the company has started construction in full swing. The facility comprising of 1 million sq. ft covered storage area with other cargo handling facilities, modern equipment, commercial building, etc., will be completed in 12 to 14 months. The facility will be equipped with state-of-the-art infrastructure like specialised multi-product and temperature-controlled warehouses, and a container yard with ultra-modern digital & security systems. It will offer round-the-clock customs clearance and value-added services to provide customers a one-stop solution for all their consumption and trading needs. Its strategic proximity – to the largest container port in India, the upcoming Navi Mumbai International Airport and National Highways – provides quick and direct access to domestic and global markets. It will offer long-term advantages to domestic as well as global traders and manufacturers, by enabling reliable and fast movement of cargo. Rizwan Soomar, CEO & MD, Subcontinent, DP World says, “We are delighted to build the Free Trade Zone in such …

Ecom Express has announced a strategic investment worth of US$ 11 million in Bangladesh’s largest third-party e-commerce logistics (3PL) firm Paperfly. Through this investment, Ecom Express is entering Bangladesh marking its maiden venture outside India. After having covered the length and breadth of the country reaching over 1.2 billion people daily, Ecom Express is now looking at expanding into adjacent countries, starting with Bangladesh. T.A. Krishnan, CEO and Co-Founder, Ecom Express, says, “We see a lot of growth opportunities in adjacent markets and the current investment is one of the many things in the pipeline. We looked at multiple aspects before identifying Bangladesh for our first international venture. The market draws parallel with India in terms of growth and demography and we want to leverage our experience and domain expertise to enable high scalability growth and build a strategic backbone of e-commerce logistics in Bangladesh. Paperfly is quite similar to Ecom Express in its operations and we admire what the company has accomplished in the Bangladesh market. We look forward to enabling Paperfly to unlock new avenues for an enhanced third-party logistics and home delivery in the country.” The investments will be used by Paperfly towards transformation of logistics through intelligence driven automations and data sciences that would enable the company to meet the fast-growing demand for quality e-commerce logistics services in Bangladesh. It will further accelerate the company’s implementation of advanced supply chain and logistics processes, agile solutions in delivery and warehouse management, and other operational facets in the logistics and supply chain. With more than 167 million inhabitants and over 90 million internet users, the e-commerce industry in Bangladesh is emerging and has become one of the fastest …

In order to manage its fulfilment operations for the Western region, FM Logistic India has been awarded a contract from Pepperfry. FM Logistic India will carry out warehousing operations at one of Pepperfry’s largest warehouses located in Bhiwandi which is spread across an area of 2,85, 000 sq. ft. The 3PL service provider will not only manage storage but also undertake a rigorous process of quality control as per prescribed guidelines and fulfil Pepperfry’s omni-channel orders. These goods will then be delivered to Pepperfry’s Studios for display and distribution centres across India, using Pepperfry’s last-mile delivery network. “Pepperfry is one of the most recognised furniture brands in India,” says Ashish Shah, Co-founder & COO, Pepperfry. “What started as a pure play online furniture store in 2012 has evolved as India’s leading furniture and home décor marketplace, both online and offline. The partnership with FM Logistic India will further help us serve our customers better thanks to a faster, most cost-effective supply chain and a continuous improvement orientation that FM Logistics brings to the table.” “We are committed to helping our customers develop their e-commerce and omni-channel strategies. A fast supply chain is critical for brands to strengthen their identity and relationship with end customers. Therefore, we are delighted to help Pepperfry manage their fulfilment operations for the Western region,” says Alexandre Amine Soufiani, MD, FM Logistic India. The Indian furniture market is segmented on the basis of: Material – Wood, Metal, and Plastic and Other Furniture Type – Home Furniture, Office Furniture, Contract Furniture, and Other Furniture Distribution Channel – Supermarkets and Hypermarkets, Specialty Stores, Online, and Other Distribution Channels The furniture industry in India, which currently stands at $17 …

Driven by a robust growth in e-commerce and manufacturing sectors as well as rising demand in emerging tier I and tier II cities, the industrial and warehousing space absorption is expected to grow by 83 per cent to 47.7 mn sq. ft. in 2021, as per the report released by Savills India, a global property consultancy firm. The 3PL and e-commerce sectors continued to drive warehousing demand accounting for 60 per cent of the total absorption in 2020, followed by manufacturing sector at 24 per cent. The growing numbers of firms in these sectors and the huge Indian consumption market have whipped up the investment prospects of India’s warehouse sector. In 2020, the industrial and warehousing market witnessed investments in excess of US$1 billion. Among the major cities in India, NCR led with the highest absorption in 2020 at 25 per cent followed by Pune at 15 per cent. Mumbai and Chennai saw absorption at 13 per cent each while Kolkata stood at 12 per cent. The Tier II cities such as Ludhiana, Lucknow, Coimbatore, Jaipur, Guwahati, Bhubaneswar, Nagpur and Patna witnessed around 3 mn sq. ft. in 2020. These cities are likely to gain momentum in 2021 with e-commerce and 3PL firms capitalising on consumption-driven growth and pushing the demand for warehousing space. On the supply side, Savills India expects a 113 per cent increase in supply to 47.9 mn sq. ft. in 2021. Despite construction activities getting affected due to the lockdown, the top-8 cities of India witnessed a fresh supply of 22.4 mn sq. ft. last year. NCR accounted for 22 per cent of the total supply witnessed in 2020 followed by Chennai (20 per cent), and …

Thermo King, by Trane Technologies (NYSE: TT), has launched its expanded portfolio of cold chain solutions in India, which can keep vaccines at temperatures from a range of +25 degrees Celsius to as low as -70 degrees Celsius. The company’s advanced cold chain technologies will help address the unique challenges of COVID-19 vaccine distribution in India, whose large population is spread across vast and varied geographies, from densely populated cities to far-flung rural communities. “Safety and reliability of the cold chain is critical to meet the urgent need for everyone to have access to vaccines,” said Allen Ge, President, Trane Technologies in Asia Pacific, in adding, “Our recently launched SuperFreezers were initially developed to flash-freeze high-end seafood. Our teams quickly adapted and developed a good solution for COVID-19 vaccines transport, which require ultra-cold temperatures to prevent degradation. We’re proud to support this historic effort in India and around the world with our technologies and cold chain expertise.” COVID-19 vaccine distribution is expected to start in India in the coming weeks, following the central government’s announcement of guidelines for states and Union territories for distribution of vaccines once they become available. The first approved COVID-19 vaccines must be kept at deep-frozen temperatures down to -70 degrees Celsius, and will be shipped in dry ice. A container using dry ice may require re-icing if it sits for an extended length of time, such as during a long haul or on the airport tarmac, or if the contents are exposed to ambient temperatures during transfers. Thermo King’s refrigerated solutions can extend the life of dry ice or even eliminate the need for it. Now, Thermo King products are being used by transport companies …

The Indian warehousing sector is largely dependent on various sub-sectors for its development. Retail, e-commerce, logistics and technology are the major driving force for the growth in warehousing. In 2020, however, the pandemic became another reason that catalysed this transformation and allowed businesses to explore more opportunities in the domain. The growing demand for online shopping is encouraging ecommerce players to set up their warehouses at locations which could fast track the delivery process for their consumers. Moreover, the government is also promoting local businesses and manufacturing with a digital support that is directly proportional to the growth of warehousing in the country. The warehousing and logistics market in India has been mainly concentrated in top eight cities namely Mumbai, Delhi NCR, Bengaluru, Chennai, Ahmedabad, Kolkata, Hyderabad and Pune. This is primarily due to the majority of demand being witnessed from these cities. In 2021, these locations will remain the crucial, however, the industry will witness a shift in demand from the customers. Transportation routes/last mile capabilities to support ecommerce orders is a key differentiator in this industry. Companies have begun to integrate last mile capabilities into existing warehouses and fulfilment infrastructure and thereby benefiting from high speed and good customer experience. The companies seeking warehousing facilities, will be willing to work with the trusted players who could offer them customised properties with Grade A services at perfect locations. Tier 2 and 3 cities will gain momentum and will see more traction owing to the ecommerce and 3PL players which are capitalizing on consumption driven demand in these micro markets. The cities like Coimbatore, Vapi, Guwahati, Ludhiana, Surat, Patna, Bhubaneshwar, Siliguri and Lucknow have and will continue to witness increase …

FM Logistic has announced its plans to double its warehousing space to 1.2 crore sq ft in three to four years from 60 lakh sq ft at present. According to Alexandre Amine Soufiani, MD and CEO, FM Logistic, “The demand for such facilities will increase in the aftermath of the pandemic. We expect sales to return to pre-COVID levels by March 2021 as 90 per cent of the business has already recovered by December.” With its plans to set up Grade-A facilities in all metro cities and dynamic economic areas, especially multi-customer units, and focus on urban logistics, FM Logistic looks to attain leadership position in the sector. Grade-A warehouses are categorised on the basis of construction quality, available space, location, amenities and clients, among others. In March 2019, FM Logistic had outlined its plans to invest US$ 150 million over the next five years to set up new warehouses in India, with focus on multi-client warehouses. “When we acquired Spear Logistics in 2016, there was only 20 lakh sq ft space and four warehousing units. Today we have 60 lakh sq ft in four years and we want to double this to take it to 1.20 crore sq ft under our operations in the next 3-4 years,” Soufiani said. The company has already announced its plans to add 40 lakh sq ft warehousing space in the next three years that will take its total space to 1 crore sq ft, he said, adding that it could add another 20 lakh sq ft. He said the company has added a total of 10 lakh sq ft space in the last six months, all for multi-customers facilities, including omni channel, pharma, …

Singapore based GIC and ESR Cayman have entered into an 80:20 strategic partnership to establish a US$750 million joint venture to develop and acquire industrial and logistics assets in India. The JV will develop and own institutional-grade, state-of-the-art industrial and logistics facilities as well as acquire core assets, focusing on Tier 1 and Tier 2 cities across India and will be seeded with a ~2.2 million sq. ft build-to-core asset, located in close proximity to the large consumption hubs of Mumbai and Thane. Lee Kok Sun, Chief Investment Officer of Real Estate, GIC, says, “We are pleased to establish this Joint Venture with ESR, a leading integrated logistics platform, to develop and acquire high-quality industrial and logistics assets in prime locations in India. GIC has been investing in India for more than a decade, and this investment is a testament to our confidence in the long-term potential of this market.” Kishore Gotety, Co-Head (Asia ex-China) of Real Estate, GIC, states, “Continued e-commerce growth in India over the long term, reinforced by rising internet penetration, is expected to drive strong demand for industrial and logistics assets. This is further supported by the emphasis on infrastructure development, changing supply chains, and low vacancy levels. This JV is well-positioned to benefit from these tailwinds, bring institutional-grade assets into this market, and generate resilient returns.” “We are very excited to extend our partnership with GIC as it firmly demonstrates ESR’s capability and track record of developing best-in-class, strategically located industrial and logistics facilities in prime locations across India. This strategic partnership provides us with immediate scale to capitalise on the early growth stages of India’s rapidly modernising industrial and logistics landscape and tap high …

Amid an increasing demand for quick deliveries by online customers, Pune-based FM Logistic India is looking to set up intra-city warehousing units across Mumbai, Delhi and Bengaluru, including by converting some abandoned mills into such facilities. The company is in discussion with a closed mill owner in Mumbai, while exploring the possibility of such projects in Delhi and Bengaluru. However, along with this, FM Logistic is also open to set up completely new intra-city warehousing facilities as well, informs Alexandre Amine Soufiani, Managing Director, FM Logistic India. “In the post-COVID-19 scenario, having an intra-city warehousing facility is a must to be able to deliver the goods to the end-customer within hours of placement of an order. But, the land in the cities is costly. We are scouting for warehousing facilities inside the cities of Mumbai and Delhi to either build new multi-story warehouses or to refurbish abandoned cotton mills in Mumbai within the city,” he adds. He said he has to partner with e-commerce and other omni-channel retail companies and offer them multi-customer facilities with intra-city warehouses. FM Logistic India has presence in over 90 locations, and it provides warehousing and distribution logistics services for the FMCG, retail, automotive, e-commerce, engineering, telecom, pharma and other sectors. Soufiani said Mumbai has many closed mills and the company was thinking of partnering with owners of those mills and transforming them into intra-city warehousing. “In Mumbai, we are in talks with one of the mill owners, we are carrying out due diligence and looking at how we can make it safety-compliant, as we do not want to compromise on the safety aspects at all,” he said. He further explains that there are two …