‘High cost of land & infrastructure in urban areas near airports is a challenge’

Kamal Jain, Director, Cargomen Logistics said, “Warehouses near airports or producing and storing goods close to consumption centres’ is ideal for reducing cycle time, transportation costs and enhancing responsiveness to customer demand. However, the high cost of land and infrastructure in urban areas that to be airport vicinity often discourages businesses from setting up facilities nearby. As a result, many opt for distant, more affordable locations. While this may reduce upfront expenses, it can increase fuel costs, delivery times, and compromise service levels. A comprehensive, data-driven cost-benefit analysis—considering opportunity costs, delivery speed, manpower, fuel, and evolving customer expectations—can uncover valuable insights. In many cases, investing in facilities closer to the consumption point, despite higher real estate costs, results in faster turnaround, improved customer satisfaction, and a competitive edge. Strategic proximity often pays off in the long run.”