DP World Strengthens Indian Footprint with Launch of Chennai FTWZ

In a strategic move to bolster its presence in India’s logistics landscape, DP World unveiled its latest endeavor, the Integrated Chennai Business Park. The free trade warehouse zone (FTWZ), situated approximately 30 kilometers north of Chennai in Manali, marks DP World’s second such establishment in India, following the successful venture in Mumbai 18 months ago.

Ranjit Ray, Vice President of Economic Zones for the Middle East, North Africa, and the Subcontinent, expressed DP World’s commitment to fortifying its footprint in India. Ray revealed plans for a third FTWZ nestled within the Kochi Port container terminal, a project slated for completion in the near future.

Prior to the onset of the COVID-19 pandemic, DP World had earmarked an investment totaling approximately ₹1,700 crore for the phased development of three FTWZs in India. With nearly 45 percent of the capital expenditure already deployed, the company anticipates the completion of the facilities within the next 3 to 4 years. Upon fruition, these ventures are poised to offer a substantial 4 million square feet of warehouse space.

Of the three FTWZs, the Chennai facility emerges as the largest, sprawling across 125 acres with 2 million square feet of warehouse space. In comparison, the Mumbai counterpart spans 85 acres with a matching 2 million square feet of capacity, while the Kochi installment occupies 10 acres, accommodating 0.2 million square feet.

Strategically positioned within a 40-kilometer radius of key ports including Kattupalli, Ennore, and Chennai, the Chennai facility boasts prime connectivity. Ray projected an occupancy surge from the current 10 percent to approximately 70 percent by the fiscal year-end, citing Tamil Nadu’s favorable business environment for FTWZ operations.

Moreover, the Chennai facility offers an array of value-added services such as packing and labeling, enhancing its appeal to businesses seeking streamlined logistics solutions. Featuring four warehouses equipped to accommodate 17,000 pallet positions, the facility caters to the handling of specialized and irregularly shaped cargo. Additionally, the warehouses boast temperature-controlled environments ideal for cargo storage at 2 degrees Celsius, further enhancing their versatility.

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