60% of India's logistics transport through roads: study

22 Nov '19

2 min read

Pic: Shutterstock

Three-fifths of the transportation in India’s logistics sector occurs through a strong road network against the global average of 30-40 per cent, according to a new report, called ‘India: Evolution of Integrated Logistics – Aiming Transformation Through PAGI’, released by JLL Industrial Services Research recently at the CILT India Expo 2019 in Mumbai.

Optimised use of roads is possible by building up enhanced hinterland infrastructure and specialised storage space spread over the country, said the report. Warehouse, one of the prime elements of the industry, has become one of the most attractive real estate asset segments for domestic and foreign investors. It has witnessed nearly 38 million sq ft of absorption in 2019.

India is pre-dominantly dependent on roads for connecting production centres to warehouse and consumer, a JLL press release said citing the report. JLL is a professional services firm specialising in real estate in India.

With rising complexities, there is a need to work towards integration to achieve cost efficiencies via specialization and consolidation of storage and modes of transport. The latter is meant for the logistics facilities, private freight terminals, dry ports, waterways terminals and specialized storage spaces like the cold storage etc.

The report also foresees rail-linked logistics facilities focusing on multi-modal connectivity to be the major focus in future logistics sector development.

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