Tell us about the warehousing infrastructure operated by DP World – location of warehouses, size and hinterland covered?
Over the years, warehouses in India have evolved into sophisticated and highly developed spaces. The warehousing market was valued at Rs 1,206.03 billion in 2021 and is projected to reach a staggering Rs 2,872.10 billion by 2027, with a compound annual growth rate (CAGR) of approximately 15.64 percent.[1] These numbers are an excellent testament to the massive growth potential for this sector.
DP World’s total warehousing capacity in India is spread around 5 million sq. ft., comprising of Built-To-Suit (BTS), Ready-To-Move (RTM), and leased warehouses designed to meet specific customer requirements. These warehouses are strategically spread across more than 60 locations pan-India. We offer seamless warehousing and logistics solutions, optimizing customers’ supply chain for maximum efficiency and cost-effectiveness. Our robust warehousing infrastructure in the country is a key component of our integrated supply chain solutions and underscores our commitment to providing comprehensive and customized storage solutions to cater to the diverse needs of businesses operating in India.
Our Free Trade Warehouse Zones (FTWZs) in Chennai and Nhava Sheva, are strategically positioned near vital ports to streamline global trade and connect India to the world. These advanced facilities are part of our approach that covers terminals, free trade zones, container freight stations, cold storage, and transportation.
Furthermore, DP World’s inland terminals, which connect businesses located in India’s hinterland to newer markets, both domestic and international, are equipped with warehousing spaces in Hyderabad, Modinagar, Panipat, Pali, Hindaun, Hazira and Ahmedabad.
Which are the commodities served by these warehouses?
Our warehouses are equipped to handle general storage, temperature-controlled storage, hazardous cargo and more. Traders from industries such as agriculture, FMCG, food and beverages, pharmaceuticals, electric vehicles, steel, cement, textiles, and chemicals among others benefit from DP World’s warehouses solutions.
In 2023, we opened three state-of-the-art warehouses.
- A 3,80,000 sq. ft warehouse in Bhiwandi-Thane, Maharashtra where one section of the warehouse spans 190,000 sq. ft and is specially designed for hazardous chemical storage. The second section covers 150,000 sq. ft and is dedicated to non-chemical storage. The facility also has a temperature controlled storage space of 40,000 Sq ft. which can be utilized for customers in food and pharma sectors.
- A chemical warehouse in Goa which is fully compliant with all safety standards for storage and handling of chemical products. Located 31 km from the Mormugaon Port, 23 km from the Dabolim airport and 25 km from Panjim city, this multiclient facility provides seamless connectivity to the Goa-Bangalore-Pune highway.
- DP World’s warehousing facilities in Hyderabad and Chennai are specialized ones used for storage and handling of petroleum products. Another state-of-the-art facility in Bangalore set up in 2023 is used for storage and handling of auto spares for a leading EV company.
What are your future plans for expansion in this space?
We have started 2024 with a brand-new build to suit facility in Bangalore. This air-conditioned facility with state-of-the-art infrastructure has approximately 18000 pallet positions storage capacity and in-house Warehouse Management System (WMS) system. The warehouse is fully complaint with international standards and has its own Sewage Treatment Plant (STP). This facility serves as a dedicated hub for a technology customer including pan-India distribution of its products. In addition, storage and handling of finished goods, accessories and returns processing will also be done at this facility.
DP World’s Cold Chain infrastructure is also growing at a steady pace. We have cold warehousing locations in Pune, Chennai, Mumbai which provide freeze, chill and aircon temperature-controlled warehouses. Many leading brands in the Fruits and Beverages, Meat, Fruits & Vegetables, Pharma industry use our cold chain warehouses for storage and handling. We have our own large fleet of reefer and dry vehicles along with a large network of business partners that collectively provide all categories of services such as primary, secondary, and tertiary transportation.
In the FTWZ space our Cochin FTWZ will be operational in the first half of 2024 and Nhava Sheva Business Park Phase II in 2025, taking our footprint to over 5 million. Sq. ft. in overall warehousing space.
How well are they connected by road and rail to the nearest seaport/airport?
Our end-to-end smart planning capabilities ensure that all our warehouses are well connected via air, rail, road, and sea, making them strategically valuable to businesses located across India. We constantly introduce services that enhance our connectivity and efficiency. For example, in April 2023, we launched a new double-stack freight train facility to improve connectivity between our inland terminal at Ahmedabad and the Mundra port. This rail service drives better efficiency by ensuring less or zero port ground rent (PGR) resulting from the faster evacuation of containers from the port. On the storage side, our Ahmedabad Inland Terminal is well-connected to the state highway and the rail network. With a container handling capacity of more than one lakh TEUs per annum, it offers a host of services and features, including a customs-notified warehouse, inventory management services, and specialised equipment to handle steel cargo.
Also, we provide customized solutions in distribution through DP World Express Logistics, making us an integrated service provider for domestic transportation with service over 14000+ pin codes.
Use of technology at your warehouses for efficient operations?
The landscape of warehousing operations has undergone a transformative shift propelled by automation, data-driven insights, and state-of-the-art distribution centers. DP World is using technology to better serve its customers with speedy transitions and synchronized systems to get products into the hands of end-customers in a more sustainable and efficient manner. Our warehouses are equipped with advanced new-age technology such as best-in-class Warehouse Management Systems (WMS), inclusive of ‘track and trace’ facility, Application Programming Interface (API), IoT-enabled sensors, and AI, improving real-time visibility of cargo movement and inventory for improved supply chain planning, resource optimization and route optimization.
We also provide track and trace features for all vehicles through GPS technology integrated in our Transport Management System. We have brought efficiency and reduced manual intervention by automating the entire process of LR creation to Invoice generation.
DP World’s digital WMS solutions are easily compatible with the existing digital infrastructure of its customers enabling businesses to introduce automation to the existing facilities and provide visibility to its supply chain movement. This helps businesses plan their inventory management and improve operational efficiency. We enable secure inventory movement through barcode scanning and RFID technologies that ensure accuracy. Together, these technological interventions make trade reliable and secure for customers by providing them with full visibility of their inventory.
In addition to storage, are you offering any value-added services at your warehouses?
Our warehouses are strategically located and cater to diverse orders and customer profiles. They are equipped with the capability to seamlessly integrate with WMS (Warehouse Management System) and transportation networks. This integration facilitates a streamlined and efficient order processing system, enhancing overall operational efficiency. At DP World, we enable supply chains from the factory floor to customer’s door. This means we simplify logistics services by uniting our infrastructure and expertise to lower costs and increase efficiency to help customers focus on their core business. We integrate best-in-class facilities, multimodal transport solutions, digital solutions, market access capabilities and our extensive suite of assets to help ensure we get our customers’ goods to the right places as quickly and sustainably as possible.
[1] https://www.cnbctv18.com/business/india-warehousing-market-boom-e-commerce-slowdown-drag-down-17195301.htm
