Logistics

Logistics Powering Trade and Transformation

The logistics sector is a key driver of trade, industrialization, and economic growth. India aims to reduce logistics costs from 14% of GDP to global levels of 8–9%, and West Bengal is emerging as a strategic logistics hub for Eastern and North-eastern India as well as South Asia.

West Bengal, with its unique location, robust infrastructure, and policy push, is positioning itself as the “Emerging Logistics Capital of India.”  Dankuni has grown into a successful logistics hub due to multimodal connectivity, warehousing clusters, and corridor development.

The State offers compelling opportunities in warehousing, multimodal logistics, technology-driven supply chains, and export facilitation, making it central to India’s logistics transformation. With the planned Tajpur Deep Sea Port, multimodal logistics parks, and industrial corridors, the State is set to attract significant investment in warehousing, supply chain, and export facilitation.

This creates a compelling opportunity for investors across logistics infrastructure, technology-driven solutions, training, and allied services, making West Bengal a critical player in India’s logistics transformation journey.

 

Opportunities in Logistics Sector

Introduction

The logistics sector plays a pivotal role in driving trade, industrialization, and economic development. With India aiming to reduce logistics costs from 14% of GDP to near global standards of 8–9%, states like West Bengal are emerging as strategic gateways for both domestic and international trade.

 

Regional context – West Bengal

West Bengal, with its unique location, robust infrastructure, and policy push, is positioning itself as the “Emerging Logistics Capital of India.” Dankuni is indeed a successful logistics hub in Eastern India. Its multi-modal connectivity, concentration of warehouses, policy support, and industrial corridors have made it the logistics nerve centre of Eastern India, with potential to grow further as the Dedicated Freight Corridor and Tajpur Port are implemented. 

 

Main drivers of notable and successful logistics projects in West Bengal, across transport corridors, infrastructure upgrades, and multimodal developments are:

Economic & Trade Strengths

• GSDP (2023–24 BE): ₹17.2 lakh crore, making it the 4th largest state economy.
• Exports (2022–23): USD 13 billion (₹1 lakh crore), with a CAGR of 6.1% (2018–2023).
• Top export markets: Bangladesh (17.4%), UAE (11.7%), USA (9.3%), Nepal (8.6%), and China (4.8%).
• Key export products: Iron & steel, gems & jewellery, leather goods, marine products, rice, petroleum products.
• Kolkata (38% share), Howrah (10.8%), and East Medinipur (9.2%) dominate the state’s exports

 

Logistics Infrastructure

• Roadways: 7,412 km of NH and 28,985 km of SH.
• Railways: 6,000 km network, among the densest in India, with 53 goods sheds.
• Gati Sakti Cargo Terminals: Being developed by Eastern Railway will handle various commodities like coal, cement, sugar, and containers
• Ports: Two major ports at Kolkata and Haldia; upcoming Tajpur Deep Sea Port (>₹25,000 crore investment).
• Air Cargo: 7 terminals.
• Warehousing: 42.5 lakh MT capacity; 2nd largest cold storage in India with ~6.7 lakh MT.
• Industrial Corridors: Dankuni-Raghunathpur, Dankuni-Kalyani, Dankuni-Haldia under development.
• Logistics Training Centers: 27 centers strengthening human capital.

 

Policy Push

(a) Export Promotion Policy 2023

• Vision: Position West Bengal as the Global Trading Hub of India by doubling export share over 2023–2033.
• Key features: branding support, e-governance, export infrastructure, R&D, warehousing expansion.

 

(b) Logistics Policy 

• Vision: Make West Bengal a logistics hub of India aligned with the PM Gati Shakti Master Plan.
• Features: multimodal parks, freight villages, cold-chain integration, private sector participation (PPP), green logistics, EXIM logistics.

 

(c) Industrial & Economic Corridor Policy

• Corridor-based development for balanced regional growth.
• Focus on cluster-based logistics parks and industrial townships.

 

Government Initiatives 

• Integrated Industrial Parks & Export Parks (Darjeeling, Haldia, Tajpur).
• Mega Clusters: Leather (1,150 acres), Garments (Metiabruz), Power Looms, Carpets.
• MSME Support: Lean manufacturing schemes, SME listing promotion.
• Export Facilitation Center (EFC): Collaboration with IIFT to support exporters in market identification, compliance, financing, and trade facilitation.

 

Supporting Infrastructure Framework

• Kalyani Expressway & Elevated Connector
  • A 44 km tolled, 4–6 lane expressway, linking Kolkata to Kalyani, has significantly improved travel times for cargo movement
  • A 1.3 km elevated flyover connecting the expressway to Belgharia Expressway providing seamless access towards the airport and bypassing congested Barasat 
• Joyee Setu (Joyee Bridge)
  • West Bengal’s longest river bridge (2.7 km), connecting Haldibari and Mekhliganj in Cooch Behar district; reduced travel distance from 70 km to just 15 km, vastly improving regional connectivity. 
• Haldia Multi-Modal Terminal
  • Inland river terminal supports vessels up to 3,000 DWT with a draft of 2.5 m.
  • It strengthens Haldia’s integration with National Waterway-1 and rail/road networks.
• Haldia Dock Complex Enhancements
  • The Haldia Dock now boasts a dedicated rail network (11.5 km length, 115 km track, and two yards), enabling handling of around 30 million metric tonnes annually.
  • Connected via rail to Panskura–Haldia and by highway (NH-116 to NH-16), the port is also linked to inland waterways like NW-1 and Indo-Bangladesh protocols.
• Multi-Modal Logistics Parks (MMLPs)
  • Durgapur MMLP: A ₹2,380 crore project leveraging rail, road, inland waterways, and proximity to Andal airport and the Freight Corridor.
  • Siliguri MMLP: A ₹1,500 crore development near New Jalpaiguri station and Bagdogra Airport, capitalizing on NH corridors to the Northeast.
  • Kolkata Port-Area MMLP: Kolkata Port (SMP) has offered 60 acres close to the docks for Bengal’s first MMLP, ideal for warehousing, cold storage, and logistics services.
• North–South Road Corridor
  • A transformative project to widen SH-4 and SH-7, improving connectivity between North Bengal and Haldia Port, supported by the Asian Development Bank is pending implementation
• Dankuni – Successful logistics hub in Eastern India.
  • Strategic Location
    • Dankuni sits at the junction of NH-2 (Delhi–Kolkata road), NH-6 (Mumbai–Kolkata road), NH-34 (North Bengal–Kolkata corridor), and is close to Kolkata city (20 km)
    • It is also a railway junction on the Howrah–Bardhaman chord line and connected to the Eastern Dedicated Freight Corridor (DFC).
    • Proximity to Kolkata Port, Haldia Dock, and the upcoming Tajpur Deep Sea Port makes it an excellent logistics gateway for both imports and exports.
  • Industrial & Warehousing Cluster
    • Dankuni has developed into a warehouse and fulfilment hub for e-commerce, FMCG, retail, and 3PL (third-party logistics) players.
    • Flipkart, Amazon, BigBasket, Reliance Retail, Spencer’s, and logistics majors like DHL and Delhivery have set up large fulfilment centres and warehouses here.
    • The Dankuni Industrial Growth Centre, developed by WBIDC, hosts numerous manufacturing and logistics firms.
  • Connectivity Infrastructure
    • Road: Connected via NH-16, NH-19, and NH-34; part of the Golden Quadrilateral.
    • Rail: Dedicated freight linkages reduce turnaround time for cargo.
    • Air: Close to Kolkata Airport (Netaji Subhash Chandra Bose International Airport), making it suitable for air cargo distribution.
    • Waterways: Linked to inland waterways (NW-1 via Haldia and Kolkata).
  • Policy & Corridor Support’
    • Dankuni is a focal point in West Bengal’s proposed Industrial & Economic Corridors:
      • Dankuni–Raghunathpur Corridor
      • Dankuni–Kalyani Corridor
      • Dankuni–Haldia Corridor
    • These corridors are planned to integrate industry, warehousing, and logistics into seamless supply chains.
  • Success Indicators
    • E-commerce backbone: Flipkart’s 2.2 lakh sq ft fulfilment centre in Dankuni  serving Bengal and neighbouring states.
    • High cargo throughput: Handles goods for FMCG, steel, chemicals, agri-products, and textiles.
    • Real estate demand: Warehousing rental demand in Dankuni has surged, making it the preferred destination for warehouse developers (Indospace, ESR, Ascendas, etc)
    • Employment & MSME support: Acts as a node for MSME supply chains feeding into national retail and export networks.

 

Investment Opportunities in Logistics

West Bengal’s strategic location, strong export base, and supportive policy framework uniquely position it as an emerging logistics hub of South Asia. With the planned Tajpur Deep Sea Port, multimodal logistics parks, and industrial corridors, the state is set to attract significant investment in warehousing, supply chain, and export facilitation.

This creates a compelling opportunity for investors across logistics infrastructure, technology-driven solutions, training, and allied services, making West Bengal a critical player in India’s logistics transformation journey.

 

Opportunity Areas:

• Industrial Warehousing & Logistics Parks
  • Driven by e-commerce and 3PL demand.
  • Potential to reduce storage costs and improve supply chain efficiency.
• Multi-Modal Logistics Parks
  • Cost and time reduction in freight movement.
  • Lower pollution and congestion.
• Transport & Logistics Research Centres
  • Optimize networks, terminal and warehouse operations.
• Training Centres for Logistics & Exports
  • Employment generation.
  • Increase in trained exporters.
• Inland Container Depots (ICDs)
  • Expand port services to remote areas.
  • Improve container availability and reduce drayage costs.

 

 Conclusion

The combined initiatives of infrastructure development, spanning roadway, inland waterways, ports, and multimodal logistics hubs—are strengthening West Bengal’s logistical framework, enhancing connectivity for trade, and lowering transport costs. They pave the way for future investments and expansion in warehousing, industrial parks, and export logistics.