Jewar airport to help warehousing sector to grow in Noida
According to JLL, Gurgaon and nearby area has a total warehousing stock of 41 million sq ft as of H1 2021 while Noida, Ghaziabad and Greater Noida only has about 6 million sq ft of Grade A and B space.
“The new airport along with the planned manufacturing set-ups and infrastructure developments adds the missing links to complete the puzzle. In the next 3 -4 years, Noida is thus well poised to challenge Gurgaon as one of the leading warehousing clusters in North India,” said Chandranath Dey, Head – Operations, Business Development, L&I Consulting & PAGI, Logistics & Industrial, JLL, India.
“Conceptualized as an integrated multimodal logistics hub, Noida International Airport at Jewar will act as a steppingstone to reduce overall cost and transit time. India will join an elite league of nations with such a forward-looking infrastructure initiative,” said Vineet Agarwal, MD of TCI and ASSOCHAM, President.
While Gurgaon has strong existing manufacturing clusters of Manesar to Neemrana, Noida and Greater Noida also has established electronic manufacturing cluster and upcoming defence manufacturing corridor.
In terms of connectivity, Gurgaon has Delhi International Airport, which is the largest Cargo Airport in India, NH-8 connecting NCR and Mumbai and is the busiest logistics corridor and an upcoming western dedicated freight corridor.
Proposed Jewar International is also planned as multi-modal transit hub at the Ground Transportation Centre to provide seamless connectivity between various public and private modes of transport.
“Noida International Airport at Jewar will be a game-changer for the various sectors, including Logistics & Supply Chain industry, as it will re-position India on a global logistics map. Air connectivity is essential, especially for logistic business, and this initiative will open more opportunities for the sector in future. Uttar Pradesh is becoming a hub for businesses, and with this upcoming international airport, the region will reap economic multiplier benefits and open employment sources across sectors,” said Rhitiman Majumder, CMO and Co-Founder Pickrr.
The Yamuna Expressway Industrial Development Authority (YEIDA) has also reduced the cost for land acquisition for warehousing and logistic parks by over 30%, making it attractive for international warehousing operators to invest in Noida.
With this decision, the cost of one acre has come down to Rs 2.7 crore from Rs 4 crore.
Industry experts, however, said rates are still on the higher side. But considering its closeness to the upcoming airport, companies might be willing to invest.
According to a Knight Frank India report, committed land for warehouses across the country is estimated at 21,163 acres, which has the potential of adding 63% more supply to the existing 307 million sq ft of warehousing stock.