DP World has started operations at its largest free trade warehouse zone in India in Chennai.
The Chennai facility is the company’s second free trade warehouse zone (FTWZ) in India after Mumbai that was established 18 months old.
DP World Vice President, Economic Zones, India Subcontinent and MENA, Ranjit Ray, said Chennai also has strategic advantages since it is connected to South Asia, Africa, Australia via the sea route.
“Tamil Nadu is one of the best states in the country for an economic zone. We just started business and now have 15 per cent occupancy in six months,” he said.
DP World’s Chennai economic zone is spread over 6 lakh sq ft with a potential to grow to 2 million sq ft.
Tamil Nadu has been one of the most industrialised states in the country for the last 40-50 years, Ray said.
DP World’s Integrated Chennai Business Park (ICBP) economic zone is located within a 40-km radius of key ports, including Kattupalli (15 km), Ennore (11 km), and Chennai (27 km), streamlining cargo transportation to and from the city.
In India, Ray said DP World has three economic zones — in Chennai spread over 125 acres, the second one is 85 acres in Mumbai JNPA, and at Cochin that will be operational soon.
Economic zones in India are also called free trade zones or free trade warehousing zones. They are considered deemed foreign territory within the country borders where goods may be imported, handled, assembled, consolidated, re-exported or cleared into domestic area in a hassle-free manner.
The new economic zone in Chennai will cater to several sectors, including auto, electronics, IT, telecom, healthcare, chemicals, and petrochemicals by providing them with a strategic base in the Indian subcontinent.
