Singapore: DHL Logistics has identified two locations to set up a Free Trade Zone (FTZ) in North India next year with an investment of up to Euro 15 million, chief executive officer Samar Nath said here on Wednesday.
"We have identified two locations and it will depend on customers' feedback on the FTZ site for the North Indian region," Nath said.
He expects an investment of between Euro 5 million and Euro 15 million in the FTZ.
DHL Logistics Pvt Ltd had set up the first FTZ in Chennai five years ago and the second one in?Mumbai.
The North Indian FTZ will be designed to handle the time- and temperature-sensitive products from life-sciences and pharmaceutical industries, hardware of oil & gas and aviation sectors as well as luxury products among others.
Nath said Chennai and Mumbai FTZs were also being expanded in response to the Indian market demand for logistics management.
He also cited strong demand from India's small and medium industries which will drive demand for logistics management.
Cities such as Chandigarh, Ludhiana and Surat will be part of the 100 Smart Cities development in India, he noted, pointing out that small and medium enterprises (SMEs) demand would grow along the with the establishment of the Smart Cities.
Nath also cited the recent announcement by Ford Motors to ship its cars from the Indian plant to the United States, expanding from the traditional Asian and African export markets.
"That is interesting turn of events that you see in the country. This is because of the government blessing and the support to have that 'Make In India' and develop the manufacturing sector," he said.
The logistics other major plans in India will include "rakes" for carrying 20-foot and 40-foot containers on the railway network.
"We look at India as a large geography and a large hinterland. We are trying to connect transportation of large plants coming into the country and exports from SMEs through various destinations of loading, unloading and storage to shipments at ports," he said.
