Unveiling the Impending Transformation: Jewar Airport Poised to Revolutionize Noida’s Warehousing Sector
The upcoming Jewar International Airport in Noida is set to catalyze the region’s evolution into a dynamic warehousing and logistics hub, a domain traditionally dominated by Gurgaon, as per insights from industry mavens.
JLL’s analysis reveals that while Gurgaon and its vicinity boast a substantial warehousing stock of 41 million square feet as of H1 2021, Noida, Ghaziabad, and Greater Noida collectively offer merely 6 million square feet of Grade A and B space.
Chandranath Dey, Head of Operations and Business Development at L&I Consulting & PAGI, Logistics & Industrial, JLL, India, asserts, “The inception of the new airport, coupled with planned manufacturing infrastructures and developmental endeavors, fills in the missing pieces of the puzzle. Over the next 3 to 4 years, Noida is poised to emerge as a formidable contender against Gurgaon in the realm of warehousing clusters in North India.”
The choice of a warehousing location hinges on its proximity to consumer bases, manufacturing facilities, and crucial connectivity nodes such as roads, airports, and railways.
Vineet Agarwal, MD of TCI and President of ASSOCHAM, envisions the Noida International Airport at Jewar as an integrated multimodal logistics hub, poised to slash overall costs and transit times. He remarks, “India’s endeavor towards a forward-thinking infrastructure initiative will place it among the league of nations with pioneering logistics infrastructure.”
While Gurgaon boasts established manufacturing clusters from Manesar to Neemrana, Noida and Greater Noida harbor burgeoning electronic and defense manufacturing sectors.
In terms of connectivity, Gurgaon flaunts the Delhi International Airport, the largest Cargo Airport in India, NH-8 linking NCR and Mumbai, and a bustling logistics corridor alongside an upcoming western dedicated freight corridor.
The proposed Jewar International Airport is envisioned as a multi-modal transit hub at the Ground Transportation Centre, promising seamless connectivity across various public and private transport modes.
Rhitiman Majumder, CMO and Co-Founder of Pickrr, anticipates that the Noida International Airport at Jewar will redefine the landscape for sectors like Logistics & Supply Chain, positioning India prominently on the global logistics map. He emphasizes the critical role of air connectivity, particularly for logistics, in fostering future opportunities for the sector.
The Yamuna Expressway Industrial Development Authority (YEIDA) has slashed land acquisition costs for warehousing and logistics parks by over 30%, rendering Noida an attractive investment destination for international warehousing operators.
Despite the reduced rates, industry experts note that costs remain relatively high. Nevertheless, given its proximity to the forthcoming airport, companies may find the investment proposition compelling.
According to a Knight Frank India report, the committed land for warehouses nationwide spans 21,163 acres, with the potential to augment the existing 307 million square feet of warehousing stock by 63%.