Telangana’s dry port logistics drive

Sub: Geo

Sec: Eco geo

Context:

What is a Dry Port?

A dry port is an inland terminal that connects to a seaport by rail or road, acting as a trans-shipping hub for sea cargo.
Exporters can complete all customs formalities at the dry port, saving time and reducing costs.
In addition to their role in cargo transhipment, dry ports may also include facilities for storage and consolidation of goods, maintenance for road or rail cargo carriers and customs clearance services.
The location of these facilities at a dry port relieves competition for storage and customs space at the seaport itself.
In India, dry ports are in: Andhra Pradesh, Assam, Chhattisgarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, West Bengal.

Telangana Government’s Initiative:

The Telangana government is working on developing a dry port in the northern corridor of the state, in a public-private partnership (PPP) mode.
The State aims to enhance its logistics infrastructure to support industrial development and boost exports.
Feasibility studies are ongoing to consider setting up additional dry ports to further increase export capabilities.
At present, exports from Telangana are routed through ports in Tamil Nadu and Andhra Pradesh, increasing logistical complexities.

Previous Proposals:

In July 2021, the government, under K Chandrasekhar Rao’s leadership (then known as Telangana Rashtra Samithi, now Bharata Rastra Samithi), approved plans for a 1,400-acre multi-modal logistics park near Nalgonda through a PPP model.
It also decided to establish two integrated container depots (ICDs) in Hyderabad, similar to the Concor ICD at Sanathnagar, to collaborate with the Customs department and promote exports.
A proposal to set up 10 additional integrated logistics parks across Telangana was also approved, but none of these projects, including the dry port, have commenced.

Importance of Logistics for Telangana:

Telangana’s industrial strengths include pharmaceuticals, food processing, textiles, and the defence and aerospace sectors.
A robust logistics infrastructure is crucial to support these industries and enhance export capabilities.
According to government data, Telangana’s logistics sector is growing at 12% annually, and the development of industrial corridors will likely increase demand for logistics services further.

Source: TH_BL