Chennai, July 20 (KNN) Due to the increasing industrial activity and favourable policies related to GST, the logistics industry is seeing a rising demand for warehousing space in Tamil Nadu, S Narasimhan, MD Sattva Logistics, and chairman, CII Task Force on Ports (southern Region) said.

The demand alone in Chennai has doubled in the last three years. Apart from regular imports, there is an increase of imports like raw materials, which are generating demand for warehousing spaces.

One of the primary reason for the increased demand is the availability of ports and road connectivity with access to the hinterlands. Another major reason is that the single tax system has made it easier for the firms to have large warehouses in hubs.

S Rajkumar, Shri Kailash Logistics Chairman said that the city's outskirts have potential to be developed into a logistics hub in the Chennai- Bengaluru Industrial Corridor. He said that after the GST regime, there is a demand for warehousing in Tier- 2 cities like Madurai, Salem, etc.

However, with the increase in demand for e-commerce services in south districts of Tamil Nadu, the firms are not able to meet the demands due to a shortage of warehouses.  (KNN Bureau)