Tamil Nadu’s logistics infrastructure performs strongly, surpassing national and coastal averages in most areas

However, the ‘adequacy and quality of rail infrastructure’ falls slightly below both averages, according to the 2024 Logistics Ease Across Different States (LEADS), which provides an in-depth comparative analysis of logistics performance across States and Union Territories. First- and last-mile connectivity’ and ‘adequacy and quality of terminal infrastructure’ align with national and coastal average scores, respectively, showing consistent performance with scope for improvement, says the report released on Friday 3 Jan ’25.

In 2024, Tamil Nadu maintained its position as an ‘Achiever’ within the coastal group, along with Maharashtra, Gujarat, Odisha, and Karnataka, showcasing consistent commitment to logistics efficiency. The State outperforms the national average across all indicators, with its performance either better or on par across the board. However, it needs to invest in rail and terminal infrastructure, the report said.

The State’s performance is reinforced by targeted interventions and the implementation of projects in the logistics sector. Tamil Nadu is perceived positively in ‘Ease of Government Facilitation,’ performing better than the national average. Its performance in ‘Ease of Entry from Neighbouring States/UTs’ and ‘Quality of Grievance Redressal Mechanisms’ matches both national and coastal averages, indicating consistent results with potential for further improvement, the report said.

Tamil Nadu is spearheading significant logistics infrastructure initiatives to enhance connectivity and operational efficiency. It is developing multi-modal logistics parks (MMLPs) in Chennai (Mappedu) and Coimbatore, with the Mappedu MMLP being India’s first. This ₹1,500-crore project is being executed in collaboration with Reliance Industries under a DBFOT model. New greenfield projects, such as the Cuddalore Port, the Parandur greenfield airport, and the Hosur greenfield airport, are further strengthening the logistics network.

Tamil Nadu is also repurposing unused factory sheds in industrial parks for logistics activities, designating over 50 acres of land for logistics parks, and promoting private participation in developing truck terminals and common logistics facilities. It is enhancing its logistics services through targeted initiatives by the Tamil Nadu Skill Development Corporation, focusing on identifying skill gaps, introducing training programmes, and preparing a comprehensive Logistics Sector Skill Plan.

Ease of doing business in the logistics sector is being enhanced by extending the single-window clearance system under Guidance Tamil Nadu and FaMe TN, simplifying approvals for logistics operations and over-dimensional-cargo movement. The State has implemented Biz Buddy, a grievance redressal platform. Notable incentives include waiving sub-leasing charges in government industrial parks for logistics projects …to boost efficiency and competitiveness.

Some of the short-term opportunities suggested in the report include developing logistics facilities in Trichy and Madurai, …, offering incentives to private players, developing a greenfield freight corridor between Chennai and Tuticorin via Trichy, and reducing port fees while subsidising coastal cargo transshipment.

Urban congestion in Coimbatore and Chennai hampers last-mile deliveries, increasing delays and operational costs. Port congestion at Chennai and Kamarajar adds to inefficiencies in loading and unloading…. The airport’s location within the city adds to logistics challenges, highlighting the need for an Air Freight Station outside the city. Delays in implementing announced projects, such as the Furniture Park at Tuticorin and Tuticorin–Coimbatore connectivity, are also contributing to inefficiencies.