Panattoni, Adani to set up logistics parks in Kochi

Kerala’s logistics sector is set for explosive growth with a slew of major companies including US-based Panattoni and Adani Group identifying Kochi and its suburbs for establishing logistics parks. Kalamassery, Edayar and Parakadavu, in Angamaly, have been identified by the companies. The completed projects are expected to generate several hundred new jobs.

Industries Minister P Rajeeve said California-based Panattoni, which is a major player in Europe’s industrial real estate sector, has zeroed in on a 100-acre plot at Edayar Industrial Estate. Another big project coming up in Kochi is the one envisaged by the Adani Group. The group has decided to invest Rs 500 crore to develop a park on a 70-acre space near HMT in Kalamassery.

Meanwhile, e-commerce platform Flipkart’s facility is nearing completion at the Kalamassery Park and is expected to become operational by the end of the year. The facility is spread over an area of 5.5 lakh sqft. The other companies opening up operations at the Kalamassery Park will be handled by Adani. A third park will come up at Parakadavu, in Angamaly. The 2.5 lakh sqft facility is being set up by a Bengaluru-based company, the minister said.

Rajeeve said Kochi is well positioned when it comes to infrastructure facilities and connectivity. The proximity to Cochin Port and easy access to Vizhinjam Port are attractions. According to the minister, these facilities will help create hundreds of new jobs.

The setting up of logistics parks can be attributed to the growing warehousing market in Kochi, Knight Frank India, an international property consultancy, highlighted in a 2023 report. Transaction volumes in the city’s warehousing market shot up by 239% to 0.9 mn sqft in 2022-23 from 0.3 mn sqft the previous year. The jump dramatically reduced market vacancies and queries for built-to-suit facilities that went up in FY23, it said.