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By:

Bhalchandra Chorghade

11 August 2025 at 1:54:18 pm

Unlocking the true potential of infrastructure led growth

Mumbai: The rapid expansion of India’s logistics sector is closely tied to the parallel growth of infrastructure, industrial activity and global trade integration. Within this context, Navi Mumbai is steadily positioning itself as a critical node in the country’s logistics network, owing to its proximity to key gateways such as the Jawaharlal Nehru Port Authority and the upcoming Navi Mumbai International Airport. This locational advantage is further amplified by transformative infrastructure...

Unlocking the true potential of infrastructure led growth

Mumbai: The rapid expansion of India’s logistics sector is closely tied to the parallel growth of infrastructure, industrial activity and global trade integration. Within this context, Navi Mumbai is steadily positioning itself as a critical node in the country’s logistics network, owing to its proximity to key gateways such as the Jawaharlal Nehru Port Authority and the upcoming Navi Mumbai International Airport. This locational advantage is further amplified by transformative infrastructure projects like the Mumbai Trans Harbour Link, the proposed Multi Modal Corridor and the Dedicated Freight Corridor. However, the true value of these large-scale developments can only be fully realized through the creation of integrated logistics ecosystems, making the development of a dedicated logistics park not just beneficial but essential. The Integrated Logistics Park (ILP) planned by the City and Industrial Development Corporation (CIDCO) near Chirle Village in Pushpak Node represents a strategic intervention designed to bridge infrastructure capacity with operational efficiency. Infrastructure projects such as ports, airports and freight corridors generate immense throughput potential, but without organized logistics zones, inefficiencies in storage, distribution and multimodal transfer can undermine their effectiveness. The ILP addresses this gap by creating a centralized, well-planned hub where warehousing, transportation and value-added services coexist within a unified framework. This integration reduces transit times, lowers costs and enhances supply chain reliability—key requirements in a competitive global economy. “Navi Mumbai’s strategic location, supported by world-class infrastructure such as JNPA, NMIA and enhanced regional connectivity, positions it as a natural hub for logistics and allied industries. Through the development of the Integrated Logistics Park, CIDCO aims to create a future-ready ecosystem that will facilitate efficient movement of goods, attract investments, and support economic growth. The pilot phase is a significant step towards unlocking this potential and establishing Navi Mumbai as a logistics hub of National importance,” said Vijay Singhal, Vice Chairman and Managing Director, CIDCO Critical Role This vision underscores the critical role logistics parks play in translating infrastructure investments into tangible economic outcomes. By earmarking approximately 374 hectares and structuring it into seven logistics zones, CIDCO is ensuring that the ILP is not merely a storage space but a comprehensive ecosystem. The inclusion of wide road networks, trunk infrastructure and utility systems reflect an understanding that logistics efficiency depends as much on internal planning as on external connectivity. The ILP’s design enables seamless integration with regional transport networks, ensuring that goods can move swiftly between production centers, ports and consumption markets. Moreover, the alignment of the project with the Government of Maharashtra’s MIDC Pass-through Policy highlights the policy-driven approach to industrial and logistics development. The pilot phase, involving the allotment of 12 plots over 72 hectares, demonstrates a calibrated strategy to attract private participation while maintaining regulatory oversight. By developing trunk infrastructure upfront, CIDCO reduces entry barriers for investors, accelerating project implementation and ensuring uniform standards across the park. Broader Initiatives The importance of the logistics park is further amplified when viewed alongside the broader urban development initiatives in Navi Mumbai. Projects such as Educity, Medicity and Sportscity contribute to creating a holistic urban ecosystem that supports workforce requirements and enhances livability. This integrated approach ensures that the logistics hub is not an isolated industrial zone but part of a larger economic and social framework. In essence, while infrastructure projects lay the foundation for connectivity and capacity, logistics parks operationalize these advantages by enabling efficient, coordinated, and scalable movement of goods. The ILP in Navi Mumbai exemplifies how targeted planning can unlock the full potential of infrastructure investments, positioning the region as a logistics hub of national importance and a driver of sustained economic growth. Strategic proximity underlined According to CIDCO the logistics sector in India is witnessing rapid expansion, driven by the growth of e-commerce, manufacturing, and global trade. In this evolving landscape, Navi Mumbai is emerging as a key logistics hub. It cited Navi Mumbai's strategic proximity to Jawaharlal Nehru Port Authority (JNPA), the Navi Mumbai International Airport (NMIA), and strong connectivity through major infrastructure projects such as the Mumbai Trans Harbour Link (MTHL), the proposed Multi-Modal Corridor, and the Dedicated Freight Corridor. Vice Chairman and Managing Director of CIDCO, Vijay Singhal, stated that CIDCO aims to create a future-ready ecosystem through the Logistics Park that will facilitate efficient movement of goods, attract investments, and support economic growth. "The pilot phase is a significant step towards unlocking this potential and establishing Navi Mumbai as a logistics hub of National importance," he added. The CIDCO has launched a pilot initiative by inviting Expressions of Interest (EOI) through a competitive bidding process for 12 plots.

Indian Shipbuilding A Must Win Marathon

Shipbuilding

With a coastline of 7500 KM, it is hard to imagine, that for the first 20 years (1947-1967) India had no ‘shipping ministry’. In 1967 a Shipping ministry “coupled” with ROAD transport was established. Since then, this ministry has been on a name changing ride, not once, not twice but six times. In 2009 the “ROAD Transport and Highways” was de-coupled and ‘Shipping’ ministry was formed. Turning point came in 2015 with a clear maritime vision for 2030 and 2047. Ministry was re-christened, aptly to Ministry of “Ports, Shipping and Waterways” in 2020.


Why is Shipbuilding important for a country?

a. A Shipyard becomes an opportunity hub and like a queen bee requires the support of an industrial colony to manufacture machinery and equipment.

b. National Shipyards support fleet renewal needs of the Navy.

c. Contributes to national GDP, increases inflow of FOREX.


Korea shipbuilding is 8% of GDP. Japan’s automobile industry is 2.9% of GDP. India’s shipbuilding a meagre 0.000578% of GDP. In context, India’s pharmaceutical industry, ranked third largest in the world is 1.72% of India’s GDP.


International Shipbuilding Market

The market is estimated to reach around USD 200 billion by 2029, growing at a CAGR of 4.84%. While India is at bottom with 0.07% of world share, behind Philippines 1.5% and Vietnam 1%, however on the positive side, India has done well in taking care of its defence needs, with 37 of 39 Naval ships being built in India yards. Rear Admiral S Shrikhande researching on maritime as a Fellow at Wollongong University, Australia, says “Shipbuilding in India needs both, serious incentivisation and dogged determination and not harping on being a big ship breaking country. That Garden Reach shipyard has a $54 million order for merchant ships from a German owner, is a good sign.”


Were Shipyards of 20th century in Flight mode?

Prominent shipyards in India were built in the colonial period. Mazagon Dock 1774, Garden reach 1884, Hindustan shipyard 1941 to cater to British navy and merchant fleet needs. Cochin shipyard 1972, Adani Katupalli 2013, Reliance Naval and Engineering, Rajula Gujarat 1997 and others have limited capacity, hence a lot more work to do. Capt. Subhangshu Dutt (Singapore) a mariner and now a shipowner, says “GOI should hold hands in any collaboration till the marriage with the foreign entity is reasonably stable. He also suggests that “new shipbuilding sites should be given to existing successful shipyards since they have decades of experience and talent. Consortium of 3 or more parties may also be good idea”.


Shipbuilding GOLD

As per SPLASH report the demand for LCO2 carriers could reach 2,500 ships by 2050. As per other estimates, 40% of global fleet of ships could have wind propulsion by 2050. A surge in such vessels is due to an unparallel waves of decarbonization in the shipping industry. Demand for ships with ‘carbon neutral’ badges, such as Dual fuel, Wind assisted, Nuclear fuel ships, Hydrogen powered ships, Liquified CO2 (LCO2) carrier, is outstripping supply. A must in the ‘bucket list’ of every Shipyard. Pinning down a standard ROI in shipbuilding is not easy, but experts suggest it could range from 4% to 15% for the high demand ‘carbon neutral’ ships. While an LNG new build vessel could cost US$ 250 million upwards.


International collaboration

On China’s shipbuilding success story, Manoj Pandalanghat (Singapore) a mariner and ship owner believes that “China has around 50 active Shipyards. Each have a few large dry docks. In each dock two or more large vessels are built simultaneously. Thus, a single yard is able to roll out 2/3 vessels/month, 36 vessels/year and 50 shipyards roll out 1800 vessels/year”.


China could be a jaldi-5, but India needs a sturdy Mount Fiji. Besides technology, Japanese bring the most important hand baggage of soft-skills and culture, essential for success from keel laying to delivery. Maruti’s is a standing example.


Food for thought for New Delhi

a. Expertise: Hire Naval Architects and shipbuilding experts with current international experience.

b. Government assistance: Land, Financial support, subsidies and timebound clearances.

c. Monitoring: PMO should monitor the first 5 to 10 years till Shipbuilding takes-off on this long-haul flight to destination 2047.


India’s Shipbuilding is expected to grow to $237 billion by year 2047. On a back of the envelope calculations this works out to about 4% of India’s 2047 projected GDP of $ 5 trillion. While cars are driven on roads, however the Ministry of roads and transport has little to do with “Automobile manufacturing”. On a similar note, ‘Shipbuilding’ as an industry has little to do with Ports, Shipping and Waterways, thus it may be worthwhile to consider a separate ‘Ship-building’ wing in the Ministry of Ports, Shipping and Waterways headed by a dynamic cabinet rank minister. Since 2047 targets are stiff and an uphill task, so in all probabilities, the officials in Ministry of Ports, Shipping and Waterways are likely to push beneath the carpet, delays and failures of Shipbuilding with sweet success stories of “Ports, Shipping and Waterways” and if this does happen then India will not only miss the Shipbuilding bus of 21st century but a lot more from a national security and strategic perspective.


(The author is a Shipping and Marine consultant. Member Singapore Shipping Association and empaneled with IMO as a specialist consultant. Views personal.)

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