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Positioning West Bengal as a key logistics hub

Positioning West Bengal as a key logistics hub

The report explores the role and potential of West Bengal in developing its logistics sector and becoming a hub to cater to Eastern and North-Eastern India

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Positioning West Bengal as a key logistics hub

The logistics sector is likely to be the backbone of economic development in the Eastern and North Eastern Indian states. West Bengal, in particular, with its strategic location and domestic and international trade linkages, has a definite and immediate potential to emerge as the logistics hub for the region. Estimates put the market size of the West Bengal Logistics sector at USD20 billion by 2020, with a myriad positive demand and supply side factors driving its growth. West Bengal is also well positioned to leverage existing infrastructural strengths, which includes having a waterfront of 950 kms, close to 16 per cent share of the total length of National Waterways, one of the highest road coverage, two operating international airports and one of the largest warehousing capacity in the Eastern part of the country. The state has recently introduced a state Logistics policy; to fully harness the sector’s potential, the government should now focus on strengthening coordination between industrial, infrastructural and logistical initiatives in the state, set up a Logistics Centre of Excellence, promote adoption of digital solutions to improving the efficiency of logistics service delivery, develop sector-focused skill-sets among the targeted workforce and help create an enabling climate for growth of start-ups in the sector.

This report elaborates on the above potential of West Bengal as a logistics hub and details the key steps that the state, as well as the broader region, will have to take to develop the logistics sector.

© 2018 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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