Shipping conclave maps TN’s next phase in port-led logistics

CHENNAI: As Tamil Nadu ramps up infrastructure investments to support its growing industrial base, the focus is increasingly shifting to logistics, the connective between the ports, production hubs, and global trade.

At the sixth edition of the Southern Regional Shipping Conclave held here, policymakers and industry leaders agreed that the state’s port-led growth ambitions now hinge on deeper coordination, faster tech adoption, and greener operations.

Organised by the Southern India Chamber of Commerce and Industry (SICCI) and the Association of Multimodal Transport Operators of India (AMTOI), the forum brought attention to the dual reality of Tamil Nadu’s logistics sector: strong fundamentals, but lagging integration.

"Tamil Nadu has the ports, industrial corridors, and policy support, but supply chains remain fragmented and digital systems still operate in silos,” said VN Shiva Shankar, Senior Vice President of SICCI.

With over 1,000 km of coastline and three major ports (Chennai, Kamarajar (Ennore), and VOC Port), Tamil Nadu handles a significant share of India’s container and automobile exports. But as trade volumes rise, logistics bottlenecks are becoming harder to ignore.

Sunil Paliwal, Chairman of Chennai Port Authority, laid out steps being taken to modernise port operations. These include onshore power supply at Kamarajar Port, investments in green tugs, a parking plaza, and a multimodal logistics park.

“Green infrastructure and digital standardisation are not optional anymore, they’re essential for staying globally competitive,” he said.

The event also saw the release of a detailed shipping and logistics report by SICCI and the Centre for Excellence in Logistics and Supply Chain (CoELSCM), projecting Tamil Nadu’s logistics sector to grow from $48.1 billion in 2021 to $250 billion by 2030, supported by a Rs 10,000 crore investment pipeline.

The report noted a sharp rise in warehousing demand across Chennai, Coimbatore, and Hosur, backed by institutional capital and a dedicated state policy. Chennai alone has recorded over 20 million sq. ft in leasing activity since 2021.

To improve regional cargo flow and reduce overdependence on road transport, new multimodal logistics parks have also been proposed in Madurai and Kattupalli.

While Tamil Nadu was ranked among the top ‘Achievers’ in the national LEADS logistics index, the report pointed to persistent issues such as logistics costs remaining at 13 to 14 per cent of GDP, well above global benchmarks. Multimodal corridors are still under development, and large parts of the workforce remain unorganised and digitally untrained.

Bana Bihari Nayak, Managing Director of the Tamil Nadu Apex Skill Development Centre for Logistics, stressed the need to align skilling programmes with the sector’s rapid technology transition, particularly in warehouse automation, AI-backed cargo systems, and digital fleet operations.

Industry representatives called for faster clearance processes, streamlined policy mechanisms, and broader adoption of real-time tracking across freight modes.

The conclave underscored that efficiency will depend not just on expanding capacity, but on how seamlessly Tamil Nadu can move goods from the factory floor to the vessel.

The bigger challenge, as many noted, is ensuring that ports, highways, railways, industrial hubs, and digital systems operate as one unified supply chain.