The government of Uttar Pradesh, led by Chief Minister Yogi Adityanath, is taking steps to establish a network of dry ports throughout the state in an effort to turn it into a major logistics hub and boost exports. Dry ports are inland intermodal terminals that serve as a gateway to international markets, allowing for the efficient handling and transportation of export cargo to sea ports.
Located in a landlocked region with multiple export clusters, Uttar Pradesh has a significant potential for the development of dry ports, which could significantly improve the transportation of export cargo to sea ports and stimulate economic growth in the state. The state’s new Warehousing and Logistics Policy 2022 encourages investment in both warehousing and logistics and dry ports, and the government’s efforts have already generated interest from both international and domestic companies. In addition to international interest, there is also strong domestic interest in investing in dry ports in Uttar Pradesh.
The development of dry ports in Uttar Pradesh is part of the state government’s broader efforts to transform the region into a logistics hub and increase exports. By investing in infrastructure and logistics, the government hopes to make it easier for businesses to transport goods and boost economic activity in the state. The establishment of a network of dry ports would not only improve the efficiency of cargo transportation but also create new jobs and stimulate economic development in the region.
What is a dry port and how it can help a land locked state ?
Dry ports are inland intermodal terminals that act as a vital link in the global supply chain, facilitating the efficient handling and transportation of export cargo to sea ports and serving as a gateway to international markets. These facilities, which can be located in landlocked areas like Uttar Pradesh, Uttarakhand, and other states, provide essential storage and handling services as well as connectivity to transportation networks, enabling the smooth and efficient movement of goods.
In landlocked Indian states, the development of dry ports can greatly enhance the transportation of export cargo to sea ports and stimulate economic growth. Through investment in infrastructure and logistics, the state government can improve the ease of transporting goods and boost exports, driving economic development and creating new job opportunities.
An Eligible Dry Port Project is a type of infrastructure development in India that is designed to facilitate the efficient handling and transportation of import and export cargo. These projects typically consist of an Inland Container Depot (ICD) and a Container Freight Station (CFS) that are developed on a minimum of 10 acres of land with a minimum capital investment of INR 50 crore (approximately USD 6.8 million). Equipped with permanently established (fixed) or other installations, such as equipment and machinery, these facilities provide services including the handling, clearance, and storage of loaded import and export containers under customs control.