“ We already operate out of Bangalore and will remain fairly similar to what they will be in future. The only difference is that it will allow us to , one be prepared for the next 20 years . We already run about 82 direct routes from Bangalore, this new facility will help us connect to 260 cities," said Safexpress managing director Rubal jain.
A market research report by Technavio on the third-party logistics market in India, pegs a market value of more than $31 billion by 2022 owing to tax reforms and initiatives by third party logistics service providers .
While the sector is poised for growth, logistics costs in India remains high due to external factors.
“For us the definitely the costs have gone up by at least 15-18 percent, fuel itself is up 27 percent in the last 1 year which itself consist of 50-55 percent of our costs. Rents for land have gone up, congestion, toll fees have gone up an average 15% all of which have added to the cost “says Rubal .
The company which currently has a total warehousing area of over 14 million square feet , expects to open 7 more in the next 1 year .