Tamil Nadu plans urban logistics hubs in South Chennai to ease last-mile delivery

Tamil Nadu is preparing a major push to strengthen urban freight movement in the fast-expanding southern corridor of Chennai, with plans to develop a network of urban logistics consolidation centres as part of its upcoming City Logistics Plan.

The proposed hubs are likely to come up within a 10-km radius covering Siruseri and Kelambakkam, two of the city’s fastest-growing residential and commercial zones. With rapid urban expansion and increasing demand from e-commerce, quick commerce, and courier services, the southern belt has emerged as a key logistics demand centre.

At present, much of the cargo serving these areas is routed from existing hubs located in Chromepet, Guindy, Tambaram, and other parts of North and Central Chennai. This has resulted in longer delivery routes and increased travel time for light commercial vehicles handling last-mile deliveries.

Industry sources indicate that vehicles currently undertake round trips of nearly 60 km every day to serve southern neighbourhoods. This not only adds to traffic congestion but also increases fuel costs and operational inefficiencies.

The proposed urban logistics consolidation centres are expected to significantly improve this scenario. Each facility is estimated to handle around 1,000 to 1,500 tonnes of cargo, supported by inbound heavy vehicles and hundreds of light commercial vehicles for local deliveries.

By bringing cargo closer to end-consumer markets, the hubs are expected to reduce last-mile delivery distances by 15 to 20 km per vehicle. Estimates suggest that this could cut nearly 4,000 vehicle-km per day and reduce greenhouse gas emissions by around 3 to 3.5 tonnes daily.

The move is also expected to support faster delivery timelines, an increasingly critical factor for online retail and quick commerce platforms.

For South Chennai’s rapidly growing logistics and warehousing ecosystem, this initiative could become a game-changer, improving operational efficiency while supporting sustainable urban mobility.