Preamble
The Central Warehousing Corporation (CWC) has played a foundational role in developing warehousing infrastructure in coastal Karnataka. It established the Mangalore Warehouse in 1964, which was supported by the Kanara Chamber of Commerce and local merchants as a modern and objective system of dematerialized storage. CWC later expanded into the New Mangalore Port Trust (now New Mangalore Port Authority) and created a Container Freight Station (CFS) in the Panambur customs-bonded area, providing essential storage for import and export cargo and facilitating Customs operations for stuffing and de-stuffing containers.
Introduction
For the last 65–70 years, CWC has consistently delivered orderly and reliable warehousing services. It has supported the public distribution system in a substantial way, with agencies such as the Food Corporation of India using its facilities effectively.
As part of a national policy, CWC is now selling urban properties in congested areas to generate resources and reorient its core functions toward warehousing in regions where demand is highest. This shift supports new expansion, including areas crucial for FCI operations as well as for the dynamic private sector.
Strategic Expansion Priorities
CWC has been a pioneer in container operations and the establishment of Container Freight Stations. For future growth, certain regions in Dakshina Kannada, Udupi, Uttara Kannada, and Kerala offer substantial potential:
Udupi and Uttara Kannada
Udupi district, formed 25 years ago, presents an opportunity for a new warehouse at Mookambika Road Station on the Konkan Railway—an ideal location for long-term capacity, potentially serving 25 years of demand.
As warehousing demand grows nationwide and the private sector expands aggressively, CWC must secure its position in rural and strategically located areas.
In Uttara Kannada, Ankola Station is a suitable location due to its proximity to the Konkan Railway line and the potential for goods distribution in both directions.
Rail-Linked Warehousing Corridors
Goods arriving via the Konkan Railway can be efficiently unloaded and distributed regionally. Mookambika Road offers favourable conditions for land acquisition.
A quadruple line or loop-line principle can be implemented alongside tracks to build warehousing complexes connected to the National Highway.
This will allow wagon unloading, container stripping, and support for domestic supply chains where CONCOR is developing new CFSs.
Parcel vans attached to trains can enable faster movement of passenger parcels, small business cargo, postal and courier shipments, and e-commerce deliveries.
Integrated Logistics in Kerala
CWC can extend its reach into northern Kerala with facilities at:
– Manjeshwar
– Kumbla
– Kasargod North
– Kasargod South
– Up to Feroke Station
These locations experience a daily movement of 10,000–12,000 tonnes of sensitive and non-sensitive commodities. Sensitive items include black pepper, arecanut, and other horticultural products, while rubber and latex form a major non-sensitive category. CWC can collaborate with the Rubber Board of India to create specialized storage, potentially extending to Kottayam.
Kerala’s high land prices and road congestion necessitate single-track warehousing concepts with access to national highways to ensure efficient movement.
Long-Distance Distribution
Long-haul cargo distribution, particularly natural rubber, can be routed to northern consumption centres such as Ludhiana. Dedicated containerized parcel services can handle domestic traffic for north–south and east–west corridors. Cereals arrive mostly by bulk transport, while pulses continue to move by road.
Expanding in Mangalore
The Mangalore region is experiencing rapid growth in plastics, petrochemicals, and specialty products. CWC can secure revenue land near:
– Panambur Station, already connected to APMC markets
– Mangalore SEZ, including access to Mangalore Refineries and Petrochemicals
Additionally, land across the Konkan Railway Corridor is notified for controlled development, enabling new goods and parcel traffic routes under the upcoming Konkan Railway Zone.
A dedicated CFS for SEZ input/output handling can be developed, with evacuation via Southern Railway, South Western Railway, and the proposed Konkan Railway Zone. Capacity could reach 3–5 million tonnes annually.
Urban Property Optimization
CWC owns approximately 17,000 sq. metres of valuable land in Mannagudda, Mangalore, suitable for auction to a cooperative led by the Mangalore Business Committee. The site can support:
– Global Capability Centers (GCCs)
– Government offices
– Residential facilities
With its central location and high value, the land offers significant revenue potential. Using architectural planning, bridges can connect two towers across the plots, creating an integrated complex.
The potential land value is around ₹60 lakhs per cent (₹60 crores per acre), yielding a notable financial realization. These proceeds can be reinvested into rural warehousing with better rail access across the Konkan region, extending up to Karwar and Ankola.
Future infrastructural developments—such as the Ankola–Hubli rail line and Konkan Railway Zone expansions—will further strengthen supply chain efficiency and regional wellbeing.
Key Opportunities for CWC
a) Mangalore can assimilate global warehousing knowledge, leveraging its strong software ecosystem to support international logistics operations.
b) A server facility at Mookambika Road can serve national and international warehousing networks, including Africa, through South–South Cooperation. The New Mangalore Port Authority would support cargo destined for new markets.
c) The Mannagudda property can be auctioned after consultation with the district and state administration, developing cooperative facilities that enhance Mangalore’s attractiveness for GCCs. Revenue can support advanced railway-siding-based warehouses and container-handling facilities.
d) CWC can establish a Regional Office for South & International operations in Mangalore, supporting precious metal imports (gold and silver) from countries like South Africa and Australia.
e) A future GCC in Mangalore can serve Asia-Pacific and Indian Ocean nations, combining modern technology with traditional logistics expertise. It can also act as an SPV for empty container storage, repositioning, and leasing—especially important for South India’s growing trade demand.
f) These developments will decentralize infrastructure, reducing pressure on Bengaluru, New Delhi, and Mumbai, while creating a powerful southern logistics and administrative hub.
Conclusion
CWC has the opportunity to place Mangalore on the divestment list and engage local merchants and citizens in a participatory approach. By shifting core operations to areas with efficient rail–road convergence, warehousing performance can significantly improve.
Strengthened port-based warehousing will support rising import and export volumes for mass-consumption goods. As India is poised to increase agricultural output by 50 million tonnes, robust warehousing will be essential for both domestic distribution and international trade.
