DP World & Madhya Pradesh Govt sign an agreement for a New Inland Logistics Hub

DAVOS: DP World on Thursday signed an agreement with the Government of Madhya Pradesh to develop the Powarkheda Logistics Composite Hub, an inland logistics gateway designed to strengthen India’s export competitiveness and accelerate inclusive economic growth in Central India.

The agreement between DP World and the Government of Madhya Pradesh was exchanged at the World Economic Forum in Davos in the presence of Sultan Ahmed bin Sulayem, Group Chairman and CEO of DP World, and Dr. Mohan Yadav, Hon’ble Chief Minister of Madhya Pradesh.

It marks a significant step in positioning Madhya Pradesh as a key node in India’s global trade network, leveraging its central geography, export momentum, and rapidly expanding agri-processing and manufacturing base. With this development, DP World is enhancing the state’s infrastructure and supply chain capabilities to align with national trade ambitions and supporting long‑term economic growth.

Dr. Mohan Yadav, Hon’ble Chief Minister of Madhya Pradesh, said: “This agreement with DP World is aligned with Madhya Pradesh’s vision to accelerate exports and build modern, resilient infrastructure that serves both industry and agriculture. DP World Powarkheda Hub will strengthen our state’s role as a central trade and logistics engine connecting key districts and clusters to ports, enabling value addition, and creating new opportunities for farmers, businesses and investors.”

Sultan Ahmed bin Sulayem, DP World Group Chairman and CEO, said: “The DP World Powarkheda Hub is designed to be a high-efficiency inland gateway that brings producers and manufacturers in Central India closer to global markets. By integrating rail connectivity, warehousing, cold chain, and end-to-end cargo management in one location, we will help farmers, MSMEs and large industries reduce logistics costs, improve reliability, and compete more strongly in global trade corridors. This hub is more than a logistics project. It plays a vital role in advancing Madhya Pradesh’s logistics capabilities, supporting sustainable trade flows.”

Madhya Pradesh: India’s Emerging Export Engine

Madhya Pradesh recorded its highest-ever exports of INR 66,218 crore (nearly $8 billion) in FY 2024-25. The state is also one of India’s leading vegetable-producing regions, and part of the country’s second-largest basmati rice belt. 

The Powarkheda Hub will significantly enhance access to global markets by enabling faster, more reliable, and cost-efficient containerised trade for key districts such as Dhar, Indore, and Raisen, all within reach of central rail corridors. These districts are driving growth across sectors from pharmaceuticals to textiles, aluminium products and agri-commodities.

Spread across 88.3 acres, the Powarkheda Hub is being developed as a rail-centric inland gateway connecting Central India directly to Jawaharlal Nehru Port (JNPA) at Nhava Sheva, India’s largest container port, located near Mumbai on the country’s west coast. The hub will offer:

• Containerised EXIM rail connectivity to JNPA, supporting faster and more reliable port access.
• Domestic container rail connectivity, linking Madhya Pradesh to major consumption centres. 
• Warehousing and temperature-controlled cold storage supporting agri and industrial supply chains. 
• 25 acres of plotted land on lease at concessional rates for value addition, processing, manufacturing and cargo aggregation to help businesses cut costs and turnaround time.
• On-site container services, including repair and maintenance, to support exporters and service continuity. 

Expected impact:

Reduced post-harvest losses (estimated 20–25% in perishables) through stronger cold chain and storage, enabling higher-value market access.

Up to 30–40% reduction in transit time to JNPA compared to road transport.

Improved reliability with greater shift to rail, helping lower emissions and reduce road congestion.