4 Types of Warehouses You Can Invest In


A warehouse is one of the most common commercial properties for storage of goods and commodities. While some of them are huge and allow several multi-axel trucks and vehicles to come an in and load and unload goods simultaneously, other are not so big. Some of them also allow railroad cars to come in and load and unload commodities. As India’s economy is witnessing fast growth and is emerging to be among the top economies of the world, the logistics and warehousing industry is set to play a critical role and contribute towards the strength of the economy.

You are reading: 4 Types of Warehouses You Can Invest In

The logistics and warehousing is expected to become a $200 billion industry in India by next year and a lot of action is expected in this field. As the industry grows and evolves, these 4 types of warehouses present excellent investment opportunities:

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1 Bonded Warehouses or Storage: These warehouses store imported goods on which import duty has not been paid yet. These warehouses can be owned by government as well as private entities.

If such a warehouse is owned and run by a private company, it is mandatory for it to obtain a license for the same from government.  This way, government exercises its powers on importers and forces then to pay import duties since the importer cannot open r take control of the goods until duties are paid. Such warehouses are usually located near ports.

2 Distribution Centres: These warehouses usually keep goods and commodities for short durations. Although they are huge in size, they do not keep products for more than 6 months or 1 year as in other conventional warehouses but are swiftly transferred to various customers or even retailers. These distribution centres often keep goods that are perishable in nature.

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These centres are located close to transportation centre in order to minimize distribution and delivery time. In many cases, goods are just stored for a day or even less, such as food items. They are brought in during morning hours and sent out by evening.

3 Automated Warehouses: The advances in Information Technology (IT) and Robotics have now made inroads in warehousing industry and are changing rules of the game to quite an extent. These warehouses can have just a few workers to lift and move thousands of kilograms of weight. There are conveyor belts also, transporting goods room one corner of the warehouse to another. Some of the warehouses have also started using robots to perform some of the mundane and usual tasks in a warehouse in order to bring down costs. IT now makes locating a product inside a warehouse much easier and also helps in tracking inward and outward movement of goods. Such warehouses are becoming very popular and are being set up across the country. Even the existing warehouses are incorporating IT and robotics to enhance operations.

4 Climate Controlled Warehouses: There are warehouses that have special arrangements for storing goods under controlled temperatures and under frozen conditions. These warehouses can also have humidity controlled conditions for sensitive goods that cannot withstand humidity. With evolving customer needs and changing market dynamics, the need of such warehouses is increasing fast.

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Category: Lifestyle

Debora Berti

Università degli Studi di Firenze, IT

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