DP World, Madhya Pradesh Govt Sign Pact to Develop Powarkheda Logistics Hub

DP World on Thursday signed an agreement with the Government of Madhya Pradesh to develop the Powarkheda Logistics Composite Hub, an inland logistics gateway aimed at boosting India’s export competitiveness and driving inclusive economic growth across 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.

The partnership marks an important step in positioning Madhya Pradesh as a key node in India’s global trade network, leveraging the state’s central location, rising export momentum, and fast-expanding agri-processing and manufacturing base. Through this development, DP World will strengthen the state’s logistics infrastructure and supply-chain capabilities in line with national trade objectives, while supporting long-term economic growth.

Dr. Mohan Yadav, Hon’ble Chief Minister of Madhya Pradesh, said, “This agreement with DP World aligns with Madhya Pradesh’s vision to accelerate exports and build modern, resilient infrastructure that supports both industry and agriculture. The DP World Powarkheda Hub will enhance the 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, Group Chairman and CEO of DP World, said, “The DP World Powarkheda Hub is being developed as 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 at a single location, we will help farmers, MSMEs, and large industries reduce logistics costs, improve reliability, and strengthen their competitiveness across global trade corridors. This hub is more than a logistics project; it plays a vital role in advancing Madhya Pradesh’s logistics ecosystem and supporting sustainable trade flows.”

Madhya Pradesh: India’s emerging export engine

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

The Powarkheda Hub is expected to significantly improve access to global markets by enabling faster, more reliable, and cost-efficient containerised trade for key districts such as Dhar, Indore, and Raisen, all located along central rail corridors. These districts are driving growth across sectors including pharmaceuticals, textiles, aluminium products, and agri-commodities.

Spread over 88.3 acres, the Powarkheda Hub is being developed as a rail-centric inland gateway that will directly connect Central India to Jawaharlal Nehru Port Authority (JNPA) at Nhava Sheva, India’s largest container port near Mumbai on the west coast. The hub will offer:
• Containerised EXIM rail connectivity to JNPA, enabling faster and more reliable port access.
• Domestic container rail connectivity linking Madhya Pradesh to major consumption centres.
• Warehousing and temperature-controlled cold storage to support agri and industrial supply chains.
• About 25 acres of plotted land on lease at concessional rates for value addition, processing, manufacturing, and cargo aggregation to help businesses reduce costs and turnaround time.
• On-site container services, including repair and maintenance, to support exporters and ensure service continuity.

Expected impact:
Reduced post-harvest losses, estimated at 20–25 per cent for perishables, through stronger cold-chain and storage infrastructure, enabling access to higher-value markets.
Up to 30–40 per cent reduction in transit time to JNPA compared to road transport.
Improved reliability through a greater shift to rail, helping lower emissions and ease road congestion.