Deltabulk Shipping secures Nagpur MMLP contract with bid of Rs 3.6 bn

23 Nov 2023 CW Team

Additionally, Deltabulk Shipping has committed to sharing an extra 10% of its quarterly revenue with the National Highways Logistics Management (NHLM) if it surpasses the estimated business outlined in the bid. The company anticipates total revenue of Rs 335.97 billion over the 45-year concession period.

MMLP bids are determined based on the minimum guaranteed revenue share, calculated using the net present value discounted at a specified rate quoted by the bidders. J M Baxi Ports & Logistics Ltd, the sole other bidder, proposed a minimum guaranteed revenue of Rs 1694.4 million.

Prakash Gaur, CEO of NHLM, confirmed the awarding of the bid to Deltabulk Shipping. NHLM is a subsidiary of the National Highways Authority of India (NHAI), the country's highway development agency.

Deltabulk Shipping, a third-party logistics company led by Indian-born Mudit Paliwal, is set to invest around Rs 3.6 billion to develop the 150-acre MMLP.

This marks the fifth MMLP project awarded by NHLM, following developments in Chennai, Bengaluru, Indore, and Jogighopa (Guwahati).

Under the PM Gati Shakti National Master Plan (NMP), the Ministry of Road Transport and Highways aims to establish 35 multimodal logistics parks across India, with 15 of them planned within the next three years.

A multimodal logistics park serves as a central hub for cargo consolidation and distribution, utilising various modes of transport to optimise shipments and offer diverse logistics and value-added services.

Typically equipped with intermodal connectivity, such as dedicated railway lines, access to highways, and links to airports, seaports, or inland waterway terminals, MMLPs enhance efficiency in freight handling. These facilities include warehouses, specialised cold chain facilities, and terminals for bulk and break-bulk cargo.

Value-added services provided by MMLPs encompass customs clearance, late-stage processing activities like sorting and grading, and cold storage, offering users flexibility at a centralised location.

Deltabulk Shipping India, the Indian branch of London-based Delta Corp Holdings, secured the contract to develop a multimodal logistics park (MMLP) in Nagpur by offering the highest minimum guaranteed revenue of Rs3.6589 billion for the 45-year term, according to multiple sources. Additionally, Deltabulk Shipping has committed to sharing an extra 10% of its quarterly revenue with the National Highways Logistics Management (NHLM) if it surpasses the estimated business outlined in the bid. The company anticipates total revenue of Rs 335.97 billion over the 45-year concession period. MMLP bids are determined based on the minimum guaranteed revenue share, calculated using the net present value discounted at a specified rate quoted by the bidders. J M Baxi Ports & Logistics Ltd, the sole other bidder, proposed a minimum guaranteed revenue of Rs 1694.4 million. Prakash Gaur, CEO of NHLM, confirmed the awarding of the bid to Deltabulk Shipping. NHLM is a subsidiary of the National Highways Authority of India (NHAI), the country's highway development agency. Deltabulk Shipping, a third-party logistics company led by Indian-born Mudit Paliwal, is set to invest around Rs 3.6 billion to develop the 150-acre MMLP. This marks the fifth MMLP project awarded by NHLM, following developments in Chennai, Bengaluru, Indore, and Jogighopa (Guwahati). Under the PM Gati Shakti National Master Plan (NMP), the Ministry of Road Transport and Highways aims to establish 35 multimodal logistics parks across India, with 15 of them planned within the next three years. A multimodal logistics park serves as a central hub for cargo consolidation and distribution, utilising various modes of transport to optimise shipments and offer diverse logistics and value-added services. Typically equipped with intermodal connectivity, such as dedicated railway lines, access to highways, and links to airports, seaports, or inland waterway terminals, MMLPs enhance efficiency in freight handling. These facilities include warehouses, specialised cold chain facilities, and terminals for bulk and break-bulk cargo. Value-added services provided by MMLPs encompass customs clearance, late-stage processing activities like sorting and grading, and cold storage, offering users flexibility at a centralised location.