Allcargo Logistics to foray into container terminal operation business

28 Sep 2021 CW Team

Allcargo Logistics is planning its foray into the container terminal operation business to capitalise on synergies with its container freight stations (CFS) and inland container depots (ICD) across India.

This does not include greenfield port development because those are infrastructure projects, according to Ravi Jakhar, Chief Strategy Officer at Allcargo Logistics. However, if there are opportunities for container terminals, they could look into it.

Allcargo Logistic operates container freight stations at the Jawaharlal Nehru Port Trust (JNPT), Chennai, Kolkata, and Mundra ports, as well as an inland container depot in Dadri, Uttar Pradesh, with a combined capacity of over one million twenty-foot equivalent units (TEUs).

A greenfield ICD is also being built in Jhajjar, Haryana. The company is looking to expand its CFS/ICD business by acquiring asset-light facilities.

Allcargo Logistics bought an 85% stake in Speedy Multi modes Ltd, which operates container freight stations in both JNPT and Mundra Port, in August to expand its CFS business.

JNPT owns the 68 acre CFS of Speedy (about 6 km from the port), but it was given to a private firm on a 20-year O&M contract on 1st January 2006.

Central Warehousing Corporation (CWC) is leasing the Speedy Multi modes CFS in Mundra.

Allcargo now has two CFSs servicing JNPT and Mundra Port, thanks to the acquisition of the Speedy Multi modes.

Allcargo is also planning a warehouse in the Nhava Sheva region, which is home to JNPT.

It is also evaluating key locations on dedicated freight corridors in the west and east for the establishment of private freight terminals/ICDs on a Purchasing Power Parity (PPP) basis.

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Also read: New truck terminal to be developed at New Mangalore Port by 2023

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