Distriparks is planning to expand its rail business and will stall investments
on its container freight business, its Chairman was quoted as saying recently.
The company also plans to double its cold chain logistics handling capacity in
2 years, said a person in the know.
In December we did the highest in the history of the company in the
rail business says Gateway Distriparks Chairman
“In Gateway Rail,
we were doing very well before Covid and at Covid time, the volumes dropped
significantly. But from Q3 onwards, in December we did the highest in the
history of the company in the rail business. The trend is continuing in the
month of January and will continue to look up going forward,” Prem Kishan Dass
Gupta said recently.
The company spent
Rs 1,200 crore on the rail business in the last decade. Its business is aligned
to the western dedicated freight corridor (DFC) and will expand considerably as
additional phases of the DFC are completed.
Company operates a fleet of 31 trains and 335 road trailers at its
provides inter-modal logistics and operates its own rail-linked Inland
Container Depots (ICD) at Gurugram, Faridabad, Ludhiana and Viramgam. It also
operates a domestic terminal at Mumbai. The company operates a fleet of 31
trains and 335 road trailers at its terminals. Gateway Rail operates regular
container train services from these ICDs to the Nhava Sheva, Mundra and Pipavav
ports, transporting export import as well as domestic containers. All major
shipping lines operate from these terminals.
“When the DFC is
ready, we can have a turnaround of less than 24 hours,” Mr. Gupta added. “We
see a big jump of this heavyweight cargo. A lot of light weight cargo will also
shift from road to rail.”
Mr. Gupta said the
company was currently handling 250,000 TEUs at all its locations, but its
handling capacity with all its land bank is 1.5 million TEUs. The land bank and
the fact that all further trains will be leased will make the expansion less
capital intensive, he added.
The DFC link to
Pipavav and Mundra will be extended in a few months, while the one to Nava
Sheva it will take a year.
In container segment “volumes are less, and competition is intense”
Mr. Gupta said
there is a throughput increase in containers, but the company will not make any
further investments in the segment as “volumes are less, and competition is
GDL operates two
Container Freight Stations at Navi Mumbai and one each at Chennai,
Krishnapatnam, Kochi and Visakhapatanam with a total capacity of over 600,000
TEUs. These CFSs offer transportation & storage, general and bonded
warehousing, empty handling and several value-added services.
In the cold chain segment,
the company is planning to double capacity to 200,000 pallets in 2 years, said
a person close to the know. Its subsidiary Snowman Logistics is in the process
of raising close to Rs 250 crore via a QIP.