Logistics boom

In a matter of few days after this blog reported
a boom in invetments in logistics FACT has signed
a deal with CFS for a Rs.100 cr warehousing facility.

FACT inks pact with Central Warehousing for CFS

The public sector FACT has reached an understanding with other public sector companies aimed at putting to effective and productive use of the assets of fertilizer company.

The FACT management and Central Warehousing Corporation have exchanged a MoU in the presence of Mr Ram Vilas Paswan union chemical & fertilizers minister to form a JV to set up a container freight station facility at Udyogamandal. The project will require about 50 acres of land and an investment of around INR 100 crore.

The project will offer a return of 20% to 25% and land for the project is proposed to be given on lease basis, with FACT retaining ownership. To increase the revenue generation, FACT proposes to diversify into profitable areas and utilize its land resources.

Container Corporation of India Limited has also expressed interest in setting up a container freight station facility on FACT’s land. CONCOR is planning for about 20 to 30 acres of land for their proposed container freight station operations at Kochi. It is also interested in establishing rail connectivity to Udyogamandal, for its joint venture, which will also be of benefit to FACT for movement of its raw material and finished projects. The project requires an investment of INR 50 crore. Full story

Vallarpadam's giant strides

And of course, the key reason for all this boom
being India's one and only transhipment giant
under construction at Vallarpadam, Kochi.
Ms.Simplex Infrastructures is executing the
construction contract, which will be completed
within 17 months - by Oct 2009. It will initially
handle 1 million TEU container traffic which
will be expanded in a matter of 3 years to above
3 million TEU. The scope of expansion is unlimited
even beyond figure.

DP World terminals in India report major growth in 2007

India continues to be one of the fastest growing markets for container traffic for DP World. In 2007, the Indian terminals operated by DP World grew between 18% and 22%, and increasing consolidated volumes to 19%.

Both DP World Chennai and DP World Nhava Sheva reported volumes in excess of 1 million TEUs in 2007. Nhava Sheva achieved the highest throughput by a container terminal in India as crane moves per hour and berth productivity both increased during the year.

DP World’s revenue from operations for the Asia Pacific and Indian subcontinent region for 2007 was USD 461 million as compared with USD 392 million for 2006, an increase of 18% YoY against a volume increase of 19% YoY.

CAPEX in the region was USD 94 million, reflecting investment in the port in Manila following the renewed concession agreement, and at Ho Chi Minh, the terminal under development.

In India, DP World runs 5 container terminals in Chennai, Nhava Sheva, Mundra, Kochi and Visakhapatnam. The new terminal at Vallarpadam, which will replace Kochi, will be the largest terminal in India. This terminal is expected to have a gross capacity of 1 million TEUs during the commencement of operations in 2009 and increase it to 3 million on completion. The Kulpi terminal is expected to start operations in 2009 with an initial capacity of 600,000 TEUs and increase it to 1.4 million TEUs on completion. Full story