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Amit Mitra

Mumbai Aug. 24

, GATEWAY Distriparks Ltd (GDL), a provider of port-related logistics services, is planning to expand its business canvas by foraying into port terminal operations, supply chain management and cold chain transportation.

The company, promoted by the Wind Mill group, the Thakral group and Parameshwara Holdings of Singapore and Prism International of India, with investors such as IDFC and Tamasek, at present operates four container freight stations (CFS) at JNPT, Vizag port and Gurgaon.

"We have engaged consultants to study the markets for supply chain management and cold chain transportation. We will foray into these segments at the right opportunity," Mr Kapil Anand, CEO of the company, told Business Line.

GDL is planning to foray into these markets either through strategic alliances with existing players or buying out smaller companies engaged in providing these services. For supply chain management, the company intends to offer a combination of 3PL (third-party logistics) and 4PL services. "As far as port terminal operations are concerned, we will be looking out for smaller terminals or minor ports," Mr Anand said.

The company is also in the process of expanding its CFS' capacity in the light of the growing container trade in the country. "We are aiming at having a share of 25 per cent of the CFS market within the next five years, for which we will be investing Rs 200 crore to Rs 250 crore in this period. Part of the investment will be from internal accruals, part from the IPO surplus that we have and the remaining through debt funding," Mr Anand said.

Having notched up a turnover of Rs 90 crore by handling 1,28,000 TEUs of container last fiscal, GDL is aiming at a turnover of Rs 150 crore and a throughput of 2,20,000 TEUs in the current fiscal.

The company is in the process of expanding the capacity of its CFS at JNPT from the present 1,80,000 TEUs to 2,10,000 TEUs and that of its Chennai CFS from 40,000 TEUs to 60,000 TEUs. The Vizag CFS, which began operations recently, has a capacity of 28,000 TEUs.

While the JNPT CFS expansion will be costing Rs 11 crore that of Chennai will be around Rs 5 crore. "We are also on the look out for buying some existing CFSs. We will be buying the CFS owned by Punjab Government at JNPT," Mr Anand said.

The company sees bright prospects for the CFS industry in the light of increased container trade in India, more private participation in port infrastructure and development of modern container handing terminals at JNPT, Mundra, Pipavav and Chennai. The container traffic handled by the two terminals at JNPT, including the P&O-operated Nhava Sheva International Container Terminal, increased from 1.5 million TEUs in 2001-02 to 2.1 million TEUs in 2004-05.

In the CFS import cargo segment at JNPT, which handles nearly 60 per cent of the total container throughput of all Indian ports, GDL had a share of 30.94 per cent, followed by Transindia and Maersk with 12.4 per cent and 11.8 per cent respectively.

"We see the maximum scope in our operations from the JNPT CFS, as after the port gets its third terminal in 2006, its container throughput will increase to 3.7 million TEUs. JNPT also plans to have its fourth terminal by 2007-08 with a capacity of three million TEUs," Mr Anand pointed out.

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