The Hindu Business Line : MSTC to build warehouses along eastern ports

In an effort to set up a complete end-to-end business solution relating to imports, the public sector unit MSTC Ltd is planning to build a chain of warehouses along the ports located on the eastern coast.To start with, MSTC has identified Haldia and a dialogue has been initiated with the Haldia Development Authority (HDA) for a 15-acre plot.

According to Mr Malay Sengupta, Chairman and Managing Director of MSTC, the total cost of building the warehouse at Haldia would be Rs 7-8 crore, of which Rs 4-5 crore would be the cost of land.

"It would be an open air warehouse and would be used mostly for storing coal, scrap iron and iron ore," Mr Sengupta told reporters after addressing a seminar on long steel products organised by the Merchants Chamber of Commerce.

MSTC is trying to gain as much experience as possible by setting up and subsequently operating the proposed warehouse. At present, it mostly uses customers' warehouses with the Central Warehousing Corporation as the custodian.

End-to-end solutions

For end-to-end solutions, MSCT would join hands with a global shipping company for imports via Indian ports and then work out an arrangement with a local transporter for delivering it to the customer's doorstep.

MSTC has already appointed Hindustan Steelworks Construction Ltd, another Central public sector unit, for building the warehouse on a turnkey basis. After Haldia, MSCT would be eyeing the port towns of Paradip and Visakhapatnam.

In the current financial year (2005-06), MSCT expects to register a total business of Rs 7,500 crore.

In 2004-05, MSTC imported about Rs 2,000 crore worth of naphtha for Haldia Petrochemicals. In the current financial year, despite a sharp increase in global naphtha prices, MSTC has imported only Rs 1,500 crore worth of naphtha for the petrochem major.

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