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Our Bureau

Can be in the entire range of logistics, providing end-to-end solutions

Chennai , June 23

Sical Logistics Ltd is close to forming several joint ventures for different logistics projects it has or is in the process of bagging.

The joint ventures will operate independently, while Sical itself would continue to be engaged in its present operations of port handling, trucking, warehousing and offshore logistics.

This way the company will be in the entire range of logistics, providing end-to-end solutions. While a part of the solutions would be provided by the parent company, the rest would be by one or more of the joint ventures.

Right now, there are at least four joint ventures that have either been just formed or are in the process of being formed.

One is for implementing the Rs 60-crore rail terminal project at Nagpur, which is a part of a larger multi-modal international hub airport project of the Maharashtra Airport Development Company (MADC).

Rail terminal project

The rail terminal project is being put up by a joint venture company in which Sical holds 51 per cent. MADC holds 26 per cent and the rest is held by a company called Gupta Coal India. The rail terminal will be developed on build-operate-transfer basis on a 24-hectare plot on lease for 66 years. It will have a capacity to handle 150,000 TEUs a year. The facilities mainly consist of a container freight station, rail siding and handling infrastructure for export-import of cargo. The terminal will provide services such as container stuffing and de-stuffing, transportation, C&F and bonding, and container freight station for exim trade.

Container trains

Another joint venture is being formed for operating container trains. This will also be a three-way partnership, and the company will announce the names of the two partners shortly, its Vice-Chairman, Mr Ashwin Muthiah, told a press conference here today. The joint venture will own rakes and run them for transporting containers. Eight corridors have been identified — three of them will be taken up initially. One is the Tiruppur-Tuticorin stretch and the other, Chennai-Bangalore. The third will be a route touching Nagpur.

Another joint venture is for building and operating an iron-ore terminal at Ennore port, a project that the venture is yet to formally secure. L&T and the public sector MMTC are the partners, at present.

Yet another joint venture, with PSA, Singapore is bidding for Chennai container terminal-I I.

At a press conference here, Mr Muthiah said that special purpose vehicles would be formed for various projects as and when they are bagged.

The operations of these joint ventures will result in more business for the parent company.

Mr Muthiah said that the resultant business to Sical would be more profitable than the operations of the joint ventures themselves.

To raise fleet

Sical itself proposes to increase its owned fleet of 320 trucks by another 300 trucks in the current year "on increased business from major customers such as Caltex, Pepsi India and Shell India."

It also intends to buy 4-5 offshore supply vessels for servicing ONGC.

Each vessel costs between $12 million and $18 million (Rs 55 crore to Rs 80 crore).

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