The Hindu Business Line : FACT, Central Warehousing in pact for container freight station

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 fertiliser company here.

The FACT management and Central Warehousing Corporation have exchanged an MoU here on Saturday in the presence of the Union Chemicals and Fertilisers Minister, Mr Ram Vilas Paswan, to form a joint venture to set up a container freight station (CFS) facility at Udyogamandal. The project will require about 50 acres of land and an investment of around Rs 100 crore.

The project will offer a return of 20-25 per cent 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 utilise its land resources. Since the proposed link road from NH-47 to the International Container Transhipment Terminal at Vallarpadam is passing through FACT township at Udyogamandal, the land on the side of the link road is ideal for establishing a CFS and related SEZ.

Others interested

Container Corporation of India Ltd (Concor) has also expressed interest in setting up a CFS facility on FACT’s land. Concor is planning for about 20-30 acres of land for their proposed CFS 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 Rs 50 crore.

Similarly, MMTC Ltd has indicated interest in the development of a free trade warehousing zone at Kochi. MMTC is, at present, developing such zones in Greater Noida, Kandla and Haldia and are also interested in Kochi . Representatives of MMTC had preliminary discussions and hinted that they will be looking for about 100 acres at Udyogamandal for the proposed project.

Land assessment

To make an assessment of the land assets of the company and its effective use, FACT is proposing to engage IL&FS, a consultant for infrastructure, leasing and financial services. The consultant will examine further profitable business opportunities for FACT by utilising the available land at Kochi division and other places owned by the company.

More Stories on : Alliances & Joint Ventures | Shipping | Fertilisers

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FACT, Central Warehousing in pact for container freight station