The Hindu Business Line : Adani Group to invest Rs 1,260 cr in container trains, rail-linked ICDs

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Adani Group to invest Rs 1,260 cr in container trains, rail-linked ICDs

Container depots planned at 10 places across the country

Virendra Pandit

Ahmedabad, Aug. 28 The Adani Group would invest nearly Rs 1,260 crore to operate container trains, for which it has obtained a licence from the Railways, and establish rail-linked inland container depots (ICDs) at 10 places across the country for domestic and international trade.

While the group company Inland Conware Private Ltd (ICPL) would invest nearly Rs 938 crore in ICDs, Adani Logistics Ltd (ALL) would invest Rs 322 crore in container trains, company sources told Business Line here .

Logistics hub

ICPL proposes to develop ICDs as logistic hubs and provide synergy with the container terminals at Mundra Port, and the proposed container train operations. Initially, the ICDs would be set up at Patli, Palwal, in the National Capital Region (NCR), Chawapail, Kila Raipur, Ludhiana, and Kishangarh, Rajasthan. It is in the process of acquiring land in these areas. The next phase would involve development of additional ICDs in important cargo centers such as Ahmedabad, Mumbai, Kolkata, Chennai, Bangalore, Coimbatore and Nagpur.

It has identified the locations in Mumbai, Bangalore and Coimbatore. Each ICD will have three sections: a non-bonded rail-side area, a bonded area housing warehouses and open stuffing and de-stuffing areas and a non-bonded area having warehouses for providing value-added activities. Transportation and logistic facilities for both export and import and domestic cargo, equipped with modern technological facilities, would be provided. The project is expected to be fully operational by March 2009, the sources said.

ALL would operate container trains on category-I routes, i.e. from JNPT/Mumbai Port to locations in the NCR and beyond. ALL had also entered into a concession agreement in January last with the Railways for 20 years, with an non-exclusive right to operate its container trains and determine and collect fees from its customers.

It proposes to acquire 20 rakes initially and has already placed orders for importing 3,600 wheel/axle sets which would then be sent to wagon fabrication of the rakes.

ALL would also enter into an MoU with the ports for the acceptance of its container trains. ALL is likely to receive the rakes in 2008.

SEZ infrastructure

Mundra Port and SEZ Ltd (MPSEZL), part of the Rs 20,000-crore Adani Group, has filed papers with the Securities and Exchange Board of India to raise Rs 1,910 crore to develop its SEZ at Mundra Port and surrounding areas of over 2,406.8 hectares.

The company is raising funds for construction and development of basic infrastructure and allied facilities in the proposed SEZ, construction and development of a south basin terminal for coal and other cargos at Mundra Port, contribution towards investment in Adani Petronet (Dahej) Port Private Ltd, investment in ALL and in ICPL.

According to the sources, the Group is also in talks with the French major CMA CGM, the world’s third largest shipping and container company, which has evinced interest to take 26 per cent stake in a joint venture with ALL.

However, when asked, the Adani Group declined to comment. The Adani Group has built an inland railway container terminal at Mundra SEZ which is 64 km long and is one of the largest in the private sector. The Mundra Port also has an airport.

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