The Hindu Business Line : Sical Logistics entering freight forwarding

Chennai, Aug. 28 Sical Logistics will soon foray into freight forwarding and is open to acquiring a company in this sector, according to its Managing Director and Group CEO, Mr Sudhir Rangnekar.

Freight forwarding (arranging cargo movement between two destinations) is the only missing link in the group’s logistics offering, Mr Ragnekar said. The company currently outsources freight forwarding, and once this is covered the group will become an end-to-end logistics service provider, he told Business Line.

The Chennai-based company’s operations include ships (offshore supply vessels), terminal management, customs clearance, Custom House Agency, rail operations and inland container depots/container freight stations (CFS), he said.

Mr Rangnekarsaid that without disturbing bulk transportation, the company would also like to focus on more profitable businesses such as merchandising. For this, the company will strengthen its Inland Container Depots/ Container Freight Stations, he said.

At present, around 80 per cent of the company’s revenue comes from bulk transport of coal and iron ore. However, there will be a gradual change towards booming container trade, where the payment cycle is shorter.

Rail terminal by 2008

On the Multimodal International Hub Airport at Nagpur (MIHAN) rail terminal, Mr Rangnekar said an agreement will be signed between the partners in a couple of months. The Sical-led consortium of Maharasthra Airport Development Company and Gupta Coal will put up the rail terminal by the first quarter of 2008. The consortium has already signed a similar agreement for the MIHAN road terminal.

On railway operations, Mr Rangnekar said rakes have been ordered and the service should commence in eight months. To begin with, the service will be from Chennai to Nagpur and Delhi, and between Visakhapatnam and Delhi. Sical Logistics has a licence to run container trains, he said.

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