Gateway Distriparks to invest Rs 500 cr in rail logistics

Port-based logistics provider Gateway Distriparks is planning to invest Rs 500 crore in container rail logistics infrastructure in three years. The company will initially invest Rs 150 crore in acquiring rolling stock including axles, wheels and wagons.

"We are expecting a final go-ahead from the Indian Railways to run container trains on routes such as Gurgaon-Pipavav and Gurgaon-Mundra. We will be initially running trains with Container Corporation of India (Concor)," said Capt C S Verma, chief executive officer, Gateway.

Verma said the company is looking at running three trains a week on key routes in Gujarat. It is also looking at profitable and busy routes including Delhi-Nhava Sheva.

Asked about the time frame for flagging off the first train, Verma said the final approval from the Indian Railways is expected soon and the company would be able to run container train along with Concor by early next month.

Gateway Distriparks is currently operating container freight stations (CFS) at Navi Mumbai, New Manali, Chennai and Visakhapatnam.

It also operates an inland container depot (ICD) at Garhi Harsaru and had signed an agreement with Concor to work jointly for providing ICD and rail connectivity to various ports.

On inorganic expansion plans, Verma said though the company has plans to grow via acquisitions, it is currently looking at growing organically.

"Gateway Distriparks is keeping its option open towards inorganic growth too. When it comes to acquisition, we are looking at several CFS facilities in places such as Kochi and Navi Mumbai. We are looking at opportunities for cold chain storage facilities," Verma said.

The company is talking to various parties for acquiring land to construct CFS at Nhava Sheva near Jawaharlal Nehru Port Trust (JNPT).

Verma said the company plans to become an end-to-end logistics solution company in the next five years which offers all transport solutions under one roof.