Gateway, Welspun eye Punjab Conware deal

Port-based logistics major Gateway Distriparks, Apollo Tyres' logistics arm, Adani Enterprises and Welspun are in the race for Punjab State Container & Warehousing Corporation (Punjab Conware), a container freight station (CFS) owned by the Punjab government in Navi Mumbai near Jawaharlal Nehru Port Trust (JNPT).

Following the failure of complete disinvestment, the Punjab government has invited tenders for the operations and management (O&M) of Punjab Conware for 15 years.

Ernst & Young is advising the state government for the O&M deal.

While Gateway Distriparks and Welspun are bidding on a stand-alone basis, Apollo Tyres subsidiary Apollo International has tied up with logistics company Seaports. Adani Enterprises has tied up with another transport company Roadwings.

Punjab Conware, built at a cost of Rs 90 crore in 1999, is a 27.5 acre facility situated near JNPT with a handling capacity of 1,50,000 twenty foot equivalent units (TEUs).

Senior executives of Gateway Distriparks and Apollo International have confirmed the development. Punjab Conware gives a logistical advantage to operators who use JNPT, which handles 58 per cent of country's container traffic.

"Greenfield CFS is getting dearer for port-based logistics players, as Reliance Industries is planning a special economic zone in that area. Punjab Conware will be an added advantage at any cost. However, operators who are taking over the facility will have to shell out more money for restructuring, as most of the assets are dilapidated," sources said.

Earlier, the Punjab government had decided to sell to a strategic investor its entire 100 per cent equity stake in Conware and had appointed Delhi-based R R Financial Consultants as the global adviser.

This had attracted eleven players, including Forbes Gokak and ABG Heavy Industries, for the complete buyout of Punjab Conware.