Gateway to scoop CFS at JNPT

Port-based logistics company Gateway Distriparks is close to acquiring a container freight station (CFS) near Jawaharlal Nehru Port Trust in Navi Mumbai. The company is also exploring the option of acquiring a domestic cold chain company to support its refrigerated cargo business.

Sources said the acquisition of this private CFS is likely to be concluded by the month end while negotiations for the acquisition of the cold chain business are in advanced stages.

"After securing an in-principle approval for moving container trains in major routes of country from Railway board, the company is planning to acquire CFS facilities which will supplement the container train operations," industry sources said. Gateway Distriparks is also looking at acquiring similar CFS facilities in Tuticorin.

Neither confirming nor denying the deal Gateway Distriparks CEO Kapil Anand said "the company is open to acquiring suitable facilities that will add value to operations". Sources confirmed that the company is scouting for bonded refrigerated space as the companies are handling plenty of such imported cargo.

"Gateway also has plans to handle refrigerated export cargo in near future. The acquisition will help it in offering complete supply chain solutions with the help of cold storage space and company's existing CFS and warehouses," analysts said.

Meanwhile, Gateway Distriparks is all set to flag off its first container train in the first week of April.

"With the existing agreement with Container Corporation of India (CCI) for rail connectivity, Gateway Distriparks will commence container train operations to the west-coast ports including Pipavav, Mundhra and JN Port," a senior company executive said.

He said the company is in comfortable position for proposed acquisitions, if realised. Gateway Distriparks had recently raised $84.96 million through the issue of 16.66 million Global Depository Receipts (GDRs).

The company currently operates CFS at Navi Mumbai, New Manali, Chennai, Visakhapatnam and an Interland Container Depot (ICD) at Garhi Harsaru near Gurgaon. It is also developing a greenfield facility in Kochi with 20,000 twenty-foot equivalent units (TEUs) handling capacity.

Gateway Distriparks handles average 180,000 TEUs per annum at JN Port alone. The company is likely to handle 220,000 TEUs in this fiscal.