Gateway Distriparks Plans Rs 500 Crore Investment By FY25 To Fuel Growth
Gateway is looking to add a total of five ICDs by FY25, company's chairman and Managing Director Prem Kishan Dass Gupta has said.
Integrated inter-modal logistics operator Gateway Distriparks Ltd. has plans to invest at least Rs 500 crore by the fiscal year 2025 to fuel its growth plans, including expansion of rail vertical, among others.
With a greenfield inland container depot coming up at Jaipur and the acquisition of an ICD terminal at Kashipur, which is expected to be completed next months, GDL is looking to add a total of five ICDs by FY25, company's chairman and Managing Director Prem Kishan Dass Gupta has said.
GDL has a network of ICDs and five container freight stations pan-India, operating a fleet of 31 trainsets and over 500 trailers.
Of the total revenue of Rs 361.91 crore achieved from the rail and CFS business, rail vertical revenue accounted for almost 77% at Rs 278.53 crore in the quarter ended Sept. 30, 2022.
"We will be investing at least Rs 500 crore from now and until FY25," Gupta told PTI.
The company already has announced Rs 165 crore investment in Kashipur ICD in addition to Rs 90 crore in the upcoming new ICD facility in Jaipur, he said and added that GDL has plans to set up at least two more ICDs, entailing an investment of Rs 150-180 crore, by fiscal year 2025.
The company is scouting for locations for two new facilities, which will come up in Uttar Pradesh and Rajasthan. Moreover, in addition to this, GDL will also look at central India as so far the company is concentrated in Gujarat and North, he said.
"Right now we are doing EXIM business but going forward we will be getting into domestic business knowing this north-south movement for domestic cargo and containers as well as auto carriers,” Gupta added.
“We are also looking to venture into automobile transportation big time and acquire new train rakes. These rakes are available both on leasing as well as outright purchase. We will see what is the best model. Then there will be expansion of the existing locations, which will require minimum capex. So all this capex put together will be a minimum Rs 500 crore,” he said.
Earlier this month, GDL had announced its plans to acquire Kashipur Infrastructure and Freight Terminal Pvt Ltd. with a capacity to handle 3,000 TEUs per month and three rail siding along with a 17,000 sq ft housing space.
Besides, it is also developing a rail-linked ICD near Jaipur in Rajasthan with two rail sidings and a designed annual capacity to handle 125,000 TEUS.
Noting that the long-distance rail transportation business from western ports to NCR, Punjab and UP, among others, is growing despite some spikes and curves owing to the Chinese Covid situation, he said, “but we see growth in our existing ICDs”.
The transit time will be faster between western ports and the northern region once the dedicated freight corridor route is completed and “it will be a win-win situation as we will get volumes and customers will get a cost-effective and efficient service,” according to Gupta.