Gateway Distriparks to set up CFS in Vishakapatnam
By Sajeev Nair | 29 Apr 2004
Mumbai: Expecting a rise in container movement from the southern sector the sub-continent, logistics major Gateway Distriparks Ltd (GDL) is planning to set up a Container Freight Station (CFS) in Vishakapatnam, which is proposed to be developed in multiple phases, and has leased around 20 acres of land from Vishakapatnam Port Trust for the proposed CFS.
Under the first phase of development, GDL is planning to develop around 40,000 square feet of land, with an investment of around Rs 10 crore, which is expected to be completed by February 2005.
"An increase in movement of container traffic to the east coast of the sub-continent is expected in the next couple of years, and we are planning to be the early birds to cash in on this opportunity,“ says GDL chairman Gopinath Pillai.
This would also help in catering to the needs of the shipping and logistics industry, according to the chairman.
GDL, an Indo-Singaporean joint venture firm, would also maintain a 1.5-lakh square feet of open area for bay yard, that is for parking of containers.
The company is tying-up with a Vishakapatnam-based company - East India Petroleum - which is expected to pump-in around 40 per cent of the equity, while the duo would float a new firm, Gateway East Pvt Ltd, for the construction of the CFS.
“The work has already been commenced,“ Pillai said, adding that the new company would also be involved with the development of office space and bay yard.
The funding for the first phase would be through internalaccruals.
Even though, the container traffic to eastern region was expected to register a 50 per cent rise, GDL was not "aiming for profits" and was interested only in establishing its presence.
It is also looking at expanding its presence to the southern parts of the country, and would be interested in establishing a presence in Chennai and Kochi, even as
Vallarpadam was also on the map, Pillai said.
The Singapore-based company was also interested in the Gulf regions and "is exploring the possibilities" of setting up operations in these parts of the world, he said.
GDL is promoted by three Singapore-based firms, Windmill International Pvt Ltd, Parmeswara Holdings Ltd and Thakral Corporation Ltd and an Indian firm Newsprint Trading & Sales Corporation of India.
The company had earlier occupied 14.2 hecatre of land at Dronagiri, with a handling capacity of 1.5 lakh TEUs per annum. The three-phased expansion project was completed at a cost of Rs 111 crore.