Allcargo to invest US$101 million to enlarge logistics network in India

ALLCARGO Global Logistics (AGL), an Indian multimodal transport operator, plans to invest some Rs4 billion (US$101.5 million) in the next two years to develop logistics parks and expand its container freight stations and inland container depots network.

The company plans to build logistics parks at seven locations including Nagpur, Hyderabad, Pithampur, Bangalore, Mumbai, Ahmedabad and Delhi. Currently, AGL has container freight stations and inland country depots at Jawaharlal Nehru Port Trust (JNPT), Chennai and Mundra. It plans to develop warehousing at Goa to cater to the demand from the region - all of which is expected to be operational by 2009.

"The work at Hyderabad and Pithampur parks has begun and the parks are to be up and running in later half of 2008," project manager Ravi Jakhar told India's Equity Bulls financial news portal. The logistics parks, except for the one at Pithampur, will have rail facilities covering 30-100 acres.

"We will look at tie-up with a company already having a rail licence," said Mr Jakhar. "We may also look for joint venture with another operator too."

Other companies planning to develop logistics parks include Reliance Group at 32 locations, including all state capitals and industrial towns. State-owned Container Corporation of India also plans to develop a centre with Rajasthan Industries Department in Kanakpura near to Jaipur.

Logistics contributes 13 per cent to India's GDP and is expected to grow at a 15 - 20 per cent over five years.