Allcargo to set up logistics biz in the Gulf

MUMBAI: Logistics player Allcargo will venture into the Gulf market, estimated at $100 billion, and tap existing clients for business there.

“We are getting into the Gulf market in this financial year. We will build warehouses and equipment business in the Gulf,” Allcargo chairman and MD Shashi Kiran Shetty said.

“The Gulf market is witnessing a boom, thanks to the high oil prices. UAE, Doha, Oman and Saudi Arabia are witnessing infrastructure development. So, we see a huge potential.”

Allcargo already has a warehouse in Dubai and has good idea about the market conditions, Shetty said.

Meanwhile, in view of the high growth rate in India, Allcargo plans to set up a division for third party logistics services in the country.

A third party logistics player provides outsourced logistics services, and specialises in integrated warehousing and transportation.

“The third party logistics business would be a bigger division in the company because of its high growth rate in the Indian market,” Shetty said, adding, big companies want to leave the logistics part to a third player.

Allcargo also plans to diversify into port projects and shipbuilding yards. It has bid for the fourth container terminal project in Jawaharlal Nehru Port, Shetty said.

It will buy 30 new cranes for Rs 150 crore, taking its total to 100.

Last year, Allcargo announced the setting up of four inland container depots in Nagpur, Hyderabad, Bangalore and Goa at an investment of Rs 250 crore.

At present, it has three container freight stations at JNPT, Chennai and Mundra. It is setting up two more, at Pithampur near Indore and Dadri near Delhi.