Tanishk_Ojha Allcargo Terminals Limited, formerly the CFS-ICD division of Allcargo Logistics and its newly demerged entity, is well-geared to achieve new benchmarks of success and build on its long-standing legacy and experience of three decades. Infrastructure development, more efficient multimodal operations, streamlined processes and reduced bottlenecks, integration of technology, and favourable policies to attract investments from private players and public-private partnerships are few, of the many possibilities for the sector to explore. The proposed Dedicated Freight Corridors, and policies to transform the logistics modal mix by reducing the over-dependence on road freight and developing railways and waterways, create opportunities for the rail-linked terminals to grow, expand, and also contribute to reducing the logistics sector’s carbon emissions. With an asset-right business model, we are in an ideal position to not only grow in the seaport linked infrastructure space but also look at dry land terminals (Gati Shakti Multi-modal Cargo Terminals i.e., GCTs and multimodal logistics parks), and air terminals (own and operate airport freight stations). The CFS-ICD industry is valued at INR 54-57 billion as of fiscal 2022. The industry grew at 8% in fiscal 2022, in line with increase in container traffic. The CFS market was on a declining trend due to the government’s focus on DPD. As the share of direct port delivery (DPD) is increasing at major ports, post custom clearance the CFS facility is being used for storage and transportation as well as value-added services such as warehousing, labelling, and palletisation after de-stuffing the containers. We operate 7 CFS and ICD facilities in India, of which 4 are fully owned and 3 are through subsidiaries and Joint Ventures. The company has the privilege of being the market leader in JNPT and Mundra, and is among the top three CFSs in Kolkata and Chennai. Warehousing facilities of Allcargo Terminals Limited are spread over an area of 81,800 sq. mt., including bonded warehouses of 14,900 sq. mt. The company offers customized services that include but are not limited to, palletization, packing, labelling, stuffing, de-stuffing, storage, and examination of import and export bound cargo. Bonded and unbonded warehousing, first and last mile delivery, specialized cargo handling, and direct port delivery, also form part of the service portfolio.
Tanishk_Ojha Volumes of containers would provide for growth of this business - dont think it would grow hugely from here. AVOID.
