Allcargo Logistics plans new inland hub in India

Allcargo Logistics plans new inland hub in India

Allcargo Logistics Ltd., looking to tap into rapidly growing logistics demand in India, on Tuesday unveiled a plan to construct a new “logistics park” at Jhajjar in the northern state of Haryana.

“The Jhajjar project is one-of-its-kind integrated logistics infrastructure setup, which will comprise rail-linked private freight terminal catering to rail cargo movements, free trade warehousing zone, domestic tariff area and other related activities,” the company said in a press announcement. “It will also have the facility to handle both inbound and outbound contract logistics services.”

The Mumbai-based company plans to offer end-to-end logistics solutions to its northern India customers through its new facility in Jhajjar, which is a major industrial and manufacturing location, according to the statement.

Allcargo said it is working with state authorities to acquire about 200 acres close to Indian Railways’ flagship “dedicated freight corridor” project for setting up its planned inland center. The company aims to open the new site in 2018.

“As a part of our business expansion plan and growth strategy, the setting up of a logistics park in Haryana will help us to target the growing container traffic in the northern parts of the country, which would be boosted by DFC connectivity,” the logistics provider said. “It will highlight our expertise to handle breakbulk cargo along with containerized cargo and operations related to contract logistics.”

Allcargo, which has a strong freight forwarding and contract logistics base in India, said the inland center at Jhajjar will also help shippers meet their cargo consolidation and distribution needs. “This activity will complement our CFS (container freight station) business.”

The new project is the latest step in a steady expansion of Allcargo’s warehousing and logistics activities. The company in November last year began work on its sixth CFS facility at the port of Kolkata with an investment of Rs. 35 crore ($5.2 million). The 16.5-acre Kolkata CFS project is scheduled for completion next year.

Allcargo’s other CFS sites are located at the ports of Jawaharlal Nehru Port (Nhava Sheva), Chennai and Mundra. In addition, the company operates rail-linked, inland container depots at Indore, Kheda, Pithampur and Dadri.

The group’s core freight forwarding activity is handled by its wholly owned non-vessel-operating common carrier arm Ecu Line.