Sravan Shippings to invest Rs 135 cr

The company plans to set up container freight stations at the port cities of Kakinada and Krishnapatnam

City-based Sravan Shippings Private Limited will invest Rs 135 crore over the next two years for setting up container freight stations (CFS) at the port cities of Kakinada and Krishnapatnam. The company already operates a CFS at Visakhapatnam port.

"A container terminal at Krishnapatnam port began operations recently while Kakinada port has decided to set up one in the next two years. In view of this, we have taken the initiative to set up CFSs in these two port areas," G Sambasiva Rao, chairman and managing director, Sravan Shippings, told Business Standard.

The company will initially start the work on the terminal at Krishnapatnam port and the project will be ready by 2014 end. Meantime, it would take up the construction work at Kakinada port also and this is expected to be ready in the next two years, he said. The handling capacity at the Kakinada CFS would be 100,000 TEUs (twenty foot equivalent units) per year and 120,000 TEUs at Krishnapatnam.

While the Krishnapatnam project will involve an investment of Rs 75 crore, the Kakinada CFS will require Rs 60 crore, according to him. Of the total investment, the company will put in 25 per cent of the amount and for the remaining it will approach financial institutions.

Sravan shipping handled 70,000 TEUs at Vizag's CFS in the financial year 2012-13 as against 56,259 TEUs in the preceding year. In the current financial year, it is targeting to handle more than 75,000 TEUs at Vizag CFS, he said. Visakhapatnam port handled about 225,000 TEUs in the last financial year.