Logistic hubs to dot freight corridors

Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) has decided to develop four multi-modal logistic hubs through public-private partnership (PPP) along the dedicated freight corridors, by 2018.

This move will facilitate smoother transport of goods in the region. Spread over 300-1,000 acres, the logistic parks will be set up in Navi Mumbai, Ahmedabad, Rewari (Haryana) and Kanpur.

The first such facility will come up in Rewari, where preliminary work has already begun.

“We have signed a memorandum of understanding with the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC). We will subsequently form a special purpose vehicle (SPV) with HSIIDC to regulate the concessionaire when the project is awarded,” DFCCIL Managing Director V K Kaul said.

HSIIDC will assist DFCCIL in acquiring land for the project, which will be set up on 1,000 acres. While DFCCIL will compensate for about 50 per cent of the expenses for land acquisition, the remaining expenses will be borne by HSIIDC.

The private operator in this project is expected to invest around Rs 900 crore in phases to develop the facilities at the Rewari logistic park. The total expenditure of setting up the park is still awaited.

Infrastructure Leasing & Financial Services Ltd, or IL&FS, has been appointed as consultant to finalise the location and the details of the infrastructure at the site, taking into account the traffic projections. IL&FS will also assist in preparation of bidding documents, the concession agreement and in selection of the concessionaire for the project.

P N Shukla, director (operations and business development), DFCCIL, said: “We want to commission the logistic park in Rewari along with the first phase of the freight corridor. Rewari is located at a strategic juncture, with arms connected to Delhi, Ludhiana, Tughlakabad and Dadri. We are working to develop the project quickly.”

DFCCIL has entered into a similar agreement with the Gujarat State Industrial and Infrastructure Development Corporation to construct another such facility in Ahmedabad. Feasibility studies are also on to set up logistic parks in Kanpur and Vapi (Maharashtra).

The multi-modal logistic parks would house rail sidings with sheds, large inland container depots, warehouses for storage, office buildings for logistic operators and assembly units for processing raw materials for export.

Such state-of-the-art integrated logistic facilities, with mechanised handling and intelligent inventory management at strategic locations, are seen as a medium to reduce the overall logistics cost in the supply chain for customers by leveraging the high-capacity rail connectivity of the dedicated freight corridors.