ITLN
Shipping

Allcargo may buy Sical Logistics' business units

December 04, 2019: Allcargo Logistics emerged as the front-runner to buy the container freight station (CFS), inland container depot (ICD) and rail logistics business of Sical Logistics from the Coffee Day Group, as reported by Business Line.

Allcargo Logistics emerged as the front-runner to buy the container freight station (CFS), inland container depot (ICD) and rail logistics business of Sical Logistics from the Coffee Day Group.
X
Allcargo Logistics emerged as the front-runner to buy the container freight station (CFS), inland container depot (ICD) and rail logistics business of Sical Logistics from the Coffee Day Group.

December 04, 2019: Allcargo Logistics emerged as the front-runner to buy the container freight station (CFS), inland container depot (ICD) and rail logistics business of Sical Logistics from the Coffee Day Group, as reported by Business Line.

Sical Multimodal and Rail Transport Ltd (SMART), the rail logistics wing of Sical, holds a Category I license from the Indian Railways, to ply container trains throughout the Indian Railways network in both the export-import and domestic segments.

SMART owns seven rakes of 45 wagons each and some 1,000 containers. It runs three container freight stations at Chennai, Tuticorin, and Visakhapatnam, and is in the process of building two rail-linked ICDs spread over 70 acres of land near Whitefield in Bengaluru and on 80 acres in Chennai.

The three CFSs’ run by Sical handle about 15,000 twenty-foot equivalent units (TEUs) a month on an average. In FY19, the three stations handled a combined 170,000 TEUs.

The Coffee Day Group had mandated ICICI Securities to sell Sical Logistics as part of a plan to cut the group’s debt. While the group initially preferred to sell Sical to a strategic partner, it has now decided to sell the assets separately on account of a lack of bidder interest to buy the company as a whole.

ICICI Securities, he said, has received bids from at least six top logistics firms, including Adani Logistics, Allcargo, and Pristine Logistics & InfraProjects.

Allcargo leads the race, as told by a source.

Allcargo currently runs CFS/ICDs at Nhava Sheva (Mumbai), Mundra (Gujarat), Pithampur (Indore), Dadri (Uttar Pradesh) Chennai and Kolkata, with a combined capacity of over 700,000 TEUs.

Next Story
Share it