Integrated logistics solutions provider Allcargo Logistics Ltd. is scouting for land in Chennai to set up a warehousing-cum-logistics park, said a senior official.
“We are proposing to set up a logistics park with a container freight station (CFS) and a distribution centre,” said Avnash Iyer, vice president and regional head — south and east, CFS, Allcargo. “We need a land parcel of 25-30 acres and this would be in addition to our existing facility of 25 acres,” he added.
He said the deal would be finalised over the next six months and the facility would start functioning about six months thereafter. The total cost is pegged at ₹150 crore. The CFS at Chennai handles about 10% of the company’s import volume of the Chennai region. It specialises in handling hazardous and over-dimensional cargoes. The firm handles 10,000 twenty-foot equivalent units of containers per month. It addresses the logistics needs of EXIM, e-commerce firms, consolidators and coastal shipping in the fields of automobile, commodities, pulses, fast moving consumer goods, rubber, carbon black and soda ash.
Warehousing facility
Besides, Allcargo is setting up a warehouse with a third party common user facility in Malur, near Bengaluru, spread over 100 acres for which the civil works have begun. This site can handle 600 trucks or 12,000 tonnes per day.
“It will provide multiple levels of service for the Exim (exports and imports) sector, such as built-to-specification and build-and-utilise. We have the land bank and the facility should be up and running within a year,” Mr. Iyer said.
Asked about the funding for the expansion, he said most of it would be met through internal accruals.
