The company now hopes to offer end-to-end transportation by combining the less than container load (LCL) business of Allcargo and Gati’s domestic express transportation capabilities.
“The exponential rise in cross-border and domestic e-commerce has opened up new markets for traditional express players such as Gati.
With Allcargo’s existing strength in the ocean transportation business and Gati’s expertise in land and air transportation, we are now in a unique position to offer our customers a suite of truly multimodal solutions,” said Shashi Kiran Shetty, Chairman, Allcargo Logistics Ltd.
We are moving from strength to strength, creating 'Limitless Possibilities'.
We at Allcargo, now bring you truly end-to-end multi-modal logistics solutions at a scale that otherwise doesn't exist in India at the moment!
Mahendra Agarwal, founder and CEO, Gati Ltd, said, “This alliance strengthens GATI with more management bandwidth, operational synergies, cross-selling opportunities, and financial strength.
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.
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.