Gateway Distriparks Limited (GDL) has announced a significant development in its logistics operations, signing an exclusive 15-year agreement for container train operations at the Multi Modal Logistics Park (MMLP) in Ankleshwar, Gujarat. This strategic move is set to strengthen the company's presence in Western India and enhance its service offerings to customers.

Deal Highlights

• Duration: 15-year exclusive agreement
• Location: 120-acre MMLP at Ankleshwar, Gujarat
• Partner: Sawariya Group of Industries (Sawariya)
• Annual Capacity: 200,000 TEUs and 850,000 sq. ft. of warehousing space

Strategic Importance

The MMLP Ankleshwar is strategically positioned near Surat and is designed to handle both domestic and EXIM (Export-Import) containers, as well as bulk cargo. Its location and capabilities make it a crucial hub for serving key industrial zones in Gujarat, including Surat, Panoli GIDC, Ankleshwar GIDC, Bharuch, Jhagadia GIDC, Dahej, and Hazira.

Operational Details

• Domestic Operations: Commenced immediately
• EXIM Operations: Expected to start at the beginning of the next financial year
• Rail Connectivity: Direct connection to the Western Dedicated Freight Corridor
• Capacity Expansion: To be undertaken in phases based on business demand

Scope of Services

Gateway Distriparks will provide rail services, while Sawariya, with its two decades of experience in logistics, warehousing, and industrial construction, will manage terminal operations. GDL has secured exclusivity for all regions where it operates its own Inland Container Depots, including markets in Gurgaon, Faridabad, Ludhiana, Uttarakhand, and Ahmedabad.

Benefits for Customers

The new arrangement offers several advantages for both EXIM and domestic customers:

1. Option to use rail transportation instead of road
2. Greater efficiency in logistics
3. Lower carbon emissions
4. Potential cost savings
5. Faster transit times

Management's Perspective

Mr. Prem Kishan Dass Gupta, Chairman & Managing Director of GDL, commented on the partnership: "This partnership with Sawariya strengthens our presence in Western India and enhances our ability to serve customers through an integrated hub-and-spoke network. The asset-light model enables us to scale quickly without any capital investment in the terminal by focusing on rail operations and leveraging our network advantage."

Future Outlook

Gateway Distriparks aims to continue developing its own ICDs in the north-west corridor while exploring more opportunities to expand its network through strategic partnerships similar to this one. This approach aligns with the company's strategy to combine its multimodal expertise with infrastructure strengths of partners like Sawariya.

The deal marks a significant step in Gateway Distriparks' expansion strategy, potentially setting a new benchmark for collaborative models in the Indian logistics sector.

Gateway Distriparks Limited, a leading integrated logistics services provider, has reported a robust year-on-year improvement in its quarterly results for Q1 FY26. The company's performance was bolstered by the absence of Red Sea disruptions that had impacted the first quarter of the previous fiscal year.

Rail Business Performance

The company's rail business achieved an EBITDA of ₹9,100.00 per TEU, slightly down from previous quarters. This decrease was attributed to several factors:

• Higher empty container running
• Lower double stacking at 39.00%
• Increased trade imbalance due to lack of exports

Despite these challenges, Gateway Distriparks maintained its market share in key regions:

• 16.00-17.00% in the National Capital Region (NCR)
• 27.00% in Ludhiana
• 37.00% in Uttarakhand

CFS Business Improvement

The Container Freight Station (CFS) business showed improvement, with EBITDA reaching ₹1,500.00 per TEU.

Management Outlook

The management expressed optimism about future performance, expecting margins to recover to ₹9,500.00 per TEU in the coming quarters. This anticipated improvement is based on:

• Expected enhancement in double stacking operations
• Anticipated improvement in trade balance

Expansion Plans

Gateway Distriparks has outlined ambitious expansion plans:

• The company has earmarked ₹300.00 crores for two new terminals
• Plans are in place to add capacity in multiple locations
• The company is exploring asset-light models for some expansions

However, land acquisition challenges continue to delay some expansion plans, including the Jaipur ICD project.

Snowman Logistics Performance

Snowman Logistics, a subsidiary of Gateway Distriparks, reported positive developments:

• Added capacity in Calcutta, Krishnapatnam, and Kundli
• The trading and distribution segment showed 54.00% quarter-on-quarter growth

Future Outlook

Gateway Distriparks is targeting double-digit volume growth for the full year, despite the challenges faced in the first quarter. The company remains focused on strategic expansion and operational improvements to drive future growth.

The management's cautious optimism, coupled with targeted expansions and operational enhancements, positions Gateway Distriparks to potentially capitalize on the evolving logistics landscape in India.