Gateway Distriparks Ltd has inked a significant 15-year agreement with Sawariya Group of Industries, marking a strategic move to establish a Multi Modal Logistics Park in Ankleshwar, Gujarat. This partnership is set to bolster Gateway Distriparks' presence in the region and capitalize on the growing demand for efficient logistics solutions.

Ambitious Growth Projections

The company has set ambitious targets for its domestic container movement:

• Initial volume: 1,000-1,500 TEUs per month
• Two-year target: 4,000 TEUs per month

This projected four-fold increase in domestic cargo volumes underscores the company's confidence in the region's potential and its operational capabilities.

Phased Implementation

The rollout of services at the new logistics park will occur in stages:

1. Immediate commencement of domestic operations
2. EXIM (Export-Import) and ICD (Inland Container Depot) services scheduled to begin by April 2026

Strategic Advantage

Gateway Distriparks is poised to benefit from the current market dynamics in Ankleshwar:

• Only one other ICD in the region, operating at full capacity
• Opportunity to shift cargo from road to rail transport to JNPT (Jawaharlal Nehru Port Trust)

EXIM Volume Projections

The company has set ambitious targets for its EXIM operations:

• Initial projection: 5,000 TEUs per month
• Long-term potential: Scaling up to 10,000 TEUs per month

Asset-Light Business Model

Gateway Distriparks has structured this venture to optimize financial efficiency:

• Zero upfront investment from Gateway Distriparks
• Utilization of leased trains and containers
• Revenue model based on EBITDA-sharing

Financial Expectations

While the company anticipates positive financial outcomes, it also acknowledges potential challenges:

• Expected EBITDA: Approximately ₹3,000.00 per TEU
• Margin impact: Shorter lead distances compared to northern operations may affect profitability

This strategic move by Gateway Distriparks demonstrates the company's commitment to expanding its logistics network and capitalizing on the growing demand for efficient cargo movement in Gujarat. The phased approach to implementing services, coupled with the asset-light model, suggests a calculated strategy to minimize risks while maximizing growth potential in the competitive logistics sector.

Gateway Distriparks Limited (GDL) has made a significant move in expanding its logistics network by signing a 15-year exclusive agreement to operate container trains for the Multi Modal Logistics Park (MMLP) in Ankleshwar, Gujarat. This strategic partnership with Sawariya Group of Industries marks a notable expansion in GDL's operations and service offerings.

Strategic Location and Capacity

The 120-acre MMLP, developed by Sawariya Group, is strategically positioned near Surat, a major industrial hub in Gujarat. The facility boasts an impressive planned annual capacity of 200,000 TEUs (Twenty-foot Equivalent Units) and 850,000 sq. ft. of warehousing space. Its location and capacity make it a crucial asset for serving key industrial zones including Surat, Panoli GIDC, Ankleshwar GIDC, Bharuch, Jhagadia GIDC, Dahej, and Hazira.

Comprehensive Logistics Solutions

The MMLP is designed to handle a wide range of logistics needs:

• Domestic containers
• EXIM (Export-Import) containers
• Bulk cargo
• Double stack train handling capability
• Direct connection to the Western Dedicated Freight Corridor

Operational Details

Under this agreement, GDL will provide rail services while Sawariya will manage terminal operations. This collaboration leverages GDL's multimodal expertise and Sawariya's infrastructure strength. Key operational aspects include:

• Immediate commencement of domestic operations
• Exclusivity for GDL in regions where it operates its own Inland Container Depots (ICDs)
• First right of refusal for new markets
• Exclusive container train operations for all EXIM and DPD (Direct Port Delivery) volumes

The ICD portion of the MMLP, focusing on EXIM volumes, is currently under construction and is expected to be operational by the beginning of the next financial year.

Benefits and Strategic Implications

This partnership offers several advantages:

1. Expanded Network: Strengthens GDL's presence in Western India
2. Asset-Light Model: Allows GDL to scale operations without capital investment in terminal infrastructure
3. Efficiency and Sustainability: Enables customers to shift from road to rail transportation, offering greater efficiency, lower carbon emissions, cost savings, and faster transit times
4. Strategic Growth: Aligns with GDL's strategy to develop its own ICDs in the north-west corridor while expanding through partnerships

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."

About Gateway Distriparks Limited

Gateway Distriparks Limited is an integrated inter-modal logistics service provider with a network of 10 owned container terminals and 1 rail-serviced container terminal across India. The company operates a fleet of 34 trainsets and over 560 trailers, offering comprehensive logistics solutions including general & bonded warehousing, rail & road transportation, and container handling services.

This strategic move by Gateway Distriparks Limited underscores the company's commitment to expanding its logistics network and enhancing its service offerings in key industrial regions of India.