Allcargo Logistics moves 76-mtr long super-sized cargo for L&T Hydrocarbon

 Allcargo Logistics today said it has managed one of the largest over-dimensional cargo (ODC) movements in India by moving a 76-metre long consignment from L&T Hazira in Gujarat to IOCL Paradip in Odisha.

The Projects & Equipment (P&E) division of Allcargo Logistics managed the entire multimodal ODC project cargo movement, said the company in its release.

The movement of nine super ODC comprising heavy equipments such as glycol field stripper, vacuum effect evaporator and MEG column was delivered from the manufacturing yard at Hazira to project location in IOCL Paradip.

The mission involved direct transportation of six packages from L&T factory to Adani Hazira Port by road, vessel voyage from Adani Hazira Port to Paradip Port (PICT) and land transportation from PICT to IOCL Refinery using shore road, said AllCargo.

The movement also involved transportation of three packages from L&T Jetty to Adani Hazira Port by vessel and from PICT to IOCL site by road.

Overcoming few operational challenges and maneuvering constraints, the team of project logistics professionals at Allcargo Logistics planned and executed the transportation with perfection and utmost safety banking on incisive knowledge and unparalleled multi-modal transport operations efficiency.

Allcargo also pressed into service its advanced equipment and operators to ensure smooth movement of the ODC.

While managing the ODC transportation, the Allcargo Logistics team adhered to all the required safety and precaution norms and complied with all guidelines. All those involved on-ground wore masks and used sanitisers and followed social distancing norms.

“There are always inherent challenges involved in the process of moving ODC. In this case, challenges multiplied due to size and shape. However, our P&E team rose to the occasion and demonstrated extraordinary commitment and proficiency to ensure safe and hassle-free multimodal movement, delivering superior customer satisfaction. Our specialised project movement service has set up a benchmark of its own leveraging incomparable expertise and commitment to excellence,” the release quoted Rahul Rai, business head of project & engineering division at Allcargo Logistics Limited as saying.

Ministry of education appoints Shashi Kiran Shetty as chairman of NITIE

 

Shashi Kiran Shetty, chairman of Allcargo Logistics and Gati, has been appointed by the Ministry of Education, Government of India, as the Chairman of the Society and Board of Governors (BoG) of the National Institute of Industrial Engineering (NITIE), one of India's premium and only institution offering post graduate courses in Industrial Engineering.

NITIE, located in a sprawling 63-acre campus at Powai, Mumbai, was established by the Government of India in 1963 with the assistance of United Nations Development Programme (UNDP) through the International Labour Organization (ILO) to create skilled professionals.

Shetty’s tenure with NITIE will start from 7th November 2020 for a period of four years.

Today, NITIE offers post graduate diplomas in various fields of management and industrial engineering, doctoral fellowship programs and also trains over 2000 professionals through its various week-long Management Development Programs (MDPs) and the Unit Based Programs (UBPs) in different areas of industrial engineering and management.

Adarsh Hegde takes over as MD of Allcargo Logistics firm Gati-KWE

 Allcargo Logistics today announced the appointment of Adarsh Hegde as the managing director of Gati-KWE, one of the key arms of the recently acquired Gati Ltd.

Gati-KWE is 70:30 joint venture between Gati Ltd and Kintetsu World Express (KWE) of Japan. Alongside, Hegde will continue to be the joint managing director of Allcargo Logistics.

“I see great potential in Gati-KWE’s expertise in the business as well as the team’s passion for delivering excellence,” the release quoted Adarsh Hegde, joint managing director at Allcargo Logistics, on his appointment.

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Last week, Mahendra Agarwal, founder and managing director at Hyderbad-based Gati Ltd resigned from the Boards of Gati, Gati-KWE and Gati-Kausar.

Shashi Kiran Shetty-owned Allcargo Logistics recently acquired controlling stake in Gati Ltd foraying into the express business via the latter.

Established in 1989, Gati is the pioneer in India’s express transportation segment and has been one of the largest in this industry.

Allcargo Logistics in talks to acquire stake in rival Gati: Report

Allcargo Logistics is in talks to buy a stake in smaller rival Gati, people with knowledge of the matter said, as India’s biggest cargo company attempts to boost its presence across Asia’s third-largest economy.

Allcargo is in discussions to acquire Gati, that’s 6 per cent owned by Goldman Sachs Group, at an equity valuation of about Rs 13 billion ($183 million), one of the people said, asking not to be identified as the talks are private. The purchase will trigger a mandatory offer to buy Gati’s outstanding shares, the people said.

India’s logistics and warehousing industry is attracting companies from Blackstone Group to Warburg Pincus as they seek to tap into a sector that Gati forecasts will be worth $217 billion by 2020. That’s buoyed by demand from e-commerce firms such as Amazon.com and Walmart’s India unit to provide last-mile connectivity into cities as well as remote hinterlands across one of the world’s largest landmass.

“For Allcargo, which was primarily into foreign trade business, buying stake in Gati is a clear de-risking initiative as the latter is more focused on domestic business,” Mathew Antony, managing partner at Mumbai-based advisory firm, Aditya Consulting. “This acquisition will help Allcargo offer total logistics solutions to e-commerce companies.”

The board of Allcargo is likely to consider the proposed acquisition in October, the people said. Gati has managed to secure approval for the sale from its Japanese partner Kintetsu Group in its flagship company, Gati-Kintetsu Express, they said.

Allcargo doesn’t comment on “market speculations,” an external spokesman for the company said, while Gati declined to comment.

Talks are still progressing and contours of the deal may change, one of the people said. Under Indian rules, a purchase of 25% stake in a company triggers an open offer to buy an additional 26% from public shareholders.

Allcargo’s biggest revenue generator is shipping and port-based logistics, while Gati moves goods across India and claims to service 99 per cent of the nation’s districts.

Allcargo is also building large warehouses in four Indian cities and reworking its existing storage facilities near ports to provide services to e-commerce companies, while Gati has already built a logistics infrastructure helping it to deliver over 6 million small cargo packages a month.The founders of Gati, led by Mahendra Kumar Agarwal own 14.4 per cent of the company, while overseas investors including Goldman Sachs and Kintetsu World Express, control 17.1 per cent, according to data on BSE’s websit

Allcargo plans to invest Rs 1,000 crore in logistics park development

Allcargo Logistics, part of the Avvashya group, has no plans to set up more container freight stations or inland container depots. The company said it would focus on developing logistics parks that is witnessing growing demand.

“Today, there are sufficient container freight stations and inland container depots, and we do not need to put up more. We are up to the brim in this segment. Logistics park is the future,” Prakash Tulsiani, an executive director and CEO, told Business Standard. “Lack of rail capacity is increasing road cargo activities and, hence, we need to have logistic parks for the first- and last-mile delivery,” he said.

In container freight stations segment, Allcargo operates in the major container ports at JNPT-Nhava Sheva, Chennai, Mundra and the recently-commissioned facility in Kolkata. With this, the company's container freight stations are present in ports that handle over 80 per cent of India’s containerisation. Its total segment capacity is 500,000 TEUs at present.

Allcargo is also developing multimodal logistics park in Jhajjar, Haryana. This facility is seeing a phase-wise implementation this year and will be India’s largest logistic park, housing a rail-linked private freight terminal catering to railway cargo movement, a free trade warehousing zone, and other related activities. It will also have the facility to handle in-bound and outbound contract logistics services. “Demand for logistics park is consumption driven and implementation of GST (goods and services tax) has only streamlined the logistics sector,” said Tulsiani. The company aims to invest Rs 1,000 crore over next 3-5 years towards logistics parks and if sees demand growing further would take the next leap for investment, informed Tulsiani without divulging details of fundraising for the investment.

Alongside, the company is also seeing its spending grow towards technology and hiring as it looks to expand. “There will definately be need for people as we open new facilities (logistics park) in new locations and there will be demand for people across board. However, I cannot give a hiring number,” he said. 

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As of March 2018, Allcargo’s net debtstood at Rs 474 crore, almost half of what was reported in FY14 when the company’s ROCE was the lowest in seven years at 9.8 per cent. In the fiscal gone by, the ROCE of the company has only inched up to 10.8 per cent, much lower than the highest seen in the period under review at 17.9 per cent in FY12. Meanwhile, the company’s top line has been witnessing decent growth.

“We did have trouble in projects and engineering solutions division and we were not needed since they (client companies) didn’t have any capex. Our utilisation in this segment halved from 75-80 per cent earlier and this hit our performance. Disruption in CFS segment via DPD (direct port delivery) was also another hit that we had to take,” said Tulsiani.

Allcargo provides consultancy and equipment services to engineering companies in the country.

DPD allows importers/consignees to take delivery of the containers directly from the port terminals and haul them to factories without taking them first to a CFS and from there to factories. An importer is thus assured clearance of cargo in less than 48 hours under DPD as against an average of seven days if routed through a CFS.