Adani Logistics Ltd will acquire the Inland Container Depot (ICD) “Tumb” (Vapi) from Navkar Corporation Ltd.
The agreement has been signed for an enterprise value of Rs 835 Cr ($105.2 million).
The deal comprises acquisition of the operational ICD with capacity to handle 500,000 TEU.
Strategically located, Tumb serves both Hazira port & Nhava Sheva port along the Western Dedicated Freight Corridor (DFC) surrounded by industrial units of goods manufacturers.
The associated 129 acres of land provides an additional expansion path to increase capacity and cargo in near future as additional industrial corridors and logistic parks get added along the DFC routes.
The Tumb ICD has a private freight terminal with four rail handling lines connected with Western Dedicated Freight Corridor (DFC) and has custom notified land & bonded warehouse facilities.
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“Tumb is one of the largest ICDs in the country,” said Karan Adani, CEO and Whole Time Director of APSEZ.
“Given its strategic positioning in the middle of one of the busiest industrial zones and access to the dedicated freight corridor allows it to meaningfully serve the vast hinterland with access to two of the busiest ports on both sides, Hazira & Nhava Sheva.
“In addition to cargo moving by rail being five times greener than that moving by road, another prime benefit of the access to the DFC is the savings in average transit times that is expected to be 10 hours by rail versus 24 hours by road.
“This acquisition fits well with our transformation strategy towards becoming a transport utility as well as move us closer to our objective of providing economical door to door services to our customers.”
The deal is subject to customary regulatory and lender’s approvals and is expected to close in Q2 FY23.
Adani Logistics Ltd is a subsidiary of Adani Ports and Special Economic Zone Ltd (APSEZ).
Earlier this month APSEZ registered a 16 per cent decline in consolidated net profit for the first quarter of FY23, despite record EBITDA results and unchanged financial outlook.