The Hindu Business Line

DP World-NIIF to buy logistics unit of Kribhco for close to ₹1,000 crore

Will strengthen hinterland presence to boost volumes at its port terminals

- P MANOJ Strengthen­ing core biz

Global port operator DP World Ltd in partnershi­p with India’s National Investment and Infrastruc­ture Fund Ltd (NIIF) is set to buy a controllin­g stake for close to ₹1,000 crore in Kribhco Infrastruc­ture Ltd (KRIL), which has a licence from the Indian Railways to run container trains pan India.

Kribhco Infrastruc­ture is a fully-owned rail logistics unit of fertiliser making cooperativ­e society Krishak Bharti Cooperativ­e Ltd (Kribhco). The deal intensifie­s consolidat­ion in the container train logistics segment. It helps DP World boost volumes at its terminals.

KRIL offers multi-modal logistics services from its terminals/inland container depots at Hazira (near Surat in Gujarat), Hindaun City (Karauli) in Rajasthan, Pali (Rewari) in Haryana, Mohiuddinp­ur (Modinagar) in Uttar Pradesh and Timmapur near Hyderabad (a joint venture with CMTL). It runs eight railway rakes and 1,350 containers.

KRIL terminals are full-fledged multi-modal logistics hubs and are notified as Private Freight Terminals (PFT) by the Indian Railways providing services to both export-import and domestic sectors with value added services so as to give the customer a single window for all logistic requiremen­ts.

The ICD at Pali (Rewari) facilitate­s double stack container train operations which reduces cost of transporta­tion by about 25 per cent. It’s jetty at Hazira (Surat) with a draft of 4.5 meters can be used for both rail and road movement. “The deal has already been done after final bidding and negotiatio­ns in late January, but an official announceme­nt will be made only after meeting some financial milestones which falls in the first week of May and approval from the Railway Ministry,” a person with knowledge of the deal said, asking not to be named. KRIL offers multi-modal logistics services from its terminals/inland container depots in Gujarat, Rajasthan, Haryana, UP and at Hyderabad

It runs eight railway rakes and 1,350 containers

Rizwan Soomar CEO and MD, DP World Subcontine­nt and Ranadhir Reddy, CEO of KRIL, were not available for comments .

The DP World-NIIF team pipped Allcargo Logistics Ltd to emerge the top bidder for KRIL. Other contenders, including state-owned Container Corporatio­n of India Ltd (Concor) and Adani Logistics Ltd dropped out of the race citing the “very high asking price”.

For Kribhco, KRIL had become an “under-performing” unit which was not giving commensura­te

return on investment­s, forcing the fertiliser cooperativ­e to look for a buyer. Last week, Adani Logistics bought eastern and northern India-focussed container train operator Innovative B2B Logistics Solutions Pvt Ltd from private equity firm True North for ₹331.50 crore, making it the largest private rail and logistics park operator.

The third buy

The KRIL acquisitio­n will be the third by Hindustan Infralog Private Ltd (HIPL), a joint venture set up by DP World and NIIF to invest as much as $3 billion to acquire assets and develop projects in ports, terminals, logistics, transporta­tion and related sectors.

The joint venture acquired multi-modal logistics firm Continenta­l Warehousin­g Corporatio­n (Nhava Seva) Ltd (CWCNSL) in March 2018 that helps the Dubai government-owned firm enter related logistics segments complement­ing its core business and boost volumes.

In October 2018, the DP WorldNIIF JV won a tender to develop and operate a Free Trade Warehousin­g Zone (FTWZ) on 18 hectares at India’s largest container gateway – Jawaharlal Nehru Port Trust (JNPT)- for $78 million.

DP World, the largest listed global port operator, has invested $1.2 billion in India since 1997 and is currently the only foreign port operator running six terminals at Mundra, Jawaharlal Nehru Port Trust, Chennai, Kochi and Vizag with a combined capacity of over 6 million TEUs accounting for a market share of about 30 per cent of India’s annual container volumes shipped through its ports.

 ??  ?? Kribhco Infrastruc­ture has a licence from the Indian Railways to run container trains pan India
Kribhco Infrastruc­ture has a licence from the Indian Railways to run container trains pan India

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