ICD to increase rail quantities for Gateway Distriparks

The commencement of Inland Container Depot (ICD) at Faridabad comes at an excellent time for Gateway Distriparks as hold up in the economy has impacted its Container Freight Stations (CFS) business.

The company operates in three business segments – CFS, rail and cold chain. Over the previous 9 months, slowdown in the economy has resulted in flattish growth in port volumes. Subsequently, CFS operators have reported subdued earnings. CFS is a set up where export oriented cargo is loaded or unloaded into containers.

Gateway’s rail cargo business on the other hand, continues to remain strong on the back of new way additions. The ICD at Faridabad is likely to commence operations in 1st quarter of next fiscal year. This will add volumes to its rail business in prospect. In addition, the company is increasing its presence in the cold chain business. It plans to boost its pallet ability in the cold chain business by 40% by the end of this fiscal year.