NEW DELHI : Mumbai-listed Gujarat Pipavav Port Ltd (GPPL), the entity that runs a port at Pipavav in Gujarat, will build warehouses inside and outside the port, either on its own or through partnerships, as it seeks to facilitate trade by tapping into the changing logistics model and boost business, Managing Director Jakob Friis Sorensen has said.
GPPL is 43.01% owned by A P M Terminals Management B V, the container port operating unit of Danish Transport and Logistics Giant A P Moller-Maersk.
Pipavav port is currently serviced by two container freight stations (CFS)- off-dock facilities located outside the port for clearing containerised cargo. In comparison, Mundra port, the flagship port of Adani Ports and Special Economic Zone Ltd (APSEZ) and located in the vicinity, has many CFS’s.
“What we are trying to do is, we have applied for developing a multi modal distripark to take advantage of truck and rail. We are also facilitating an ordinary commuter ferry service between Pipavav and Hazira, so that trucks can drive on board the ferry and sail over the Gulf of Khambhat. It now takes 24 hours to drive around to Hazira, and we will be able to shift them over in six hours. This will help us access Surat as well,” Sorensen said in Delhi.
The multi-modal distripark will enable a conventional cargo truck coming from Surat by the ferry into Pipavav to put the goods into a warehouse from where they can be stuffed into a container and shipped out.
“We are trying to do all of these for the ease of trade, but we need more warehousing space because there is a change in the (consumption) model. People will no longer go to the shopping mall to get their things; they will get them delivered to their doorstep. There is a huge change happening and more warehousing space is needed in India to cater to the change in logistics,” Sorensen said, noting that this will also solve the problem associated with pile-up of containers and the resultant evacuation issues as seen recently in the port of Los Angeles in the United States.
GPPL has built some warehouses for storing fertiliser cargo inside the port premises nd will built more such facilities.
It will partner with State-run Container Corporation of India Ltd (Concor) to construct more warehouses inside the port.
The multi-modal distripark is outside the port but adjacent to the port. “So, we have warehouses for different purposes in different locations,” Sorensen said.
While GPPL wants to develop some of the warehouses by itself, it also wants third parties to build some of it.
“But I have a problem here,” Sorensen remarked.
“The people whom I need to ask for building a warehouse, they are asking for a 20 year business plan. I can’t do that. I may take a year to develop this in-house. I want other people to come and do it for us. We are also talking to third parties who build warehouses and lease them. We are working with Contrans Logistic Pvt Ltd