Adani Logistics to buy inland container depot Tumb for Rs 835 crore

Adani Logistics, a wholly owned subsidiary of Adani Ports and Special Economic Zone (APSEZ), said on Tuesday that it agreed to acquire inland container depot (ICD) Tumb from Navkar Corporation for ?835 crore.

Tumb is one of the largest inland container depots in India, with a capacity of half a million TEUs (twenty-foot equivalent units). The ICD is strategically located between the Hazira and Nhava Sheva ports along the west coast.

The depot's positioning in the middle of one of the busiest industrial zones and access to a dedicated freight corridor allow it to meaningfully serve a vast hinterland, APSEZ chief executive Karan Adani said.


APSEZ's shares closed 4.61% higher at ?824.5 Tuesday on the BSE, where the benchmark Sensex rose 0.64%.

The deal is expected to close this quarter.

Adani Logistics has acquired the ICD in line with its strategy to build an integrated transport utility and pan-India logistics business.

The associated 129 acres of land with the ICD will help expand capacity in the near future. Tumb ICD has a private freight terminal with four rail handling lines connected with the western dedicated freight corridor (DFC) and has custom notified land and bonded warehouse facilities, the company said.

"In addition to cargo moving by rail being 5X greener than that moving by road, another prime benefit of the access to the DFC is the savings in average transit time 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," said Adani.

Adani Ports & Special Economic Zone has half a dozen ports and terminals along the west coast (Mundra, Dahej, Tuna and Hazira in Gujarat, Mormugao in Goa and Dighi in Maharashtra) and another six on the east coast (Dhamra in Odisha, Gangavaram, Visakhapatnam and Krishnapatnam in Andhra Pradesh, and Kattupalli and Ennore in Tamil Nadu).

It is also developing two trans-shipment ports at Vizhinjam, Kerala and Colombo, Sri Lanka.