Allcargo to expand Nhava Sheva port to double capacity

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Allcargo to expand Nhava Sheva port to double capacity

In an interview to CNBC-TV18, SK Shetty, chairman and managing director, Allcargo Global Logistics said, "We are increasing our capacity of the container freight station by almost 100%."

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Allcargo Global Logistics is looking to expand its Nhava Sheva port to double capacity. The current capacity of the port stands at 1.50lk containers.

In an interview to CNBC-TV18, SK Shetty, chairman and managing director, Allcargo Global Logistics said, "We are increasing capacity of the container freight station by almost 100%."

The company would be funding this expansion through internal accruals. "We have also lined up external credit from the Indian banks for this expansion of Nhava Sheva," he added.

Below is the edited transcript of Shetty's interview with CNBC-TV18. Also watch the accompanying video.

Q: Could you walk us through your expansion plans and the kind of investment in revenues you will accrue on the back of that?

A: The expansion is basically two fold, it is in addition to the normal growth that we have experienced in our different verticals. Talking about our expansion in Nhava Sheva, we are increasing our capacity of the container freight station by almost 100%. We initially had plans to expand it close to about 200% because we have a large chunk of land about 45 acres.

But due to the current scenario and global concerns, we have scaled it down to expand it to about 100%. In addition to that, we are also investing in the costal shipping business and part of the assets which might also gets used into the offshore industry. That is the area where we are cautiously expanding as we see some promise in that trade at the moment.

Q: How are you looking to fund this expansion?

A: Most of the funds would be through internal accruals. We have also lined up external credit from the Indian banks for this expansion of Nhava Sheva. As far as the shipping acquisition is concerned, we have got it funded through foreign banks and foreign debt.