The inauguration of the Gati Shakti Cargo Terminal, flagging off of a bulk salt container train and laying of the foundation stone for the Inland Container Depot (ICD) of Kalyani Cast Tech Ltd (KCTL) at Shivlakha, Kutch, Gujarat, have been rescheduled to September 15 through videoconferencing by Railways Minister Ashwini Vaishnaw.
KCTL has also received approval from the Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs (CBIC) for setting up an ICD at Shivlakha for handling import and export cargo.
ICD to strengthen EXIM logistics
The proposed ICD forms part of KCTL’s broader integrated rail, logistics and manufacturing platform at Shivlakha. The platform comprises an ICD, Gati Shakti Cargo Terminal, wagon manufacturing and container manufacturing facilities.
The ICD is expected to strengthen KCTL’s presence in the export-import (EXIM) logistics value chain. The facility will be developed in accordance with applicable Customs laws, regulations and CBIC guidelines and will remain subject to requisite infrastructure, notifications and approvals.
Rail connectivity links factory to market
KMT Engineering Pvt Ltd, a subsidiary of KCTL, has commissioned a Gati Shakti Cargo Terminal at Shivlakha Station in the Ahmedabad Division of Western Railway. The facility provides direct factory-linked rail connectivity for movement of KCTL’s own cargo and opportunities for third-party cargo aggregation.
KCTL has also established a container manufacturing facility with an initial capacity of approximately 10,000 TEUs a year, positioning the company to participate in India’s growing domestic container manufacturing and import-substitution opportunity.
Wagon facility nears operations
The company’s wagon manufacturing facility at Shivlakha is substantially ready and is expected to commence operations soon, subject to applicable regulatory and operational requirements. The facility has an estimated capacity of 2,400 wagons a year.
KCTL said recent Indian Railways policy relating to new wagon designs could provide an enabler for its innovative manufacturing plans and product development.
Factory-to-port ecosystem
KCTL believes the combination of manufacturing, rail connectivity, ICD and logistics, and port connectivity will create a differentiated factory-to-port integrated ecosystem.
The platform is expected to provide customers with integrated manufacturing and logistics solutions, while offering shareholders potential for diversified and scalable revenue streams. It could also support higher freight movement for Railways and improve port-hinterland connectivity and cargo aggregation.
Revenue target of ₹4,000-5,000 crore
The company believes the Shivlakha facility has the potential to develop into an integrated industrial and logistics hub by creating operating synergies between its manufacturing and logistics businesses.
KCTL is transitioning from a predominantly manufacturing-led business towards a diversified rail, manufacturing and logistics platform.
The company remains committed to its long-term ambition of achieving revenue of approximately ₹4,000-5,000 crore in the coming years, subject to market demand, execution, capacity utilisation, regulatory approvals, government policies and other relevant factors.