Allcargo Global plans to set up logistics parks

MUMBAI: Allcargo Global Logistics will set up 10 logistics parks across the country with an investment of Rs 340 crore. The parks are planned for Mumbai, Hyderabad, Kolkata, Bangalore, Ahmedabad, Nagpur and Delhi.

The Allcargo board has approved fund-raising up to Rs 300 crore through issue of equity shares or equity-linked instruments or securities. Allcargo has bought 40-ft containers that can be used for transporting cars, and has begun trial runs for auto majors. These containers claim to have a zero-defect system and are designed to carry 4-5 cars by the road, rail and ocean. The same container can be used to carry other general purpose cargo, if there is no return load of cars. The company is planning to acquire 200 similar 40-ft containers from the UK-based Trans-Rak International.

According to market estimates, one among ten cars transported by roads suffers damages and delays with cost implications. Allcargo is providing multi-modal transport solutions, operating container freight stations (CFSs), handling project cargo apart from providing air freight and road transportation logistics services.

The board of Allcargo has approved a scheme of arrangement for acquisition of the projects and equipment division of TransIndia Freight Services. TransIndia is an unlisted company owned by the promoters of Allcargo, and contracts transportation of containers and project-related cargo and hiring of cranes, reach stackers and forklift trucks. TransIndia is also engaged in investments and car hire.

The board has approved a swap ratio of 518 fully paid-up equity shares of Allcargo for every 100 fully paid-up shares of TransIndia. Accordingly, the shareholders of TransIndia will be issued 21,03,080 fully paid-up equity shares of Rs 10 each as consideration.