Sical Logistics Limited, India’s leading integrated multimodal logistics solutions provider, initiated the operations of its second container train from the Melpakkam rail terminal near Arakkonam, 70 km from Chennai, to a private rail siding at Patli, near Gurgaon. Sical Multimodal And Rail Transport (SMART) Ltd, a 100% subsidiary of Sical, obtained the category 1 pan-India license in January ‘07 to run container trains for exim and domestic cargo and recently took delivery of a second rake from Titagarh Wagons in July ’08.

The company entered into a strategic tie-up at Melpakkam with Sattva Conware Pvt Ltd, a leading CFS player from the Chennai region in February ‘08. Under the partnership, Sical will have access to Sattva’s infrastructural facilities at Melpakkam.

Sical Multimodal is the first private player in India to run container trains on the Chennai-Delhi sector. Its second container train is carrying general cargo like cars, steel pipes, malt, raw rubber and industrial chemicals amongst others.

Speaking on the occasion, Ashwin C Muthiah, Chairman Sical Logistics said, “We are pleased at the expansion of our container train operations to the North South corridor. Private rail transport offers an interesting alternative to road transport with the promise of improved service levels along with reasonable time and cost savings to the customer.”

“We are making strategic investments in developing terminals at Chennai, Bangalore, Panvel and Nagpur which are expected to be operational by FY 2011. We would have acquired in all 13 rakes by that time, which will allow us to commence full-fledged operations from 2011 onwards.” added Ashwin C Muthiah, Chairman Sical Logistics.

Sical’s network of ICDs/ CFSs across India will be in the form of a ‘hub-and-spoke’ model with the terminals at Nagpur as the ‘hub’ and key industrial locations across the country as the spokes. The company will develop the nodes, in a phased manner over the next five years. The project cost is estimated to be INR 862 crores with a debt equity ratio of 2:1.

Sical Multimodal’s rail operations, combined with Sical’s strong presence in bulk, inland and offshore logistics, enable the company to offer innovative, competitive and reliable end-to-end solutions to its customers across India. Sical’s first rake provides a complete multimodal logistics solution to M/s Hindustan Copper Ltd, transporting copper concentrates/copper cathodes to and from Ghatsila in Jharkhand and Khetri in Rajasthan. The company also provides last mile connectivity for the finished products of Hindustan Copper from their factory at Taloja, near Mumbai.

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About Sical

Sical Logistics Ltd is India’s leading provider of integrated solutions for multimodal bulk and containerized logistics and offshore logistics, annually handling nearly 22 million tonnes of bulk cargo and 500,000 TEUs of containerized cargo.

Sical provides services in the following segments:

• Bulk—stevedoring; port terminals; CHA and shipping agency; trucking; railroad; warehousing
• Container—container terminals; ICD; CFS
• Offshore—platform supply vessel; cutter suction dredger

Sical's delivery network includes an exclusive walk-in berth at Chennai for ships carrying bulk cargo; a container terminal at Tuticorin; 450,000 square feet of storage across over 100 warehouses; owned and regularly contracted fleet of nearly 2500 transport vehicles; container freight stations at 3 locations across India; Sical Torino, a deepwater capable platform supply vessel in North Sea, and Sical Portofino, a newly built cutter suction dredger.