Published On : Thu, Jul 17th, 2014

Integrated Logistics Park comes-up at Borkhedi

To be inaugurated on July 18, 2014 by Divisional Railway Manager O P Singh and Joint Commissioner of Customs S B Akashi.

(From Left) Chairman of VLMS B Bhushan, Board Member Vikram Viswanath and Managing Director K Sathianathan.

(From Left) Chairman of VLMS B Bhushan, Board Member Vikram Viswanath and Managing Director K Sathianathan.


Nagpur News: With Nagpur located in the central Indian state of Maharashtra, is the natural choice for a logistics hub, especially since we host the Zero Mile. It is at the crossing point of roads and railways in all four directions and flight paths of numerous international airlines. A modern, well planned and well-connected multi-modal logistics hub close to Nagpur with a wide basket of services can benefit the industries and trade in the entire region around Nagpur.

This Integrated Logistic Park also makes sense since MIDC 5-Star Industrial Area is situated very close as is MIHAN and many other industrial units that may soon crop up soon.

Having a long term vision, Managing Director of Vikram Logistic and Maritime Services Pvt. Ltd K Sathianathan and Board Member of VLMS and Honorary Consul of Peru Vikram Viswanath and Chairman of VLMS B Bhushan addressed a press meet on July 17, 2014 to inform about the upcoming Integrated Logistic Park.

Sathianathan said that VLMS was founded in 1972 at Bengaluru and has been at the forefront of container and cargo handling and transportation in South India for over thirty years. With the acquisition of the Logistics Division of ETA Engineering Pvt. Ltd. in March 2013, VLMS also acquired rail transport capability with a category 1 license to run container trains on all routes of Indian Railways.

VLMS currently operates a fleet of 143 trailers and 29 Material Handling Equipment (including reach-stackers) for transportation and handling of containers/cargo.

He added that the company has a fleet of 11 container trains and provides multimodal logistics services on important Exim and Domestic routes across the country. In addition to the Borkhedi (Nagpur) terminal, VLMS is setting up a Container Freight Station and Free Trade Warehousing Zone at Chennai and rail linked Integrated Logistics Parks (ILPs) at Anekal (near Bengaluru) and Palwal in the National Capital Region. It also operates a road-linked Inland Container Depot (ICD) at Hassan in Karnataka.

Providing a large basket of services, the ILP at Borkhedi plans to have itsown infrastructure for:

  •           Rail linked Inland Container Depot
  •           Rail linked Domestic Container Terminal
  •           First Mile and Last Mile connectivity
  •           Automobile Logistics Park for automobiles
  •           Liquid Tank Farm for liquid cargo
  •           Private Freight Terminal
  •           Dedicated warehousing for transit and bonded cargo, domestic cargo and cargo managed under long term contracts

The first phase of the ILP at Borkhedi is being commissioned on July 18th, 2014. It will provide multi-modal logistics services for domestic containerized cargo. The Automobile Logistics Park and the Liquid Tank Farm are proposed to be commissioned in quick succession. The second phase should provide multimodal services for Exim cargo through the ICD within the next few months. A Private Freight Terminal (PFT) will be commissioned in a third phase. VLMS will also start providing dedicated warehousing services at the ILP in parallel with development of this additional infrastructure. The location of VLMS is 35 kilometers South West of Nagpur, 0.5 kilomters from NH-7 and has Borkhedi Station for rail commutation. The proposed warehouse is said to come up on 2500 square meters.

The customers of the ILP at Borkhedi will benefit from:

  •           Strategic location of the ILP with respect to user industries
  •           Unhindered round the clock road access
  •           Bespoke IT systems designed to meet customer needs and improve  operational efficiency
  •           Experienced management team that understands and responds to the logistics needs of the customers

VLMS management believes these benefits will eventually lead to a reduction in the logistics transaction cost for the customers and industries in the region. The fact that the ILP at Borkhedi will be an integral part of the network of terminals being set up by VLMS will add value to the supply chain of the users by enabling end to end logistics solutions. He added that they have systems through which one can keep a tab of where exactly is their cargo at that particular moment.

While sharing their services, Sathianathan said that they intend to set up a Liquid Tank Farm for liquid cargo. They intend to set up a warehouse for liquid cargo. Companies are usually not equipped to store liquids (used as raw material or for processing) like Hexane, Furnace Oil, Ethanol etc in large quantities. VLMS offers

Warehouse for such liquids. The companies can withdraw the quantity that they need as and when they require from them. The company also provides security for the warehouse preventing pilferage etc. He added that the liquids get transported in their tankers in rail with an un-breakable seal ensuring tight security.

Board Member of VLMS and Honorary Consul of Peru Vikram Viswanath said that their parent company has been handling bulk loading, handling and transport of steel for the Tatas way back.

The Guggenheim Franklin Park Management has a significant stake in the company. VLMS was earlier having a significant presence in the South India. Now they have decided to extend their services to Pan India. The investment at Nagpur is said to be over Rs 100 Crores in the Phase I. Further costs will be when other phases begin. Vishwanathan said that the anuual turnover last year was Rs 100 crores. However, he added that they have set a target of Rs 1000 crores in the next year.

Rebranding of company nomenclature starts from July 17, 2014

Sathianathan said that they are happy to start our rebranding exercise with the commissioning of the ILP at Borkhedi. In keeping with the evolution of VLMS to an infrastructure based logistics company, they are in the process of renaming their company as Distribution Logistics Infrastructure.