With the possible relaxation in the cabotage law the logistics business in the city is all set to boom.
The number of container freight stations (CFS) is also on the rise. MIV Logistics Pvt Ltd, a company promoted by Infrastructures Kerala Limited (INKEL) in association with MFar Enterprises Pvt Ltd and VKL Estates Pvt Ltd is developing a container freight station at Vallarpadam on 18.5 acres of land taken on lease from Cochin Port Trust for 30 years at an estimated cost of Rs 70 crore. The facility is expected to be partly operational by December and fully operational by October 2013. When fully commissioned it will have a capacity to handle 1 lakh 20-foot Equivalent Units (TEUs) per annum, both for export and import.
The facility will have a warehouse of 60,000 sqft capacity. It will have an open yard of over 5 lakh sqft for storage of containers.
MIV Logistics had signed a Memorandum of Understanding with APM Terminals India Private Limited (APMT) in March 2012. The final agreement for entrusting the operation and management of the facility to APM Terminals Private Limited was signed by T Balakrishnan, managing director, and Subhasis Ghosh, managing director of APM Terminals India Private Ltd. Michael Hansen, Regional Director, Asia and Pacific, APM Terminals Pvt Ltd was also present.
The duration of the agreement is 10 years. The permanent facilities will be owned by MIV Logistics Pvt Ltd. All operational expenses will be borne by APMT. The gross revenue will be shared by MIV and APMT.
The project is being funded by own resources and term loan from State Bank of Travancore. A loan agreement for an amount of Rs 45 crore was also signed. The fund mobilisation was done by SBI Capital Markets Ltd, Mumbai.
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