Global logistics major DP World will look to expand presence in India, specially in the rail freight business. The company has upped rail freight handling capacity at its Pali terminal by 25 per cent with the addition of a third line, while it continues to explore “additional investment opportunities” across the western and eastern regions of the country.
The Dubai-based company has already invested ₹1,800 crore to expand rail asset infrastructure and operations.
DP World currently operates seven rail and inland terminals. It has rail terminals at Pali, Modinagar, Panipat and Hindaun – in north India; Hazira and Ahmedabad in the west; and in Hyderabad in south. It operates through partner networks in the east. The company has over 100 container and Special Freight Train Operator Scheme (SFTO) rakes and over 16,000 containers, and trailers for last-mile delivery.
Ramp up capacity
According to Adhendru Jain, Vice President of Rail and Inland Terminals, DP World Subcontinent, the logistics major will ramp up containerised cargo handling in the north by commissioning a third line at its rail terminal in the Pali-Rewari segment. This expansion will increase the monthly freight train handling capacity of the said terminal by 25 per cent from 192 trains to 240 trains.
DP World’s Pali rail terminal functions as a transshipment hub, offering facilities such as customs clearance and the consolidation of smaller shipments into containers for more efficient and secure transportation. It connects containerised cargo to key seaports like Mundra, Pipavav, Hazira, and Nhava Sheva. The terminal enhances efficiency by utilising double-stack rakes and is connected via the western dedicated freight corridor (WDFC).
Jain said, the company is already an end-to-end surface transport solutions provider and is targeting customised logistics solutions.
“We are looking to increase the share of containerised cargo movement by rail, and the capacity expansion of our terminal at Pali is a key step in this direction. By leveraging our rail network, we not only provide efficient transport but also look at sustainability by reducing carbon emissions by 65 per cent, as compared to traditional road transport,” he said.
Customised solutions
“India is amongst the focus markets for us. We have recently upgraded facilities at Panipat and also at Hazira, we are investing in the third line at Pali… so depending on demand and customer requirements we will explore further investments in the country,” Jain said.
DP World has witnessed domestic rail freight growth of over 140 per cent from 2021 to date.
To a specific question on catering to the eastern region, Jain mentioned that it has “customised solutions” depending on the customer requirements.
For instance, the company has Morbi-Kolkata rail freight service that connects ceramic traders in the eastern city with ceramic manufacturers of Gujarat. Morbi is said to be India’s ceramic manufacturing hub.
“This apart we are open to exploring new opportunities in the eastern region,” Jain said.
