Mumbai-listed JSW Infrastructure Ltd has ventured into the container train operations business by acquiring the container train operator (CTO) license of Sical Multimodal and Rail Transport Limited from Pristine Logistics & Infraprojects Pvt Ltd.
“The Board of Directors at its meeting held today, approved the Purchase of Container Train Operator (CTO)/Concession by the Company from Sical Multimodal and Rail Transport Ltd subject to requisite government approvals,” JSW Infrastructure Ltd said in a regulatory filing on Friday without disclosing the value.
Sical Multimodal and Rail Transport Ltd, the rail logistics wing of Chennai-based Sical Logistics Ltd, holds a Category I license from the Indian Railways, to ply container trains throughout the Indian Railways network in both the export-import and domestic segments.
The container train operator license of Sical Multimodal and Rail Transport was transferred to Pristine Logistics & Infraprojects Pvt Ltd after it acquired Sical Logistics Ltd under India’s bankruptcy law for some Rs400 crores.
Subsequently, Pristine Logistics & Infraprojects acquired Distribution Logistics Infrastructure Pvt Ltd (DLI), which also came with a Category 1 permit from Indian Railways to operate container trains pan India.
“We have entered into an agreement to sell the container train operator license of Sical Multimodal and Rail Transport to JSW Infrastructure,” said Amit Kumar, Co-founder of Pristine Logistics & Infraprojects.
“We are doing this because we are buying DLI which also has a license to run container trains. We don’t need three licenses to run container trains, we need only two. The DLI license will be used to run the rail business of Sical Logistics,” Amit said, adding that the rail license of Sical Multimodal and Rail Transport was sold to JSW Infrastructure at a “reasonable price”.
A permit to run container trains will help support the container logistics business of JSW Infrastructure, which is a part of its strategy to expand and strengthen the third-party cargo base. JSW Infrastructure runs a container terminal at state-owned New Mangalore Port.
JSW Infrastructure had previously said it will pursue opportunities in synergistic businesses to increase revenue diversification.
“We intend to pursue synergistic businesses such as development of container terminals, liquid storage terminals, container freight stations (CFS), multi-modal logistics parks (MMLP) and inland container depots (ICD) to enable us to provide end-to-end logistics solutions to our customers,” it said in the prospectus for the initial public offering (IPO) of shares to list the company on the stock exchange.
JSW Infrastructure, the port unit of JSW Group led by Sajjan Jindal, is India’s second biggest private port operator.