Allcargo Logistics is setting up multi-modal logistics and industrial parks at five locations. The board of Allcargo Logistics has given its approval to set up logistics, multi-modal and industrial parks on 10 August 2018.

The company has set up a wholly-owned subsidiary, Allcargo Logistics and Industrial Parks, to manage and maintain the facilities at Bengaluru, Hyderabad, Nhava Sheva (near Mumbai), Jhajjar (in Haryana) and Nagpur.

The company is also in the process of setting up separate subsidiaries or special purpose vehicles (SPVs) to develop the facilities. The land parcels owned by the company will be transferred to these SPVs and used to leverage finance for construction.

The company also plans to monetise some of its assets to finance the expansion. The construction of the Bengaluru multi-modal logistics park will start in September 2018 on a 100 acre plot near Whitefield in Karnataka.

In Hyderabad, Telangana, it plans to add 1,00,000 sq ft of warehousing space to the 60,000 sq ft already built on the Outer Ring Road with rail access.

At Nhava Sheva, in Navi Mumbai, Maharashtra, close to the Jawaharlal Nehru Port Trust, it has built 1.5 lakh sq ft of warehousing space and has plans to add more.

The construction of the Jhajjar facility, to be India’s largest logistics park near Delhi, will start in the next two months.It will be aligned with the dedicated freight corridor. It is connected to the nearby rail line at Farooqnagar.

These facilities will be developed to the requirements of customers with whom it will sign agreements for upwards of five years. Allcargo Logistics hopes to raise Rs 1,000 crore to finance the projects.