Allcargo in JV with Concor

Allcargo Global Logistics Ltd has informed BSE that the Company has entered into a joint venture agreement with Container Corporation of India Ltd (CONCOR), a Public Sector Undertaking engaged in the business of, inter-alia, Container Rail Transportation, ICD operations, Warehousing, Road Transportation, Coastal Shipping and Cold Chain Logistics, for setting up of Container Freight Station (CFS) / Inland Container Depot (ICD) at Dadri, Greater Noida in Uttar Pradesh for catering the container traffic of North India.

The proposed venture would help both the Companies in achieving significant growth in their respective business genre by attracting high volumes of existing NCR LCL Cargo at Dadri CFS / ICD. The said venture is expected to commence operations by January 2009.

In this regard the Company has issued the following Press Release:

"Allcargo Global Logistics Ltd (Allcargo) and Container Corporation of India Ltd
(CONCOR), both premier players in their respective areas of business, namely, Multi
Modal Transport Operations & CFS operations and Rail Container Logistics, have formed a Joint Venture Company (yet to be named) for establishment of a CFS at ICD Dadri, Greater Noida in the State of Uttar Pradesh. This facility would be built at the CONCOR ICD at Dadri and would cater to the container traffic of North India.

The state of the art facility would be developed on area of 40,000 sq. mtrs and would have the capacity to handle 84,000 teus pa. This facility is expected to commence operations by Jan'09.

ALLCARGO is a leading Integrated Multimodal Transport Operator in India, offering end-to-end logistics solutions across the world. Its activities include Multimodal Transport Operations (MTO), owning and operating Container Freight Station (CFS) at JNPT, Chennai & Mundra, and handling of project cargo. ALLCARGO has a pan India presence across 28 locations and an extensive international reach comprising of own offices in 65 countries across the world. Recently Allcargo acquired the Transportation and equipment division of Transindia Freight Services which is expected to add another dimension to logistic services offered by Allcargo.

CONCOR, a Central Government Public Sector Undertaking under Ministry of Railways is primarily engaged in Container Rail Transportation Business, ICD operations, warehousing and road transportation. CONCOR also provides transit warehousing for EXIM cargo, bonded warehousing and provides air cargo facilities. CONCOR as, of late, ventured into Coastal Shipping and Cold Chain Logistics as well.

With the opening of container train operation for the private sector, some of the major shipping lines either directly or through their affiliates have taken license, for running container train services. This emerging trend has necessitated collaboration among neutral players with sufficient experience and expertise and a wide network in container logistics. The rationale for setting up the proposed JVC emanates essentially from the strength of CONCOR as the premier logistics service provide in the country with its unbeatable network of ICD's and wagon infrastructure and Allcargo's strength in the business of LCL consolidation, FCL forwarding, CFS operations and its ability to facilitate / market ability is expected to attract significant volumes of existing NCR cargo, to ICD / Dadri. Allcargo's extensive branch and franchisee network in India as well as in other countries would add to the strength of this JV.

With this, the two Companies are looking forward to synergies their expertise in delivering world class services to their customers."