Sical Logistics signs agreement for MIHAN Road Terminal with MADC

Sical Logistics Ltd has announced that the Company has signed the shareholders agreement on August 22, 2007 with the Maharashtra Airport Development Company (MADC) and Gupta Coal for developing the Road Terminal at the Multimodal International Hub Airport at Nagpur (MIHAN).

A special purpose vehicle (SPV), Nagpur Sical Gupta Road Terminal Ltd (NSGRTL), was formed in April 2007 to build and operate the MIHAN Road Terminal. The Company will have 51% stake in the project and MADC and Gupta Coal will have 26% and 23% stakes respectively. The memorandum of understanding (MOU) between MADC and the Company was signed at Singapore in November 2006.

NSGRTL, the SPV Company also signed the lease agreement with MADC for the land., for 66 years. The Road Terminal, which will be spread over a 60 hectare plot, will be developed, at a project of cost of Rs 119 crores.

The Company's Managing Director and Group CEO Sudhir S Rangnekar said, "The Sical Road and Rail Terminals in MIHAN will be the largest logistics hubs in the country with world class infrastructure and state of the art facilities. We are delighted at the signing of the agreements with MADC and expect to commence work in September 2007. The Road Terminal will have parking facilities for 1150 vehicles including multi-axle vehicles, warehousing space of 0.5 million sqft, 15 hectares of open plots and 45000 sqft of cold storage facility."

MIHAN Rail Terminal

The Sical led consortium of MADC and Gupta Coal is also building the MIHAN Rail Terminal at Nagpur, which will be developed on a 24 hectare leased plot with electrified rail siding on a Build Operate Transfer basis. The terminal will have a capacity of 1,50,000 TEUs per annum and. is expected to be operational by next financial year. The SPV for the same has been incorporated and the necessary agreements with MADC for the project will be signed in the next few months.

Source : Equity Bulls

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