TCI to line up INR 250 cr worth capital expenditure for FY23

Logistics firm Transport Corporation of India (TCI) reveals plans to line up a capital expenditure of around Rs 250 crore, of which Rs 100-125 crore will be spent on ships and containers, a company executive said. 

We are looking at a Capex of around 250 crores in the next financial year. Of this, about Rs 100-125 crore will be spent on ships and containers and, of course, some amount – may be another Rs 30-50 crore – on trucks. Then, we will also spend on building warehouses…which should be about another Rs 75 crore,”

~ Vineet Agarwal, Managing Director, TCI told PTI

Currently has 12 million sq ft of warehousing space under its management, TCI is expected to increase its foothold further by acquiring more space going forward, Agarwal said.

Highlighting that the company is well-positioned to capture the growth that’s coming into the market, he said even if there is not that much growth in some sectors, the company would still be able to grow because of its diversified operations.

“When you see the infrastructure growth that’s happening, which is multimodal, our rail business or seaways business should get a flip in that. We see customer demand changing. The general cargo movement is anyways happening. Our freight business also does relatively well there. So, all of this means that we are quite well positioned to capture the growth that’s coming into the market,” Agarwal noted.

Laying TCI’s plan for the coming one year, Agarwal said, we are looking at around a 12 -15 percent increase in the topline and perhaps 20 percent (growth) is in the bottom-line.

He further talked about the Prime Minister’s Gati Shakti initiative as a key program as one of its objectives is to bring down the logistics cost, which will happen if there is a shift to multimodal transport.

“So, that multimodal shift has to happen to bring down the logistics cost. Also, the program will be very important for us to synchronize all the efforts and the activity that is happening around building this multimodal infrastructure. Multimodal means that you can move seamlessly between different modes of transport. This should be seamless for the logistics provider as well as for the customer,” he added.

Agarwal furthermore estimates that in the next 5-10 years, electrification, which is currently at the last mile or city level, will increase manifolds and the use of alternative sources of fuel — such as CNG, LNG, and ultimately hydrogen — will also rise.

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