Gateway Distriparks Limited is a well-known name in the logistics space in the country.

With services specializing in Inland Container Depots (ICDs) to managing & operating Container Freight Stations (CFS), cold chain logistics (via Snowman Logistics), rail/road transport, and warehousing the company plays an integral role in India’s shipping and logistics sector.

In the state of Andhra Pradesh, the company currently operates one CFS in Vizag with an installed capacity of 85000 TEUs and has 5 warehouses under the Snowman brand.

AP plays an important part in the company’s operations as 8% of Gateway’s pan India volume comes from Andhra Pradesh while around 11% of Snowman’s warehousing business comes from the state.

Speaking exclusively to Vizag Industrial Scan, Gateway Distriparks Limited’s young and dynamic joint managing director, Mr Samvid Gupta spoke on the global shipping scenario, their presence in AP and plans ahead.

For the benefit of our readers if you could briefly describe the varied services of Gateway Distriparks Ltd?

Gateway Distriparks Limited owns and operates multiple rail linked Inland Container Depots (ICD) and road linked Container Freight Stations (CFS) across India. Its subsidiary, Snowman Logistics Limited, is the leading integrated cold chain logistics company in India.

Our rail linked ICD (also called Dry Ports) are at Garhi-Harsaru (Gurugram, Haryana), Sahnewal (Ludhiana, Punjab), Piyala (Faridabad, Haryana), Viramgam (Ahmedabad, Gujarat) and Kashipur (Uttarakhand). In addition, we are also the exclusive train operator out of MMLP New Ankleshwar.

We own and operate a fleet of 34 trains and 580+ road trailers. We operate regular container train service from these ICD to the maritime ports at Nhava Sheva, Mundra, Kandla and Pipavav, transporting import and export as well as domestic containers.

Our road connected CFS are at Navi Mumbai, Chennai, Visakhapatnam and Kochi. These CFS offer transportation & storage, general and bonded warehousing, empty handling and several value-added services.

How is the company assessing the current global shipping scenario?

The global shipping scenario remains uncertain with some positive undertones as we finally seem to be getting close to a solution to the Red Sea crisis and also an end to ongoing conflict in Ukraine.

Macro level demand remains muted in both Europe and North America due to various factors. This directly impacts Export from India.

Ongoing tariff related issues with USA further complicate matters however with many trade deals being signed with many countries and regions we are optimistic about the future.

Import demand to India remains robust as ever. A more permanent solution to the Red Sea crisis will reduce voyage turnaround times and will help rationalize freight rates and lead to increase in global trade.

If you could talk us through some of your existing facilities in Andhra Pradesh?

We have one CFS in Visakhapatnam (Vizag) that has been in business for over 2 decades now. This CFS is constructed on a 25 acres land parcel at a location that is equidistant from the container terminals of both Vizag and Gangavaram ports.

It remains amongst the leading CFS in that market, serving Customers well over the decades. We used to have a CFS in Krishnapatnam, however that location has now been denotified and we are handling some domestic warehousing business at that location.

Snowman Logistics Ltd. operates 5 warehouses in Andhra Pradesh, facilitating EXIM and domestic distribution in the state. These state of art warehouses are holding stocks ranging from raw materials to the finished export goods, serving 100+ customers in the state.

What are your key operating areas in AP and capacity?

As mentioned above, our key operating area in AP is our CFS in Vizag. It has an installed capacity to handle ~ 85,000 TEU (twenty feet equivalent unit) per annum. In Krishnapatnam, while the CFS is denotified, Gateway Distriparks has a 50,000 sqft general warehouse.

Snowman has 5 warehouses – 3 in Krishnapatnam with a capacity of over 12,500 pallets and 2 in Vizag with a capacity of over 7200 pallets.

In terms of percentage how much of your overall business comes from AP?

In Gateway, approximately 8% of our pan India volume comes from AP. In Snowman, around 11% of our warehousing business is from AP.

How important would you classify the state of AP in terms of your overall business?

AP is a very important maritime state on the east coast of the country that continues to enjoy steady FDI in-flow in multiple industry segments.

In addition, Vizag port acts as the gateway port for landlocked states like Jharkhand, Chattisgarh, etc. (Vidarbha too) and also as the preferred container gateway for maritime states like Odisha and West Bengal.

We are looking to further strengthen our footprints in the state.

What are your expansion plans in AP and in what segments?

At this juncture we are not looking at any expansion in road connected CFS in AP. We are open to evaluating an opportunity for a rail linked ICD in AP. For the cold storage side, we are evaluating further expansion in Vizag as well as exploring Vijaywada.

How much land bank does the company have in AP?

Gateway owns approximately 35 acres at Krishnapatnam and operates out of a 25-acre facility in Vizag on a long-term lease. In Snowman, the presence is about 17 acres of land.

The Ports, Shipping & Logistics sector is one of the key focus areas of the current government. From an operator perspective what would you like to see the government do in these sectors?

Vizag port is almost a century old. As was the case in those times, the city came up around it. The other port (Gangavaram) is also in a densely populated area.

The government needs to take a holistic approach while re-designing / re-deploying all existing infrastructure so that port infrastructure does not suffer (because of accommodating the needs of an ever-increasing population) as it increases logistics cost, making it difficult for Exporters from India to compete globally.

There should also be more industrial parks set up to promote investment in the region to further increase the volume potential of this region.

What sectors in the state you see to be promising from a business standpoint?

Plant and machinery (capital equipment for new projects across Central and East India), mineral ores, rice, pharmaceuticals and chemicals are reasonably developed commodity types while readymade garments is an upcoming one.

From a Snowman point of view, expansion in QSR, retail and further boost in the seafood industry looks promising.

The marine and seafood sector is one of the leading export sectors from the state. How is your company servicing this segment?

As a CFS operator, we are not handling marine and seafood but all our cold storage warehouses in AP among other facilities in the east coast are targeted towards handling marine and seafood sector for exports and distribution in the state.