Sical Logistics Ltd has announced that the Company initiated the operations of its first container train from Hatta Road Railway station in Balaghat District, Madhya Pradesh near the Kanha Sanctuary, on March 06, 2008. The train is shipping 86 containers of copper concentrate for M/s. Hindustan Copper Ltd to their factory at Khetri in Rajasthan.

Sical Multimodal And Rail Transport (SMART) Ltd, a 100% subsidiary of Sical Logistics Ltd, will offer a total Multimodal logistics solution to M/s. Hindustan Copper Ltd in transporting their Copper Concentrates/Copper Cathodes to and from their factories at Ghatsila (in Jharkhand) and Khetri (in Rajasthan). Sical will also provide last mile connectivity for the finished products of Hindustan copper from their factory at Taloja near Mumbai.

M/s. SMART is one of the Concessionaires of Railways to run container trains in India. The Company has obtained Category I license (Rs 50 Crore) to run container trains across all sectors on the Indian Railway system, catering to both EXIM and domestic traffic.

Speaking on the occasion Mr. Ashwin C Muthiah, Chairman of Sical Logistics said, “We would like to thank our customers for giving us the opportunity. SMART was established by Sical to offer competitive and value-added rail logistics services to customers. With the first container train flagged off we are extremely confident of our recognition as an end-to-end logistics solutions provider.”

The Company would invest primarily in rolling stock, containers and in developing rail linked Inland Container Depots (ICDs), Container Freight Stations (CFSs) and Port Side Container Terminals (PSCTs) which will act as multi-modal hubs together with efficient trucking and warehousing services for its customers.

SMART proposes to develop these terminals at strategic locations to offer a network of ICDs / CFSs across India in a “Hub-and-Spoke” model. The MIHAN rail/road terminal being developed at Nagpur would form the central “Hub”. Nagpur, with its central location has great potential in evolving as a multimodal logistics hub of India and Sical is developing its hub adjacent to the SEZ region of MIHAN at Nagpur. The “spokes” would be connecting the Hub and nodes spread across the country. Sical would develop these nodes i.e., ICDs in phases over the next five years.

Sical would invest in high-speed flat container wagons. These wagons are BLC type. Each BLC type wagon can carry two 20 foot containers. These wagons have the capability to run at 100 Kmph, thereby significantly reducing the running time and turnaround time. Ownership of rolling stock will provide Sical competitive edge over the others as it gives the Company the flexibility to deploy in various sectors. The Company would also invest in 20 foot ISO containers for containerization of EXIM as well as domestic traffic.

SMART’s container rail logistics services and the terminal network are envisaged to become the backbone of Sical’s evolution into a truly integrated multimodal logistics services provider in India. The rail logistics and the network of terminals and hubs would be complemented by Sical’s trucking business to provide last mile connectivity. Thus, by combining its port handling, CHA and trucking and warehousing businesses, with SMART, Sical would be able to offer a comprehensive and effective end-to-end solutions to its customers.