JSW Infrastructure Ltd, India’s second-largest private port operator, announced that its wholly owned subsidiary, JSW Port Logistics, has acquired a brownfield rail siding in Kudathini, Ballari district, Karnataka, for ₹57 crore. The acquisition is part of the company’s broader strategy to expand its multi-modal logistics footprint and improve connectivity for industrial cargo in key regions.
Strategic Overview of the Acquisition
The Kudathini rail siding spans approximately 86 acres and was previously owned by Hothur Ispat. JSW Port Logistics plans to transform it into a state-of-the-art Multi-Modal Logistics Park (MMLP).
The facility is expected to feature:
- Modern land infrastructure for freight handling
- Container handling systems
- A rail freight terminal
- Fully equipped inland container depot
Commercial operations are targeted to commence within six months, with a phased operational ramp-up over subsequent years.
Investment and Development Plans
The total investment for developing the Kudathini MMLP is estimated at around ₹380 crore, which includes the acquisition cost of ₹57 crore. The investment will be deployed over the next few years to build a world-class logistics infrastructure supporting rail-linked cargo operations.
This move aligns with JSW Infrastructure’s pan-India logistics strategy, aiming to expand multi-modal connectivity through rail-linked terminals located along major industrial corridors.
Existing Logistics Network and Synergies
Currently, JSW Infrastructure operates rail-linked terminals in:
- Panvel, Maharashtra
- Morbi, Gujarat
Another Gati Shakti terminal is under construction in Arakkonam, Tamil Nadu. The Kudathini facility enhances this network, providing strategic benefits due to its proximity to:
- JSW Steel’s flagship Vijayanagar plant
- Group facilities in cement, paints, and energy
Its location within a vibrant industrial ecosystem — comprising mining companies, iron ore processors, agri-product firms, and cement, chemicals, and steel manufacturers — is expected to attract third-party cargo volumes, creating a profitable logistics hub.
Economic and Operational Significance
Currently, the Ballari region lacks a rail-linked inland container depot, leading to higher logistics costs for containerized cargo moved via road. The new MMLP is expected to:
- Lower logistics costs for businesses in the region
- Offer an integrated logistics solution for import-export cargo
- Support JSW Group’s operational efficiency and supply chain optimization
JSW Group’s Broader Logistics Vision
JSW Infrastructure operates 12 port concessions across India’s east and west coasts, along with a liquid storage terminal in Fujairah, UAE. The group aims to expand its cargo-handling capacity from the current 177 million tonnes per annum (MTPA) to 400 MTPA by 2030, positioning itself as a leading player in India’s integrated logistics and port sector.
Outlook
The acquisition of the Kudathini rail siding represents a strategic milestone for JSW Infrastructure, strengthening its logistics capabilities in a high-demand industrial corridor. By offering multi-modal connectivity and cost-effective freight solutions, the company is expected to enhance cargo throughput, attract third-party business, and consolidate its position as a pan-India logistics leader.
Summary
- Acquisition: Kudathini rail siding, Ballari district, Karnataka for ₹57 crore
- Facility: 86-acre site to be developed into Multi-Modal Logistics Park
- Total Investment: ₹380 crore including acquisition cost
- Features: Rail freight terminal, container handling, inland container depot
- Strategic Advantage: Close to JSW Steel Vijayanagar plant, major industrial hub
- Operational Impact: Lower logistics costs, integrated solution for cargo
- Group Vision: Expand cargo-handling capacity from 177 MTPA to 400 MTPA by 2030
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