JSW Infrastructure Prioritizes Enhancement of Inland Logistics Chain.

Ports operator JSW Infrastructure is enhancing its logistics infrastructure through a network of inland container depots, container freight stations, and rail terminals to form strategic partnerships with shipping lines and develop a transshipment hub.

“We are working on that. Creating an asset is one part of the business, and having a tie-up with liners is the most critical part. Setting up the logistics supply chain is a part of that,” CEO and MD Arun Maheshwari told businessline. He emphasized the importance of strategic location and ecosystem creation. “Once we have one or two (shipping lines) on board, then probably we’ll get into the business of transshipments.”

On Friday, JSW Infrastructure announced the acquisition of a slurry pipeline from group company JSW Utkal, enhancing connectivity for its upcoming port at Jatadhar in Odisha. Previously, the company revealed plans to acquire a majority stake in Navkar Corporation, which owns three container freight stations (CFS), holds a pan-India container train operator license, and operates an inland container depot (ICD) facility in Morbi, Gujarat.

“Unless we become a complete logistics supply chain provider, we will be servicing only one part of the business,” Maheshwari explained, highlighting the company's focus on logistics infrastructure. “Providing last-mile connectivity, being a logistics supplier, and offering additional services to our customers increase the stickiness of the cargo.” Last quarter, JSW Infrastructure won a bid under the Gati Shakti scheme to develop a rail terminal at Arakkonam in Chennai, securing an anchor customer for the project.

JSW Infrastructure is investing around Rs 30,000 crore to increase its cargo handling capacity to 400 million tons by 2030, with additional investment in inland logistics infrastructure. This will involve a combination of acquisitions, strategic tie-ups with existing players, and bidding for new opportunities.

The company handled nearly 28 million tons of cargo in Q1 of FY25, slightly lower than estimated due to a planned shutdown of JSW Steel’s Dolvi plant, which affected cargo volumes at Jaigarh and Dharamtar. The maintenance shutdown also impacted JSW Infrastructure’s operating margins, but Maheshwari expects improvement in the current quarter.

JSW Infrastructure has a robust pipeline set to boost future volumes. The company has signed concession agreements for liquid terminals at Jawaharlal Nehru Port and Tuticorin, with construction already underway. Additionally, JSW is expanding capacities at existing ports such as Jaigarh and Dharamtar.

HBL