JSW Infrastructure makes acquisition to expand Karnataka logistics network 

India's second largest port operator JSW Infrastructure, a part of the JSW Group on Thursday announced the acquisition of a brownfield Rail Siding in Kudathini, Ballari (Karnataka), through its wholly owned subsidiary JSW Port Logistics Private Limited. 

The site spans over 86 acre and was previously owned by Hothur Ispat Private Limited. The consideration for the transaction is around Rs 57 crore.

The announcement was made after market hours on Thursday. 

JSW Infrastructure stock ended on a flat note at Rs 314.55 today against the previous close of Rs 313.80 on BSE. Market cap of the firm stood at Rs 66,055 crore. 

The port operator said it aims to establish a pan-India logistics network and emerge as a leading integrated logistics player through the deal. 

"The company aims to develop a robust ecosystem of rail-linked terminals and enhance multimodal connectivity through container rail services across strategic industrial corridors. Currently, JSW Infrastructure, along with its subsidiary, operates rail-linked terminals in Panvel (Maharashtra) and Morbi (Gujarat), with a Gati Shakti Terminal (GCT) under construction in Arakkonam, Chennai (Tamil Nadu)," said JSW Infra.  

"The Kudathini siding is being developed into a state-of-the-art Multi-Modal Logistics Park (MMLP). The facility will feature modern land infrastructure, container handling systems, Rail Freight Terminal (RFT) and a fully equipped Inland Container Depot (ICD)," added the JSW Group firm. 

Commercial operations are likely to start within the next six months, with a phased ramp-up. The total capital expenditure for the project is estimated at Rs 380 crore, including Rs 57 crore for the announced acquisition. The capex will be deployed over the next few years alongside ongoing commercial operations to fully develop the site into a comprehensive logistics hub.  

JSW Infrastructure is a private player focused on developing, operating and maintaining ports services, ports-related infrastructure development activities, and development of infrastructure. It offers port services that involve marine services, including the piloting of vessels using tugs, mooring, berthing, and de-berthing; stevedoring services, including loading/unloading cargo to and from berthed vessels using mobile harbour cranes/ship unloaders.