Allcargo Terminals Ltd, part of the Allcargo Group, planning to open its second container freight station (CFS) in Chennai. The project forms a key part of ATL’s ₹550 crore expansion plan, which aims to increase capacity across its CFS network and new facilities nationwide.
New CFS Strategically Located Near Kattupalli-Ennore Port
The proposed CFS will be located closer to the Kattupalli-Ennore port in North Chennai, which now handles nearly half of the city’s container volumes. According to R. Suresh Kumar, Managing Director of Allcargo Terminals Ltd, the current Chennai facility can handle one lakh TEUs annually. He added, “We are evaluating options to build the new facility either through a partnership or on our own. Negotiations are in the final stages and should conclude next quarter. Once land and approvals are in place, phase one of the project will take about six to nine months to start.”
Investment to Come from National Expansion Budget
Allcargo will fund the Chennai expansion through its ₹550 crore capital plan for the next three years. While the company finalizes project details, it continues to strengthen its footprint in India’s major logistics hubs.
Role of CFS in India’s Port Ecosystem
A container freight station operates as an extension of a port and functions as a bonded area under customs control. Kumar noted that about 35% of port cargo volumes typically move through CFSs, highlighting their importance in India’s logistics chain.
Current Nationwide Operations
Allcargo currently operates:
- Two CFSs at Nhava Sheva–JNPT
- Two CFSs at Mundra
- One in Chennai
- One in Kolkata
- One Inland Container Depot (ICD) in Dadri, Haryana
Together, these facilities offer a total handling capacity of 8.5 lakh TEUs. “We operate in ports that together manage nearly 80% of India’s export trade,” Kumar said.
Four Major Capacity Expansion Projects Underway
The brand is executing four key expansion projects, including the new Chennai CFS, to scale capacity across its network. Of the ₹550 crore expansion budget, ₹150 crore has already been invested. The expansions will increase ATL’s capacity from 8.5 lakh TEUs to 13 lakh TEUs. The company currently holds about 250 acres of land across India through ownership, leases, and partnerships.
Upcoming Projects Across Major Logistics Hubs
*JNPT: Ongoing expansion of existing facilities
*Mundra: A new CFS planned on 60 acres outside the Adani SEZ, targeted for completion within a year
*NCR (Farukhnagar): A greenfield ICD with rail connectivity; ATL is securing 60 acres for a facility with an annual capacity of 1,20,000 TEUs
Industry Outlook Remains Strong
Kumar stated that India’s ports and shipping sector is undergoing a transformative phase, supported by rising cargo volumes, strong policy initiatives, and higher investments. Government programmes like Sagarmala, which includes over 574 projects worth more than ₹6 lakh crore, and the shipbuilding financial assistance scheme extended until March 2026, are driving capacity growth and technology upgrades, including green propulsion systems.
Sector Growth to Benefit ATL
As reported by thehindubusinessline.com, India’s maritime sector is expected to add 500–550 million tons per annum of capacity between FY23 and FY28, driven by coal, containerized cargo, and petroleum. “These trends will significantly benefit the industry, and in turn, support ATL’s long-term growth,” Kumar said.
