Development of a Composite Logistics Hub

A Public Private Participation initiative by

Govt. Of Madhya Pradesh

A FIRST OF ITS KIND

MULTIMODAL LOGISITCS HUB

IN INDIA

TAKEN UP

BY MP MANDI BOARD

RAIL TERMINAL,ICD,CFS,WAREHOUSING ZONE,COLD STORAGE, AGRI PROCESSING ZONE

Overview and Pre-Award

Overview (1)

Short Description

Setting up Composite Logistics Hub at Powarkheda, Distt. Hoshangabad

Implementing Agency

MP State Agricultural Marketing Board (Mandi Board)

Line Department

Agriculture Department

Location •Powarkheda, Distt. Hoshangabad (between NH 69 & Delhi-Mumbai rly line next to Powarkheda rly stn, 6.5 km from Itarsi rly stn)

•Well-connected:– NH 69 for North-

South– NH 12 for East

Area 115 acres land

Concession Period

33 years, extendable by 15 years

Beneficiary of the project:

Project Influence Area (PIA) : Hoshangabad, Betul, Harda, Sehore, Bhopal, Raisen

Cargoes: Wheat, Rice, Soya Bean, DOC, Horticulture produce, Industrial Products

• All services under one roof to entire logistics chain • Mandi for sale of produce• Warehouses for storage - WDRA

approved • Modern logistics support

services• Export / Import facility • Storage for perishable / high

value produces• Value addition for the produces• Reduction in losses

Farmers Point of view

Benefits from the Project

• Facility will catalyze the development of the area• Employment Generation• Attract investments by way of

ancillary facilities• Value enhancement to the

farmers• Encourage farmers to grow

horticulture crops due to cold storage

• De-congestion of city of Itarsi from truck movement

Social point of view

Dedicated marketing Facilities for Farmers

Negotiable Warehouse Receipts

Wholesale Market / Mandi to be operated by Mandi Board

Inland Container Terminal Bulk Terminal Railway Siding & Trucking Hub

State of the Art Warehousing FCI Facility with Modern Double Deep/Multiple Layer Stacking Cold Storage

State of the Art Processing Facilities

Procurement

Logistics & Transport

Marketing

Storage

Processing & Value Addition

Farm

to F

ork

Inte

grat

ion

Empowering the Farmer, right to sell when and where he wants to

State of the art warehousing for PIA to reduce menace of wastage

Better & Higher Prices to farmers, access to processing, Logistics industry

Value Addition & Processing integration with procurement

End to End Integration with Dedicated Logistics & Transport Infrastructure

Dedicated marketing Facilities for Farmers

Negotiable Warehouse Receipts

Wholesale Market / Mandi to be operated by Mandi Board

Inland Container Terminal Bulk Terminal Railway Siding & Trucking Hub

State of the Art Warehousing FCI Facility with Modern Double Deep/Multiple Layer Stacking Cold Storage

State of the Art Processing Facilities

Procurement

Logistics & Transport

Marketing

Storage

Processing & Value Addition

Farm

to F

ork

Inte

grat

ion

Empowering the Farmer, right to sell when and where he wants to

State of the art warehousing for PIA to reduce menace of wastage

Better & Higher Prices to farmers, access to processing, Logistics industry

Value Addition & Processing integration with procurement

End to End Integration with Dedicated Logistics & Transport Infrastructure

Benefits

PPP Mode DBFOT

Estimated Cost Rs. 138.50 crs.

Construction period

•3 years for minimum facilities (COD)•7 years for completion

IRR •20.70% (post-adjustment of cash flow to rly for revenue sharing)

Overview (2)

Bid Process • 2-Stage

1st RfQ • Issued 01.12.2009• No response• Stringent criteria, no

qualifiers

2nd RfQ • Issued 04.03.2011• Opened 30.03.2011• 13 RfQs recd / 12

short-listed

RfP • Issued 16.05.2011• Opened 14.07.2011

Concession signed 24.10.2011

Substitution Agreement signed 11.10.2012 with lead bank

Bidding Parameter Highest Premium

Winning Bidder

Kesar MultiModal Logistics Ltd., Mumbai (Consortium of Kesar Terminal & Infrastructure Ltd with Kesar Enterprises Ltd)

Winning Bid

• Rs. 12.78 crs. • To be paid in 10 equal yearly

instalments w.e.f. Fin Close so that PV of instalment @12% discounting is same as 1/10th of quoted premium based on formula

Cfn = Cq x (1+r)n-1

- Cfn : Premium to be paid in nth year

- Cq : Original quoted premium instalment

- n : Year of cash flow- r : Discount Rate (12%)

Procurement (2)

S. No.

Amount (Rs. Crs)

Status

1 1,27,80,000

Paid2 1,43,13,600

3 1,60,31,232

4 1,79,54,980

5 2,01,09,577

Future Payments

6 2,25,22,727

7 2,52,25,454

8 2,82,52,508

9 3,16,42,809

10 3,54,39,947

22,42,72,834 Grand Total

Bid Highlights Annual Concession Premium

• Railway siding/private freight terminal

• CFS/ICD • Warehouse for agro and industrial

cargo (Bulk, Bonded, transit etc.) • Cold Storage • Processing Facility• Value add services area

Conceptual Scope of Work (1)

Development by Concessionaire (88.3 acres)

Development by Govt Agencies (26.7 acres)

• Wholesale market for agriculture and horticulture (developed by Mandi Board)

• Warehousing Facilities (developed by MP Warehousing & Logistics Corp as National Storage Reserve)

Post-Award

Approvals AccordedS. No. Purpose Agency Date

1 Master Plan Mandi Board 24-12-12

2 Railway Siding GM-Western Railway 18-12-12

3 Pollution MP Pollution Control Board 18-09-12

4 ICD Inter-Ministerial Committee, GoI 19-12-12

Particulars Agency Amount

Financial Closure Consortium of Banks 148.67

Debt : Equity ratio 2 : 1

Financing Scheme

Project Progress

Construction Progress

Details Total (7 years) Minimum as per CA (3 yrs)

Actual

COD 21-04-15 20-04-15

Warehouse & Bulk Terminal

47,500 sq. mt.

15,000 sq. mt.

15,127 sq. mt. complete + 8,125 sq. mt. up to plinth

Transit & Bonded Warehouse

1,946 sq. mt. 1,076 sq. mt. 1,375 sq. mt.

Railway Lines 3 nos. 2 nos. 3 nos.

Cold Storage 3,000 sq. mt. 600 sq. mt. 3,600 sq. mt.

Paved Area 72,817 sq. mt. 28,200 sq. mt. 28,449 sq. mt.

Weigh Bridges 2 Nil 2 nos.

Common Facilities 87,703 sq. mt. 51,142 sq. mt. 55,638 sq. mt.

Highlights

COD expectedDue to time taking Railway /CRS approvals and Delays from Railway side due to accidents at Itarsi and Harda. Planned COD could not be achieved as railway siding could not be commissioned. However all other facilities were ready and commissioned on 20th April 2015.

30th Sept 2015

Inauguration on 30/05/2015

Inauguration on 30/05/2015

Inauguration on 30/05/2015

Project Photographs as on 30/08/2015

Site Office

Admin Building

ICD Warehouse

Container Yard at ICD

Warehouse-3 (3000 Sq.Mtr Agri Warehouse) Front View

Warehouse-3 (3000 Sqm) view of Tremix Flooring

Warehouse-4 (3600 Sq.Mtr Agri Warehouse) Front View

Warehouse-4 (3600 Sqm Agri Warehouse) Inside View

Rail Warehouse no. 1 – 8125 Sqm

Rail Yard for Line 1 and Line 2

Rail Connectivity on Bhopal end

Track Linking for 3rd Railway Line

Track Linking works in Railway Premises

Cold Storage (3600 Sqm)

Trunk Road from NH to Rail Yard

Thank You

Logistics Park :

Park (ing) PPPs firmly in MP