Eredene to invest in Indian logistics park

The planned 30-acre Logistics Park will serve the Kalinganagar industrial complex, a fast-growing steel hub in Orissa State’s Jajpur district, and will be developed and managed by Apeejay Infra-Logistics Pvt. Ltd., the joint venture company through which the Eredene Group is also developing a large integrated logistics park in Haldia, West Bengal. As with the Haldia JV, the Eredene Group has taken an equal 50% stake with Apeejay Surrendra Group.

Both partners have invested an initial Rps5.25m (£68,000) for an 80-year lease on the land, which is in the village of Khurunti, close to the 13,000-acre Kalinganagar industrial complex. Large steel projects in the vicinity include Tata Steel’s 6m-tonne plant and a 12m-tonne plant owned by Posco of South Korea. ArcelorMittal, the world’s largest steel producer, is developing a US$9bn integrated steel plant in the nearby district of Keonjhar.

The Logistics Park will be the first fully purpose-built transport and warehouse facility to service the Kalinganagar region and will specifically target the in-bound and out-bound cargo centred around the steel industry. Construction is scheduled to start in the second half of 2008, with operations targeted to start in 2009.