AVG Logistics has recently clinched a lucrative six-year contract, valued at Rs 105 crore, with the Indian Railways for the lease of a Parcel Cargo Express Train (PCET). The bespoke train, forging a vital link between the Korukkupet goods shed in Chennai and the New Guwahati goods shed in Guwahati, is slated to undertake four journeys each month over the contractual span, amounting to a total of 313 trips. The inaugural six months will witness a carrying capacity of 364 ton per trip, escalating to 484 ton subsequently.
A formal communique from AVG to the stock exchanges revealed that the express train service, covering a substantial 2,500-km distance in a commendable 72 hours, aims to establish seamless connectivity between the aforementioned locations. Sanjay Gupta, the Managing Director & CEO of AVG Logistics, expressed enthusiasm about the collaboration, underlining its commitment to advancing cargo transportation services and fortifying sustainable logistics practices. Gupta outlined the revenue impact of Rs 105 crore as a pivotal contribution to the company’s financial robustness, empowering them to embark on more ambitious projects.
During its Chennai to Guwahati route, the train will cater to industries dealing in tyres, hosiery, garments, FMCG, and incenses. Conversely, on the Guwahati to Chennai leg, industries specialising in tea, bamboo, plastic granules, mosquito repellent, FMCG, and hair oil will be served. The strategic move is anticipated to enhance operational efficiency, service reliability, and overall business growth.
Despite the significant development, AVG’s stock witnessed a modest movement, concluding the day at Rs 612.45, marking a 1.42 per cent dip on the BSE. The financial report for the third quarter ending December 31, 2023, depicted AVG’s net profit at Rs 4.8 crore, with a total income of Rs 125 crore.
Noteworthy is the fact that Indian Railways has entered into similar agreements with various entities, including DTDC Express, DRTC Logistics, DOT Express, Patel Roadways, V-Trans, and FastDespatch Logistics. The introduction of the Parcel Cargo Express Train (PCET) scheme in 2020 has provided companies, such as cement manufacturers and miners, with an alternative to booking entire goods cabins. This initiative, distinct in its prioritised traffic status and swift express passenger train-like movement, enables logistics companies to adhere to stringent delivery timelines, with designated stops for loading and unloading operations.