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Allcargo Terminals is planning a second container freight station (CFS) in Chennai, located in the Kattupalli-Ennore corridor, to manage growing logistics demand in the region. The company has extended its 30-acre land lease from Venkatesh Coke and Power Limited (VCPL) until September next year, paying an annual rent of INR 9 crore. The expansion complements Allcargo's existing 23-acre Chennai CFS, which handles over-dimensional cargo and operates 24/7. The new facility is expected to strengthen the company's presence in southern India and improve cargo handling efficiency.
Allcargo Terminals is moving forward with plans for a second container freight station in Chennai, focusing on the Kattupalli-Ennore area. The company has extended its lease agreement for 30 acres of land with Venkatesh Coke and Power Limited (VCPL) through late September next year. The lease involves an annual rent of INR 9 crore, which is subject to escalation every three years, and the agreement is independent of any promoter entities. Advertisement
The upcoming facility will cater to both CFS and inland container depot (ICD) operations. Allcargo aims to increase its TEU handling capacity significantly over the next few years, supporting the growing demand for freight services in southern India. The move aligns with the company's strategy of expanding its logistics footprint and enhancing its ability to manage high-complexity cargo.
Allcargo's existing Chennai CFS occupies 23 acres and is strategically located about 9 km from Chennai Port. The station is equipped to handle over-dimensional cargo (ODC) such as industrial machinery, flat racks, and open-top containers. Specialized trailers and a dedicated ODC gate enable efficient movement of oversized cargo. The facility operates round-the-clock following customs approval and holds an Authorised Economic Operator (AEO) certification, facilitating faster exports and smoother operations.
The company is also leveraging technology to improve service efficiency. Its digital platform, myCFS, allows customers to track shipments, request services, and complete documentation online. Investments in renewable energy, including rooftop solar panels at the Chennai CFS, aim to reduce operational carbon footprint.
Industry experts note that Chennai's container terminals are approaching capacity limits, creating a higher need for inland freight handling facilities. Allcargo's second CFS will help manage congestion, provide more efficient cargo movement, and accommodate increasing trade volumes in the region. This expansion demonstrates Allcargo's proactive approach to supporting trade logistics and reinforcing its market position in southern India.
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