Gateway Distriparks surges on hopes of bagging CFS contract

Gateway Distriparks jumped nearly 5% to Rs 194.65 on reports it has emerged as the top bidder for securing a 15-year operations and management contract of a Punjab government owned container freight station (CFS). The scrip rose on high early volume of 7.6 lakh shares on BSE.

The Punjab government owned container freight station (CFS) is situated close to Jawaharal Nehru Port Thrust (JNPT) near Navi Mumbai. It is a 27.5 acre facility with a handling capacity of 1,50,000 twenty foot equivalent units. If Gateway Distriparks (GDL) is able to get this container freight station (CFS) contract, it will give a logistics advance to the company given that Gateway operates one of the largest CFSs at JNPT. The other bidders for the CFS contract are Apollo Tyres' logistics arm, Adani Enterprises and Welspun. The results of bids are expected to be announced in next two weeks.

Gateway Distriparks scrip had spurted in late November 2006 after it announced acquisition of 50.1% stake in Snowman Frozen Foods, a cold chain, for Rs 48.12 crore. From Rs 163.15 on 20 November, the stock had surged to Rs 191 on 23 November. It had eased to Rs 185.70 by 5 December.

Snowman Frozen Foods is well-known for transporting and stocking ice-creams, fruits, vegetables, and seafood, especially for Hindustan Lever and Amalgam group. Snowman's integrated logistics management comprises the entire spectrum of the supply chain; from procurement to storage and retail distribution. It has pioneered the frozen part cargo service.

For Q2 September 2006, GDL's consolidated profit after tax rose 8% to Rs 21.10 crore, on 6% growth in net sales to Rs 38.17 crore.

GDL which is mainly into container handling, is seen benefitting from an expected strong growth in container traffic in India. GDL started running container trains in collaboration with CONCOR in May 2006.

RIL extends gain

Reliance Industries rose 1% to Rs 1293.50 after an analyst report said the company may produce 60,000 barrels per day of oil as early as 2008, from exploration block KG-D6.

Niko Resources is a 10 percent partner in the block. A report by brokerage CLSA said RIL's recently submitted revised field development plan indicated potential crude reserves of 1.6 billion barrels in the block. It said the oil find was in addition to RIL's previous similar discovery in another exploration block KG-III-6.

The scrip also got boost today from reports that RIL had won two oil exploration blocks in Yemen.

RIL had risen 1.5% on Tuesday to Rs 1280 following unconfirmed reports that it is acquiring Adani Retail. The scrip is now quite close to its lifetime closing high of Rs 1306.05 of 6 November 2006.

The two blocks won by RIL in Yemen are onshore blocks each measuring around 7,500 sq km. RIL is expected to sign a production sharing contract for these two bocks next month.

Meanwhile, RIL has denied talks to acquire Premier Oil of UK.

RIL had said on 1 December, that its hydrotreater plant at Jamnagar refinery, which was partially damaged in a fire on 25 October, has been refurbished and has started functioning.

As far as the acquisition of Adani Retail is concerned, the acquisition if it materializes will provide RIL with a readymade retail infrastructure and real estate to begin operations in Gujarat. Adani Retail has about 54 stores across all formats such as neighbourhood stores, supermarkets and hypermarkets, spread across 15 cities in Gujarat. The company had planned to have about 65 stores by the end of this year. Adani Retail will have a topline of about Rs 200 crore this year.

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