Accuracy Shipping Subsidiary Secures LOI for Kandla Logistics Facility

• Project Capacity: 80,000 containers annually
• Estimated Revenue: Rs 175–200 crore

Reader Takeaway: New container station strengthens logistics footprint with Rs 25 crore investment and significant peak revenue potential.

What just happened

Accuracy Shipping Ltd announced that its 99.80% subsidiary, A.R.S. Terminals (India) Private Limited, received a Letter of Intent (LOI) from the Central Board of Indirect Taxes and Customs (CBIC) on September 10, 2026. The approval allows the firm to establish a Container Freight Station (CFS) at Plot No. 7, Sector 10B, Kandla, Gandhidham, Gujarat.

Why this matters

The facility is strategically located to boost the company’s container logistics and cargo-handling capabilities in a high-traffic maritime region. Management expects the project to reach operational status within one year, significantly enhancing the firm’s operating leverage as utilization ramps up to a target of 5,000 containers per month.

Financial Projections

The company has earmarked Rs 25 crore for capital expenditure, which will be financed through a mix of debt and internal accruals. The facility is expected to generate peak annual revenue between Rs 175 crore and Rs 200 crore, with management projecting double-digit EBITDA margins.

Management Commentary

Chairman & Managing Director Vinay Tripathi highlighted the facility as a significant milestone, noting that the expanded capacity will support the company's long-term growth and margin improvement goals.

What to track next

Investors should monitor the project’s construction timeline over the next 12 months and updates regarding the commissioning of operations at the Kandla site.