Riding Strong Volumes

A strong recovery in volumes and return of pricing power have led to the outperformance of Gateway Distriparks (GDL) in its third-quarter results. Despite COVID-19-related disruptions in the first half of 2020-21, the company has witnessed a strong comeback with a sharp recovery in its overall volumes for both verticals - Container Freight Stations (CFS) and Rail Container (RC) business. For the third quarter ending December 2020, it has registered the highest monthly throughput of 25,676 Twenty-foot Equivalent Unit (TEU) in RC business. Similarly, CFS witnessed a close-to-peak business with 30,085 TEUs. “The company expects a boost in volumes with the 306km-long stretch between Rewari and Madar being inaugurated on Jan 21. The management expects rail throughput of 25,000 TEU a month versus the current 21,000 TEU,” says an analyst with HDFC Securities. GDL, which is one of...