Accuracy Shipping Subsidiary Bags CBIC Clearance for ₹25-Crore Kandla CFS Project
KANDLA / MUMBAI — In a move set to expand its port-adjacent infrastructure footprint in western India, logistics provider Accuracy Shipping Limited has announced that its subsidiary, A.R.S. Terminals (India) Private Limited, has secured a formal Letter of Intent (LoI) from the Central Board of Indirect Taxes and Customs (CBIC). The regulatory clearance authorizes the unit to set up and operate a Container Freight Station (CFS) at Kandla Port, Gujarat.
The planned greenfield terminal entails a capital expenditure (capex) of approximately ₹25 crore. Once fully operationalized, the facility is projected to yield an annual revenue between ₹175 crore and ₹200 crore at peak capacity utilization, marking an eightfold potential asset turnover on initial investment.
Strategic Expansion at India’s Gateway Port
Under the project guidelines, A.R.S. Terminals is working toward a one-year operationalization timeline to commission the container terminal. The facility is being engineered to support a monthly handling volume of nearly 5,000 containers, translating to an aggregate annual handling and storage capacity of around 80,000 containers.
The project’s ₹25 crore outlay is slated to be financed through a balanced mix of debt and internal cash accruals. Company projections anticipate the terminal will generate strong double-digit EBITDA margins as cargo handling scales up, offering operating leverage and higher net yields relative to traditional freight-forwarding arrangements.
The strategic relevance of the location is central to the project’s economics. Kandla Port ranks among India’s primary maritime trading hubs for bulk, liquid, and containerized cargo. With trade corridors demanding faster turnaround times and reduced port congestion, establishing an adjacent CFS allows logistics players to capture value across custom house operations, cargo consolidation, de-stuffing, and multimodal inland transport.
Reversing the Divestment Curve
The regulatory nod represents a turnaround in Accuracy Shipping’s capital allocation strategy regarding A.R.S. Terminals. Originally divested by the parent company in March 2023 at a juncture when the unit generated zero operational revenue, A.R.S. Terminals was brought back into the corporate fold in March 2026.
Accuracy Shipping re-acquired control through an equity share subscription amounting to ₹4.99 crore, establishing a 99.80% majority ownership. Re-absorbing the entity was intended to transform it into an asset-owning infrastructure arm, moving the parent firm away from an asset-light brokerage profile toward infrastructure ownership.
Industry Context and Financial Trajectory
The development comes against the backdrop of changing dynamics in India’s maritime trade logistics. National initiatives under the PM Gati Shakti National Master Plan and the National Logistics Policy have accelerated formalization across port infrastructure, incentivizing third-party logistics firms to manage integrated customs-cleared transit hubs.
Financially, the subsidiary’s operational scale-up could provide a significant top-line boost. In Q1 FY27, Accuracy Shipping reported consolidated revenue from operations of ₹140.80 crore—a 12.4% year-on-year moderation compared to ₹160.70 crore recorded in Q1 FY26. Despite softer headline revenues, the company reported margin resilience across its gross profit and EBITDA metrics, partly driven by recently secured long-term rate contracts with major shipping liners.
Market analysts note that while the ₹25 crore capex will introduce short-term debt servicing commitments before cash flows materialize, the project offers a structural upgrade to the company’s financial model. If construction and commercial clearances meet the one-year milestone, the Kandla CFS is expected to serve as an operational anchor for Accuracy Shipping across western trade routes.
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