Aegis Logistics Limited announces that its wholly owned subsidiary, Sea Lord Containers Limited (SCL), has entered into a Framework Agreement with Konkan Storage Systems (Kochi) Private Limited (KCPL). Under this agreement, SCL will undertake the construction of storage tanks for liquid products with an aggregate capacity of 49,577 cbm, along with associated facilities. The total value of the framework agreement is ₹37.17 crore, payable upon execution.
Framework Agreement for Storage Capacity Expansion
Aegis Logistics Limited has disclosed a significant development concerning its subsidiary, Sea Lord Containers Limited (SCL). SCL has executed a Framework Agreement with Konkan Storage Systems (Kochi) Private Limited (KCPL) for the construction of essential storage infrastructure. This agreement marks a substantial step in expanding storage capabilities for liquid products.
Key Project Details
The core of the agreement involves SCL engaging in the construction of storage tanks designed for liquid products. The projected aggregate storage capacity from this project is an impressive 49,577 cubic meters (cbm). In addition to the tanks, the scope includes the development of associated facilities crucial for operations. These facilities encompass truck loading bays specifically for petroleum products, a tanker loading gantry, and the installation of a carbon steel (CS) pipeline. This comprehensive development is expected to significantly enhance logistical efficiency and capacity.
Financial Commitment and Relationship
Upon the execution of the Framework Agreement, SCL is set to receive a payment of ₹37,17,00,000/- (Rupees Thirty-seven crore seventeen lakhs only) from KCPL. This financial transaction underscores the scale and importance of the construction project. The announcement also clarifies the relationship between the parties involved: KCPL is a wholly owned subsidiary of Aegis Vopak Terminals Limited (AVTL), for which Aegis Logistics Limited serves as a Promoter Company. SCL itself is a wholly owned subsidiary of Aegis Logistics Limited. The transaction between SCL and KCPL has been confirmed to be conducted on an arm’s length basis.
Source: BSE
