Thread by @StocksAndStoics

Gradual commissioning of various routes of DFC (Dedicated Freight Corridor) of Indian #Railways has started and one company that particularly stands to benefit from this is Gateway Distriparks Limited (GDL).
Ace investor Ashish Kacholia had recently entered this stock.(1/7)

GatewayRail, a subsidiary of GDL, is the largest private container train operator of India.
The company provides inter-modal rail transportation service for EXIM containers between its rail-linked ICDs (Inland Container Depots) & various ports at Mundra,Nhava Sheva,etc.(2/7)

Need for DFC:
Logistics cost in India is very high which is estimated to be around 14% of GDP against the global average of 8% and BRICS (Brazil, Russia,India,China,South Africa)average of 11%. And, it needs to change if India has to become a 5 trillion dollar economy. (3/7)

One of the reasons for it to be high is that road transport has the major share of Logistics in India.
And, transportation of goods through road is expensive in comparison to transportation through railways and waterways. (4/7)

Primary reasons for share of Railway being lower in Logistics mix is delay in delivery of goods.
However, with commissioning of DFC,this is expected to improve & share of railway is expected to go up drastically in overall Logistics mix which should benefit company like GDL.(5/7)

Western DFC is nearing completion in phases & expected to be fully commissioned by CY22.
Rewari-Medan section of WDFC was already inaugurated in January 2021 & commercial trial runs have already started.
Below is the status of various routes on WDFC & EDFC.(6/7)

Post commissioning of WDFC, EXIM (export-import) container volume is expected to clock a CAGR of 20% over FY20-25.
Container corporation (CONCOR) is another company which stands to benefit from this, however it already trades at a high valuation so my bet is on GDL. (7/7)

Some more details here: