Logistics – FACOR Secures Initial Railway Approval for Rs 100 Crore Cargo Terminal Project
Logistics – Ferro Alloys Corporation Ltd. (FACOR) has taken an important step toward strengthening its industrial operations after receiving in-principle approval from the East Coast Railway (ECoR) to convert its existing railway siding into a Gati Shakti Cargo Terminal at Shreeramnagar in Garividi mandal. The proposed development is expected to improve cargo handling capacity while supporting the company’s long-term recovery plans.
Cargo Terminal Project Receives Preliminary Clearance
The company has proposed an investment of Rs 100 crore to upgrade its railway facilities under the Gati Shakti Cargo Terminal initiative. Planned over a four-year period, the project aims to replace the existing siding with a modern cargo terminal designed to support efficient freight movement. The approval granted by East Coast Railway is preliminary and will become effective after the company submits a detailed feasibility report, updated engineering plans, and all required documents that meet Railway Board standards and operational guidelines.
Modern Infrastructure Expected to Benefit Regional Industries
FACOR President Vinodh Saraf described the approval as a significant milestone for the company and the surrounding industrial ecosystem. According to him, the proposed terminal will be developed as a multi-user cargo facility with upgraded railway infrastructure capable of serving not only FACOR Alloys Limited but also several industries operating across Vizianagaram district and nearby areas. He added that improved rail connectivity is expected to streamline freight movement, lower transportation expenses, and contribute to broader industrial growth across the region.
Project Aims to Improve Freight Movement
Once completed, the cargo terminal is expected to enhance railway logistics by allowing industries to move raw materials and finished products more efficiently. Better infrastructure could reduce transit delays and improve supply chain reliability, making rail transport a more attractive option for manufacturers and businesses operating in the area. The project also aligns with efforts to strengthen freight infrastructure through modern logistics facilities.
Company Looking to Strengthen Operations
FACOR’s latest infrastructure initiative comes after the company experienced a prolonged period of financial pressure. Over the past 15 years, the ferro alloys producer has dealt with changing market conditions along with increasing costs for raw materials and electricity, both of which affected its operational performance. These challenges gradually reduced production levels and placed additional strain on the company’s finances.
Workforce Reduced During Challenging Years
As part of its efforts to manage rising costs, the company announced workforce reductions on multiple occasions during the past decade. Alongside the downsizing, production activities were also scaled back over time. At present, FACOR employs 56 permanent staff members, 120 contract workers, and around 460 outsourced and daily wage personnel. The proposed cargo terminal project is viewed as an important infrastructure investment that could support future business growth while improving operational efficiency and strengthening the company’s position in the region.