The Hindu Business Line : Cargo-Partner AG launches subsidiary in India

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Kolkata Jan. 30 The Austria-based Cargo-Partner AG, one of Europe's privately owned global logistics company with widespread activities in eastern and central Europe, has launched its wholly-owned Indian subsidiary, Cargo Partner Logistics India Pvt Ltd (CPLI).

Headquartered in Kolkata, CPLI has opened nine branches in different locations in the country, employing 60 professionals.

More branches

"We have plans to open five more branches and recruit another 80-90 people and hope to post a turnover of Rs 100 crore in 2007-08," Mr Aloke Sinha, Managing Director of CPLI, told newspersons here on Tuesday.

"Air cargo and ocean freighting will have almost equal shares," he said.

Mr Stefan Krauter, Chairman of Cargo-Partner AG, exuded optimism about the business prospects in India. "We are looking at big market opportunities in India," he said.

He conceded that the logistics scene in India was witnessing intense competition but that would be no cause of concern to CPLI. While India holds out opportunities, poor port development and not-so-satisfactory inland infrastructure, in his opinion, continue to cause concern. The high rate of taxation too acts as a disincentive. He, however, felt that the Government was alive to these issues and would take necessary measures in due course.

Mega box ships

The emergence of mega container ships, Mr Krauter felt, would change the world's shipping pattern, with only a handful of ports being capable of handling such ships.

In Europe, he is not sure if any port other than Rotterdam would be in a position to handle these ships. As a result, many of the present 4,000-TEU/5,000-TEU vessels would be free for operation on the shorter routes, for example, India-Mediterranean sector. Black Sea ports too would emerge important with Hungary and Austria handling a lot of container traffic.

Eco protection

Another area, which receives attention is the environment protection issues. "We're talking to Brussels to change the legal conditions under which we're now operating", he said.

Replying to the criticism that Cargo-Partner arrived in India late, its Executive Director, Mr Gerd Richter, said that the company had been operating in the country for a long time through agents and did business worth about $7.5 million annually.

"With the launching of the fully owned Indian subsidiary, the agency arrangement will go," he said.