Plan for multi-modal venture by 3 logistics PSUs

There is a proposal for a ‘Logistics Corporation of India' to be created jointly by three public sector undertakings.

Shipping Corporation of India, Concor and Central Warehousing Corporation of India will be the equity partners in the multi-modal joint venture logistics company, according to the proposal made by an expert group headed by the Director-General of Shipping, Mr S.B. Agnihotri.

The proposed corporation will provide integrated transport services.

“We have suggested that a ‘Logistics Corporation of India', as an integrated entity, could be set up with the three pubic sector corporations as partners,” Mr Agnihotri told Business Line .

Such an entity should be able to resolve the problems in ensuring seamless movement of cargo. The idea is to provide an “end-to-end transport solution,” said Mr Agnihotri.

Concor and the Warehousing Corporation can take care of the rail and road segments of the chain and Shipping Corporation can provide the shipping link.

“Such services can also be provided by the private sector, but our suggestion is that the public sector should take the lead. Ideally, the service should begin this year when Shipping Corporation of India is celebrating its Silver Jubilee,” said Mr Agnihotri.

In fact, the Shipping Corporation Chairman, Mr S. Hajara, had said in an interview earlier that his vision is to see that SCI becomes a total logistics solutions provider.

Mr Anil Gupta, Managing Director, Concor, said the corporation welcomes such a proposal and is keen to expand its integrated services.

Concor already has a tie-up with the Mumbai-based private shipping line, Shreya Shipping, for movement of containers.

The proposal to set up a ‘Logistics Corporation of India' is part of the recommendations made by the group on the development of coastal shipping. The group, set up on the advice the Shipping Minister, Mr G.K. Vasan, had submitted its report to the Government last month. It had also suggested service tax relief to coastal shipping service operators on a par with road transport operators.

According to the group, coastal shipping needs to be developed as part of a logistics chain. A major reason for the tardy development of coastal shipping in India is the absence of connectivity between road, rail and ports. Currently, coastal shipping accounts for less than 10 per cent of the domestic cargo.

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