The Indian government is advancing plans to establish Bharat Container Shipping Line, marking a significant move into the global container shipping industry. This initiative involves a partnership between two 'Navratna' public sector enterprises: Shipping Corporation of India Ltd. (SCI) and Container Corporation of India Ltd. (CONCOR).

The primary goal is to reduce India's heavy reliance on foreign shipping lines, which currently handle approximately 99% of the nation's export-import container trade by volume. By establishing a national carrier, India aims to enhance its strategic autonomy in maritime logistics and better compete with global giants like Mediterranean Shipping Company (MSC), CMA CGM, and Maersk Line.

Under the proposed framework, SCI will be responsible for chartering vessels to operate the new line, while CONCOR will supply containers and leverage its extensive network of container trains and inland terminals to manage cargo movement to and from ports.

This collaboration aims to create a seamless logistics chain, enhancing efficiency and competitiveness.

Plans also include involving additional partners such as India Ports Global Ltd. (IPGL) and major state-owned ports like Jawaharlal Nehru Port Authority, India's second-busiest container gateway. This expansion seeks to bolster the consortium's capabilities and reach.

CONCOR has engaged KPMG Advisory Services Pvt Ltd to conduct a comprehensive study and develop a strategic roadmap for entering the global container shipping sector. The consultancy will identify potential strategic partners, assess market entry strategies, and design operational models to ensure a successful launch and sustainable operations.

The government has tasked SCI with finalizing the partnership with CONCOR within six months, underscoring the project's importance and the urgency attributed to enhancing India's maritime infrastructure.

By establishing Bharat Container Shipping Line, India aims to strengthen its position in the global shipping industry, reduce dependency on foreign carriers, and provide more reliable services to its exporters and importers.

Source: Logistics Insider

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