In a first, India is trying a foray into the global container shipping business and has entrusted a study to top consultants in the country to suggest a roadmap. This could mark a big shift in India’s ambitions in this massive sector.
The effort will be led by the Container Corporation of India Limited (CONCOR), a leading public sector enterprise in India’s logistics industry, under the Ministry of Railways. CONCOR specializes in containerised freight transportation, operating through a multimodal approach that integrates rail and road services. A total of 66 Container Terminals of CONCOR exist at vantage locations across the country in addition to 380 owned Container Trains, over 48,000 owned 20ft ISO grade shipping containers, and over 4 million square feet of warehouse space in India.
“CONCOR is evaluating the opportunity of foraying into global container shipping business catering to Export Import (EXIM) trade, further augmenting its offering towards its goal to be a complete end-to-end logistics services provider and gain a foothold in overseas market,” said a document accessed by CNN-News18. CONCOR will be assigning an in-depth study to one of three shortlisted consultancy firms — Ernst & Young, KPMG and PwC – to prepare a road map.
South Asia and Middle East will be the first focus areas. The study will address the market opportunity, and its attractiveness, activities and resources needed including financial considerations, and steps needed to establish a competitive presence in the global container shipping industry. The study will also identify strategic market segments and potential routes for service offerings “to enable CONCOR to commence its business as a shipping line,” the document adds.
What will the consultant do?
The consultant is being asked to perform a comprehensive analysis of the shipping industry in India, South Asia, and the Middle east, and globally, with an emphasis on container shipping. The study will also evaluate existing players in the shipping line services sector, identifying market leaders, their strategies, and market shares, as well as maritime laws. “This should eventually, help position CONCOR in the competitive landscape to establish itself in international shipping sector (e.g., partnerships, acquisitions, or independent operations),” the document said.
An operational model will also be devised for CONCOR’s shipping services, like fleet acquisition (new vessels, leasing, or buy-and-lease options), terminal infrastructure, route planning, and seamless logistics integration with CONCOR’s existing network. The consultant will also identify potential risks associated with entering the shipping line business — like fluctuating fuel prices, geopolitical risks and port congestion. The report from the consultant is expected in 2025.
