State-owned ports, including V.O. Chidambaranar Port Authority, Chennai Port Authority, and Kamarajar Port Ltd are likely to be inducted as minority equity partners in the proposed Bharat Container Shipping Line—an initiative led by Shipping Corporation of India Ltd (SCI) and Container Corporation of India Ltd (CONCOR), according to multiple sources.
SCI and CONCOR, both ‘Navratna’ public sector enterprises, will serve as the major equity holders in the new joint venture, while the three ports will join as minority stakeholders. Kamarajar Port Ltd—India’s only corporatised state-owned port—is fully owned by Chennai Port Authority.
A government official familiar with the discussions said that talks between the Ministry of Ports, Shipping and Waterways and the Ministry of Railways are progressing. “In a fortnight, the equity partners will be finalised, and a memorandum of understanding will be signed. Following this, a detailed business plan for the container line will be prepared,” the official said.
Capitalising Port Surpluses
The move to include major ports as equity partners is aimed at utilising their surplus cash reserves, sharing operational and financial risks, and building a well-capitalised national container shipping line. Currently, VOC Port Authority and Chennai Port Authority do not pay dividends to the government due to their authority status, while Kamarajar Port’s dividends flow to Chennai Port Authority.
Under the proposed structure, SCI will charter vessels from the market to operate the new line, while CONCOR will provide containers, its vast fleet of container trains, and inland logistics infrastructure.
CONCOR’s Infrastructure Backbone
CONCOR brings significant assets to the table, including:
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A network of 66 terminals comprising ICDs, CFSs, and DCTs
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Around 410 owned container trains
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Some 56,000 ISO-grade containers
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Over 4 million sq ft of warehousing space
The PSU also holds stakes in key terminals: 26% in Gateway Terminals India at JNPA and 15% in India Gateway Terminal at Vallarpadam, Kochi. It has signed MoUs to operate the upcoming container terminal at Bhavnagar Port and manage the rail yard at the Vadhvan mega port.
CONCOR’s Overseas Push
CONCOR has recently expanded into international shipping by deploying its own containers to the Middle East under an MoU with a Dubai-based firm. “We have made a serious foray into the shipping sector,” CMD Sanjay Swarup told analysts. “About 200 containers have already been sent to the Middle East, and most have returned loaded. We are also in talks to start services to the Far East,” he said, adding that the segment is generating margins exceeding 30%.
A National Carrier After Decades
With 99% of India’s EXIM container cargo currently carried by foreign shipping lines such as MSC, CMA CGM, Maersk, and Hapag-Lloyd, the absence of a strong national container carrier has long been a concern for exporters. SCI, India’s only mainline container operator, currently owns just three container vessels—SCI Delhi, SCI Mumbai, and SCI Chennai.
The establishment of the Bharat Container Shipping Line aims to address this long-standing gap and reduce India’s heavy dependence on global carriers for its containerised trade. (Source: ET Infra)
