The three public sector giants in India’s booming logistics scene should combine to form a multimodal force with global reach, according to an expert group headed by SB Agnihotri, India’s Director-General of Shipping.

A “Logistics Corporation of India” would result from the merger of Shipping Corporation of India, Concor and Central Warehousing Corporation of India, he said.

“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,” Agnihotri told local media this week.

“Such an entity should be able to resolve the problem of ensuring seamless movement of cargo. The idea is to provide an end-to-end transport solution."

He said Concor – which has expressed an interest in a merger and has close links with privately owned Shreya Shipping – and the Warehousing Corporation would be able to provide the landside transport and logistics infrastructure, with SCI offering coastal and international ocean freight services.

“Such services can also be provided by the private sector, but our suggestion is that the public sector should take the lead,” said Agnihotri.

“Ideally, the service should begin this year when Shipping Corporation of India celebrates its Silver Jubilee.”

The orissa government has identified 14 potential sites in India for the development of ports with suitable road and rail connections in anticipation of rapidly growing trade in the coming decade.

State funds will be provided as an incentive to attract private investors.

Source: Cargonews Asia