Shreyas Shipping Plans Foray Into Multi-modal Ops

Mumbai, Nov 9: | Updated: Nov 10 2003, 05:30am hrs
Shreyas Shipping is venturing into multi-modal operations within India in a bid to carve out a niche in the local transhipment market. The company plans to initially approach corporates to clear their import and export consignment before entering this segment in a big way.

We are in the process of preparing a detailed business plan for the consideration of the board, Anil Devli, chief executive officer, Shreyas Shipping, said.

However, Mr Devli clarifed that the company was not looking at acquiring a clearing and forwarding agency. We are seeking the assistance of Transworld group which the company belongs to, Mr Devli said. Transworld group has offices in 108 locations throughout India.

Multi-modal operations in India are governed by the Multi-modal Transportation of Goods Act, 1993 involving two or more modes of transport on the basis of a single multi-modal transport contract.

Reduction of logistics costs is one of the important aspects of multi-modal transportation, thereby reducing the overall cost to the exporter and making his products more competitive in the international market.

The company only needs to invest in procuring minimum 300 containers for the multi-modal operations, Mr Devli said. Container prices are in the range of around $1,800 (Rs 90,000 excluding duties), while second-hand containers are available at 50 per cent of the price of a new container.

Mr Devli, however, declined to speak on the projected revenues in the first few years to the company from this segment. He mentioned that the multi-modal transport was a volume driven business and for the company it is at a very nascent stage. Shreyas Shipping has a fleet of six vessels of which three are deployed in the coastal segment.

Increased containerization has resulted in multi-modal transport of goods resulting in reduction in overall transport cost reduction in delays, smoother and quicker movement of, and improvement in quality of services.

Industry sources stated that container trade was the fastest growing segment in Indian shipping, with a 15 per cent CAGR over the last 10 years.