The country's top shipping and logistics corporations are coming together as part of their strategy to take on international port operators like Dubai Ports and the Port of Singapore Authority.
State-owned Shipping Corporation of India is in the process of roping in other public sector majors like Container Corporation of India (Concor) and Central Warehousing Corporation to jointly bid for the Rs 5,000 crore fourth terminal project at Jawaharlal Nehru Port Trust.
This alliance is likely to form a special purpose vehicle and bring in global expertise by tying up with the world's second-largest container shipping line, Mediterranean Shipping Company SA.
Shipping Corporation of India Chairman and Managing Director S Hajara confirmed the development but declined to divulge details. Concor and Mediterranean Shipping Company executives also confirmed this move.
"The public sector companies, along with Geneva-based Mediterranean Shipping Company and its affiliate companies, are likely to sign a formal agreement in this regard. Apart from Mediterranean Shipping Company, more shipping companies are likely to join this alliance," said sources close to the development.
"It is more or less agreed that this public-private alliance will jointly bid for other upcoming container terminal projects in the country. The alliance may also look at overseas business opportunities if everything goes well," sources added.
Industry analysts said this alliance would share excellent synergies in shipping, port operations, warehousing, container rail transport and other logistics aspects.
Concor provides the only means by which shippers may obtain containerised freight transportation by rail in India while Central Warehousing Corporation is one of the largest public operators with 517 warehouses across the country with a storage capacity of 10.3 million tonnes.
Expressions of interest had been submitted by 41 players, including Shipping Corporation of India, for the fourth container terminal at Jawaharlal Nehru Port Trust, which handles 58 per cent of the country's container traffic. The proposed terminal's berth will be 2 km, which will make it the largest container terminal in the country.
Other players who have shown interest in this project include Mukesh Ambani-controlled Reliance Logistics, Anil Ambani's Reliance Energy, Tata Power Company, Essar Construction, Larsen & Toubro and Rajiv Nambiar-promoted Hindustan Infrastructure Projects & Engineering.
Global shipping and port giants, including Hutchison Port Holdings, Zim Ports, Evergreen, CMA CGM Global, APM Terminals, Port of Singapore Authority and Dubai Ports, are keen to secure this build-own-transfer project.
