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Maersk Line India bets on hinterland

Maersk Line India has 56 inland points along with several terminals in India, Bangladesh and Sri Lanka

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Maersk Line India plans to start five inland container depots (ICDs) in Gujarat, Rajasthan and National Capital Region apart from introducing container tracking system on a pilot basis in India.

Speaking about the company’s plans for India, Bhavik Mota, head - trade and marketing, Maersk Line (India, Sri Lanka, Bangladesh, Nepal, Bhutan and Maldives) said, “The consumption and infrastructure development along with the investments is fuelling significant growth in Indian hinterland. With 800 million people residing in the hinterland, India is market with both scale and growth. The government initiatives in trade facilitation like Make In India, Ease of Doing Business, etc, show sign of volume growth and we expect this to continue. Also, we are seeing increasing demand from the Indian hinterland from our customers.”

Maersk Line India has 59 inland points along with several terminals in India, Bangladesh and Sri Lanka.

India as a country has 56% containerisation vis-à-vis around 75% containerisation in the developed economies. Hence, there is a room for increasing containerisation from bulk cargo from the Indian hinterland.

Containerisation is the process of sending bulk material via containers.

The company had recently started a new container depot in Pune, Maharashtra. Now, it is also evaluating to develop business around Sonepat in Haryana and Kathuwas in Rajasthan as these will become consolidation points and market hubs with the Dedicated Freight Corridor coming up soon.

“There’s Pali (Rajasthan) in North India; we are seeing on how we can do it there. Then there is Pyala (near Faridabad in Haryana) where we are actively looking at what we can do more. Last week, we started an acceptance point for import as well as export at Jakhwada (Gujarat), so this is one of the new inland container depot points of ours,” said Mota. Capital expenditure will be incurred by the strategic vendors operating at each of the ICDs.

The shipping company already operates freight trains between Pipavav in Gujarat and Dadri in UP and Vizag (Andhra Pradesh)-Birgunj (Nepal). “We are looking at to expand this to key routes around the country,” said Mota.

As per Container Corporation of India’s annual report, 19% container volumes move on rail from the hinterland to the various ports on Indian peninsula.

Maersk Line India’s market share from the hinterland is almost 20% on an aggregate. The company states that the growth potential is more from the hinterland, particularly North-West regions of India, as compared to the coastal regions.

Secondly, “We are investing in real-time visibility and digital tracking of containers through software systems. If we want to provide end-to-end solutions such a system is needed and can’t rely on manual modes,” Mota said DNA Money.

Starting next month, trials of different kinds of software systems will commence for around a quarter in India and Turkey. If the trials are successful, the better tracking system will be introduced in other countries wherever it has an inland business, in a phased manner. In other words, during FY19 the system will be in place around the globe. The existing system does not have track and trace feature.

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