Maersk India Pvt. Ltd, a subsidiary of Danish business conglomerate A P MollerMaersk Group, is planning to invest around $25 million (around Rs 120 crore) to set up container depots across the country. The company is also planning to foray into domestic container transportation system and said it is scouting for acquisition opportunity.
Hans Henrik S Hansen, Cluster Manager - Bangladesh, India, Pakistan and Sri Lanka Maersk India Pvt. Ltd said that currently the company operates 1.20 lakh sq. mt. land in Mumbai and 65,000 sq. mt. land in Delhi and the facility in Chennai would be 40,000 sq. mt. while the land is available for 1.22 lakh sq.mt. in Chennai.
The company had invested $12 million in 2009 to create container depots and planning to invest another $25 million over the next three years to set up similar facilities across the country.
In addition to this, the company is looking at setting up container repair centres, cold chains and other infrastructure to support EXIM (Export and Import) containers.
“We would like to offer all the services relating to containers in the country,” said Hansen. Asked whether the company would look at entering into railway transportation system, he said, “Currently the company has a tie-up with Container Corporation of India and we are closely following government’s move on the privatisation of rail industry.”
He added that as part of expansion plan in India the company is also looking at offering logistics solution to domestic customers. “So far we were catering to EXIM customers, now we are planning to enter into domestic logistics solutions and our focus will be on container movement only,” said Hansen.
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Commenting on the business development he said the company had set a target to double revenue from India, which currently is around $50 million (container depot or land side activities) organically. “We are also looking for some good acquisition opportunities,” said Hansen. This would give geographic strength, customers and market segment to the company, he added.
The Chennai container freight station (CFS), which was inaugurated on Wednesday will provide storage and stripping of laden import containers and consolidation of export cargo, said Hansen. The new facility can handle up to 70,000 twenty equivalent units (TEUs) in the first phase, he added.
This new facility will be the fourth CFS for Maersk in India, it has two in Mumbai and one in Dadri.