Shreyas to foray into logistics

Shreyas Shipping, the Mumbai-based coastal shipping company, is planning to foray into multimodal logistics. It has earmarked Rs 350 crore for the expansion.

The company will also change its name to Shreyas Shipping & Logistics to reflect the new logistics business in its portfolio. "The company will now position itself as a multimodal logistics operator, with functions in warehousing, packaging, repackaging, consolidation and distribution," Anil Devli, chief executive officer, Shreyas Shipping, said.

Shreyas Shipping would consolidate the cargo at its warehouse locations and distribute after packaging or repackaging. This diversification into logistics activities would derisk the company from just focussing into shipping business, analysts said.

Devli said the company would focus on organic growth and spend over Rs 350 crore for spreading logistics operations and acquiring container vessels.

"We have already acquired 25,000 sq mt land in Kandla in Gujarat for setting up a logistics park. We will soon finalise the location in Delhi-Ludhiana region for northern India while Tuticorin-Kochi belt is an option for south India for setting up logistics parks," Devli said.

The company would set up four logistics parks in key centres of the country to handle simple and complex logistics operations. It is planning to acquire three container vessels with capacity ranging from 600 to 900 twenty foot equivalent units (TEUs).

"Currently, the prices are rising. We expect them to be steady in the next two-three months," Devli said. On the Mumbai-Karachi service plans, he said the company would take a decision after the India-Pakistan Shipping Protocol of 1975 is amended.

The amendment is expected to scrap the restrictions of an Indian or Pakistan flag calling ports of both countries.