Seatrade Maritime: India’s Bharat Container Line moves a step closer to reality

Rail operator Concor and the Shipping Corporation of India (SCI) will be the major shareholders in the newly established container line with a host of secondary investors from the port sector.

Seen as a strategic investment to meet India’s needs as a developing manufacturing hub all the investors will be government controlled companies, with SCI and Concor designated as so-called navratna companies, being the major shareholders. Navratna translates as nine gems and is used to describe high performance and well managed Indian firms.

Government owned port companies, including Chennai Port Authority, Kamarajar Port and Tuticorin’s VO Chidambaranar Port Authority are expected to hold minor equity stakes in BCL.

India’s Economic Times quoting a government source said: “Discussions are going on between the Ministry of Ports, Shipping and Waterways and Ministry of Railways to set up the container line.”

The source added that the equity partners will be finalised by the end of next week, and “a Memorandum of Understanding will be signed by the equity partners after which a business plan will be prepared for the container line”.

SCI is expected to charter vessels while Concor, will provide the 56,000 teu container fleet and manage the inland logistics. Concor operates 66 terminals including inland container depots container freight stations and domestic container terminals.

In addition, the logistics company operates over 400 container trains, with more than 370,000 square metres of warehouse space that is expected to play a key role in the movement of cargo.

According to local reports the government owned ports are required as equity partners with the aim of “sucking out surplus cash from these ports, to share the risks and make it a well-capitalised company”.

VesselsValue data confirms that SCI currently owns and operates three container ships, the 9,000 teu SCI Delhi, built in 2014 is on charter from German owner Deomar Schiffahrts: the 2008 built SCI Mumbai, which has a capacity of 4,460 teu and the SCI Chennai also has a capacity of 4,460 teu. All three ships were built in South Korea, Chennai and Mumbai are SCI owned.