The report suggests that the Shipping Corp. of India (SCI), Container Corp. of India (Concor) and the Central Warehousing Corp. of India are planning to create a new state-owned entity — the Logistics Corp. of India — with all three partners taking equity stakes.
The formation of the new logistics unit would be aimed at providing shippers with an end-to-end focused business that does not exist among the government's various cargo operations. SCI is focused on ocean transportation, while Concor is responsible for freight rail and the Central Warehousing Corp. road transport.
Private logistics companies — both domestic and international — already provide these services, but often lack the scale the government offers through its state-owned entities. And lack of connection between ocean, rail and road services is cited as a primary reason why logistics costs in India run high.
Details about the new unit — like a timetable for its formation and where it would overlap with SCI and Concor — are scarce, but the shipping ministry is behind the idea, the report said.
