The move is aimed at preparing for a liberalised Coastal Shipping regime, where foreign-flagged vessels will be allowed to operate in the domestic waters
MUMBAI: Mahindra Logistics is preparing to enter the sea transport segment through partnerships and is in talks with two European liners for a tie-up, a top company official has said.
The move is aimed at preparing for a liberalised Coastal Shipping regime, where foreign-flagged vessels will be allowed to operate in the domestic waters. "As soon as the waterways become lucrative enough or kind of cost benefit, we will go to the asset owners and make our business partners. That's our model...this would be a tie-up with a shipping line," Chief Executive Pirojshaw Sarkari said recently.
He said the company, which is already into the roads and rail sector, has spoken to two European companies which are not averse to allocate vessels if the business model gets developed. He did not name the companies though.
That the Shipping Ministry is favourably looking at reviewing the Cabotage law is a good beginning, Sarkari said and his company is working overtime to be ready for the big policy change.
Under the present Cabotage laws, foreign flagged vessels are not allowed to operate in the domestic sector. But having understood the importance of sea transport in bringing down cost of logistics, Government is serious on liberalizing these norms, according to reports.
When asked about possible time-lines for entering the new segment, Sarkari said there will be "regular movement" of cargo through the sea from next year.