A
What happened
State-owned Shipping Corporation of India (SCI), Container Corporation of India (CONCOR), Sagarmala Finance Corporation Ltd, Jawaharlal Nehru Port Authority, Chennai Port Authority and VOC Port Authority are set to create a joint venture container shipping line called Bharat Container Line, according to people aware of the development. SCI and CONCOR will each hold 30%, Sagarmala Finance Corporation will hold 20%, Jawaharlal Nehru Port Authority will hold 10%, and the remaining 10% will be split equally between Chennai Port Authority and VOC Port Authority. The partners are expected to sign a memorandum of understanding in the next few days. The move targets India’s heavy reliance on foreign shipping lines, which carry about 99% of India’s export-import container trade by volume. SCI, described as India’s only mainline container ship operator, currently owns three container ships.
Why it matters
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Ownership structure is led by SCI and CONCOR: SCI and CONCOR are planned as the largest shareholders at 30% each, with Sagarmala Finance Corporation at 20% and three port authorities sharing the remaining 20%.
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Policy goal is to reduce foreign dependence in container shipping: The initiative is positioned as a response to foreign carriers handling about 99% of India’s export-import container trade by volume and exporter concerns about lacking a national container carrier.