Maersk’s In­dia Unit to Ex­pand Op­er­a­tions

The Economic Times - - Companies: Pursuit Of Profit - Anir­ban.Chowd­hury @times­

Mum­bai: The In­dia unit of Maersk Line, the world’s largest con­tainer ship­ping com­pany, is ex­pand­ing its cargo-ship­ping role in the coun­try to es­tab­lish it­self as a provider of end-to-end sup­ply chain so­lu­tions that would in­clude doorstep de­liv­ery. “One no­tice­able change we have al­ready seen in In­dia is that we are closely work­ing with our cus­tomers to ex­e­cute more and more of the sup­ply chain,” Steve Felder, the In­dia head of Maersk, told ET. Felder has re­cently been ap­pointed man­ag­ing di­rec­tor for the Dan­ish con­glom­er­ate’s op­er­a­tions in In­dia and five other neigh­bour­ing mar­kets.

A big­ger role for Maersk in the sup­ply chain would mean the com­pany’s in­volve­ment in the road and rail­ways legs of ship­ments for im­porters, and de­liv­er­ing con­sign­ments at fac­to­ries or ware­houses.

Felder said the fo­cus on al­lied ser­vices, which the com­pany out­sources to third par­ties, has in­creased in the past six months. The strat­egy is in line with par­ent A.P Moller Maersk Group’s plans to fo­cus on its trans­port op­er­a­tions while seek­ing al­liances or a sep­a­rate list­ing for its en­ergy divi­sion, as ar­tic­u­lated last Septem­ber by chief ex­ec­u­tive Soren Skou.

“In­stead of just do­ing a port to port busi­ness, Maersk is go­ing the ex­tra mile in de­liv­er­ing to in­land con­tainer de­pots or even the cus­tomers’ premises,” said Felder.

Two weeks ago, Maersk de­liv­ered a re­frig­er­ated ship­ment to an ICD in Sonepat, Haryana for Dev Bhumi, a lo­cal cold chain oper­a­tor. It also de­liv­ered a ship­ment right up to the premises of con­fec­tionery com­pany Per­fetti Van Melle.

Felder called them “com­pre­hen­sive ways to in­crease rev­enue and cre­ate more value propo­si­tion for cus­tomers.”

He said the next step would be more re­gions in more cor­ri­dors in In­dia. In June, it in­tro­duced a di­rect, time-guar­an­teed rail route be­tween In­dia’s Visakha­p­at­nam port and the Bir­gunj In­land Con­tainer De­pot in Nepal.

The rail link is meant to feed cargo for Maersk’s in­tra-Asia Chennai Ex­press (CHX) ser­vice call­ing at Visakha­p­at­nam and will cut tran­sit times for cargo mov­ing to and from Nepal by half, from 14 days via Kolkata to seven days, the com­pany said.

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