Indev Logistics wants to start a coastal shipping service using funds to be raised through a public issue in the next two years, according to its Chairman, S. Xavier Britto.

The public issue will also help the company expand in areas such as non-vessel operating common carrier, in which a shipment consolidator or freight forwarder does not own any vessel but functions as a carrier by issuing its own bills of lading or air way bills and assuming responsibility for the shipments.

Investment

The group has invested around $200 million in its various infrastructural facilities such as container freight stations. It will invest another $20 million in the new Free Trade Warehousing Zone (FTWZ) facility near Chennai.

The FTWZ facility set up at J. Matadee Free Trade Zone (Special Economic Zone) at the Mannur village in Sriperumbudur was inaugurated today by George Yeo, Chairman, Kerry Logistics Network, Hong Kong. Kerry is a partner of Indev in India.

FTZW, which is relatively a new concept in India, is a deemed foreign territory with the advantage of free foreign currency transactions, said Britto at the inaugural function.

For example, a company can import products from China and store them at the facility. After doing some value-addition such as barcodes and labelling, the product can be exported to the US without having to pay any duty. However, if the product is to be sold in the Indian market, various duties, including Customs, must be paid.

Global major DHL already has a similar FTZW facility in the same locality.

>raja.simhan@thehindu.co.in

Related Topics