Hyderabad, May 17: Mitsui OSK Lines, the world’s largest shipping and multi-modal transportation company, plans to double its business in terms of volumes in India with the launch of a new direct service between India and China next week, company officials said Tuesday. It also intends to change focus from China to India.
The weekly container service via Singapore will double the volumes to eight percent. Currently India accounts for four percent at 160,00 TEUs (twenty-foot equivalent units).
MOL vice chairman Masakazu Yakushiji told reporters here that a 2,000 TEU capacity ship will link Nhava Sheva port to China.
The ship carrying finished products will stop at Singapore, thus providing Indian exports access to the entire MOL network including the US, Europe and African markets.
Yakushiji, who inaugurated the company’s data processing facility here, said MOL would be shifting its focus from China to India in view of the changes in the Chinese economy.
China currently accounts for 40 percent of MOL’s business but the company is now looking at India as the costs are going up in south China, he said.
‘The lower and labour-intensive work from south China is migrating to western part of the country or to Vietnam and Indonesia. This is a challenge for us,’ he said.
MOL sees India as an important market. ‘We expect high growth in India. We have decided to enhance our services in India,’ said Yakushiji, noting that the country is remarkable strong in imports and that the exports are also dramatically going up.
The Japanese giant also sees bright prospects in India as many automotive companies from Japan are setting up their bases in India.
‘India offers a variety of opportunities in consumer goods, auto parts, energy, raw materials like iron ore and coal,’ he said.
MOL also plans direct services from India to US and Europe. Currently the services are routed through its hub in Colombo. Its also eyeing India’s west coast with a new terminal coming up at Vallarpadam in Kochi.
The firm, which has a fleet of 900 vessels, plans to add 50 more vessels this year. Globally, it clocked $700 million net profit for the fiscal ending March 31. Its net profit soared 358 percent during fiscal 2010 while revenue rose 14.5 percent to $18.6 billion.
Sundeep Sibal, head of West Asia operations of MOL, said the data processing centre at Hyderabad is its second such facility in India. The first centre had come up at Mumbai in 2004.
He said the company invested $5 million in both the facilities. The facility in Hyderabad has a headcount of 250 and it is expected to go up to 500 in three years.
–IANS