Jaipur, Dec 29 (KNN) Rajasthan can become a key state to help bridge the widening demand-supply gap of shipping containers in India, a study conducted by the MSME-EPC (Micro, Small & Medium Enterprises–Export Promotion Council) revealed.

The MSME-EPC pointed out that at present India manufactures only 10,000 shipping grade containers per year as against the requirements of 1, 50,000 containers in the next three years.

Currently, the Container Corporation of India (CONCOR) has a fleet of 3,700 containers, but the entire fleet catering to the domestic segment is imported to China. Hence, Rajasthan has a huge potential of becoming a cluster of shipping containers’, the study pointed out.

“While the global shipping container market is growing at a CAGR of 12 per cent, by 2028, it is likely to touch Rs 1.75 lakh crore. India has a shortage of shipping grade containers as a result of which shipping lines often increase their rates phenomenally, severely impacting India’s export/import supply chain and competitiveness of industry,” MSME-EPC said.

To tap the global Rs.1.5 lakh crore market of shipping containers and develop a cluster based manufacturing, Rajasthan has attracted the first manufacturing unit at Bhiwadi which has manufactured in the very first year of establishment 1000 TEUS (Twenty-foot Equivalent Unit) of global standards.

THE MSME-EPC study further observed that a significant increase in maritime shipping on account of an increase in trade agreements across the nations, construction of dedicated freight corridors, and expansion in the export basket of food and beverages, consumer goods, industrial goods, health care and other products.

Speaking about the study conducted, Chairman of MSME-EPC, D S Rawat said the market was expected to further grow because of fast expansion of e-commerce, digitization in container shipping and rising demand for specialised containers, as currently almost 95 percent of trade volume in India was handled by maritime transportation.

Observing the current movement in this industry, Pankaj Kumar, Director of the Bhiwadi based manufacturers said, “40 feet, 42 feet and 20 feet and special containers segments are anticipated to register the highest CAGR. There was a huge shortage of containers and improved logistics.”

Pankaj pointed out that India’s logistic cost is estimated to account somewhere between 13-14 percent of the GDP as against 7-9 percent for developing economies, hence, it is imperative to develop this industry on priority.  (KNN Bureau)