While domestic transport is well-developed in countries like China (220,000 vessels deployed in coastal and inland waters + more than 600,000 rail wagons) and USA (40,000 vessels deployed + more than 1.7 million rail wagons), India has significantly lagged behind, with a national fleet of fewer than 500 vessels and 220,000 rail wagons. With continuing growth of domestic cargo movement expected to exceed 18% per annum, numerous logistics companies have focused on service-oriented 3PL activities. By contrast, recognizing that shortage of physical assets is the primary impediment to transport sector growth, Jindal ITF is developing major new operations focused on 1PL logistics - the basic business of owning and operating transportation assets - with the longer term objective of creating value by adding services to a robust business based on ships, rail wagons, containers, and the ports and terminals required to service them.
With this objective in mind, the group has floated two ventures: