<p><em>Allcargo is exploring ideal acquisitions in the existing lines of business as part of growth, <strong>CH Unnnikrishnan</strong> reports</em><br><br>Allcargo Logistics Ltd, India's largest private sector logistics company, is planning to enter port management business, one of the fast growing businesses and an integrated line extension of shipping and logistics industry. The company, which is currently focusing on multi-model transport business, container and coastal shipping, project logistics among others, is evaluating options to become a serious player in this new area of business both in the country and abroad.<br><br>Being a fully integrated logistics and shipping company, it can leverage lot of synergies from its existing business verticals including people, equipment project logistics, shipping and its expertise in the entire supply channel management and transportation for the new business, said Allcargo founder and chairman Sashikiran Shetty, in an exclusive interview with BW.<br><br>The company, which has a comfortable cash flow and healthy balance sheet, is also exploring ideal acquisitions in the existing lines of business as part of growth.<br><br>“But nothing to share at the moment,” Shetty said. <br><br>Port management is actually a combination of transportation, goods handling and storage, ship operations and safety management. Ports usually deal with a number of disparate activities like the movement, loading and unloading of ships, containers, and other cargo; customs activities as well as human resources. Port management is a necessary position required to keep ports organized, supervised, and functioning.<br><br>“It’s a complex mixture of all our existing expertise and assets, thereby an advanced extension of the existing business, ” says Shetty. <br><br>Targeting to be a billion dollar company by 2020, the 32 year-old Allcargo currently operates in several countries including Belgium, where its parent organisation is based, and employs some 8000 people. . <br><br>Allcargo, as part of expansion in its coastal shipping business, had last week expanded its fleet by acquiring two new vessels aggregating 24000 deadweight tonnage (DWT). Post this acquisition Allcargo now owns a total of five cargo vessels making it one of the largest players in the logistics industry. The additional vessels will help Allcargo to cater to the growing requirements not only of coastal shipping but regional trade and commerce as well, the company said.<br><br>Expansion of coastal shipping services is a strategic move by Allcargo as the country has over 7,000 km of coastline. Considering India's demography and strategic location as a global trade hub, the coastline will play a major role in coastal shipping services which lead to efficient, cost effective and time saving mode of cargo transport. With the government increasing its focus on decongesting the exiting road and rail network, coastal shipping will play a pivotal role in India’s growing economy.<br><br>“As an organisation, we believe that India’s economy will need a more efficient and time saving mode of transportation, to keep pace with its growth," Shetty had said earlier.<br><br>"Coastal shipping is the solution for this opportunity. We are helping our customers to create logistics solutions through coastal shipping, making their cargo movement more seamless and cost effective,” he added.<br><br>Allcargo currently specializes in moving bulk, break bulk, containerized and project cargo under its coastal shipping business. With many companies realizing the benefits of cargo movement through coastal route, Allcargo is well placed to lead the space and provide best in class services. Allcargo is also a leader in CFS and ICD operations pan India with six facilities as well as a leader in the project logistics and equipment hiring space.</p>
