FDI Inflows to Sea Transport

FDI Inflows to Sea Transport are important for the development of freight transportation, which in turn would help in providing the industries and other manufacturing sector with a cost effective transportation system. FDI inflows to sea transport were increased to 100% from 74% by the Indian government.

FDI Inflows to Sea Transport-Glimpses

The FDI Inflows to Sea Transport has made significant changes in the shipping industry. The sea transport or shipping is one of the most common mode of transportation for heavy and bulky materials or products, such as metal ores, food grains, crude oil, other petroleum products, steel, other metals, etc.

The sea transport is also important for the container services used by the logistics industry. A number of major global shipping and logistics companies have commenced operation in the Indian Sea Transport sector.

FDI - Logistic Sector

The logistic sector in India comprises of small-scale firms. With the foreign players entering the logistic market, in the future it is likely that a few major logistic companies would commence business in India. The deals pertaining to the foreign direct investments are signs of the beginning of a new era in the sea transport sector in India. The logistics sector has huge scopes in the near future. The sector was unorganized but with the foreign players entering the market it is expected to transform itself.

FDI in Sea Transport - New ventures

The Central Government, Ministry of Shipping, has allowed 100 % foreign direct investments in the sea transport sector. Previously 74 % of the FDI in the sea transport was allowed through the automatic route. The French company GeoPost Intercontinental, a major global shipping company, bought 60 % of the share of the Delhi-based Continental Air Express. The Clearstone Venture, a venture capital fund has bought 35 % of the shares of the Elbee Express, a Mumbai-based courier company. The private equity players, JP Morgan and IDFC are trying to obtain a small share in the in the Hyderabad-based sea transport firm, Seaways. The deal would be valued at ` 250 crores.

Last Updated on 4/23/2011