Container Manufacture and Atmanirbhar

Recently I read this article where it is mentioned a company is giving a trial order to make Marine Containers at Bhavnagar in Gujarat. The link is given below.

https://www.thehindubusinessline.com/economy/logistics/cargo-container-manufacturing-hub-planned-at-bhavnagar/article33378963.ece

At the same time there are lot of reports in business papers that exports are being held up because of shortage of containers in Indian Ports and Inland Container Depots . This has also added to the clamor of making marine freight containers in India.

There are two aspects to the issue of container manufacture . The first one is about container buyers. With so little freight lifted by Indian shipping lines they cannot be the target market for container manufacturers. Containers are provided to exporters globally by shipping lines and lines either own them or lease them from leasing companies. Today approximately a dozen shipping lines  in global trade and they are transnational.  They have their own economics in purchase of containers and not necessary price or availability in India alone. Movement of empty containers around the world by itself involves complex logistics and systematic optimization . To quote an example a shipping line requiring containers to load exports from Mumbai may not buy containers from a Mumbai based manufacturer but my prefer to move empties from Dubai or Middle East where containers might have piled up after discharging empties and incurring ground rent.

Marine Freuight containers are specified by ISO code 6346 and derivatives . The ISO code gives

description, material specifications , types and sizes.In addition containers have to be of CSC ( Container Safety Convention ) standards . Having said all these I have to throw back to first half of 1980's when the containerisation of Indian foreign trade in general cargo earnestly started . The same frenzy of atmanirbhar and also a sunrise opprtunity bug bit some companies who wanted to start container manufacture to feed Indian lines at Indian Ports There was also a move to start an Indian Leasing Company and a consultative group was formed ( of which I was also a member) by GOI .This resulted in forming Indian Container Leasuing company.

At least four companies entered container manufacturevthen - Him containers at haldia, DCM Hyundai at Chennai, Nathani steel at Mumbai and Balmer Lawrie at Cochin. Each of these factories were licenses and planned for 5000 container per annum , as marine containers for international trade these units were given 100 per cent EOU sytatus .When these factories started production they found that no componenet of the container whether steel plates or astructural steel or cast steel corner blocks or door gaskets floor boards and even corrosion prventive paint had to be imported . These factories were just fabrication , welding an dpainting plants . Though imports were duty free and exports had incentives the logistics costs of imports and the small size of plants made these uneconomkcal and these plants closed in a few years .

Compare the size of this plant to 2 million Container capacity of the Chinese compnay mentioned in the news report above . China plants today have very high automation using robotic manufacture .Obvioulsy they became suppliers to the world .

I think over last 30 years Indian Steel Plants probably make all kinds of steel - sheets as well structurals including whatbis required for containers .There are steel casters and forging units which can cast corner blocks and machine them too. Paining industry also have advanced so much that all kinds of paints are made including epoxy paints and powder coats too. India also has much advanced in structural work as in PEB technology.

Now India is in a position to look at getting into container manufacturing in a prpoper way - obviously scale has to match that of China and as Indian market is tiny the mar,et will be global and hence prices , quality and delivery hasve to beat competitors.

This is an ideal idustry for PLI to be given- As this product is primarily value added steel product, ideally a compnay like Tata Steel or JSW would be ideal to take up this venture