As part of its enhanced focus on growth in emerging markets, of which India is a key region, logistics service provider Damco plans to not only consolidate on its existing strengths and base in ocean freight forwarding, supply chain management and consolidation, but also expand its services in areas like airfreight, trucking and warehousingб фссщквштп ещ Exim News Service.
This was emphasised by Mr Peter Kjaer Jensen, Global Chief Operating Officer of Damco International, at a trade meet organised by Damco here last week. Damco is known as one of the world’s leading providers of freight forwarding and supply chain management services. It is part of the Denmark-based maritime and energy conglomerate, A. P. Moller-Maersk Group.
Mr Jensen said the company was further augmenting its expertise in supply chain management and was focusing on lead logistics and 4PL, the aim being to handle inbound logistics for customers in a more dynamic manner.
The "comparatively less developed" airfreight was also a key area of concentration, he said, in which huge investments had been made in the recent past in keeping with the com-pany’s "clear strategy" to be and expand in the business. Damco is set to double its global revenues in airfreight in two years, Mr Jensen emphasised.
He attributed the company’s success to its service quality, network and strong partnerships with customers and other service providers like carriers etc. which were being constantly enhanced. Its global volumes were expected to touch 700,000 TEUs this year, Mr Jensen highlighted.
He expressed happiness at Damco India’s leading position in the context of the company’s global footprint, with its wide range of services, over 19 offices and top clients. The capabilities of its set-up in India were being promoted among Damco’s overseas customers, he said.
While in India, Mr Jensen took stock of the overall operations in the country, strategised with the Damco India team on the way ahead, and met with key customers and service partners.
In a brief interaction with Exim India, Mr Lars Sorensen, Damco’s Chief Executive Officer for South Asia, disclosed that the company was focusing on expanding its operations in trucking, airport warehousing/CFS and airfreight, besides evaluating options whether to enter into cold chain logistics in India.
In trucking, as per Mr Sorensen, the company currently operates 150 vehicles on an exclusive long-term lease in north India, and the plan was to expand operations pan-India over a period of two years.
The proposed goods and services tax (GST) was driving Damco’s plan to invest significantly in augmenting its warehousing operations, Mr Sorensen stressed, which would see it having its own facilities.
Airfreight was a major area of focus in India, he emphasised, with the aim being to be among the top 3-4 players in the sector in a few years. In ocean freight, the growth target was 30 per cent year-on-year from the current annual volume of 120,000 TEUs. "In 3-4 years, we aim to be four to five times bigger in India than what we are today. That is possible given the potential of the Indian market," he said.
The company is currently focusing on developing key trade lanes such as Intra-Asia with main focus on China-India, India-Africa, India-Europe, and also plans to achieve growth from industrial verticals such as chemical, retail, reefer, aid and relief, government and defence, consumer electronics, and automotive.
Among the services Damco currently offers in India are ocean freight forwarding, supply chain management, state-of-art supply chain visibility solutions through its IT infrastructure, import consolidation, Customs clearance, trucking, airfreight, green logistics, and some warehousing in FTZ.
The trade meet saw participation from senior Damco and A.P. Moller-Maersk Group executives, including Mr Samir Hosangady, Damco's South Asia COO, and a cross-section of the company’s service partners.