Japanese shipping group "K" Line through its subsidiary Nitto Total Logistics Ltd. has set up a joint venture with India’s J.M. Baxi Group to provide logistics services for car carriers and automobile handling in the country.
The joint venture, which is owned 50 percent by J.M. Baxi, 40 percent by Nitto and 10 percent by “K” Line, also aims to cater to other cargoes at a later stage.
The move comes as India is slowly emerging as a hub for international car manufacturers. Ford, Nissan, BMW and Hyundai are exporting substantial volumes of finished cars to global markets from their units in Chennai.
The new venture is the latest step in a steady expansion of logistics activities for Mumbai-based Baxi Group. The group already holds concessions for the operation of cargo facilities at the major ports of Visakhapatnam, Paradip and Kandla. At Visakhapatnam, it operates a container terminal jointly with DP World.
“K” Line’s rivals MOL and NYK Line also have automobile logistics subsidiaries in India.