Kolkata: The Tatas will use the Tata Steel subsidiary TM International Logistics Ltd (MIL) to develop third party logistics support as a full-fledged business in the coming years.

Third party services, done so long almost on a pilot scale, would include door to door delivery services for customers through integration of marine, road and rail links as well as information technology enabled cargo tracking.

"TMIL will offer end to end supply chain management as a single window service and initially it will be done in allaince with select private operators ona revenue sharing basis", company managing director S C Saxena told Business Standard.

For example, large import consignments may be handled through a chartered vessel, port handling and doorstep service for the customer through the port of choice.

TMIL has benchmarked its operations globally from the beginning. To achieve global efficiencies in performance, some investments in infrastructure would be necessary, as well as evolving new solutions.

TMIL was looking at strategic investments at its terminal at Haldia port as well a 17m draft berthing locations for Capesize vessels.

Such draft was currently available only at Vizag port. In all investments at Haldia go be as much as Rs 30 crore in the current phase of planning, Saxena indicated.

One important component of the logistics solution business would be development of minor port facilities offering draft of 4-6 metres in West Bengal.

"Of the 180-odd minor ports in Indian 106 were in Maharshtra and Gujarat, but West Bengal has none at present", Saxena pointed out.

Minor ports would enable cargo transfer to locations ideal for use of coastal vessels or multimodal transport solutions.

Mobile harbour crane technology for example had progressed to the level where cranes capable of handling 9000-10000 tonnes per day of steel or 25 container moves a day were available for as low as $3 million. Current operational levels at Indian ports were 3000tpd and 6-8 container moves a day.

Another component in the business would world-class warehousing facilities as part of TMIL’s plan to offer the best value proposition to the customer if not the best cost proposition.

"As part of this business, we are looking at warehouses where railcars can be parked directly for unloading", Saxena explained.