News / DB Schenker targeting India's nascent contract logistics market

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Amid growing rumours and media reports about a possible ownership change, DB Schenker is looking to make greater inroads into the Indian market as its economy expands and it emerges as a sourcing alternative to China.

Hitendra Mankani, chief commercial officer at DB Schenker India, told The Loadstar the company had “a multifaceted growth strategy, heavily focused on contract logistics solutions, that closely aligns with India’s evolving logistics dynamics and rising demand for a more efficient, robust supply chain ecosystem”.

He said: “With contract logistics, our focus is on expanding our presence in tier 2 and tier 3 cities, enhancing warehousing capacity and working on technology to optimise operations. This includes advanced tracking solutions, automation and last-mile delivery capabilities.”

The global forwarder is particularly striving to nurture and scale-up digital solutions to stay ahead of the competition in the market, added Mr Mankani.

He said India’s air freight industry outlook was bullish, powered by promising economic indicators and tech advancements, despite tightening capacity in recent weeks from the Red Sea crisis impacting normal cargo flows.

“Overall, we expect the market to pick up compared with last year, and the growth is especially backed by a higher number of e-commerce shipments and demand for rapid high-value goods transport.”

At the same time, Mr Mankani also noted that green transport solutions were becoming a “customer lookout”, as industry and government leaders increasingly prioritised decarbonisation efforts.

“With regard to airfreight, our customers can opt for sustainable aviation fuel (SAF) for their shipments to drive down the environmental impact of their transports. Via virtual allocation of the biofuel, it is possible to avoid up to 100% of CO2 emissions,” he told The Loadstar.

DB Schenker is also building a logistics integrator footprint in India, as supply chain stakeholders put a heavier focus on end-to-end, point-to-point offerings to enable more resilient and sustainable trade flow.

That collaborative push has already seen some positive results, including striking a strategic partnership deal with Concor, India’s largest intermodal rail operator, to jointly explore inland logistics opportunities.

“This strategic collaboration marks an important milestone in our commitment to provide enhanced sustainable products to our customers,” said Kinjal Pande, DB Schenker India CEO.

“Road continues to be the dominant mode of transport in India and, through this strategic partnership for rail freight, we want to significantly change the trend towards a low-carbon future,” added Ms Pande.

Concor operates an expansive network of inland container depots in some 65 locations in India. Large-scale modernisation of the rail network infrastructure – including the development of dedicated, freight-only corridors – presents significant growth potential for intermodal logistics verticals.

DB Schenker India has a network of 28 offices and some 50 warehouses, with a combined space of more than five million sq ft.

You can reach the writer at [email protected].