Lancer Container Lines Ltd enters agreement with Indonesian company to lease 10000 TEUs - World News Network

PNN
New Delhi [India], September 2: Lancer Container Lines Ltd, one of the leading integrated Shipping and Logistics solution providers in India has entered an agreement with a prominent Indonesian company, P.T. Map Trans Logistic, Surabaya, to lease 10,000 TEUs (Twenty-Foot Containers and Forty-Foot Containers). The agreement was signed in the presence of Khalik Chataiwala, Managing Director of Lancer Container Lines Limited, and Praful Jha, Director of P.T. Map Trans Logistic, Surabaya.
The management at Lancer Containers Lines Limited view this strategic partnership as a step forward in increasing leasing activities thereby helping the company to expand its business and enhance shareholder’s value. This partnership is expected to positively impact the company’s financial performance, leading to overall growth resulting in strengthening of its market position.
Earlier, the company had announced its mega expansion plans for the next few years. Company aims to expand its TEU capacity to 45,000 by FY26 from nearly 20,000 in FY24 and intends to steadily grow its container inventory by incorporating 200-300 containers each month to meet rising demand. Company aims to become a fully integrated service provider, and is actively exploring opportunities to purchase a new vessel. The measures are expected to yield healthy revenue and margin growth in the coming years.
Highlights:
* Company is actively exploring opportunities to purchase a new vessel to become a fully integrated service provider
* In Q1FY25, Lancer Containers Lines Ltd added 3,008 TEUs to our existing portfolio; Company’s expanded container fleet now stands at 22,707 TEUs.
* The company intends to steadily grow its container inventory by adding 200-300 containers each month, in response to the rising demand from freight forwarders.
* Company has presence in over 30 countries and serve 86 ports and 36 ICD locations.
* The company is expanding its reach by exploring new trade routes and transporting containers to multiple destinations where there is demand for cargo.
* Company reported revenue of Rs. 172.4 crore, EBITDA of Rs. 15.91 crore and Net Profit of Rs. 12.1 crore in Q1FY25.
* Improving its operational performance and profitability, In FY24, company reported Total revenue of Rs. 646.8 crore, EBITDA of Rs. 88.1 crore (EBITDA Mgn 13.9%) and PAT of Rs. 58.3 crore (PAT Mgn 9.2%).
Incorporates in 2011, Lancer Container Lines Limited is engaged in providing highly integrated shipping and logistics services in India. The Company is providing services in regions like Indian Subcontinent, South East Asia, Far Coast, Mediterranean Sea, Red Sea, Black Sea, Asia, Middle East, Africa, CIS Countries, USA, Europe, and Latin America.The company has secured some of the key registrations in the global logistics domain AMTOI, FIEO, BIC France, WCA WORLD, GNN. Company has presence in over 30 countries and serve 86 ports and 36 ICD locations.
Abdul Khalik Chataiwala, Chairman and Managing Director, said, “Our focused efforts on expanding our container fleet and optimizing our service routes have led to a significant rise in the number of containers handled. Company’s expanded container fleet now stands at 22,707 TEUs. This growth highlights our strategic investments in fleet expansion and logistics optimization, demonstrating our ability to meet the increasing demands of global trade. In Q1FY25, we added 3,008 TEUs to our existing portfolio. Aligned with our growth strategy, Lancer Container is poised to pursue an ambitious expansion plan, aiming to raise the TEU capacity to 45,000 by FY26. Our strategic positioning in Dubai continues to be a cornerstone of our operational strategy. The company is expanding its reach by exploring new trade routes and transporting containers to multiple destinations where there is demand for cargo.”

Q1FY25 Results: Company reported revenue of Rs. 172.4 crore, EBITDA of Rs. 15.91 crore and Net Profit of Rs. 12.1 crore in Q1FY25. This notable performance comes amid a backdrop of rising container shipping rates due to persistent port congestion and a challenging macroeconomic environment coupled with geopolitical tensions. Despite these headwinds, our focus on optimizing operations and leveraging market opportunities has enabled us to achieve growth and maintain our competitive edge.
For the FY24, company has reported total revenue of Rs. 646.8 crore, EBITDA of Rs. 88.1 crore (EBITDA Margin 13.9%) and Net Profit of Rs. 58.3 crore (PAT Margin 9.2%). EBITDA and PAT margin rise of 320 bps and 280 bps respectively in FY24 highlights improvement in operational and financial matrix of the company.
Industry Prospects: India’s shipping logistics sector is pivotal to its economic growth, with ambitions to elevate waterways transport’s share from 6% to 12% by 2025. Projections indicate the logistics market will surge to US$ 317.26 billion in 2024 and reach US$ 484.43 billion by 2029, at a CAGR of 8.8%.
To bolster this trajectory, the government has introduced initiatives like LEADS, a single-window online platform offering comprehensive logistics solutions, including transport and warehousing. Subsidies, such as a 12% incentive for Indian-built and flagged vessels and support for shipbuilding and repairs, further stimulate the sector.
The Bharatmala Pariyojana scheme plans the development of 35 Multimodal Logistics Parks (MMLPs) with a combined investment of Rs. 46,000 crore (US$ 5.5 billion). These parks are expected to handle approximately 700 million metric tonnes of cargo, with 15 key locations earmarked for Rs. 22,000 crore (US$ 2.6 billion) in funding.
Aiming to enhance trade competitiveness and operational efficiency, India seeks to climb to the 25th position in the Logistics Performance Index and reduce logistics costs from 14% to 8% of GDP by 2028, marking a targeted 40% reduction.
“Looking ahead, we are optimistic about our future. With our strategic initiatives, solid financial foundation, and commitment to excellence, we are poised to navigate challenges and seize opportunities. We remain dedicated to sustainable growth and creating value for our shareholders, customers, employees, and communities. Our strategic plan is centered around significant investments in expanding our fleet, enhancing infrastructure, and advancing technology. These initiatives are geared towards leveraging the expected growth in global trade and maritime logistics, positioning us for sustainable, long-term success by FY26.,” said A. Khalik Chataiwala.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)

Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News