Govt asks Geodis to register with directorate general of shipping

NEW DELHI: The government has asked French logistics player Geodis to register with the Directorate General of Shipping to function as a multi-modal transport operator following its decision to pick up a 15% stake in Wilson Sandhu Logistics India, a Mumbai-based transportation company.

Geodis had agreed to pick up TNT Forwarding Holdings’ 15% stake in Wilson Sandhu Logistics following an agreement with TNT late last year. Geodis will hold about Rs 22 lakh out of Wilson Sandhu’s total paid up capital of Rs 1.47 crore. The company will continue to function as a transport operator engaged in freight forwarding, sea chartering, container leasing and movement of air and sea cargo.

The Foreign Investment Promotion Board (FIPB) had taken up Geodis’ investment proposal since the activities of the Indian company fell under the courier services category. In view of the norms governing the sector, the company is being asked to register with the director general of shipping.Geodis already has a wholly-owned subsidiary called Geodis Overseas in India.

Geodis Overseas is a multi-modal operator with services including freight forwarding, clearing, hire and purchase of freight containers and ship chartering. Geodis and TNT Freight Management had entered into a share purchase agreement in November 2006. Geodis had agreed to purchase 100% of the voting securities of TNT Forwarding Holdings from TNT Freight Management including the 15% shareholding owned by TNT Forwarding Holdings. TNT Freight Management is a wholly-owned subsidiary of TNT. TNT is an international transportation services provider.