Mumbai: Port-based logistics firm Allcargo Logistics Ltd said it has acquired two more ships for its coastal shipping business without disclosing the amount.

The company said these additional vessels have an aggregate capacity of 24,000 deadweight tonne.

Post this acquisition, Allcargo now owns five cargo vessels, making it one of the largest firms in the logistics industry.

“The main criterion for this acquisition was to cater to the growing requirements not only of coastal shipping but regional trade and commerce as well," the company said in a statement.

India has over 7,000 km of coastline and coastal shipping is considered as efficient, cost effective and time-saving mode of cargo transport.

The government is increasing its focus on decongesting the existing road and rail network through coastal shipping. “As an organisation, we believe that India’s economy will need a more efficient and time saving mode of transportation, to keep pace with its growth. Coastal Shipping is the solution for this opportunity. We are helping our customers to create logistics solutions through coastal shipping, making their cargo movement more seamless and cost effective," said the company’s founder-chairman Shashi Kiran Shetty.

Allcargo specializes in moving bulk, break bulk, containerized and project cargo under its coastal shipping business.

The government is proposing to introduce a green channel for clearance of coastal cargo from existing berths.

“Guidelines have been issued to all the Major ports to earmark exclusive berths, storage areas and gates for coastal cargo outside the custom bonded area of the Ports to facilitate movement of coastal cargo. Major Ports of Kolkata, Visakhapatnam, V. O. Chidambaranar, Cochin, New Mangalore, Mumbai and Kandla have already established green channel for coastal cargo, “ junior shipping minister Pon Radhakrishnan told Rajya Sabha on 27 July.