"In the first six months of this fiscal we have moved 150 million barrels of crude for different oil companies the world over, which is the highest amount of crude moved by any Indian shipping company. And this is primarily because we are able to control the full logistic chain, as is being now sought by oil companies," says Mr Sanjay Mehta, CEO and Managing Director of the company.

The supply chain solutions provided by the company include shipping, terminal activities, storage, lighterage, ultimate delivery of oil to refineries and taking the products out of the refineries for onward transportation.

"We envisage that in one year from now, oil companies will no longer work with just traditional shipping companies, but with companies which can provide full logistic solutions," Mr Mehta told Business Line.

Essar Shipping has firmed up long-term contracts involving provision of such supply chain solutions with global oil majors such as Exxon, Chevron and BP. While the company handles shipping and related activities such as lighterage and storage, other operations like terminal activities are outsourced. "This is one reason for consistency in our operating revenues because of the incremental earnings. At every stage we earn money," according to Mr Mehta.

With the company planning to focus on energy transportation and management further in the coming years, it has opened offices in New York and Beijing. "For example, Exxon Mobil operates seven refineries in the US. Logistic experts from our New York office visit the refineries and study the crude mix - that is from where the crude will be shipped for the whole year. And then we prepare a supply chain proposal, which we totally execute. We have saved Exxon about 15 cents a barrel in transportation cost during the last two years, which is quite significant," he said.

Essar Shipping is implementing the same strategy for steel and power companies for movement of dry bulk cargoes such as iron ore, pellets, thermal coal, coking coal and finished steel products. The integrated bulk transportation services of the company involve similar supply chain solutions.

"We move 7.5 million tones of bulk cargo every year and we are one of the largest consolidators of dry bulk cargo in South East Asia. We just do not tramp the ships, but enter into long-term contracts for companies such as Tata Steel, Jindal, BHP Billiton of Australia, Ispat and Glencore International AG," Mr Mehta pointed out.