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CONCOR plans coastal service to Bangladesh and East coast ports

The state owned Container Corporation of India, CONCOR is planning to start a coastal shipping service to Bangladesh and to other east coast ports during the current financial year its chairman V Kalyana Rama has said. 

Concor’s earlier coastal service, a success 

 Talking to newspersons here he said the coastal service which his company started earlier this year from Kandla to Tuticorin was a success. The service has eighty per cent occupancy when it takes off from Kandla and calls at Cochin Port before terminating at Tuticorin. There is not much of return cargo from Tuticorin port.

Cargo carried by the coastal service includes food grains, fertilizer and tiles. Southern ports concentrate on imports and there is not much exports on the domestic end. 

B’desh service to skip Tuticorin port 

Replying to questions he said the Bangladesh service which his company proposes to start during the year might skip Tuticorin port.

Concor plans to invest a sum of Rs one thousand crores of which 30 to forty per cent will be spent on infrastructure like dry port development and about fifty per cent on purchase on wagon handling equipment. It plans to add 270 new rakes at a cost of rs 4500 crores in the next four years. CONCOR has at present 343 rakes.

The company also plans to add new cargoes to containerization including bulk cement and food grains. Lot of wastage takes place when they are handled in bulk and hence attempts are being made to containerize the cargo. 

Company’s new activity:  20 distribution logistics centres 

Another new activity the company has entered into is the setting up of distribution logistics centre at 20 centers all over the country. A centre has already been opened near Chennai two months ago. The centers will connected to the dry ports and about eighty of them are operational by CONCOR. Another ten dry ports will be launched during the current financial year. 

Concor’s additions to the existing fleet of 24,000 containers

 CONCOR has a fleet of 24,000 containers at present operating in the domestic market. About eight thousand containers were added last year. An order for 4000 containers is in the pipeline and will be added to the fleet during the current year. Tenders have also been floated to purchase another ten thousand containers.

Last year turn-over the company 

The turn-over of the company last year was rs7200 crores and earned a surplus of rs 1200 crores. The company handled 3.83 million teus. Volumes have grown by ten per cent over the previous year. 

Company’s new trade-friendly measures 

The navaratna company has recently announced several trade friendly measures including uniform 45 days free time on loaded container imports in all its terminals throughout the country. The empties also enjoy a free period ninety days thereby virtually handing over free storage space to the trade.

It has also implemented 24X7 cargo tracking system for containers handled by the company till it reached the manufacturers godown or the ship in the case of exports through  mobile app.

 

No tariff hike till March 31, 2020 

The company has also come out with a novel announcement that there will be no hike in tariff for handling containers for a full period of one year till March 31 2020 in all the terminals run by CONCOR to facilitate the trade to plan their activity without any hiccups on the cost front. We have provided the trade with stable regime, he said.

There are no agreement or commitment from the trade about the volumes they will transact to avail this facility. Anyone who uses the CONCOR facility will be eligible to avail the price freeze facility. 

JNPT and Mundra, ideally located for manufacturing industry 

Replying to a question on the imbalance in the turn-over of containers in Mundra and JNPT and the terminals in the east coast he said manufacturing facilities are situated in north India and that it makes no sense move goods from east coast ports. JNPT and Mundra at ideally located to cater to the interest of north Indian manufacturing industry.

He was replying to questions about how Mundra and JNPT terminals are working to more than 130 per cent of their capacity while the east coast port terminals capacity utilization was hardly 30 to 40 per cent. Trade experts say Mundra and JNPT handle the requirement of eighty per cent of the Indian hinterland while two dozen other ports the rest 20 per cent.

Experts feel that this imbalance was triggered by the connectivity facilities provided by both the Railways and the CONCOR including dedicated freight corridors to the two west coast ports linking them to North Indian manufacturing centers.

 


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