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
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
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
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