India: Concor plans to take on pvt firms.

Byline: rakshali03

In order to take on competition from private operators, state-owned Container Corporation of India (CONCOR) is adopting a strategy that includes setting up dedicated air freight stations, expanding the network of inland container depots (ICDs), taking up stakes in ports, exploring options of starting coastal shipping services with shipping lines and offering cold chain storage services.

The 15-odd private container service operators such as the Adani Group, APL, Dubai Ports World, Reliance and Arshiya International have cornered around 15 per cent share of the containerised cargo transport market in the country since they started operations in February 2006. Before this, Concor had monopoly.

Now, to increase penetration in the hinterland, CONCOR has invested over Rs 100 crore to add four more terminals to its existing chain of 59 ICDs. While the ones at Durgapur and Sarai Madhopur (Varanasi) have been commissioned recently, Sikandrabad and Khodiyar facilities are under construction.

CONCOR has also entered into an agreement with a consortium led by Dubai Ports World to operate a container terminal that is coming up at the Vallarpadam port near Cochin. The facility is expected to be commissioned in April 2010. Besides, CONCOR has expressed interest in operating the 4th terminal at the Jawaharlal Nehru port. However, the project is stalled due to legal problems.

The corporation is also looking at setting up dedicated air freight stations at seven ICDs, including at Pitampur and Ahmedabad, so that cargo can be directly transported through bonded trucks to airlines. It is also seeking Customs clearance to operate a container freight station (CFS) in a joint venture with HAL at the new airport in Bangalore.

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