Central Government Departments

International Facilities and Services of Container Corporation of India Limited

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CONCOR was incorporated in March 1988 as a Public Sector Enterprise under the Ministry of Railways with the prime objective of developing modern multimodal transport logistics and infrastructure to support the country’s growing international trade.

The company commenced operations on November 1, 1989, by taking over seven Inland Container Depots from the Indian Railways located at Delhi, Ludhiana, Bangalore, Coimbatore, Guwahati, Guntur and Anaparti. Since then, CONCOR has developed a vast network of container terminals at prime locations all over the country. At present, it has a total of 41 Exim Terminals (Rail / Road linked ICDs and Port Side Container Terminals (PSCTs), with another 13 in the pipeline.

Containerization of exports and imports does not begin and end at the ports. CONCOR provides transport linkages between ports and the hinterland. Regular container trains are run to and from ports to CONCOR’s terminals in the hinterland. Some of the terminals are also served by road. With liberalization and opening up of the India economy, lowering of import tariffs and reduction in the number of commodities whose import/export was prohibited by the Government, there is an increasing trend of containerized imports/exports into/from India. Along with the growth of container business at Indian Ports, the level of containerization itself is increasing.

The advantage of containerized movement into the hinterland are self evident, a major plus being the decongestion of ports which would lead to higher turnover and added growth. CONCOR’S existing presence at port-towns is sizeable. CONCOR’s Terminals at Mumbai at Mulund, New-Mulund & Wadibundar cater to the Ports of Jawaharlal Nehru Port Trust and Mumbai Port Trust. Similarly, we have presence at Tondiarpet and the Harbour of Madras for Chennai Port, and Cossipore Road and Shalimar terminals at Kolkata cater to Kolkata & Haldia. There are terminals also at Cochin and Tuticorin and Vishakapatnam.

Presence in the port towns, in addition to the hinterland, would help tie-up both end points of the shipment route facilitating control over the entire logistics chain. Carrying the strategy further, CONCOR may also consider operating container berths in greenfield ports in order to provide integrated transportation logistics solutions to customers. Having already developed requisite expertise in operating hinterland terminals, port terminals should not pose any technical problems. As more port container terminal privatization takes place, it may be difficult for CONCOR to gain entry into quayside operations. Rail face operation at Port terminals still remains a strong possibility even at Private Ports.

International
Domestic

One of the major thrusts in improving the quality of service in area of exim business has come with the introduction of new State-of-the-art Rolling Stock by CONCOR for running long lead export and import special trains to and from the gateway ports. Around 1900 High speed flat wagons have already been procured and and another 1300 odd are in the pipeline. These wagons run at higher speeds (100kmph) and safety norms than conventional railway wagons, and have contributed significantly in reducing transits and improving the reliability of exim train services.

To meet the growth in Exim traffic at some of its terminals, and to meet the challenge head on, CONCOR is also acquiring more modern container handling equipment as well. The plan is to commission a new Rubber Tyre Gantry Crane, and a Rail Mounted Gantry Crane at our biggest facility in Tughlakabad, New Delhi soon. Similarly, RTGs are to be procured for ICD Dadri also. Apart from above, deployment of tailor-made equipment like Grappler arms etc. in some of the terminals is being contemplated to increase their handling capacity and efficiency.

The total warehousing space available for CONCOR’s Exim business is presently approximately 110000 sqm. By 2003-04, the Exim warehousing space should exceed 150000 sqm. , with facilities for handling bonded cargo, multi stacking, consolidation of LCL cargo, air cargo handling etc. besides conventional transit warehousing. CONCOR has plans of introducing value-added services like Palletisation/Fumigation of cargo, Repacking/strapping of cargo etc. at all its terminals. Though presently CONCOR is providing this service through contractors at some of its Exim terminals, these services are proposed to be extended, and once they have been introduced, CONCOR will be able to provide almost all warehousing-related services to its users.

CONCOR sees its future growth in accessing the untapped potential market within the country by opening more terminal facilities. The global trend in containerization of general cargo, particularly in relation to inter national trade has been rapid from the 1960’s. Abroad, 75-80% of general cargo is containerized, as against approx. 50% in India. In India the percentage of container traffic out of the total Port traffic has also risen from 0.2% in 1981 to 10% in 1999-00. The growth in containerization has been faster than the growth in volumes of general cargo. This is partly because international trade in geared primarily to handle containerized cargo.

The global trend is that 70-80% of containerized cargo moves directly between the hinterland customers and the seaports in containers. Of total container handled at Indian Ports, CONCOR at present moves 30%. There is therefore intrinsic potential for further growth in CONCOR business apart from the push given by increase in foreign trade. In the decade of its existence, the throughput growth of the company’s exim business has been almost 20% per annum.

As a CFS operator, CONCOR provides a number of value added services:

i. transit warehousing for import export cargo.
ii. bonded warehousing, which helps importers to store import cargo and take partial deliveries as and when required, thereby deferring duty payment.
iii. provision of air cargo complexes in some terminals
iv. consolidation of LCL cargoes
v. reefer movements

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