Container Corporation of India (Concor), a subsidiary of the railways , plans to give a big push to its operations by providing container services in Bangladesh and Sri Lanka. The move is part of a strategic initiative of the company where expansion of international network will be targeted to raise its growth rate to pre-recession period. At present, Concor has operations in Nepal facilitating movement of goods from India.
The company is holding talks with governments of Bangladesh and Sri Lanka and expects to start operations soon. ?We are in constant dialogue with Bangladesh to start our container services there. The neighbouring country had few safety concerns which we have addressed. Now, I understand that the proposal will come through soon,? Concor?s managing director Anil K Gupta told FE.
With regard to the Sri Lankan project, Concor has sent a team of its officials twice there in last six months. ?We have presented a business opportunity plan to Sri Lanka Port Authority and I am told that the proposal is taking shape,? Gupta said.
Corcor, which controls about 75% of all container movement in the country, was hit hard during global recession of 2008-09 with its throughput (goods carried) declining sharply. The economic slowdown in Europe and the US shrunk international trade leading to a fall in business growth. Concor, 81% of whose business comes from India?s trade with the world, registered a negative growth of 5.7% in 2008-09 against an expansion of more than 16% a year ago.
In the first nine months of the present financial year, the freight loading by the company has grown 7% to 21.3 lakh twenty-foot equivalent units (TEUs) and growth for the entire year is not likely to be more than 8%. ?We would aspire for a growth rate of 12% in 2010-11, but the recovery is not there,? Gupta said. India registered a growth of 29.5% in exports and 19% in imports of merchandise during April-December 2010.
Concor runs three trains a week between Birganj in Nepal and Raxaul in Bihar. It operates the inland clearance depot at Sirsiya, Birganj. ?We have signed an agreement to operate this terminal for 10 years. We still have five more years on the terminal,? Gupta said.
The company owns 59 terminals, including one in Nepal, and has plans to expand it to 61 in next few years. It would also invest Rs 500 crore by the end of 2010-11.