Container Corporation of India (Concor) will start transporting cargo to overseas locations such as Singapore and Dubai by the year-end to provide contiguous cargo-handling services. It currently handles cargo in the Indian hinterland. The overseas operations will be undertaken through global partnerships.
For this, Concor has prepared a cost-effective business model whereby it will take berths on ships on rent and will not buy any vessels of its own to avoid accumulation of assets. It will hire intermediaries that will act as a link between Concor and shipping lines. These intermediaries will also oversee cargo transportation with offices outside India.
The new arrangement will allow Concor to book shipment orders right up to the final destination rather than leaving the consignment at Indian ports.
??We want to operate as a non-vessel owning common carrier of cargo for our clients,?? Concor managing director Anil Gupta told FE on Tuesday. Non-vessel owning common carrier is one that does not own any ship but carries container cargo over the ocean to other countries.
Concor?s director finance P Alli Rani said, ??This is a new window of business that we are trying to open. It is the first time that an Indian company is planning to offer such a service.?? She said the service would be operational by the end of the current year.
In the beginning, Concor is focusing on transporting container cargo to Singapore and Dubai. ??We are scrutinising some expressions of interest for the same,?? Rani said. ??More destinations will be added as we go forward,?? she said.
Gupta said Concor has also sought permission of the Bangladesh and Sri Lanka governments to run container trains and set up inland container depots (ICDs) in these countries. ??We want to connect our ICDs with those in Bangladesh. After providing the broad-gauge connectivity, we would also set up an ICD. We have also made an offer to Sri Lanka to position our rolling stock there,?? he told reporters on the sidelines of a press conference to announce Concor?s joint venture with Krishnapatnam Port in Andhra Pradesh to handle cargo-docking at the port. He said the company would invest R700 crore in 2011-12 for setting up new ICDs and buying rakes.