Logistics and container transport operator Container Corporation of India (CONCOR) recently reported a 3.7% decline in consolidated net profit in FY26, while its revenue growth remained modest at 2.2%. In the midst of global trade uncertainty, the state-run company is now betting on new growth drivers such as bulk cargo transportation, end-to-end logistics services and its proposed international venture – Bharat Container Shipping Line (BCSL).
Sanjay Swarup, Chairman and Managing Director of CONCOR spoke with FE’s Manu Kaushik on the BCSL initiative, fuel price trends, and the company’s future growth strategy.
Q Fuel prices have increased recently due to the disruption caused by West Asia conflict. What impact do you expect this to have on CONCOR’s operations and profitability?
The direct impact on CONCOR is expected to be limited. Nearly 95% of our container movement takes place through rail and only around 5% through road transport. Since the Indian Railways‘ network is over 99% electrified, volatility in diesel prices has limited impact on our operations compared with road-based logistics operators.
In fact, if fuel prices remain elevated, we could witness a traffic shift from road to rail for containerised cargo movement. Cargo movement through rail becomes relatively more competitive in such scenarios, and we are fully prepared to handle additional volumes. Even though we are still assessing the exact impact, we see more opportunities than risks emerging from the situation.
Q: CONCOR is a key stakeholder in the proposed Bharat Container Shipping Line (BCSL). What is the strategic thinking behind this initiative?
India currently lacks a dedicated container shipping line that can provide integrated end-to-end logistics services to exporters and importers. Currently, CONCOR operates an extensive network of 68 terminals across the country, 39 of which are equipped to handle EXIM cargo. We also have a large fleet of containers and container trains, and have steadily expanded our first-mile and last-mile logistics capabilities.
In this context, BCSL is the next logical step that our company is prepared to take. The objective is to offer customers an integrated solution spanning inland logistics, ports and international shipping. With CONCOR as an important partner, the venture can leverage our pan-India container network, terminal infrastructure and inland logistics strength.
Q: How does BCSL differ from existing global shipping operators?
With CONCOR as an important partner, the venture can leverage our pan-India container network, terminal infrastructure and inland logistics strength. Unlike many shipping lines that need to reposition empty containers over long distances, BCSL will have access to a large pool of containers across India. It will also benefit from CONCOR’s extensive inland container depot network. These advantages can help reduce logistics inefficiencies and improve service delivery to customers. The ultimate goal is not just to operate ships but to provide integrated logistics services.
Q: In FY26, CONCOR reported a marginal decline in consolidated net profits while revenues grew by just 2.2%. What is your outlook on margins and profitability amid global trade uncertainty?
Despite fluctuations in trade flows and operating costs, CONCOR has consistently maintained EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins above 20%. We expect to sustain healthy profitability through operational efficiencies, better asset utilisation and technology-led improvements in supply chain management.
While geopolitical developments and global trade conditions will continue to influence the sector, our diversified business model, strong rail-based network and growing portfolio of logistics services put us in a strong position for the long-term growth.
Q: How did CONCOR perform in FY26 in terms of container volumes?
We handled container volumes of over 5.58 million TEUs in FY26, which reflects strong growth in our core business. We also continued to strengthen our presence across major logistics corridors and ports. In future, we expect that the dedicated freight corridors (DFCs), improved port connectivity and growing demand for integrated logistics services to support volume growth.
Q: How have your international shipping ambitions progressed so far?
We launched overseas operations as a Non-Vessel Owning Common Carrier (NVOCC) in July 2025, even before the BCSL initiative was formally conceived. Since then, we have handled more than 850 TEUs (Twenty-foot Equivalent Units) of EXIM cargo, mainly between India and the Middle East and Southeast Asia.
Customer response has been encouraging. However, our international expansion plans have been slowed by the ongoing conflict in West Asia. The geopolitical situation has affected shipping routes and business sentiment across the region. But we view this as a temporary challenge. Once normalcy returns, we expect overseas shipping activities to gather pace. We are also evaluating opportunities in other Asian markets.
Q: CONCOR has historically been associated with container logistics. Why are you increasingly focusing on bulk cargo transportation?
Bulk transportation represents a significant growth opportunity. In the domestic segment, we have traditionally moved commodities such as gunny bales, steel coils, foodgrains, tiles and bagged cement through containerised logistics. More recently, we have introduced specialised solutions for transporting bulk cement through rail containers.
India has an installed cement production capacity of around 720 million tonnes annually and produces nearly 490 million tonnes. The share of bulk cement transportation is increasing due to rapid urbanisation and infrastructure development.
But almost 90% of bulk cement still moves by road, and this presents a large opportunity for rail-based transportation. We have already partnered with several leading cement manufacturers, and expect volumes in this segment to grow considerably in the years to come.
Q: Which new cargo segments are you targeting to diversify revenue streams?
Besides bulk cement, we are working on improving logistics solutions for foodgrain transportation, especially the wheat and rice. We have developed container-based systems that improve handling efficiency and reduce wastage. We are also actively exploring opportunities in the fly ash and liquid cargo transportation from locations such as Dahej.
As demand evolves, we are prepared to invest in specialised containers and equipment to support new cargo streams. The goal is to broaden the cargo basket while leveraging the existing rail-based logistics network.
Q: The Union Budget 2026-27 has outlined a Rs 10,000 crore scheme to build a globally competitive container manufacturing industry in India. Are you going to play any role in that scheme?
We have been continuously supporting indigenous manufacturing. Over the last three years, CONCOR has procured more than 22,000 containers which were manufactured in the country.
We also source wagons, handling equipment and related infrastructure domestically. While we are not container manufacturers, our procurement strategy has helped create demand for domestic manufacturing and strengthen the logistics equipment ecosystem in the country.