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i-maritime Newsletter

Concor to expand network of logistics parks - 2011-12-12

Container rail operator Container Corporation of India (Concor) has drawn up a Five-Year Plan to set up a network of 13 multi-modal logistics park that can handle both domestic and exim traffic across the country. While the first phase of the first of these parks at Khodiyar near Ahmedabad started operations earlier this year, the second one at Nagalapally near Hyderabad has started off as a domestic container terminal. Set up at a cost of Rs 27 crore, the terminal is now being upgraded into a multi-modal logistics park at an additional cost of 65 crore, for which the company is in the process of acquiring 64 acres of land. ―We will be developing the network of logistics parks through private participation. We will be investing in the basic infrastructure and other facilities such as warehouses will be set up through private investments on a revenue sharing model,‖ Mr Anil K. Gupta, Concor Managing Director, told Business Line on the sidelines of the inauguration of the Nagalapally terminal. Concor, which has been hit by a sharp fall in domestic traffic, expects to post only a marginal increase of 2-3 per cent in its cargo throughput this fiscal. Last year, it had handled 2.5 million TEUs, which was 75 per cent of the total container throughput in India. The downslide was due to some policy changes by the Railways last December that made container movement of certain commodities costlier than road transportation. Mr Gupta said the Railway Minister has constituted a committee to look into the issue and the report is expected shortly. ―We are hoping that there will be some positive roll-backs,‖ he said. To meet the growth in demand for wagons, Concor is acquiring 14 rakes this fiscal, out of which some eight have already been received, involving an investment of Rs 12 crore for each rake.
―Like this fiscal, we will have a little over Rs 500 crore as capex for next fiscal for buying new rakes and handling equipment,‖ he said. Concor's subsidiary Fresh and Healthy Enterprises Ltd (FHEL), which operates a cold storage facility at Rai, near Delhi, expects to earn profits this fiscal, after breaking even last year and suffering losses in the previous three years. It will be looking at expanding its network of cold storage facilities through private participation. ―These facilities will be commodity and location specific,‖ he said.

Source: Hindu Business Line