The Logistics Headlines, New Dlehi, 26th March :The Container Corporation of India (CONCOR) seems to losing its edge over top six terminals in private sector. Even though with dedicated freight corridor (DFC) is assisting it to be in the neck of competition, CONCOR is going to encounter few troubles given its recent performance in market share gains concerning road players.
The Director-Finance at CONCOR, Alli Rani said that their company lost major market share to private players in road sector, but it gained the same in rail sector.
Now the government of India has highlighted interest to drive logistics framework and integrated transport model this month, which shall lower costs, build hub-and-spoke platform with 35 multimodal logistics park. These efforts are surely to benefit transportation of goods in India and CONCOR to a great extent.
CONCOR Faring in Road and Railway Sector to 2017-18
In the last sector, the Container Corporation of India had 75 percent in rail segment and container transportation. The loss in road sector for the past two years is one of the reasons for drop in oil prices, which helped in terms of fuel and other pricing. Yet the total income of CONCOR in last counter of Q3 fell by 5 percent because of the cancellation of port congestion charges, which they had to collect in last year.
- Trade Metrics: Being dependent on both international and domestic trade, there won’t be any major trend of differences immediately, but CONCOR is devoting much time in projects to surge trade, which will propel with GST in place, revival in exports, and appropriate exchange rates, leading to stronger results for the next quarter.
- Terminal Capacity: The capacity in the terminals seems to be a plaguing issue. There could be a wait period involved before fructification of plans on dedicated freight corridor, which would in turn increase capacities for their track space.
- Current Projects: The plans are on for investing money, time, and strategy, which will expand the content and size of terminals so as to boost services for customers and attract them to rail than road. Emphasis is on finishing stated constructions and marketing the same.
Securing Defences to Jump Back in the Game
Knowing that CONCOR is now steadier in railways segment, it is joining conversations, programs and projects that will monopolize on its strength. Though initiatives to conquer the road sector are underway, it may take some time to stand up against the odds. But with DFC on the block and readiness to tackle the problems, the Container Corporation of India is set to challenge the dwindling returns.
On the 24th March, 2017, CMD CONCOR, (Shri. V. Kalyana. Rama) was into a panel discussion on infrastructure reforms, governance, and policies for railways development in Delhi for the Governance Now Summit. CONCOR is pacing up in rail speed as well so as to deliver maximum container boxes to ports in time, but fighting with road segment progress.
As CONCOR has adopted double stacking operations, the business will continue to increase, but it will have its slump-downs as expected with negligible difference in margins. So, for future, the Container Corporation of India is going to stay ahead in railways and recover gradually in the road sector.