Container Corporation of India Ltd (CONCOR) has reversed its decision to transition existing terminals built on Indian Railways land to the Gati Shakti Cargo Terminal (GCT) policy, citing concerns over uncertainty. The company’s Chairman and Managing Director, Sanjay Swarup, confirmed the move, emphasizing that while the policy would be applied to new greenfield terminals, the risks of migrating brownfield terminals under the GCT scheme were too high.
Previously, in May 2024, CONCOR had expressed its intention to apply for migration under the new Gati Shakti policy for its Tughlakhabad inland container depot, aiming to cut down its land license fee (LLF) by approximately Rs 120 crore annually. However, the company now believes that the potential uncertainties of shifting to this new regime outweighed the benefits.
For FY24, CONCOR paid a land license fee of Rs 424 crore to the Ministry of Railways for 26 terminals across India, with Rs 360 crore of that amount paid for the Tughlakhabad terminal alone. The Gati Shakti policy promised to significantly reduce the LLF from the current 6% per annum to just 1.5%, making it a potentially attractive option. However, the proposed shift would have required going through a tendering process that could complicate operations, particularly for high-traffic terminals like Tughlakhabad.
Container train operators raised concerns over the GCT policy, noting that the introduction of common user facilities could lead to logistical chaos as multiple operators could bring in trains, potentially leading to greater control by Indian Railways and lack of coordination at the terminals.
Despite this setback for the existing terminals, CONCOR is moving forward with the GCT policy for new greenfield terminals, including projects in Mandalgarh (Rajasthan) and near Haridwar, where the company is acquiring land for expansion.
