* Achieves all-time high throughput in 2018-19
* Extends volume discount to ex-im coastal transhipment containers
* Successfully forays into distribution logistics centres & coastal shipping
In an unprecedented decision, that is reflective of its confidence as a market leader, the Container Corporation of India (CONCOR), a Navratna PSU, has committed to not increasing its tariff in the entire financial year 2019-20 (April 1, 2019 to March 31, 2020). A notice to this effect was issued by the company late last week.
Elaborating during an interaction with the media on the sidelines of a trade meet organised by CONCOR in Mumbai on Tuesday, Mr V. Kalyana Rama, Chairman and Managing Director, emphasised that the company will not be raising its charges during the fiscal even if input costs go up, diesel prices rise, or there are revisions in tariff by the Railways. This price stability would enable customers to better plan their business activities for the year and also facilitate ease of doing business, he said.
Mr Kalyana Rama highlighted that this is the first time a company is making such an unconditional commitment that does not require any agreement or specified volumes. On whether it would impact the company’s margins, he expressed confidence that the decision would bring in more customers and increase volumes, especially given CONCOR’s reputation as an excellent service provider.
It was highlighted during the interaction that CONCOR achieved an all-time high throughput of 3.83 million TEUs in 2018-19, up 11 per cent compared to the 3.53 million TEUs in the previous fiscal. In tonnage terms, the figure was 43.5 million tonnes as against 39.5 million tonnes. There was growth in both ex-im and domestic volumes as has been the trend in the past few years, it was pointed out.
Also present from CONCOR during the interaction were Mr Sanjay Swarup, Director, International Marketing & Operations, Mr A. Vaasudeva Rao, Executive Director (Domestic & Commercial), and Mr Sharat Chandrayan, Chief General Manager, Western Region.
Mr Kalyana Rama stressed that “customer value creation” is the quality policy of the company, which entails doing things with 100 per cent commitment and achieving certain standards in logistics towards customer satisfaction. CONCOR has low detention at ports, provides 24/7 cargo visibility, and has launched successful customer facilitation initiatives like 45/90 days free time and volume discounts for shipping lines.
He also highlighted some of the recent initiatives of the company, like the opening of its first distribution logistics centre—in Chennai under the PPP model—in March this year, and its foray into coastal shipping in January. The two 700-TEU vessels currently deployed on the coastal service (from Kandla to Tuticorin with intermittent calls at Mangalore and Cochin) have 80 per cent occupancy as of now and have not missed a weekly call till date. “We entered the business with good planning and strategy,” Mr Kalyana Rama said, adding that CONCOR has plans to expand in coastal shipping to the east coast and to the neighbouring countries as well.
The company has identified 20 nodes for opening distribution logistics centres, totalling 50 m sq. ft in 4-5 years, he said.
CONCOR currently operates 83 terminals, 7 of which are exclusive tie-ups and an indicator that the company is open to working with partners based on agreements for mutual benefit, it was pointed out. It is targeting 100 terminals by 2021, which would all be operationally and economically viable and not put up just for the sake of expanding the terminal network, said Mr Kalyana Rama.
All the terminals currently being developed are Multi Modal Logistics Parks (MMLPs) which encompass ICD, PFT, closed and open warehousing, consolidation, cargo aggregation and distribution, commodity hubs, and even automobile handling and special tankage if required. Eventually, everything will become a MMLP, it was pointed out.
CONCOR’s 5-year capex programme (2017-22) entails an investment of Rs 6,000 crore. It is continuously adding rolling stock and today has 335 rakes, with plans to have 260-270 more in the next 5 years. The new rakes would be Dedicated Freight Corridor-compliant.
Talking about the CONCOR app, Mr Kalyana Rama said that customers have found it extremely useful. It currently facilitates 24/7 cargo visibility and will soon be expanded into a logistics platform for offering first mile/last mile services. A panel of service providers has been appointed across India for providing services like transportation, value-added services, cargo handling services, etc. Multiple service providers would ensure cost-effectiveness and quality, it was emphasised.
Later, addressing attendees at the trade meet, Mr Kalyana Rama highlighted the no change in tariff commitment for the ongoing fiscal, expansion of the volume discounts to ex-im coastal shipping transhipment, and the new initiatives like distribution logistics centres and coastal shipping.
Earlier, Mr Sanjay Swarup informed that the annual volume discounts for shipping lines would also be applicable to the volumes they generate in ex-im transhipment through coastal shipping. CONCOR wants to extend the volume discount agreement for five years in order to facilitate a stable relationship between the lines and the company, he added. It is the confidence of customers in CONCOR that has helped it grow, he said, while seeking their continued support for the new initiatives like coastal shipping and distribution logistics centres.
