CONCOR ex­pand­ing fast

In a can­did con­ver­sa­tion, P. Alli Rani, Direc­tor-Fi­nance, CONCOR, high­lights how the com­pany is striv­ing to re­duce lo­gis­tics costs on a par with in­ter­na­tional stan­dards.

Cargo Talk - - Railways - P. Alli Rani,

What trends do you see for the com­ing year?

The GST bill is ex­pected to change the sce­nario in the lo­gis­tics sec­tor. This tax is tar­get­ing the do­mes­tic trade. Move­ment of goods within the coun­try is a prob­lem be­cause in­ter­state is­sues are not only due to tax­a­tion but other rea­sons also. GST will bring changes. Credit mech­a­nism will get in­tro­duced. In cur­rent times, the states and cen­tres levy their own taxes al­to­gether. Tax lay­ers have been formed and there is no credit fa­cil­ity. Af­ter the bill, tax lay­er­ing will end. It makes the prod­uct eas­ier to move in­side the coun­try.

To­day, the dis­tri­bu­tion is di­rectly through re­tail ware­hous­ing but af­ter GST, there will be hub ware­hous­ing. With GST there will be huge de­mand of mul­ti­modal lo­gis­tics parks, es­pe­cially rail con­nected Mul­ti­modal Lo­gis­tics Parks (MMLP). CONCOR pro­vides this. Three years back, we did not have ter­mi­nals to ac­com­mo­date the de­mand but in the last three year ten­ure, we have created rail con­nected MMLPs on ter­mi­nals which are 10 times larger than the

size we used to con­struct. What made you say ‘no’ to rail con­nected ware­houses three years back? We didn’t say no. But at that point of time, land was an is­sue. As a PSU, we find land ac­qui­si­tion now is more or­gan­ised with clearer rules and pro­ce­dures.We are suc­cess­ful in get­ting land at strate­gic lo­ca­tions which are suited for rail con­nected ware­hous­ing.

More­over, the state govern­ment has be­come de­vel­op­ment ori­ented in the last three years and they have shifted their fo­cus on in­fra­struc­ture cre­ation. We have in­creased our cap­i­tal ex­pen­di­ture (capex) four times. We have in­vested our sur­plus in tak­ing land for set­ting up rail con­nected ware­houses.

We have in­creased our cap­i­tal ex­pen­di­ture (capex) four times. We have in­vested our sur­plus in tak­ing land for set­ting up rail con­nected ware­houses

How is DFC go­ing to help the trade, par­tic­u­larly CONCOR?

We are look­ing for­ward to DFC be­cause the ma­jor con­straint is less num­ber of tracks, es­pe­cially on a route which gen­er­ates most de­mand for our ser­vices. The route which con­nects the western port of Con­tainer Cor­po­ra­tion of India (CONCOR) and Con­ti­nen­tal Ware­hous­ing Cor­po­ra­tion (Nhava Sheva) (CWCNSL) have signed an agreement where CONCOR rakes have been pro­vided ex­clu­sive ac­cess at the three rail con­nected ter­mi­nals of CWCNSL at Pa­ni­pat, Jawa­har­lal Nehru Port (JNPT) to hin­ter­land. To­day, the ma­jor por­tion of in­ter­na­tional trade is dealt with the western port, mainly the JNPT, and new ports such as Pi­pavava and Mun­dra Port. Any con­nec­tiv­ity to the hin­ter­land for goods is best done by rail­ways. On a longer lead, rail­way is 30 per cent cheaper than road. But there are other es­sen­tial fac­tors which in­ter­na­tional trade de­rives by opt­ing for rail. They are cost, speed and security of cargo. If cargo has to go in a sealed con­tainer then the con­tainer, weight has to be car­ried by road which makes it ex­pen­sive. Sec­ondly, there is no custom ex­am­i­na­tion at the port. A per­son who is 1,000 km away in his fac­tory need not go to the port for clear­ances ei­ther for im­port or ex­port. The sealed Lakhwada and Thimma­pur. The syn­er­gies be­tween the com­pa­nies are likely to give a much needed boost to the move­ment of both EXIM and do­mes­tic con­tainer­ised cargo by rail in the catch­ment ar­eas of these three ter­mi­nals. With this agreement, trade con­tainer con­tin­ues its jour­ney on a train right to the doorstep. The dry port will do all the clear­ances for them. It’s the third com­fort. The sealed con­tainer is very es­sen­tial for the ex­porter. For ex­am­ple, if we talk about ex­port­ing gar­ments on hang­ers, it has to go hung on a shelf. Hence, it is best if it goes on a sealed con­tainer to make it per­fect for sell­ing by the time it reaches the des­ti­na­tion. To­day, all the ex­porters are un­able to get rail ser­vices be­cause we don’t have enough tracks in the coun­try to run many con­tainer trains. We get to run only spe­cific amount of trains, through which we can cater to max­i­mum 30 per cent of the re­quire­ment of in­ter­na­tional trade. The DFC will change the en­tire story. will de­rive huge ben­e­fit from re­duced first and last mile con­nec­tiv­ity costs as well as from 24x7 ac­cess to these ter­mi­nals. More­over, the trans­ac­tion cost of im­ports and ex­ports is likely to come down once the oper­a­tions start. How much growth do you expect with DFC?

With DFC, there will be a huge dif­fer­ence in vol­ume. To­day, a train with 45 wagons can carry 90 TEUs; this train will make a trip from the hin­ter­land to the western port may be in a pe­riod of 48-60 hours de­pend­ing on the cir­cum­stances.

Direc­tor - Fi­nance, CONCOR

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