Concor plans JV for common rail services at JN Port

Multi-modal logistics operator Container Corporation of India Ltd (Concor) is planning to team up with Jawaharlal Nehru Port Trust (JNPT), Danish shipping major Maersk India, and UK-based P&O Ports for setting up a common rail operating entity at JN Port, Navi Mumbai.

The common rail operating proposal from Concor, which handles over 56 per cent of container traffic in India, comes in the wake of the third container terminal coming at the port. Currently, Concor enjoys the monopoly of containerised freight transportation in the country.

Rajeev Sinha, general manager, Concor, confirmed the company had given a presentation on the common rail operating concept to JN Port, Maersk India and P&O Ports offcials.

"The idea is to have a single rail operator for three container terminal operators at JN Port for handling inland container depot (ICD) traffic. However, the modalities of partnership for such a facility is yet to be finalised," Sinha said.

Over 40 per cent of the container traffic at JN port is headed to ICD. Concor runs 12 trains a day on an average basis, to the existing two container terminals of JN Port for evacuating the cargo.

According to industry analysts, the port would require atleast 20 trains a day to evacuate the cargo once the third container terminal becomes operational.

The third container terminal is operated by a consortium led by Maersk India and Concor - Gateway Terminals of India (GTI).

At present, Concor is operating mixed cargo train service to JN Port for the port's own container terminal and Nhava Sheva International Container Terminal run by P&O Ports.

"Handling mixed cargo at two different container terminals is time consuming. Moreover, Concor is concerned about running empty trains while returning from the port when it handles export cargo," sources said.

Soruces said the common rail operating concept would require additional investment as it needs to acquire land in the JN Port premises.

"As already the port is witnessing congestion and space constraints, it will be impossible to allocate more space. Moreover, this will mean additional cost to the shipper in a later stage," they pointed out.

Meanwhile, JN Port has put forth a proposal of the container terminals themselves handling cargo specified for each container terminals. R T Revankar, chief manager (Operations), JNPT, said the proposal was at a preliminary stage and a committee had been constituted for examining the alternate mode of operating more trains into JN Port without additional cost and time delay.

The committee, consisting of representatives of Concor, the railways and the three terminals, is expected to submit its report in two months. However, industry analysts pointed out that state-run Concor is planning to monopolise the JN Port's container operations as the Planning Commission is seriously considering the proposal of privatising the containerised freight transportation in the country.