Concor plans foray into coastal shipping

As part of its plan to become a multi-model logistics service provider, the Container Corporation of India Ltd (Concor) is all set to enter into the coastal shipping business.

The company is eyeing to pick up equity stake in sea-going vessels and identify strategic partner with adequate experience and resources.

"At present, we are studying the aspect of entering into coastal shipping. Venturing into coastal shipping will depend upon the relative growth potential and profitability of the segment," P G Thyagarajan, director, international marketing and operations, Concor told Business Standard.

Concor's interface with coastal shipping can easily be established by undertaking all port operations for coastal vessels or only taking up the rail interface for such vessels at port terminals and providing hinterland connectivity.

Apart from coastal shipping, a key business area with high potential for Concor's growth is the provision of cold chains, which involves providing transportation to perishable products from source to end-user, while maintaining a certain temperature along the route.

"At present, over 85 per cent of the cold storages are in private sector and not a complete cold chain solution provider is available in the market. Absence of reefer container linkages, along with high and increasing power costs are providing to be major impediments," said a senior official of Concor.

Concor is already providing basic rail-based reefer services between Delhi and Mumbai, and could get into providing cold chains by making a few arrangements that would expand its market presence.

Concor is looking for tie up with an international major. The company plans to organise terminal to factory transport, refrigerated warehouses-where needed, and delivery, while maintaining both temperature controlled environments, as well as transit commitments.

The company further plans to identify viable corridors for specific products, which requires tying up with producers and consumers independently or to tie up with food producers and consumers and independently or tie up with food processing major to distribute its products.