Financial Daily from THE HINDU group of publications
Monday, Apr 05, 2004
Financial Daily from THE HINDU group of publications Monday, Apr 05, 2004 |
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Logistics
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Shipping Foray into box handling at ports — Concor chief `contains' rivals' fears P. Manoj
Miffed at Concor's entry into terminal business at ports, rival operators have reiterated their demand for allowing private entities to run container trains, which is currently the monopoly of Concor.
Protests against this move of the monopoly rail hauler of containers have grown louder ever since the Maersk-Concor combine last month emerged the highest bidder for developing and operating a new container terminal at Jawaharlal Nehru Port. Rival operators fear that Concor may divert trains to container terminals operated by Maersk such as Pipavav and JN Port (when the terminal starts operations) at the expense of other terminals. In fact, there are already allegations that Concor has diverted many rakes to Pipavav in March much to the detriment of the Nhava Sheva International Container Terminal (NSICT), the JNPT Container Terminal and the Visakha Container Terminal Pvt Ltd, among others. But the Concor Managing Director, Mr A. K. Kohli, strongly refutes all these accusations made by the trade and rival operators. "Concor is a government company. We cannot discriminate between one operator and another," he told Business Line last week. "Our stated policy is to connect all the ports whoever gives me one train load full of containers. We cannot run empty rakes. Concor operated more trains to Pipavav Port last month as the traffic justified the decision whereas terminals elsewhere were either facing huge congestion problems or had paucity of cargo," he said. Maersk has started a weekly direct feeder service connecting Pipavav Port with Salalah and also with Dubai. Given the limited number of wagons, rakes are placed wherever there is demand. "These cannot be called diversions by any means," he said emphatically stated. Besides, the railway line running directly to connecting Pipavav Port, which was commissioned recently, is relatively free and the turn-around time is very quick. Miffed at Concor's entry into terminal business at ports, rival operators have used this opportunity to reiterate their demand for allowing private entities to run container trains in the country, which is currently the monopoly of Concor. Given its vast network of inland container depots (ICDs) spread across the country, terminal operators and shipping lines are now dependant on Concor to haul their boxes to and from ports. Concor's alignment with Maersk for developing the new container terminal at JN Port had sparked fears that the former may increasingly patronise the terminals run by the latter. "Why are they getting scared? Last year, Concor had set up a Container Freight Station (CFS) at Dadri near Delhi in a joint venture with Maersk. We are in the final stages of setting up similar CFS's with other shipping lines and private operators such as APL, Transworld Group and P&O Ports at Dadri. I am willing to do business with anyone who can guarantee cargo to our rail heads," Mr Kohli said. On the issue of allowing private players to run container trains, he said that it was for the Railway Ministry to decide. Concor is a monopoly today, tomorrow "we don't know what will happen." The Government may allow the private sector to run container trains. "So, I am leveraging my strengths today to make Concor's future bright and secure," he said. Concor is on the look out for investments in other ports in the country and is open to the idea of picking up stakes in ventures associated with container handling. "It is only natural for us to expand into container handling at ports. Why should we remain confined only to running container trains? As a matter of fact, we were so close to inking an agreement with the Adani Group last year for the Mundra Port when P&O Ports suddenly stepped in and the entire plan collapsed. If somebody gives me good terms, I might consider putting money in more projects. But there is nothing at the moment," he asserted when asked whether Concor is picking up a stake in Pipavav Port. Mr Kohli said that Concor should have the flexibility to run its trains. "The more ports I have, the greater is my flexibility to operate the trains." Concor is even thinking of entering the shipping business if it would help the company become an end-to-end logistics solutions provider, offering a single window to its customers. "We are looking at actively doing it. But, it won't happen quickly, it will take some time," he quipped. According to Mr Kohli, the east coast ports will become important ports of call when India's trade with China/Far East improves. "I am very bullish about India-China trade."
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