The Hindu Business Line : Concor to hike rates by 3-6 pc from Nov

Rising costs
Rlys haulage rate hike to take effect on Nov 1
Concor paid Rlys Rs 832.32 cr in April-Sept
Wagon tender likely to be firmed up by month-end

New Delhi , Oct 17

Concor has decided to hike tariffs by 3-6 per cent depending on the weight and distance of containers to be moved.

This follows an increase in haulage charges brought about by the Railways recently.

The Railways imposes haulage charges on container operators for allowing them to use its infrastructure such as rail track and signalling system.

For April-September 2006, Concor paid the Railways total haulage charges of Rs 832.32 crore, up 43 per cent from the corresponding previous period.

Of this, 17-18 per cent is on account of increase in volume of containers moved and 23-24 per cent on account of increase in haulage charges this year. Since the Railways haulage rate hike would come into effect from November 1, Concor's new tariffs would be imposed from the first week of November.

"The Railways increased the haulage charges by an average of 5-10 per cent. We have decided to pass on some portion of the hike to our customers and absorb some of it. We have decided to increase our rates on an average of 3-6 per cent," said Mr Rakesh Mehrotra, Managing Director of Concor.

Concor has also said that it would be finalising its order for 900 high-speed wagons after it places the order for wheels, because it would procure these wheels and provide them to wagon builders.

"We are negotiating the tender for 8,100 wheels with four sources (from Europe) who have quoted their bids. Once we finalise the wheels order, we would firm up the wagon tender."

He added that the wagon tender is likely to be firmed up by the month-end or by early November.

The delivery of wheels is scheduled for 2007-08 and 2008-09.

AUTO PROJECT

Concor also plans to rework the business plan for its automobile venture through which it proposes to move automobiles using specially designed containers.

Having already tied up with NYK Liner for the project, Mr Mehrotra today said that the company was not averse to adding more partners for the venture.

Concor is waiting for the Railway Board to decide the haulage rates for moving specially designed wagons. "The project is at an advanced stage."

COLD CHAIN PROJECT

On the cold chain project launched by Concor's wholly owned subsidiary, Fresh and Healthy, Mr Mehrotra said that the company had already procured 400 tonnes of apple this season from Himachal Pradesh and sold them in mandis in Delhi and Haryana.

The company plans to procure about 1,600 tonnes in the ongoing apple procurement season.

Refusing to divulge exact details, Mr Mehrotra said that the margins were upwards of 20 per cent in this business.

The company registered a net profit of Rs 189.34 crore for the quarter ended September, against Rs 122.14 crore in the corresponding previous period.

More Stories on : Supply Chain Management | Railways | PSU

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Easterly wave comes calling as Bay warms

Tatas make $10-b bid for Corus

Jet Airways posts Rs 55.1-cr loss in Q2

HDFC Bank net rises 31 pc in Q2

Most indices in red despite Sensex shining

Rain group stocks active on merger plans

Attrition rate at TCS at 10.6 pc

Concor to hike rates by 3-6 pc from Nov

MTNL launches Net TV in Capital

Commodities may recover on tight fundamentals