Container Corporation of India Ltd (Concor) will venture into the coastal shipping business by hiring two ships for 10 years each.

The state-run rail hauler of containers has sought bids from fleet owners to hire two Indian flag vessels of 22,000 dead weight tonnes (DWT) with a capacity to carry at least 700 twenty-foot equivalent units (TEUs) each, according to a tender issued by the Navratna PSU on May 12. The ships should not be more than 12 years old, it added.

The ships will be hired for an initial period of five years which can be extended by another five years at stretches of three and two years.

Concor’s move is aimed to strengthen infrastructure along the East-Coast and West-Coast Corridors, and to diversify its services.

The entity winning the bid will have to arrange port handling and coastal transportation of bulk/break-bulk cargo and loaded and empty containers between Kandla International Container Terminal at Deendayal port trust (formerly Kandla port trust) in Gujarat and New Mangalore port trust, Cochin port trust and VO Chidambaranar port trust.

The rate finalised through competitive bidding will remain valid for the entire contract period except for variation in bunker fuel prices (BFP), which Concor, on bidder’s request, will increase at six monthly frequency at the rate of 0.45 per cent for every 1 per cent increase or decrease in base BFP due to any government notification.

The winning bidder will be bound by a non-compete agreement whereby it will not be allowed to handle containerised/bulk/break bulk cargo for other enterprises in Indian coastal waters.

Concor is India’s top container train operator running 317 container carrying rakes.

It also runs a nationwide network of 75 container terminals comprising inland container depots, container freight stations and domestic container terminals.

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