CONCOR and INLAND

CONTAINER PORTS  
Presented by:
Gauri Chitragar : 10020241043
Gautam Choudhary : 10020241044
Isha Varma : 10020241045
Manish Bajpai : 10020241046
Manisha Mohanty : 10020241047
Manoj Murmu 10020241048
Pankaj Bhatia: 10020241049
Rahul Dake : 10020241050
Abhinav Passi : 10020241032
 CONCOR
Container Corporation of India Ltd. (CONCOR), was incorporated in
March 1988 under the Companies Act, and commenced operation from
November 1989 taking over the existing network of 7 ICDs from the
Indian Railways.

It is now an undisputed market leader having the largest network of 59

ICDs/CFSs in India.

It has and will continue to play the role of promoting containerization of

India by virtue of its modern rail wagon fleet, customer friendly
commercial practices and extensively used Information Technology.

The company developed multimodal logistics support for India’s

International and Domestic containerization and trade.
“
MISSION STATEMENT

To join with our community partners and stake holders to make

Concor a company of outstanding quality by providing
responsive, cost effective, efficient and reliable logistics
solutions to customers through synergy with our community
partners and ensuring profitability and growth. We strive to be
the first choice for our customers. We will be firmly committed
to our social responsibility and prove worthy of trust reposed in
us.”
 Awards and Achievements
• CONCOR has over the years demonstrated that a public sector enterprise
can not only grow profitably, but also contribute significantly to the growth
and economic development of the country. The excellence in performance
has resulted into due recognition and awards for the company, the most
recent of which are as under :

• MOU excellence awards for four consecutive years (2004-2008)

• ƒ Iso-9001:2000 quality systems certification for 35 terminals/units

obtained upto FY 2007-08.

• ƒ Top Indian company in the shipping and logistics sector for the dun &
bradstreet- American express corporate awards, 2007 & 2008 consecutively.

• ƒ Concor has received corporate excellence award from amity international

for the year 2007.
 Core Business
Carrier :
• CONCOR benefits from a close relationship with the Indian
Railways. Several of its terminals are situated on leased Railway-
land
• Majority of CONCOR terminals are rail-linked, with rail as the main
carrier

Terminal Operator
• CONCOR's terminals provide a spectrum of facilities in terms of
warehousing, container parking, repair facilities, and even office
complexes.

Warehouse Operator
• The key value it offers is the provision of a single-window facility co-
ordinating with all the different agencies.
 Summary of Financial Reports*
Quick Financials

• EPS(Rs.) : 60.87
• P/E: 18.89
• Face value: Rs 10
• Market cap: 14948.02 (in Crore)
• Book value per share(Rs): 289.44
• Dividend per share(%): 140

• P & L in a nutshell ( In Crore)

• Net Sales: 3417.16

• Other Income: 211.09
• Operating Profit: 1142.15
• Depreciation: 115.91
• Tax: 234.73
• March 2009 Net Profit: 791.20
*The figures have been taken form their website
Facilities and Services
International Domestic

Services Tariffs Services Tariffs

Train Services Train Services

Volume
Air Cargo
Discount
Movements
Scheme

Door
Bonded
Delivery/
Warehousing
Pickup
 Air Cargo Services
• CONCOR entered Air Cargo services in 1999,
to provide Intermodal logistics solutions to
India’s trade.
• It undertakes various air cargo activities –
1. Road Feeder Services
2. Air cargo complexes and Centres for
Perishable cargo.
3. Bonded & other warehousing
 Bonded Warehousing
• It was first tried out at Bangalore.
• It offers dual advantage to the importers.
Allows deferral to duty payment &
Allows cargo to be stored under cheaper
option of warehouse storage.
• Bonding of cargo is very cost effective since
warehouses are located in close proximity to
ICDs.
 Reefer Services
• Reefers facilitate the movement of cargo that
requires strict temperature controlled
environment.
• Running of reefer services requires a certain
degree of Infrastructure development at the
handling terminals. CONCOR has made such
facilities available at the terminals.
• A “clip on” generator is attached to supply
power to the refer units.
 Discount Schemes
• CONCOR has special incentive schemes
keeping in mind the existing business trends.
• Special volume linked incentives are offered to
shipping lines and exporters.
 Domestic Facilities
• Introduction
 The modal split between rail and road has shifted from
80:20 to 40:60 in recent times.
 Though CONCOR, was incorporated in March 1988, it
embarked on the transportation of domestic cargo only in
1991.
 A separate Domestic Division was therefore created in
December 1997.
 There are at present 5 exclusively domestic terminals.
 Domestic cargo is carried is the standard 20ft container
 CONCOR engages reputed freight forwarders.
 Classification of Commodities

• CC(carrying capacity)
– These are heavy commodities
– According to Indian railways 5 specific commodities are CC
1. Cement

2. Iron and Steel

3. Petroleum and hydrocarbons

4. Grains and Pulses

5. Edible Salt
 Classification contd..
• M (mixed goods)
– Commodities other than the five listed above, which have
'CC' loadability in the Railway Goods tariff are included in this
category

• W (weight condition)
– These are light commodities which have loadability less than
'CC' even after occupying the total space of a container
 Volume Discount Schemes

a) For Business Associates

Teus booked per month VDS as % of chassis‐chassis rail freight

For achieving minimum monthly target 1%

If monthly target is exceeded by 25% 1.5%
If monthly target is exceeded by 50% 2%
If monthly target is exceeded by 100% 2.5%

b) For other customers

Teus per month VDS/teu (Rs)

Upto 29 teus Nil

>29‐60 150/‐
>60 200/‐ 
 Door delivery and pickups

• The prime objectives of the domestic division is to bring

back to rail, goods which are now being transported by road
• Concept of door pick ups and delivery takes them one step
closer to achieving the primary objective of becoming a
truly multi-modal logistics service provider
• Advantages
– Paper work can be completed at the customer's door, and the
customer need not visit the terminal at all
– In certain cases unloading of cargo from containers, and the
delivery of loose cargo at the customer's requirements is done.
 Cabotage of ISO container
• A "cabotaged" container is effectively loaned by the shipping company to
the carrier (in this case CONCOR) for a very short period (usually a single
one way trip) ,the carrier is permitted to use the container for movement
of domestic cargo.

• Advantages:-
– CONCOR can therefore offer a substantial discount to both shipping lines and the
potential domestic client.
– CONCOR does not posses any 40 ft. Containers in its domestic fleet, all domestic
movements in 40 ft. containers is done by cabotaging international 40 ft.
containers

• CONCOR regularly offers Cabotage services on it's core exim route

between Mumbai and Delhi.
 Strengths
• Incumbent player with a significant market share and margins significantly
higher than the other players.Concor accounts for one-third of the
country's EXIM container traffic.

• Infrastructure advantage - 8,200 wagons, 175 rakes operating per year, 57

terminals; the company plans to add to this infrastructure to take
advantage of the expected growth in EXIM trade.

• The company also owns its terminals, which is a substantial advantage

given that other players pay close to 40% of their freight revenue as
terminal charges.
• Significant presence at JNPT and other major Indian ports.
• Long-standing relationship with Indian Railways.
 Weaknesses
• Poor asset maintenance has led to lower efficiency
and clogged capacities.

• Top 20 terminals handle 83% of total volumes. So the

balance 65% of terminals handled only 17% of the
total volumes. Consequently there is large portion of
capacity not being optimally utilized
 Opportunities
• Increase in the penetration of containerization - in India is currently at
60% vs 80% globally. we expects the penetration to improve to 75% driven
by cost advantages in favor of containerization.
• Indian railways have planned to build dedicated rail freight corridors
(DRFC) which will exclusively cater to freight trains. These corridors will
greatly improve the freight transportation across India.These corridors will
greatly improve the freight transportation across India leading to faster
development of the country.
• Substantial growth expected in international trade, according to estimates
from the Ministry of Trade and Commerce.
• Rapid growth of organized retail and agro processing industries and strong
FDI inflows into various industries should lead to enhanced market
opportunities for logistics services.
 Threats
• Entry of new players into the container train operations business.
Fourteen new operators have signed the concession agreement with
Indian Railways to run container trains for a period of 20 years, extendable
by another 10 years.

• High land acquisition costs for developing ICDs imply that the sector is
capital-intensive.

• Business depends on international trade to a great extent. Thus

companies in the sector are exposed to geopolitical risk.

• Competition from truck operators.

New initiatives
 E-FILLING SOFTWARE
• E-Filing software is a web based application of CCLS
system .
• objective of this software is to provide one platform
for entire import/export trade to perform online all
their commercial transactions .
• any importer/exporter/shipping agent can file his
documents including billing and take necessary print
outs.
Hub and spoke
 COASTAL SHIPPING
• “India has a long coastline of 5,560 Kms.,
having access to the sea on three sides with
11 major and 168 minor/intermediate ports.”
• Equity stakes in coastal shipping lines.
 REEFER LOGISTICS
• Today 85% of the cold storages are in the private
sector and not a single complete cold chain solution
provider is available in the market.
• Reefer services between Delhi and Mumbai.
 TOTAL LOGISTICS SOLUTION
• The market size of logistical sector in India is about Rs 437,000 crore.
• Only 10 per cent of this sector is organised and hence it is largely a
fragmented market. Transportation in the logistics industry accounts for an
approximate Rs 138,000 crore.
• About 65 per cent of the domestic freight is carried out by the road
segment; the remaining by rail segment, whereas other modes are almost
negligible.
• With the predicted increase in investments in the agriculture,
manufacturing, construction and infrastructure sectors, the complete
logistics sector is expected to boom.

(http://www.projectsinfo.in/News.aspx?nId=dvERoQ+i3gFYh8jNpUBdrQ==)
 TOTAL LOGISTICS SOLUTION
• The industry is estimated to grow steadily at a Compound
Annual Growth Rate (CAGR) of 10-15 per cent in the coming
years.
• Trends indicate that the current size of the project logistics
market should be Rs 20,000 crore and should grow at a
CAGR of 18-20 per cent.
• By 2012, the project logistics industry is expected to reach
around the Rs 45,000 crore turnover mark.

(http://www.projectsinfo.in/News.aspx?nId=dvERoQ+i3gFYh8jNpUBdrQ==)
 TOTAL LOGISTICS SOLUTION
• TCI+CONCOR = INFINITE LOGISTICS SYSTEM.

• about Rs 50 crore to be spent in the next three years.

• Golden Rock unit to make longer container wagons.

• The present size of the wagon fleet in use

on CONCOR's network is approximately 8374 wagons,
of which more than 85% are owned by the company