The Hindu Business Line : ‘The cake is large enough for several players to share’

Indian ports handle 7.5 million TEUs annually, and Concor accounts for around two million of these. In the next few years, container throughput in the major and non-major ports is expected to double.

MR ANIL K. GUPTA, DIRECTOR (DOMESTIC), CONCOR

Santanu Sanyal

recently in Guwahati

Mr Anil K. Gupta joined the Indian Railways in 1983 as an IRTS (Indian Railway Traffic Service) officer. He has been with the Container Corporation of India (Concor) right from the time it was set up in 1989, and opted for absorption in the same organisation in 1995. Mr Gupta spoke to Business Line during his recent visit to Guwahati to attend the annual tea workshop organised by Concor.

Excerpts from the interview:

The year 2008-09 must have been very challenging for Concor…

In a sense, yes. Our throughput in 2008-09, at 2.3 million TEUs, was marginally lower than previous year’s 2.4 million TEUs. But I must point out that the challenge was always there.

There was competition from the road sector when we were the sole container train operator and, for the past couple of years, we’ve been facing additional competition from several private container train operators that have emerged on the scene, though not all of them are equally active. Some have even been non-starters.

How do you face this challenge?

I’ve always felt that the size of the cake is large enough for every player to get a share. The Indian ports handle a total of 7.5 million TEUs annually, roughly, but Concor accounts for around two million TEUs. In next few years, the container throughput in the country’s major and non-major ports together will, it is estimated, double.

Also, the level of containerisation is increasing. Earlier, it was around 45 per cent or so, now around 60 per cent. The capacity of existing ports too is increasing. New ports are emerging too, and some of the new ports — we’ve initiated discussions with a few of them, mostly in private sector — are very aggressive. There is another point.

The level of penetration into the hinterland leaves much to be desired. Thus there is enough scope. Frankly, I’m very hopeful.

Will you continue to pursue the present strategy of concentrating on only one port, JNPT ?

No. I sincerely feel the time has come when we should look at other ports, even by taking risks.

Other ports?

Yes. For example, in Chennai. Chennai Container Terminal Ltd (CCTL) is handling one million TEUs annually but our share is limited to a meagre 15 per cent of it. We must step it up. There are several new ports coming up, both on the east and west coasts and we have to tap them.

On the east coast, there are Dhamra, which will be ready next year, and Krishnapatnam, already operational, to name a few. On the west coast we are partners of DP World in the Vallarpadam container terminal project. In JNPT, we are already a partner of APM Terminal in GTI. We are extending services to Mundra and Pipavav ports.

You referred to risk. What risk?

By risk what I mean is that initially the cargo inducement may not be adequate in some of these new ports but that should not be a cause for concern. I’m convinced that the benefit in the long run will be substantial.

Take, for example, the new and modern container terminal at Visakhapatnam port. We have an MoU with VCTPL, the joint venture private firm that operates the terminal, to provide support on demand basis.

Unfortunately, the traffic to and from North India is not picking up but we have not given up. We’re connecting the Vizag terminal with nearer hinterland. We are already running services to and from the Vizag terminal for Vedanta, for both exports and imports. Our Vizag CFS (container freight station) is doing well.

Are you going slow over launching new terminals?

Not really. We have our facilities at 59 locations, Durgapur in West Bengal being the 59th, launched just a few days ago. Madhosing, near Varanasi, a centre for manufacturing carpets, was the 58th one. But we would like to proceed selectively in this matter.

Our next terminal will be at Khemli, near Udaipur in Rajasthan and we’re also expanding the capacity of some of our existing terminals, such as Bangalore and Amingaon (Guwahati), and identifying new locations along the proposed dedicated freight corridor.

In some places, the new facility will cater to domestic trade, in others to foreign trade, and in some places, both.

Do you run your terminals with your own equipment?

In our key terminals at Tughlakabad, Dadri, Tondiarpet and Ludhiana, we deploy our own equipment, and in the others, we use hired equipment. We are acquiring 40 reach stackers in addition to the 26 we already have.

How many rakes do you have?

Concor has a total of about 200 rakes. We added 32 rakes in 2008-09 and would like to acquire another 28 in 2009-10. No private operator can match Concor in terms of infrastructure and reach.

Does that make you complacent?

In today’s competitive environment, there is no room for complacence. As I’ve told you, we are constantly adding to our capacity and looking at new opportunities.

Are you tapping any new cargo?

Reefer cargo holds out big promise for us. It is niche cargo but we see potential in it. Last month we operated one reefer train a day to JNPT/ Turbhe (the location of our domestic terminal in Mumbai). We propose to run a similar service to Pipavav.

Earlier, there were hardly any reefer imports into the country but the scene has changed. Chocolates and fresh fruits are coming into the country from outside, giving us more business. We are also setting up a reefer container repairing facility at Dadri.

What is your major concern right now?

Right now, my major concern is the global recession. Export-import traffic accounts for about 80 per cent of our total throughput. With the downturn in the world economy, our export-import traffic has taken a hit. The situation will change only when global demand picks up. The sooner it happens, the better for us.

More Stories on : Interview | Supply Chain Management

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

Stories in this Section
Is the equation between travel agents and airlines changing?

Service in sky may be 5-star, but on ground, it’s different

Pipavav crane uplifts productivity

Tea loading made easier and faster

Hapag-Lloyd may ship office to Asia

Tackling overcapacity

‘The cake is large enough for several players to share’

Rly Board chief holds review meetings