Centre has set in motion a plan to foray into the global container shipping business, which will be led by Container Corporation, and has commissioned a study by consultants for a roadmap in this regard, media reported on November 19 citing sources.
This assumes significance in light of the challenging geopolitical scenarios emerging out of the middle-east, and the disruption in Arabian Sea trade route seen in the last year or so. Shipping companies have reported more erratic vessel schedules, as well as congestion in transshipment at ports. The emerging risks to international sea trade has also meant availability of fewer slots in vessels for exports.
The company has a market capitalisation of nearly Rs 49,000 crore. Shares of Concor are higher by 2% during trade on November 19, but so far this year, they are down by 7%. Container Corporation Of India, or Concor, is in the business of inland transportation of containers by railways, and covers the management of ports, air cargo complexes as well as cold chains.
During H1FY25, India’s international trade was $213.22 billion, a growth of 1% over H1 of last fiscal. India’s import was $350.66 billion, a growth of 6% over last financial year. Concor has increased its share in India’s EXIM trade on a pan-India basis by 91 basis points. This increase has been driven through Pipavav Port and Mundra Port, Concor said. Concor has also been adding more containers and has earmarked a capex budget of Rs 610 crore for this fiscal. Despite global challenges, Concor’s share of exports has risen for products like readymade garments, paper products, food items, while imports of solar modules and wood pulp saw strong growth, as of September 30. Concor also said the company has seen an increased global demand for India’s rice exports too.
Based on these factors, Concor said it is confident of meeting its guidance for the full year.