Wednesday, May 5, 2010

Indian Rail Freight Company Looks To Invest In More Container Terminals

Ambitious Plans for Expansion Announced
Shipping News Feature

INDIA – The Managing Director of India’s state-owned rail freight operator, Container Corp. of India (Concor), has revealed plans to invest some USD$670 million over the next five years to boost the Indian railways container capacity by fifty percent.

According to reports in Bloomberg, Anil K. Gupta, MD at Concor, said that he intended to use the money to build twenty-five new rail container terminals, as well as boosting the company’s locomotive fleet substantially.

Last year, rail freight in India shipped some 3 million TEU’s, but with India’s economy attracting more manufacturers, as well as ambitious plans to extend and improve the rail network, this figure is expected to rise dramatically in the near future, with the value of the country’s logistics market projected to expand by two-thirds by 2014.

The news comes as little surprise to industry watchers in the subcontinent, who note that Concor’s strong market position, as well as investments in container-handling ports at Mumbai and Cochin, makes it in the company’s interest to maximise container freight in India.