Concor, the state-owned Container Corporation of India, the largest player in container rail movement, did not do as well as it expected, conceded managing director Anil Gupta in an interview with India's DNA (Daily News and Analysis), reflecting on his last quarter results.
    Mr Gupta chiefly blamed rising inflation in India and the oil spill at Mumbai that first slowed cargo movement by, causing a backlog through severe congestion, a problem that soon diverted ships elsewhere.
    "We were expecting a good growth, but that did not happen due to the oil spill in Mumbai. There was a big setback, an impact for almost four weeks. Many vessels bypassed the port and opted for Mundra and Pipavav. Clearance at these ports became an issue because these sections are single-lined sections. Thus, we did not get the expected volumes, Mr Gupta said.
    "There has been an improvement in our bottom-line because we are exercising a very strict control on costs. Similarly, leads in domestic traffic have reduced as traffic on the Bangalore-Delhi route has reduced, he said.
    Asked what the main factors affecting these routes were, he said: "The reason for reduced movement or lead is the inflation situation in the country, which has resulted in certain fundamental changes in the flow of goods. The movement of goods like pulses, rubber and sugar between the north and south has gone down."
    Asked about the larger role played by private players in the rail container business, he said: "There are 15 private players who have made huge investments in this market totalling to one-third of the market. Four years back, there were expectations that a quarter of India's total volumes moved by rail will go up to 35 per cent to 40 per cent. That has not happened. The moment this happens, everyone will grow. We will try and maintain our share at 70 per cent to 75 per cent - that is our wish. In fact, even after four years of the sector opening up to private players we still have a strong presence against popular perceptions," Mr Gupta said.

Source: Shipping Gazette