Container Corporation of India (1)

8/2/2019 Container Corporation of India (1)

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The Company CONCOR was incorporated in 1988 CONCOR was set up to profitably satisfy customer's needs

for high-quality, cost-effective logistics services

A network of more than 61 terminals, offering scheduled and

on demand rapid rail and road services between thehinterland and ports, and between major metros

CONCOR's mission Is to provide efficient and reliable multi-modal logistics

support for the country's Exim and Domestic trade and

commerce To ensure enhanced customer satisfaction, growing

shareholder value, high growth and consolidation of status asmarket leader


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Core BusinessCarrier

Rail remains the main stay of CONCOR's transportation

plans, currently

Benefits from a close relationship with the Indian

Railways which is price-competitive over long distances

WarehouseOperator

TerminalOperator

Custom Bonded Inland Container Depots (ICDs)

Container parking, repair facilities, office complexes &

Banks

State of art handling equipment

Transit warehousing of EXIM Cargo

Bonded Warehousing

Less Than Container Load (LCL) Consolidation

Air Cargo Clearances using bonded trucking


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Quick Financial Summary

0

5000001000000

1500000

2000000

2500000

3000000

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

International

Domestic

Total

Source : http://www.concorindia.com/corpFigure.asp

TEUs
http://www.concorindia.com/corpFigure.asphttp://www.concorindia.com/corpFigure.asp


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Facilities & Services


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International Facilities & Services

AIR CARGO SERVICESVarious air cargo activities :

Road Feeder Services

Complexes and Centers for Perishable cargo

Bonded & other warehousing

BONDED WAREHOUSING

Advantage to the importers :-

Allows deferral to duty payment

Allows cargo to be stored under cheap operationof warehouse storage

Bonding of cargo is very cost effective sincewarehouses are located in close proximity to ICDs


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Domestic Facilities & Services

VOLUME DISCOUNT SCHEMES(VDS):

a) For Business Associates

b) For other customer

Teus booked per month VDS as % of chassischassis rail freightFor 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%

Teus per month VDS/teu (Rs.)

Up to 29 teus Nil

>2960 150/-

>60 200/-


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cont.

DOOR DELIVERY AND PICKUPS

This concept 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 fromcontainers, and the delivery of loose cargo at the

customer's requirements is done


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cont.

CABOTAGE OF ISO CONTAINER

A "cabotage" container is effectively loaned bythe shipping company to the carrier (in this caseCONCOR) for a very short period (usually a single one way

trip), the carrier is permitted to use the container formovement of domestic cargo.

Advantages:-

CONCOR can therefore offer a substantial discount toboth shipping lines and the potential domestic client

CONCOR does not posses any 40 ft. Containers in itsdomestic fleet, all domestic movements in 40 ft.containers is done by cabotaging international 40 ft.containers


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Strategies To increase penetration in the hinterland, CONCOR

has invested over 100 crore to add four more terminalsto its existing chain of 61 ICDs

Setting up dedicated air freight stations, expanding

the network of inland container depots (ICDs), takingup stakes in ports, exploring options of starting coastalshipping services with

shipping lines

offering cold chain storage services.

agreement with a consortium led by DubaiPorts World to operate a container terminal that iscoming up at the Vallarpadam port near Cochin


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SWOT AnalysisStrength Incumbent player with a

significant market share Infrastructure advantage Tax benefit under sec 80 IA Long standing relationship

with Indian Railways

Weakness Poor assets maintenance Top 20 terminals handle

83% of total volumes. Sothe balance 65% of

terminals handled only 17%of the total volumes

Opportunities Emergence of new ports

DRFC by Indian railways Increase in the penetration

of containerization Increasing the train length

& the train load capacity

Threats Entry of private players

Competition from truckoperators

High land acquisition costsfor developing ICDs

International trade geopolitical risk


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E-FILLING SOFTWARE E-Filing software is a web based application

Objective of this software is to provide one platform forentire import/export trade to perform online all theircommercial transactions

Any importer/exporter/shipping agent can file hisdocuments including billing and take necessary printouts

COASTALSHIPPING India has a long coastline of 5,560 Kms.,having access to the

sea on three sides with11 major and 168 minor/intermediate

ports Equity stakes in coastal shipping lines & identify a strategic

partner with adequate experience and resources

New Initiatives


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HUB & SPOKE Basically competition from truck

operators offering transportationby road is on the basis of price anddependability. Volvo trucks, withvastly reduced transit times arechallenging the rail transit timesof CONCOR.

For offering the reach anddependability of road services, theconcept of "hub and spoke"operations became crucial in thecompany's long termdevelopment

Hub and Spoke operations arefeasible for both the international

and domestic business segments Such operations involve the linking

of road or short lead rail shuttleservices within defined catchmentareas, to long lead point to pointtrain services

New Initiativescont.


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TOTAL LOGISTICS SOLUTION

TCI+CONCOR = INFINITE LOGISTICS SYSTEM.

Advantages offered by CONCOR as Logistics Service

Provider :- Efficient rail transportation of containers

Massive warehousing capacity

Country-wide network

Large fleet of containers Relationship with top-end customers

Relationship with various intermediaries in logistics

Intellectual capital.

New Initiativescont.


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THANK YOU

Documents

Container Corporation of India (1)