Container Corporation of India Ltd. is planning large-scale expansion of its networks and removal of blockades in an effort to improve its efficiency and boost growth in trade. The budget allocation for this project may go as high as $670mn for the next five years.
Anil K. Gupta, MD, Container Corporation said, “If we are able to provide these facilities, then trade will grow at a much faster rate.” The expansion plans may involve building of 25 new rail container terminals and 20-25 additional trains a year.
With companies such as Bridgestone Corp. and Daimler AG building new plants in the country, the rail container traffic has the potential to grow as much as 50%, if improved facilities are in place. Container Corp. has formed joint ventures with companies such as A.P. Moeller- Maersk A/S and DP World Ltd. to exploit the opportunities in the sea-cargo scene.
Mr. Gupta confirmed that the corporation will be spending Rs. 12bn over the next two years. The expansion effort may continue in the same vein for three more years, though the plans are yet to be ratified.
With the intended expansion, Container Corp. will be able to provide better services such as storage and handling. He said, “It is not a question of the availability of cargo but the kind of services that are required.” Mr. Gupta clarified that the expansion would be funded fully from internal cash reserves.
Container Corporation of India Ltd. has 59 rail container terminals spread all over the country and owns 220 rakes, each having 45 wagons carrying two containers per wagon.
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