NEW DELHI: The Container Corporation of India Ltd (CONCOR) has ventured into the silo storage business as it looks to diversify into distribution logistics, from a pure rail hauler of containers.
The state-run transporter, a navratna company, will build such grain storage facilities at Ahmednagar in Punjab, Vernama in G
ujarat and Khathuwas in Rajasthan, where it owns land and lease it to the Food Corporation of India for 30 years, besides running the silos for the government-owned food procurement agency.
“Now we are looking beyond transportation into distribution logistics and providing end-to-end solutions and value addition to customers on an all-India basis,” said a CONCOR executive. “Customers don’t need to own a warehouse, they can take warehouses on lease from us,” he said, asking not to be named because he is not authorised to speak to the media.
Concor is India’s top container train operator, running 317 container carrying rakes. It also runs a network of 75 container terminals comprising inland container depots (ICDs), container freight stations (CFSs) and domestic container terminals.
“Concor has already received a letter from the Food Corporation of India to construct a silo at Ahmednagar in Punjab. In the case of Khathuwas and Vernama, we have submitted a proposal to FCI, whose team has visited the sites and submitted an internal report saying that they are feasible locations to construct silos. We are expecting FCI to give us a letter any day to go ahead with the silo construction,” he said.
Concor will invest about Rs150 crore to build and run the silos, with capacities ranging from 50,000 tonnes to 200,000 tonnes. Each of these silos will cost about Rs 48 crore to build from scratch, including the land costs.
The official said FCI was looking to dispense with gunny bags for carrying foodgrains over the next two years to reduce wastage of as much as 30 per cent during multiple handling. “So, FCI is looking at having silos in different locations,” he said.
Silo storage, a widely accepted global concept, was introduced in India a decade ago and is fast changing perceptions and fortunes of stakeholders across the value chain. Silo structures follow a scientific way of storing grains, with a mechanised system which enables bulk preservation of produce for longer periods.
Silo storage is expected to improve farmers’ savings and, more essentially, cut down working hours wasted in foodgrain storage through conventional methods.
According to the World Economic Forum, food production has never been the concern for India. India produced more than 270 million tonnes (mt) of food in 2016-17, higher than the annual requirement of 230 mt to feed its population.
CONCOR and CWC sign agreement for joint working group
Container Corporation of India Ltd.(CONCOR) and M/s. Central Warehousing Corporation Ltd.(CWC) have entered an agreement to form a Joint Working Group(JWG) to operate the CFS facility of M/s. CWC located at Pipavav Port for the mutual benefit and to promote and meet the growing needs of Exports, Imports and Domestic business situated in and around Pipavav Port as well as to fulfill the Multimodal Transport requirements of the country in general.
Shares of CONTAINER CORPORATION OF INDIA LTD. was last trading in BSE at Rs.656.5 as compared to the previous close of Rs. 658.2. The total number of shares traded during the day was 13747 in over 1129 trades.
The stock hit an intraday high of Rs. 664.15 and intraday low of 655.25. The net turnover during the day was Rs. 9069481.