State-owned Container Corporation of India Ltd (Concor) is set to resume coastal shipping as part of its multi-modal logistics strategy, aiming to provide a cost-effective, faster, and environmentally friendly mode of transportation.
In June 2024, Concor and Shipping Corporation of India (SCI) signed a Memorandum of Understanding (MoU) to explore collaborative business opportunities. This partnership leverages both companies' infrastructure and expertise to offer seamless, cost-effective logistics services to customers through a single window.
Sanjay Swarup, CMD, Concor, emphasized the eco-friendly benefits of coastal shipping. Concor initially launched coastal shipping services in January 2019, establishing routes from Gujarat to the South. However, the service was suspended in 2020 due to the COVID-19 pandemic. Swarup announced that Concor, in collaboration with SCI, will soon restart coastal shipping operations from Gujarat to South India and further extend them to the eastern regions of the country.
The MoU will allow SCI's shipping services to expand Concor's reach into international markets and venture into coastal and inland waterways trade, providing a diverse range of customizable logistics solutions for the broader trade community.
Commodities identified for the coastal routes include waste paper, ceramic tiles, sanitary ware, soda, cotton bales, and consumer durables. Coastal shipping will also enhance Concor's focus on first- and last-mile connectivity, a key element of their logistics strategy.
Concor has also launched a logistics app to support these services. ?First mile, last mile (FMLM) has been a significant success. In the first quarter of FY25, we generated Rs 82 crore in revenue from FMLM services, reflecting a 35% year-on-year growth,? Swarup noted.
The company has set an ambitious growth target of 50% for FY25, driven by the nationwide launch of the app and ongoing customer education efforts. Swarup expressed confidence in achieving this target, further solidifying Concor's role in India's logistics sector.
(Businesstoday)
