DLI to vie with Concor for Chennai port cargo

Distribution Logistics Infrastructure (DLI) is set to end state-owned Concor’s dominance when it links Chennai Port and the inland container depot Marigold at Devangonthi, near Bengaluru, by operating a weekly train service from January 11.

The firm is currently moving export and import containers from Mundra Port, Jawaharlal Nehru Port Trust (JNPT) and Pipavav to Loni, Namli and Nagpur.

Concor has been operating rakes between Chennai Port and the Inland Container Depot in Whitefield, Bengaluru, and to Hyderabad. About one lakh twenty-foot equivalent units of containers were moved through rakes last year.

Exporters and importers welcomed the move as DLI is likely to announce its tariff on Monday, even as Concor has been levying congestion surcharge on this particular sector.

They said that the new service would give a boost to rail freight movement as it would take roughly eight hours to reach Bengaluru or Chennai. It would also save time and money.

Distribution Logistics Infrastructure to vie with Concor for Chennai port cargo

After losing most of its container volume to neighbouring ports due to congestion, Chennai Port officials had come out with a ‘Mission Resurge’ plan that included starting a new container service and laying full fledged railway sidings on the western yard.

“Recently, the Boston Consulting Group studied the Port’s potential and concluded that it can easily handle 2.5 lakh Twenty Foot Equivalent Unit (TEU) per year provided it has right type of infrastructure. DLI is starting with two services and then they would increase it gradually. The first train will leave with 45 containers,” said B. Vimal, Traffic Manager, Chennai Port Trust.

Source: http://transreporter.com/