Container Corporation of India Ltd. (CONCOR) has taken a significant step towards expanding its logistics footprint by signing a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure Private Limited (BPIPL). The agreement, inked on September 4, 2025, in New Delhi, positions CONCOR as the operator and manager of the upcoming Container Terminal at the northside of Bhavnagar Port in Gujarat.

Strategic Expansion

The MoU marks CONCOR's strategic move into port operations, aligning with its vision of forward integration in the logistics sector. Under the terms of the agreement, CONCOR will serve as the Container Terminal Operator, taking on the responsibilities of operation, management, and marketing of the container terminal.

Port Infrastructure Development

BPIPL had previously executed an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the development of port infrastructure at Bhavnagar. The project involves:

• Allocation of 235 hectares of land to BPIPL on a 30-year lease
• Provision for future expansion by an additional 250 hectares

Regional Impact

The new port facility is expected to play a crucial role in enhancing logistics capabilities for:

• Central Gujarat
• The Dholera Industrial Belt
• Customers in the National Capital Region (NCR)

CONCOR's Competitive Edge

CONCOR brings to the table its extensive infrastructure, including:

• A pan-India network of terminals
• A large fleet of rolling stock

These assets position CONCOR to offer reliable, efficient, and cost-effective logistics services through the new container terminal.

Leadership Perspective

Sanjay Swarup, CMD of CONCOR, expressed optimism about the collaboration, stating that it is expected to provide substantial value addition to customers while further strengthening CONCOR's leadership in the logistics sector.

Looking Ahead

While the MoU sets the stage for this significant partnership, the detailed terms and conditions of the agreement are still being finalized. This development represents a notable expansion of CONCOR's operations into port management, potentially opening new avenues for growth and service enhancement in India's logistics landscape.

The strategic location of Bhavnagar Port and CONCOR's expertise in multi-modal logistics are poised to create synergies that could benefit a wide range of industries and customers across central Gujarat and beyond.

Container Corporation of India (CONCOR) has reported a strong performance in the first quarter, achieving an all-time high quarterly throughput and improved margins despite some challenges in the domestic segment.

Record Throughput and Dividend Declaration

CONCOR achieved a record quarterly throughput of 1.29 million TEUs, marking an 11.30% growth compared to the same period last year. The growth was driven by a 12.00% increase in EXIM (export-import) volumes and a 9.00% rise in domestic volumes. In light of this performance, the company's Board of Directors has approved a dividend of INR 1.60 per share, representing a 32.00% dividend on shares with a par value of INR 5.00.

Improved Margins and Financial Performance

The company reported significant improvements in its margins:

• Rail freight margin increased to 26.96% from 24.36% in the previous year
• Operating margin rose to 29.81% from 28.58%

CONCOR's financial results also showed positive trends:

• Operating income grew by 2.50%
• Profit After Tax (PAT) increased by 1.00%

Market Share Dynamics

CONCOR experienced mixed results in terms of market share across different ports:

• Gained 200 basis points at JNPT, reaching 58.39%
• Lost 200 basis points at Mundra, dropping to 36.00%
• Maintained a 49.00% market share at Pipavav

Operational Highlights

The company reported several operational improvements:

• Double stack rakes increased by 11.20% to 1,505 rakes
• Empty running costs decreased by 13.70%, positively impacting the bottom line
• Commissioned 5 high-speed rakes and procured 1,500 containers for domestic use

Challenges and Initiatives

While the domestic segment saw subdued performance due to factors such as delays in tank container supply from Braithwaite and conscious avoidance of low-margin traffic, CONCOR has initiated several measures to boost growth:

• Launched bulk cement transportation in tank containers
• Signed an MOU with RHS Group Dubai for end-to-end logistics services
• Focusing on tie-ups with major corporate houses for increased business

Future Outlook

Despite some challenges, CONCOR's management maintains a positive outlook:

• Volume growth guidance of 13.00% (10.00% for EXIM and 20.00% for domestic)
• Anticipating significant growth with the commissioning of WDFC connection to JNPT by December 2025
• Expecting improved performance in the domestic segment from Q2 onwards

CONCOR's Chairman and Managing Director, Sanjay Swarup, expressed confidence in the company's future performance, citing strong demand in both EXIM and domestic segments and ongoing initiatives to enhance service offerings and operational efficiency.