Tanker delays stall Concor’s cement push, but freight diversification gains steam

Currently, only 9–10 per cent of loose cement moves by rail. “As soon as we start getting containers from both sources, the volume could match our existing domestic throughput,” Concor’s Chairman and Managing Director Sanjay Swarup said.

Container Corporation of India (Concor) is accelerating efforts to diversify into bulk cement, liquid chemicals and steel cargo, even as delays in receiving new cement tank containers dented domestic volume growth in the first quarter of FY26.

The State-run logistics major, and a Railway PSU, is counting on these new segments to lift its market share in a highly competitive rail–road freight market and offset muted trends in low-margin traffic.

The company has placed orders for 1,000 bulk cement tank containers, which include 500 from government-owned Braithwaite and 500 from Ahmedabad-based Basant Fabricator, to target India’s 70–80 million tonnes (mt) of loose cement market, which is still overwhelmingly road-transported.

Braithwaite delivered its first rake only on 30 June, months behind schedule, while the second rake is expected this month. Deliveries from the private supplier are scheduled to begin within three months.

“We are banking heavily on this product,” Chairman and Managing Director Sanjay Swarup told investors recently, citing “enormous demand” potential. Currently, only 9–10 per cent of loose cement moves by rail. “As soon as we start getting containers from both sources, the volume could match our existing domestic throughput,” he said.

Domestic throughput fell short in Q1, with the tanker delay compounded by management’s decision to avoid low-margin freight amid rising competition from private container train operators. Nevertheless, Concor has kept its 20 per cent domestic growth target for FY26, alongside 10 per cent growth in EXIM traffic.

Concor had been looking for cement-movement tie-ups with the likes of JK Cement, while last quarter the company had mentioned getting into tie-ups with with MyHome and UltraTech.

Capital expenditure in Q1 stood at ₹202.5 crore, in line with an unchanged full-year budget of ₹860 crore. Longer-term goals include 100 terminals, 500-plus rakes and over 70,000 containers by 2028.

“The outlook is very strong and positive,” Swarup said. “From Q3, you will see very good loading in bulk cement — and that’s just the beginning.”

Corporate tie-ups

A broader diversification strategy, would include, expanding into liquid cargo such as caustic soda and benzene.  

The company is engaging large corporates including JK Cement, Tata Group and SAIL for direct traffic commitments and deploying 1,000 new 40-foot open-top containers for steel products.

 “There is no dearth of demand,” he said. “We expect traffic to ramp up from mid-Q2, with a meaningful boost from Q3 once the monsoon ends and construction activity resumes.”

Rail Freight

Rail freight margins widened from 24.4 per cent to 27 per cent, supported by a 14 per cent fall in empty running costs and an 11 per cent increase in double-stacked rakes.

The December commissioning of the Western Dedicated Freight Corridor (WDFC) to JNPT is expected to drive a “quantum jump” in port rail traffic, with Concor prepared to run double-stack timetable trains from Dadri to JNPT.

The company — which already has four terminals on the corridor — is targeting a rise in India’s rail coefficient from the current 18–20 per cent to 35–40 per cent over time.

International Operations

International operations were stronger.

The EXIM volumes rose 12 per cent year-on-year, contributing to record total throughput of 1.29 million TEUs (twenty equivalent units), the highest ever for a first quarter.

Gains in market share at JNPT offset losses at Mundra, with overall EXIM share at 53.1 per cent.

Concor is also moving beyond Indian shores. It has signed an MoU with Dubai’s RHS Group to provide end-to-end logistics services to the UAE, including ocean transport and last-mile delivery, and plans to extend this model to Singapore and other markets.

Published on August 15, 2025