Concor’s auto logistics JV to start operations by month-end

Conyk Cartrack, the auto-logistics joint venture between Container Corporation of India Ltd (Concor) and NYK Line of Japan, plans to launch its service on the Delhi-Chennai route by the end of this month.

“To start with, cars would be moved in around four to five special containers on Concor’s rake on the Delhi-Chennai route. This could be a service available on alternate days. This service should start by the end of this month or by early April,” said an official from Concor.

The Delhi-Chennai route will provide easy connectivity to the auto hubs in the country as well as consumption points in North and South India. Both these regions are major auto-manufacturing hubs.

Based on the response from clients, the company may deploy another rake on the west- south route. West India, specifically Gujarat, is being looked at as an emerging auto manufacturing hub. Tata Motors has an auto plant for its small car Nano in Gujarat.

Concor and Japanese shipping and auto logistics major NYK Line had formed Conyk last year. At present, the company is in talks with various auto companies for contracts to move its cars through rail.

As per the joint venture agreement, the cars would be moved on rakes owned by Concor.

Conyk would manage the end-to-end auto car movement and bring in the investment required for the specialised containers and other related infrastructure.

The 50-50 venture company has a total paid-up capital of around Rs3.5 crore. Company officials believe this would be enough for the planned operations at present.

Also, Concor JV can benefit from the  Indian Railways’ new Automobile Freight Train Operator (AFTO) scheme announced last year.

The scheme aimed at allowing bulk movement of automobile traffic by rail through development of automobile and ancillary hubs at strategic locations. However, it failed to attract a good response from the logistics players.

“There are certain issues due to which the logistics players have not been able to share the exact financials with the auto companies and hence not much has happened on that side,” said Sushil Kumar, advisor, Society of Indian Automobile Manufacturers. A few logistics companies had made a representation to SIAM for bulk auto movement through rail last year.

“The AFTO scheme would be very significant for Conyk as and when it materialises in future. The hitch is that given it would require a huge investment, there needs to be some amount of assurance from the auto companies in terms of volumes,” said the Concor official.