"CONCOR Partners with Private Firms to Establish CFS at Kathuwas MMLP"

Major global container lines like MSC, Maersk, and CMA CGM, along with terminal giants PSA International and DP World, are vying for a tender floated by the state-run Container Corporation of India Ltd (CONCOR). The tender aims to establish three container freight stations (CFS) in collaboration with private firms at the dedicated freight corridor-linked multi-modal logistics park (MMLP) in Kathuwas, Rajasthan.

The Kathuwas MMLP is pivotal for CONCOR, serving as its largest inland container depot (ICD) in the northern region, capable of handling up to one million twenty-foot equivalent units (TEUs) annually. To boost volumes and enhance competitiveness in the northern region, CONCOR is replicating the joint venture (JV) model successfully implemented at its Dadri ICD facility.

Despite facing challenges such as reduced volumes and heightened competition from private players in the northern region, the Kathuwas MMLP holds strategic importance. Spread across 283 acres, the facility is being monetized by CONCOR to bolster volumes by partnering with container lines and port terminal operators.

Each of the three planned CFSs at Kathuwas MMLP will span 10-12 acres, with the JV agreement set for an initial period of 30 years, extendable by mutual consent. The Customs Department mandates a minimum land requirement of 2 hectares for developing a CFS.

The initial project cost is estimated at Rs 21 crores, with funding arranged through a combination of equity and debt. CONCOR intends to invest up to Rs 5 crores in equity for each JV.

The MMLP at Kathuwas serves a region with significant industrial activity, including areas like Gurgaon, Manesar, Rewari, and Alwar. It is connected to Rewari through a 3-lane road, facilitating seamless transportation.

As the Kathuwas MMLP continues to play a vital role in India's logistics landscape, the establishment of CFSs through strategic partnerships is poised to further enhance its capabilities and contribute to the region's economic growth.

ET