Given that JNPT is India’s biggest container port and where Concor commands a lion’s share in container rail traffic, these volume trends augur well for the company. Sandeep Mathew, an analyst at SBICAP Securities Ltd, says exim (export-import) container rail volumes of Concor “should closely mirror (if not exceed) market growth”. To be sure, one needs a breakup of rail and road volume growth from JNPT to arrive at a firm conclusion on whether volume recovery at JNPT will have a commensurate impact on Concor’s volumes and earnings. Further, given the recent subdued trends in exports, one cannot be sure if the container traffic portends healthy earnings growth for Concor. If rail container freight is not viable, then freight forwarders also tend to dismantle and de-stuff the cargo at ports and transport it by road.

Source: Mint August 21, 2017 02:15 UTC