Declining Exim traffic, lower trade growth highlight risks for Concor

Container rail traffic is also losing market share to road segment

The 40-month low print of Exim trade for August led by a fall in imports and lower railways container volume growth are negative for Container Corporation of India (Concor), India’s largest transporter of containerised cargo through the rail route. While container volume growth was robust in August, it was led by port container volumes and not rail container transport indicating that trucks gained market share. With pressure on profitability of fleet operators, pricing could remain competitive going ahead for container operators.

Further, analysts at Edelweiss Securities believe that with August container rail volumes falling by 3 per cent year-on-year it